SF 1456

CCR-SF1456 - 90th Legislature (2017 - 2018)

Posted on 05/22/2017 06:10 a.m.

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1456 1.2A bill for an act 1.3relating to economic development; temporarily modifying the restrictions on use 1.4of Minnesota investment fund local government loan repayment funds. 1.5May 22, 2017 1.6The Honorable Michelle L. Fischbach 1.7President of the Senate 1.8The Honorable Kurt L. Daudt 1.9Speaker of the House of Representatives 1.10We, the undersigned conferees for S.F. No. 1456 report that we have agreed upon the 1.11items in dispute and recommend as follows: 1.12That the House recede from its amendment and that S.F. No. 1456 be further amended 1.13as follows: 1.14Delete everything after the enacting clause and insert: 1.15"ARTICLE 1 1.16APPROPRIATIONS 1.17 Section 1. new text begin JOBS AND ECONOMIC DEVELOPMENT. new text end 1.18     new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the new text end 1.19 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 1.20 new text begin general fund, or another named fund, and are available for the fiscal years indicated for new text end 1.21 new text begin each purpose. The figures "2018" and "2019" used in this article mean that the appropriations new text end 1.22 new text begin listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019, new text end 1.23 new text begin respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The new text end 1.24 new text begin biennium" is fiscal years 2018 and 2019. new text end 1.25     new text begin (b) If an appropriation in this article is enacted more than once in the 2017 legislative new text end 1.26 new text begin session, the appropriation must be given effect only once. new text end 2.1 new text begin APPROPRIATIONS new text end 2.2 new text begin Available for the Year new text end 2.3 new text begin Ending June 30 new text end 2.4 new text begin 2018 new text end new text begin 2019 new text end 2.5 2.6 Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT new text end new text begin AND ECONOMIC DEVELOPMENT new text end 2.7 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 145,400,000 new text end new text begin $ new text end new text begin 119,478,000 new text end 2.8 new text begin Appropriations by Fund new text end 2.9 new text begin 2018 new text end new text begin 2019 new text end 2.10 new text begin General new text end new text begin $109,565,000 new text end new text begin $84,747,000 new text end 2.11 new text begin Remediation new text end new text begin $700,000 new text end new text begin $700,000 new text end 2.12 2.13 new text begin Workforce new text end new text begin Development new text end new text begin $34,985,000 new text end new text begin $34,031,000 new text end 2.14 new text begin Special Revenue new text end new text begin $150,000 new text end new text begin -0- new text end 2.15 new text begin The amounts that may be spent for each new text end 2.16 new text begin purpose are specified in the following new text end 2.17 new text begin subdivisions. new text end 2.18 new text begin Subd. 2. new text end new text begin Business and Community Development new text end new text begin $ new text end new text begin 46,074,000 new text end new text begin $ new text end new text begin 40,935,000 new text end 2.19 new text begin Appropriations by Fund new text end 2.20 new text begin General new text end new text begin $43,363,000 new text end new text begin $38,424,000 new text end 2.21 new text begin Remediation new text end new text begin $700,000 new text end new text begin $700,000 new text end 2.22 2.23 new text begin Workforce new text end new text begin Development new text end new text begin $1,861,000 new text end new text begin $1,811,000 new text end 2.24 new text begin Special Revenue new text end new text begin $150,000 new text end new text begin -0- new text end 2.25 new text begin (a) $4,195,000 each year is for the Minnesota new text end 2.26 new text begin job skills partnership program under new text end 2.27 new text begin Minnesota Statutes, sections 116L.01 to new text end 2.28 new text begin 116L.17. If the appropriation for either year new text end 2.29 new text begin is insufficient, the appropriation for the other new text end 2.30 new text begin year is available. This appropriation is new text end 2.31 new text begin available until spent. new text end 2.32 new text begin (b) $750,000 each year is for grants to the new text end 2.33 new text begin Neighborhood Development Center for small new text end 2.34 new text begin business programs: new text end 2.35 new text begin (1) training, lending, and business services; new text end 3.1 new text begin (2) model outreach and training in greater new text end 3.2 new text begin Minnesota; and new text end 3.3 new text begin (3) development of new business incubators. new text end 3.4 new text begin This is a onetime appropriation. new text end 3.5 new text begin (c) $1,175,000 each year is for a grant to the new text end 3.6 new text begin Metropolitan Economic Development new text end 3.7 new text begin Association (MEDA) for statewide business new text end 3.8 new text begin development and assistance services, including new text end 3.9 new text begin services to entrepreneurs with businesses that new text end 3.10 new text begin have the potential to create job opportunities new text end 3.11 new text begin for unemployed and underemployed people, new text end 3.12 new text begin with an emphasis on minority-owned new text end 3.13 new text begin businesses. This is a onetime appropriation. new text end 3.14 new text begin (d) $125,000 each year is for a grant to the new text end 3.15 new text begin White Earth Nation for the White Earth Nation new text end 3.16 new text begin Integrated Business Development System to new text end 3.17 new text begin provide business assistance with workforce new text end 3.18 new text begin development, outreach, technical assistance, new text end 3.19 new text begin infrastructure and operational support, new text end 3.20 new text begin financing, and other business development new text end 3.21 new text begin activities. This is a onetime appropriation. new text end 3.22 new text begin (e)(1) $12,500,000 each year is for the new text end 3.23 new text begin Minnesota investment fund under Minnesota new text end 3.24 new text begin Statutes, section 116J.8731. Of this amount, new text end 3.25 new text begin the commissioner of employment and new text end 3.26 new text begin economic development may use up to three new text end 3.27 new text begin percent for administration and monitoring of new text end 3.28 new text begin the program. This appropriation is available new text end 3.29 new text begin until spent. new text end 3.30 new text begin (2) Of the amount appropriated in fiscal year new text end 3.31 new text begin 2018, $4,000,000 is for a loan to construct and new text end 3.32 new text begin equip a wholesale electronic component new text end 3.33 new text begin distribution center investing a minimum of new text end 3.34 new text begin $200,000,000 and constructing a facility at new text end 4.1 new text begin least 700,000 square feet in size. Loan funds new text end 4.2 new text begin may be used for purchases of materials, new text end 4.3 new text begin supplies, and equipment for the construction new text end 4.4 new text begin of the facility and are available from July 1, new text end 4.5 new text begin 2017, to June 30, 2021. The commissioner of new text end 4.6 new text begin employment and economic development shall new text end 4.7 new text begin forgive the loan after verification that the new text end 4.8 new text begin project has satisfied performance goals and new text end 4.9 new text begin contractual obligations as required under new text end 4.10 new text begin Minnesota Statutes, section 116J.8731. new text end 4.11 new text begin (3) Of the amount appropriated in fiscal year new text end 4.12 new text begin 2018, $700,000 is for a loan to extend an new text end 4.13 new text begin effluent pipe that will deliver reclaimed water new text end 4.14 new text begin to an innovative waste-to-biofuel project new text end 4.15 new text begin investing a minimum of $150,000,000 and new text end 4.16 new text begin constructing a facility that is designed to new text end 4.17 new text begin process approximately 400,000 tons of waste new text end 4.18 new text begin annually. Loan funds are available until June new text end 4.19 new text begin 30, 2021. new text end 4.20 new text begin (f) $8,500,000 each year is for the Minnesota new text end 4.21 new text begin job creation fund under Minnesota Statutes, new text end 4.22 new text begin section 116J.8748. Of this amount, the new text end 4.23 new text begin commissioner of employment and economic new text end 4.24 new text begin development may use up to three percent for new text end 4.25 new text begin administrative expenses. This appropriation new text end 4.26 new text begin is available until expended. In fiscal year 2020 new text end 4.27 new text begin and beyond, the base amount is $8,000,000. new text end 4.28 new text begin (g) $1,647,000 each year is for contaminated new text end 4.29 new text begin site cleanup and development grants under new text end 4.30 new text begin Minnesota Statutes, sections 116J.551 to new text end 4.31 new text begin 116J.558. This appropriation is available until new text end 4.32 new text begin spent. In fiscal year 2020 and beyond, the base new text end 4.33 new text begin amount is $1,772,000. new text end 4.34 new text begin (h) $12,000 each year is for a grant to the new text end 4.35 new text begin Upper Minnesota Film Office. new text end 5.1 new text begin (i) $163,000 each year is for the Minnesota new text end 5.2 new text begin Film and TV Board. The appropriation in each new text end 5.3 new text begin year is available only upon receipt by the new text end 5.4 new text begin board of $1 in matching contributions of new text end 5.5 new text begin money or in-kind contributions from nonstate new text end 5.6 new text begin sources for every $3 provided by this new text end 5.7 new text begin appropriation, except that each year up to new text end 5.8 new text begin $50,000 is available on July 1 even if the new text end 5.9 new text begin required matching contribution has not been new text end 5.10 new text begin received by that date. new text end 5.11 new text begin (j) $500,000 each year is from the general fund new text end 5.12 new text begin for a grant to the Minnesota Film and TV new text end 5.13 new text begin Board for the film production jobs program new text end 5.14 new text begin under Minnesota Statutes, section 116U.26. new text end 5.15 new text begin This appropriation is available until June 30, new text end 5.16 new text begin 2021. new text end 5.17 new text begin (k) $139,000 each year is for a grant to the new text end 5.18 new text begin Rural Policy and Development Center under new text end 5.19 new text begin Minnesota Statutes, section 116J.421. new text end 5.20 new text begin (l)(1) $1,300,000 each year is for the greater new text end 5.21 new text begin Minnesota business development public new text end 5.22 new text begin infrastructure grant program under Minnesota new text end 5.23 new text begin Statutes, section 116J.431. This appropriation new text end 5.24 new text begin is available until spent. If the appropriation new text end 5.25 new text begin for either year is insufficient, the appropriation new text end 5.26 new text begin for the other year is available. In fiscal year new text end 5.27 new text begin 2020 and beyond, the base amount is new text end 5.28 new text begin $1,787,000. Funds available under this new text end 5.29 new text begin paragraph may be used for site preparation of new text end 5.30 new text begin property owned and to be used by private new text end 5.31 new text begin entities. new text end 5.32 new text begin (2) Of the amounts appropriated, $1,600,000 new text end 5.33 new text begin in fiscal year 2018 is for a grant to the city of new text end 5.34 new text begin Thief River Falls to support utility extensions, new text end 5.35 new text begin roads, and other public improvements related new text end 6.1 new text begin to the construction of a wholesale electronic new text end 6.2 new text begin component distribution center at least 700,000 new text end 6.3 new text begin square feet in size and investing a minimum new text end 6.4 new text begin of $200,000,000. Notwithstanding Minnesota new text end 6.5 new text begin Statutes, section 116J.431, a local match is new text end 6.6 new text begin not required. Grant funds are available from new text end 6.7 new text begin July 1, 2017, to June 30, 2021. new text end 6.8 new text begin (m) $876,000 the first year and $500,000 the new text end 6.9 new text begin second year are for the Minnesota emerging new text end 6.10 new text begin entrepreneur loan program under Minnesota new text end 6.11 new text begin Statutes, section 116M.18. Funds available new text end 6.12 new text begin under this paragraph are for transfer into the new text end 6.13 new text begin emerging entrepreneur program special new text end 6.14 new text begin revenue fund account created under Minnesota new text end 6.15 new text begin Statutes, chapter 116M, and are available until new text end 6.16 new text begin spent. Of this amount, up to four percent is for new text end 6.17 new text begin administration and monitoring of the program. new text end 6.18 new text begin In fiscal year 2020 and beyond, the base new text end 6.19 new text begin amount is $1,000,000. new text end 6.20 new text begin (n) $875,000 each year is for a grant to new text end 6.21 new text begin Enterprise Minnesota, Inc. for the small new text end 6.22 new text begin business growth acceleration program under new text end 6.23 new text begin Minnesota Statutes, section 116O.115. This new text end 6.24 new text begin is a onetime appropriation. new text end 6.25 new text begin (o) $250,000 in fiscal year 2018 is for a grant new text end 6.26 new text begin to the Minnesota Design Center at the new text end 6.27 new text begin University of Minnesota for the greater new text end 6.28 new text begin Minnesota community design pilot project. new text end 6.29 new text begin (p) $275,000 in fiscal year 2018 is from the new text end 6.30 new text begin general fund to the commissioner of new text end 6.31 new text begin employment and economic development for new text end 6.32 new text begin a grant to Community and Economic new text end 6.33 new text begin Development Associates (CEDA) for an new text end 6.34 new text begin economic development study and analysis of new text end 6.35 new text begin the effects of current and projected economic new text end 7.1 new text begin growth in southeast Minnesota. CEDA shall new text end 7.2 new text begin report on the findings and recommendations new text end 7.3 new text begin of the study to the committees of the house of new text end 7.4 new text begin representatives and senate with jurisdiction new text end 7.5 new text begin over economic development and workforce new text end 7.6 new text begin issues by February 15, 2019. All results and new text end 7.7 new text begin information gathered from the study shall be new text end 7.8 new text begin made available for use by cities in southeast new text end 7.9 new text begin Minnesota by March 15, 2019. This new text end 7.10 new text begin appropriation is available until June 30, 2020. new text end 7.11 new text begin (q) $2,000,000 in fiscal year 2018 is for a new text end 7.12 new text begin grant to Pillsbury United Communities for new text end 7.13 new text begin construction and renovation of a building in new text end 7.14 new text begin north Minneapolis for use as the "North new text end 7.15 new text begin Market" grocery store and wellness center, new text end 7.16 new text begin focused on offering healthy food, increasing new text end 7.17 new text begin health care access, and providing job creation new text end 7.18 new text begin and economic opportunities in one place for new text end 7.19 new text begin children and families living in the area. To the new text end 7.20 new text begin extent possible, Pillsbury United Communities new text end 7.21 new text begin shall employ individuals who reside within a new text end 7.22 new text begin five mile radius of the grocery store and new text end 7.23 new text begin wellness center. This appropriation is not new text end 7.24 new text begin available until at least an equal amount of new text end 7.25 new text begin money is committed from nonstate sources. new text end 7.26 new text begin This appropriation is available until the project new text end 7.27 new text begin is completed or abandoned, subject to new text end 7.28 new text begin Minnesota Statutes, section 16A.642. new text end 7.29 new text begin (r) $1,425,000 each year is for the business new text end 7.30 new text begin development competitive grant program. Of new text end 7.31 new text begin this amount, up to five percent is for new text end 7.32 new text begin administration and monitoring of the business new text end 7.33 new text begin development competitive grant program. All new text end 7.34 new text begin grant awards shall be for two consecutive new text end 7.35 new text begin years. Grants shall be awarded in the first year. new text end 8.1 new text begin (s) $875,000 each year is for the host new text end 8.2 new text begin community economic development grant new text end 8.3 new text begin program established in Minnesota Statutes, new text end 8.4 new text begin section 116J.548. new text end 8.5 new text begin (t) $700,000 each year is from the remediation new text end 8.6 new text begin fund for contaminated site cleanup and new text end 8.7 new text begin development grants under Minnesota Statutes, new text end 8.8 new text begin sections 116J.551 to 116J.558. This new text end 8.9 new text begin appropriation is available until spent. new text end 8.10 new text begin (u) $161,000 each year is from the workforce new text end 8.11 new text begin development fund for a grant to the Rural new text end 8.12 new text begin Policy and Development Center. This is a new text end 8.13 new text begin onetime appropriation. new text end 8.14 new text begin (v) $300,000 each year is from the workforce new text end 8.15 new text begin development fund for a grant to Enterprise new text end 8.16 new text begin Minnesota, Inc. This is a onetime new text end 8.17 new text begin appropriation. new text end 8.18 new text begin (w) $50,000 in fiscal year 2018 is from the new text end 8.19 new text begin workforce development fund for a grant to new text end 8.20 new text begin Fighting Chance for behavioral intervention new text end 8.21 new text begin programs for at-risk youth. new text end 8.22 new text begin (x) $1,350,000 each year is from the new text end 8.23 new text begin workforce development fund for job training new text end 8.24 new text begin grants under Minnesota Statutes, section new text end 8.25 new text begin 116L.42. new text end 8.26 new text begin (y)(1) $519,000 in fiscal year 2018 is for new text end 8.27 new text begin grants to local communities to increase the new text end 8.28 new text begin supply of quality child care providers in order new text end 8.29 new text begin to support economic development. At least 60 new text end 8.30 new text begin percent of grant funds must go to communities new text end 8.31 new text begin located outside of the seven-county new text end 8.32 new text begin metropolitan area, as defined under Minnesota new text end 8.33 new text begin Statutes, section 473.121, subdivision 2. Grant new text end 8.34 new text begin recipients must obtain a 50 percent nonstate new text end 9.1 new text begin match to grant funds in either cash or in-kind new text end 9.2 new text begin contributions. Grant funds available under this new text end 9.3 new text begin paragraph must be used to implement solutions new text end 9.4 new text begin to reduce the child care shortage in the state new text end 9.5 new text begin including but not limited to funding for child new text end 9.6 new text begin care business start-ups or expansions, training, new text end 9.7 new text begin facility modifications or improvements new text end 9.8 new text begin required for licensing, and assistance with new text end 9.9 new text begin licensing and other regulatory requirements. new text end 9.10 new text begin In awarding grants, the commissioner must new text end 9.11 new text begin give priority to communities that have new text end 9.12 new text begin documented a shortage of child care providers new text end 9.13 new text begin in the area. new text end 9.14 new text begin (2) Within one year of receiving grant funds, new text end 9.15 new text begin grant recipients must report to the new text end 9.16 new text begin commissioner on the outcomes of the grant new text end 9.17 new text begin program including but not limited to the new text end 9.18 new text begin number of new providers, the number of new text end 9.19 new text begin additional child care provider jobs created, the new text end 9.20 new text begin number of additional child care slots, and the new text end 9.21 new text begin amount of local funds invested. new text end 9.22 new text begin (3) By January 1 of each year, starting in 2019, new text end 9.23 new text begin the commissioner must report to the standing new text end 9.24 new text begin committees of the legislature having new text end 9.25 new text begin jurisdiction over child care and economic new text end 9.26 new text begin development on the outcomes of the program new text end 9.27 new text begin to date. new text end 9.28 new text begin (z) $319,000 in fiscal year 2018 is from the new text end 9.29 new text begin general fund for a grant to the East Phillips new text end 9.30 new text begin Improvement Coalition to create the East new text end 9.31 new text begin Phillips Neighborhood Institute (EPNI) to new text end 9.32 new text begin expand culturally tailored resources that new text end 9.33 new text begin address small business growth and create new text end 9.34 new text begin green jobs. The grant shall fund the new text end 9.35 new text begin collaborative work of Tamales y Bicicletas, new text end 10.1 new text begin Little Earth of the United Tribes, a nonprofit new text end 10.2 new text begin serving East Africans, and other coalition new text end 10.3 new text begin members towards developing EPNI as a new text end 10.4 new text begin community space to host activities including, new text end 10.5 new text begin but not limited to, creation and expansion of new text end 10.6 new text begin small businesses, culturally specific new text end 10.7 new text begin entrepreneurial activities, indoor urban new text end 10.8 new text begin farming, job training, education, and skills new text end 10.9 new text begin development for residents of this low-income, new text end 10.10 new text begin environmental justice designated new text end 10.11 new text begin neighborhood. Eligible uses for grant funds new text end 10.12 new text begin include, but are not limited to, planning and new text end 10.13 new text begin start-up costs, staff and consultant costs, new text end 10.14 new text begin building improvements, rent, supplies, utilities, new text end 10.15 new text begin vehicles, marketing, and program activities. new text end 10.16 new text begin The commissioner shall submit a report on new text end 10.17 new text begin grant activities and quantifiable outcomes to new text end 10.18 new text begin the committees of the house of representatives new text end 10.19 new text begin and the senate with jurisdiction over economic new text end 10.20 new text begin development by December 15, 2020. This new text end 10.21 new text begin appropriation is available until June 30, 2020. new text end 10.22 new text begin (aa) $150,000 the first year is from the new text end 10.23 new text begin renewable development account in the special new text end 10.24 new text begin revenue fund established in Minnesota new text end 10.25 new text begin Statutes, section 116C.779, subdivision 1, to new text end 10.26 new text begin conduct the biomass facility closure economic new text end 10.27 new text begin impact study. new text end 10.28 new text begin (bb)(1)$300,000 in fiscal year 2018 is for a new text end 10.29 new text begin grant to East Side Enterprise Center (ESEC) new text end 10.30 new text begin to expand culturally tailored resources that new text end 10.31 new text begin address small business growth and job new text end 10.32 new text begin creation. This appropriation is available until new text end 10.33 new text begin June 30, 2020. The appropriation shall fund new text end 10.34 new text begin the work of African Economic Development new text end 10.35 new text begin Solutions, the Asian Economic Development new text end 11.1 new text begin Association, the Dayton's Bluff Community new text end 11.2 new text begin Council, and the Latino Economic new text end 11.3 new text begin Development Center in a collaborative new text end 11.4 new text begin approach to economic development that is new text end 11.5 new text begin effective with smaller, culturally diverse new text end 11.6 new text begin communities that seek to increase the new text end 11.7 new text begin productivity and success of new immigrant new text end 11.8 new text begin and minority populations living and working new text end 11.9 new text begin in the community. Programs shall provide new text end 11.10 new text begin minority business growth and capacity new text end 11.11 new text begin building that generate wealth and jobs creation new text end 11.12 new text begin for local residents and business owners on the new text end 11.13 new text begin East Side of St. Paul. new text end 11.14 new text begin (2) In fiscal year 2019 ESEC shall use funds new text end 11.15 new text begin to share its integrated service model and new text end 11.16 new text begin evolving collaboration principles with civic new text end 11.17 new text begin and economic development leaders in greater new text end 11.18 new text begin Minnesota communities which have diverse new text end 11.19 new text begin populations similar to the East Side of St. Paul. new text end 11.20 new text begin ESEC shall submit a report of activities and new text end 11.21 new text begin program outcomes, including quantifiable new text end 11.22 new text begin measures of success annually to the house of new text end 11.23 new text begin representatives and senate committees with new text end 11.24 new text begin jurisdiction over economic development. new text end 11.25 new text begin (cc) $150,000 in fiscal year 2018 is for a grant new text end 11.26 new text begin to Mille Lacs County for the purpose of new text end 11.27 new text begin reimbursement grants to small resort new text end 11.28 new text begin businesses located in the city of Isle with less new text end 11.29 new text begin than $350,000 in annual revenue, at least four new text end 11.30 new text begin rental units, which are open during both new text end 11.31 new text begin summer and winter months, and whose new text end 11.32 new text begin business was adversely impacted by a decline new text end 11.33 new text begin in walleye fishing on Lake Mille Lacs. new text end new text begin new text end 11.34 new text begin (dd)(1) $250,000 in fiscal year 2018 is for a new text end 11.35 new text begin grant to the Small Business Development new text end 12.1 new text begin Center hosted at Minnesota State University, new text end 12.2 new text begin Mankato, for a collaborative initiative with new text end 12.3 new text begin the Regional Center for Entrepreneurial new text end 12.4 new text begin Facilitation. Funds available under this section new text end 12.5 new text begin must be used to provide entrepreneur and new text end 12.6 new text begin small business development direct professional new text end 12.7 new text begin business assistance services in the following new text end 12.8 new text begin counties in Minnesota: Blue Earth, Brown, new text end 12.9 new text begin Faribault, Le Sueur, Martin, Nicollet, Sibley, new text end 12.10 new text begin Watonwan, and Waseca. For the purposes of new text end 12.11 new text begin this section, "direct professional business new text end 12.12 new text begin assistance services" must include, but is not new text end 12.13 new text begin limited to, pre-venture assistance for new text end 12.14 new text begin individuals considering starting a business. new text end 12.15 new text begin This appropriation is not available until the new text end 12.16 new text begin commissioner determines that an equal amount new text end 12.17 new text begin is committed from nonstate sources. Any new text end 12.18 new text begin balance in the first year does not cancel and new text end 12.19 new text begin is available for expenditure in the second year. new text end 12.20 new text begin (2) Grant recipients shall report to the new text end 12.21 new text begin commissioner by February 1 of each year and new text end 12.22 new text begin include information on the number of new text end 12.23 new text begin customers served in each county; the number new text end 12.24 new text begin of businesses started, stabilized, or expanded; new text end 12.25 new text begin the number of jobs created and retained; and new text end 12.26 new text begin business success rates in each county. By April new text end 12.27 new text begin 1 of each year, the commissioner shall report new text end 12.28 new text begin the information submitted by grant recipients new text end 12.29 new text begin to the chairs of the standing committees of the new text end 12.30 new text begin house of representatives and the senate having new text end 12.31 new text begin jurisdiction over economic development new text end 12.32 new text begin issues. new text end 12.33 new text begin (ee) $500,000 in fiscal year 2018 is for the new text end 12.34 new text begin central Minnesota opportunity grant program new text end 12.35 new text begin established under Minnesota Statutes, section new text end 13.1 new text begin 116J.9922. This appropriation is available until new text end 13.2 new text begin June 30, 2022. new text end 13.3 new text begin Subd. 3. new text end new text begin Workforce Development new text end new text begin $ new text end new text begin 31,498,000 new text end new text begin $ new text end new text begin 30,231,000 new text end 13.4 new text begin Appropriations by Fund new text end 13.5 new text begin General new text end new text begin $6,239,000 new text end new text begin $5,889,000 new text end 13.6 13.7 new text begin Workforce new text end new text begin Development new text end new text begin $25,259,000 new text end new text begin $24,342,000 new text end 13.8 new text begin (a) $500,000 each year is for the new text end 13.9 new text begin youth-at-work competitive grant program new text end 13.10 new text begin under Minnesota Statutes, section 116L.562. new text end 13.11 new text begin Of this amount, up to five percent is for new text end 13.12 new text begin administration and monitoring of the youth new text end 13.13 new text begin workforce development competitive grant new text end 13.14 new text begin program. All grant awards shall be for two new text end 13.15 new text begin consecutive years. Grants shall be awarded in new text end 13.16 new text begin the first year. In fiscal year 2020 and beyond, new text end 13.17 new text begin the base amount is $750,000. new text end 13.18 new text begin (b) $250,000 each year is for pilot programs new text end 13.19 new text begin in the workforce service areas to combine new text end 13.20 new text begin career and higher education advising. new text end 13.21 new text begin (c) $500,000 each year is for rural career new text end 13.22 new text begin counseling coordinator positions in the new text end 13.23 new text begin workforce service areas and for the purposes new text end 13.24 new text begin specified in Minnesota Statutes, section new text end 13.25 new text begin 116L.667. The commissioner of employment new text end 13.26 new text begin and economic development, in consultation new text end 13.27 new text begin with local workforce investment boards and new text end 13.28 new text begin local elected officials in each of the service new text end 13.29 new text begin areas receiving funds, shall develop a method new text end 13.30 new text begin of distributing funds to provide equitable new text end 13.31 new text begin services across workforce service areas. new text end 13.32 new text begin (d) $1,000,000 each year is for a grant to the new text end 13.33 new text begin Construction Careers Foundation for the new text end 13.34 new text begin construction career pathway initiative to new text end 13.35 new text begin provide year-round educational and new text end 14.1 new text begin experiential learning opportunities for teens new text end 14.2 new text begin and young adults under the age of 21 that lead new text end 14.3 new text begin to careers in the construction industry. This is new text end 14.4 new text begin a onetime appropriation. Grant funds must be new text end 14.5 new text begin used to: new text end 14.6 new text begin (1) increase construction industry exposure new text end 14.7 new text begin activities for middle school and high school new text end 14.8 new text begin youth, parents, and counselors to reach a more new text end 14.9 new text begin diverse demographic and broader statewide new text end 14.10 new text begin audience. This requirement includes, but is new text end 14.11 new text begin not limited to, an expansion of programs to new text end 14.12 new text begin provide experience in different crafts to youth new text end 14.13 new text begin and young adults throughout the state; new text end 14.14 new text begin (2) increase the number of high schools in new text end 14.15 new text begin Minnesota offering construction classes during new text end 14.16 new text begin the academic year that utilize a multicraft new text end 14.17 new text begin curriculum; new text end 14.18 new text begin (3) increase the number of summer internship new text end 14.19 new text begin opportunities; new text end 14.20 new text begin (4) enhance activities to support graduating new text end 14.21 new text begin seniors in their efforts to obtain employment new text end 14.22 new text begin in the construction industry; new text end 14.23 new text begin (5) increase the number of young adults new text end 14.24 new text begin employed in the construction industry and new text end 14.25 new text begin ensure that they reflect Minnesota's diverse new text end 14.26 new text begin workforce; and new text end 14.27 new text begin (6) enhance an industrywide marketing new text end 14.28 new text begin campaign targeted to youth and young adults new text end 14.29 new text begin about the depth and breadth of careers within new text end 14.30 new text begin the construction industry. new text end 14.31 new text begin Programs and services supported by grant new text end 14.32 new text begin funds must give priority to individuals and new text end 14.33 new text begin groups that are economically disadvantaged new text end 14.34 new text begin or historically underrepresented in the new text end 15.1 new text begin construction industry, including but not limited new text end 15.2 new text begin to women, veterans, and members of minority new text end 15.3 new text begin and immigrant groups. new text end 15.4 new text begin (e) $1,539,000 each year from the general fund new text end 15.5 new text begin and $4,604,000 each year from the workforce new text end 15.6 new text begin development fund are for the Pathways to new text end 15.7 new text begin Prosperity adult workforce development new text end 15.8 new text begin competitive grant program. Of this amount, new text end 15.9 new text begin up to four percent is for administration and new text end 15.10 new text begin monitoring of the program. When awarding new text end 15.11 new text begin grants under this paragraph, the commissioner new text end 15.12 new text begin of employment and economic development new text end 15.13 new text begin may give preference to any previous grantee new text end 15.14 new text begin with demonstrated success in job training and new text end 15.15 new text begin placement for hard-to-train individuals. In new text end 15.16 new text begin fiscal year 2020 and beyond, the general fund new text end 15.17 new text begin base amount for this program is $4,039,000. new text end 15.18 new text begin (f) $750,000 each year is for a competitive new text end 15.19 new text begin grant program to provide grants to new text end 15.20 new text begin organizations that provide support services for new text end 15.21 new text begin individuals, such as job training, employment new text end 15.22 new text begin preparation, internships, job assistance to new text end 15.23 new text begin fathers, financial literacy, academic and new text end 15.24 new text begin behavioral interventions for low-performing new text end 15.25 new text begin students, and youth intervention. Grants made new text end 15.26 new text begin under this section must focus on low-income new text end 15.27 new text begin communities, young adults from families with new text end 15.28 new text begin a history of intergenerational poverty, and new text end 15.29 new text begin communities of color. Of this amount, up to new text end 15.30 new text begin four percent is for administration and new text end 15.31 new text begin monitoring of the program. In fiscal year 2020 new text end 15.32 new text begin and beyond, the base amount is $1,000,000. new text end 15.33 new text begin (g) $500,000 each year is for the women and new text end 15.34 new text begin high-wage, high-demand, nontraditional jobs new text end 15.35 new text begin grant program under Minnesota Statutes, new text end 16.1 new text begin section 116L.99. Of this amount, up to five new text end 16.2 new text begin percent is for administration and monitoring new text end 16.3 new text begin of the program. In fiscal year 2020 and new text end 16.4 new text begin beyond, the base amount is $750,000. new text end 16.5 new text begin (h) $500,000 each year is for a competitive new text end 16.6 new text begin grant program for grants to organizations new text end 16.7 new text begin providing services to relieve economic new text end 16.8 new text begin disparities in the Southeast Asian community new text end 16.9 new text begin through workforce recruitment, development, new text end 16.10 new text begin job creation, assistance of smaller new text end 16.11 new text begin organizations to increase capacity, and new text end 16.12 new text begin outreach. Of this amount, up to five percent new text end 16.13 new text begin is for administration and monitoring of the new text end 16.14 new text begin program. In fiscal year 2020 and beyond, the new text end 16.15 new text begin base amount is $1,000,000. new text end 16.16 new text begin (i) $250,000 each year is for a grant to the new text end 16.17 new text begin American Indian Opportunities and new text end 16.18 new text begin Industrialization Center, in collaboration with new text end 16.19 new text begin the Northwest Indian Community new text end 16.20 new text begin Development Center, to reduce academic new text end 16.21 new text begin disparities for American Indian students and new text end 16.22 new text begin adults. This is a onetime appropriation. The new text end 16.23 new text begin grant funds may be used to provide: new text end 16.24 new text begin (1) student tutoring and testing support new text end 16.25 new text begin services; new text end 16.26 new text begin (2) training in information technology; new text end 16.27 new text begin (3) assistance in obtaining a GED; new text end 16.28 new text begin (4) remedial training leading to enrollment in new text end 16.29 new text begin a postsecondary higher education institution; new text end 16.30 new text begin (5) real-time work experience in information new text end 16.31 new text begin technology fields; and new text end 16.32 new text begin (6) contextualized adult basic education. new text end 17.1 new text begin After notification to the legislature, the new text end 17.2 new text begin commissioner may transfer this appropriation new text end 17.3 new text begin to the commissioner of education. new text end 17.4 new text begin (j) $100,000 each year is for the getting to new text end 17.5 new text begin work grant program. This is a onetime new text end 17.6 new text begin appropriation and is available until June 30, new text end 17.7 new text begin 2021. new text end 17.8 new text begin (k) $525,000 each year is from the workforce new text end 17.9 new text begin development fund for a grant to the YWCA new text end 17.10 new text begin of Minneapolis to provide economically new text end 17.11 new text begin challenged individuals the job skills training, new text end 17.12 new text begin career counseling, and job placement new text end 17.13 new text begin assistance necessary to secure a child new text end 17.14 new text begin development associate credential and to have new text end 17.15 new text begin a career path in early childhood education. new text end 17.16 new text begin This is a onetime appropriation. new text end 17.17 new text begin (l) $1,350,000 each year is from the workforce new text end 17.18 new text begin development fund for a grant to the Minnesota new text end 17.19 new text begin High Tech Association to support new text end 17.20 new text begin SciTechsperience, a program that supports new text end 17.21 new text begin science, technology, engineering, and math new text end 17.22 new text begin (STEM) internship opportunities for two- and new text end 17.23 new text begin four-year college students and graduate new text end 17.24 new text begin students in their field of study. The internship new text end 17.25 new text begin opportunities must match students with paid new text end 17.26 new text begin internships within STEM disciplines at small, new text end 17.27 new text begin for-profit companies located in Minnesota, new text end 17.28 new text begin having fewer than 250 employees worldwide. new text end 17.29 new text begin At least 300 students must be matched in the new text end 17.30 new text begin first year and at least 350 students must be new text end 17.31 new text begin matched in the second year. No more than 15 new text end 17.32 new text begin percent of the hires may be graduate students. new text end 17.33 new text begin Selected hiring companies shall receive from new text end 17.34 new text begin the grant 50 percent of the wages paid to the new text end 17.35 new text begin intern, capped at $2,500 per intern. The new text end 18.1 new text begin program must work toward increasing the new text end 18.2 new text begin participation of women or other underserved new text end 18.3 new text begin populations. This is a onetime appropriation. new text end 18.4 new text begin (m) $450,000 each year is from the workforce new text end 18.5 new text begin development fund for grants to Minnesota new text end 18.6 new text begin Diversified Industries, Inc. to provide new text end 18.7 new text begin progressive development and employment new text end 18.8 new text begin opportunities for people with disabilities. This new text end 18.9 new text begin is a onetime appropriation. new text end 18.10 new text begin (n) $500,000 each year is from the workforce new text end 18.11 new text begin development fund for a grant to Resource, Inc. new text end 18.12 new text begin to provide low-income individuals career new text end 18.13 new text begin education and job skills training that are fully new text end 18.14 new text begin integrated with chemical and mental health new text end 18.15 new text begin services. This is a onetime appropriation. new text end 18.16 new text begin (o) $750,000 each year is from the workforce new text end 18.17 new text begin development fund for a grant to the Minnesota new text end 18.18 new text begin Alliance of Boys and Girls Clubs to administer new text end 18.19 new text begin a statewide project of youth job skills and new text end 18.20 new text begin career development. This project, which may new text end 18.21 new text begin have career guidance components including new text end 18.22 new text begin health and life skills, is designed to encourage, new text end 18.23 new text begin train, and assist youth in early access to new text end 18.24 new text begin education and job-seeking skills, work-based new text end 18.25 new text begin learning experience including career pathways new text end 18.26 new text begin in STEM learning, career exploration and new text end 18.27 new text begin matching, and first job placement through new text end 18.28 new text begin local community partnerships and on-site job new text end 18.29 new text begin opportunities. This grant requires a 25 percent new text end 18.30 new text begin match from nonstate resources. This is a new text end 18.31 new text begin onetime appropriation. new text end 18.32 new text begin (p) $215,000 each year is from the workforce new text end 18.33 new text begin development fund for grants to Big Brothers, new text end 18.34 new text begin Big Sisters of the Greater Twin Cities for new text end 18.35 new text begin workforce readiness, employment exploration, new text end 19.1 new text begin and skills development for youth ages 12 to new text end 19.2 new text begin 21. The grant must serve youth in the Twin new text end 19.3 new text begin Cities, Central Minnesota, and Southern new text end 19.4 new text begin Minnesota Big Brothers, Big Sisters chapters. new text end 19.5 new text begin This is a onetime appropriation. new text end 19.6 new text begin (q) $250,000 each year is from the workforce new text end 19.7 new text begin development fund for a grant to YWCA St. new text end 19.8 new text begin Paul to provide job training services and new text end 19.9 new text begin workforce development programs and new text end 19.10 new text begin services, including job skills training and new text end 19.11 new text begin counseling. This is a onetime appropriation. new text end 19.12 new text begin (r) $1,000,000 each year is from the workforce new text end 19.13 new text begin development fund for a grant to EMERGE new text end 19.14 new text begin Community Development, in collaboration new text end 19.15 new text begin with community partners, for services new text end 19.16 new text begin targeting Minnesota communities with the new text end 19.17 new text begin highest concentrations of African and new text end 19.18 new text begin African-American joblessness, based on the new text end 19.19 new text begin most recent census tract data, to provide new text end 19.20 new text begin employment readiness training, credentialed new text end 19.21 new text begin training placement, job placement and new text end 19.22 new text begin retention services, supportive services for new text end 19.23 new text begin hard-to-employ individuals, and a general new text end 19.24 new text begin education development fast track and adult new text end 19.25 new text begin diploma program. This is a onetime new text end 19.26 new text begin appropriation. new text end 19.27 new text begin (s) $1,000,000 each year is from the workforce new text end 19.28 new text begin development fund for a grant to the new text end 19.29 new text begin Minneapolis Foundation for a strategic new text end 19.30 new text begin intervention program designed to target and new text end 19.31 new text begin connect program participants to meaningful, new text end 19.32 new text begin sustainable living-wage employment. This is new text end 19.33 new text begin a onetime appropriation. new text end 19.34 new text begin (t) $750,000 each year is from the workforce new text end 19.35 new text begin development fund for a grant to Latino new text end 20.1 new text begin Communities United in Service (CLUES) to new text end 20.2 new text begin expand culturally tailored programs that new text end 20.3 new text begin address employment and education skill gaps new text end 20.4 new text begin for working parents and underserved youth by new text end 20.5 new text begin providing new job skills training to stimulate new text end 20.6 new text begin higher wages for low-income people, family new text end 20.7 new text begin support systems designed to reduce new text end 20.8 new text begin intergenerational poverty, and youth new text end 20.9 new text begin programming to promote educational new text end 20.10 new text begin advancement and career pathways. At least new text end 20.11 new text begin 50 percent of this amount must be used for new text end 20.12 new text begin programming targeted at greater Minnesota. new text end 20.13 new text begin This is a onetime appropriation. new text end 20.14 new text begin (u) $600,000 each year is from the workforce new text end 20.15 new text begin development fund for a grant to Ujamaa Place new text end 20.16 new text begin for job training, employment preparation, new text end 20.17 new text begin internships, education, training in the new text end 20.18 new text begin construction trades, housing, and new text end 20.19 new text begin organizational capacity building. This is a new text end 20.20 new text begin onetime appropriation. new text end 20.21 new text begin (v) $1,297,000 in the first year and $800,000 new text end 20.22 new text begin in the second year are from the workforce new text end 20.23 new text begin development fund for performance grants new text end 20.24 new text begin under Minnesota Statutes, section 116J.8747, new text end 20.25 new text begin to Twin Cities R!SE to provide training to new text end 20.26 new text begin hard-to-train individuals. Of the amounts new text end 20.27 new text begin appropriated, $497,000 in fiscal year 2018 is new text end 20.28 new text begin for a grant to Twin Cities R!SE, in new text end 20.29 new text begin collaboration with Metro Transit and Hennepin new text end 20.30 new text begin Technical College for the Metro Transit new text end 20.31 new text begin technician training program. This is a onetime new text end 20.32 new text begin appropriation and funds are available until new text end 20.33 new text begin June 30, 2020. new text end 20.34 new text begin (w) $230,000 in fiscal year 2018 is from the new text end 20.35 new text begin workforce development fund for a grant to the new text end 21.1 new text begin Bois Forte Tribal Employment Rights Office new text end 21.2 new text begin (TERO) for an American Indian workforce new text end 21.3 new text begin development training pilot project. new text end 21.4 new text begin (x) $40,000 in fiscal year 2018 is from the new text end 21.5 new text begin workforce development fund for a grant to the new text end 21.6 new text begin Cook County Higher Education Board to new text end 21.7 new text begin provide educational programming and new text end 21.8 new text begin academic support services to remote regions new text end 21.9 new text begin in northeastern Minnesota. This appropriation new text end 21.10 new text begin is in addition to other funds previously new text end 21.11 new text begin appropriated to the board. new text end 21.12 new text begin (y) $250,000 each year is from the workforce new text end 21.13 new text begin development fund for a grant to Bridges to new text end 21.14 new text begin Healthcare to provide career education, new text end 21.15 new text begin wraparound support services, and job skills new text end 21.16 new text begin training in high-demand health care fields to new text end 21.17 new text begin low-income parents, nonnative speakers of new text end 21.18 new text begin English, and other hard-to-train individuals, new text end 21.19 new text begin helping families build secure pathways out of new text end 21.20 new text begin poverty while also addressing worker new text end 21.21 new text begin shortages in one of Minnesota's most new text end 21.22 new text begin innovative industries. Funds may be used for new text end 21.23 new text begin program expenses, including, but not limited new text end 21.24 new text begin to, hiring instructors and navigators; space new text end 21.25 new text begin rental; and supportive services to help new text end 21.26 new text begin participants attend classes, including assistance new text end 21.27 new text begin with course fees, child care, transportation, new text end 21.28 new text begin and safe and stable housing. In addition, up to new text end 21.29 new text begin five percent of grant funds may be used for new text end 21.30 new text begin Bridges to Healthcare's administrative costs. new text end 21.31 new text begin This is a onetime appropriation and is new text end 21.32 new text begin available until June 30, 2020. new text end 21.33 new text begin (z) $500,000 each year is from the workforce new text end 21.34 new text begin development fund for a grant to the Nonprofits new text end 21.35 new text begin Assistance Fund to provide capacity-building new text end 22.1 new text begin grants to small, culturally specific new text end 22.2 new text begin organizations that primarily serve historically new text end 22.3 new text begin underserved cultural communities. Grants may new text end 22.4 new text begin only be awarded to nonprofit organizations new text end 22.5 new text begin that have an annual organizational budget of new text end 22.6 new text begin less than $500,000 and are culturally specific new text end 22.7 new text begin organizations that primarily serve historically new text end 22.8 new text begin underserved cultural communities. Grant funds new text end 22.9 new text begin awarded must be used for: new text end 22.10 new text begin (1) organizational infrastructure improvement, new text end 22.11 new text begin including developing database management new text end 22.12 new text begin systems and financial systems, or other new text end 22.13 new text begin administrative needs that increase the new text end 22.14 new text begin organization's ability to access new funding new text end 22.15 new text begin sources; new text end 22.16 new text begin (2) organizational workforce development, new text end 22.17 new text begin including hiring culturally competent staff, new text end 22.18 new text begin training and skills development, and other new text end 22.19 new text begin methods of increasing staff capacity; or new text end 22.20 new text begin (3) creation or expansion of partnerships with new text end 22.21 new text begin existing organizations that have specialized new text end 22.22 new text begin expertise in order to increase the capacity of new text end 22.23 new text begin the grantee organization to improve services new text end 22.24 new text begin for the community. Of this amount, up to five new text end 22.25 new text begin percent may be used by the Nonprofits new text end 22.26 new text begin Assistance Fund for administration costs and new text end 22.27 new text begin providing technical assistance to potential new text end 22.28 new text begin grantees. This is a onetime appropriation. new text end 22.29 new text begin (aa) $4,050,000 each year is from the new text end 22.30 new text begin workforce development fund for the new text end 22.31 new text begin Minnesota youth program under Minnesota new text end 22.32 new text begin Statutes, sections 116L.56 and 116L.561. new text end 22.33 new text begin (bb) $1,000,000 each year is from the new text end 22.34 new text begin workforce development fund for the new text end 23.1 new text begin youthbuild program under Minnesota Statutes, new text end 23.2 new text begin sections 116L.361 to 116L.366. new text end 23.3 new text begin (cc) $3,348,000 each year is from the new text end 23.4 new text begin workforce development fund for the "Youth new text end 23.5 new text begin at Work" youth workforce development new text end 23.6 new text begin competitive grant program. Of this amount, new text end 23.7 new text begin up to five percent is for administration and new text end 23.8 new text begin monitoring of the youth workforce new text end 23.9 new text begin development competitive grant program. All new text end 23.10 new text begin grant awards shall be for two consecutive new text end 23.11 new text begin years. Grants shall be awarded in the first year. new text end 23.12 new text begin (dd) $500,000 each year is from the workforce new text end 23.13 new text begin development fund for the Opportunities new text end 23.14 new text begin Industrialization Center programs. new text end 23.15 new text begin (ee) $750,000 each year is from the workforce new text end 23.16 new text begin development fund for a grant to Summit new text end 23.17 new text begin Academy OIC to expand its contextualized new text end 23.18 new text begin GED and employment placement program. new text end 23.19 new text begin This is a onetime appropriation. new text end 23.20 new text begin (ff) $500,000 each year is from the workforce new text end 23.21 new text begin development fund for a grant to new text end 23.22 new text begin Goodwill-Easter Seals Minnesota and its new text end 23.23 new text begin partners. The grant shall be used to continue new text end 23.24 new text begin the FATHER Project in Rochester, Park new text end 23.25 new text begin Rapids, St. Cloud, Minneapolis, and the new text end 23.26 new text begin surrounding areas to assist fathers in new text end 23.27 new text begin overcoming barriers that prevent fathers from new text end 23.28 new text begin supporting their children economically and new text end 23.29 new text begin emotionally. This is a onetime appropriation. new text end 23.30 new text begin (gg) $150,000 each year is from the workforce new text end 23.31 new text begin development fund for displaced homemaker new text end 23.32 new text begin programs under Minnesota Statutes, section new text end 23.33 new text begin 116L.96. The commissioner shall distribute new text end 23.34 new text begin the funds to existing nonprofit and state new text end 24.1 new text begin displaced homemaker programs. This is a new text end 24.2 new text begin onetime appropriation. new text end 24.3 new text begin (hh)(1) $150,000 in fiscal year 2018 is from new text end 24.4 new text begin the workforce development fund for a grant new text end 24.5 new text begin to Anoka County to develop and implement new text end 24.6 new text begin a pilot program to increase competitive new text end 24.7 new text begin employment opportunities for transition-age new text end 24.8 new text begin youth ages 18 to 21. new text end 24.9 new text begin (2) The competitive employment for new text end 24.10 new text begin transition-age youth pilot program shall new text end 24.11 new text begin include career guidance components, including new text end 24.12 new text begin health and life skills, to encourage, train, and new text end 24.13 new text begin assist transition-age youth in job-seeking new text end 24.14 new text begin skills, workplace orientation, and job site new text end 24.15 new text begin knowledge. new text end 24.16 new text begin (3) In operating the pilot program, Anoka new text end 24.17 new text begin County shall collaborate with schools, new text end 24.18 new text begin disability providers, jobs and training new text end 24.19 new text begin organizations, vocational rehabilitation new text end 24.20 new text begin providers, and employers to build upon new text end 24.21 new text begin opportunities and services, to prepare new text end 24.22 new text begin transition-age youth for competitive new text end 24.23 new text begin employment, and to enhance employer new text end 24.24 new text begin connections that lead to employment for the new text end 24.25 new text begin individuals served. new text end 24.26 new text begin (4) Grant funds may be used to create an new text end 24.27 new text begin on-the-job training incentive to encourage new text end 24.28 new text begin employers to hire and train qualifying new text end 24.29 new text begin individuals. A participating employer may new text end 24.30 new text begin receive up to 50 percent of the wages paid to new text end 24.31 new text begin the employee as a cost reimbursement for new text end 24.32 new text begin on-the-job training provided. new text end 24.33 new text begin (ii) $500,000 each year is from the workforce new text end 24.34 new text begin development fund for rural career counseling new text end 25.1 new text begin coordinator positions in the workforce service new text end 25.2 new text begin areas and for the purposes specified in new text end 25.3 new text begin Minnesota Statutes, section 116L.667. The new text end 25.4 new text begin commissioner of employment and economic new text end 25.5 new text begin development, in consultation with local new text end 25.6 new text begin workforce investment boards and local elected new text end 25.7 new text begin officials in each of the service areas receiving new text end 25.8 new text begin funds, shall develop a method of distributing new text end 25.9 new text begin funds to provide equitable services across new text end 25.10 new text begin workforce service areas. new text end 25.11 new text begin (jj) In calendar year 2017, the public utility new text end 25.12 new text begin subject to Minnesota Statutes, section new text end 25.13 new text begin 116C.779, must withhold $1,000,000 from the new text end 25.14 new text begin funds required to fulfill its financial new text end 25.15 new text begin commitments under Minnesota Statutes, new text end 25.16 new text begin section 116C.779, subdivision 1, and pay such new text end 25.17 new text begin amounts to the commissioner of employment new text end 25.18 new text begin and economic development for deposit in the new text end 25.19 new text begin Minnesota 21st century fund under Minnesota new text end 25.20 new text begin Statutes, section 116J.423. new text end 25.21 new text begin (kk) $350,000 in fiscal year 2018 is for a grant new text end 25.22 new text begin to AccessAbility Incorporated to provide job new text end 25.23 new text begin skills training to individuals who have been new text end 25.24 new text begin released from incarceration for a felony-level new text end 25.25 new text begin offense and are no more than 12 months from new text end 25.26 new text begin the date of release. AccessAbility Incorporated new text end 25.27 new text begin shall annually report to the commissioner on new text end 25.28 new text begin how the money was spent and the results new text end 25.29 new text begin achieved. The report must include, at a new text end 25.30 new text begin minimum, information and data about the new text end 25.31 new text begin number of participants; participant new text end 25.32 new text begin homelessness, employment, recidivism, and new text end 25.33 new text begin child support compliance; and training new text end 25.34 new text begin provided to program participants. new text end 25.35 new text begin Subd. 4. new text end new text begin General Support Services new text end new text begin $ new text end new text begin 4,170,000 new text end new text begin $ new text end new text begin 4,654,000 new text end 26.1 new text begin Appropriations by Fund new text end 26.2 new text begin General Fund new text end new text begin $4,135,000 new text end new text begin $4,606,000 new text end 26.3 26.4 new text begin Workforce new text end new text begin Development new text end new text begin $35,000 new text end new text begin $48,000 new text end 26.5 new text begin (a) $250,000 each year is for the publication, new text end 26.6 new text begin dissemination, and use of labor market new text end 26.7 new text begin information under Minnesota Statutes, section new text end 26.8 new text begin 116J.401. new text end 26.9 new text begin (b) $1,269,000 each year is for transfer to the new text end 26.10 new text begin Minnesota Housing Finance Agency for new text end 26.11 new text begin operating the Olmstead Compliance Office. new text end 26.12 new text begin (c) $500,000 each year is for a statewide new text end 26.13 new text begin capacity-building grant program. The new text end 26.14 new text begin commissioner of employment and economic new text end 26.15 new text begin development shall, through a request for new text end 26.16 new text begin proposal process, select a nonprofit new text end 26.17 new text begin organization to administer the new text end 26.18 new text begin capacity-building grant program. The selected new text end 26.19 new text begin organization must have demonstrated new text end 26.20 new text begin experience in providing financial and technical new text end 26.21 new text begin assistance to nonprofit organizations statewide. new text end 26.22 new text begin The selected organization shall provide new text end 26.23 new text begin financial assistance in the form of subgrants new text end 26.24 new text begin and technical assistance to small to new text end 26.25 new text begin medium-sized nonprofit organizations new text end 26.26 new text begin offering, or seeking to offer, workforce or new text end 26.27 new text begin economic development programming that new text end 26.28 new text begin addresses economic disparities in underserved new text end 26.29 new text begin cultural communities. This assistance can be new text end 26.30 new text begin provided in-house or in partnership with other new text end 26.31 new text begin organizations depending on need. The new text end 26.32 new text begin nonprofit organization selected to administer new text end 26.33 new text begin the grant program shall report to the new text end 26.34 new text begin commissioner by February 1 each year new text end 26.35 new text begin regarding assistance provided, including the new text end 26.36 new text begin demographic and geographic distribution of new text end 27.1 new text begin the grant awards, services, and outcomes. By new text end 27.2 new text begin April 1 each year, the commissioner shall new text end 27.3 new text begin report the information submitted by the new text end 27.4 new text begin nonprofit to the legislative committees having new text end 27.5 new text begin jurisdiction over economic development new text end 27.6 new text begin issues. Of this amount, one percent is for the new text end 27.7 new text begin commissioner to conduct the request for new text end 27.8 new text begin proposal process and monitor the selected new text end 27.9 new text begin organization. The nonprofit selected to new text end 27.10 new text begin administer the grant program may use up to new text end 27.11 new text begin five percent of the grant funds for new text end 27.12 new text begin administration costs and providing technical new text end 27.13 new text begin assistance to potential subgrantees. new text end 27.14 new text begin (d) $25,000 each year is for the administration new text end 27.15 new text begin of state aid for the Destination Medical Center new text end 27.16 new text begin under Minnesota Statutes, sections 469.40 to new text end 27.17 new text begin 469.47. new text end 27.18 new text begin Subd. 5. new text end new text begin Minnesota Trade Office new text end new text begin $ new text end new text begin 2,292,000 new text end new text begin $ new text end new text begin 2,292,000 new text end 27.19 new text begin (a) $300,000 each year is for the STEP grants new text end 27.20 new text begin in Minnesota Statutes, section 116J.979. new text end 27.21 new text begin (b) $180,000 each year is for the Invest new text end 27.22 new text begin Minnesota marketing initiative in Minnesota new text end 27.23 new text begin Statutes, section 116J.9781. new text end 27.24 new text begin (c) $270,000 each year is for the Minnesota new text end 27.25 new text begin Trade Offices under Minnesota Statutes, new text end 27.26 new text begin section 116J.978. new text end 27.27 new text begin (d) $50,000 each year is for the Trade Policy new text end 27.28 new text begin Advisory Council under Minnesota Statutes, new text end 27.29 new text begin section 116J.9661. new text end 27.30 new text begin Subd. 6. new text end new text begin Vocational Rehabilitation new text end new text begin $ new text end new text begin 34,691,000 new text end new text begin $ new text end new text begin 34,691,000 new text end 27.31 new text begin Appropriations by Fund new text end 27.32 new text begin General new text end new text begin $26,861,000 new text end new text begin $26,861,000 new text end 27.33 27.34 new text begin Workforce new text end new text begin Development new text end new text begin $7,830,000 new text end new text begin $7,830,000 new text end 28.1 new text begin (a) $14,300,000 each year is for the state's new text end 28.2 new text begin vocational rehabilitation program under new text end 28.3 new text begin Minnesota Statutes, chapter 268A. In fiscal new text end 28.4 new text begin year 2020 and beyond, the base amount is new text end 28.5 new text begin $10,800,000. new text end 28.6 new text begin (b) $3,011,000 each year is for grants to new text end 28.7 new text begin centers for independent living under new text end 28.8 new text begin Minnesota Statutes, section 268A.11. new text end 28.9 new text begin (c) $6,995,000 each year is from the general new text end 28.10 new text begin fund and $6,830,000 each year is from the new text end 28.11 new text begin workforce development fund for extended new text end 28.12 new text begin employment services for persons with severe new text end 28.13 new text begin disabilities under Minnesota Statutes, section new text end 28.14 new text begin 268A.15. Of the general fund amount new text end 28.15 new text begin appropriated, $1,000,000 each year is for rate new text end 28.16 new text begin increases to providers of extended employment new text end 28.17 new text begin services for persons with severe disabilities new text end 28.18 new text begin under Minnesota Statutes, section 268A.15. new text end 28.19 new text begin In fiscal year 2020 and beyond, the general new text end 28.20 new text begin fund base amount is $8,995,000. Of the base new text end 28.21 new text begin amounts in fiscal years 2020 and 2021, new text end 28.22 new text begin $2,000,000 in fiscal year 2020 and $2,000,000 new text end 28.23 new text begin in fiscal year 2021 are for rate increases to new text end 28.24 new text begin providers of extended employment services new text end 28.25 new text begin for persons with severe disabilities under new text end 28.26 new text begin Minnesota Statutes, section 268A.15. new text end 28.27 new text begin (d) $2,555,000 each year is for grants to new text end 28.28 new text begin programs that provide employment support new text end 28.29 new text begin services to persons with mental illness under new text end 28.30 new text begin Minnesota Statutes, sections 268A.13 and new text end 28.31 new text begin 268A.14. new text end 28.32 new text begin (e) $1,000,000 each year is from the workforce new text end 28.33 new text begin development fund for grants under Minnesota new text end 28.34 new text begin Statutes, section 268A.16, for employment new text end 28.35 new text begin services for persons, including transition-age new text end 29.1 new text begin youth, who are deaf, deafblind, or new text end 29.2 new text begin hard-of-hearing. If the amount in the first year new text end 29.3 new text begin is insufficient, the amount in the second year new text end 29.4 new text begin is available in the first year. new text end 29.5 new text begin Subd. 7. new text end new text begin Services for the Blind new text end new text begin $ new text end new text begin 6,425,000 new text end new text begin $ new text end new text begin 6,425,000 new text end 29.6 new text begin Of this amount, $500,000 each year is for new text end 29.7 new text begin senior citizens who are becoming blind. At new text end 29.8 new text begin least half of the funds for this purpose must new text end 29.9 new text begin be used to provide training services for seniors new text end 29.10 new text begin who are becoming blind. Training services new text end 29.11 new text begin must provide independent living skills to new text end 29.12 new text begin seniors who are becoming blind to allow them new text end 29.13 new text begin to continue to live independently in their new text end 29.14 new text begin homes. new text end 29.15 new text begin Subd. 8. new text end new text begin Broadband Development new text end new text begin $ new text end new text begin 20,250,000 new text end new text begin $ new text end new text begin 250,000 new text end 29.16 new text begin (a) $20,000,000 in fiscal year 2018 is for new text end 29.17 new text begin deposit in the border-to-border broadband fund new text end 29.18 new text begin account in the special revenue fund established new text end 29.19 new text begin under Minnesota Statutes, section 116J.396. new text end 29.20 new text begin (b) $250,000 each year is for the Broadband new text end 29.21 new text begin Development Office. new text end 29.22 new text begin Subd. 9. new text end new text begin Reporting new text end 29.23 new text begin (a) An entity receiving a direct appropriation new text end 29.24 new text begin in this article that received a direct new text end 29.25 new text begin appropriation in Laws 2016, chapter 189, new text end 29.26 new text begin article 12, is subject to the requirements for new text end 29.27 new text begin grants to individually specified recipients new text end 29.28 new text begin under Laws 2016, chapter 189, article 12, new text end 29.29 new text begin section 11. new text end 29.30 new text begin (b) Any recipient of a direct appropriation new text end 29.31 new text begin from the workforce development fund for new text end 29.32 new text begin adult workforce-related programs under new text end 29.33 new text begin subdivision 3 not subject to the requirements new text end 29.34 new text begin of paragraph (a) is subject to the reporting new text end 30.1 new text begin requirements under Minnesota Statutes, new text end 30.2 new text begin section 116L.98. new text end 30.3 Sec. 3. new text begin HOUSING FINANCE AGENCY new text end 30.4 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 54,798,000 new text end new text begin $ new text end new text begin 52,798,000 new text end 30.5 new text begin The amounts that may be spent for each new text end 30.6 new text begin purpose are specified in the following new text end 30.7 new text begin subdivisions. new text end 30.8 new text begin Unless otherwise specified, this appropriation new text end 30.9 new text begin is for transfer to the housing development fund new text end 30.10 new text begin for the programs specified in this section. new text end 30.11 new text begin Except as otherwise indicated, this transfer is new text end 30.12 new text begin part of the agency's permanent budget base. new text end 30.13 new text begin Subd. 2. new text end new text begin Challenge Program new text end new text begin 14,925,000 new text end new text begin 14,925,000 new text end 30.14 new text begin (a)(1) This appropriation is for the economic new text end 30.15 new text begin development and housing challenge program new text end 30.16 new text begin under Minnesota Statutes, section 462A.33. new text end 30.17 new text begin The agency must continue to strengthen its new text end 30.18 new text begin efforts to address the disparity rate between new text end 30.19 new text begin white households and indigenous American new text end 30.20 new text begin Indians and communities of color. Of this new text end 30.21 new text begin amount, $1,208,000 each year shall be made new text end 30.22 new text begin available during the first 11 months of the new text end 30.23 new text begin fiscal year exclusively for housing projects new text end 30.24 new text begin for American Indians. Any funds not new text end 30.25 new text begin committed to housing projects for American new text end 30.26 new text begin Indians in the first 11 months of each fiscal new text end 30.27 new text begin year shall be available for any eligible activity new text end 30.28 new text begin under Minnesota Statutes, section 462A.33. new text end 30.29 new text begin (2) The appropriation may be used to finance new text end 30.30 new text begin the construction or replacement of real new text end 30.31 new text begin property that is located in Melrose affected by new text end 30.32 new text begin the fire on September 8, 2016. new text end 31.1 new text begin (3) The commissioner may allocate a portion new text end 31.2 new text begin of the appropriation for the economic new text end 31.3 new text begin development and housing challenge program new text end 31.4 new text begin for assistance in the area included in DR-4290, new text end 31.5 new text begin as provided in Minnesota Statutes, section new text end 31.6 new text begin 12A.09. The maximum loan amount per new text end 31.7 new text begin housing structure is $20,000. Within the limits new text end 31.8 new text begin of available appropriations, the agency may new text end 31.9 new text begin increase the maximum amount if the cost of new text end 31.10 new text begin repair or replacement of the residential new text end 31.11 new text begin property exceeds the total of the maximum new text end 31.12 new text begin loan amount and any assistance available from new text end 31.13 new text begin FEMA, other federal government agencies, new text end 31.14 new text begin including the Small Business Administration, new text end 31.15 new text begin and private insurance and flood insurance new text end 31.16 new text begin benefits. new text end 31.17 new text begin (b) $2,000,000 each year is for the purposes new text end 31.18 new text begin of the workforce housing development new text end 31.19 new text begin program under Minnesota Statutes, section new text end 31.20 new text begin 462A.39. The commissioner of housing new text end 31.21 new text begin finance may hire staff sufficient for the new text end 31.22 new text begin purposes of this paragraph. new text end 31.23 new text begin Subd. 3. new text end new text begin Housing Trust Fund new text end new text begin 13,396,000 new text end new text begin 11,646,000 new text end 31.24 new text begin (a) This appropriation is for deposit in the new text end 31.25 new text begin housing fund account created under Minnesota new text end 31.26 new text begin Statutes, section 462A.201, and may be used new text end 31.27 new text begin for the purposes provided in that section. new text end 31.28 new text begin (b) $1,750,000 in fiscal year 2018 is for the new text end 31.29 new text begin rental assistance to highly mobile students new text end 31.30 new text begin program under Minnesota Statutes, section new text end 31.31 new text begin 462A.201, subdivision 2, paragraph (a), clause new text end 31.32 new text begin (4). new text end 31.33 new text begin Subd. 4. new text end new text begin Rental Assistance for Mentally Ill new text end new text begin 4,088,000 new text end new text begin 4,088,000 new text end 32.1 new text begin This appropriation is for the rental housing new text end 32.2 new text begin assistance program for persons with a mental new text end 32.3 new text begin illness or families with an adult member with new text end 32.4 new text begin a mental illness, under Minnesota Statutes, new text end 32.5 new text begin section 462A.2097. Among comparable new text end 32.6 new text begin proposals, the agency shall prioritize those new text end 32.7 new text begin proposals that target, in part, eligible persons new text end 32.8 new text begin who desire to move to more integrated, new text end 32.9 new text begin community-based settings. new text end 32.10 new text begin Subd. 5. new text end new text begin Family Homeless Prevention new text end new text begin 8,769,000 new text end new text begin 8,519,000 new text end 32.11 new text begin (a) This appropriation is for the family new text end 32.12 new text begin homeless prevention and assistance programs new text end 32.13 new text begin under Minnesota Statutes, section 462A.204. new text end 32.14 new text begin (b) $250,000 in fiscal year 2018 is for grants new text end 32.15 new text begin to programs under Minnesota Statutes, section new text end 32.16 new text begin 462A.204, subdivision 8. new text end 32.17 new text begin Subd. 6. new text end new text begin Home Ownership Assistance Fund new text end new text begin 885,000 new text end new text begin 885,000 new text end 32.18 new text begin This appropriation is for the home ownership new text end 32.19 new text begin assistance program under Minnesota Statutes, new text end 32.20 new text begin section 462A.21, subdivision 8. The agency new text end 32.21 new text begin shall continue to strengthen its efforts to new text end 32.22 new text begin address the disparity gap in the new text end 32.23 new text begin homeownership rate between white new text end 32.24 new text begin households and indigenous American Indians new text end 32.25 new text begin and communities of color. new text end 32.26 new text begin Subd. 7. new text end new text begin Affordable Rental Investment Fund new text end new text begin 4,218,000 new text end new text begin 4,218,000 new text end 32.27 new text begin (a) This appropriation is for the affordable new text end 32.28 new text begin rental investment fund program under new text end 32.29 new text begin Minnesota Statutes, section 462A.21, new text end 32.30 new text begin subdivision 8b, to finance the acquisition, new text end 32.31 new text begin rehabilitation, and debt restructuring of new text end 32.32 new text begin federally assisted rental property and for new text end 32.33 new text begin making equity take-out loans under Minnesota new text end 32.34 new text begin Statutes, section 462A.05, subdivision 39. new text end 33.1 new text begin (b) The owner of federally assisted rental new text end 33.2 new text begin property must agree to participate in the new text end 33.3 new text begin applicable federally assisted housing program new text end 33.4 new text begin and to extend any existing low-income new text end 33.5 new text begin affordability restrictions on the housing for new text end 33.6 new text begin the maximum term permitted. The owner must new text end 33.7 new text begin also enter into an agreement that gives local new text end 33.8 new text begin units of government, housing and new text end 33.9 new text begin redevelopment authorities, and nonprofit new text end 33.10 new text begin housing organizations the right of first refusal new text end 33.11 new text begin if the rental property is offered for sale. new text end 33.12 new text begin Priority must be given among comparable new text end 33.13 new text begin federally assisted rental properties to new text end 33.14 new text begin properties with the longest remaining term new text end 33.15 new text begin under an agreement for federal assistance. new text end 33.16 new text begin Priority must also be given among comparable new text end 33.17 new text begin rental housing developments to developments new text end 33.18 new text begin that are or will be owned by local government new text end 33.19 new text begin units, a housing and redevelopment authority, new text end 33.20 new text begin or a nonprofit housing organization. new text end 33.21 new text begin (c) The appropriation also may be used to new text end 33.22 new text begin finance the acquisition, rehabilitation, and debt new text end 33.23 new text begin restructuring of existing supportive housing new text end 33.24 new text begin properties. For purposes of this subdivision, new text end 33.25 new text begin "supportive housing" means affordable rental new text end 33.26 new text begin housing with links to services necessary for new text end 33.27 new text begin individuals, youth, and families with children new text end 33.28 new text begin to maintain housing stability. new text end 33.29 new text begin Subd. 8. new text end new text begin Housing Rehabilitation new text end new text begin 6,515,000 new text end new text begin 6,515,000 new text end 33.30 new text begin This appropriation is for the housing new text end 33.31 new text begin rehabilitation program under Minnesota new text end 33.32 new text begin Statutes, section 462A.05, subdivision 14. Of new text end 33.33 new text begin this amount, $2,772,000 each year is for the new text end 33.34 new text begin rehabilitation of owner-occupied housing, new text end 33.35 new text begin $3,743,000 each year is for the rehabilitation new text end 34.1 new text begin of eligible rental housing. In administering a new text end 34.2 new text begin rehabilitation program for rental housing, the new text end 34.3 new text begin agency may apply the processes and priorities new text end 34.4 new text begin adopted for administration of the economic new text end 34.5 new text begin development and housing challenge program new text end 34.6 new text begin under Minnesota Statutes, section 462A.33. new text end 34.7 34.8 new text begin Subd. 9. new text end new text begin Homeownership Education, Counseling, new text end new text begin and Training new text end new text begin 857,000 new text end new text begin 857,000 new text end 34.9 new text begin This appropriation is for the homeownership new text end 34.10 new text begin education, counseling, and training program new text end 34.11 new text begin under Minnesota Statutes, section 462A.209. new text end 34.12 new text begin Priority may be given to funding programs new text end 34.13 new text begin that are aimed at culturally specific groups new text end 34.14 new text begin who are providing services to members of their new text end 34.15 new text begin communities. new text end 34.16 new text begin Subd. 10. new text end new text begin Capacity Building Grants new text end new text begin 645,000 new text end new text begin 645,000 new text end 34.17 new text begin This appropriation is for nonprofit capacity new text end 34.18 new text begin building grants under Minnesota Statutes, new text end 34.19 new text begin section 462A.21, subdivision 3b. Of this new text end 34.20 new text begin amount, $125,000 each year is for support of new text end 34.21 new text begin the Homeless Management Information new text end 34.22 new text begin System (HMIS). new text end 34.23 new text begin Subd. 11. new text end new text begin Build Wealth MN new text end new text begin 500,000 new text end new text begin 500,000 new text end 34.24 new text begin This appropriation is for grants to Build new text end 34.25 new text begin Wealth MN to provide a family stabilization new text end 34.26 new text begin plan program including program outreach, new text end 34.27 new text begin financial literacy education, and budget and new text end 34.28 new text begin debt counseling. new text end 34.29 34.30 Sec. 4. new text begin DEPARTMENT OF LABOR AND new text end new text begin INDUSTRY new text end 34.31 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 28,820,000 new text end new text begin $ new text end new text begin 29,143,000 new text end 34.32 new text begin Appropriations by Fund new text end 34.33 new text begin 2018 new text end new text begin 2019 new text end 34.34 new text begin General new text end new text begin 1,776,000 new text end new text begin 1,790,000 new text end 35.1 35.2 new text begin Workers' new text end new text begin Compensation new text end new text begin 24,975,000 new text end new text begin 24,975,000 new text end 35.3 35.4 new text begin Workforce new text end new text begin Development new text end new text begin 2,069,000 new text end new text begin 2,378,000 new text end 35.5 new text begin The amounts that may be spent for each new text end 35.6 new text begin purpose are specified in the following new text end 35.7 new text begin subdivisions. new text end 35.8 new text begin Subd. 2. new text end new text begin Workers' Compensation new text end new text begin 14,782,000 new text end new text begin 14,782,000 new text end 35.9 new text begin (a) This appropriation is from the workers' new text end 35.10 new text begin compensation fund. new text end 35.11 new text begin (b)(1) $3,000,000 each year is for workers' new text end 35.12 new text begin compensation system upgrades. This amount new text end 35.13 new text begin is available until June 30, 2021. This is a new text end 35.14 new text begin onetime appropriation. new text end 35.15 new text begin (2) This appropriation includes funds for new text end 35.16 new text begin information technology project services and new text end 35.17 new text begin support subject to the provisions of Minnesota new text end 35.18 new text begin Statutes, section 16E.0466. Any ongoing new text end 35.19 new text begin information technology costs must be new text end 35.20 new text begin incorporated into the service level agreement new text end 35.21 new text begin and must be paid to the Office of MN.IT new text end 35.22 new text begin Services by the commissioner of labor and new text end 35.23 new text begin industry under the rates and mechanism new text end 35.24 new text begin specified in that agreement. new text end 35.25 new text begin Subd. 3. new text end new text begin Labor Standards and Apprenticeship new text end new text begin 3,645,000 new text end new text begin 3,668,000 new text end 35.26 new text begin Appropriations by Fund new text end 35.27 new text begin General new text end new text begin 1,776,000 new text end new text begin 1,790,000 new text end 35.28 35.29 new text begin Workforce new text end new text begin Development new text end new text begin 1,869,000 new text end new text begin 1,878,000 new text end 35.30 new text begin (a) $500,000 each year is from the general new text end 35.31 new text begin fund for wage theft prevention under the new text end 35.32 new text begin division of labor standards. new text end 35.33 new text begin (b) $100,000 each year is from the workforce new text end 35.34 new text begin development fund for labor education and new text end 35.35 new text begin advancement program grants under Minnesota new text end 36.1 new text begin Statutes, section 178.11, to expand and new text end 36.2 new text begin promote registered apprenticeship training for new text end 36.3 new text begin minorities and women. new text end 36.4 new text begin (c) $300,000 each year is from the workforce new text end 36.5 new text begin development fund for the PIPELINE program. new text end 36.6 new text begin (d) $200,000 each year is from the workforce new text end 36.7 new text begin development fund for grants to the new text end 36.8 new text begin Construction Careers Foundation for the new text end 36.9 new text begin Helmets to Hardhats Minnesota initiative. new text end 36.10 new text begin Grant funds must be used to recruit, retain, new text end 36.11 new text begin assist, and support National Guard, reserve, new text end 36.12 new text begin and active duty military members' and new text end 36.13 new text begin veterans' participation into apprenticeship new text end 36.14 new text begin programs registered with the Department of new text end 36.15 new text begin Labor and Industry and connect them with new text end 36.16 new text begin career training and employment in the building new text end 36.17 new text begin and construction industry. The recruitment, new text end 36.18 new text begin selection, employment, and training must be new text end 36.19 new text begin without discrimination due to race, color, new text end 36.20 new text begin creed, religion, national origin, sex, sexual new text end 36.21 new text begin orientation, marital status, physical or mental new text end 36.22 new text begin disability, receipt of public assistance, or age. new text end 36.23 new text begin This is a onetime appropriation. new text end 36.24 new text begin (e) $1,029,000 each year is from the workforce new text end 36.25 new text begin development fund for the apprenticeship new text end 36.26 new text begin program under Minnesota Statutes, chapter new text end 36.27 new text begin 178. new text end 36.28 new text begin (f) $150,000 each year is from the workforce new text end 36.29 new text begin development fund for prevailing wage new text end 36.30 new text begin enforcement. new text end 36.31 new text begin Subd. 4. new text end new text begin Workplace Safety new text end new text begin 4,154,000 new text end new text begin 4,154,000 new text end 36.32 new text begin This appropriation is from the workers' new text end 36.33 new text begin compensation fund. new text end 36.34 new text begin Subd. 5. new text end new text begin General Support new text end new text begin 6,239,000 new text end new text begin 6,539,000 new text end 37.1 new text begin Appropriations by Fund new text end 37.2 37.3 new text begin Workforce new text end new text begin Development Fund new text end new text begin 200,000 new text end new text begin 500,000 new text end 37.4 37.5 new text begin Workers' new text end new text begin Compensation new text end new text begin 6,039,000 new text end new text begin 6,039,000 new text end 37.6 new text begin (a) Except as provided in paragraphs (b) and new text end 37.7 new text begin (c), this appropriation is from the workers' new text end 37.8 new text begin compensation fund. new text end 37.9 new text begin (b) $200,000 in fiscal year 2018 is from the new text end 37.10 new text begin workforce development fund for the new text end 37.11 new text begin commissioner of labor and industry to convene new text end 37.12 new text begin and collaborate with stakeholders as provided new text end 37.13 new text begin under Minnesota Statutes, section 175.46, new text end 37.14 new text begin subdivision 3, and to develop youth skills new text end 37.15 new text begin training competencies for approved new text end 37.16 new text begin occupations. This is a onetime appropriation. new text end 37.17 new text begin (c) $500,000 in fiscal year 2019 is from the new text end 37.18 new text begin workforce development fund to administer the new text end 37.19 new text begin youth skills training program under Minnesota new text end 37.20 new text begin Statutes, section 175.46. The commissioner new text end 37.21 new text begin shall award up to five grants each year to local new text end 37.22 new text begin partnerships located throughout the state, not new text end 37.23 new text begin to exceed $100,000 per local partnership grant. new text end 37.24 new text begin The commissioner may use a portion of this new text end 37.25 new text begin appropriation for administration of the grant new text end 37.26 new text begin program. The base amount for this program new text end 37.27 new text begin is $500,000 each year beginning in fiscal year new text end 37.28 new text begin 2020. new text end 37.29 Sec. 5. new text begin BUREAU OF MEDIATION SERVICES new text end new text begin $ new text end new text begin 2,446,000 new text end new text begin $ new text end new text begin 2,522,000 new text end 37.30 new text begin (a) $394,000 each year is for the Office of new text end 37.31 new text begin Collaboration and Dispute Resolution under new text end 37.32 new text begin Minnesota Statutes, section 179.90. Of this new text end 37.33 new text begin amount, $160,000 each year is for grants under new text end 37.34 new text begin Minnesota Statutes, section 179.91. new text end 38.1 new text begin (b) $68,000 each year is from the general fund new text end 38.2 new text begin for grants to area labor management new text end 38.3 new text begin committees. Grants may be awarded for a new text end 38.4 new text begin 12-month period beginning July 1 each year. new text end 38.5 new text begin Any unencumbered balance remaining at the new text end 38.6 new text begin end of the first year does not cancel but is new text end 38.7 new text begin available for the second year. new text end 38.8 new text begin (c) $125,000 each year is for purposes of the Public Employment Relations Board under new text end 38.9 new text begin Minnesota Statutes, section 179A.041 new text end 38.10 38.11 Sec. 6. new text begin WORKERS' COMPENSATION COURT new text end new text begin OF APPEALS new text end new text begin $ new text end new text begin 1,913,000 new text end new text begin $ new text end new text begin 1,913,000 new text end 38.12 new text begin This appropriation is from the workers' new text end 38.13 new text begin compensation fund. new text end 38.14 Sec. 7. new text begin DEPARTMENT OF COMMERCE new text end 38.15 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin new text end new text begin 27,485,000 new text end new text begin $ new text end new text begin new text end new text begin 27,165,000 new text end 38.16 new text begin Appropriations by Fund new text end 38.17 new text begin General new text end new text begin 23,472,000 new text end new text begin new text end new text begin 23,152,000 new text end 38.18 new text begin Special Revenue new text end new text begin new text end new text begin 2,210,000 new text end new text begin new text end new text begin 2,210,000 new text end 38.19 new text begin Petroleum Tank new text end new text begin 1,052,000 new text end new text begin 1,052,000 new text end 38.20 38.21 new text begin Workers' new text end new text begin Compensation new text end new text begin 751,000 new text end new text begin 751,000 new text end 38.22 new text begin The amounts that may be spent for each new text end 38.23 new text begin purpose are specified in the following new text end 38.24 new text begin subdivisions. new text end 38.25 new text begin Subd. 2. new text end new text begin Financial Institutions new text end new text begin 920,000 new text end new text begin 820,000 new text end 38.26 new text begin (a) $400,000 each year is for grants to Prepare new text end 38.27 new text begin and Prosper for purposes of developing, new text end 38.28 new text begin marketing, evaluating, and distributing a new text end 38.29 new text begin financial services inclusion program that will new text end 38.30 new text begin assist low-income and financially underserved new text end 38.31 new text begin populations build savings, strengthen credit, new text end 38.32 new text begin and provide services to assist them in being new text end 38.33 new text begin more financially stable and secure. Grants in new text end 38.34 new text begin fiscal year 2018 must be matched by nonstate new text end 39.1 new text begin contributions. Money remaining after the first new text end 39.2 new text begin year is available for the second year. new text end 39.3 new text begin (b) $100,000 in fiscal year 2018 is for a grant new text end 39.4 new text begin to Exodus Lending to assist individuals in new text end 39.5 new text begin reaching financial stability and resolving new text end 39.6 new text begin payday loans. this appropriation is available new text end 39.7 new text begin until June 30, 2020. new text end 39.8 39.9 new text begin Subd. 3. new text end new text begin Petroleum Tank Release Compensation new text end new text begin Board new text end new text begin 1,052,000 new text end new text begin 1,052,000 new text end 39.10 new text begin This appropriation is from the petroleum tank new text end 39.11 new text begin fund. new text end 39.12 new text begin Subd. 4. new text end new text begin Administrative Services new text end new text begin 7,386,000 new text end new text begin 7,386,000 new text end 39.13 new text begin (a) $384,000 each year is for additional new text end 39.14 new text begin compliance efforts with unclaimed property. new text end 39.15 new text begin The commissioner may issue contracts for new text end 39.16 new text begin these services. new text end 39.17 new text begin (b) $100,000 each year is for the support of new text end 39.18 new text begin broadband development. new text end 39.19 new text begin (c) $33,000 each year is for rulemaking and new text end 39.20 new text begin administration under Minnesota Statutes, new text end 39.21 new text begin section 80A.461. new text end 39.22 new text begin Subd. 5. new text end new text begin Telecommunications new text end new text begin new text end new text begin 2,619,000 new text end new text begin new text end new text begin 2,619,000 new text end 39.23 new text begin Appropriations by Fund new text end 39.24 new text begin General new text end new text begin 1,009,000 new text end new text begin new text end new text begin 1,009,000 new text end 39.25 new text begin Special Revenue new text end new text begin new text end new text begin 1,610,000 new text end new text begin new text end new text begin 1,610,000 new text end 39.26 new text begin $1,610,000 each year is from the new text end 39.27 new text begin telecommunication access Minnesota fund new text end 39.28 new text begin account in the special revenue fund for the new text end 39.29 new text begin following transfers. This appropriation is new text end 39.30 new text begin added to the department's base. new text end 39.31 new text begin (1) $1,170,000 each year is to the new text end 39.32 new text begin commissioner of human services to new text end 39.33 new text begin supplement the ongoing operational expenses new text end 40.1 new text begin of the Commission of Deaf, DeafBlind, and new text end 40.2 new text begin Hard-of-Hearing Minnesotans; new text end 40.3 new text begin (2) $290,000 each year is to the chief new text end 40.4 new text begin information officer for the purpose of new text end 40.5 new text begin coordinating technology accessibility and new text end 40.6 new text begin usability; new text end 40.7 new text begin (3) $100,000 each year is to the Legislative new text end 40.8 new text begin Coordinating Commission for captioning of new text end 40.9 new text begin legislative coverage. This transfer is subject new text end 40.10 new text begin to Minnesota Statutes, section 16A.281; and new text end 40.11 new text begin (4) $50,000 each year is to the Office of new text end 40.12 new text begin MN.IT Services for a consolidated access fund new text end 40.13 new text begin to provide grants to other state agencies related new text end 40.14 new text begin to accessibility of their Web-based services. new text end 40.15 new text begin Subd. 6. new text end new text begin Enforcement new text end new text begin 5,672,000 new text end new text begin 5,472,000 new text end 40.16 new text begin Appropriations by Fund new text end 40.17 new text begin General new text end new text begin 5,474,000 new text end new text begin 5,274,000 new text end 40.18 40.19 new text begin Workers' new text end new text begin Compensation new text end new text begin 198,000 new text end new text begin 198,000 new text end 40.20 new text begin (a) $279,000 each year is for health care new text end 40.21 new text begin enforcement. new text end 40.22 new text begin (b)(1) $200,000 in fiscal year 2018 is to create new text end 40.23 new text begin and execute a statewide education and new text end 40.24 new text begin outreach campaign to protect seniors, meaning new text end 40.25 new text begin those 60 years of age or older, vulnerable new text end 40.26 new text begin adults, as defined in Minnesota Statutes, new text end 40.27 new text begin section 626.5572, subdivision 21, and their new text end 40.28 new text begin caregivers from financial fraud and new text end 40.29 new text begin exploitation. new text end 40.30 new text begin (2) The education and outreach campaign must new text end 40.31 new text begin be statewide, and must include, but is not new text end 40.32 new text begin limited to, the dissemination of information new text end 40.33 new text begin through television, print, or other media, new text end 41.1 new text begin training and outreach to senior living facilities, new text end 41.2 new text begin and the creation of a senior fraud toolkit. new text end 41.3 new text begin (3) The commissioner of commerce shall new text end 41.4 new text begin report by January 15, 2018, to the chairs and new text end 41.5 new text begin ranking minority members of the committees new text end 41.6 new text begin of the house of representatives and senate new text end 41.7 new text begin having jurisdiction over commerce issues new text end 41.8 new text begin regarding the results of the statewide education new text end 41.9 new text begin and outreach campaign, and recommendations new text end 41.10 new text begin for supporting ongoing efforts to prevent new text end 41.11 new text begin financial fraud from occurring to, and the new text end 41.12 new text begin financial exploitation of, seniors, vulnerable new text end 41.13 new text begin adults, and their caregivers. new text end 41.14 new text begin (c) The revenue transferred in Minnesota new text end 41.15 new text begin Statutes, section 297I.11, subdivision 2, to the new text end 41.16 new text begin insurance fraud prevention account must be new text end 41.17 new text begin used in part for compensation for two new new text end 41.18 new text begin employees in the Commerce Fraud Bureau to new text end 41.19 new text begin perform analytical duties. The new employees new text end 41.20 new text begin must not be peace officers. new text end 41.21 new text begin Subd. 7. new text end new text begin Energy Resources new text end new text begin 4,847,000 new text end new text begin 4,847,000 new text end 41.22 new text begin Appropriations by Fund new text end 41.23 new text begin General new text end new text begin 4,247,000 new text end new text begin new text end new text begin 4,247,000 new text end 41.24 new text begin Special Revenue new text end new text begin 600,000 new text end new text begin new text end new text begin 600,000 new text end 41.25 new text begin (a) $150,000 each year is to remediate new text end 41.26 new text begin vermiculate insulation from households that new text end 41.27 new text begin are eligible for weatherization assistance under new text end 41.28 new text begin Minnesota's weatherization assistance program new text end 41.29 new text begin state plan under Minnesota Statutes, section new text end 41.30 new text begin 216C.264. Remediation must be done in new text end 41.31 new text begin conjunction with federal weatherization new text end 41.32 new text begin assistance program services. new text end 41.33 new text begin (b) $832,000 each year is for energy regulation new text end 41.34 new text begin and planning unit staff. new text end 42.1 new text begin (c) $100,000 each year is from the renewable new text end 42.2 new text begin development account in the special revenue new text end 42.3 new text begin fund established in Minnesota Statutes, section new text end 42.4 new text begin 116C.779, subdivision 1, to administer the new text end 42.5 new text begin "Made in Minnesota" solar energy production new text end 42.6 new text begin incentive program in Minnesota Statutes, new text end 42.7 new text begin section 216C.417. Any remaining unspent new text end 42.8 new text begin funds cancel back to the renewable new text end 42.9 new text begin development account at the end of the new text end 42.10 new text begin biennium. new text end 42.11 new text begin (d) $500,000 each year is from the renewable new text end 42.12 new text begin development account in the special revenue new text end 42.13 new text begin fund established in Minnesota Statutes, section new text end 42.14 new text begin 116C.779, subdivision 1, for costs associated new text end 42.15 new text begin with any third-party expert evaluation of a new text end 42.16 new text begin proposal submitted in response to a request new text end 42.17 new text begin for proposal to the renewable development new text end 42.18 new text begin advisory group under Minnesota Statutes, new text end 42.19 new text begin section 116C.779, subdivision 1, paragraph new text end 42.20 new text begin (l). No portion of this appropriation may be new text end 42.21 new text begin expended or retained by the commissioner of new text end 42.22 new text begin commerce. Any funds appropriated under this new text end 42.23 new text begin paragraph that are unexpended at the end of a new text end 42.24 new text begin fiscal year cancel to the renewable new text end 42.25 new text begin development account. new text end 42.26 new text begin Subd. 8. new text end new text begin Insurance new text end new text begin 4,989,000 new text end new text begin 4,969,000 new text end 42.27 new text begin Appropriations by Fund new text end 42.28 new text begin General new text end new text begin 4,436,000 new text end new text begin 4,416,000 new text end 42.29 42.30 new text begin Workers' new text end new text begin Compensation new text end new text begin 553,000 new text end new text begin 553,000 new text end 42.31 new text begin (a) $642,000 each year is for health insurance new text end 42.32 new text begin rate review staffing. new text end 42.33 new text begin (b) $412,000 each year is for actuarial work new text end 42.34 new text begin to prepare for implementation of new text end 42.35 new text begin principle-based reserves. new text end 43.1 new text begin (c) $20,000 in fiscal year 2018 is for payment new text end 43.2 new text begin of two years of membership dues for new text end 43.3 new text begin Minnesota to the National Conference of new text end 43.4 new text begin Insurance Legislators. This is a onetime new text end 43.5 new text begin appropriation. new text end 43.6 Sec. 8. new text begin PUBLIC UTILITIES COMMISSION new text end new text begin $ new text end new text begin 7,465,000 new text end new text begin $ new text end new text begin new text end new text begin 7,465,000 new text end 43.7 new text begin $21,000 each year is for the purposes of new text end 43.8 new text begin Minnesota Statutes, section 237.045. new text end 43.9 Sec. 9. new text begin PUBLIC FACILITIES AUTHORITY new text end new text begin $ new text end new text begin 1,800,000 new text end new text begin $ new text end new text begin -0- new text end 43.10 new text begin (a) $300,000 in fiscal year 2018 is for a grant new text end 43.11 new text begin to the city of New Trier to replace water new text end 43.12 new text begin infrastructure under Hogan Avenue, including new text end 43.13 new text begin related road reconstruction, and to acquire land new text end 43.14 new text begin for predesign, design, and construction of a new text end 43.15 new text begin storm water pond that will be colocated with new text end 43.16 new text begin the pond of the new subdivision. This new text end 43.17 new text begin appropriation does not require a nonstate new text end 43.18 new text begin contribution. new text end 43.19 new text begin (b) $600,000 in fiscal year 2018 is for a grant new text end 43.20 new text begin to the Ramsey/Washington Recycling and new text end 43.21 new text begin Energy Board to design, construct, and equip new text end 43.22 new text begin capital improvements to the new text end 43.23 new text begin Ramsey/Washington Recycling and Energy new text end 43.24 new text begin Center in Newport. new text end 43.25 new text begin (c) $900,000 in fiscal year 2018 is for a grant new text end 43.26 new text begin to the Clear Lake-Clearwater Sewer Authority new text end 43.27 new text begin to remove and replace the existing wastewater new text end 43.28 new text begin treatment facility. This project is intended to new text end 43.29 new text begin prevent the discharge of phosphorus into the new text end 43.30 new text begin Mississippi River. This appropriation is not new text end 43.31 new text begin available until the commissioner of new text end 43.32 new text begin management and budget determines that at new text end 43.33 new text begin least $200,000 is committed to the project new text end 44.1 new text begin from nonstate sources and the authority has new text end 44.2 new text begin applied for at least two grants to offset the new text end 44.3 new text begin cost. An amount equal to any grant money new text end 44.4 new text begin received by the authority must be returned to new text end 44.5 new text begin the general fund. new text end 44.6ARTICLE 2 44.7LABOR AND INDUSTRY 44.8    Section 1. Minnesota Statutes 2016, section 175.45, is amended to read: 44.9175.45 COMPETENCY STANDARDS FOR DUAL TRAINING. 44.10    Subdivision 1. Duties; goal. The commissioner of labor and industry shall new text begin convene new text end 44.11 new text begin industry representatives, new text end identify new text begin occupational new text end competency standards for dual training new text begin , and new text end 44.12 new text begin provide technical assistance to develop dual-training programs new text end . The goal of dual training 44.13is to provide employees of an employer with training to acquire competencies that the 44.14employer requires. The new text begin competency new text end standards shall be identified for employment in 44.15occupations in advanced manufacturing, health care services, information technology, and 44.16agriculture. Competency standards are not rules and are exempt from the rulemaking 44.17provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do 44.18not apply. 44.19    Subd. 2. Definition; competency standards new text begin Definitions new text end . For purposes of this section, 44.20 new text begin the following terms have the meanings given them: new text end 44.21 new text begin (1) new text end "competency standards" means the specific knowledge and skills necessary for a 44.22particular occupation. new text begin ; and new text end 44.23 new text begin (2) "dual-training program" means an employment-based earn-as-you-learn program new text end 44.24 new text begin where the trainee is employed by a participating employer and receives structured on-the-job new text end 44.25 new text begin training and technical instruction in accordance with the competency standards. new text end 44.26    Subd. 3. Competency standards identification process. In identifying competency 44.27standards, the commissioner shall consult with the commissioner of the Office of Higher 44.28Education and the commissioner of employment and economic development and convene 44.29recognized industry experts, representative employers, higher education institutions, 44.30representatives of the disabled community, and representatives of labor to assist in identifying 44.31credible competency standards. Competency standards must be consistent with, to the extent 44.32available and practical, recognized international and national standards. 45.1    Subd. 4. Duties. The commissioner shall: 45.2(1) new text begin convene industry representatives to identify, develop, and implement dual-training new text end 45.3 new text begin programs; new text end new text begin new text end 45.4 new text begin (2) new text end identify competency standards for entry level new text begin entry-level new text end and higher skill levels; 45.5(2) new text begin (3) new text end verify the competency standards and skill levels and their transferability by subject 45.6matter expert representatives of each respective industry; 45.7(3) new text begin (4) new text end develop models for Minnesota educational institutions to engage in providing 45.8education and training to meet the competency standards established; 45.9(4) new text begin (5) new text end encourage participation by employers and labor in the new text begin competency new text end standard 45.10identification process for occupations in their industry; and 45.11(5) new text begin (6) new text end align dual training competency standards new text begin dual-training programs new text end with other 45.12workforce initiatives. new text begin ; and new text end 45.13 new text begin (7) provide technical assistance to develop dual-training programs. new text end 45.14    Subd. 5. Notification. The commissioner must communicate identified competency 45.15standards to the commissioner of the Office of Higher Education for the purpose of the dual 45.16training new text begin dual-training new text end competency grant program under section 136A.246. The commissioner 45.17of labor and industry shall maintain the competency standards on the department's Web 45.18site. 45.19    Sec. 2. new text begin [175.46] YOUTH SKILLS TRAINING PROGRAM. new text end 45.20     new text begin Subdivision 1. new text end new text begin Program established; grants authorized. new text end new text begin The commissioner shall new text end 45.21 new text begin approve youth skills training programs established for the purpose of providing work-based new text end 45.22 new text begin skills training for student learners ages 16 and older. The commissioner shall award grants new text end 45.23 new text begin to local partnerships for the implementation and coordination of local youth skills training new text end 45.24 new text begin programs as provided in this section. new text end 45.25     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the terms in this subdivision have new text end 45.26 new text begin the meanings given. new text end 45.27 new text begin (b) "School district" means a school district or charter school. new text end 45.28 new text begin (c) "Local partnership" means a school district, nonpublic school, intermediate school new text end 45.29 new text begin district, or postsecondary institution, in partnership with other school districts, nonpublic new text end 45.30 new text begin schools, intermediate school districts, postsecondary institutions, workforce development new text end 45.31 new text begin authorities, economic development authorities, nonprofit organizations, labor unions, or new text end 46.1 new text begin individuals who have an agreement with one or more local employers to be responsible for new text end 46.2 new text begin implementing and coordinating a local youth skills training program. new text end new text begin new text end 46.3 new text begin (d) "Student learner" means a student who is both enrolled in a course of study at a public new text end 46.4 new text begin or nonpublic school to obtain related instruction for academic credit and is employed under new text end 46.5 new text begin a written agreement to obtain on-the-job skills training under a youth skills training program new text end 46.6 new text begin approved under this section. new text end 46.7 new text begin (e) "Commissioner" means the commissioner of labor and industry. new text end 46.8     new text begin Subd. 3. new text end new text begin Duties. new text end new text begin (a) The commissioner shall: new text end 46.9 new text begin (1) approve youth skills training programs in high-growth, high-demand occupations new text end 46.10 new text begin that provide: new text end 46.11 new text begin (i) that the work of the student learner in the occupations declared particularly hazardous new text end 46.12 new text begin shall be incidental to the training; new text end 46.13 new text begin (ii) that the work shall be intermittent and for short periods of time, and under the direct new text end 46.14 new text begin and close supervision of a qualified and experienced person; new text end 46.15 new text begin (iii) that safety instruction shall be provided to the student learner and may be given by new text end 46.16 new text begin the school and correlated by the employer with on-the-job training; new text end 46.17 new text begin (iv) a schedule of organized and progressive work processes to be performed on the job; new text end 46.18 new text begin (v) a schedule of wage rates in compliance with section 177.24; and new text end 46.19 new text begin (vi) whether the student learner will obtain secondary school academic credit, new text end 46.20 new text begin postsecondary credit, or both, for the training program; new text end 46.21 new text begin (2) approve occupations and maintain a list of approved occupations for programs under new text end 46.22 new text begin this section; new text end 46.23 new text begin (3) issue requests for proposals for grants; new text end 46.24 new text begin (4) work with individuals representing industry and labor to develop new youth skills new text end 46.25 new text begin training programs; new text end 46.26 new text begin (5) develop model program guides; new text end 46.27 new text begin (6) monitor youth skills training programs; new text end 46.28 new text begin (7) provide technical assistance to local partnership grantees; new text end 46.29 new text begin (8) work with providers to identify paths for receiving postsecondary credit for new text end 46.30 new text begin participation in the youth skills training program; and new text end 47.1 new text begin (9) approve other activities as necessary to implement the program. new text end new text begin new text end 47.2 new text begin (b) The commissioner shall collaborate with stakeholders, including, but not limited to, new text end 47.3 new text begin representatives of secondary school institutions, career and technical education instructors, new text end 47.4 new text begin postsecondary institutions, businesses, and labor, in developing youth skills training new text end 47.5 new text begin programs, and identifying and approving occupations and competencies for youth skills new text end 47.6 new text begin training programs. new text end 47.7     new text begin Subd. 4. new text end new text begin Training agreement. new text end new text begin Each student learner shall sign a written training agreement new text end 47.8 new text begin on a form prescribed by the commissioner. Each agreement shall contain the name of the new text end 47.9 new text begin student learner, and be signed by the employer, the school coordinator or administrator, and new text end 47.10 new text begin the student learner, or if the student learner is a minor, by the student's parent or legal new text end 47.11 new text begin guardian. Copies of each agreement shall be kept on file by both the school and the employer. new text end 47.12     new text begin Subd. 5. new text end new text begin Program approval. new text end new text begin The commissioner may grant exemptions from the new text end 47.13 new text begin provisions of chapter 181A for student learners participating in youth skills training programs new text end 47.14 new text begin approved by the commissioner under this section. The approval of a youth skills training new text end 47.15 new text begin program will be reviewed annually. The approval of a youth skills training program may new text end 47.16 new text begin be revoked at any time if the commissioner finds that: new text end 47.17 new text begin (1) all provisions of subdivision 3 have not been met in the previous year; or new text end 47.18 new text begin (2) reasonable precautions have not been observed for the safety of minors. new text end 47.19 new text begin The commissioner shall maintain and annually update a list of occupations and tasks suitable new text end 47.20 new text begin for student learners in compliance with federal law. new text end 47.21     new text begin Subd. 6. new text end new text begin Interactions with education finance. new text end new text begin (a) For the purpose of computing state new text end 47.22 new text begin aids for the enrolling school district, the hours a student learner participates in a youth skills new text end 47.23 new text begin training program under this section must be counted in the student's hours of average daily new text end 47.24 new text begin membership under section 126C.05. new text end 47.25 new text begin (b) Educational expenses for a participating student learner must be included in the new text end 47.26 new text begin enrolling district's career and technical revenue as provided under section 124D.4531. new text end 47.27     new text begin Subd. 7. new text end new text begin Academic credit. new text end new text begin A school district may grant academic credit to student learners new text end 47.28 new text begin participating in youth skills training programs under this section in accordance with local new text end 47.29 new text begin requirements. new text end 47.30     new text begin Subd. 8. new text end new text begin Postsecondary credit. new text end new text begin A postsecondary institution may award postsecondary new text end 47.31 new text begin credit to a student learner who successfully completes a youth skills training program. new text end 48.1     new text begin Subd. 9. new text end new text begin Work-based learning program. new text end new text begin A youth skills training program shall qualify new text end 48.2 new text begin as a work-based learning program if it meets requirements for a career and technical education new text end 48.3 new text begin program and is supervised by a qualified teacher with appropriate licensure for a work-based new text end 48.4 new text begin learning teacher-coordinator. new text end 48.5     new text begin Subd. 10. new text end new text begin School coordinator. new text end new text begin Unless otherwise required for a work-based learning new text end 48.6 new text begin program, a youth skills training program may be supervised by a qualified teacher or by an new text end 48.7 new text begin administrator as determined by the school district. new text end 48.8     new text begin Subd. 11. new text end new text begin Other apprenticeship programs. new text end new text begin (a) This section shall not affect programs new text end 48.9 new text begin under section 124D.47. new text end 48.10 new text begin (b) A registered apprenticeship program governed by chapter 178 may grant credit new text end 48.11 new text begin toward the completion of a registered apprenticeship for the successful completion of a new text end 48.12 new text begin youth skills training program under this section. new text end 48.13     new text begin Subd. 12. new text end new text begin Grant applications. new text end new text begin (a) Applications for grants must be made to the new text end 48.14 new text begin commissioner on a form provided by the commissioner. new text end 48.15 new text begin (b) A local partnership may apply for a grant and shall include in its grant application: new text end 48.16 new text begin (1) the identity of each school district, public agency, nonprofit organization, or individual new text end 48.17 new text begin who is a participant in the local partnership; new text end 48.18 new text begin (2) the identity of each employer who is a participant in the local partnership and the new text end 48.19 new text begin amount of matching funds provided by each employer, if any; new text end 48.20 new text begin (3) a plan to accomplish the implementation and coordination of activities specified in new text end 48.21 new text begin this subdivision; and new text end 48.22 new text begin (4) the identity of a fiscal agent responsible for receiving, managing, and accounting for new text end 48.23 new text begin the grant. new text end 48.24     new text begin Subd. 13. new text end new text begin Grant awards. new text end new text begin (a) A local partnership awarded a grant under this section new text end 48.25 new text begin must use the grant award for any of the following implementation and coordination activities: new text end 48.26 new text begin (1) recruiting additional employers to provide on-the-job training and supervision for new text end 48.27 new text begin student learners and providing technical assistance to those employers; new text end 48.28 new text begin (2) recruiting students to participate in the local youth skills training program, monitoring new text end 48.29 new text begin the progress of student learners participating in the program, and monitoring program new text end 48.30 new text begin outcomes; new text end 48.31 new text begin (3) coordinating youth skills training activities within participating school districts and new text end 48.32 new text begin among participating school districts, postsecondary institutions, and employers; new text end 49.1 new text begin (4) coordinating academic, vocational and occupational learning, school-based and new text end 49.2 new text begin work-based learning, and secondary and postsecondary education for participants in the new text end 49.3 new text begin local youth skills training program; new text end 49.4 new text begin (5) coordinating transportation for student learners participating in the local youth skills new text end 49.5 new text begin training program; and new text end 49.6 new text begin (6) any other implementation or coordination activity that the commissioner may direct new text end 49.7 new text begin or permit the local partnership to perform. new text end 49.8 new text begin (b) Grant awards may not be used to directly or indirectly pay the wages of a student new text end 49.9 new text begin learner. new text end 49.10     new text begin Subd. 14. new text end new text begin Outcomes. new text end new text begin The following outcomes are expected of a local youth skills training new text end 49.11 new text begin program: new text end new text begin new text end 49.12 new text begin (1) at least 80 percent of the student learners who participate in a youth skills training new text end 49.13 new text begin program receive a high school diploma when eligible upon completion of the training new text end 49.14 new text begin program; and new text end 49.15 new text begin (2) at least 60 percent of the student learners who participate in a youth skills training new text end 49.16 new text begin program receive a recognized credential upon completion of the training program. new text end 49.17     new text begin Subd. 15. new text end new text begin Reporting. new text end new text begin (a) By February 1, 2019, and annually thereafter, the commissioner new text end 49.18 new text begin shall report on the activity and outcomes of the program for the preceding fiscal year to the new text end 49.19 new text begin chairs of the legislative committees with jurisdiction over jobs and economic growth policy new text end 49.20 new text begin and finance. At a minimum, the report must include: new text end new text begin new text end new text begin new text end 49.21 new text begin (1) the number of student learners who commenced the training program and the number new text end 49.22 new text begin who completed the training program; and new text end new text begin new text end 49.23 new text begin (2) recommendations, if any, for changes to the program. new text end 49.24 new text begin (b) The initial report shall include a detailed description of the differences between the new text end 49.25 new text begin state and federal systems in child safety standards. new text end 49.26    Sec. 3. Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read: 49.27    Subd. 7. License fees and license renewal fees. (a) The license fee for each license is 49.28the base license fee plus any applicable board fee, continuing education fee, and contractor 49.29recovery fund fee and additional assessment, as set forth in this subdivision. 50.1(b) For purposes of this section, "license duration" means the number of years for which 50.2the license is issued except that if the initial license is not issued for a whole number of 50.3years, the license duration shall be rounded up to the next whole number. 50.4(c) The base license fee shall depend on whether the license is classified as an entry 50.5level, master, journeyman, or business license, and on the license duration. The base license 50.6fee shall be: 50.7 License Classification License Duration 50.8 1 year 2 years 50.9 Entry level $10 $20 50.10 Journeyworker $20 $40 50.11 Master $40 $80 50.12 Business $180 50.13(d) If there is a continuing education requirement for renewal of the license, then a 50.14continuing education fee must be included in the renewal license fee. The continuing 50.15education fee for all license classifications shall be: $10 if the renewal license duration is 50.16one year; and $20 if the renewal license duration is two years. 50.17(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, 50.18then a board fee must be included in the license fee and the renewal license fee. The board 50.19fee for all license classifications shall be: $4 if the license duration is one year; and $8 if 50.20the license duration is two years. 50.21(f) If the application is for the renewal of a license issued under sections 326B.802 to 50.22326B.885 , then the contractor recovery fund fee required under section 326B.89, subdivision 50.233, and any additional assessment required under section 326B.89, subdivision 16, must be 50.24included in the license renewal fee. 50.25(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 50.26July 1, 2015 new text begin 2017 new text end , through June 30, 2017 new text begin September 30, 2021 new text end , the following fees apply: 50.27 License Classification License Duration 50.28 1 year 2 years 50.29 Entry level $10 $20 50.30 50.31 Journeyworker $15 $35 new text begin $30 new text end 50.32 50.33 Master $30 $75 new text begin $60 new text end 50.34 50.35 Business $160 new text begin $120 new text end 51.1If there is a continuing education requirement for renewal of the license, then a continuing 51.2education fee must be included in the renewal license fee. The continuing education fee for 51.3all license classifications shall be $5. 51.4    Sec. 4. new text begin [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO new text end 51.5 new text begin CODE. new text end 51.6     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin For purposes of this section, "place of public accommodation" new text end 51.7 new text begin means a publicly or privately owned facility that is designed for occupancy by 200 or more new text end 51.8 new text begin people and includes a sports or entertainment arena, stadium, theater, community or new text end 51.9 new text begin convention hall, special event center, indoor amusement facility or water park, or swimming new text end 51.10 new text begin pool. new text end 51.11     new text begin Subd. 2. new text end new text begin Application. new text end new text begin Construction, additions, and alterations to a place of public new text end 51.12 new text begin accommodation must be designed and constructed to comply with the State Building Code. new text end 51.13     new text begin Subd. 3. new text end new text begin Enforcement. new text end new text begin In a municipality that has not adopted the code by ordinance new text end 51.14 new text begin under section 326B.121, subdivision 2, the commissioner shall enforce this section in new text end 51.15 new text begin accordance with section 326B.107, subdivision 1. new text end 51.16     new text begin Subd. 4. new text end new text begin Fire protection systems. new text end new text begin If fire protection systems regulated by chapter 299M new text end 51.17 new text begin are required in a place of public accommodation, then those plan reviews and inspections new text end 51.18 new text begin shall be conducted by the state fire marshal. new text end 51.19    Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read: 51.20    Subdivision 1. Building permits. (a) Fees for building permits submitted as required 51.21in section 326B.106 new text begin 326B.107 new text end include: 51.22(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; 51.23and 51.24(2) the surcharge required by section 326B.148. 51.25(b) The total valuation and fee schedule is: 51.26(1) $1 to $500, $29.50 new text begin $21 new text end ; 51.27(2) $501 to $2,000, $28 new text begin $21 new text end for the first $500 plus $3.70 new text begin $2.75 new text end for each additional $100 51.28or fraction thereof, to and including $2,000; 51.29(3) $2,001 to $25,000, $83.50 new text begin $62.25 new text end for the first $2,000 plus $16.55 new text begin $12.50 new text end for each 51.30additional $1,000 or fraction thereof, to and including $25,000; 52.1(4) $25,001 to $50,000, $464.15 new text begin $349.75 new text end for the first $25,000 plus $12 new text begin $9 new text end for each 52.2additional $1,000 or fraction thereof, to and including $50,000; 52.3(5) $50,001 to $100,000, $764.15 new text begin $574.75 new text end for the first $50,000 plus $8.45 new text begin $6.25 new text end for 52.4each additional $1,000 or fraction thereof, to and including $100,000; 52.5(6) $100,001 to $500,000, $1,186.65 new text begin $887.25 new text end for the first $100,000 plus $6.75 new text begin $5 new text end for 52.6each additional $1,000 or fraction thereof, to and including $500,000; 52.7(7) $500,001 to $1,000,000, $3,886.65 new text begin $2,887.25 new text end for the first $500,000 plus $5.50 new text begin $4.25 new text end 52.8for each additional $1,000 or fraction thereof, to and including $1,000,000; and 52.9(8) $1,000,001 and up, $6,636.65 new text begin $5,012.25 new text end for the first $1,000,000 plus $4.50 new text begin $2.75 new text end 52.10for each additional $1,000 or fraction thereof. 52.11(c) Other inspections and fees are: 52.12(1) inspections outside of normal business hours (minimum charge two hours), $63.25 52.13per hour; 52.14(2) reinspection fees, $63.25 per hour; 52.15(3) inspections for which no fee is specifically indicated (minimum charge one-half 52.16hour), $63.25 per hour; and 52.17(4) additional plan review required by changes, additions, or revisions to approved plans 52.18(minimum charge one-half hour), $63.25 per hour. 52.19(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, 52.20then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, 52.21hourly wages, and fringe benefits of the employees involved. 52.22 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective new text end 52.23 new text begin July 1, 2017, and the amendments to it expire October 1, 2021. new text end 52.24    Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 52.25read: 52.26     new text begin Subd. 16. new text end new text begin Wind electric systems. new text end new text begin (a) The inspection fee for the installation of a wind new text end 52.27 new text begin turbine is: new text end 52.28 new text begin (1) zero watts to and including 100,000 watts, $80; new text end 52.29 new text begin (2) 100,001 watts to and including 500,000 watts, $105; new text end 52.30 new text begin (3) 500,001 watts to and including 1,000,000 watts, $120; new text end 53.1 new text begin (4) 1,000,001 watts to and including 1,500,000 watts, $125; new text end 53.2 new text begin (5) 1,500,001 watts to and including 2,000,000 watts, $130; new text end 53.3 new text begin (6) 2,000,001 watts to and including 3,000,000 watts, $145; and new text end 53.4 new text begin (7) 3,000,001 watts and larger, $160. new text end 53.5 new text begin (b) For the purpose of paragraph (a), the watt rating is the total estimated alternating new text end 53.6 new text begin current energy output of one individual wind turbine. new text end 53.7    Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 53.8read: 53.9     new text begin Subd. 17. new text end new text begin Solar photovoltaic systems. new text end new text begin (a) The inspection fee for the installation of a new text end 53.10 new text begin solar photovoltaic system is: new text end 53.11 new text begin (1) zero watts to and including 5,000 watts, $60; new text end 53.12 new text begin (2) 5,001 watts to and including 10,000 watts, $100; new text end 53.13 new text begin (3) 10,001 watts to and including 20,000 watts, $150; new text end 53.14 new text begin (4) 20,001 watts to and including 30,000 watts, $200; new text end 53.15 new text begin (5) 30,001 watts to and including 40,000 watts, $250; new text end 53.16 new text begin (6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional new text end 53.17 new text begin 10,000 watts over 40,000 watts; new text end 53.18 new text begin (7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts new text end 53.19 new text begin over 1,000,000 watts; and new text end 53.20 new text begin (8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over new text end 53.21 new text begin 5,000,000 watts. new text end 53.22 new text begin (b) For the purpose of paragraph (a), the watt rating is the total estimated alternating new text end 53.23 new text begin current energy output of the solar photovoltaic system. new text end 53.24    Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read: 53.25    Subd. 2. Powers; duties; administrative support. (a) The board shall have the power 53.26to: 53.27    (1) elect its chair, vice-chair, and secretary; 54.1    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 54.2and containing such other provisions as may be useful and necessary for the efficient conduct 54.3of the business of the board; 54.4    (3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code 54.5amendments thereto. The Plumbing Code shall include the minimum standards described 54.6in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the 54.7Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in 54.8subdivision 6, paragraphs (b), (c), and (d); 54.9    (4) review requests for final interpretations and issue final interpretations as provided 54.10in section 326B.127, subdivision 5; 54.11    (5) adopt rules that regulate the licensure, certification, or registration of plumbing 54.12contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers, 54.13restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and 54.14testers, water conditioning contractors, and water conditioning installers, and other persons 54.15engaged in the design, installation, and alteration of plumbing systems or engaged in or 54.16working at the business of water conditioning installation or service, or engaged in or 54.17working at the business of medical gas system installation, maintenance, or repair, except 54.18for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall 54.19adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) 54.20and (f); 54.21(6) adopt rules that regulate continuing education for individuals licensed as master 54.22plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers, 54.23 new text begin registered unlicensed individuals, new text end water conditioning contractors new text begin masters new text end , and water 54.24conditioning installers new text begin journeymen new text end , and for individuals certified under sections 326B.437 54.25and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in 54.26subdivision 6, paragraphs (e) and (f); 54.27    (7) refer complaints or other communications to the commissioner, whether oral or 54.28written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 54.29order that the commissioner has the authority to enforce pertaining to code compliance, 54.30licensure, or an offering to perform or performance of unlicensed plumbing services; 54.31    (8) approve per diem and expenses deemed necessary for its members as provided in 54.32subdivision 3; 54.33    (9) approve license reciprocity agreements; 55.1    (10) select from its members individuals to serve on any other state advisory council, 55.2board, or committee; and 55.3    (11) recommend the fees for licenses, registrations, and certifications. 55.4Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 55.5Board of High Pressure Piping Systems, the commissioner of labor and industry shall 55.6administer and enforce the provisions of this chapter and any rules promulgated pursuant 55.7thereto. 55.8    (b) The board shall comply with section 15.0597, subdivisions 2 and 4. 55.9    (c) The commissioner shall coordinate the board's rulemaking and recommendations 55.10with the recommendations and rulemaking conducted by the other boards created pursuant 55.11to this chapter. The commissioner shall provide staff support to the board. The support 55.12includes professional, legal, technical, and clerical staff necessary to perform rulemaking 55.13and other duties assigned to the board. The commissioner of labor and industry shall supply 55.14necessary office space and supplies to assist the board in its duties. 55.15    Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read: 55.16    Subd. 3. Water conditioning installation. "Water conditioning installation" means the 55.17installation of appliances, appurtenances, and fixtures designed to treat water so as to alter, 55.18modify, add or remove mineral, chemical or bacterial content, said installation to be made 55.19in a water distribution system serving new text begin : new text end 55.20     new text begin (1) new text end a single family residential unit, which has been initially established by a licensed 55.21plumber, and does not involve a direct connection without an air gap to a soil or waste pipe. new text begin ; new text end 55.22 new text begin or new text end 55.23 new text begin (2) a multifamily or nonresidential building, where the plumbing installation has been new text end 55.24 new text begin initially established by a licensed plumber. Isolation valves shall be required for all water new text end 55.25 new text begin conditioning installations and shall be readily accessible. Water conditioning installation new text end 55.26 new text begin does not include: new text end 55.27 new text begin (i) a valve that allows isolation of the water conditioning installation; new text end 55.28 new text begin (ii) piping greater than two-inch nominal pipe size; or new text end new text begin new text end 55.29 new text begin (iii) a direct connection without an air gap to a soil or waste pipe. new text end new text begin new text end 56.1    Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 56.2to read: 56.3     new text begin Subd. 5. new text end new text begin Direct supervision. new text end new text begin "Direct supervision," with respect to direct supervision of new text end 56.4 new text begin a registered unlicensed individual, means that: new text end 56.5 new text begin (1) at all times while the registered unlicensed individual is performing water conditioning new text end 56.6 new text begin installation work, a direct supervisor is present at the location where the registered unlicensed new text end 56.7 new text begin individual is working; new text end 56.8 new text begin (2) the direct supervisor is physically present and immediately available to the registered new text end 56.9 new text begin unlicensed individual at all times for assistance and direction; new text end 56.10 new text begin (3) any form of electronic supervision does not meet the requirement of being physically new text end 56.11 new text begin present; new text end 56.12 new text begin (4) the direct supervisor reviews the water conditioning installation work performed by new text end 56.13 new text begin the registered unlicensed individual before the water conditioning installation is operated; new text end 56.14 new text begin and new text end 56.15 new text begin (5) the direct supervisor determines that all water conditioning installation work new text end 56.16 new text begin performed by the registered unlicensed individual is performed in compliance with sections new text end 56.17 new text begin 326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, new text end 56.18 new text begin and all orders issued under section 326B.082. new text end 56.19    Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 56.20to read: 56.21     new text begin Subd. 6. new text end new text begin Direct supervisor. new text end new text begin "Direct supervisor" means a master plumber, journeyman new text end 56.22 new text begin plumber, restricted master plumber, restricted journeyman plumber, water conditioning new text end 56.23 new text begin master, or water conditioning journeyman responsible for providing direct supervision of new text end 56.24 new text begin a registered unlicensed individual. new text end 56.25    Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read: 56.26    Subd. 2. Qualifications for licensing. (a) A water conditioning master license shall be 56.27issued only to an individual who has demonstrated skill in planning, superintending, and 56.28servicing new text begin , and installing new text end water conditioning installations, and has successfully passed the 56.29examination for water conditioning masters. A water conditioning journeyman license shall 56.30only be issued to an individual other than a water conditioning master who has demonstrated 56.31practical knowledge of water conditioning installation, and has successfully passed the 56.32examination for water conditioning journeymen. A water conditioning journeyman must 57.1successfully pass the examination for water conditioning masters before being licensed as 57.2a water conditioning master. 57.3(b) Each water conditioning contractor must designate a responsible licensed master 57.4plumber or a responsible licensed water conditioning master, who shall be responsible for 57.5the performance of all water conditioning installation and servicing in accordance with the 57.6requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 57.7326B.59 , the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 57.8the water conditioning contractor is an individual or sole proprietorship, the responsible 57.9licensed master must be the individual, proprietor, or managing employee. If the water 57.10conditioning contractor is a partnership, the responsible licensed master must be a general 57.11partner or managing employee. If the water conditioning contractor is a limited liability 57.12company, the responsible licensed master must be a chief manager or managing employee. 57.13If the water conditioning contractor is a corporation, the responsible licensed master must 57.14be an officer or managing employee. If the responsible licensed master is a managing 57.15employee, the responsible licensed master must be actively engaged in performing water 57.16conditioning work on behalf of the water conditioning contractor and cannot be employed 57.17in any capacity as a water conditioning master or water conditioning journeyman for any 57.18other water conditioning contractor. An individual must not be the responsible licensed 57.19master for more than one water conditioning contractor. 57.20(c) All applications and renewals for water conditioning contractor licenses shall include 57.21a verified statement that the applicant or licensee has complied with paragraph (b). 57.22(d) Each application and renewal for a water conditioning master license, water 57.23conditioning journeyman license, or a water conditioning contractor license shall be 57.24accompanied by all fees required by section 326B.092. 57.25    Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read: 57.26    Subd. 4. Plumber's apprentices. (a) A plumber's apprentice who is registered under 57.27section 326B.47 is authorized to assist in water conditioning installation and water 57.28conditioning servicing only while under the direct supervision of a master plumber, 57.29journeyman plumber, new text begin restricted master plumber, restricted journeyman plumber, new text end water 57.30conditioning master, or water conditioning journeyman. The master or journeyman is 57.31responsible for ensuring that all water conditioning work performed by the plumber's 57.32apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 57.33326B.59 . The supervising master or journeyman must be licensed and must be employed 57.34by the same employer as the plumber's apprentice. Licensed individuals shall not permit 58.1plumber's apprentices to perform water conditioning work except under the direct supervision 58.2of an individual actually licensed to perform such work. Plumber's apprentices shall not 58.3supervise the performance of plumbing work or make assignments of plumbing work to 58.4unlicensed individuals. 58.5(b) Water conditioning contractors employing plumber's apprentices to perform water 58.6conditioning work shall maintain records establishing compliance with this subdivision that 58.7shall identify all plumber's apprentices performing water conditioning work, and shall permit 58.8the department to examine and copy all such records. 58.9    Sec. 14. new text begin [326B.555] REGISTERED UNLICENSED INDIVIDUALS. new text end 58.10     new text begin Subdivision 1. new text end new text begin Registration; supervision; records. new text end new text begin (a) All unlicensed individuals new text end 58.11 new text begin engaged in water conditioning installation must be registered under subdivision 3. new text end 58.12 new text begin (b) A registered unlicensed individual is authorized to assist in water conditioning new text end 58.13 new text begin installations in a single family residential unit only when a master plumber, journeyman new text end 58.14 new text begin plumber, restricted master plumber, restricted journeyman plumber, water conditioning new text end 58.15 new text begin master, or water conditioning journeyman is available and responsible for ensuring that all new text end 58.16 new text begin water conditioning installation work performed by the unlicensed individual complies with new text end 58.17 new text begin the applicable provisions of the plumbing and water conditioning codes and rules adopted new text end 58.18 new text begin pursuant to such codes. For all other water conditioning installation work, the registered new text end 58.19 new text begin unlicensed individual must be under the direct supervision of a responsible licensed water new text end 58.20 new text begin conditioning master. new text end 58.21 new text begin (c) Water conditioning contractors employing registered unlicensed individuals to perform new text end 58.22 new text begin water conditioning installation work shall maintain records establishing compliance with new text end 58.23 new text begin this subdivision that shall identify all unlicensed individuals performing water conditioning new text end 58.24 new text begin installations, and shall permit the department to examine and copy all such records. new text end 58.25     new text begin Subd. 2. new text end new text begin Journeyman exam. new text end new text begin A registered unlicensed individual who has completed new text end 58.26 new text begin 875 hours of practical water conditioning installation, servicing, and training is eligible to new text end 58.27 new text begin take the water conditioning journeyman examination. Up to 100 hours of practical water new text end 58.28 new text begin conditioning installation and servicing experience prior to becoming a registered unlicensed new text end 58.29 new text begin individual may be applied to the practical experience requirement. However, none of this new text end 58.30 new text begin practical experience may be applied if the unlicensed individual did not have any practical new text end 58.31 new text begin experience in the 12-month period immediately prior to becoming a registered unlicensed new text end 58.32 new text begin individual. new text end 59.1     new text begin Subd. 3. new text end new text begin Registration, renewals, and fees. new text end new text begin An unlicensed individual may register by new text end 59.2 new text begin completing and submitting to the commissioner an application form provided by the new text end 59.3 new text begin commissioner, with all fees required by section 326B.58. A completed application form new text end 59.4 new text begin must state the date, the individual's age, schooling, previous experience and employer, and new text end 59.5 new text begin other information required by the commissioner. The plumbing board may prescribe rules, new text end 59.6 new text begin not inconsistent with this section, for the registration of unlicensed individuals. Applications new text end 59.7 new text begin for initial registration may be submitted at any time. Registration must be renewed annually new text end 59.8 new text begin and shall be for the period from July 1 of each year to June 30 of the following year. new text end 59.9    Sec. 15. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read: 59.10    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have 59.11the meanings given them. 59.12    (b) "Gross annual receipts" means the total amount derived from residential contracting 59.13or residential remodeling activities, regardless of where the activities are performed, and 59.14must not be reduced by costs of goods sold, expenses, losses, or any other amount. 59.15    (c) "Licensee" means a person licensed as a residential contractor or residential remodeler. 59.16    (d) "Residential real estate" means a new or existing building constructed for habitation 59.17by one to four families, and includes detached garages new text begin intended for storage of vehicles new text end 59.18 new text begin associated with the residential real estate new text end . 59.19    (e) "Fund" means the contractor recovery fund. 59.20(f) "Owner" when used in connection with real property, means a person who has any 59.21legal or equitable interest in real property and includes a condominium or townhome 59.22association that owns common property located in a condominium building or townhome 59.23building or an associated detached garage. Owner does not include any real estate developer 59.24or any owner using, or intending to use, the property for a business purpose and not as 59.25owner-occupied residential real estate. 59.26    Sec. 16. Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read: 59.27    Subd. 5. Payment limitations. The commissioner shall not pay compensation from the 59.28fund to an owner or a lessee in an amount greater than $75,000 per licensee. The 59.29commissioner shall not pay compensation from the fund to owners and lessees in an amount 59.30that totals more than $150,000 new text begin $300,000 new text end per licensee. The commissioner shall only pay 59.31compensation from the fund for a final judgment that is based on a contract directly between 60.1the licensee and the homeowner or lessee that was entered into prior to the cause of action 60.2and that requires licensure as a residential building contractor or residential remodeler. 60.3    Sec. 17. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is 60.4amended to read: 60.5 Subd. 2.Workers' Compensation 15,226,000 17,782,000 60.6This appropriation is from the workers' 60.7compensation fund. 60.8$4,000,000 in fiscal year 2016 and $6,000,000 60.9in fiscal year 2017 are for workers' 60.10compensation system upgrades new text begin and are new text end 60.11 new text begin available through June 30, 2021 new text end . The base 60.12appropriation for this purpose is $3,000,000 60.13in fiscal year 2018 and $3,000,000 in fiscal 60.14year 2019. The base appropriation for fiscal 60.15year 2020 and beyond is zero. 60.16This appropriation includes funds for 60.17information technology project services and 60.18support subject to the provisions of Minnesota 60.19Statutes, section 16E.0466. Any ongoing 60.20information technology costs will be 60.21incorporated into the service level agreement 60.22and will be paid to the Office of MN.IT 60.23Services by the commissioner of labor and 60.24industry under the rates and mechanism 60.25specified in that agreement. 60.26    Sec. 18. Laws 2017, chapter 68, article 1, section 1, is amended to read: 60.27    Section 1. Minnesota Statutes 2016, section 181A.04, subdivision 6, is amended to read: 60.28    Subd. 6. Time of day, high school students. A high school student must not be permitted 60.29to work after 11:00 p.m. on an evening before a school day or before 5:00 a.m. on a school 60.30day, except: 60.31(1) as permitted by section 181A.07, subdivisions 1, 2, 3, and 4; or 61.1(2) for new text begin this subdivision does not apply to new text end a high school student age 18 or older, if new text begin unless new text end 61.2the student provides a written request new text begin for the hours restrictions new text end to the employer to work 61.3during the restricted hours. new text begin at least two weeks before any restricted hours begin; or new text end 61.4 new text begin (3) new text end if a high school student under the age of 18 has supplied the employer with a note 61.5signed by the parent or guardian of the student, the student may be permitted to work until 61.611:30 p.m. on the evening before a school day and beginning at 4:30 a.m. on a school day. 61.7For the purpose of this subdivision, a high school student does not include a student 61.8enrolled in an alternative education program approved by the commissioner of education 61.9or an area learning center, including area learning centers under sections 123A.05 to 123A.08 61.10or according to section 122A.163. 61.11    Sec. 19. new text begin REPEALER. new text end 61.12 new text begin Minnesota Statutes 2016, section 326B.89, subdivision 14, new text end new text begin is repealed. new text end 61.13ARTICLE 3 61.14WORKERS' COMPENSATION ADVISORY COUNCIL; DEPARTMENT 61.15PROPOSALS 61.16    Section 1. Minnesota Statutes 2016, section 176.135, is amended by adding a subdivision 61.17to read: 61.18     new text begin Subd. 9. new text end new text begin Designated contact person and required training related to submission new text end 61.19 new text begin and payment of medical bills. new text end new text begin (a) For purposes of this subdivision: new text end 61.20 new text begin (1) "clearinghouse" means a health care clearinghouse as defined in section 62J.51, new text end 61.21 new text begin subdivision 11a, that receives or transmits workers' compensation electronic transactions new text end 61.22 new text begin as described in section 62J.536; new text end 61.23 new text begin (2) "department" means the Department of Labor and Industry; new text end 61.24 new text begin (3) "hospital" means a hospital licensed in this state; new text end 61.25 new text begin (4) "payer" means: new text end 61.26 new text begin (i) a workers' compensation insurer; new text end 61.27 new text begin (ii) an employer, or group of employers, authorized to self-insure for workers' new text end 61.28 new text begin compensation liability; and new text end 61.29 new text begin (iii) a third-party administrator licensed by the Department of Commerce under section new text end 61.30 new text begin 60A.23, subdivision 8, to pay or review workers' compensation medical bills under this new text end 61.31 new text begin chapter; and new text end 62.1 new text begin (5) "submission or payment of medical bills" includes the submission, transmission, new text end 62.2 new text begin receipt, acceptance, response, adjustment, and payment of medical bills under this chapter. new text end 62.3 new text begin (b) Effective November 1, 2017, each payer, hospital, and clearinghouse must provide new text end 62.4 new text begin the department with the name and contact information of a designated employee to answer new text end 62.5 new text begin inquiries related to the submission or payment of medical bills. Payers, hospitals, and new text end 62.6 new text begin clearinghouses must provide the department with the name of a new designated employee new text end 62.7 new text begin within 14 days after the previously designated employee is no longer employed or becomes new text end 62.8 new text begin unavailable for more than 30 days. The name and contact information of the designated new text end 62.9 new text begin employee must be provided on forms and at intervals prescribed by the department. The new text end 62.10 new text begin department must post a directory of the designated employees on the department's Web site. new text end 62.11 new text begin (c) The designated employee under paragraph (b) must: new text end 62.12 new text begin (1) complete training, provided by the department, about submission or payment of new text end 62.13 new text begin medical bills; and new text end 62.14 new text begin (2) respond within 30 days to written department inquiries related to submission or new text end 62.15 new text begin payment of medical bills. new text end 62.16 new text begin The training requirement in clause (1) does not apply to a payer that has not received any new text end 62.17 new text begin workers' compensation medical bills in the 12 months before the training becomes available. new text end 62.18 new text begin (d) The commissioner may assess penalties, payable to the assigned risk safety account, new text end 62.19 new text begin against payers, hospitals, and clearinghouses for violation of this subdivision as provided new text end 62.20 new text begin in clauses (1) to (3): new text end 62.21 new text begin (1) for failure to comply with the requirements in paragraph (b), the commissioner may new text end 62.22 new text begin assess a penalty of $50 for each day of noncompliance after the department has provided new text end 62.23 new text begin the noncompliant payer, clearinghouse, or hospital with a 30-day written warning; new text end 62.24 new text begin (2) for failure of the designated employee to complete training under paragraph (c), new text end 62.25 new text begin clause (1), within 90 days after the department has notified a payer, clearinghouse, or new text end 62.26 new text begin hospital's designated employee that required training is available, the commissioner may new text end 62.27 new text begin assess a penalty of $3,000; new text end 62.28 new text begin (3) for failure to respond within 30 days to a department inquiry related to submission new text end 62.29 new text begin or payment of medical bills under paragraph (c), clause (2), the commissioner may assess new text end 62.30 new text begin a penalty of $3,000. The commissioner shall not assess a penalty under both this clause and new text end 62.31 new text begin section 176.194, subdivision 3, clause (6), for failure to respond to the same department new text end 62.32 new text begin inquiry. new text end 62.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective October 1, 2017. new text end 63.1    Sec. 2. Minnesota Statutes 2016, section 176.1362, subdivision 1, is amended to read: 63.2    Subdivision 1. Payment based on Medicare MS-DRG system. (a) Except as provided 63.3in subdivisions 2 and 3, the maximum reimbursement for inpatient hospital services, articles, 63.4and supplies is 200 percent of the amount calculated for each hospital under the federal 63.5Inpatient Prospective Payment System developed for Medicare, using the inpatient Medicare 63.6PC-Pricer program for the applicable MS-DRG as provided in paragraph (b) new text begin this subdivision new text end . 63.7All adjustments included in the PC-Pricer program are included in the amount calculated, 63.8including but not limited to any outlier payments. 63.9(b) Payment under this section is effective for services, articles, and supplies provided 63.10to patients discharged from the hospital on or after January 1, 2016. Payment for services, 63.11articles, and supplies provided to patients discharged on January 1, 2016, through December 63.1231, 2016, must be based on the Medicare PC-Pricer program in effect on January 1, 2016. 63.13 new text begin (c) For patients discharged on or after the effective date of this section, new text end payment for 63.14inpatient services, articles, and supplies for patients discharged in each calendar year 63.15thereafter must be based on new text begin calculated according to new text end the PC-Pricer program in effect on 63.16January 1 of the year of discharge new text begin identified on Medicare's Web site as FY 2016.1, updated new text end 63.17 new text begin on January 19, 2016 new text end . 63.18 new text begin (d) For patients discharged on or after October 1, 2017, payment for inpatient services, new text end 63.19 new text begin articles, and supplies must be calculated according to the PC-Pricer program posted on the new text end 63.20 new text begin Department of Labor and Industry's Web site as follows: new text end 63.21 new text begin (1) No later than October 1, 2017, and October 1 of each subsequent year, the new text end 63.22 new text begin commissioner must post on the department's Web site the version of the PC-Pricer program new text end 63.23 new text begin that is most recently available on Medicare's Web site as of the preceding July 1. If no new text end 63.24 new text begin PC-Pricer program is available on the Medicare Web site on any July 1, the PC-Pricer new text end 63.25 new text begin program most recently posted on the department's Web site remains in effect. new text end 63.26 new text begin (2) The commissioner must publish notice of the applicable PC-Pricer program in the new text end 63.27 new text begin State Register no later than October 1 of each year. new text end 63.28 new text begin (e) The MS-DRG grouper software or program that corresponds to the applicable version new text end 63.29 new text begin of the PC-Pricer program must be used to determine payment under this subdivision. new text end 63.30(c) new text begin (f) new text end Hospitals must bill workers' compensation insurers using the same codes, formats, 63.31and details that are required for billing for hospital inpatient services by the Medicare 63.32program. The bill must be submitted to the insurer within the time period required by section 64.162Q.75, subdivision 3 . For purposes of this section, "insurer" includes both workers' 64.2compensation insurers and self-insured employers. 64.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.4    Sec. 3. Minnesota Statutes 2016, section 176.1362, subdivision 2, is amended to read: 64.5    Subd. 2. Payment for catastrophic, high-cost injuries. (a) If the hospital's total usual 64.6and customary charges for services, articles, and supplies for a patient's hospitalization 64.7exceed a threshold of $175,000, annually adjusted as provided in paragraph (b), 64.8reimbursement must not be based on the MS-DRG system, but must instead be paid at 75 64.9percent of the hospital's usual and customary charges. new text begin The threshold amount in effect on new text end 64.10 new text begin the date of discharge determines the applicability of this paragraph. new text end 64.11(b) Beginning new text begin On new text end January 1, 2017, and each January 1 thereafter, the commissioner 64.12must adjust the previous year's threshold by the percent change in average total charges per 64.13inpatient case, using data available as of October 1 for non-Critical Access Hospitals from 64.14the Health Care Cost Information System maintained by the Department of Health pursuant 64.15to chapter 144. new text begin Beginning October 1, 2017, and each October 1 thereafter, the commissioner new text end 64.16 new text begin must adjust the previous threshold using the data available as of the preceding July 1. new text end The 64.17commissioner must annually publish notice of the updated threshold in the State Register. 64.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.19    Sec. 4. Minnesota Statutes 2016, section 176.275, subdivision 1, is amended to read: 64.20    Subdivision 1. Filing. If a document is required to be filed by this chapter or any rules 64.21adopted pursuant to authority granted by this chapter, the filing shall be completed by the 64.22receipt of the document at the division, department, office, or the court of appeals. The 64.23division, department, office, and the court of appeals shall accept any document which has 64.24been delivered to it for legal filing, but may refuse to accept any form or document that 64.25lacks the name of the injured employee, employer, or insurer, the date of injury, or the 64.26injured employee's Social Security number new text begin information required by statute or rule new text end . new text begin The new text end 64.27 new text begin division, department, office, and court of appeals are not required to maintain, and may new text end 64.28 new text begin destroy, a duplicate of a form or document that has already been filed. new text end If a workers' 64.29compensation identification number has been assigned by the department, it may be 64.30substituted for the Social Security number on a form or document. If the injured employee 64.31has fewer than three days of lost time from work, the party submitting the required document 64.32must attach to it, at the time of filing, a copy of the first report of injury. 65.1A notice or other document required to be served or filed at either the department, the 65.2office, or the court of appeals which is inadvertently served or filed at the wrong one of 65.3these agencies shall be deemed to have been served or filed with the proper agency. The 65.4receiving agency shall note the date of receipt of a document and shall forward the documents 65.5to the proper agency no later than two working days following receipt. 65.6    Sec. 5. Minnesota Statutes 2016, section 176.285, is amended to read: 65.7176.285 SERVICE OF PAPERS AND NOTICES; ELECTRONIC FILING. 65.8     new text begin Subdivision 1. new text end new text begin Service by mail. new text end Service of papers and notices shall be by mail or 65.9otherwise as the commissioner or the chief administrative law judge may by rule direct. 65.10Where service is by mail, service is effected at the time mailed if properly addressed and 65.11stamped. If it is so mailed, it is presumed the paper or notice reached the party to be served. 65.12However, a party may show by competent evidence that that party did not receive it or that 65.13it had been delayed in transit for an unusual or unreasonable period of time. In case of 65.14nonreceipt or delay, an allowance shall be made for the party's failure to assert a right within 65.15the prescribed time. 65.16     new text begin Subd. 2. new text end new text begin Electronic service and filing. new text end new text begin (a) new text end Where a statute or rule authorizes or requires 65.17a document to be filed with or served on an agency, the document may be filed electronically 65.18if electronic filing is authorized by the agency and if the document is transmitted in the 65.19manner and in the format specified by the agency. new text begin If electronic filing of a document is new text end 65.20 new text begin authorized by the agency and a statute or rule requires a copy of the document to be provided new text end 65.21 new text begin or served on another person or party, the document filed electronically with the agency and new text end 65.22 new text begin provided or served on the other person or party must contain the same information in the new text end 65.23 new text begin format required by the commissioner. new text end 65.24 new text begin (b) new text end Where a statute or rule authorizes or requires a person's signature on a document to 65.25be filed with or served on an agency, the signature may be new text begin an electronic signature, as defined new text end 65.26 new text begin by section 325L.02, or new text end transmitted electronically, if authorized by the agency and if the 65.27signature is transmitted in the manner and format specified by the agency. The commissioner 65.28may require that a document authorized or required to be filed with the commissioner, 65.29department, or division be filed electronically in the manner and format specified by the 65.30commissioner, except that an employee must not be required to file a document electronically 65.31unless the document is filed by an attorney on behalf of an employee. An agency may serve 65.32a document electronically if the recipient agrees to receive it in an electronic format. The 65.33department or court may adopt rules for the certification of signatures. 66.1 new text begin (c) An agency may serve a document electronically on a payer, rehabilitation provider, new text end 66.2 new text begin or attorney. An agency may serve a document on any other party if the recipient agrees to new text end 66.3 new text begin receive it in an electronic format. The date of electronic service of a document is the date new text end 66.4 new text begin the recipient is sent a document electronically, or the date the recipient is notified that the new text end 66.5 new text begin document is available on a Web site, whichever occurs first. new text end 66.6 new text begin (d) new text end When the electronic filing of a legal document with the department marks the 66.7beginning of a prescribed time for another party to assert a right, the prescribed time for 66.8another party to assert a right shall be lengthened by two calendar days when it can be shown 66.9that service to the other party was by mail. 66.10     new text begin Subd. 3. new text end new text begin Proof of service. new text end The commissioner and the chief administrative law judge 66.11shall ensure that proof of service of all papers and notices served by their respective agencies 66.12is placed in the official file of the case. 66.13     new text begin Subd. 4. new text end new text begin Definitions; applicability. new text end new text begin (a) new text end For purposes of this section, "agency" means 66.14the workers' compensation division, the Department of Labor and Industry, the commissioner 66.15of the Department of Labor and Industry, the Office of Administrative Hearings, the chief 66.16administrative law judge, or the Workers' Compensation Court of Appeals. "Document" 66.17includes documents, reports, notices, orders, papers, forms, information, and data elements 66.18that are authorized or required to be filed with an agency or the commissioner or that are 66.19authorized or required to be served on or by an agency or the commissioner. new text begin "Payer" means new text end 66.20 new text begin a workers' compensation insurer, self-insurer employer, or third-party administrator. new text end 66.21 new text begin (b) new text end Except as otherwise modified by this section, the provisions of chapter 325L apply 66.22to electronic signatures and the electronic transmission of documents under this section. 66.23    Sec. 6. Minnesota Statutes 2016, section 176.541, subdivision 1, is amended to read: 66.24    Subdivision 1. Application of chapter to state employees. This chapter applies to the 66.25employees of any department of this state new text begin as defined in section 3.732, subdivision 1, clause new text end 66.26 new text begin (1) new text end . 66.27    Sec. 7. Minnesota Statutes 2016, section 176.541, is amended by adding a subdivision to 66.28read: 66.29     new text begin Subd. 7a. new text end new text begin Exceptions. new text end new text begin This section does not apply to the University of Minnesota. new text end 67.1    Sec. 8. Minnesota Statutes 2016, section 176.541, subdivision 8, is amended to read: 67.2    Subd. 8. State may insure. The state of Minnesota may elect to insure its liability under 67.3the workers' compensation law for persons employed under the federal Emergency 67.4Employment Act of 1971, as amended, and the Comprehensive Employment and Training 67.5Act of 1973, as amended new text begin Workforce Innovation and Opportunity Act, and similar programs new text end , 67.6with an insurer properly licensed in Minnesota. 67.7    Sec. 9. Minnesota Statutes 2016, section 176.611, subdivision 2, is amended to read: 67.8    Subd. 2. State departments. Every department of the state, including the University of 67.9Minnesota, shall reimburse the fund for money paid for its claims and the costs of 67.10administering the revolving fund at such times and in such amounts as the commissioner 67.11of administration shall certify has been paid out of the fund on its behalf. The heads of the 67.12departments shall anticipate these payments by including them in their budgets. In addition, 67.13the commissioner of administration, with the approval of the commissioner of management 67.14and budget, may require an agency to make advance payments to the fund sufficient to 67.15cover the agency's estimated obligation for a period of at least 60 days. Reimbursements 67.16and other money received by the commissioner of administration under this subdivision 67.17must be credited to the state compensation revolving fund. 67.18    Sec. 10. new text begin REPEALER. new text end 67.19 new text begin Minnesota Statutes 2016, section 176.541, subdivision 7, new text end new text begin is repealed. new text end 67.20    Sec. 11. new text begin EFFECTIVE DATE. new text end 67.21 new text begin This article is effective the day following final enactment. new text end 67.22ARTICLE 4 67.23WORKERS' COMPENSATION ADVISORY COUNCIL; SPECIAL 67.24COMPENSATION FUND 67.25    Section 1. new text begin [176.1292] FORBEARANCE OF AMOUNTS OWED TO THE SPECIAL new text end 67.26 new text begin COMPENSATION FUND. new text end 67.27     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For purposes of this section, the following definitions apply. new text end 67.28 new text begin (a) "Payer" means a workers' compensation insurer, or an employer or group of employers new text end 67.29 new text begin that are self-insured for workers' compensation. new text end 68.1 new text begin (b) "Retirement benefits" means retirement benefits paid by any government retirement new text end 68.2 new text begin benefit program and received by employees, other than old age and survivor insurance new text end 68.3 new text begin benefits received under the federal Social Security Act, United States Code, title 42, sections new text end 68.4 new text begin 401 to 434. Retirement benefits include retirement annuities, optional annuities received in new text end 68.5 new text begin lieu of retirement benefits, and any other benefit or annuity paid by a government benefit new text end 68.6 new text begin program that is not clearly identified as a disability benefit or disability annuity in the new text end 68.7 new text begin applicable governing statute. new text end 68.8     new text begin Subd. 2. new text end new text begin Payment of permanent total disability benefits to employees, dependents, new text end 68.9 new text begin and legal heirs. new text end new text begin (a) A payer is entitled to the relief described in subdivisions 3 and 4 only new text end 68.10 new text begin if the payer complies with all of the conditions in paragraphs (b) to (d) for all of the payer's new text end 68.11 new text begin permanently totally disabled employees and documents compliance according to the new text end 68.12 new text begin procedures and forms established by the commissioner under subdivision 7. new text end 68.13 new text begin (b) Except as provided in paragraph (e), the payer must: new text end 68.14 new text begin (1) recharacterize supplementary benefits paid to all employees as permanent total new text end 68.15 new text begin disability benefits if the supplementary benefits were paid because the permanent total new text end 68.16 new text begin disability benefits were reduced by retirement benefits received by the employee; new text end 68.17 new text begin (2) pay all permanently totally disabled employees, regardless of the date of injury, past new text end 68.18 new text begin and future permanent total disability benefits calculated without any reduction for retirement new text end 68.19 new text begin benefits received by the employees, from the date the employees' benefits were first reduced; new text end 68.20 new text begin and new text end 68.21 new text begin (3) for all deceased employees, pay the employees' dependents or, if none, the employees' new text end 68.22 new text begin legal heirs, the permanent total disability benefits the deceased employees would have new text end 68.23 new text begin received if the benefits had been calculated without any reduction for retirement benefits new text end 68.24 new text begin received by the employees. new text end 68.25     new text begin (c) A payer may take a credit against its obligations under paragraph (b), clauses (2) and new text end 68.26 new text begin (3), for: new text end 68.27 new text begin (1) supplementary benefits previously paid to an employee that have been recharacterized new text end 68.28 new text begin as permanent total disability benefits under paragraph (b), clause (1); and new text end 68.29 new text begin (2) permanent total disability benefits previously paid to an employee. new text end 68.30 new text begin (d) The payer must pay the permanent total disability benefits as provided in paragraphs new text end 68.31 new text begin (b) and (c) within the time frames described in clauses (1) to (4). More than one time frame new text end 68.32 new text begin may apply to a claim. new text end 69.1 new text begin (1) No later than 150 days following final enactment, the payer must begin paying the new text end 69.2 new text begin recalculated permanent total disability benefit amounts to employees who are entitled to new text end 69.3 new text begin ongoing permanent total disability benefits. new text end 69.4 new text begin (2) No later than 210 days following final enactment, the payer must pay employees the new text end 69.5 new text begin amounts that past permanent total disability benefits were underpaid. new text end 69.6 new text begin (3) No later than 270 days following final enactment, the payer must pay the employees' new text end 69.7 new text begin dependents or legal heirs the amounts that permanent total disability benefits were underpaid. new text end 69.8 new text begin (4) The commissioner may waive payment under paragraphs (b) and (c) or extend these new text end 69.9 new text begin time frames if the payer, after making a good-faith effort, is unable to: locate an employee; new text end 69.10 new text begin identify or locate the dependents or legal heirs of a deceased employee; or locate new text end 69.11 new text begin documentation to determine the amount of an underpayment. new text end 69.12 new text begin (e) Paragraphs (a) to (d) do not apply if: new text end 69.13 new text begin (1) the employee died before January 1, 2008; new text end 69.14 new text begin (2) the employee's last permanent total disability benefit was paid before January 1, new text end 69.15 new text begin 2000; new text end 69.16 new text begin (3) the employee's last permanent total disability benefit would have been paid before new text end 69.17 new text begin January 1, 2000, if it had not been reduced by his or her retirement benefits; new text end 69.18 new text begin (4) a stipulation for settlement, signed by the employee and approved by a compensation new text end 69.19 new text begin judge, provided for a full, final, and complete settlement of permanent total disability benefits new text end 69.20 new text begin under this chapter in exchange for a lump sum payment amount or a lump sum converted new text end 69.21 new text begin to a structured annuity; new text end 69.22 new text begin (5) a final court order, or a stipulation for settlement signed by the employee and approved new text end 69.23 new text begin by a compensation judge, explicitly states the employee's permanent total disability benefits new text end 69.24 new text begin may be reduced by specified retirement benefits. Paragraphs (a) to (d) apply if a court order new text end 69.25 new text begin or stipulation for settlement is ambiguous about whether the employee's permanent total new text end 69.26 new text begin disability benefits could be reduced by retirement benefits; or new text end 69.27 new text begin (6) a final court order or a stipulation for settlement described in clause (4) or (5) was new text end 69.28 new text begin vacated after the effective date of this section. new text end 69.29     new text begin Subd. 3. new text end new text begin Reimbursement of supplementary benefits. new text end new text begin (a) Except as provided in new text end 69.30 new text begin subdivision 9, paragraph (a), clause (2), a payer that has complied with the requirements of new text end 69.31 new text begin subdivision 2, paragraphs (a) to (d): new text end 70.1 new text begin (1) is not required to repay supplementary benefits for any claim that the special new text end 70.2 new text begin compensation fund over reimbursed due to the payer's reduction of any employee's permanent new text end 70.3 new text begin total disability benefits by retirement benefits received by the employee; new text end 70.4 new text begin (2) is entitled to reimbursement of supplementary benefits paid or payable before August new text end 70.5 new text begin 13, 2014, to the extent the special compensation fund denied reimbursement due to the new text end 70.6 new text begin payer's reduction of any employee's permanent total disability benefits by the employee's new text end 70.7 new text begin retirement benefits; and new text end 70.8 new text begin (3) is entitled to reimbursement of supplementary benefits the special compensation new text end 70.9 new text begin fund withheld under section 176.129, subdivision 13, paragraph (a), to offset supplementary new text end 70.10 new text begin benefits that were over reimbursed due to the payer's reduction of any employee's permanent new text end 70.11 new text begin total disability benefits by the employee's retirement benefits. new text end 70.12 new text begin (b) Paragraph (a) does not preclude the special compensation fund from denying new text end 70.13 new text begin reimbursement of supplementary benefits, or adjusting the reimbursement amount, for any new text end 70.14 new text begin reason other than reduction of permanent total disability benefits by the employee's retirement new text end 70.15 new text begin benefits. new text end 70.16     new text begin Subd. 4. new text end new text begin Assessments. new text end new text begin (a) Except as provided in subdivision 6, paragraph (b), clause new text end 70.17 new text begin (2), and subdivision 9, paragraph (a), clause (2), a payer that has complied with the new text end 70.18 new text begin requirements of subdivision 2, paragraphs (a) to (d), is not required to pay past or future new text end 70.19 new text begin assessments under section 176.129 on the amount of increased or additional permanent total new text end 70.20 new text begin disability benefits paid, or on supplementary benefits that are appropriately characterized new text end 70.21 new text begin as permanent total disability benefits, due to the elimination of the retirement benefit new text end 70.22 new text begin reduction. new text end 70.23 new text begin (b) The special compensation fund shall not recalculate assessments previously paid by new text end 70.24 new text begin any payer because of the assessment adjustments in paragraph (a). new text end 70.25 new text begin (c) The assessment adjustments described in paragraph (a) do not apply to permanent new text end 70.26 new text begin total disability benefits paid to employees with dates of injury on or after August 13, 2014. new text end 70.27 new text begin Payers must pay full assessments according to section 176.129 on permanent total disability new text end 70.28 new text begin benefits calculated without a reduction for retirement benefits for these employees. new text end 70.29     new text begin Subd. 5. new text end new text begin Refunds. new text end new text begin (a) A payer is entitled to a refund from the special compensation fund new text end 70.30 new text begin if: new text end 70.31 new text begin (1) the payer complies with the requirements of subdivision 2, paragraphs (a) to (d); and new text end 70.32 new text begin (2) due to the elimination of the retirement benefit reduction, the payer repaid the special new text end 70.33 new text begin compensation fund for over reimbursement of supplementary benefits, or paid assessments new text end 71.1 new text begin on the increased permanent total disability benefits for employees with dates of injury before new text end 71.2 new text begin August 13, 2014. new text end 71.3 new text begin (b) The special compensation fund must issue a refund within 30 days after receiving new text end 71.4 new text begin the payer's documentation of compliance with subdivision 2, paragraphs (a) to (d), and an new text end 71.5 new text begin itemization by claim of the amount repaid or paid to the special compensation fund as new text end 71.6 new text begin described in paragraph (a), clause (2). new text end 71.7 new text begin (c) The special compensation fund must pay interest on any refunded amount under this new text end 71.8 new text begin section to the payer at an annual rate of four percent, calculated from the date the payer new text end 71.9 new text begin repaid or paid the special compensation fund as described in paragraph (a), clause (2). new text end 71.10     new text begin Subd. 6. new text end new text begin Applicability. new text end new text begin (a) This section does not preclude any employee, dependent, or new text end 71.11 new text begin legal heir from pursuing additional benefits beyond those paid under subdivision 2, new text end 71.12 new text begin paragraphs (b) to (d); however, the payments under subdivision 2, paragraphs (b) to (d), are new text end 71.13 new text begin not to be construed as an admission of liability by the payer in any proceeding. The payments new text end 71.14 new text begin cannot be used to justify additional claims; they represent a compromise between the payer new text end 71.15 new text begin and the special compensation fund on supplementary benefits and assessments. Payers new text end 71.16 new text begin reserve any and all defenses to claims to which this section does not apply. new text end 71.17 new text begin (b) If an employee, dependent, or legal heir pursues additional benefits, claims, or new text end 71.18 new text begin penalties related to the benefits paid or payable under subdivision 2, paragraphs (b) to (d), new text end 71.19 new text begin payers may assert any and all defenses including, but not limited to, those specified in new text end 71.20 new text begin subdivision 2, paragraph (e), clauses (4) and (5), with respect to the additional benefits, new text end 71.21 new text begin claims, and penalties, and any future permanent total disability benefits payable, subject to new text end 71.22 new text begin the following conditions: new text end 71.23 new text begin (1) if it is determined by a compensation judge, the Workers' Compensation Court of new text end 71.24 new text begin Appeals, or the Minnesota Supreme Court that the payer is entitled to reduce the employee's new text end 71.25 new text begin permanent total disability benefits by retirement benefits received by the employee, the new text end 71.26 new text begin payer shall not recover any overpayment that results from benefits the employee, dependent, new text end 71.27 new text begin or legal heir has already received under subdivision 2, paragraphs (b) to (d). Notwithstanding new text end 71.28 new text begin section 176.129, the payer shall not take a credit against an employee's future benefits for new text end 71.29 new text begin any such overpayment; and new text end 71.30 new text begin (2) if it is determined by a compensation judge, the Workers' Compensation Court of new text end 71.31 new text begin Appeals, or the Minnesota Supreme Court that the payer is not entitled to reduce the new text end 71.32 new text begin employee's permanent total disability benefits by retirement benefits received by the new text end 71.33 new text begin employee, the payer is not entitled to the relief provided in subdivision 4 as applied to the new text end 71.34 new text begin claim of the specific employee, dependent, or legal heir. new text end 72.1 new text begin (c) A payer shall not assert defenses related to the offset of retirement benefits against new text end 72.2 new text begin an employee's future permanent total disability benefits if the only additional claims asserted new text end 72.3 new text begin by the employee under paragraph (b) are for attorney fees, costs and disbursements, and an new text end 72.4 new text begin additional award pursuant to section 176.081, subdivision 7. new text end 72.5     new text begin Subd. 7. new text end new text begin Procedure. new text end new text begin No later than 60 days after final enactment, in consultation with new text end 72.6 new text begin affected payers, the commissioner must establish a procedure, which may include forms, new text end 72.7 new text begin to implement this section. new text end 72.8     new text begin Subd. 8. new text end new text begin Reporting. new text end new text begin This section does not affect a payer's obligation to report the full new text end 72.9 new text begin amount of permanent total disability benefits paid to the extent required by this chapter or new text end 72.10 new text begin other law. A payer must report supplementary benefits as permanent total disability benefits new text end 72.11 new text begin if the supplementary benefits were paid because the permanent total disability benefits were new text end 72.12 new text begin reduced by retirement benefits received by the employee. new text end 72.13     new text begin Subd. 9. new text end new text begin Failure to comply. new text end new text begin (a) If a payer reports to the department that it has complied new text end 72.14 new text begin with the requirements of subdivision 2, paragraphs (a) to (d), but the payer has not paid an new text end 72.15 new text begin employee, dependent, or legal heir, as required by subdivision 2, the payer is subject to the new text end 72.16 new text begin following: new text end 72.17 new text begin (1) the payer must issue payment to the employee, dependent, or legal heir within 14 new text end 72.18 new text begin days of the date the payer discovers the noncompliance or the date the department notifies new text end 72.19 new text begin the payer of the noncompliance; new text end 72.20 new text begin (2) the payer is not entitled to the relief provided in subdivisions 3 and 4 as applied to new text end 72.21 new text begin the claim of the specific employee, dependent, or legal heir who was not paid as required new text end 72.22 new text begin by subdivision 2; new text end new text begin new text end 72.23 new text begin (3) the special compensation fund may immediately begin collection of any assessments new text end 72.24 new text begin or over-reimbursement owed for the claim; new text end 72.25 new text begin (4) if the commissioner determines that a payer's failure to comply under this subdivision new text end 72.26 new text begin was not in good faith, the commissioner may assess a penalty, payable to the employee, new text end 72.27 new text begin dependent, or legal heir, of up to 25 percent of the total permanent total disability benefits new text end 72.28 new text begin underpaid; and new text end 72.29 new text begin (5) if the payer is found after a hearing to be liable for increased or additional permanent new text end 72.30 new text begin total disability benefits because the employee's permanent total disability benefits were new text end 72.31 new text begin improperly reduced by his or her retirement benefits, the compensation judge shall assess new text end 72.32 new text begin a penalty against the payer, payable to the employee or dependent, up to the total amount new text end 72.33 new text begin of the permanent total disability benefits that were not paid pursuant to subdivision 2. The new text end 73.1 new text begin compensation judge may issue a penalty against the payer, up to the total amount of the new text end 73.2 new text begin permanent total disability benefits underpaid, payable to a legal heir. new text end 73.3 new text begin (b) The penalties assessed under this subdivision are in addition to any other penalty new text end 73.4 new text begin that may be, or is required to be, assessed under this chapter; however, the commissioner new text end 73.5 new text begin shall not assess a penalty against a payer for late payment of permanent total disability new text end 73.6 new text begin benefits if the employee's benefits have been paid and documented in accordance with new text end 73.7 new text begin subdivision 2. new text end 73.8 new text begin (c) If a payer and the special compensation fund have agreed to a list of employees new text end 73.9 new text begin required to be paid under subdivision 2, this subdivision does not apply to any claim with new text end 73.10 new text begin a date of injury before October 1, 1995, that is not on the agreed-upon list. new text end 73.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after final enactment. new text end 73.12ARTICLE 5 73.13WORKERS' COMPENSATION ADVISORY COUNCIL; WORKERS' 73.14COMPENSATION INTERVENTION 73.15    Section 1. Minnesota Statutes 2016, section 176.361, subdivision 2, is amended to read: 73.16    Subd. 2. Written motion. A person desiring to intervene in a workers' compensation 73.17case as a party, including but not limited to a health care provider who has rendered services 73.18to an employee or an insurer who has paid benefits under section 176.191, shall submit a 73.19timely written motion to intervene to the commissioner, the office, or to the court of appeals, 73.20whichever is applicable. 73.21    (a) The motion must be served on all parties, except for other intervenors, either 73.22personally, by first class mail, or by registered mail, return receipt requested. A motion to 73.23intervene must be served and filed within 60 days after a potential intervenor has been 73.24served with notice of a right to intervene or within 30 days of notice of an administrative 73.25conference new text begin or expedited hearing new text end . Upon the filing of a timely motion to intervene, the potential 73.26intervenor shall be granted intervenor status without the need for an order. Objections to 73.27the intervention may be subsequently addressed by a compensation judge. Where a motion 73.28to intervene is not timely filed under this section, the potential intervenor interest shall be 73.29extinguished and the potential intervenor may not collect, or attempt to collect, the 73.30extinguished interest from the employee, employer, insurer, or any government program. 73.31    (b) The motion must show how the applicant's legal rights, duties, or privileges may be 73.32determined or affected by the case; state the grounds and purposes for which intervention 74.1is sought; and indicate the statutory right to intervene. The motion must be accompanied 74.2by the following: 74.3    (1) an itemization of disability payments showing the period during which the payments 74.4were or are being made; the weekly or monthly rate of the payments; and the amount of 74.5reimbursement claimed; 74.6    (2) a summary of the medical or treatment payments, or rehabilitation services provided 74.7by the Vocational Rehabilitation Unit, broken down by creditor, showing the total bill 74.8submitted, the period of treatment or rehabilitation covered by that bill, the amount of 74.9payment on that bill, and to whom the payment was made; 74.10    (3) copies of all medical or treatment bills for which payment is sought; 74.11    (4) copies of the work sheets or other information stating how the payments on medical 74.12or treatment bills were calculated; 74.13    (5) a copy of the relevant policy or contract provisions upon which the claim for 74.14reimbursement is based; 74.15    (6) the name and telephone number of the person representing the intervenor who has 74.16authority to represent the intervenor, including but not limited to the authority to reach a 74.17settlement of the issues in dispute; 74.18    (7) proof of service or copy of the registered mail receipt evidencing service on all parties 74.19except for other intervenors; 74.20    (8) at the option of the intervenor, a proposed stipulation which states that all of the 74.21payments for which reimbursement is claimed are related to the injury or condition in dispute 74.22in the case and that, if the petitioner is successful in proving the compensability of the claim, 74.23it is agreed that the sum be reimbursed to the intervenor; and 74.24    (9) if represented by an attorney, the name, address, telephone number, and Minnesota 74.25Supreme Court license number of the attorney. 74.26    Sec. 2. Minnesota Statutes 2016, section 176.361, subdivision 3, is amended to read: 74.27    Subd. 3. Stipulation. If the person submitting the new text begin filing a timely new text end motion to intervene 74.28has included a proposed stipulation, all parties shall either execute and return the signed 74.29stipulation to the intervenor who must file it with the division or judge or serve upon the 74.30intervenor and all other parties and file with the division specific and detailed objections to 74.31any new text begin services rendered or new text end payments made by the intervenor which are not conceded to be 74.32correct and related to the injury or condition the petitioner has asserted is compensable. If 75.1a party has not returned the signed stipulation or filed specific and detailed objections within 75.230 days of service of the motion to intervene, the intervenor's right to reimbursement for 75.3the amount sought is deemed established provided that the petitioner's claim is determined 75.4to be compensable. The office may establish procedures for filing objections if a timely 75.5motion to intervene is filed less than 30 days before a scheduled hearing. 75.6    Sec. 3. Minnesota Statutes 2016, section 176.521, is amended by adding a subdivision to 75.7read: 75.8     new text begin Subd. 2b. new text end new text begin Partial settlement. new text end new text begin (a) The parties may file a partial stipulation for settlement new text end 75.9 new text begin which resolves the claims of the employee and reserves the claims of one or more intervenors. new text end 75.10 new text begin If the partial stipulation, or a letter of agreement attached to the partial stipulation, is not new text end 75.11 new text begin signed by an intervenor, the partial stipulation must include a statement that the parties were new text end 75.12 new text begin unable to: new text end 75.13 new text begin (1) obtain a response from the nonsigning intervenor regarding clarification or new text end 75.14 new text begin confirmation of its interest or an offer of settlement within a reasonable time despite new text end 75.15 new text begin good-faith efforts to obtain a response; new text end 75.16 new text begin (2) reach agreement with the nonsigning intervenor despite the belief that the parties new text end 75.17 new text begin negotiated with the intervenor in good faith and made a reasonable offer to settle the new text end 75.18 new text begin intervention claim; or new text end 75.19 new text begin (3) obtain the nonsigning intervenor's signature within a reasonable time after an new text end 75.20 new text begin agreement was reached with the intervenor. new text end 75.21 new text begin The partial stipulation must include detailed and case-specific support for the parties' new text end 75.22 new text begin statements. In addition, the partial stipulation must reserve the nonsigning intervenor's new text end 75.23 new text begin interests to pursue its claim at a hearing on the merits, and must contain a statement that new text end 75.24 new text begin the employee will cooperate at the hearing. new text end 75.25 new text begin (b) Prior to filing the partial stipulation for approval, a copy of the partial stipulation new text end 75.26 new text begin must be served on all parties, including the nonsigning intervenor, together with a written new text end 75.27 new text begin notification that the settling parties intend to file the partial stipulation for approval by a new text end 75.28 new text begin compensation judge and of the nonsigning intervenor's right to request a hearing on the new text end 75.29 new text begin merits of the intervenor's claim. new text end 75.30 new text begin (c) Within ten days after service of a partial stipulation for settlement and notice of an new text end 75.31 new text begin intent to file for approval by a compensation judge, a nonsigning intervenor may serve and new text end 75.32 new text begin file a written objection to approval of the partial stipulation, which filing must provide a new text end 76.1 new text begin detailed and case-specific factual basis establishing that approval of the partial stipulation new text end 76.2 new text begin will adversely impact the rights of the intervenor. new text end 76.3 new text begin (d) After expiration of the ten-day period within which a nonsigning intervenor may new text end 76.4 new text begin serve and file its written objection, any party may file for approval a partial stipulation for new text end 76.5 new text begin settlement which conforms with this section. An affidavit of service must accompany the new text end 76.6 new text begin partial stipulation when it is filed for approval. new text end 76.7 new text begin (e) Unless the compensation judge has a reasonable belief that approval of the partial new text end 76.8 new text begin stipulation will adversely impact the rights of the nonsigning intervenor, the compensation new text end 76.9 new text begin judge shall immediately issue the award and file it with the commissioner. The issuance of new text end 76.10 new text begin the award shall be accompanied by notice to the intervenors and other parties of their right new text end 76.11 new text begin to request amended findings within a period of 30 days following the date of issuance in new text end 76.12 new text begin conformity with applicable law. new text end 76.13 new text begin (f) If the compensation judge has a reasonable belief that approval of the partial stipulation new text end 76.14 new text begin will adversely impact the rights of the intervenor, the compensation judge shall disapprove new text end 76.15 new text begin the stipulation by written order detailing a factual basis for the determination of adverse new text end 76.16 new text begin impact. new text end 76.17    Sec. 4. new text begin RULEMAKING. new text end 76.18 new text begin The Office of Administrative Hearings is directed to use the expedited rulemaking new text end 76.19 new text begin provisions of Minnesota Statutes, section 14.389, to amend Minnesota Rules, part 1420.1850, new text end 76.20 new text begin to conform to the amendments of Minnesota Statutes, section 176.361, subdivision 3. new text end 76.21ARTICLE 6 76.22EMPLOYMENT AND ECONOMIC DEVELOPMENT 76.23    Section 1. new text begin [116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND. new text end 76.24 new text begin (a) A rural policy and development center fund is established as an account in the special new text end 76.25 new text begin revenue fund in the state treasury. The commissioner of management and budget shall credit new text end 76.26 new text begin to the account the amounts authorized under this section and appropriations and transfers new text end 76.27 new text begin to the account. The State Board of Investment shall ensure that account money is invested new text end 76.28 new text begin under section 11A.24. All money earned by the account must be credited to the account. new text end 76.29 new text begin The principal of the account and any unexpended earnings must be invested and reinvested new text end 76.30 new text begin by the State Board of Investment. new text end 76.31 new text begin (b) Gifts and donations, including land or interests in land, may be made to the account. new text end 76.32 new text begin Noncash gifts and donations must be disposed of for cash as soon as the board prudently new text end 77.1 new text begin can maximize the value of the gift or donation. Gifts and donations of marketable securities new text end 77.2 new text begin may be held or be disposed of for cash at the option of the board. The cash receipts of gifts new text end 77.3 new text begin and donations of cash or capital assets and marketable securities disposed of for cash must new text end 77.4 new text begin be credited immediately to the principal of the account. The value of marketable securities new text end 77.5 new text begin at the time the gift or donation is made must be credited to the principal of the account and new text end 77.6 new text begin any earnings from the marketable securities are earnings of the account. The earnings in new text end 77.7 new text begin the account are annually appropriated to the board of the Center for Rural Policy and new text end 77.8 new text begin Development to carry out the duties of the center. new text end 77.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 77.10    Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read: 77.11    Subd. 2. Administration. new text begin (a) new text end Except as otherwise provided in this section, the 77.12commissioner shall administer the fund as part of the Small Cities Development Block 77.13Grant Program and funds shall be made available to local communities and recognized 77.14Indian tribal governments in accordance with the rules adopted for economic development 77.15grants in the small cities community development block grant program. All units of general 77.16purpose local government are eligible applicants for Minnesota investment funds. The 77.17commissioner may provide forgivable loans directly to a private enterprise and not require 77.18a local community or recognized Indian tribal government application other than a resolution 77.19supporting the assistance. 77.20 new text begin (b) new text end Eligible applicants for the state-funded portion of the fund also include development 77.21authorities as defined in section 116J.552, subdivision 4, provided that the governing body 77.22of the municipality approves, by resolution, the application of the development authority. 77.23 new text begin A local government entity may receive more than one award in a fiscal year. new text end The 77.24commissioner may also make funds available within the department for eligible expenditures 77.25under subdivision 3, clause (2). 77.26 new text begin (c) new text end A home rule charter or statutory city, county, or town may loan or grant money 77.27received from repayment of funds awarded under this section to a regional development 77.28commission, other regional entity, or statewide community capital fund as determined by 77.29the commissioner, to capitalize or to provide the local match required for capitalization of 77.30a regional or statewide revolving loan fund. 78.1    Sec. 3. Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision 78.2to read: 78.3     new text begin Subd. 10. new text end new text begin Transfer. new text end new text begin The commissioner may transfer up to $2,000,000 of a fiscal year's new text end 78.4 new text begin appropriation between the Minnesota job creation fund program and Minnesota investment new text end 78.5 new text begin fund to meet business demand. new text end 78.6    Sec. 4. Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read: 78.7    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 78.8the meanings given. 78.9(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement 78.10under section 116J.994 that must include, but is not limited to: specification of the duration 78.11of the agreement, job goals and a timeline for achieving those goals over the duration of 78.12the agreement, construction and other investment goals and a timeline for achieving those 78.13goals over the duration of the agreement, and the value of benefits the firm may receive 78.14following achievement of capital investment and employment goals. The local government 78.15and business must report to the commissioner on the business performance using the forms 78.16developed by the commissioner. 78.17(c) "Business" means an individual, corporation, partnership, limited liability company, 78.18association, or other entity. 78.19(d) "Capital investment" means money that is expended for the purpose of building or 78.20improving real fixed property where employees under paragraphs (g) and (h) are or will be 78.21employed and also includes construction materials, services, and supplies, and the purchase 78.22and installation of equipment and machinery as provided under subdivision 4, paragraph 78.23(b), clause (5). 78.24(e) "Commissioner" means the commissioner of employment and economic development. 78.25(f) "Minnesota job creation fund business" means a business that is designated by the 78.26commissioner under subdivision 3. 78.27 new text begin (g) "Minority person" means a person belonging to a racial or ethnic minority as defined new text end 78.28 new text begin in Code of Federal Regulations, title 49, section 23.5. new text end 78.29(g) new text begin (h) new text end "New full-time employee" means an employee who: 78.30(1) begins work at a Minnesota job creation fund business facility noted in a business 78.31subsidy agreement and following the designation as a job creation fund business; and 78.32(2) has expected work hours of at least 2,080 hours annually. 79.1 new text begin (i) "Persons with disabilities" means an individual with a disability, as defined under new text end 79.2 new text begin the Americans with Disabilities Act, United States Code, title 42, section 12102. new text end 79.3(h) new text begin (j) new text end "Retained job" means a full-time position: 79.4(1) that existed at the facility prior to the designation as a job creation fund business; 79.5and 79.6(2) has expected work hours of at least 2,080 hours annually. 79.7 new text begin (k) "Veteran" means a veteran as defined in section 197.447. new text end 79.8(i) new text begin (l) new text end "Wages" has the meaning given in section 290.92, subdivision 1, clause (1). 79.9    Sec. 5. Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read: 79.10    Subd. 3. Minnesota job creation fund business designation; requirements. (a) To 79.11receive designation as a Minnesota job creation fund business, a business must satisfy all 79.12of the following conditions: 79.13(1) the business is or will be engaged in, within Minnesota, one of the following as its 79.14primary business activity: 79.15(i) manufacturing; 79.16(ii) warehousing; 79.17(iii) distribution; 79.18(iv) information technology; 79.19(v) finance; 79.20(vi) insurance; or 79.21(vii) professional or technical services; 79.22(2) the business must not be primarily engaged in lobbying; gambling; entertainment; 79.23professional sports; political consulting; leisure; hospitality; or professional services provided 79.24by attorneys, accountants, business consultants, physicians, or health care consultants, or 79.25primarily engaged in making retail sales to purchasers who are physically present at the 79.26business's location; 79.27(3) the business must enter into a binding construction and job creation business subsidy 79.28agreement with the commissioner to expend new text begin directly, or ensure expenditure by or in new text end 79.29 new text begin partnership with a third party constructing or managing the project, new text end at least $500,000 in 79.30capital investment in a capital investment project that includes a new, expanded, or remodeled 80.1facility within one year following designation as a Minnesota job creation fund business new text begin or new text end 80.2 new text begin $250,000 if the project is located outside the metropolitan area as defined in section 200.02, new text end 80.3 new text begin subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, new text end 80.4 new text begin women, or persons with a disability; new text end and: 80.5(i) create at least ten new full-time employee positions within two years of the benefit 80.6date following the designation as a Minnesota job creation fund business new text begin or five new full-time new text end 80.7 new text begin employee positions within two years of the benefit date if the project is located outside the new text end 80.8 new text begin metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business new text end 80.9 new text begin is cumulatively owned by minorities, veterans, women, or persons with a disability new text end ; or 80.10(ii) expend at least $25,000,000, which may include the installation and purchase of 80.11machinery and equipment, in capital investment and retain at least 200 employees for projects 80.12located in the metropolitan area as defined in section 200.02, subdivision 24, and 75 80.13employees for projects located outside the metropolitan area; 80.14(4) positions or employees moved or relocated from another Minnesota location of the 80.15Minnesota job creation fund business must not be included in any calculation or determination 80.16of job creation or new positions under this paragraph; and 80.17(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the 80.18working hours of an employee for the purpose of hiring an individual to satisfy job creation 80.19goals under this subdivision. 80.20(b) Prior to approving the proposed designation of a business under this subdivision, the 80.21commissioner shall consider the following: 80.22(1) the economic outlook of the industry in which the business engages; 80.23(2) the projected sales of the business that will be generated from outside the state of 80.24Minnesota; 80.25(3) how the business will build on existing regional, national, and international strengths 80.26to diversify the state's economy; 80.27(4) whether the business activity would occur without financial assistance; 80.28(5) whether the business is unable to expand at an existing Minnesota operation due to 80.29facility or land limitations; 80.30(6) whether the business has viable location options outside Minnesota; 80.31(7) the effect of financial assistance on industry competitors in Minnesota; 80.32(8) financial contributions to the project made by local governments; and 81.1(9) any other criteria the commissioner deems necessary. 81.2(c) Upon receiving notification of local approval under subdivision 2, the commissioner 81.3shall review the determination by the local government and consider the conditions listed 81.4in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local 81.5area to designate a business as a Minnesota job creation fund business. 81.6(d) If the commissioner designates a business as a Minnesota job creation fund business, 81.7the business subsidy agreement shall include the performance outcome commitments and 81.8the expected financial value of any Minnesota job creation fund benefits. 81.9(e) The commissioner may amend an agreement once, upon request of a local government 81.10on behalf of a business, only if the performance is expected to exceed thresholds stated in 81.11the original agreement. 81.12(f) A business may apply to be designated as a Minnesota job creation fund business at 81.13the same location more than once only if all goals under a previous Minnesota job creation 81.14fund agreement have been met and the agreement is completed. 81.15    Sec. 6. Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read: 81.16    Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job 81.17creation fund business as eligible to receive a specific value of benefit under paragraphs (b) 81.18and (c) when the business has achieved its job creation and capital investment goals noted 81.19in its agreement under subdivision 3. 81.20(b) A qualified Minnesota job creation fund business may be certified eligible for the 81.21benefits in this paragraph for up to five years for projects located in the metropolitan area 81.22as defined in section 200.02, subdivision 24, and seven years for projects located outside 81.23the metropolitan area, as determined by the commissioner when considering the best interests 81.24of the state and local area. new text begin Notwithstanding section 16B.98, subdivision 5, paragraph (a), new text end 81.25 new text begin clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located new text end 81.26 new text begin outside the metropolitan area may be for up to seven years in length. new text end The eligibility for the 81.27following benefits begins the date the commissioner certifies the business as a qualified 81.28Minnesota job creation fund business under this subdivision: 81.29(1) up to five percent rebate for projects located in the metropolitan area as defined in 81.30section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan 81.31area, on capital investment on qualifying purchases as provided in subdivision 5 with the 81.32total rebate for a project not to exceed $500,000; 82.1(2) an award of up to $500,000 based on full-time job creation and wages paid as provided 82.2in subdivision 6 with the total award not to exceed $500,000; 82.3(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards 82.4are allowable for projects that have at least $25,000,000 in capital investment and 200 new 82.5employees new text begin in the metropolitan area as defined in section 200.02, subdivision 24, and 75 new text end 82.6 new text begin new employees for projects located outside the metropolitan area new text end ; 82.7(4) up to $1,000,000 in capital investment rebates are allowable for projects that have 82.8at least $25,000,000 in capital investment and 200 retained employees for projects located 82.9in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for 82.10projects located outside the metropolitan area; and 82.11(5) for clauses (3) and (4) only, the capital investment expenditure requirements may 82.12include the installation and purchases of machinery and equipment. These expenditures are 82.13not eligible for the capital investment rebate provided under subdivision 5. 82.14(c) The job creation award may be provided in multiple years as long as the qualified 82.15Minnesota job creation fund business continues to meet the job creation goals provided for 82.16in its agreement under subdivision 3 and the total award does not exceed $500,000 except 82.17as provided under paragraph (b), clauses (3) and (4). 82.18(d) No rebates or award may be provided until the Minnesota job creation fund business 82.19 new text begin or a third party constructing or managing the project new text end has at least $500,000 in capital 82.20investment in the project and at least ten full-time jobs have been created and maintained 82.21for at least one year or the retained employees, as provided in paragraph (b), clause (4), 82.22remain for at least one year. The agreement may require additional performance outcomes 82.23that need to be achieved before rebates and awards are provided. If fewer retained jobs are 82.24maintained, but still above the minimum under this subdivision, the capital investment 82.25award shall be reduced on a proportionate basis. 82.26(e) The forms needed to be submitted to document performance by the Minnesota job 82.27creation fund business must be in the form and be made under the procedures specified by 82.28the commissioner. The forms shall include documentation and certification by the business 82.29that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, 82.30and other provisions as specified by the commissioner. 82.31(f) Minnesota job creation fund businesses must pay each new full-time employee added 82.32pursuant to the agreement total compensation, including benefits not mandated by law, that 82.33on an annualized basis is equal to at least 110 percent of the federal poverty level for a 82.34family of four. 83.1(g) A Minnesota job creation fund business must demonstrate reasonable progress on 83.2its capital investment expenditures within six months following designation as a Minnesota 83.3job creation fund business to ensure that the capital investment goal in the agreement under 83.4subdivision 1 will be met. Businesses not making reasonable progress will not be eligible 83.5for benefits under the submitted application and will need to work with the local government 83.6unit to resubmit a new application and request to be a Minnesota job creation fund business. 83.7Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not 83.8be considered a default of the business subsidy agreement. 83.9    Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read: 83.10    Subd. 6. Job creation award. (a) A qualified Minnesota job creation fund business is 83.11eligible for an annual award for each new job created and maintained by the business using 83.12the following schedule: $1,000 for each job position paying annual wages at least $26,000 83.13but less than $35,000; $2,000 for each job position paying at least $35,000 but less than 83.14$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals 83.15under the agreement provided under subdivision 1. new text begin These awards are increased by $1,000 new text end 83.16 new text begin if the business is located outside the metropolitan area as defined in section 200.02, new text end 83.17 new text begin subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, new text end 83.18 new text begin women, or persons with a disability. new text end 83.19(b) The job creation award schedule must be adjusted annually using the percentage 83.20increase in the federal poverty level for a family of four. 83.21(c) Minnesota job creation fund businesses seeking an award credit provided under 83.22subdivision 4 must submit forms and applications to the Department of Employment and 83.23Economic Development as prescribed by the commissioner. 83.24    Sec. 8. new text begin [116J.9922] CENTRAL MINNESOTA OPPORTUNITY GRANT PROGRAM. new text end 83.25     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms have new text end 83.26 new text begin the meanings given. new text end 83.27 new text begin (b) "Commissioner" means the commissioner of employment and economic development. new text end 83.28 new text begin (c) "Community initiative" means a nonprofit organization which provides services to new text end 83.29 new text begin central Minnesota communities of color in one or more of the program areas listed in new text end 83.30 new text begin subdivision 4, paragraph (a). new text end 83.31 new text begin (d) "Foundation" means the Central Minnesota Community Foundation. new text end 84.1     new text begin Subd. 2. new text end new text begin Establishment. new text end new text begin The commissioner shall establish a central Minnesota new text end 84.2 new text begin opportunity grant program, administered by the foundation, to identify and support new text end 84.3 new text begin community initiatives in the St. Cloud area that enhance long-term economic self-sufficiency new text end 84.4 new text begin by improving education, housing, and economic outcomes for central Minnesota communities new text end 84.5 new text begin of color. new text end 84.6     new text begin Subd. 3. new text end new text begin Grant to the Central Minnesota Community Foundation. new text end new text begin The commissioner new text end 84.7 new text begin shall award all grant funds to the foundation, which shall administer the central Minnesota new text end 84.8 new text begin opportunity grant program. The foundation may use up to five percent of grant funds for new text end 84.9 new text begin administrative costs. new text end 84.10     new text begin Subd. 4. new text end new text begin Grants to community initiatives. new text end new text begin (a) The foundation must award funds through new text end 84.11 new text begin a competitive grant process to community initiatives that will provide services, either alone new text end 84.12 new text begin or in partnership with another nonprofit organization, in one or more of the following areas: new text end 84.13 new text begin (1) economic development, including but not limited to programs to foster new text end 84.14 new text begin entrepreneurship or small business development; new text end 84.15 new text begin (2) education, including but not limited to programs to encourage civic engagement or new text end 84.16 new text begin provide youth after-school or recreation programs; or new text end 84.17 new text begin (3) housing, including but not limited to, programs to prevent and respond to new text end 84.18 new text begin homelessness or to provide access to loans or grants for housing stability and affordability. new text end 84.19 new text begin (b) To receive grant funds, a community initiative must submit a written application to new text end 84.20 new text begin the foundation, using a form developed by the foundation. This grant application must new text end 84.21 new text begin include: new text end 84.22 new text begin (1) a description of the activities that will be funded by the grant; new text end 84.23 new text begin (2) an estimate of the cost of each grant activity; new text end 84.24 new text begin (3) the total cost of the project; new text end 84.25 new text begin (4) the sources and amounts of nonstate funds supplementing the grant; new text end 84.26 new text begin (5) how the project aims to achieve stated outcomes in areas including improved job new text end 84.27 new text begin training; workforce development; small business support; early childhood, kindergarten new text end 84.28 new text begin through grade 12, and higher education achievement; and access to housing, including loans; new text end 84.29 new text begin and new text end 84.30 new text begin (6) any additional information requested by the foundation. new text end 84.31 new text begin (c) In awarding grants under this subdivision, the foundation shall give weight to new text end 84.32 new text begin applications from organizations that demonstrate: new text end 85.1 new text begin (1) a history of successful provision of the services listed in paragraph (a); and new text end 85.2 new text begin (2) a history of successful fund-raising from private sources for such services. new text end 85.3 new text begin (d) In evaluating grant applications, the foundation shall not consider the composition new text end 85.4 new text begin of a community initiative's governing board. new text end 85.5 new text begin (e) Grant funds may be used by a community initiative for the following purposes: new text end 85.6     new text begin (1) operating costs, including but not limited to staff, office space, computers, software, new text end 85.7 new text begin and Web development and maintenance services; new text end 85.8 new text begin (2) program costs; new text end 85.9 new text begin (3) travel within Minnesota; new text end 85.10 new text begin (4) consultants directly related to and necessary for delivering services listed in paragraph new text end 85.11 new text begin (a); and new text end 85.12 new text begin (5) capacity building. new text end 85.13     new text begin Subd. 5. new text end new text begin Reports to the legislature. new text end new text begin By January 15, 2019, and each January 15 thereafter new text end 85.14 new text begin through 2022, the commissioner must submit a report to the chairs and ranking minority new text end 85.15 new text begin members of the house of representatives and the senate committees with jurisdiction over new text end 85.16 new text begin economic development that details the use of grant funds. This report must include data on new text end 85.17 new text begin the number of individuals served and, to the extent practical, measures of progress toward new text end 85.18 new text begin achieving the outcomes stated in subdivision 4, paragraph (b), clause (5). new text end 85.19    Sec. 9. Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read: 85.20    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have 85.21the meanings given them in this subdivision. 85.22    (b) "Commissioner" means the commissioner of employment and economic development. 85.23    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the time 85.24employment ceased or was working in the state at the time employment ceased and: 85.25    (1) has been permanently separated or has received a notice of permanent separation 85.26from public or private sector employment and is eligible for or has exhausted entitlement 85.27to unemployment benefits, and is unlikely to return to the previous industry or occupation; 85.28    (2) has been long-term unemployed and has limited opportunities for employment or 85.29reemployment in the same or a similar occupation in the area in which the individual resides, 85.30including older individuals who may have substantial barriers to employment by reason of 85.31age; 86.1    (3) has been terminated or has received a notice of termination of employment as a result 86.2of a plant closing or a substantial layoff at a plant, facility, or enterprise; 86.3    (4) has been self-employed, including farmers and ranchers, and is unemployed as a 86.4result of general economic conditions in the community in which the individual resides or 86.5because of natural disasters; 86.6    (5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1] 86.7    (6) new text begin (5) new text end is a veteran as defined by section 197.447, has been discharged or released from 86.8active duty under honorable conditions within the last 36 months, and (i) is unemployed or 86.9(ii) is employed in a job verified to be below the skill level and earning capacity of the 86.10veteran; 86.11(7) new text begin (6) new text end is an individual determined by the United States Department of Labor to be 86.12covered by trade adjustment assistance under United States Code, title 19, sections 2271 to 86.132331, as amended; or 86.14    (8) new text begin (7) new text end is a displaced homemaker. A "displaced homemaker" is an individual who has 86.15spent a substantial number of years in the home providing homemaking service and (i) has 86.16been dependent upon the financial support of another; and now due to divorce, separation, 86.17death, or disability of that person, must find employment to self support; or (ii) derived the 86.18substantial share of support from public assistance on account of dependents in the home 86.19and no longer receives such support. To be eligible under this clause, the support must have 86.20ceased while the worker resided in Minnesota. 86.21 new text begin For the purposes of this section, "dislocated worker" does not include an individual who new text end 86.22 new text begin was an employee, at the time employment ceased, of a political committee, political fund, new text end 86.23 new text begin principal campaign committee, or party unit, as those terms are used in chapter 10A, or an new text end 86.24 new text begin organization required to file with the federal elections commission. new text end 86.25    (d) "Eligible organization" means a state or local government unit, nonprofit organization, 86.26community action agency, business organization or association, or labor organization. 86.27    (e) "Plant closing" means the announced or actual permanent shutdown of a single site 86.28of employment, or one or more facilities or operating units within a single site of 86.29employment. 86.30    (f) "Substantial layoff" means a permanent reduction in the workforce, which is not a 86.31result of a plant closing, and which results in an employment loss at a single site of 86.32employment during any 30-day period for at least 50 employees excluding those employees 86.33that work less than 20 hours per week. 87.1    Sec. 10. Minnesota Statutes 2016, section 116L.665, is amended to read: 87.2116L.665 WORKFORCE DEVELOPMENT COUNCIL new text begin BOARD new text end . 87.3    Subdivision 1. Creation. The governor's Workforce Development Council is created 87.4under the authority of the Workforce Investment Act, United States Code, title 29, section 87.52801, et seq. Local workforce development councils are authorized under the Workforce 87.6Investment Act. The governor's Workforce Development Council serves as Minnesota's 87.7Workforce Investment Board for the purposes of the federal Workforce Investment Act. new text begin new text end 87.8 new text begin Board serves as Minnesota's state workforce development board for the purposes of the new text end 87.9 new text begin federal Workforce Innovation and Opportunity Act, United States Code, title 29, section new text end 87.10 new text begin 3111, and must perform the duties under that act. new text end 87.11    Subd. 2. Membership. new text begin (a) new text end The governor's Workforce Development Council new text begin Board new text end is 87.12composed of 31 members appointed by the governor. The members may be removed pursuant 87.13to section . In selecting the representatives of the council new text begin board new text end , the governor shall 87.14ensure that 50 percent new text begin a majority new text end of the members come from nominations provided by local 87.15workforce councils. Local education representatives shall come from nominations provided 87.16by local education to employment partnerships. The 31 members shall represent the following 87.17sectors: new text begin the private sector, pursuant to United States Code, title 29, section 3111. For the new text end 87.18 new text begin public members, membership terms, compensation of members, and removal of members new text end 87.19 new text begin are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the new text end 87.20 new text begin membership should be balanced as to gender and ethnic diversity. new text end 87.21(a) State agencies: the following individuals shall serve on the council: 87.22(1) commissioner of the Minnesota Department of Employment and Economic 87.23Development; 87.24(2) commissioner of the Minnesota Department of Education; and 87.25(3) commissioner of the Minnesota Department of Human Services. 87.26(b) Business and industry: six individuals shall represent the business and industry sectors 87.27of Minnesota. 87.28(c) Organized labor: six individuals shall represent labor organizations of Minnesota. 87.29(d) Community-based organizations: four individuals shall represent community-based 87.30organizations of Minnesota. Community-based organizations are defined by the Workforce 87.31Investment Act as private nonprofit organizations that are representative of communities 87.32or significant segments of communities and that have demonstrated expertise and 87.33effectiveness in the field of workforce investment and may include entities that provide job 88.1training services, serve youth, serve individuals with disabilities, serve displaced 88.2homemakers, union-related organizations, employer-related nonprofit organizations, and 88.3organizations serving nonreservation Indians and tribal governments. 88.4(e) Education: six individuals shall represent the education sector of Minnesota as follows: 88.5(1) one individual shall represent local public secondary education; 88.6(2) one individual shall have expertise in design and implementation of school-based 88.7service-learning; 88.8(3) one individual shall represent leadership of the University of Minnesota; 88.9(4) one individual shall represent secondary/postsecondary vocational institutions; 88.10(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and 88.11Universities; and 88.12(6) one individual shall have expertise in agricultural education. 88.13(f) Other: two individuals shall represent other constituencies including: 88.14(1) units of local government; and 88.15(2) applicable state or local programs. 88.16The speaker and the minority leader of the house of representatives shall each appoint 88.17a representative to serve as an ex officio member of the council. The majority and minority 88.18leaders of the senate shall each appoint a senator to serve as an ex officio member of the 88.19council. 88.20The governor shall appoint one individual representing public libraries, one individual 88.21with expertise in assisting women in obtaining employment in high-wage, high-demand, 88.22nontraditional occupations, and one individual representing adult basic education programs 88.23to serve as nonvoting advisors to the council. 88.24 new text begin (b) No person shall serve as a member of more than one category described in paragraph new text end 88.25 new text begin (c). new text end 88.26 new text begin (c) Voting members shall consist of the following: new text end 88.27 new text begin (1) the governor or the governor's designee; new text end 88.28 new text begin (2) two members of the house of representatives, one appointed by the speaker of the new text end 88.29 new text begin house and one appointed by the minority leader of the house of representatives; new text end 89.1 new text begin (3) two members of the senate, one appointed by the senate majority leader and one new text end 89.2 new text begin appointed by the senate minority leader; new text end 89.3 new text begin (4) a majority of the members must be representatives of businesses in the state appointed new text end 89.4 new text begin by the governor who: new text end 89.5 new text begin (i) are owners of businesses, chief executives, or operating officers of businesses, or new text end 89.6 new text begin other business executives or employers with optimum policy-making or hiring authority new text end 89.7 new text begin and who, in addition, may be members of a local board under United States Code, title 29, new text end 89.8 new text begin section 3122(b)(2)(A)(i); new text end 89.9 new text begin (ii) represent businesses, including small businesses, or organizations representing new text end 89.10 new text begin businesses that provide employment opportunities that, at a minimum, include high-quality, new text end 89.11 new text begin work-relevant training and development in in-demand industry sectors or occupations in new text end 89.12 new text begin the state; and new text end 89.13 new text begin (iii) are appointed from individuals nominated by state business organizations and new text end 89.14 new text begin business trade associations; new text end 89.15 new text begin (5) six representatives of labor organizations appointed by the governor, including: new text end 89.16 new text begin (i) representatives of labor organizations who have been nominated by state labor new text end 89.17 new text begin federations; and new text end 89.18 new text begin (ii) a member of a labor organization or a training director from a joint labor organization; new text end 89.19 new text begin (6) commissioners of the state agencies with primary responsibility for core programs new text end 89.20 new text begin identified within the state plan including: new text end 89.21 new text begin (i) the Department of Employment and Economic Development; new text end 89.22 new text begin (ii) the Department of Education; and new text end 89.23 new text begin (iii) the Department of Human Services; new text end 89.24 new text begin (7) two chief elected officials, appointed by the governor, collectively representing cities new text end 89.25 new text begin and counties; new text end 89.26 new text begin (8) two representatives who are people of color or people with disabilities, appointed new text end 89.27 new text begin by the governor, of community-based organizations that have demonstrated experience and new text end 89.28 new text begin expertise in addressing the employment, training, or education needs of individuals with new text end 89.29 new text begin barriers to employment; and new text end 90.1 new text begin (9) four officials responsible for education programs in the state, appointed by the new text end 90.2 new text begin governor, including chief executive officers of community colleges and other institutions new text end 90.3 new text begin of higher education, including: new text end 90.4 new text begin (i) the chancellor of the Minnesota State Colleges and Universities; new text end 90.5 new text begin (ii) the president of the University of Minnesota; new text end 90.6 new text begin (iii) a president from a private postsecondary school; and new text end 90.7 new text begin (iv) a representative of career and technical education. new text end 90.8 new text begin (d) The nonvoting members of the board shall be appointed by the governor and consist new text end 90.9 new text begin of one of each of the following: new text end 90.10 new text begin (1) a representative of Adult Basic Education; new text end 90.11 new text begin (2) a representative of public libraries; new text end 90.12 new text begin (3) a person with expertise in women's economic security; new text end 90.13 new text begin (4) the chair or executive director of the Minnesota Workforce Council Association; new text end 90.14 new text begin (5) the commissioner of labor and industry; new text end 90.15 new text begin (6) the commissioner of the Office of Higher Education; new text end 90.16 new text begin (7) the commissioner of corrections; new text end 90.17 new text begin (8) the commissioner of management and budget; new text end 90.18 new text begin (9) two representatives of community-based organizations who are people of color or new text end 90.19 new text begin people with disabilities who have demonstrated experience and expertise in addressing the new text end 90.20 new text begin employment, training, and education needs of individuals with barriers to employment; new text end 90.21 new text begin (10) a representative of secondary, postsecondary, or career-technical education; new text end 90.22 new text begin (11) a representative of school-based service learning; new text end 90.23 new text begin (12) a representative of the Council on Asian-Pacific Minnesotans; new text end 90.24 new text begin (13) a representative of the Minnesota Council on Latino Affairs; new text end 90.25 new text begin (14) a representative of the Council for Minnesotans of African Heritage; new text end 90.26 new text begin (15) a representative of the Minnesota Indian Affairs Council; new text end 90.27 new text begin (16) a representative of the Minnesota State Council on Disability; and new text end 90.28 new text begin (17) a representative of the Office on the Economic Status of Women. new text end 91.1(g) Appointment: new text begin (e) new text end Each member shall be appointed for a term of three years from the 91.2first day of January or July immediately following their appointment. Elected officials shall 91.3forfeit their appointment if they cease to serve in elected office. 91.4(h) Members of the council are compensated as provided in section 15.059, subdivision 91.53 . 91.6    Subd. 2a. Council new text begin Board new text end meetings new text begin ; chair new text end . (a) If compliance with section is 91.7impractical, the Governor's Workforce Development Council may conduct a meeting of its 91.8members by telephone or other electronic means so long as the following conditions are 91.9met: 91.10(1) all members of the council participating in the meeting, wherever their physical 91.11location, can hear one another and can hear all discussion and testimony; 91.12(2) members of the public present at the regular meeting location of the council can hear 91.13clearly all discussion and testimony and all votes of members of the council and, if needed, 91.14receive those services required by sections and ; 91.15(3) at least one member of the council is physically present at the regular meeting location; 91.16and 91.17(4) all votes are conducted by roll call, so each member's vote on each issue can be 91.18identified and recorded. 91.19(b) Each member of the council participating in a meeting by telephone or other electronic 91.20means is considered present at the meeting for purposes of determining a quorum and 91.21participating in all proceedings. 91.22(c) If telephone or other electronic means is used to conduct a meeting, the council, to 91.23the extent practical, shall allow a person to monitor the meeting electronically from a remote 91.24location. The council may require the person making such a connection to pay for 91.25documented marginal costs that the council incurs as a result of the additional connection. 91.26(d) If telephone or other electronic means is used to conduct a regular, special, or 91.27emergency meeting, the council shall provide notice of the regular meeting location, of the 91.28fact that some members may participate by telephone or other electronic means, and of the 91.29provisions of paragraph (c). The timing and method of providing notice is governed by 91.30section . 91.31 new text begin (a) The board shall hold regular in-person meetings at least quarterly and as often as new text end 91.32 new text begin necessary to perform the duties outlined in the statement of authority and the board's bylaws. new text end 92.1 new text begin Meetings shall be called by the chair. Special meetings may be called as needed. Notices new text end 92.2 new text begin of all meetings shall be made at least 48 hours before the meeting date. new text end 92.3 new text begin (b) The governor shall designate a chair from among the appointed business representative new text end 92.4 new text begin voting members. The chair shall approve an agenda for each meeting. Members shall submit new text end 92.5 new text begin a written request for consideration of an agenda item no less than 24 hours in advance of new text end 92.6 new text begin the meeting. Members of the public may submit a written request within 48 hours of a new text end 92.7 new text begin meeting to be considered for inclusion in the agenda. Members of the public attending a new text end 92.8 new text begin meeting of the board may address the board only with the approval or at the request of the new text end 92.9 new text begin chair. new text end 92.10 new text begin (c) All meeting notices must be posted on the board's Web site. All meetings of the board new text end 92.11 new text begin and committees must be open to the public. The board must make available to the public, new text end 92.12 new text begin on a regular basis through electronic means and open meetings, information regarding the new text end 92.13 new text begin activities of the board, information regarding membership, and, on request, minutes of new text end 92.14 new text begin formal meetings of the board. new text end 92.15 new text begin (d) For the purpose of conducting business before the board at a duly called meeting, a new text end 92.16 new text begin simple majority of the voting members, excluding any vacancies, constitutes a quorum. new text end 92.17    Subd. 3. Purpose; duties. The governor's Workforce Development Council shall replace 92.18the governor's Job Training Council and assume all of its requirements, duties, and 92.19responsibilities under the Workforce Investment Act. Additionally, the Workforce 92.20Development Council shall assume the following duties and responsibilities: 92.21(a) Review the provision of services and the use of funds and resources under applicable 92.22federal human resource programs and advise the governor on methods of coordinating the 92.23provision of services and the use of funds and resources consistent with the laws and 92.24regulations governing the programs. For purposes of this section, applicable federal and 92.25state human resource programs mean the: 92.26(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.; 92.27(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States 92.28Code, title 20, section 2301, et seq.; 92.29(3) Adult Education Act, United States Code, title 20, section 1201, et seq.; 92.30(4) Wagner-Peyser Act, United States Code, title 29, section 49; 92.31(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF); 93.1(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp 93.2Employment and Training Program, United States Code, title 7, section 2015(d)(4); and 93.3(7) programs defined in section 116L.19, subdivision 5. 93.4Additional federal and state programs and resources can be included within the scope 93.5of the council's duties if recommended by the governor after consultation with the council. 93.6(b) Review federal, state, and local education, postsecondary, job skills training, and 93.7youth employment programs, and make recommendations to the governor and the legislature 93.8for establishing an integrated seamless system for providing education and work skills 93.9development services to learners and workers of all ages. 93.10(c) Advise the governor on the development and implementation of statewide and local 93.11performance standards and measures relating to applicable federal human resource programs 93.12and the coordination of performance standards and measures among programs. 93.13(d) Promote education and employment transitions programs and knowledge and skills 93.14of entrepreneurship among employers, workers, youth, and educators, and encourage 93.15employers to provide meaningful work-based learning opportunities. 93.16(e) Evaluate and identify exemplary education and employment transitions programs 93.17and provide technical assistance to local partnerships to replicate the programs throughout 93.18the state. 93.19(f) Advise the governor on methods to evaluate applicable federal human resource 93.20programs. 93.21(g) Sponsor appropriate studies to identify human investment needs in Minnesota and 93.22recommend to the governor goals and methods for meeting those needs. 93.23(h) Recommend to the governor goals and methods for the development and coordination 93.24of a human resource system in Minnesota. 93.25(i) Examine federal and state laws, rules, and regulations to assess whether they present 93.26barriers to achieving the development of a coordinated human resource system. 93.27(j) Recommend to the governor and to the federal government changes in state or federal 93.28laws, rules, or regulations concerning employment and training programs that present barriers 93.29to achieving the development of a coordinated human resource system. 93.30(k) Recommend to the governor and to the federal government waivers of laws and 93.31regulations to promote coordinated service delivery. 94.1(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic 94.2plan which details methods for meeting Minnesota's human investment needs and for 94.3developing and coordinating a state human resource system. 94.4(m) Provide the commissioner of employment and economic development and the 94.5committees of the legislature with responsibility for economic development with 94.6recommendations provided to the governor under this subdivision. 94.7(n) In consultation with local workforce councils and the Department of Employment 94.8and Economic Development, develop an ongoing process to identify and address local gaps 94.9in workforce services. 94.10    Subd. 4. Executive committee duties. The executive committee must, with advice and 94.11input of local workforce councils new text begin boards new text end and other stakeholders as appropriate, develop 94.12performance standards for the state workforce centers. By January 15, 2002 new text begin 2019 new text end , and each 94.13odd-numbered year thereafter, the executive committee shall submit a report to the senate 94.14and house of representatives committees with jurisdiction over workforce development 94.15programs regarding the performance and outcomes of the workforce centers. The report 94.16must provide recommendations regarding workforce center funding levels and sources, 94.17program changes, and administrative changes. 94.18    Subd. 5. Subcommittees. The chair of the Workforce Development Council new text begin Board new text end may 94.19establish subcommittees in order to carry out the duties and responsibilities of the council new text begin new text end 94.20 new text begin board new text end . 94.21    Subd. 6. Staffing. The Department of new text begin commissioner of new text end employment and economic 94.22development must provide staff, including but not limited to professional, technical, and 94.23clerical staff new text begin to the board new text end necessary to perform the duties assigned to the Minnesota 94.24Workforce Development Council. All staff report to the commissioner new text begin carry out the duties new text end 94.25 new text begin of the board new text end . The council may ask for assistance from other units of new text begin At the request of the new text end 94.26 new text begin board, new text end state government as new text begin departments and agencies must provide the board with the new text end 94.27 new text begin assistance new text end it requires in order to fulfill its duties and responsibilities. 94.28    Subd. 7. Expiration. The council new text begin board new text end expires if there is no federal funding for the 94.29human resource programs within the scope of the council's new text begin board's new text end duties. 94.30    Subd. 8. Funding. The commissioner shall develop recommendations on a funding 94.31formula for allocating Workforce Investment Act funds to the council with a minimum 94.32allocation of new text begin employment and economic development must provide at least new text end $350,000 per new text begin new text end 94.33 new text begin each fiscal new text end year. The commissioner shall report the funding formula recommendations to 95.1the legislature by January 15, 2011 new text begin from existing agency resources to the board for staffing new text end 95.2 new text begin and administrative expenses new text end . 95.3    Sec. 11. Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read: 95.4    Subd. 4. Low-income area. "Low-income area" means: 95.5(1) Minneapolis, St. Paul; 95.6(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2, 95.7that have an average income new text begin a median income for a family of four new text end that is below 80 percent 95.8of the median income for a four-person family as of the latest report by the United States 95.9Census Bureau; and 95.10(3) the area outside the metropolitan area. 95.11    Sec. 12. Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read: 95.12    Subd. 4. Reports. The board new text begin department new text end shall submit an annual report to the legislature 95.13of an accounting of loans made under section 116M.18, including information on loans 95.14made, the number of jobs created by the program, the impact on low-income areas, and 95.15recommendations concerning minority business development and jobs for persons in 95.16low-income areas. 95.17    Sec. 13. Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read: 95.18    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand, loans shall 95.19be made so that an approximately equal dollar amount of loans are made to businesses in 95.20the metropolitan area as in the nonmetropolitan area. After September 30 new text begin March 31 new text end of each 95.21calendar new text begin fiscal new text end year, the department may allow loans to be made anywhere in the state 95.22without regard to geographic area. 95.23    Sec. 14. Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read: 95.24    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans made 95.25by nonprofit corporations under the program. 95.26(b) Loans must be made to businesses that are not likely to undertake a project for which 95.27loans are sought without assistance from the program. 95.28(c) A loan must be used to support a business owned by a minority or a low-income 95.29person, woman, veteran, or a person with disabilities. Priority must be given for loans to 95.30the lowest income areas. 96.1(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000. 96.2(e) The state contribution must be matched by at least an equal amount of new private 96.3investment. 96.4(f) A loan may not be used for a retail development project. 96.5(g) The business must agree to work with job referral networks that focus on minority 96.6and low-income applicants. 96.7 new text begin (h) Up to ten percent of a loan's principal amount may be forgiven if the department new text end 96.8 new text begin approves and the borrower has met lender criteria including being current with all payments. new text end 96.9    Sec. 15. Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read: 96.10    Subd. 4a. Microenterprise loan. new text begin (a) new text end Program grants may be used to make microenterprise 96.11loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans 96.12are subject to this section except that: 96.13(1) they may also be made to qualified retail businesses; 96.14(2) they may be made for a minimum of $5,000 and a maximum of $35,000; 96.15(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum 96.16of $50,000; and 96.17(4) they do not require a match. 96.18 new text begin (b) Up to ten percent of a loan's principal amount may be forgiven if the department new text end 96.19 new text begin approves and the borrower has met lender criteria including being current with all payments. new text end 96.20    Sec. 16. Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read: 96.21    Subd. 8. Reporting requirements. A nonprofit corporation that receives a program 96.22grant shall: 96.23(1) submit an annual report to the board and department by March 30 new text begin February 15 new text end of 96.24each year that includes a description of businesses supported by the grant program, an 96.25account of loans made during the calendar year, the program's impact on minority business 96.26enterprises and job creation for minority persons and low-income persons, the source and 96.27amount of money collected and distributed by the program, the program's assets and 96.28liabilities, and an explanation of administrative expenses; and 97.1(2) provide for an independent annual audit to be performed in accordance with generally 97.2accepted accounting practices and auditing standards and submit a copy of each annual 97.3audit report to the department. 97.4    Sec. 17. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter 97.5189, article 7, section 8, is amended to read: 97.6    Sec. 14. ASSIGNED RISK TRANSFER. 97.7(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an 97.8audit that there is an excess surplus in the assigned risk plan created under Minnesota 97.9Statutes, section 79.252, the commissioner of management and budget shall transfer the 97.10amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer 97.11occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 97.12paragraph (a), clause (1). This is a onetime transfer. 97.13(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 97.14determines on the basis of an audit that there is an excess surplus in the assigned risk plan 97.15created under Minnesota Statutes, section 79.252, the commissioner of management and 97.16budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, 97.17to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. 97.18This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, 97.19subdivision 1 , paragraph (a), clause (1), but after the transfer new text begin transfers new text end authorized in paragraph new text begin new text end 97.20 new text begin paragraphs new text end (a) new text begin and (f) new text end . The total amount authorized for all transfers under this paragraph 97.21must not exceed $24,100,000. This paragraph expires the day following the transfer in which 97.22the total amount transferred under this paragraph to the Minnesota minerals 21st century 97.23fund equals $24,100,000. 97.24(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an 97.25audit that there is an excess surplus in the assigned risk plan created under Minnesota 97.26Statutes, section 79.252, the commissioner of management and budget shall transfer the 97.27amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 97.28occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 97.29paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a 97.30transfer occurs under this paragraph, the amount transferred is appropriated from the general 97.31fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 97.3215. Both the transfer and appropriation under this paragraph are onetime. 97.33(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an 97.34audit that there is an excess surplus in the assigned risk plan created under Minnesota 98.1Statutes, section 79.252, the commissioner of management and budget shall transfer the 98.2amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 98.3occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 98.4paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a 98.5transfer occurs under this paragraph, the amount transferred is appropriated from the general 98.6fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 98.715. Both the transfer and appropriation under this paragraph are onetime. 98.8(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 98.9management and budget shall transfer to the general fund, any unencumbered or unexpended 98.10balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or 98.11the date the commissioner of commerce determines that an excess surplus in the assigned 98.12risk plan does not exist, whichever occurs earlier. 98.13 new text begin (f) By June 30, 2017, and each year thereafter, if the commissioner of commerce new text end 98.14 new text begin determines on the basis of an audit that there is an excess surplus in the assigned risk plan new text end 98.15 new text begin created under Minnesota Statutes, section 79.252, the commissioner of management and new text end 98.16 new text begin budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each year, new text end 98.17 new text begin to the rural policy and development center fund under Minnesota Statutes, section 116J.4221. new text end 98.18 new text begin This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes, new text end 98.19 new text begin section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all new text end 98.20 new text begin transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day new text end 98.21 new text begin following the transfer in which the total amount transferred under this paragraph to the rural new text end 98.22 new text begin policy and development center fund equals $2,000,000. new text end new text begin new text end 98.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 98.24    Sec. 18. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is 98.25amended to read: 98.26 Subd. 6.Vocational Rehabilitation 98.27 Appropriations by Fund 98.28 General 22,611,000 21,611,000 98.29 98.30 Workforce Development 7,830,000 7,830,000 98.31(a) $10,800,000 each year is from the general 98.32fund for the state's vocational rehabilitation 98.33program under Minnesota Statutes, chapter 98.34268A. 99.1(b) $2,261,000 each year is from the general 99.2fund for grants to centers for independent 99.3living under Minnesota Statutes, section 99.4268A.11 . 99.5(c) $5,745,000 each year from the general fund 99.6and $6,830,000 each year from the workforce 99.7development fund are for extended 99.8employment services for persons with severe 99.9disabilities under Minnesota Statutes, section 99.10268A.15 . 99.11(d) $250,000 in fiscal year 2016 and $250,000 99.12in fiscal year 2017 are for rate increases to 99.13providers of extended employment services 99.14for persons with severe disabilities under 99.15Minnesota Statutes, section 268A.15. This 99.16appropriation is added to the agency's base. 99.17(e) $2,555,000 each year is from the general 99.18fund for grants to programs that provide 99.19employment support services to persons with 99.20mental illness under Minnesota Statutes, 99.21sections 268A.13 and 268A.14. 99.22(f) $1,000,000 each year is from the workforce 99.23development fund for grants under Minnesota 99.24Statutes, section 268A.16, for employment 99.25services for persons, including transition-aged 99.26youth, who are deaf, deafblind, or 99.27hard-of-hearing. If the amount in the first year 99.28is insufficient, the amount in the second year 99.29is available in the first year. 99.30(g) $1,000,000 in fiscal year 2016 is for a 99.31grant to Assistive Technology of Minnesota, 99.32a statewide nonprofit organization that is 99.33exclusively dedicated to the issues of access 99.34to and the acquisition of assistive technology. 100.1The purpose of the grant is to acquire assistive 100.2technology and to work in tandem with 100.3individuals using this technology to create 100.4career paths new text begin Assistive Technology of new text end 100.5 new text begin Minnesota must use the funds to provide new text end 100.6 new text begin low-interest loans to individuals of all ages new text end 100.7 new text begin and types of disabilities to purchase assistive new text end 100.8 new text begin technology and employment-related new text end 100.9 new text begin equipment new text end . This is a onetime appropriation new text begin new text end 100.10 new text begin and is available until June 30, 2019 new text end . 100.11(h) For purposes of this subdivision, 100.12Minnesota Diversified Industries, Inc. is an 100.13eligible provider of services for persons with 100.14severe disabilities under Minnesota Statutes, 100.15section 268A.15. 100.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from July 1, 2015. new text end 100.17    Sec. 19. Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read: 100.18    Subd. 3. Qualification requirements. To qualify for assistance under this section, a 100.19business must: 100.20(1) be located within one of the following municipalities surrounding Lake Mille Lacs: 100.21(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of 100.22Roosevelt; 100.23(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of 100.24Malmo, or township of Lakeside; or 100.25(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of 100.26East Side, township of Isle Harbor, township of South Harbor, or township of Kathio; 100.27(2) document a reduction of at least ten new text begin five new text end percent in gross receipts in any two-year 100.28period since 2010; and 100.29(3) be a business in one of the following industries, as defined within the North American 100.30Industry Classification System: accommodation, restaurants, bars, amusement and recreation, 100.31food and beverages retail, sporting goods, miscellaneous retail, general retail, museums, 100.32historical sites, health and personal care, gas station, general merchandise, business and 101.1professional membership, movies, or nonstore retailer, as determined by Mille Lacs County 101.2in consultation with the commissioner of employment and economic development. 101.3    Sec. 20. Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to 101.4read: 101.5EFFECTIVE DATE.This section, except for subdivision 4, is effective July 1, 2016, 101.6and expires June 30, 2017 new text begin 2018 new text end . Subdivision 4 is effective July 1, 2016, and expires on the 101.7date the last loan is repaid or forgiven as provided under this section. 101.8    Sec. 21. new text begin EMERGING ENTREPRENEUR PROGRAM APPROPRIATIONS new text end 101.9 new text begin CANCELLATIONS. new text end 101.10 new text begin All unspent funds, estimated to be $376,000, appropriated in Laws 2016, chapter 189, new text end 101.11 new text begin article 7, section 2, subdivision 2, paragraph (h), clause (7), and Laws 2016, chapter 189, new text end 101.12 new text begin article 12, section 2, subdivision 2, paragraph (p), are canceled to the general fund. new text end 101.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 101.14    Sec. 22. new text begin GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT. new text end 101.15     new text begin Subdivision 1. new text end new text begin Creation. new text end new text begin The Minnesota Design Center at the University of Minnesota new text end 101.16 new text begin shall partner with relevant organizations in selected communities within greater Minnesota new text end 101.17 new text begin to establish a pilot project for community design. The pilot project shall identify current new text end 101.18 new text begin and future opportunities for rural development, create designs, seek funding from existing new text end 101.19 new text begin sources, and assist with the implementation of economically, environmentally, and culturally new text end 101.20 new text begin sensitive projects that respond to current community conditions, needs, capabilities, and new text end 101.21 new text begin aspirations in support of the selected communities. For the purposes of this section, "greater new text end 101.22 new text begin Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault, new text end 101.23 new text begin Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley, new text end 101.24 new text begin Steele, Wabasha, Waseca, Watonwan, and Winona. new text end 101.25     new text begin Subd. 2. new text end new text begin Community selection. new text end new text begin In order to be considered for inclusion in the pilot new text end 101.26 new text begin project, communities with fewer than 12,000 residents within the counties listed in new text end 101.27 new text begin subdivision 1 must submit a letter of interest to the Minnesota Design Center. The Minnesota new text end 101.28 new text begin Design Center may choose up to ten communities for participation in the pilot project. new text end 101.29     new text begin Subd. 3. new text end new text begin Pilot project activities. new text end new text begin Among other activities, the Minnesota Design Center, new text end 101.30 new text begin in partnership with relevant organizations within the selected communities, shall: new text end 101.31 new text begin (1) assess community capacity to engage in design, development, and implementation; new text end 102.1 new text begin (2) create community and project designs that respond to a community's culture and new text end 102.2 new text begin needs, reinforce its identity as a special place, and support its future aspirations; new text end 102.3 new text begin (3) create an implementation strategy; and new text end 102.4 new text begin (4) build capacity to implement design work by identifying potential funding strategies new text end 102.5 new text begin and sources and assisting in grant writing to secure funding. new text end 102.6    Sec. 23. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT; new text end 102.7 new text begin MANDATED REPORT HOLIDAY. new text end 102.8 new text begin (a) Notwithstanding any law to the contrary, any report required by state law from the new text end 102.9 new text begin Department of Employment and Economic Development that is due in fiscal year 2018 or new text end 102.10 new text begin 2019 is optional. The commissioner of employment and economic development may produce new text end 102.11 new text begin any reports at the commissioner's discretion or as may be required by federal law. new text end 102.12 new text begin (b) This section does not apply to workforce programs outcomes reporting under new text end 102.13 new text begin Minnesota Statutes, section 116L.98, or the agency activity and expenditure report under new text end 102.14 new text begin article 12, section 3. new text end 102.15    Sec. 24. new text begin ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA new text end 102.16 new text begin INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS. new text end 102.17 new text begin (a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or new text end 102.18 new text begin statutory city, county, or town that has uncommitted money received from repayment of new text end 102.19 new text begin funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20 new text end 102.20 new text begin percent of the balance of that money to the state general fund before June 30, 2018. Any new text end 102.21 new text begin local entity that does so may then use the remaining 80 percent of the uncommitted money new text end 102.22 new text begin as a general purpose aid for any lawful expenditure. new text end 102.23 new text begin (b) By February 15, 2019, a home rule charter or statutory city, county, or town that new text end 102.24 new text begin exercises the option under paragraph (a) shall submit to the chairs of the legislative new text end 102.25 new text begin committees with jurisdiction over economic development policy and finance an accounting new text end 102.26 new text begin and explanation of the use and distribution of the funds. new text end 102.27    Sec. 25. new text begin GETTING TO WORK GRANT PROGRAM. new text end 102.28     new text begin Subdivision 1. new text end new text begin Creation. new text end new text begin The commissioner of employment and economic development new text end 102.29 new text begin shall make grants to nonprofit organizations to establish and operate programs under this new text end 102.30 new text begin section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain new text end 102.31 new text begin or maintain employment. new text end 103.1     new text begin Subd. 2. new text end new text begin Qualified grantee. new text end new text begin A grantee must: new text end 103.2 new text begin (1) qualify under section 501(c)(3) of the Internal Revenue Code; and new text end 103.3 new text begin (2) at the time of application offer, or have the demonstrated capacity to offer, a motor new text end 103.4 new text begin vehicle program that provides the services required under subdivision 3. new text end 103.5     new text begin Subd. 3. new text end new text begin Program requirements. new text end new text begin (a) A program must offer one or more of the following new text end 103.6 new text begin services: new text end 103.7 new text begin (1) provision of new or used motor vehicles by gift, sale, or lease; new text end 103.8 new text begin (2) motor vehicle repair and maintenance services; or new text end 103.9 new text begin (3) motor vehicle loans. new text end 103.10 new text begin (b) In addition to the requirements of paragraph (a), a program must offer one or more new text end 103.11 new text begin of the following services: new text end 103.12 new text begin (1) financial literacy education; new text end 103.13 new text begin (2) education on budgeting for vehicle ownership; new text end 103.14 new text begin (3) car maintenance and repair instruction; new text end 103.15 new text begin (4) credit counseling; or new text end new text begin new text end 103.16 new text begin (5) job training related to motor vehicle maintenance and repair. new text end 103.17     new text begin Subd. 4. new text end new text begin Application. new text end new text begin Applications for a grant must be on a form provided by the new text end 103.18 new text begin commissioner and on a schedule set by the commissioner. Applications must, in addition new text end 103.19 new text begin to any other information required by the commissioner, include the following: new text end 103.20 new text begin (1) a detailed description of all services to be offered; new text end 103.21 new text begin (2) the area to be served; new text end 103.22 new text begin (3) the estimated number of program participants to be served by the grant; and new text end 103.23 new text begin (4) a plan for leveraging resources from partners that may include, but are not limited new text end 103.24 new text begin to: new text end 103.25 new text begin (i) automobile dealers; new text end 103.26 new text begin (ii) automobile parts dealers; new text end 103.27 new text begin (iii) independent local mechanics and automobile repair facilities; new text end 103.28 new text begin (iv) banks and credit unions; new text end 103.29 new text begin (v) employers; new text end 104.1 new text begin (vi) employment and training agencies; new text end 104.2 new text begin (vii) insurance companies and agents; new text end 104.3 new text begin (viii) local workforce centers; and new text end 104.4 new text begin (ix) educational institutions including vocational institutions and jobs or skills training new text end 104.5 new text begin programs. new text end 104.6     new text begin Subd. 5. new text end new text begin Participant eligibility. new text end new text begin (a) To be eligible to receive program services, a person new text end 104.7 new text begin must: new text end 104.8 new text begin (1) have a household income at or below 200 percent of the federal poverty level; new text end 104.9 new text begin (2) be at least 22 years of age; new text end 104.10 new text begin (3) have a valid driver's license; new text end 104.11 new text begin (4) provide the grantee with proof of motor vehicle insurance; and new text end 104.12 new text begin (5) demonstrate to the grantee that a motor vehicle is required by the person to obtain new text end 104.13 new text begin or maintain employment. new text end 104.14 new text begin (b) This subdivision does not preclude a grantee from imposing additional requirements, new text end 104.15 new text begin not inconsistent with paragraph (a), for the receipt of program services. new text end 104.16     new text begin Subd. 6. new text end new text begin Report to legislature. new text end new text begin By February 15, 2019, the commissioner shall submit new text end 104.17 new text begin a report to the chairs of the house of representatives and senate committees with jurisdiction new text end 104.18 new text begin over workforce and economic development on program outcomes. At a minimum, the report new text end 104.19 new text begin must include: new text end 104.20 new text begin (1) the total number of program participants; new text end 104.21 new text begin (2) the number of program participants who received each of the following: new text end 104.22 new text begin (i) provision of a motor vehicle; new text end 104.23 new text begin (ii) motor vehicle repair services; and new text end 104.24 new text begin (iii) motor vehicle loans; new text end 104.25 new text begin (3) the number of program participants who report that they or their children were able new text end 104.26 new text begin to increase their participation in community activities such as after school programs, other new text end 104.27 new text begin youth programs, church or civic groups, or library services as a result of participation in the new text end 104.28 new text begin program; and new text end 104.29 new text begin (4) an analysis of the impact of the getting to work grant program on the employment new text end 104.30 new text begin rate and wages of program participants. new text end 105.1    Sec. 26. new text begin ECONOMIC IMPACT STUDY OF BIOMASS FACILITY CLOSURE. new text end 105.2 new text begin The commissioner of employment and economic development shall conduct a study to new text end 105.3 new text begin examine the economic impact of the closure of a biomass facility located in the city of new text end 105.4 new text begin Benson that uses poultry litter to generate electricity. In conducting the study, the new text end 105.5 new text begin commissioner must analyze the impact of the closure of the biomass facility on employment new text end 105.6 new text begin and income in the local economy, including impacts on ancillary providers of goods and new text end 105.7 new text begin services to the biomass facility. The commissioner must report study findings to the new text end 105.8 new text begin legislature by February 15, 2018. new text end 105.9    Sec. 27. new text begin USE OF UNALLOCATED FUNDS. new text end 105.10 new text begin (a) Notwithstanding Minnesota Statutes, sections 116L.05, subdivision 5, and 116L.20, new text end 105.11 new text begin subdivision 2, in fiscal years 2018 and 2019 only, the unallocated workforce development new text end 105.12 new text begin funds appropriated to the Job Skills Partnership Board under Minnesota Statutes, section new text end 105.13 new text begin 116L.20, subdivision 2, paragraph (b), may be used for other job creation and economic new text end 105.14 new text begin enhancement opportunities in Minnesota at the discretion of the commissioner. new text end 105.15 new text begin (b) Notwithstanding Minnesota Statutes, section 116J.8731, in fiscal years 2018 and new text end 105.16 new text begin 2019 only, funds appropriated to the commissioner for the Minnesota investment fund may new text end 105.17 new text begin be used for other job creation and economic enhancement opportunities in Minnesota at the new text end 105.18 new text begin discretion of the commissioner. Grants under this paragraph are not subject to the grant new text end 105.19 new text begin amount limitation under Minnesota Statutes, section 116J.8731. new text end 105.20 new text begin (c) Notwithstanding Minnesota Statutes, section 116J.748, in fiscal years 2018 and 2019 new text end 105.21 new text begin only, funds appropriated to the commissioner for the job creation fund may be used for new text end 105.22 new text begin other job creation and economic enhancement opportunities in Minnesota at the discretion new text end 105.23 new text begin of the commissioner. new text end 105.24    Sec. 28. new text begin REPEALER. new text end 105.25 new text begin Minnesota Statutes 2016, section 116J.549, new text end new text begin and new text end new text begin Minnesota Rules, parts 4355.0100; new text end 105.26 new text begin 4355.0200; 4355.0300; 4355.0400; and 4355.0500, new text end new text begin are repealed. new text end 105.27ARTICLE 7 105.28IRON RANGE RESOURCES AND REHABILITATION POLICY 105.29    Section 1. Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read: 105.30    Subdivision 1. Definitions. As used in this section and section 3.736 the terms defined 105.31in this section have the meanings given them. 106.1    (1) "State" includes each of the departments, boards, agencies, commissions, courts, and 106.2officers in the executive, legislative, and judicial branches of the state of Minnesota and 106.3includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher 106.4Education, the Higher Education Facilities Authority, the Health Technology Advisory 106.5Committee, the Armory Building Commission, the Zoological Board, the new text begin Department of new text end 106.6Iron Range Resources and Rehabilitation Board, the Minnesota Historical Society, the State 106.7Agricultural Society, the University of Minnesota, the Minnesota State Colleges and 106.8Universities, state hospitals, and state penal institutions. It does not include a city, town, 106.9county, school district, or other local governmental body corporate and politic. 106.10    (2) "Employee of the state" means all present or former officers, members, directors, or 106.11employees of the state, members of the Minnesota National Guard, members of a bomb 106.12disposal unit approved by the commissioner of public safety and employed by a municipality 106.13defined in section 466.01 when engaged in the disposal or neutralization of bombs or other 106.14similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the 106.15municipality but within the state, or persons acting on behalf of the state in an official 106.16capacity, temporarily or permanently, with or without compensation. It does not include 106.17either an independent contractor except, for purposes of this section and section 3.736 only, 106.18a guardian ad litem acting under court appointment, or members of the Minnesota National 106.19Guard while engaged in training or duty under United States Code, title 10, or title 32, 106.20section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding 106.21sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee 106.22of the state" includes a district public defender or assistant district public defender in the 106.23Second or Fourth Judicial District, a member of the Health Technology Advisory Committee, 106.24and any officer, agent, or employee of the state of Wisconsin performing work for the state 106.25of Minnesota pursuant to a joint state initiative. 106.26    (3) "Scope of office or employment" means that the employee was acting on behalf of 106.27the state in the performance of duties or tasks lawfully assigned by competent authority. 106.28    (4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25. 106.29    Sec. 2. Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read: 106.30    Subd. 3. Exclusions. Without intent to preclude the courts from finding additional cases 106.31where the state and its employees should not, in equity and good conscience, pay 106.32compensation for personal injuries or property losses, the legislature declares that the state 106.33and its employees are not liable for the following losses: 107.1(a) a loss caused by an act or omission of a state employee exercising due care in the 107.2execution of a valid or invalid statute or rule; 107.3(b) a loss caused by the performance or failure to perform a discretionary duty, whether 107.4or not the discretion is abused; 107.5(c) a loss in connection with the assessment and collection of taxes; 107.6(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does 107.7not abut a publicly owned building or a publicly owned parking lot, except when the condition 107.8is affirmatively caused by the negligent acts of a state employee; 107.9(e) a loss caused by wild animals in their natural state, except as provided in section 107.103.7371 ; 107.11(f) a loss other than injury to or loss of property or personal injury or death; 107.12(g) a loss caused by the condition of unimproved real property owned by the state, which 107.13means land that the state has not improved, state land that contains idled or abandoned mine 107.14pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither 107.15affixed nor improved; 107.16(h) a loss involving or arising out of the use or operation of a recreational motor vehicle, 107.17as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as 107.18defined in section 160.02, except that the state is liable for conduct that would entitle a 107.19trespasser to damages against a private person; 107.20(i) a loss incurred by a user arising from the construction, operation, or maintenance of 107.21the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the 107.22construction, operation, maintenance, or administration of grants-in-aid trails as defined in 107.23section 85.018, or for a loss arising from the construction, operation, or maintenance of a 107.24water access site created by the new text begin Department of new text end Iron Range Resources and Rehabilitation 107.25Board, except that the state is liable for conduct that would entitle a trespasser to damages 107.26against a private person. For the purposes of this clause, a water access site, as defined in 107.27section 86A.04 or created by the new text begin commissioner of new text end Iron Range resources and rehabilitation 107.28Board, that provides access to an idled, water filled mine pit, also includes the entire water 107.29filled area of the pit and, further, includes losses caused by the caving or slumping of the 107.30mine pit walls; 107.31(j) a loss of benefits or compensation due under a program of public assistance or public 107.32welfare, except if state compensation for loss is expressly required by federal law in order 107.33for the state to receive federal grants-in-aid; 108.1(k) a loss based on the failure of a person to meet the standards needed for a license, 108.2permit, or other authorization issued by the state or its agents; 108.3(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person 108.4at a state hospital or state corrections facility where reasonable use of available appropriations 108.5has been made to provide care; 108.6(m) loss, damage, or destruction of property of a patient or inmate of a state institution 108.7except as provided under section 3.7381; 108.8(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2; 108.9(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to 108.10increase dissolved oxygen or maintain open water on the ice of public waters, that is operated 108.11under a permit issued by the commissioner of natural resources; 108.12(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state 108.13is liable for conduct that would entitle a trespasser to damages against a private person; 108.14(q) a loss arising out of a person's use of a logging road on public land that is maintained 108.15exclusively to provide access to timber on that land by harvesters of the timber, and is not 108.16signed or otherwise held out to the public as a public highway; and 108.17(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the 108.18Minnesota National Guard or the Department of Military Affairs, except that the state is 108.19liable for conduct that would entitle a trespasser to damages against a private person. 108.20The state will not pay punitive damages. 108.21    Sec. 3. Minnesota Statutes 2016, section 15.01, is amended to read: 108.2215.01 DEPARTMENTS OF THE STATE. 108.23The following agencies are designated as the departments of the state government: the 108.24Department of Administration; the Department of Agriculture; the Department of Commerce; 108.25the Department of Corrections; the Department of Education; the Department of Employment 108.26and Economic Development; the Department of Health; the Department of Human Rights; new text begin new text end 108.27 new text begin the Department of Iron Range Resources and Rehabilitation; new text end the Department of Labor and 108.28Industry; the Department of Management and Budget; the Department of Military Affairs; 108.29the Department of Natural Resources; the Department of Public Safety; the Department of 108.30Human Services; the Department of Revenue; the Department of Transportation; the 108.31Department of Veterans Affairs; and their successor departments. 109.1    Sec. 4. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read: 109.2    Subd. 7. new text begin Department of new text end Iron Range Resources and Rehabilitation Board. new text begin After new text end 109.3 new text begin seeking a recommendation from the Iron Range Resources and Rehabilitation Board, new text end the 109.4 new text begin commissioner of new text end Iron Range resources and rehabilitation Board may purchase insurance it 109.5considers new text begin the commissioner deems new text end necessary and appropriate to insure facilities operated 109.6by the board new text begin commissioner new text end . 109.7    Sec. 5. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read: 109.8    Subd. 3. Group II salary limits. The salary for a position listed in this subdivision shall 109.9not exceed 120 percent of the salary of the governor. This limit must be adjusted annually 109.10on January 1. The new limit must equal the limit for the prior year increased by the percentage 109.11increase, if any, in the Consumer Price Index for all urban consumers from October of the 109.12second prior year to October of the immediately prior year. The commissioner of management 109.13and budget must publish the limit on the department's Web site. This subdivision applies 109.14to the following positions: 109.15    Executive director of Gambling Control Board; 109.16    Commissioner, new text begin of new text end Iron Range resources and rehabilitation Board; 109.17    Commissioner, Bureau of Mediation Services; 109.18    Ombudsman for Mental Health and Developmental Disabilities; 109.19    Chair, Metropolitan Council; 109.20    School trust lands director; 109.21    Executive director of pari-mutuel racing; and 109.22    Commissioner, Public Utilities Commission. 109.23    Sec. 6. Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read: 109.24    Subd. 22. Executive branch. "Executive branch" means heads of all agencies of state 109.25government, elective or appointive, established by statute or Constitution and all employees 109.26of those agency heads who have within their particular field of responsibility statewide 109.27jurisdiction and who are not within the legislative or judicial branches of government. The 109.28executive branch also includes employees of the new text begin Department of new text end Iron Range Resources and 109.29Rehabilitation Board. The executive branch does not include agencies with jurisdiction in 109.30specifically defined geographical areas, such as regions, counties, cities, towns, 109.31municipalities, or school districts, the University of Minnesota, the Public Employees 110.1Retirement Association, the Minnesota State Retirement System, the Teachers Retirement 110.2Association, the Minnesota Historical Society, and all of their employees, and any other 110.3entity which is incorporated, even though it receives state funds. 110.4    Sec. 7. Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read: 110.5    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation Area 110.6Citizens Advisory Council is established. Membership on the advisory council shall include: 110.7    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board; 110.8    (2) a representative of the Croft Mine Historical Park Joint Powers Board; 110.9    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked 110.10as a miner in the local area; 110.11    (4) a representative of the Crow Wing County Board; 110.12    (5) an elected state official; 110.13    (6) a representative of the Grand Rapids regional office of the Department of Natural 110.14Resources; 110.15    (7) a designee of the new text begin commissioner of new text end Iron Range resources and rehabilitation Board; 110.16    (8) a designee of the local business community selected by the area chambers of 110.17commerce; 110.18    (9) a designee of the local environmental community selected by the Crow Wing County 110.19District 5 commissioner; 110.20    (10) a designee of a local education organization selected by the Crosby-Ironton School 110.21Board; 110.22    (11) a designee of one of the recreation area user groups selected by the Cuyuna Range 110.23Chamber of Commerce; and 110.24    (12) a member of the Cuyuna Country Heritage Preservation Society. 110.25    Sec. 8. Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read: 110.26    Subd. 1a. Definitions. For the purposes of this chapter, the following terms have the 110.27meanings given to them in this subdivision. 110.28(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4. 111.1(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02, 111.2subdivision 5 . 111.3(c) "Environmental assessment worksheet" means a brief document which is designed 111.4to set out the basic facts necessary to determine whether an environmental impact statement 111.5is required for a proposed action. 111.6(d) "Governmental action" means activities, including projects wholly or partially 111.7conducted, permitted, assisted, financed, regulated, or approved by units of government 111.8including the federal government. 111.9(e) "Governmental unit" means any state agency and any general or special purpose unit 111.10of government in the state including, but not limited to, watershed districts organized under 111.11chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic 111.12development authorities established under sections 469.090 to 469.108, but not including 111.13courts, school districts, new text begin the Department of new text end Iron Range Resources and Rehabilitation, and 111.14regional development commissions other than the Metropolitan Council. 111.15    Sec. 9. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read: 111.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or new text begin , new text end 111.17 new text begin including forgivable loans, new text end equity investments new text begin , or grants for infrastructure new text end in mineral, steel, 111.18or any other industry processing, production, manufacturing, or technology project that 111.19would enhance the economic diversification and that is located within the taconite relief 111.20tax new text begin assistance new text end area as defined under section new text begin 273.1341 new text end . The commissioner must, 111.21prior to making any loans or equity investments and after consultation with industry and 111.22public officials, develop a strategy for making loans and new text begin , new text end equity investments new text begin , or grants for new text end 111.23 new text begin infrastructure new text end that assists the taconite relief new text begin assistance new text end area in retaining and enhancing its 111.24economic competitiveness. Money in the fund may also be used to pay for the costs of 111.25carrying out the commissioner's due diligence duties under this section. 111.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 111.27    Sec. 10. Minnesota Statutes 2016, section 116J.424, is amended to read: 111.28116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 111.29CONTRIBUTION. 111.30The commissioner of the Iron Range resources and rehabilitation Board with approval 111.31by the board, new text begin after consultation with the Iron Range Resources and Rehabilitation Board, new text end 111.32may provide an equal match for any loan or equity investment made for a project located 112.1in the tax relief new text begin taconite assistance new text end area defined in section , paragraph (b) new text begin 273.1341 new text end , 112.2by the Minnesota 21st century fund created by section 116J.423. The match may be in the 112.3form of a loan or equity investment, notwithstanding whether the fund makes a loan or 112.4equity investment. The state shall not acquire an equity interest because of an equity 112.5investment or loan by the board and the board at its sole discretion shall new text begin commissioner of new text end 112.6 new text begin Iron Range resources and rehabilitation and the commissioner of Iron Range resources and new text end 112.7 new text begin rehabilitation, after consultation with the advisory board, shall have sole discretion to new text end decide 112.8what interest it new text begin the fund new text end acquires in a project. The commissioner of employment and 112.9economic development may require a commitment from the board new text begin commissioner of Iron new text end 112.10 new text begin Range resources and rehabilitation new text end to make the match prior to disbursing money from the 112.11fund. 112.12    Sec. 11. Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read: 112.13    Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with 112.14the grantor of the subsidy that includes: 112.15(1) a description of the subsidy, including the amount and type of subsidy, and type of 112.16district if the subsidy is tax increment financing; 112.17(2) a statement of the public purposes for the subsidy; 112.18(3) measurable, specific, and tangible goals for the subsidy; 112.19(4) a description of the financial obligation of the recipient if the goals are not met; 112.20(5) a statement of why the subsidy is needed; 112.21(6) a commitment to continue operations in the jurisdiction where the subsidy is used 112.22for at least five years after the benefit date; 112.23(7) the name and address of the parent corporation of the recipient, if any; and 112.24(8) a list of all financial assistance by all grantors for the project. 112.25(b) Business subsidies in the form of grants must be structured as forgivable loans. For 112.26other types of business subsidies, the agreement must state the fair market value of the 112.27subsidy to the recipient, including the value of conveying property at less than a fair market 112.28price, or other in-kind benefits to the recipient. 112.29(c) If a business subsidy benefits more than one recipient, the grantor must assign a 112.30proportion of the business subsidy to each recipient that signs a subsidy agreement. The 112.31proportion assessed to each recipient must reflect a reasonable estimate of the recipient's 112.32share of the total benefits of the project. 113.1(d) The state or local government agency and the recipient must both sign the subsidy 113.2agreement and, if the grantor is a local government agency, the agreement must be approved 113.3by the local elected governing body, except for the St. Paul Port Authority and a seaway 113.4port authority. 113.5(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be 113.6authorized to move from the jurisdiction where the subsidy is used within the five-year 113.7period after the benefit date if, after a public hearing, the grantor approves the recipient's 113.8request to move. For the purpose of this paragraph, if the grantor is a state government 113.9agency other than the new text begin Department of new text end Iron Range Resources and Rehabilitation Board, 113.10"jurisdiction" means a city or township. 113.11    Sec. 12. Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read: 113.12    Subd. 5. Public notice and hearing. (a) Before granting a business subsidy that exceeds 113.13$500,000 for a state government grantor and $150,000 for a local government grantor, the 113.14grantor must provide public notice and a hearing on the subsidy. A public hearing and notice 113.15under this subdivision is not required if a hearing and notice on the subsidy is otherwise 113.16required by law. 113.17    (b) Public notice of a proposed business subsidy under this subdivision by a state 113.18government grantor, other than the new text begin commissioner of new text end Iron Range resources and rehabilitation 113.19Board, must be published in the State Register. Public notice of a proposed business subsidy 113.20under this subdivision by a local government grantor or the new text begin commissioner of new text end Iron Range 113.21resources and rehabilitation Board must be published in a local newspaper of general 113.22circulation. The public notice must identify the location at which information about the 113.23business subsidy, including a summary of the terms of the subsidy, is available. Published 113.24notice should be sufficiently conspicuous in size and placement to distinguish the notice 113.25from the surrounding text. The grantor must make the information available in printed paper 113.26copies and, if possible, on the Internet. The government agency must provide at least a 113.27ten-day notice for the public hearing. 113.28    (c) The public notice must include the date, time, and place of the hearing. 113.29    (d) The public hearing by a state government grantor other than the new text begin commissioner of new text end 113.30Iron Range resources and rehabilitation Board must be held in St. Paul. 113.31    (e) If more than one nonstate grantor provides a business subsidy to the same recipient, 113.32the nonstate grantors may designate one nonstate grantor to hold a single public hearing 113.33regarding the business subsidies provided by all nonstate grantors. For the purposes of this 114.1paragraph, "nonstate grantor" includes the new text begin commissioner of new text end Iron Range resources and 114.2rehabilitation Board. 114.3    (f) The public notice of any public meeting about a business subsidy agreement, including 114.4those required by this subdivision and by subdivision 4, must include notice that a person 114.5with residence in or the owner of taxable property in the granting jurisdiction may file a 114.6written complaint with the grantor if the grantor fails to comply with sections 116J.993 to 114.7116J.995 , and that no action may be filed against the grantor for the failure to comply unless 114.8a written complaint is filed. 114.9    Sec. 13. Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read: 114.10    Subd. 7. Reports by recipients to grantors. (a) A business subsidy grantor must monitor 114.11the progress by the recipient in achieving agreement goals. 114.12(b) A recipient must provide information regarding goals and results for two years after 114.13the benefit date or until the goals are met, whichever is later. If the goals are not met, the 114.14recipient must continue to provide information on the subsidy until the subsidy is repaid. 114.15The information must be filed on forms developed by the commissioner in cooperation with 114.16representatives of local government. Copies of the completed forms must be sent to the 114.17local government agency that provided the subsidy or to the commissioner if the grantor is 114.18a state agency. If the new text begin commissioner of new text end Iron Range resources and rehabilitation Board is the 114.19grantor, the copies must be sent to the board new text begin commissioner of Iron Range resources and new text end 114.20 new text begin rehabilitation new text end . The report must include: 114.21(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy 114.22is tax increment financing; 114.23(2) the hourly wage of each job created with separate bands of wages; 114.24(3) the sum of the hourly wages and cost of health insurance provided by the employer 114.25with separate bands of wages; 114.26(4) the date the job and wage goals will be reached; 114.27(5) a statement of goals identified in the subsidy agreement and an update on achievement 114.28of those goals; 114.29(6) the location of the recipient prior to receiving the business subsidy; 114.30(7) the number of employees who ceased to be employed by the recipient when the 114.31recipient relocated to become eligible for the business subsidy; 115.1(8) why the recipient did not complete the project outlined in the subsidy agreement at 115.2their previous location, if the recipient was previously located at another site in Minnesota; 115.3(9) the name and address of the parent corporation of the recipient, if any; 115.4(10) a list of all financial assistance by all grantors for the project; and 115.5(11) other information the commissioner may request. 115.6A report must be filed no later than March 1 of each year for the previous year. The local 115.7agency and the new text begin commissioner of new text end Iron Range resources and rehabilitation Board must forward 115.8copies of the reports received by recipients to the commissioner by April 1. 115.9(c) Financial assistance that is excluded from the definition of "business subsidy" by 115.10section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting 115.11requirements of this subdivision, except that the report of the recipient must include instead: 115.12(1) the type, public purpose, and amount of the financial assistance, and type of district 115.13if the assistance is tax increment financing; 115.14(2) progress towards meeting goals stated in the assistance agreement and the public 115.15purpose of the assistance; 115.16(3) if the agreement includes job creation, the hourly wage of each job created with 115.17separate bands of wages; 115.18(4) if the agreement includes job creation, the sum of the hourly wages and cost of health 115.19insurance provided by the employer with separate bands of wages; 115.20(5) the location of the recipient prior to receiving the assistance; and 115.21(6) other information the grantor requests. 115.22(d) If the recipient does not submit its report, the local government agency must mail 115.23the recipient a warning within one week of the required filing date. If, after 14 days of the 115.24postmarked date of the warning, the recipient fails to provide a report, the recipient must 115.25pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The 115.26maximum penalty shall not exceed $1,000. 115.27    Sec. 14. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read: 115.28    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 115.29the meanings given them in this subdivision. 115.30(b) "Area development rate" means a rate schedule established by a utility that provides 115.31customers within an area development zone service under a base utility rate schedule, except 116.1that charges may be reduced from the base rate as agreed upon by the utility and the customer 116.2consistent with this section. 116.3(c) "Area development zone" means a contiguous or noncontiguous area designated by 116.4an authority or municipality for development or redevelopment and within which one of 116.5the following conditions exists: 116.6(1) obsolete buildings not suitable for improvement or conversion or other identified 116.7hazards to the health, safety, and general well-being of the community; 116.8(2) buildings in need of substantial rehabilitation or in substandard condition; or 116.9(3) low values and damaged investments. 116.10(d) "Authority" means a rural development financing authority established under sections 116.11469.142 to 469.151; a housing and redevelopment authority established under sections 116.12469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an 116.13economic development authority established under sections 469.090 to 469.108; a 116.14redevelopment agency as defined in sections 469.152 to 469.165; the new text begin commissioner of new text end Iron 116.15Range resources and rehabilitation Board established under section 298.22; a municipality 116.16that is administering a development district created under sections 469.124 to 469.133 or 116.17any special law; a municipality that undertakes a project under sections 469.152 to 469.165, 116.18except a town located outside the metropolitan area as defined in section 473.121, subdivision 116.192 , or with a population of 5,000 persons or less; or a municipality that exercises the powers 116.20of a port authority under any general or special law. 116.21(e) "Municipality" means a city, however organized, and, with respect to a project 116.22undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 116.23sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142 116.24to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, 116.25also includes any county. 116.26    Sec. 15. Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read: 116.27    Subdivision 1. Definition. For the purposes of this section, the term "innovative energy 116.28project" means a proposed energy-generation facility or group of facilities which may be 116.29located on up to three sites: 116.30(1) that makes use of an innovative generation technology utilizing coal as a primary 116.31fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur 116.32dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional 116.33technologies; 117.1(2) that the project developer or owner certifies is a project capable of offering a long-term 117.2supply contract at a hedged, predictable cost; and 117.3(3) that is designated by the commissioner of the Iron Range resources and rehabilitation 117.4Board as a project that is located in the taconite tax relief area on a site that has substantial 117.5real property with adequate infrastructure to support new or expanded development and 117.6that has received prior financial and other support from the board. 117.7    Sec. 16. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read: 117.8    Subd. 8. Municipality. "Municipality" means a city, town, or township located in whole 117.9or part within the area. If a municipality is located partly within and partly without the area, 117.10the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to 117.11taxation or taxing jurisdiction within the municipality are to the property or portion thereof 117.12that is located in that portion of the municipality within the area, except that the fiscal 117.13capacity of the municipality must be computed upon the basis of the valuation and population 117.14of the entire municipality. A municipality shall be excluded from the area if its municipal 117.15comprehensive zoning and planning policies conscientiously exclude most 117.16commercial-industrial development, for reasons other than preserving an agricultural use. 117.17The new text begin commissioner of new text end Iron Range resources and rehabilitation Board and the commissioner 117.18of revenue shall jointly make this determination annually and shall notify those municipalities 117.19that are ineligible to participate in the tax base sharing program provided in this chapter for 117.20the following year. new text begin Before making the determination, the commissioner of Iron Range new text end 117.21 new text begin resources and rehabilitation must consult the Iron Range Resources and Rehabilitation new text end 117.22 new text begin Board. new text end 117.23    Sec. 17. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read: 117.24    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to 117.2525 percent of the areawide levy certified by the new text begin commissioner of new text end Iron Range resources and 117.26rehabilitation Board new text begin , after consultation with the Iron Range Resources and Rehabilitation new text end 117.27 new text begin Board, new text end to be used for the purposes of the Iron Range school consolidation and cooperatively 117.28operated school account under section 298.28, subdivision 7a. 117.29(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of new text end 117.30Iron Range resources and rehabilitation Board new text begin , after consultation with the Iron Range new text end 117.31 new text begin Resources and Rehabilitation Board, new text end has certified by June 30 that the Iron Range school 117.32consolidation and cooperatively operated account has insufficient funds to make payments 117.33as authorized under section 298.28, subdivision 7a. 118.1    Sec. 18. Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read: 118.2    Subd. 8. Certification of values; payment. The administrative auditor shall determine 118.3for each county the difference between the total levy on distribution value pursuant to 118.4subdivision 3, clause (1), including the school fund allocation within the county and the 118.5total tax on contribution value pursuant to subdivision 7, within the county. On or before 118.6May 16 of each year, the administrative auditor shall certify the differences so determined 118.7and the county's portion of the school fund allocation to each county auditor. In addition, 118.8the administrative auditor shall certify to those county auditors for whose county the total 118.9tax on contribution value exceeds the total levy on distribution value the settlement the 118.10county is to make to the other counties of the excess of the total tax on contribution value 118.11over the total levy on distribution value in the county. On or before June 15 and November 118.1215 of each year, each county treasurer in a county having a total tax on contribution value 118.13in excess of the total levy on distribution value shall pay one-half of the excess to the other 118.14counties in accordance with the administrative auditor's certification. On or before June 15 118.15and November 15 of each year, each county treasurer shall pay to the administrative auditor 118.16that county's share of the school fund allocation. On or before December 1 of each year, 118.17the administrative auditor shall pay the school fund allocation to the new text begin commissioner of new text end Iron 118.18Range resources and rehabilitation Board for deposit in the Iron Range school consolidation 118.19and cooperatively operated account. 118.20    Sec. 19. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read: 118.21    Subdivision 1. Development. In any county where the county board by proper resolution 118.22sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or 118.23section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 118.24with the approval of the board new text begin , after consultation with the Iron Range Resources and new text end 118.25 new text begin Rehabilitation Board, new text end may upon request of the county board assist said county in carrying 118.26out any project for the long range development of its forest resources through matching of 118.27funds or otherwise. 118.28    Sec. 20. Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read: 118.29    Subd. 3. Not to affect commissioner of Iron Range resources new text begin and rehabilitation new text end . 118.30Nothing herein shall be construed to limit or abrogate the authority of the commissioner of 118.31Iron Range resources new text begin and rehabilitation new text end to give temporary assistance to any county in the 118.32development of its land use program. 119.1    Sec. 21. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read: 119.2    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the 119.3state of Minnesota new text begin , except that when used in sections 298.22 to 298.227 and 298.291 to new text end 119.4 new text begin 298.297, "commissioner" means the commissioner of Iron Range resources and rehabilitation new text end . 119.5    Sec. 22. Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision 119.6to read: 119.7     new text begin Subd. 12. new text end new text begin Advisory board. new text end new text begin "Advisory board" means the Iron Range Resources and new text end 119.8 new text begin Rehabilitation Board, as established under section 298.22. The acronym "IRRRB" means new text end 119.9 new text begin the advisory board. new text end 119.10    Sec. 23. Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read: 119.11    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid under 119.12sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 119.13taconite assistance area defined in section 273.1341, shall be allocated as follows: 119.14    (1) five percent to the city or town within which the minerals or energy resources are 119.15mined or extracted, or within which the concentrate was produced. If the mining and 119.16concentration, or different steps in either process, are carried on in more than one taxing 119.17district, the commissioner shall apportion equitably the proceeds among the cities and towns 119.18by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction, 119.19and the remainder to the concentrating plant and to the processes of concentration, and with 119.20respect to each thereof giving due consideration to the relative extent of the respective 119.21operations performed in each taxing district; 119.22    (2) ten percent to the taconite municipal aid account to be distributed as provided in 119.23section 298.282; 119.24    (3) ten percent to the school district within which the minerals or energy resources are 119.25mined or extracted, or within which the concentrate was produced. If the mining and 119.26concentration, or different steps in either process, are carried on in more than one school 119.27district, distribution among the school districts must be based on the apportionment formula 119.28prescribed in clause (1); 119.29    (4) 20 percent to a group of school districts comprised of those school districts wherein 119.30the mineral or energy resource was mined or extracted or in which there is a qualifying 119.31municipality as defined by section 273.134, paragraph (b), in direct proportion to school 119.32district indexes as follows: for each school district, its pupil units determined under section 120.1126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 120.2net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 120.3pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 120.4to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 120.5portion of the distribution which its index bears to the sum of the indices for all school 120.6districts that receive the distributions; 120.7    (5) 20 percent to the county within which the minerals or energy resources are mined 120.8or extracted, or within which the concentrate was produced. If the mining and concentration, 120.9or different steps in either process, are carried on in more than one county, distribution 120.10among the counties must be based on the apportionment formula prescribed in clause (1), 120.11provided that any county receiving distributions under this clause shall pay one percent of 120.12its proceeds to the Range Association of Municipalities and Schools; 120.13    (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed 120.14as provided in sections 273.134 to 273.136; 120.15    (7) five percent to the new text begin commissioner of new text end Iron Range resources and rehabilitation Board 120.16for the purposes of section 298.22; 120.17    (8) three percent to the Douglas J. Johnson economic protection trust fund; and 120.18    (9) seven percent to the taconite environmental protection fund. 120.19    The proceeds of the tax shall be distributed on July 15 each year. 120.20    Sec. 24. Minnesota Statutes 2016, section 298.17, is amended to read: 120.21298.17 OCCUPATION TAXES TO BE APPORTIONED. 120.22(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 120.23companies, corporations, and associations, however or for whatever purpose organized, 120.24engaged in the business of mining or producing iron ore or other ores, when collected shall 120.25be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 120.26article X, section 3, in the manner following: 90 percent shall be deposited in the state 120.27treasury and credited to the general fund of which four-ninths shall be used for the support 120.28of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 120.29by this section shall be deposited in the state treasury and credited to the general fund for 120.30the general support of the university. 120.31(b) Of the money apportioned to the general fund by this section: (1) there is annually 120.32appropriated and credited to the mining environmental and regulatory account in the special 121.1revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax 121.2imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 121.3Money in the mining environmental and regulatory account is appropriated annually to the 121.4commissioner of natural resources to fund agency staff to work on environmental issues 121.5and provide regulatory services for ferrous and nonferrous mining operations in this state. 121.6Payment to the mining environmental and regulatory account shall be made by July 1 121.7annually. The commissioner of natural resources shall execute an interagency agreement 121.8with the Pollution Control Agency to assist with the provision of environmental regulatory 121.9services such as monitoring and permitting required for ferrous and nonferrous mining 121.10operations; (2) there is annually appropriated and credited to the Iron Range resources and 121.11rehabilitation Board account in the special revenue fund an amount equal to that which 121.12would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable 121.13ton produced in the preceding calendar year, to be expended for the purposes of section 121.14298.22 ; and (3) there is annually appropriated and credited to the Iron Range resources and 121.15rehabilitation Board account in the special revenue fund for transfer to the Iron Range school 121.16consolidation and cooperatively operated school account under section 298.28, subdivision 121.177a , an amount equal to that which would have been generated by a six cent tax imposed by 121.18section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the 121.19Iron Range resources and rehabilitation Board account shall be made by May 15 annually. 121.20(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 121.21provide environmental development grants to local governments located within any county 121.22in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 121.23which does not contain a municipality qualifying pursuant to section 273.134, paragraph 121.24(b) , or (ii) to provide economic development loans or grants to businesses located within 121.25any such county, provided that the county board or an advisory group appointed by the 121.26county board to provide recommendations on economic development shall make 121.27recommendations to the new text begin commissioner of new text end Iron Range resources and rehabilitation Board 121.28regarding the loans. Payment to the Iron Range resources and rehabilitation Board account 121.29shall be made by May 15 annually. 121.30(d) Of the money allocated to Koochiching County, one-third must be paid to the 121.31Koochiching County Economic Development Commission. 121.32    Sec. 25. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read: 121.33    Subdivision 1. The Office of Commissioner new text begin Department new text end of Iron Range Resources 121.34and Rehabilitation. (a) The Office of the Commissioner new text begin Department new text end of Iron Range 122.1Resources and Rehabilitation is created as an agency in the executive branch of state 122.2government. The governor shall appoint the commissioner of Iron Range resources and 122.3rehabilitation under section 15.06. new text begin The commissioner may expend amounts appropriated new text end 122.4 new text begin to the commissioner for projects after consultation with the advisory board created under new text end 122.5 new text begin subdivision 1a. new text end 122.6(b) The commissioner may hold other positions or appointments that are not incompatible 122.7with duties as commissioner of Iron Range resources and rehabilitation. The commissioner 122.8may appoint a deputy commissioner. All expenses of the commissioner, including the 122.9payment of staff and other assistance as may be necessary, must be paid out of the amounts 122.10appropriated by section 298.28 or otherwise made available by law to the commissioner. 122.11Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting 122.12options available under section 471.345 when the commissioner determines it is in the best 122.13interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. new text begin The new text end 122.14 new text begin commissioner has the authority to reimburse any nongovernmental manager operating new text end 122.15 new text begin state-owned facilities within the Giants Ridge Recreation Area for purchasing materials, new text end 122.16 new text begin supplies, equipment, or other items used in the operations at such facilities. new text end 122.17(c) When the commissioner determines that distress and unemployment exists or may 122.18exist in the future in any county by reason of the removal of natural resources or a possibly 122.19limited use of natural resources in the future and any resulting decrease in employment, the 122.20commissioner may use whatever amounts of the appropriation made to the commissioner 122.21of revenue in section 298.28 that are determined to be necessary and proper in the 122.22development of the remaining resources of the county and in the vocational training and 122.23rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 122.24to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in 122.25effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 122.26section, "development of remaining resources" includes, but is not limited to, the promotion 122.27of tourism. 122.28    Sec. 26. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read: 122.29    Subd. 1a. Iron Range Resources and Rehabilitation Board. new text begin (a) new text end The Iron Range 122.30Resources and Rehabilitation Board consists of the state senators and representatives elected 122.31from state senatorial or legislative districts in which one-third or more of the residents reside 122.32in a taconite assistance area as defined in section 273.1341. One additional state senator 122.33shall also be appointed by the senate Subcommittee on Committees of the Committee on 122.34Rules and Administration. All expenditures and projects made by the commissioner shall 123.1first be submitted to the new text begin advisory new text end board for approval. new text begin The advisory board shall recommend new text end 123.2 new text begin approval or disapproval or modification of the expenditures and projects. new text end The expenses of 123.3the new text begin advisory new text end board shall be paid by the state from the funds raised pursuant to this section. 123.4Members of the new text begin advisory new text end board may be reimbursed for expenses in the manner provided in 123.5sections 3.099, subdivision 1, and 3.101, and may receive per diem payments during the 123.6interims between legislative sessions in the manner provided in section 3.099, subdivision 123.71 . 123.8The members shall be appointed in January of every odd-numbered year, and shall serve 123.9until January of the next odd-numbered year. Vacancies on the board shall be filled in the 123.10same manner as original members were chosen. 123.11 new text begin (b) The advisory board must develop procedures to elect a chair who shall preside over new text end 123.12 new text begin and convene meetings as often as necessary to conduct duties prescribed by this chapter. new text end 123.13 new text begin The advisory board must meet at least two times per year to review the actions of the new text end 123.14 new text begin commissioner. new text end 123.15    Sec. 27. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 123.16read: 123.17     new text begin Subd. 1b. new text end new text begin Evaluation of programs. new text end new text begin (a) In evaluating programs proposed by the new text end 123.18 new text begin commissioner, the advisory board must consider factors, including but not limited to the new text end 123.19 new text begin extent to which the program: new text end 123.20 new text begin (1) contributes to increasing the effectiveness of promoting or managing Iron Range new text end 123.21 new text begin economic and workforce development, community development, minerals and natural new text end 123.22 new text begin resources development, and any other issue as determined by the advisory board; and new text end 123.23 new text begin (2) advances the strategic plan adopted under subdivision 1c. new text end 123.24 new text begin (b) In evaluating programs proposed by the commissioner, the advisory board must new text end 123.25 new text begin consider factors, including but not limited to: new text end 123.26 new text begin (1) job creation or retention goals for the program, including but not limited to wages new text end 123.27 new text begin and benefits; whether the jobs created are full time, part time, temporary, or permanent; and new text end 123.28 new text begin whether the stated job creation or retention goals in the program proposal can be adequately new text end 123.29 new text begin measured using methods established by the commissioner; new text end 123.30 new text begin (2) how and to what extent the program is expected to impact the economic climate of new text end 123.31 new text begin the Iron Range resources and rehabilitation services area; new text end 123.32 new text begin (3) how the program would meet match requirements, if any; and new text end 124.1 new text begin (4) whether the program meets the written objectives, priorities, and policies established new text end 124.2 new text begin by the commissioner. new text end 124.3    Sec. 28. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 124.4read: 124.5     new text begin Subd. 1c. new text end new text begin Strategic plan required. new text end new text begin The commissioner, in consultation with the advisory new text end 124.6 new text begin board, shall adopt a four-year strategic plan for making expenditures, including identifying new text end 124.7 new text begin the priority areas for funding for the term of the commissioner's appointment. The strategic new text end 124.8 new text begin plan must be reviewed annually. The strategic plan must have clearly stated short- and new text end 124.9 new text begin long-term goals and strategies for expenditures, provide measurable outcomes for new text end 124.10 new text begin expenditures, and determine areas of emphasis for funding. new text end 124.11    Sec. 29. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read: 124.12    Subd. 5a. Forest trust. The commissioner, upon approval by the board new text begin after consultation new text end 124.13 new text begin with the advisory board new text end , may purchase forest lands in the taconite assistance area defined 124.14in under section 273.1341 with funds specifically authorized for the purchase. The acquired 124.15forest lands must be held in trust for the benefit of the citizens of the taconite assistance 124.16area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed 124.17and developed for recreation and economic development purposes. The commissioner, upon 124.18approval by the new text begin after consultation with the advisory new text end board, may sell forest lands purchased 124.19under this subdivision if the board finds new text begin commissioner determines new text end that the sale advances 124.20the purposes of the trust. Proceeds derived from the management or sale of the lands and 124.21from the sale of timber or removal of gravel or other minerals from these forest lands shall 124.22be deposited into an Iron Range Miners' Memorial Forest account that is established within 124.23the state financial accounts. Funds may be expended from the account upon approval by 124.24the new text begin commissioner, after consultation with the advisory new text end board, to purchase, manage, 124.25administer, convey interests in, and improve the forest lands. With approval by the board, new text begin new text end 124.26 new text begin After consultation with the advisory board, the commissioner may transfer new text end money in the 124.27Iron Range Miners' Memorial Forest account may be transferred into the corpus of the 124.28Douglas J. Johnson economic protection trust fund established under sections 298.291 to 124.29298.294 . The property acquired under the authority granted by this subdivision and income 124.30derived from the property or the operation or management of the property are exempt from 124.31taxation by the state or its political subdivisions while held by the forest trust. 125.1    Sec. 30. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read: 125.2    Subd. 6. Private entity participation. The new text begin commissioner, after consultation with the new text end 125.3 new text begin advisory new text end board new text begin , new text end may acquire an equity interest in any project for which it new text begin the commissioner new text end 125.4provides funding. The commissioner may new text begin , after consultation with the advisory board, new text end 125.5establish, participate in the management of, and dispose of the assets of charitable 125.6foundations, nonprofit limited liability companies, and nonprofit corporations associated 125.7with any project for which it new text begin the commissioner new text end provides funding, including specifically, 125.8but without limitation, a corporation within the meaning of section 317A.011, subdivision 125.96 . 125.10    Sec. 31. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read: 125.11    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources 125.12and rehabilitation may not sell or privatize the Ironworld new text begin Minnesota new text end Discovery Center or 125.13Giants Ridge Golf and Ski Resort without prior approval by the new text begin advisory new text end board. 125.14    Sec. 32. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read: 125.15    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation 125.16shall annually prepare a budget for operational expenditures, programs, and projects, and 125.17submit it to the Iron Range Resources and Rehabilitation Board. After the budget is approved 125.18by the new text begin advisory new text end board and the governor, the commissioner may spend money in accordance 125.19with the approved budget. 125.20    Sec. 33. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 125.21read: 125.22     new text begin Subd. 13. new text end new text begin Grants and loans for economic development projects; requirements. new text end new text begin (a) new text end 125.23 new text begin Prior to awarding any grants or approving loans from any fund or account from which the new text end 125.24 new text begin commissioner has the authority under law to expend money, the commissioner must evaluate new text end 125.25 new text begin applications based on criteria including, but not limited to: new text end 125.26 new text begin (1) job creation or retention goals for the project, including but not limited to wages and new text end 125.27 new text begin benefits, and whether the jobs created are full time, part time, temporary, or permanent; new text end 125.28 new text begin (2) whether the applicant's stated job creation or retention goals can be adequately new text end 125.29 new text begin measured using methods established by the commissioner; new text end 125.30 new text begin (3) how and to what extent the project proposed by the applicant is expected to impact new text end 125.31 new text begin the economic climate of the Iron Range resources and rehabilitation services area; new text end 126.1 new text begin (4) how the applicant would meet match requirements, if any; and new text end 126.2 new text begin (5) whether the project for which a grant or loan application has been submitted meets new text end 126.3 new text begin the written objectives, priorities, and policies established by the commissioner. new text end 126.4 new text begin (b) The commissioner, if appropriate, may include incentives in loan and grant award new text end 126.5 new text begin agreements to promote and assist grant recipients in achieving the stated job creation and new text end 126.6 new text begin retention objectives established by the commissioner. new text end 126.7 new text begin (c) For all loans and grants awarded from funds under the commissioner's authority new text end 126.8 new text begin pursuant to this chapter, the commissioner must: new text end 126.9 new text begin (1) maintain a database for tracking loan and grant awards; new text end 126.10 new text begin (2) maintain an objective mechanism for measuring job creation and retention; new text end 126.11 new text begin (3) verify achievement of job creation and retention goals by grant and loan recipients; new text end 126.12 new text begin (4) monitor grant and loan awards to ensure that projects comply with applicable Iron new text end 126.13 new text begin Range resources and rehabilitation policies; and new text end 126.14 new text begin (5) verify that grant or loan recipients have met applicable matching fund requirements. new text end 126.15    Sec. 34. Minnesota Statutes 2016, section 298.221, is amended to read: 126.16298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION. 126.17(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant 126.18to the terms of any contract entered into by the state under authority of section 298.22 and 126.19any fees which may, in the discretion of the commissioner of Iron Range resources and 126.20rehabilitation, be charged in connection with any project pursuant to that section as amended, 126.21shall be deposited in the state treasury to the credit of the Iron Range resources and 126.22rehabilitation Board account in the special revenue fund and are hereby appropriated for 126.23the purposes of section 298.22. 126.24(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner 126.25of the Iron Range resources and rehabilitation Board for payment of advertising contracts 126.26if the commissioner determines that the merchandise can be used for special event prizes 126.27or mementos at facilities operated by the board new text begin commissioner new text end . Nothing in this paragraph 126.28authorizes the commissioner or a member of the new text begin advisory new text end board to receive merchandise for 126.29personal use. 126.30(c) All fees charged by the commissioner in connection with public use of the state-owned 126.31ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived 127.1by the commissioner from the operation or lease of those facilities and from the lease, sale, 127.2or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be 127.3deposited into an Iron Range resources and rehabilitation Board account that is created 127.4within the state enterprise fund. All funds deposited in the enterprise fund account are 127.5appropriated to the commissioner to be expended, subject to approval by the board, new text begin and new text end 127.6 new text begin may only be used, after consultation with the advisory board, new text end as follows: 127.7(1) to pay costs associated with the construction, equipping, operation, repair, or 127.8improvement of the Giants Ridge Recreation Area facilities or lands; 127.9(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs 127.10associated with the financing of the facilities; and 127.11(3) to pay the costs of any other project authorized under section 298.22. 127.12    Sec. 35. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read: 127.13    Subd. 3. Project approval. All projects authorized by this section shall be submitted 127.14by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 127.15by the board new text begin The commissioner may authorize a project under this section only after new text end 127.16 new text begin consulting the advisory board new text end . Prior to the commencement of a project involving the exercise 127.17by the commissioner of any authority of sections 469.174 to 469.179, the governing body 127.18of each municipality in which any part of the project is located and the county board of any 127.19county containing portions of the project not located in an incorporated area shall by majority 127.20vote approve or disapprove the project. Any project approved by the board new text begin commissioner new text end 127.21and the applicable governing bodies, if any, together with detailed information concerning 127.22the project, its costs, the sources of its funding, and the amount of any bonded indebtedness 127.23to be incurred in connection with the project, shall be transmitted to the governor, who shall 127.24approve, disapprove, or return the proposal for additional consideration within 30 days of 127.25receipt. No project authorized under this section shall be undertaken, and no obligations 127.26shall be issued and no tax increments shall be expended for a project authorized under this 127.27section until the project has been approved by the governor. 127.28    Sec. 36. Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read: 127.29    Subd. 6. Fee setting. Fees for admission to or use of facilities operated by the 127.30 new text begin commissioner of new text end Iron Range resources and rehabilitation Board that have been established 127.31according to prevailing market conditions and to recover operating costs need not be set by 127.32rule. 128.1    Sec. 37. Minnesota Statutes 2016, section 298.2212, is amended to read: 128.2298.2212 INVESTMENT OF FUNDS. 128.3All funds credited to the Iron Range resources and rehabilitation Board account in the 128.4special revenue fund for the purposes of section 298.22 must be invested pursuant to law. 128.5The net interest and dividends from the investments are included and become part of the 128.6funds available for purposes of section 298.22. 128.7    Sec. 38. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read: 128.8    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection 128.9fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast 128.10Minnesota located within the taconite assistance area defined in section 273.1341, that are 128.11adversely affected by the environmentally damaging operations involved in mining taconite 128.12and iron ore and producing iron ore concentrate and for the purpose of promoting the 128.13economic development of northeast Minnesota. The taconite environmental protection fund 128.14shall be used for the following purposes: 128.15(1) to initiate investigations into matters the new text begin commissioner of new text end Iron Range resources and 128.16rehabilitation Board determines are in need of study and which will determine the 128.17environmental problems requiring remedial action; 128.18(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for 128.19by state law; 128.20(3) local economic development projects but only if those projects are approved by the 128.21board, and public works, including construction of sewer and water systems located within 128.22the taconite assistance area defined in section 273.1341; 128.23(4) monitoring of mineral industry related health problems among mining employees; 128.24and 128.25(5) local public works projects under section 298.227, paragraph (c). 128.26    Sec. 39. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read: 128.27    Subd. 2. Administration. (a) The taconite area environmental protection fund shall be 128.28administered by the commissioner of the Iron Range Resources and Rehabilitation Board new text begin , new text end 128.29 new text begin who must consult with the advisory board before expending any funds new text end . The commissioner 128.30shall by September 1 of each year submit to the board a list of projects to be funded from 129.1the taconite area environmental protection fund, with such supporting information including 129.2description of the projects, plans, and cost estimates as may be necessary. 129.3    (b) Each year no less than one-half of the amounts deposited into the taconite 129.4environmental protection fund must be used for public works projects, including construction 129.5of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range 129.6Resources and Rehabilitation Board may waive the requirements of this paragraph. 129.7    (c) Upon approval by the board, the list of projects approved under this subdivision shall 129.8be submitted to the governor by November 1 of each year. By December 1 of each year, 129.9the governor shall approve or disapprove, or return for further consideration, each project. 129.10Funds for a project may be expended only upon approval of the project by the board and 129.11the governor. The commissioner may submit supplemental projects to the board and governor 129.12for approval at any time. 129.13    Sec. 40. Minnesota Statutes 2016, section 298.227, is amended to read: 129.14298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 129.15    (a) An amount equal to that distributed pursuant to each taconite producer's taxable 129.16production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 129.17 new text begin commissioner of new text end Iron Range resources and rehabilitation Board in a separate taconite 129.18economic development fund for each taconite and direct reduced ore producer. Money from 129.19the fund for each producer shall be released by the commissioner after review by a joint 129.20committee consisting of an equal number of representatives of the salaried employees and 129.21the nonsalaried production and maintenance employees of that producer. The District 11 129.22director of the United States Steelworkers of America, on advice of each local employee 129.23president, shall select the employee members. In nonorganized operations, the employee 129.24committee shall be elected by the nonsalaried production and maintenance employees. The 129.25review must be completed no later than six months after the producer presents a proposal 129.26for expenditure of the funds to the committee. The funds held pursuant to this section may 129.27be released only for workforce development and associated public facility improvement, 129.28or for acquisition of plant and stationary mining equipment and facilities for the producer 129.29or for research and development in Minnesota on new mining, or taconite, iron, or steel 129.30production technology, but only if the producer provides a matching expenditure equal to 129.31the amount of the distribution to be used for the same purpose beginning with distributions 129.32in 2014. Effective for proposals for expenditures of money from the fund beginning May 129.3326, 2007, the commissioner may not release the funds before the next scheduled meeting 129.34of the board. If a proposed expenditure is not approved by the new text begin commissioner, after new text end 130.1 new text begin consultation with the advisory new text end board, the funds must be deposited in the Taconite 130.2Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money 130.3which has been released from the fund prior to May 26, 2007 to procure haulage trucks, 130.4mobile equipment, or mining shovels, and the producer removes the piece of equipment 130.5from the taconite tax relief area defined in section within ten years from the date 130.6of receipt of the money from the fund, a portion of the money granted from the fund must 130.7be repaid to the taconite economic development fund. The portion of the money to be repaid 130.8is 100 percent of the grant if the equipment is removed from the taconite tax relief area 130.9within 12 months after receipt of the money from the fund, declining by ten percent for 130.10each of the subsequent nine years during which the equipment remains within the taconite 130.11tax relief area. If a taconite production facility is sold after operations at the facility had 130.12ceased, any money remaining in the fund for the former producer may be released to the 130.13purchaser of the facility on the terms otherwise applicable to the former producer under this 130.14section. If a producer fails to provide matching funds for a proposed expenditure within six 130.15months after the commissioner approves release of the funds, the funds are available for 130.16release to another producer in proportion to the distribution provided and under the conditions 130.17of this section. Any portion of the fund which is not released by the commissioner within 130.18one year of its deposit in the fund shall be divided between the taconite environmental 130.19protection fund created in section 298.223 and the Douglas J. Johnson economic protection 130.20trust fund created in section 298.292 for placement in their respective special accounts. 130.21Two-thirds of the unreleased funds shall be distributed to the taconite environmental 130.22protection fund and one-third to the Douglas J. Johnson economic protection trust fund. 130.23    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 130.24distributions and the review process, an amount equal to ten cents per taxable ton of 130.25production in 2007, for distribution in 2008 only, that would otherwise be distributed under 130.26paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 130.27wood product facility located in the taconite tax relief area and in a county that contains a 130.28city of the first class. This amount must be deducted from the distribution under paragraph 130.29(a) for which a matching expenditure by the producer is not required. The granting of the 130.30loan or grant is subject to approval by the board. If the money is provided as a loan, interest 130.31must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 130.32Repayments of the loan and interest, if any, must be deposited in the taconite environment 130.33protection fund under sections to . If a loan or grant is not made under this 130.34paragraph by July 1, 2012, the amount that had been made available for the loan under this 130.35paragraph must be transferred to the taconite environment protection fund under sections 130.36298.222 to . (iii) Money distributed in 2008 to the fund established under this section 131.1that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 131.2pro rata basis. 131.3(c) Repayment or transfer of money to the taconite environmental protection fund under 131.4paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation 131.5Board for public works projects in house legislative districts in the same proportion as 131.6taxable tonnage of production in 2007 in each house legislative district, for distribution in 131.72008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 131.8Notwithstanding any other law to the contrary, expenditures under this paragraph do not 131.9require approval by the governor. For purposes of this paragraph, "house legislative districts" 131.10means the legislative districts in existence on May 15, 2009. 131.11    Sec. 41. Minnesota Statutes 2016, section 298.27, is amended to read: 131.12298.27 COLLECTION AND PAYMENT OF TAX. 131.13The taxes provided by section 298.24 shall be paid directly to each eligible county and 131.14the new text begin commissioner of new text end Iron Range resources and rehabilitation Board. The commissioner of 131.15revenue shall notify each producer of the amount to be paid each recipient prior to February 131.1615. Every person subject to taxes imposed by section 298.24 shall file a correct report 131.17covering the preceding year. The report must contain the information required by the 131.18commissioner new text begin of revenue new text end . The report shall be filed by each producer on or before February 131.191. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be 131.20paid on or before February 24. A remittance equal to the remaining total tax required to be 131.21paid hereunder shall be paid on or before August 24. On or before February 25 and August 131.2225, the county auditor shall make distribution of the payments previously received by the 131.23county in the manner provided by section 298.28. Reports shall be made and hearings held 131.24upon the determination of the tax in accordance with procedures established by the 131.25commissioner of revenue. The commissioner of revenue shall have authority to make 131.26reasonable rules as to the form and manner of filing reports necessary for the determination 131.27of the tax hereunder, and by such rules may require the production of such information as 131.28may be reasonably necessary or convenient for the determination and apportionment of the 131.29tax. All the provisions of the occupation tax law with reference to the assessment and 131.30determination of the occupation tax, including all provisions for appeals from or review of 131.31the orders of the commissioner of revenue relative thereto, but not including provisions for 131.32refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent 131.33herewith. If any person subject to section 298.24 shall fail to make the report provided for 131.34in this section at the time and in the manner herein provided, the commissioner of revenue 132.1shall in such case, upon information possessed or obtained, ascertain the kind and amount 132.2of ore mined or produced and thereon find and determine the amount of the tax due from 132.3such person. There shall be added to the amount of tax due a penalty for failure to report 132.4on or before February 1, which penalty shall equal ten percent of the tax imposed and be 132.5treated as a part thereof. 132.6If any person responsible for making a tax payment at the time and in the manner herein 132.7provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount 132.8so due, which penalty shall be treated as part of the tax due. 132.9In the case of any underpayment of the tax payment required herein, there may be added 132.10and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid. 132.11A person having a liability of $120,000 or more during a calendar year must remit all 132.12liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The 132.13funds transfer payment date, as defined in section 336.4A-401, must be on or before the 132.14date the tax is due. If the date the tax is due is not a funds transfer business day, as defined 132.15in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the 132.16funds transfer business day next following the date the tax is due. 132.17    Sec. 42. Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read: 132.18    Subd. 7. Iron Range resources and rehabilitation Board new text begin account new text end . For the 1998 132.19distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and 132.20rehabilitation Board new text begin account new text end for the purposes of section 298.22. That amount shall be 132.21increased for distribution years 1999 through 2014 and for distribution in 2018 and 132.22subsequent years in the same proportion as the increase in the implicit price deflator as 132.23provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision 132.24shall be expended within or for the benefit of the taconite assistance area defined in section 132.25273.1341 . No part of the fund provided in this subdivision may be used to provide loans 132.26for the operation of private business unless the loan is approved by the governor. 132.27    Sec. 43. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read: 132.28    Subd. 7a. Iron Range school consolidation and cooperatively operated school account. 132.29(a) The following amounts must be allocated to the new text begin commissioner of new text end Iron Range resources 132.30and rehabilitation Board to be deposited in the Iron Range school consolidation and 132.31cooperatively operated school account that is hereby created: 133.1(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 133.2under section 298.24; and 133.3(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 133.4under section 298.24; 133.5(2) the amount as determined under section 298.17, paragraph (b), clause (3); 133.6(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 133.7proceeds attributable to the increase in the implicit price deflator as provided in section 133.8298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J. 133.9Johnson economic protection trust fund; 133.10(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 133.11tax proceeds attributable to the increase in the implicit price deflator as provided in section 133.12298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining one-third 133.13to be distributed to the Douglas J. Johnson economic protection trust fund; and 133.14(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased 133.15tax proceeds attributable to the increase in the implicit price deflator as provided in section 133.16298.24, subdivision 1 , for distribution years 2015, 2016, and 2017, with the remaining 133.17one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and 133.18(4) any other amount as provided by law. 133.19(b) Expenditures from this account new text begin may be approved as ongoing annual expenditures new text end 133.20 new text begin and new text end shall be made only to provide disbursements to assist school districts with the payment 133.21of bonds that were issued for qualified school projects, or for any other school disbursement 133.22as approved by the new text begin commissioner of Iron Range resources and rehabilitation after consultation new text end 133.23 new text begin with the new text end Iron Range Resources and Rehabilitation Board. For purposes of this section, 133.24"qualified school projects" means school projects within the taconite assistance area as 133.25defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 133.26and (2) approved by the commissioner of education pursuant to section 123B.71. 133.27(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 133.28bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 133.29any reduction in debt service equalization aid that the school district qualifies for in that 133.30year, under section 123B.53, subdivision 6, compared with the amount the school district 133.31qualified for in fiscal year 2018. 134.1(d) No expenditure under this section shall be made unless approved by seven members 134.2of new text begin the commissioner of Iron Range resources and rehabilitation after consultation with new text end the 134.3Iron Range Resources and Rehabilitation Board. 134.4    Sec. 44. Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read: 134.5    Subd. 9c. Distribution; city of Eveleth. 0.20 cent per taxable ton must be paid to the 134.6city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the 134.7Hockey Hall of Fame, provided that it continues to operate in that city, and provided that 134.8the city of Eveleth certifies to the St. Louis County auditor that it has received donations 134.9for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame 134.10ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and 134.11the governing body of the city determines that it is unlikely to resume operation there within 134.12a six-month period, the distribution under this subdivision shall be made to the new text begin commissioner new text end 134.13 new text begin of new text end Iron Range resources and rehabilitation Board. 134.14    Sec. 45. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read: 134.15    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must be 134.16allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron 134.17Range higher education account that is hereby created, to be used for higher education 134.18programs conducted at educational institutions in the taconite assistance area defined in 134.19section 273.1341. The Iron Range Higher Education committee under section 298.2214, 134.20and the new text begin commissioner of new text end Iron Range resources and rehabilitation Board new text begin , after consultation new text end 134.21 new text begin with the advisory board, new text end must approve all expenditures from the account. 134.22    Sec. 46. Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read: 134.23    Subd. 11. Remainder. (a) The proceeds of the tax imposed by section 298.24 which 134.24remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 134.25commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 134.26interest earned on all money distributed under this section prior to distribution, shall be 134.27divided between the taconite environmental protection fund created in section 298.223 and 134.28the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows: 134.29Two-thirds to the taconite environmental protection fund and one-third to the Douglas J. 134.30Johnson economic protection trust fund. The proceeds shall be placed in the respective 134.31special accounts. 135.1(b) There shall be distributed to each city, town, and county the amount that it received 135.2under new text begin Minnesota Statutes 1978, new text end section 294.26 new text begin , new text end in calendar year 1977; provided, however, 135.3that the amount distributed in 1981 to the unorganized territory number 2 of Lake County 135.4and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company 135.5will be distributed in 1982 and subsequent years to the unorganized territory number 2 of 135.6Lake County and the towns of Beaver Bay and Stony River based on the miles of track of 135.7Erie Mining Company in each taxing district. 135.8(c) There shall be distributed to the Iron Range resources and rehabilitation Board new text begin account new text end 135.9the amounts it received in 1977 under new text begin Minnesota Statutes 1978, new text end section 298.22. The amount 135.10distributed under this paragraph shall be expended within or for the benefit of the taconite 135.11assistance area defined in section 273.1341. 135.12(d) There shall be distributed to each school district 62 percent of the amount that it 135.13received under new text begin Minnesota Statutes 1978, new text end section 294.26 new text begin , new text end in calendar year 1977. 135.14    Sec. 47. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read: 135.15    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 135.16fund may be used for the following purposes: 135.17    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 135.18with private sources of financing, but a loan to a private enterprise shall be for a principal 135.19amount not to exceed one-half of the cost of the project for which financing is sought, and 135.20the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 135.21percent or an interest rate three percentage points less than a full faith and credit obligation 135.22of the United States government of comparable maturity, at the time that the loan is approved; 135.23    (2) to fund reserve accounts established to secure the payment when due of the principal 135.24of and interest on bonds issued pursuant to section 298.2211; 135.25    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 135.26bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 135.27retrofitting heating facilities in connection with district heating systems or systems utilizing 135.28alternative energy sources; 135.29    (4) to invest in a venture capital fund or enterprise that will provide capital to other 135.30entities that are engaging in, or that will engage in, projects or programs that have the 135.31purposes set forth in subdivision 1. No investments may be made in a venture capital fund 135.32or enterprise unless at least two other unrelated investors make investments of at least 135.33$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 136.1Johnson economic protection trust fund may not exceed the amount of the largest investment 136.2by an unrelated investor in the venture capital fund or enterprise. For purposes of this 136.3subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 136.4which the investment is made or to any individual who owns more than 40 percent of the 136.5value of the entity, in any of the following relationships: spouse, parent, child, sibling, 136.6employee, or owner of an interest in the entity that exceeds ten percent of the value of all 136.7interests in it. For purposes of determining the limitations under this clause, the amount of 136.8investments made by an investor other than the Douglas J. Johnson economic protection 136.9trust fund is the sum of all investments made in the venture capital fund or enterprise during 136.10the period beginning one year before the date of the investment by the Douglas J. Johnson 136.11economic protection trust fund; and 136.12    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 136.13be held and managed as a public trust for the benefit of the area for the purposes authorized 136.14in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 136.15commissioner upon approval by the new text begin , after consultation with the advisory new text end board. The net 136.16proceeds must be deposited in the trust fund for the purposes and uses of this section. 136.17    Money from the trust fund shall be expended only in or for the benefit of the taconite 136.18assistance area defined in section 273.1341. 136.19    Sec. 48. Minnesota Statutes 2016, section 298.296, is amended to read: 136.20298.296 OPERATION OF FUND. 136.21    Subdivision 1. Project approval. The board and commissioner shall by August 1 of 136.22each year prepare a list of projects to be funded from the Douglas J. Johnson economic 136.23protection trust with necessary supporting information including description of the projects, 136.24plans, and cost estimates. These Projects shall be consistent with the priorities established 136.25in section 298.292 and shall not be approved by the board unless it new text begin commissioner unless new text end 136.26 new text begin the commissioner, after consultation with the advisory board, new text end finds that: 136.27(a) the project will materially assist, directly or indirectly, the creation of additional 136.28long-term employment opportunities; 136.29(b) the prospective benefits of the expenditure exceed the anticipated costs; and 136.30(c) in the case of assistance to private enterprise, the project will serve a sound business 136.31purpose. 136.32Each project must be approved by over one-half of all of the members of the board and 136.33the commissioner of Iron Range resources and rehabilitation. The list of projects shall be 137.1submitted to the governor, who shall, by November 15 of each year, approve or disapprove, 137.2or return for further consideration, each project. The money for a project may be expended 137.3only upon approval of the project by the governor. The board may submit supplemental 137.4projects for approval at any time. 137.5    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 137.6projects and for administration of the trust fund only from the net interest, earnings, and 137.7dividends arising from the investment of the trust at any time, including net interest, earnings, 137.8and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for 137.9use in fiscal year 1983, except that any amount required to be paid out of the trust fund to 137.10provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and 137.11to make school bond payments and payments to recipients of taconite production tax proceeds 137.12pursuant to section 298.225, may be taken from the corpus of the trust. 137.13    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus 137.14of the trust may be made available for use as provided in subdivision 4, and up to $10,000,000 137.15from the corpus of the trust may be made available for use as provided in section . 137.16    (c) new text begin (b) new text end Additionally, an amount equal to 20 percent of the value of the corpus of the trust 137.17on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 137.18made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 137.19section 17, may be expended on projects. Funds new text begin The commissioner new text end may be expended new text begin expend new text end 137.20 new text begin funds new text end for projects under this paragraph only if the project: 137.21    (1) new text begin the project new text end is for the purposes established under section 298.292, subdivision 1, 137.22clause (1) or (2); and 137.23    (2) is approved by two-thirds of all of the members of the board new text begin the commissioner has new text end 137.24 new text begin consulted with the advisory board new text end . 137.25No money made available under this paragraph or paragraph (d) new text begin (c) new text end can be used for 137.26administrative or operating expenses of the new text begin Department of new text end Iron Range Resources and 137.27Rehabilitation Board or expenses relating to any facilities owned or operated by the board new text begin new text end 137.28 new text begin commissioner new text end on May 18, 2002. 137.29    (d) Upon recommendation by a unanimous vote of all members of the board, new text begin (c) The new text end 137.30 new text begin commissioner may spend new text end amounts in addition to those authorized under paragraphs (a), new text begin and new text end 137.31(b), and (c) may be expended on projects described in section 298.292, subdivision 1 new text begin , only new text end 137.32 new text begin after consultation with the advisory board new text end . 138.1    (e) new text begin (d) new text end Annual administrative costs, not including detailed engineering expenses for the 138.2projects, shall not exceed five percent of the net interest, dividends, and earnings arising 138.3from the trust in the preceding fiscal year. 138.4    (f) new text begin (e) new text end Principal and interest received in repayment of loans made pursuant to this section, 138.5and earnings on other investments made under section 298.292, subdivision 2, clause (4), 138.6shall be deposited in the state treasury and credited to the trust. These receipts are 138.7appropriated to the board for the purposes of sections 298.291 to new text begin 298.297 new text end . 138.8    (g) new text begin (f) new text end Additionally, notwithstanding section 298.293, upon the approval of the board, new text begin new text end 138.9 new text begin the commissioner, after consultation with the advisory board, may expend new text end money from the 138.10corpus of the trust may be expanded to purchase forest lands within the taconite assistance 138.11area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5). 138.12    Subd. 3. Administration. The commissioner and staff of the Iron Range resources and 138.13rehabilitation Board shall administer the program under which funds are expended pursuant 138.14to sections 298.292 to new text begin 298.297 new text end . 138.15    Subd. 4. Temporary loan authority. (a) The board may recommend that new text begin After new text end 138.16 new text begin consultation with the advisory board, the commissioner may use new text end up to $7,500,000 from the 138.17corpus of the trust may be used for loans, loan guarantees, grants, or equity investments as 138.18provided in this subdivision. The money would be available for loans for construction and 138.19equipping of facilities constituting (1) a value added iron products plant, which may be 138.20either a new plant or a facility incorporated into an existing plant that produces iron upgraded 138.21to a minimum of 75 percent iron content or any iron alloy with a total minimum metallic 138.22content of 90 percent; or (2) a new mine or minerals processing plant for any mineral subject 138.23to the net proceeds tax imposed under section 298.015. A loan or loan guarantee under this 138.24paragraph may not exceed $5,000,000 for any facility. 138.25(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends, 138.26and earnings arising from the investment of the trust after June 30, 1996, to be used for 138.27grants, loans, loan guarantees, or equity investments for the purposes set forth in paragraph 138.28(a). This amount must be reserved until it is used as described in this subdivision. 138.29(c) new text begin (b) new text end Additionally, the board may recommend that new text begin the commissioner, after consultation new text end 138.30 new text begin with the advisory board, may use new text end up to $5,500,000 from the corpus of the trust may be used 138.31for additional grants, loans, loan guarantees, or equity investments for the purposes set forth 138.32in paragraph (a). 139.1(d) new text begin (c) new text end The board new text begin commissioner, after consultation with the advisory board, new text end may require 139.2that it new text begin the fund new text end receive an equity percentage in any project to which it contributes under this 139.3section. 139.4    Sec. 49. Minnesota Statutes 2016, section 298.2961, is amended to read: 139.5298.2961 PRODUCER GRANTS. 139.6    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas J. 139.7Johnson economic protection trust fund to a special account in the taconite area environmental 139.8protection fund for grants to producers on a project-by-project basis as provided in this 139.9section. 139.10(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are 139.11appropriated for grants to producers on a project-by-project basis as provided in this section. 139.12    Subd. 2. Projects; approval. (a) Projects funded must be for: 139.13    (1) environmentally unique reclamation projects; or 139.14    (2) pit or plant repairs, expansions, or modernizations other than for a value added iron 139.15products plant. 139.16    (b) To be proposed by the board, a project must be approved by the board. The money 139.17for a project may be spent only upon approval of the project by the governor. The board 139.18may submit supplemental projects for approval at any time new text begin The commissioner may approve new text end 139.19 new text begin a project only after consultation with the advisory board new text end . 139.20    (c) The new text begin commissioner, after consultation with the advisory new text end board new text begin , new text end may require that it new text begin new text end 139.21 new text begin the fund new text end receive an equity percentage in any project to which it contributes under this section. 139.22    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations at 139.23the facility had ceased, any money remaining in the taconite environmental fund for the 139.24former producer may be released to the purchaser of the facility on the terms otherwise 139.25applicable to the former producer under this section. 139.26(b) Any portion of the taconite environmental fund that is not released by the 139.27commissioner within three years of its deposit in the taconite environmental fund shall be 139.28divided between the taconite environmental protection fund created in section 298.223 and 139.29the Douglas J. Johnson economic protection trust fund created in section 298.292 for 139.30placement in their respective special accounts. Two-thirds of the unreleased funds must be 139.31distributed to the taconite environmental protection fund and one-third to the Douglas J. 139.32Johnson economic protection trust fund. 140.1    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under 140.2section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 140.3Any grant or loan made under this subdivision must be approved by the new text begin commissioner, after new text end 140.4 new text begin consultation with the advisory new text end board, established under section 298.22. 140.5    (b) All distributions received in 2009 and subsequent years are allocated for projects 140.6under section 298.223, subdivision 1. 140.7    Sec. 50. Minnesota Statutes 2016, section 298.297, is amended to read: 140.8298.297 ADVISORY COMMITTEES. 140.9Before submission of a project to the new text begin advisory new text end board, the commissioner of Iron Range 140.10resources and rehabilitation shall appoint a technical advisory committee consisting of one 140.11or more persons who are knowledgeable in areas related to the objectives of the proposal. 140.12Members of the committees shall be compensated as provided in section 15.059, subdivision 140.133 . The new text begin advisory new text end board shall not act new text begin make recommendations new text end on a proposal until it has received 140.14the evaluation and recommendations of the technical advisory committee or until 15 days 140.15have elapsed since the proposal was transmitted to the advisory committee, whichever 140.16occurs first. 140.17    Sec. 51. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read: 140.18    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly 140.19constituted authorities of a taxing district there are in existence reserves of unmined iron 140.20ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range 140.21resources and rehabilitation Board for authority to petition the county assessor to verify the 140.22existence of such reserves and to ascertain the value thereof by drilling in a manner consistent 140.23with established engineering and geological exploration methods, in order that such taxing 140.24district may be able to forecast in a proper manner its future economic and fiscal potentials. new text begin new text end 140.25 new text begin The commissioner of Iron Range resources and rehabilitation may grant the authority to new text end 140.26 new text begin petition only after consultation with the advisory board. new text end 140.27    Sec. 52. Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read: 140.28    Subd. 5. Payment of costs; reimbursement. The cost of such exploration or drilling 140.29plus any damages to the property which may be assessed by the district court shall be paid 140.30by the new text begin commissioner of new text end Iron Range resources and rehabilitation Board from amounts 140.31appropriated to that board new text begin the commissioner of Iron Range resources and rehabilitation new text end 140.32under section 298.22. The new text begin commissioner of new text end Iron Range resources and rehabilitation Board 141.1shall be reimbursed for one-half of the amounts thus expended. Such reimbursement shall 141.2be made by the taxing districts in the proportion that each such taxing district's levy on the 141.3property involved bears to the total levy on such property. Such reimbursement shall be 141.4made to the new text begin commissioner of new text end Iron Range resources and rehabilitation Board in the manner 141.5provided by section 298.221. 141.6    Sec. 53. Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read: 141.7    Subd. 6. Refusal to reimburse; reduction of other payments. If any taxing district 141.8refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor 141.9is hereby authorized to reduce payments required to be made by the county to such taxing 141.10district under other provisions of law. Thereafter the auditor shall draw a warrant, which 141.11shall be deposited with the state treasury in accordance with section 298.221, to the credit 141.12of the new text begin commissioner of new text end Iron Range resources and rehabilitation Board. 141.13    Sec. 54. Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read: 141.14    Subd. 6c. Water access sites. Any claim based upon the construction, operation, or 141.15maintenance by a municipality of a water access site created by the new text begin commissioner of new text end Iron 141.16Range resources and rehabilitation Board. A water access site under this subdivision that 141.17provides access to an idled, water filled mine pit also includes the entire water filled area 141.18of the pit, and, further, claims related to a mine pit water access site under this subdivision 141.19include those based upon the caving or slumping of mine pit walls. 141.20    Sec. 55. Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read: 141.21    Subd. 9. Local government unit. "Local government unit" means a statutory or home 141.22rule charter city, county, town, new text begin the Department of new text end Iron Range Resources and Rehabilitation 141.23agency, regional development commission, or a federally designated economic development 141.24district. 141.25    Sec. 56. Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read: 141.26    Subd. 21. Preliminary resolution. "Preliminary resolution" means a resolution adopted 141.27by the governing body or board of the issuer, or in the case of the new text begin by the commissioner of new text end 141.28Iron Range resources and rehabilitation Board by the commissioner. The resolution must 141.29express a preliminary intention of the issuer to issue obligations for a specific project, 141.30identify the proposed project, and disclose the proposed amount of qualified bonds to be 142.1issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify 142.2a specific project. 142.3    Sec. 57. Laws 2010, chapter 389, article 5, section 7, is amended to read: 142.4    Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY. 142.5    Subdivision 1. Additional taxes authorized. Notwithstanding Minnesota Statutes, 142.6section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city 142.7of Biwabik, upon approval both by its governing body and by the vote of at least seven 142.8members of the Iron Range Resources and Rehabilitation Board, may impose any or all of 142.9the taxes described in this section. 142.10    Subd. 2. Use of proceeds. The proceeds of any taxes imposed under this section, less 142.11refunds and costs of collection, must be deposited into the Iron Range Resources and 142.12Rehabilitation Board account enterprise fund created under the provisions of Minnesota 142.13Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the 142.14commissioner of the Iron Range resources and rehabilitation Board, upon approval by the 142.15vote of at least seven members of new text begin after consultation with new text end the Iron Range Resources and 142.16Rehabilitation Board, to pay costs for the construction, renovation, improvement, expansion, 142.17and maintenance of public recreational facilities located in those portions of the city within 142.18the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, 142.19subdivision 7 , or to pay any principal, interest, or premium on any bond issued to finance 142.20the construction, renovation, improvement, or expansion of such public recreational facilities. 142.21    Subd. 3. Lodging tax. new text begin (a) new text end The city of Biwabik, upon approval both by its governing 142.22body and by the vote of at least seven members of the Iron Range Resources and 142.23Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the 142.24gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This 142.25tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may 142.26be imposed only on gross lodging receipts generated within the Giants Ridge Recreation 142.27Area as defined in Minnesota Statutes, section 298.22, subdivision 7. 142.28 new text begin (b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax new text end 142.29 new text begin imposed under paragraph (a), the change must be approved by both the governing body of new text end 142.30 new text begin the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after new text end 142.31 new text begin the commissioner of Iron Range resources and rehabilitation consults with the Iron Range new text end 142.32 new text begin Resources and Rehabilitation Board. new text end 143.1    Subd. 4. Admissions and recreation tax. (a) The city of Biwabik, upon approval both 143.2by its governing body and by the vote of at least seven members of the Iron Range Resources 143.3and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent 143.4on admission receipts to entertainment and recreational facilities and on receipts from the 143.5rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined 143.6in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes, 143.7section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration, 143.8collection, and enforcement of the tax authorized in this subdivision. 143.9(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an 143.10exemption for purchases of season tickets or passes. 143.11 new text begin (c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax new text end 143.12 new text begin imposed under paragraph (a), the change must be approved by both the governing body of new text end 143.13 new text begin the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after new text end 143.14 new text begin the commissioner of Iron Range resources and rehabilitation consults with the Iron Range new text end 143.15 new text begin Resources and Rehabilitation Board. new text end 143.16    Subd. 5. Food and beverage tax. new text begin (a) new text end The city of Biwabik, upon approval both by its 143.17governing body and by the vote of at least seven members of the Iron Range Resources and 143.18Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than 143.19one percent on gross receipts of food and beverages sold whether it is consumed on or off 143.20the premises by restaurants and places of refreshment as defined by resolution of the city 143.21within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, 143.22subdivision 7 . The provisions of Minnesota Statutes, section 297A.99, except for subdivisions 143.232 and 3, govern the imposition, administration, collection, and enforcement of the tax 143.24authorized in this subdivision. 143.25 new text begin (b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax new text end 143.26 new text begin imposed under paragraph (a), the change must be approved by both the governing body of new text end 143.27 new text begin the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after new text end 143.28 new text begin the commissioner of Iron Range resources and rehabilitation consults with the Iron Range new text end 143.29 new text begin Resources and Rehabilitation Board. new text end 143.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, without local approval new text end 143.31 new text begin pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end 144.1    Sec. 58. new text begin DEPARTMENT OF IRON RANGE RESOURCES AND new text end 144.2 new text begin REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM new text end 144.3 new text begin AUTHORIZATION. new text end 144.4 new text begin (a) "Commissioner" as used in this section means the commissioner of Iron Range new text end 144.5 new text begin resources and rehabilitation unless otherwise specified. new text end 144.6 new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation with the new text end 144.7 new text begin commissioner of management and budget, shall offer a targeted early separation incentive new text end 144.8 new text begin program for employees of the commissioner who have attained the age of 60 years or who new text end 144.9 new text begin have received credit for at least 30 years of allowable service under the provisions of new text end 144.10 new text begin Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation new text end 144.11 new text begin incentive program for employees of the commissioner whose positions are in support of new text end 144.12 new text begin operations at Giants Ridge and will be eliminated if the department no longer directly new text end 144.13 new text begin manages Giants Ridge operations. new text end 144.14 new text begin (c) The early separation incentive program may include one or more of the following: new text end 144.15 new text begin (1) employer-paid postseparation health, medical, and dental insurance until age 65; and new text end 144.16 new text begin (2) cash incentives that may, but are not required to be, used to purchase additional years new text end 144.17 new text begin of service credit through the Minnesota State Retirement System, to the extent that the new text end 144.18 new text begin purchases are otherwise authorized by law. new text end 144.19 new text begin (d) The commissioner shall establish eligibility requirements for employees to receive new text end 144.20 new text begin an incentive. The commissioner must exclude from eligibility for the incentive program new text end 144.21 new text begin employees having less than 20 years of allowable service who would otherwise qualify for new text end 144.22 new text begin the incentive program. new text end 144.23 new text begin (e) The commissioner, consistent with the established program provisions under paragraph new text end 144.24 new text begin (b), and with the eligibility requirements under paragraph (f), may designate specific new text end 144.25 new text begin programs or employees as eligible to be offered the incentive program. new text end 144.26 new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the employee new text end 144.27 new text begin and must be in writing. The incentive may only be offered at the sole discretion of the new text end 144.28 new text begin commissioner. new text end 144.29 new text begin (g) The cost of the incentive is payable solely by funds made available to the new text end 144.30 new text begin commissioner by law, but only on prior approval of the expenditures by the commissioner, new text end 144.31 new text begin after consultation with the Iron Range Resources and Rehabilitation Board. new text end 144.32 new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair labor new text end 144.33 new text begin practice under Minnesota Statutes, chapter 179A. new text end 145.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. This new text end 145.2 new text begin section expires July 30, 2018. new text end 145.3    Sec. 59. new text begin REVISOR'S INSTRUCTION. new text end 145.4 new text begin The revisor of statutes, with cooperation from the House Research Department and the new text end 145.5 new text begin Senate Counsel, Research and Fiscal Analysis Office, shall prepare legislation that makes new text end 145.6 new text begin conforming changes in accordance with the provisions of this article. The revisor shall new text end 145.7 new text begin submit the proposal, in a form ready for introduction, during the 2018 regular legislative new text end 145.8 new text begin session to the chairs and ranking minority members of the senate and house of representatives new text end 145.9 new text begin committees with jurisdiction over jobs and economic development. new text end 145.10    Sec. 60. new text begin REPEALER. new text end 145.11 new text begin Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, new text end new text begin are new text end 145.12 new text begin repealed. new text end 145.13ARTICLE 8 145.14COMMERCE POLICY 145.15    Section 1. Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read: 145.16    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention account 145.17is created in the state treasury. Money received from assessments under subdivision 7 and 145.18transferred from the automobile theft prevention account in section new text begin sections new text end 65B.84, 145.19subdivision 1 new text begin , and 297I.11, subdivision 2 new text end , is deposited in the account. Money in this fund 145.20is appropriated to the commissioner of commerce for the purposes specified in this section 145.21and sections 60A.951 to 60A.956. 145.22    Sec. 2. Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read: 145.23    Subd. 7. Fiscal year assessments. Such assessments shall be levied on July 1, 1965, 145.24and at new text begin prior to new text end the beginning of each fiscal period beginning July 1 and ending June 30 145.25thereafter, and shall be based on the total estimated expense as herein referred to during 145.26such period new text begin . Assessment revenue will be remitted to the commissioner for deposit in the new text end 145.27 new text begin financial institutions account on or before July 1 of each year new text end . 146.1    Sec. 3. Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to 146.2read: 146.3     new text begin Subd. 11. new text end new text begin Financial institutions account; appropriation. new text end new text begin (a) The financial institutions new text end 146.4 new text begin account is created as a separate account in the special revenue fund. The account consists new text end 146.5 new text begin of funds received from assessments under subdivision 7 and examination fees under new text end 146.6 new text begin subdivision 8. Earnings, including interest, dividends, and any other earnings arising from new text end 146.7 new text begin account assets, must be credited to the account. new text end 146.8 new text begin (b) Funds in the account are annually appropriated to the commissioner of commerce new text end 146.9 new text begin for activities under this section. new text end 146.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 146.11    Sec. 4. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read: 146.12    Subdivision 1. Program described; commissioner's duties; appropriation. (a) The 146.13commissioner of commerce shall: 146.14(1) develop and sponsor the implementation of statewide plans, programs, and strategies 146.15to combat automobile theft, improve the administration of the automobile theft laws, and 146.16provide a forum for identification of critical problems for those persons dealing with 146.17automobile theft; 146.18(2) coordinate the development, adoption, and implementation of plans, programs, and 146.19strategies relating to interagency and intergovernmental cooperation with respect to 146.20automobile theft enforcement; 146.21(3) annually audit the plans and programs that have been funded in whole or in part to 146.22evaluate the effectiveness of the plans and programs and withdraw funding should the 146.23commissioner determine that a plan or program is ineffective or is no longer in need of 146.24further financial support from the fund; 146.25(4) develop a plan of operation including: 146.26(i) an assessment of the scope of the problem of automobile theft, including areas of the 146.27state where the problem is greatest; 146.28(ii) an analysis of various methods of combating the problem of automobile theft; 146.29(iii) a plan for providing financial support to combat automobile theft; 146.30(iv) a plan for eliminating car hijacking; and 146.31(v) an estimate of the funds required to implement the plan; and 147.1(5) distribute money, in consultation with the commissioner of public safety, pursuant 147.2to subdivision 3 from the automobile theft prevention special revenue account for automobile 147.3theft prevention activities, including: 147.4(i) paying the administrative costs of the program; 147.5(ii) providing financial support to the State Patrol and local law enforcement agencies 147.6for automobile theft enforcement teams; 147.7(iii) providing financial support to state or local law enforcement agencies for programs 147.8designed to reduce the incidence of automobile theft and for improved equipment and 147.9techniques for responding to automobile thefts; 147.10(iv) providing financial support to local prosecutors for programs designed to reduce 147.11the incidence of automobile theft; 147.12(v) providing financial support to judicial agencies for programs designed to reduce the 147.13incidence of automobile theft; 147.14(vi) providing financial support for neighborhood or community organizations or business 147.15organizations for programs designed to reduce the incidence of automobile theft and to 147.16educate people about the common methods of automobile theft, the models of automobiles 147.17most likely to be stolen, and the times and places automobile theft is most likely to occur; 147.18and 147.19(vii) providing financial support for automobile theft educational and training programs 147.20for state and local law enforcement officials, driver and vehicle services exam and inspections 147.21staff, and members of the judiciary. 147.22(b) The commissioner may not spend in any fiscal year more than ten percent of the 147.23money in the fund for the program's administrative and operating costs. The commissioner 147.24is annually appropriated and must distribute the amount of the proceeds credited to the 147.25automobile theft prevention special revenue account each year, less the transfer of $1,300,000 147.26each year to the general fund new text begin insurance fraud prevention account new text end described in section 297I.11, 147.27subdivision 2 . 147.28(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances 147.29in the auto theft prevention account to the insurance fraud prevention account under section 147.3045.0135, subdivision 6 . 148.1    Sec. 5. new text begin [72A.328] AFFINITY GROUP. new text end 148.2     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section the following terms have new text end 148.3 new text begin the meanings given. new text end 148.4 new text begin (b) "Affinity program" means a group of individuals who are members of an entity that new text end 148.5 new text begin offers individuals benefits based on their membership in that entity. Affinity program does new text end 148.6 new text begin not include an entity that obtains group insurance, as defined in section 60A.02, subdivision new text end 148.7 new text begin 28, or risk retention groups as defined in section 60E.02, subdivision 12. new text end 148.8 new text begin (c) "Policy" means an individually underwritten policy of private passenger vehicle new text end 148.9 new text begin insurance, as defined in section 65B.001, subdivision 2, or an individually underwritten new text end 148.10 new text begin policy of homeowner's insurance, as defined in section 65A.27, subdivision 4. new text end 148.11     new text begin Subd. 2. new text end new text begin Discount. new text end new text begin An insurance company may offer an individual a discount or other new text end 148.12 new text begin benefit relating to a policy based on the individual's membership in an affinity program if: new text end 148.13 new text begin (1) the benefit or discount is based on an actuarial justification; and new text end 148.14 new text begin (2) the insurance company offers the benefit or discount to all members of the affinity new text end 148.15 new text begin program eligible for the discount or benefit. new text end 148.16    Sec. 6. Minnesota Statutes 2016, section 80A.61, is amended to read: 148.1780A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT, 148.18FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER 148.19REPRESENTATIVE. 148.20    (a) Application for initial registration by broker-dealer, agent, or investment adviser new text begin , new text end 148.21 new text begin or investment adviser representative new text end . A person shall register as a broker-dealer, agent, 148.22or investment adviser new text begin , or investment adviser representative new text end by filing an application and a 148.23consent to service of process complying with section 80A.88, and paying the fee specified 148.24in section 80A.65 and any reasonable fees charged by the designee of the administrator for 148.25processing the filing. The application must contain: 148.26    (1) the information or record required for the filing of a uniform application; and 148.27    (2) upon request by the administrator, any other financial or other information or record 148.28that the administrator determines is appropriate. 148.29    (b) Amendment. If the information or record contained in an application filed under 148.30subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant 148.31shall promptly file a correcting amendment. 149.1    (c) Effectiveness of registration. If an order is not in effect and a proceeding is not 149.2pending under section 80A.67, registration becomes effective at noon on the 45th day after 149.3a completed application is filed, unless the registration is denied. A rule adopted or order 149.4issued under this chapter may set an earlier effective date or may defer the effective date 149.5until noon on the 45th day after the filing of any amendment completing the application. 149.6    (d) Registration renewal. A registration is effective until midnight on December 31 of 149.7the year for which the application for registration is filed. Unless an order is in effect under 149.8section 80A.67, a registration may be automatically renewed each year by filing such records 149.9as are required by rule adopted or order issued under this chapter, by paying the fee specified 149.10in section 80A.65, and by paying costs charged by the designee of the administrator for 149.11processing the filings. 149.12    (e) Additional conditions or waivers. A rule adopted or order issued under this chapter 149.13may impose such other conditions, not inconsistent with the National Securities Markets 149.14Improvement Act of 1996. An order issued under this chapter may waive, in whole or in 149.15part, specific requirements in connection with registration as are in the public interest and 149.16for the protection of investors. 149.17(f) Funding portal registration. A funding portal that has its principal place of business 149.18in the state of Minnesota shall register with the state of Minnesota by filing with the 149.19administrator a copy of the information or record required for the filing of an application 149.20for registration as a funding portal in the manner established by the Securities and Exchange 149.21Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with 149.22any rule adopted or order issued, and any amendments thereto. 149.23    (g) Application for investment adviser representative registration. 149.24    (1) The application for initial registration as an investment adviser representative pursuant 149.25to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities 149.26Industry Registration or Transfer) in accordance with the form instructions and by filing 149.27the form U-4 with the IARD. The application for initial registration must also include the 149.28following: 149.29    (i) proof of compliance by the investment adviser representative with the examination 149.30requirements of: 149.31    (A) the Uniform Investment Adviser Law Examination (Series 65); or 149.32    (B) the General Securities Representative Examination (Series 7) and the Uniform 149.33Combined State Law Examination (Series 66); 150.1    (ii) any other information the administrator may reasonably require. 150.2    (2) The application for the annual renewal registration as an investment adviser 150.3representative shall be filed with the IARD. 150.4    (3)(i) The investment adviser representative is under a continuing obligation to update 150.5information required by Form U-4 as changes occur; 150.6    (ii) An investment adviser representative and the investment adviser must file promptly 150.7with the IARD any amendments to the representative's Form U-4; and 150.8    (iii) An amendment will be considered to be filed promptly if the amendment is filed 150.9within 30 days of the event that requires the filing of the amendment. 150.10    (4) An application for initial or renewal of registration is not considered filed for purposes 150.11of section 80A.58 until the required fee and all required submissions have been received 150.12by the administrator. 150.13    (5) The application for withdrawal of registration as an investment adviser representative 150.14pursuant to section 80A.58 shall be completed by following the instructions on Form U-5 150.15(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5 150.16with the IARD. 150.17    Sec. 7. Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read: 150.18    Subd. 2. Registration application and renewal filing fee. Every applicant for an initial 150.19or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $50 new text begin $65 new text end 150.20in the case of an agent, and $100 in the case of an investment adviser new text begin , and $50 in the case new text end 150.21 new text begin of an investment adviser representative new text end . When an application is denied or withdrawn, the 150.22filing fee shall be retained. A registered agent who has terminated employment with one 150.23broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer 150.24fee of $25. 150.25    Sec. 8. Minnesota Statutes 2016, section 216B.62, subdivision 3b, is amended to read: 150.26    Subd. 3b. Assessment for department regional and national duties. In addition to 150.27other assessments in subdivision 3, the department may assess up to $1,000,000 new text begin $500,000 new text end 150.28per fiscal year for performing its duties under section 216A.07, subdivision 3a. The amount 150.29in this subdivision shall be assessed to energy utilities in proportion to their respective gross 150.30operating revenues from retail sales of gas or electric service within the state during the last 150.31calendar year and shall be deposited into an account in the special revenue fund and is 150.32appropriated to the commissioner of commerce for the purposes of section 216A.07, 151.1subdivision 3a . An assessment made under this subdivision is not subject to the cap on 151.2assessments provided in subdivision 3 or any other law. For the purpose of this subdivision, 151.3an "energy utility" means public utilities, generation and transmission cooperative electric 151.4associations, and municipal power agencies providing natural gas or electric service in the 151.5state. This subdivision expires June 30, 2017 new text begin 2018 new text end . 151.6    Sec. 9. new text begin [239.7511] GAS TAX SIGN ON PETROLEUM DISPENSER. new text end 151.7 new text begin (a) The director must ensure that signs having 12-point font or greater are affixed on new text end 151.8 new text begin retail petroleum dispensers as follows: new text end 151.9 new text begin (1) for regular or premium gasoline, a sign that reads: "The price for each gallon of new text end 151.10 new text begin gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline new text end 151.11 new text begin tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and new text end 151.12 new text begin bridges, according to the Minnesota Constitution."; and new text end 151.13 new text begin (2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes new text end 151.14 new text begin the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents new text end 151.15 new text begin per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according new text end 151.16 new text begin to the Minnesota Constitution." new text end 151.17 new text begin (b) The director must distribute the signs under this section to the owner or operator of new text end 151.18 new text begin retail petroleum dispensers. To the extent possible, the director must coordinate the new text end 151.19 new text begin distribution of signs with other duties the director may have involving retail petroleum new text end 151.20 new text begin dispensers. new text end 151.21 new text begin (c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2), new text end 151.22 new text begin changes, the director must distribute revised signs to reflect the updated gasoline tax amounts new text end 151.23 new text begin within 12 calendar months of the change. new text end 151.24     new text begin (d) The director is prohibited from assessing any penalty, fine, or fee on the owner or new text end 151.25 new text begin operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise new text end 151.26 new text begin damaged gas tax sign. new text end 151.27    Sec. 10. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read: 151.28    Subd. 2. Automobile theft prevention account. A special revenue account in the state 151.29treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1. 151.30Of the revenue in the account, $1,300,000 each year must be transferred to the general fund new text begin new text end 151.31 new text begin insurance fraud prevention account under section 45.0135, subdivision 6 new text end . Revenues in excess 152.1of $1,300,000 each year may be used only for the automobile theft prevention program 152.2described in section 65B.84. 152.3    Sec. 11. Minnesota Statutes 2016, section 325J.06, is amended to read: 152.4325J.06 EFFECT OF NONREDEMPTION. 152.5(a) A pledgor shall have no obligation to redeem pledged goods or make any payment 152.6on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of 152.7the pawn transaction, renewal, or extension shall automatically be forfeited to the 152.8pawnbroker, and qualified right, title, and interest in and to the goods shall automatically 152.9vest in the pawnbroker. 152.10(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a) 152.11is qualified only by the pledgor's right, while the pledged goods remain in possession of the 152.12pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees 152.13and/or interest accrued up to the date of redemption. 152.14(c) A pawn transaction that involves holding only the title to property is subject to chapter 152.15168A or 336. 152.16    Sec. 12. Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to 152.17read: 152.18     new text begin Subd. 1a. new text end new text begin Required lists. new text end new text begin (a) Beginning January 1, 2018, and annually thereafter, and new text end 152.19 new text begin provided that a member has requested it, the commissioner shall provide to each member new text end 152.20 new text begin of the legislature a list in electronic form of all persons appearing to be owners of abandoned new text end 152.21 new text begin property whose last known address is located in the legislator's respective legislative district. new text end 152.22 new text begin (b) Beginning July 1, 2017, and every six months thereafter, and provided that a county new text end 152.23 new text begin has requested it, the commissioner shall provide to the county a list in electronic form of new text end 152.24 new text begin all persons appearing to be owners of abandoned property whose last known address is new text end 152.25 new text begin located in the county. A request under this paragraph must be made in writing by a person new text end 152.26 new text begin authorized by the county to make the request and is good until canceled. new text end 152.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2018. new text end 152.28    Sec. 13. Minnesota Statutes 2016, section 345.49, is amended to read: 152.29345.49 CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED. 153.1    Subdivision 1. Filing. new text begin (a) new text end Any person claiming an interest in any property delivered to 153.2the state under sections 345.31 to 345.60 may file a claim thereto or to the proceeds from 153.3the sale thereof on the form prescribed by the commissioner. 153.4 new text begin (b) Any person claiming an interest in property evidenced by a will or trust document, new text end 153.5 new text begin or court order, may submit to the commissioner only such portions of the document or order new text end 153.6 new text begin necessary to establish a claim. new text end 153.7    Subd. 2. Appropriation. There is hereby appropriated to the persons entitled to a refund, 153.8from the fund in the state treasury to which the money was credited, an amount sufficient 153.9to make the refund and payment. 153.10     new text begin Subd. 3. new text end new text begin Data. new text end new text begin Government data received by the commissioner pursuant to this section new text end 153.11 new text begin is nonpublic data or private data on individuals, as defined in section 13.02, subdivisions 9 new text end 153.12 new text begin and 12. new text end 153.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 153.14    Sec. 14. new text begin [471.9998] MERCHANT BAGS. new text end 153.15     new text begin Subdivision 1. new text end new text begin Merchant option. new text end new text begin All merchants, itinerant vendors, and peddlers doing new text end 153.16 new text begin business in this state shall have the option to provide customers a paper, plastic, or reusable new text end 153.17 new text begin bag for the packaging of any item or good purchased, provided such purchase is of a size new text end 153.18 new text begin and manner commensurate with the use of paper, plastic, or reusable bags. new text end 153.19     new text begin Subd. 2. new text end new text begin Prohibition; bag ban. new text end new text begin Notwithstanding any other provision of law, no political new text end 153.20 new text begin subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for new text end 153.21 new text begin packaging of any item or good purchased from a merchant, itinerant vendor, or peddler. new text end 153.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective May 31, 2017. Ordinances existing on new text end 153.23 new text begin the effective date of this section that would be prohibited under this section are invalid as new text end 153.24 new text begin of the effective date of this section. new text end 153.25    Sec. 15. new text begin REPORT ON UNCLAIMED PROPERTY DIVISION. new text end 153.26 new text begin The commissioner shall report by February 15, 2018, to the chairs and ranking minority new text end 153.27 new text begin members of the standing committees of the house of representatives and senate having new text end 153.28 new text begin jurisdiction over commerce regarding the process owners of abandoned property must new text end 153.29 new text begin comply with in order to file an allowed claim under Minnesota Statutes, chapter 345. The new text end 153.30 new text begin report shall include information regarding the documentation and identification necessary new text end 153.31 new text begin for owners of each type of abandoned property under Minnesota Statutes, chapter 345, to new text end 153.32 new text begin file an allowed claim. new text end 154.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 154.2    Sec. 16. new text begin REPEALER. new text end 154.3 new text begin Minnesota Statutes 2016, section 46.131, subdivision 5, new text end new text begin is repealed. new text end 154.4ARTICLE 9 154.5TELECOMMUNICATIONS 154.6    Section 1. Minnesota Statutes 2016, section 237.162, subdivision 2, is amended to read: 154.7    Subd. 2. Local government unit. "Local government unit" means a county, home rule 154.8charter or statutory city, or town new text begin , or the Metropolitan Council new text end . 154.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 154.10    Sec. 2. Minnesota Statutes 2016, section 237.162, subdivision 4, is amended to read: 154.11    Subd. 4. Telecommunications right-of-way user. new text begin (a) new text end "Telecommunications right-of-way 154.12user" means a person owning or controlling a facility in the public right-of-way, or seeking 154.13to own or control a facility in the public right-of-way, that is used or is intended to be used 154.14for new text begin providing wireless service, or new text end transporting telecommunications or other voice or data 154.15information. 154.16 new text begin (b) new text end A cable communication system defined and regulated under chapter 238, and 154.17telecommunications activities related to providing natural gas or electric energy services 154.18whether provided by new text begin , new text end a public utility as defined in section 216B.02, a municipality, a 154.19municipal gas or power agency organized under chapter 453 or 453A, or a cooperative 154.20electric association organized under chapter 308A, are not telecommunications right-of-way 154.21users for the purposes of this section and section 237.163 new text begin , except to the extent these entities new text end 154.22 new text begin are offering wireless services new text end . 154.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 154.24    Sec. 3. Minnesota Statutes 2016, section 237.162, subdivision 9, is amended to read: 154.25    Subd. 9. Management costs or rights-of-way management costs. new text begin (a) new text end "Management 154.26costs" or "rights-of-way management costs" means the actual costs a local government unit 154.27incurs in managing its public rights-of-way, and includes such costs, if incurred, as those 154.28associated with registering applicants; issuing, processing, and verifying right-of-way new text begin or new text end 154.29 new text begin small wireless facility new text end permit applications; inspecting job sites and restoration projects; 154.30maintaining, supporting, protecting, or moving user equipment during public right-of-way 155.1work; determining the adequacy of right-of-way restoration; restoring work inadequately 155.2performed after providing notice and the opportunity to correct the work; and revoking 155.3right-of-way new text begin or small wireless facility new text end permits. 155.4 new text begin (b) new text end Management costs do not include new text begin : new text end 155.5 new text begin (1) new text end payment by a telecommunications right-of-way user for the use of the public 155.6right-of-way, new text begin ; new text end 155.7 new text begin (2) unreasonable fees of a third-party contractor used by a local government unit as part new text end 155.8 new text begin of managing its public rights-of-way, including but not limited to any third-party contractor new text end 155.9 new text begin fee tied to or based upon customer counts, access lines, revenue generated by the new text end 155.10 new text begin telecommunications right-of-way user, or revenue generated for a local government unit; new text end 155.11 new text begin or new text end 155.12 new text begin (3) new text end the fees and cost of litigation relating to the interpretation of this section or section 155.13237.163 or any ordinance enacted under those sections, or the local unit of government's 155.14fees and costs related to appeals taken pursuant to section 237.163, subdivision 5. 155.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 155.16    Sec. 4. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to 155.17read: 155.18     new text begin Subd. 10. new text end new text begin Collocate. new text end new text begin "Collocate" or "collocation" means to install, mount, maintain, new text end 155.19 new text begin modify, operate, or replace a small wireless facility on, under, within, or adjacent to an new text end 155.20 new text begin existing wireless support structure that is owned privately or by a local government unit. new text end 155.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 155.22    Sec. 5. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to 155.23read: 155.24     new text begin Subd. 11. new text end new text begin Small wireless facility. new text end new text begin "Small wireless facility" means: new text end 155.25 new text begin (1) a wireless facility that meets both of the following qualifications: new text end 155.26 new text begin (i) each antenna is located inside an enclosure of no more than six cubic feet in volume new text end 155.27 new text begin or, in the case of an antenna that has exposed elements, the antenna and all its exposed new text end 155.28 new text begin elements could fit within an enclosure of no more than six cubic feet; and new text end 155.29 new text begin (ii) all other wireless equipment associated with the small wireless facility, excluding new text end 155.30 new text begin electric meters, concealment elements, telecommunications demarcation boxes, battery new text end 155.31 new text begin backup power systems, grounding equipment, power transfer switches, cutoff switches, new text end 156.1 new text begin cable, conduit, vertical cable runs for the connection of power and other services, and any new text end 156.2 new text begin equipment concealed from public view within or behind an existing structure or concealment, new text end 156.3 new text begin is in aggregate no more than 28 cubic feet in volume; or new text end 156.4 new text begin (2) a micro wireless facility. new text end 156.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 156.6    Sec. 6. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to 156.7read: 156.8     new text begin Subd. 12. new text end new text begin Utility pole. new text end new text begin "Utility pole" means a pole that is used in whole or in part to new text end 156.9 new text begin facilitate telecommunications or electric service. new text end 156.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 156.11    Sec. 7. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to 156.12read: 156.13     new text begin Subd. 13. new text end new text begin Wireless facility. new text end new text begin (a) "Wireless facility" means equipment at a fixed location new text end 156.14 new text begin that enables the provision of wireless services between user equipment and a wireless service new text end 156.15 new text begin network, including: new text end 156.16 new text begin (1) equipment associated with wireless service; new text end 156.17 new text begin (2) a radio transceiver, antenna, coaxial or fiber-optic cable, regular and backup power new text end 156.18 new text begin supplies, and comparable equipment, regardless of technological configuration; and new text end 156.19 new text begin (3) a small wireless facility. new text end 156.20 new text begin (b) "Wireless facility" does not include: new text end 156.21 new text begin (1) wireless support structures; new text end 156.22 new text begin (2) wireline backhaul facilities; or new text end 156.23 new text begin (3) coaxial or fiber-optic cables (i) between utility poles or wireless support structures, new text end 156.24 new text begin or (ii) that are not otherwise immediately adjacent to or directly associated with a specific new text end 156.25 new text begin antenna. new text end 156.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 157.1    Sec. 8. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to 157.2read: 157.3     new text begin Subd. 14. new text end new text begin Micro wireless facility. new text end new text begin "Micro wireless facility" means a small wireless new text end 157.4 new text begin facility that is no larger than 24 inches long, 15 inches wide, and 12 inches high, and whose new text end 157.5 new text begin exterior antenna, if any, is no longer than 11 inches. new text end 157.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 157.7    Sec. 9. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to 157.8read: 157.9     new text begin Subd. 15. new text end new text begin Wireless service. new text end new text begin "Wireless service" means any service using licensed or new text end 157.10 new text begin unlicensed wireless spectrum, including the use of Wi-Fi, whether at a fixed location or by new text end 157.11 new text begin means of a mobile device, that is provided using wireless facilities. Wireless service does new text end 157.12 new text begin not include services regulated under Title VI of the Communications Act of 1934, as new text end 157.13 new text begin amended, including a cable service under United States Code, title 47, section 522, clause new text end 157.14 new text begin (6). new text end 157.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 157.16    Sec. 10. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision 157.17to read: 157.18     new text begin Subd. 16. new text end new text begin Wireless support structure. new text end new text begin "Wireless support structure" means a new or new text end 157.19 new text begin existing structure in a public right-of-way designed to support or capable of supporting new text end 157.20 new text begin small wireless facilities, as reasonably determined by a local government unit. new text end 157.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 157.22    Sec. 11. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision 157.23to read: 157.24     new text begin Subd. 17. new text end new text begin Wireline backhaul facility. new text end new text begin "Wireline backhaul facility" means a facility new text end 157.25 new text begin used to transport communications data by wire from a wireless facility to a communications new text end 157.26 new text begin network. new text end 157.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 157.28    Sec. 12. Minnesota Statutes 2016, section 237.163, subdivision 2, is amended to read: 157.29    Subd. 2. Generally. (a) Subject to this section, a telecommunications right-of-way user 157.30authorized to do business under the laws of this state or by license of the Federal 158.1Communications Commission may construct, maintain, and operate new text begin small wireless facilities, new text end 158.2conduit, cable, switches, and related appurtenances and facilities along, across, upon, above, 158.3and under any public right-of-way. 158.4(b) Subject to this section, a local government unit has the authority to manage its public 158.5rights-of-way and to recover its rights-of-way management costs. new text begin Except as provided in new text end 158.6 new text begin subdivisions 3a, 3b, and 3c, new text end the authority defined in this section may be exercised at the 158.7option of the local government unit. The exercise of this authority new text begin and new text end is not mandated under 158.8this section. A local government unit may, by ordinance: 158.9(1) require a telecommunications right-of-way user seeking to excavate or obstruct a 158.10public right-of-way for the purpose of providing telecommunications services to obtain a 158.11right-of-way permit to do so and to impose permit conditions consistent with the local 158.12government unit's management of the right-of-way; 158.13(2) require a telecommunications right-of-way user using, occupying, or seeking to use 158.14or occupy a public right-of-way for the purpose of providing telecommunications services 158.15to register with the local government unit by providing the local government unit with the 158.16following information: 158.17(i) the applicant's name, gopher state one-call registration number under section 216D.03, 158.18address, and telephone and facsimile numbers; 158.19(ii) the name, address, and telephone and facsimile numbers of the applicant's local 158.20representative; 158.21(iii) proof of adequate insurance; and 158.22(iv) other information deemed reasonably necessary by the local government unit for 158.23the efficient administration of the public right-of-way; and 158.24(3) require telecommunications right-of-way users to submit to the local government 158.25unit plans for construction and major maintenance that provide reasonable notice to the 158.26local government unit of projects that the telecommunications right-of-way user expects to 158.27undertake that may require excavation and obstruction of public rights-of-way. 158.28(c) A local government unit may also require a telecommunications right-of-way user 158.29that is registered with the local government unit pursuant to paragraph (b), clause (2), to 158.30periodically update the information in its registration application. 158.31 new text begin (d) Notwithstanding sections 394.34 and 462.355, or any other law, a local government new text end 158.32 new text begin unit must not establish a moratorium with respect to: new text end 159.1 new text begin (1) filing, receiving, or processing applications for right-of-way or small wireless facility new text end 159.2 new text begin permits; or new text end 159.3 new text begin (2) issuing or approving right-of-way or small wireless facility permits. new text end 159.4 new text begin (e) A telecommunications right-of-way user may place a new wireless support structure new text end 159.5 new text begin or collocate small wireless facilities on wireless support structures located within a public new text end 159.6 new text begin right-of-way, subject to the approval procedures under this section and, for collocation on new text end 159.7 new text begin wireless support structures owned by a local government unit, the reasonable terms, new text end 159.8 new text begin conditions, and rates set forth under this section. A local government unit may prohibit, new text end 159.9 new text begin regulate, or charge a fee to install wireless support structures or to collocate small wireless new text end 159.10 new text begin facilities only as provided in this section. new text end 159.11 new text begin (f) The placement of small wireless facilities and wireless support structures to new text end 159.12 new text begin accommodate small wireless facilities are a permitted use in a public right-of-way, except new text end 159.13 new text begin that a local government unit may require a person to obtain a special or conditional land new text end 159.14 new text begin use permit to install a new wireless support structure for the siting of a small wireless facility new text end 159.15 new text begin in a right-of-way in a district or area zoned for single-family residential use or within a new text end 159.16 new text begin historic district established by federal or state law or city ordinance as of the date of new text end 159.17 new text begin application for a small wireless facility permit. This paragraph does not apply to areas new text end 159.18 new text begin outside a public right-of-way that are zoned and used exclusively for single-family residential new text end 159.19 new text begin use. new text end 159.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, except new text end 159.21 new text begin that paragraph (d) is effective January 1, 2018, for a local government unit that has not new text end 159.22 new text begin enacted an ordinance regulating public rights-of-way as of May 18, 2017. new text end 159.23    Sec. 13. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision 159.24to read: 159.25     new text begin Subd. 3a. new text end new text begin Small wireless facility permits; general. new text end new text begin (a) A local government unit: new text end 159.26 new text begin (1) may require a telecommunications right-of-way user to obtain a permit or permits new text end 159.27 new text begin under this section to place a new wireless support structure or collocate a small wireless new text end 159.28 new text begin facility in a public right-of-way managed by the local government unit; new text end 159.29 new text begin (2) must not require an applicant for a small wireless facility permit to provide any new text end 159.30 new text begin information that: new text end 159.31 new text begin (i) has previously been provided to the local government unit by the applicant in an new text end 159.32 new text begin application for a small wireless permit, which specific reference shall be provided to the new text end 159.33 new text begin local government unit by the applicant; and new text end 160.1 new text begin (ii) is not reasonably necessary to review a permit application for compliance with new text end 160.2 new text begin generally applicable and reasonable health, safety, and welfare regulations, and to new text end 160.3 new text begin demonstrate compliance with applicable Federal Communications Commission regulations new text end 160.4 new text begin governing radio frequency exposure, or other information required by this section; new text end 160.5 new text begin (3) must ensure that any application for a small wireless facility permit is processed on new text end 160.6 new text begin a nondiscriminatory basis; and new text end 160.7 new text begin (4) must specify that the term of a small wireless facility permit is equal to the length new text end 160.8 new text begin of time that the small wireless facility is in use, unless the permit is revoked under this new text end 160.9 new text begin section. new text end 160.10 new text begin (b) An applicant may file a consolidated permit application to collocate up to 15 small new text end 160.11 new text begin wireless facilities, or a greater number if agreed to by a local government unit, provided new text end 160.12 new text begin that all the small wireless facilities in the application: new text end 160.13 new text begin (1) are located within a two-mile radius; new text end 160.14 new text begin (2) consist of substantially similar equipment; and new text end 160.15 new text begin (3) are to be placed on similar types of wireless support structures. new text end 160.16 new text begin In rendering a decision on a consolidated permit application, a local government unit may new text end 160.17 new text begin approve a permit for some small wireless facilities and deny a permit for others, but may new text end 160.18 new text begin not use denial of one or more permits as a basis to deny all the small wireless facilities in new text end 160.19 new text begin the application. new text end 160.20 new text begin (c) If a local government unit receives applications within a single seven-day period new text end 160.21 new text begin from one or more applicants seeking approval of permits for more than 30 small wireless new text end 160.22 new text begin facilities, the local government unit may extend the 90-day deadline imposed in subdivision new text end 160.23 new text begin 3c by an additional 30 days. If a local government unit elects to invoke this extension, it new text end 160.24 new text begin must inform in writing any applicant to whom the extension will be applied. new text end 160.25 new text begin (d) A local government unit is prohibited from requiring a person to pay a small wireless new text end 160.26 new text begin facility permit fee, obtain a small wireless facility permit, or enter into a small wireless new text end 160.27 new text begin facility collocation agreement solely in order to conduct any of the following activities: new text end 160.28 new text begin (1) routine maintenance of a small wireless facility; new text end 160.29 new text begin (2) replacement of a small wireless facility with a new facility that is substantially similar new text end 160.30 new text begin or smaller in size, weight, height, and wind or structural loading than the small wireless new text end 160.31 new text begin facility being replaced; or new text end 161.1 new text begin (3) installation, placement, maintenance, operation, or replacement of micro wireless new text end 161.2 new text begin facilities that are suspended on cables strung between existing utility poles in compliance new text end 161.3 new text begin with national safety codes. new text end 161.4 new text begin A local government unit may require advance notification of these activities if the work new text end 161.5 new text begin will obstruct a public right-of-way. new text end 161.6 new text begin (e) Nothing in this subdivision affects the need for an entity seeking to place a small new text end 161.7 new text begin wireless facility on a wireless support structure that is not owned by a local government new text end 161.8 new text begin unit to obtain from the owner of the wireless support structure any necessary authority to new text end 161.9 new text begin place the small wireless facility, nor shall any provision of this chapter be deemed to affect new text end 161.10 new text begin the rates, terms, and conditions for access to or placement of a small wireless facility or a new text end 161.11 new text begin wireless support structure not owned by a local government unit. This subdivision does not new text end 161.12 new text begin affect any existing agreement between a local government unit and an entity concerning new text end 161.13 new text begin the placement of small wireless facilities on local government unit-owned wireless support new text end 161.14 new text begin structures. new text end 161.15 new text begin (f) No later than six months after the effective date of this act or three months after new text end 161.16 new text begin receiving a small wireless facility permit application from a wireless service provider, a new text end 161.17 new text begin local government unit that has elected to set forth terms and conditions of collocation in a new text end 161.18 new text begin standard small wireless facility collocation agreement shall develop and make available an new text end 161.19 new text begin agreement that complies with the requirements of this section and section 237.162. A new text end 161.20 new text begin standard small wireless facility collocation agreement shall be substantially complete. new text end 161.21 new text begin Notwithstanding any law to the contrary, the parties to a small wireless facility collocation new text end 161.22 new text begin agreement may incorporate additional terms and conditions mutually agreed upon into a new text end 161.23 new text begin small wireless facility collocation agreement. A small wireless facility collocation agreement new text end 161.24 new text begin between a local government unit and a wireless service provider is considered public data new text end 161.25 new text begin not on individuals and is accessible to the public under section 13.03. new text end 161.26 new text begin (g) An approval of a small wireless facility permit under this section authorizes the new text end 161.27 new text begin installation, placement, maintenance, or operation of a small wireless facility to provide new text end 161.28 new text begin wireless service and shall not be construed to confer authorization to (1) provide any service new text end 161.29 new text begin other than a wireless service, or (2) install, place, maintain, or operate a wireline backhaul new text end 161.30 new text begin facility in the right-of-way. new text end 161.31 new text begin (h) The terms and conditions of collocation under this subdivision: new text end 161.32 new text begin (1) may be set forth in a small wireless facility collocation agreement, if a local new text end 161.33 new text begin government unit elects to utilize such an agreement; new text end 161.34 new text begin (2) must be nondiscriminatory, competitively neutral, and commercially reasonable; and new text end 162.1 new text begin (3) must comply with this section and section 237.162. new text end 162.2 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 162.3    Sec. 14. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision 162.4to read: 162.5     new text begin Subd. 3b. new text end new text begin Small wireless facility permits; placement. new text end new text begin (a) A local government unit may new text end 162.6 new text begin not require the placement of small wireless facilities on any specific wireless support structure new text end 162.7 new text begin other than the wireless support structure proposed in the permit application. new text end 162.8 new text begin (b) A local government unit must not limit the placement of small wireless facilities, new text end 162.9 new text begin either by minimum separation distances between small wireless facilities or maximum new text end 162.10 new text begin height limitations, except that each wireless support structure installed in the right-of-way new text end 162.11 new text begin after the effective date of this act shall not exceed 50 feet above ground level, unless the new text end 162.12 new text begin local government unit agrees to a greater height, subject to local zoning regulations, and new text end 162.13 new text begin may be subject to separation requirements in relation to other wireless support structures. new text end 162.14 new text begin (c) Notwithstanding paragraph (b), a wireless support structure that replaces an existing new text end 162.15 new text begin wireless support structure that is higher than 50 feet above ground level may be placed at new text end 162.16 new text begin the height of the existing wireless support structure, unless the local government unit agrees new text end 162.17 new text begin to a greater height, subject to local zoning regulations. new text end 162.18 new text begin (d) Wireless facilities constructed in the right-of-way after the effective date of this act new text end 162.19 new text begin may not extend more than ten feet above an existing wireless support structure in place as new text end 162.20 new text begin of the effective date of this act. new text end 162.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 162.22    Sec. 15. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision 162.23to read: 162.24     new text begin Subd. 3c. new text end new text begin Small wireless facility permits; approval. new text end new text begin (a) Except as provided in new text end 162.25 new text begin subdivision 4, a local government unit shall issue a small wireless facility permit to a new text end 162.26 new text begin telecommunications right-of-way user seeking to install a new or replacement wireless new text end 162.27 new text begin support structure for a small wireless facility, or to collocate a small wireless facility on a new text end 162.28 new text begin wireless support structure in a public right-of-way. In processing and approving a small new text end 162.29 new text begin wireless facility permit, a local government unit may condition its approval on compliance new text end 162.30 new text begin with: new text end 162.31 new text begin (1) generally applicable and reasonable health, safety, and welfare regulations consistent new text end 162.32 new text begin with the local government unit's public right-of-way management; new text end 163.1 new text begin (2) reasonable accommodations for decorative wireless support structures or signs; and new text end 163.2 new text begin (3) any reasonable restocking, replacement, or relocation requirements when a new new text end 163.3 new text begin wireless support structure is placed in a public right-of-way. new text end 163.4 new text begin (b) A local government unit has 90 days after the date a small wireless facility permit new text end 163.5 new text begin application is filed to issue or deny the permit, or the permit is automatically issued. To toll new text end 163.6 new text begin the 90-day clock, the local government unit must provide a written notice of incompleteness new text end 163.7 new text begin to the applicant within 30 days of receipt of the application, clearly and specifically new text end 163.8 new text begin delineating all missing documents or information. Information delineated in the notice is new text end 163.9 new text begin limited to documents or information publicly required as of the date of application and new text end 163.10 new text begin reasonably related to a local government unit's determination whether the proposed equipment new text end 163.11 new text begin falls within the definition of a small wireless facility and whether the proposed deployment new text end 163.12 new text begin satisfies all health, safety, and welfare regulations applicable to the small wireless facility new text end 163.13 new text begin permit request. Upon an applicant's submittal of additional documents or information in new text end 163.14 new text begin response to a notice of incompleteness, the local government unit has ten days to notify the new text end 163.15 new text begin applicant in writing of any information requested in the initial notice of incompleteness that new text end 163.16 new text begin is still missing. Second or subsequent notices of incompleteness may not specify documents new text end 163.17 new text begin or information that were not delineated in the original notice of incompleteness. Requests new text end 163.18 new text begin for information not requested in the initial notice of incompleteness do not toll the 90-day new text end 163.19 new text begin clock. Parties can mutually agree in writing to toll the 90-day clock at any time. Section new text end 163.20 new text begin 15.99 does not apply to this paragraph or paragraph (c). new text end 163.21 new text begin For the purposes of this subdivision, "toll the 90-day clock" means to halt the progression new text end 163.22 new text begin of days that count towards the 90-day deadline. new text end 163.23 new text begin (c) Except as provided in subdivision 3a, paragraph (c), a small wireless facility permit new text end 163.24 new text begin and any associated encroachment or building permit required by a local government unit, new text end 163.25 new text begin are deemed approved if the local government unit fails to approve or deny the application new text end 163.26 new text begin within 90 days after the permit application has been filed, unless the applicant and the local new text end 163.27 new text begin government unit have mutually agreed in writing to extend the 90-day deadline. new text end 163.28 new text begin (d) Nothing in this subdivision precludes a local government unit from applying generally new text end 163.29 new text begin applicable and reasonable health, safety, and welfare regulations when evaluating and new text end 163.30 new text begin deciding to approve or deny a small wireless facility permit. new text end 163.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 164.1    Sec. 16. Minnesota Statutes 2016, section 237.163, subdivision 4, is amended to read: 164.2    Subd. 4. Permit denial or revocation. (a) A local government unit may deny any 164.3application for a right-of-way new text begin or small wireless facility new text end permit if the telecommunications 164.4right-of-way user does not comply with a provision of this section. 164.5(b) A local government unit may deny an application for a right-of-way permit if the 164.6local government unit determines that the denial is necessary to protect the health, safety, 164.7and welfare or when necessary to protect the public right-of-way and its current use. 164.8(c) A local government unit may revoke a right-of-way new text begin or small wireless facility new text end permit 164.9granted to a telecommunications right-of-way user, with or without fee refund, in the event 164.10of a substantial breach of the terms and conditions of statute, ordinance, rule, or regulation 164.11or any material condition of the permit. A substantial breach by a permittee includes, but 164.12is not limited to, the following: 164.13(1) a material violation of a provision of the right-of-way new text begin or small wireless facility new text end 164.14permit; 164.15(2) an evasion or attempt to evade any material provision of the right-of-way new text begin or small new text end 164.16 new text begin wireless facility new text end permit, or the perpetration or attempt to perpetrate any fraud or deceit upon 164.17the local government unit or its citizens; 164.18(3) a material misrepresentation of fact in the right-of-way new text begin or small wireless facility new text end 164.19permit application; 164.20(4) a failure to complete work in a timely manner, unless a permit extension is obtained 164.21or unless the failure to complete work is due to reasons beyond the permittee's control; and 164.22(5) a failure to correct, in a timely manner, work that does not conform to applicable 164.23standards, conditions, or codes, upon inspection and notification by the local government 164.24unit of the faulty condition. 164.25(d) Subject to this subdivision, a local government unit may not deny an application for 164.26a right-of-way new text begin or small wireless facility new text end permit for failure to include a project in a plan 164.27submitted to the local government unit under subdivision 2, paragraph (b), clause (3), when 164.28the telecommunications right-of-way user has used commercially reasonable efforts to 164.29anticipate and plan for the project. 164.30(e) In no event may a local government unit unreasonably withhold approval of an 164.31application for a right-of-way new text begin or small wireless facility new text end permit, or unreasonably revoke a 164.32permit. 165.1 new text begin (f) Any denial or revocation of a right-of-way or small wireless facility permit must be new text end 165.2 new text begin made in writing and must document the basis for the denial. The local government unit must new text end 165.3 new text begin notify the telecommunications right-of-way user in writing within three business days of new text end 165.4 new text begin the decision to deny or revoke a permit. If a permit application is denied, the new text end 165.5 new text begin telecommunications right-of-way user may cure the deficiencies identified by the local new text end 165.6 new text begin government unit and resubmit its application. If the telecommunications right-of-way user new text end 165.7 new text begin resubmits the application within 30 days of receiving written notice of the denial, it may new text end 165.8 new text begin not be charged an additional filing or processing fee. The local government unit must approve new text end 165.9 new text begin or deny the revised application within 30 days after the revised application is submitted. new text end 165.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 165.11    Sec. 17. Minnesota Statutes 2016, section 237.163, subdivision 6, is amended to read: 165.12    Subd. 6. Fees. (a) A local government unit may recover its right-of-way management 165.13costs by imposing a fee for registration, a fee for each right-of-way new text begin or small wireless facility new text end 165.14permit, or, when appropriate, a fee applicable to a particular telecommunications right-of-way 165.15user when that user causes the local government unit to incur costs as a result of actions or 165.16inactions of that user. A local government unit may not recover new text begin costs new text end from a 165.17telecommunications right-of-way user costs new text begin or an owner of a cable communications system new text end 165.18 new text begin awarded a franchise under chapter 238 new text end caused by another entity's activity in the right-of-way. 165.19(b) Fees, or other right-of-way obligations, imposed by a local government unit on 165.20telecommunications right-of-way users under this section must be: 165.21(1) based on the actual costs incurred by the local government unit in managing the 165.22public right-of-way; 165.23(2) based on an allocation among all users of the public right-of-way, including the local 165.24government unit itself, which shall reflect the proportionate costs imposed on the local 165.25government unit by each of the various types of uses of the public rights-of-way; 165.26(3) imposed on a competitively neutral basis; and 165.27(4) imposed in a manner so that aboveground uses of public rights-of-way do not bear 165.28costs incurred by the local government unit to regulate underground uses of public 165.29rights-of-way. 165.30(c) The rights, duties, and obligations regarding the use of the public right-of-way 165.31imposed under this section must be applied to all users of the public right-of-way, including 165.32the local government unit while recognizing regulation must reflect the distinct engineering, 165.33construction, operation, maintenance and public and worker safety requirements, and 166.1standards applicable to various users of the public rights-of-way. For users subject to the 166.2franchising authority of a local government unit, to the extent those rights, duties, and 166.3obligations are addressed in the terms of an applicable franchise agreement, the terms of 166.4the franchise shall prevail over any conflicting provision in an ordinance. 166.5 new text begin (d) A wireless service provider may collocate small wireless facilities on wireless support new text end 166.6 new text begin structures owned or controlled by a local government unit and located within the public new text end 166.7 new text begin roads or rights-of-way without being required to apply for or enter into any individual new text end 166.8 new text begin license, franchise, or other agreement with the local government unit or any other entity, new text end 166.9 new text begin other than a standard small wireless facility collocation agreement under subdivision 3a, new text end 166.10 new text begin paragraph (f), if the local unit of government elects to utilize such an agreement. new text end 166.11 new text begin (e) Any initial engineering survey and preparatory construction work associated with new text end 166.12 new text begin collocation must be paid by the cost causer in the form of a onetime, nonrecurring, new text end 166.13 new text begin commercially reasonable, nondiscriminatory, and competitively neutral charge to recover new text end 166.14 new text begin the costs associated with a proposed attachment. new text end 166.15 new text begin (f) Total application fees for a small wireless facility permit must comply with this new text end 166.16 new text begin subdivision with respect to costs related to the permit. new text end 166.17 new text begin (g) A local government unit may elect to charge each small wireless facility attached to new text end 166.18 new text begin a wireless support structure owned by the local government unit a fee, in addition to other new text end 166.19 new text begin fees or charges allowed under this subdivision, consisting of: new text end 166.20 new text begin (1) up to $150 per year for rent to occupy space on a wireless support structure; new text end 166.21 new text begin (2) up to $25 per year for maintenance associated with the space occupied on a wireless new text end 166.22 new text begin support structure; and new text end 166.23 new text begin (3) a monthly fee for electricity used to operate a small wireless facility, if not purchased new text end 166.24 new text begin directly from a utility, at the rate of: new text end 166.25 new text begin (i) $73 per radio node less than or equal to 100 max watts; new text end 166.26 new text begin (ii) $182 per radio node over 100 max watts; or new text end 166.27 new text begin (iii) the actual costs of electricity, if the actual costs exceed the amount in item (i) or new text end 166.28 new text begin (ii). new text end 166.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 167.1    Sec. 18. Minnesota Statutes 2016, section 237.163, subdivision 7, is amended to read: 167.2    Subd. 7. Additional right-of-way provisions. (a) In managing the public rights-of-way 167.3and in imposing fees under this section, no local government unit may: 167.4(1) unlawfully discriminate among telecommunications right-of-way users; 167.5(2) grant a preference to any telecommunications right-of-way user; 167.6(3) create or erect any unreasonable requirement for entry to the public rights-of-way 167.7by telecommunications right-of-way users; or 167.8(4) require a telecommunications right-of-way user to obtain a franchise or pay for the 167.9use of the right-of-way. 167.10(b) A telecommunications right-of-way user need not apply for or obtain right-of-way 167.11permits for facilities that are located in public rights-of-way on May 10, 1997, for which 167.12the user has obtained the required consent of the local government unit, or that are otherwise 167.13lawfully occupying the public right-of-way. However, the telecommunications right-of-way 167.14user may be required to register and to obtain a right-of-way permit for an excavation or 167.15obstruction of existing facilities within the public right-of-way after May 10, 1997. 167.16(c) Data and documents exchanged between a local government unit and a 167.17telecommunications right-of-way user are subject to the terms of chapter 13. A local 167.18government unit not complying with this paragraph is subject to the penalties set forth in 167.19section 13.08. 167.20(d) A local government unit may not collect a fee imposed under this section through 167.21the provision of in-kind services by a telecommunications right-of-way user, nor may a 167.22local government unit require the provision of in-kind services as a condition of consent to 167.23use the local government unit's public right-of-way new text begin or to obtain a small wireless facility new text end 167.24 new text begin permit new text end . 167.25 new text begin (e) Except as provided in this chapter or required by federal law, a local government new text end 167.26 new text begin unit shall not adopt or enforce any regulation on the placement or operation of new text end 167.27 new text begin communications facilities in the right-of-way where the entity is already authorized to new text end 167.28 new text begin operate in the right-of-way, and shall not regulate or impose or collect fees on new text end 167.29 new text begin communications services except to the extent specifically provided for in the existing new text end 167.30 new text begin authorization, and unless expressly required by state or federal statute. new text end 168.1    Sec. 19. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision 168.2to read: 168.3     new text begin Subd. 9. new text end new text begin Authorized contractors. new text end new text begin (a) Nothing in this section precludes a new text end 168.4 new text begin telecommunications right-of-way user from authorizing another entity or individual to act new text end 168.5 new text begin on its behalf to install, construct, maintain, or repair a facility or facilities owned or controlled new text end 168.6 new text begin by the telecommunications right-of-way user. new text end 168.7 new text begin (b) A local government unit is prohibited from imposing fees or requirements on an new text end 168.8 new text begin authorized entity or individual for actions on behalf of a telecommunications right-of-way new text end 168.9 new text begin user that are in addition to or different from the fees and requirements it is authorized to new text end 168.10 new text begin impose on the telecommunications right-of-way user under this section. new text end 168.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 168.12    Sec. 20. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision 168.13to read: 168.14     new text begin Subd. 10. new text end new text begin Exemptions. new text end new text begin (a) Notwithstanding any other provision in this chapter, this new text end 168.15 new text begin section does not apply to a wireless support structure owned, operated, maintained, or served new text end 168.16 new text begin by a municipal electric utility. new text end 168.17 new text begin (b) Subdivisions 3a, 3b, 3c, and subdivision 6, paragraphs (d) through (g), and subdivision new text end 168.18 new text begin 7, paragraph (e), do not apply to the collocation or regulation of small wireless facilities new text end 168.19 new text begin issued a permit by a local government unit before the effective date of this act under an new text end 168.20 new text begin ordinance enacted before May 18, 2017, that regulates the collocation of small wireless new text end 168.21 new text begin facilities. new text end 168.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 168.23ARTICLE 10 168.24ENERGY POLICY 168.25    Section 1. Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read: 168.26    Subdivision 1. Establishment. (a) There is established a Legislative Energy Commission 168.27to study and to make recommendations for legislation concerning issues related to its duties 168.28under subdivision 3. 168.29    (b) The commission consists of: 168.30    (1) ten new text begin nine new text end members of the house of representatives new text begin , five of whom are new text end appointed by 168.31the speaker of the house, new text begin and new text end four of whom must be from new text begin are appointed by the leader of new text end the 169.1minority caucus, and including the chair of the committee with primary jurisdiction over 169.2energy policy; the chair or another member of each of the committees with primary 169.3jurisdiction over environmental policy, agricultural policy, and transportation policy; and 169.4    (2) ten new text begin nine new text end members of the senate to be new text begin , five of whom are new text end appointed by the Subcommittee 169.5on Committees, new text begin leader of the majority caucus and new text end four of whom must be from new text begin are appointed new text end 169.6 new text begin by the leader of new text end the minority caucus, and including the chair of the committee with primary 169.7jurisdiction over energy policy; and the chair or another member of each of the committees 169.8with primary jurisdiction over environmental policy, agricultural policy, and transportation 169.9policy. 169.10    (c) The commission may employ full-time and part-time staff, contract for consulting 169.11services, and may reimburse the expenses of persons requested to assist it in its duties. The 169.12director of the Legislative Coordinating Commission shall assist the commission in 169.13administrative matters. The commission shall elect cochairs, one member of the house of 169.14representatives and one member of the senate from among the committee and subcommittee 169.15chairs named to the commission. The commission members from the house of representatives 169.16shall elect the house of representatives cochair, and the commission members from the 169.17senate shall elect the senate cochair. 169.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 169.19    Sec. 2. Minnesota Statutes 2016, section 16B.323, is amended to read: 169.2016B.323 SOLAR ENERGY IN STATE BUILDINGS. 169.21    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 169.22the meanings given. 169.23(b) "Made in Minnesota" means the manufacture in this state of: 169.24(1) components of a solar thermal system certified by the Solar Rating and Certification 169.25Corporation; or 169.26(2) solar photovoltaic modules that: 169.27(i) are manufactured at a manufacturing facility in Minnesota that is registered and 169.28authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory, 169.29CSA International, Intertek, or an equivalent independent testing agency; 169.30(ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek, 169.31or an equivalent independent testing agency; and 170.1(iii) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), clauses 170.2(1), (5), and (6). 170.3For the purposes of clause (2), "manufactured" has the meaning given in section 170.4116C.7791, subdivision 1 , paragraph (b), clauses (1) and (2). 170.5(c) new text begin (b) new text end "Major renovation" means a substantial addition to an existing building, or a 170.6substantial change to the interior configuration or the energy system of an existing building. 170.7(d) new text begin (c) new text end "Solar energy system" means solar photovoltaic modules new text begin devices new text end alone or installed 170.8in conjunction with a solar thermal system. 170.9(e) "Solar Photovoltaic module new text begin (d) "Photovoltaic device new text end " has the meaning given in 170.10section 116C.7791, subdivision 1, paragraph (e) new text begin 216C.06, subdivision 16 new text end . 170.11(f) new text begin (e) new text end "Solar thermal system" has the meaning given "qualifying solar thermal project" 170.12in section 216B.2411, subdivision 2, paragraph (e). 170.13(g) new text begin (f) new text end "State building" means a building whose construction or renovation is paid wholly 170.14or in part by the state from the bond proceeds fund. 170.15    Subd. 2. Solar energy system. (a) As provided in paragraphs (b) and (c), a project for 170.16the construction or major renovation of a state building, after the completion of a cost-benefit 170.17analysis, may include installation of "Made in Minnesota" solar energy systems of 40 new text begin up new text end 170.18 new text begin to 300 new text end kilowatts capacity on, adjacent, or in proximity to the state building. 170.19(b) The capacity of a solar new text begin energy new text end system must be less than 40 new text begin 300 new text end kilowatts to the extent 170.20necessary to match the electrical load of the building new text begin , new text end or to the extent new text begin the capacity must be new text end 170.21 new text begin no more than new text end necessary to keep the costs for the installation below the five percent maximum 170.22set by paragraph (c). 170.23(c) The cost of the solar new text begin energy new text end system must not exceed five percent of the appropriations 170.24from the bond proceeds fund for the construction or renovation of the state building. Purchase 170.25and installation of a solar thermal system may account for no more than 25 percent of the 170.26cost of a solar new text begin energy new text end system installation. 170.27(d) A project subject to this section is ineligible to receive a rebate for the installation 170.28of a solar energy system under section 116C.7791 or from any utility. 170.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 171.1    Sec. 3. Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read: 171.2    Subdivision 1. Renewable development account. (a) new text begin The renewable development new text end 171.3 new text begin account is established as a separate account in the special revenue fund in the state treasury. new text end 171.4 new text begin Appropriations and transfers to the account shall be credited to the account. Earnings, such new text end 171.5 new text begin as interest, dividends, and any other earnings arising from assets of the account, shall be new text end 171.6 new text begin credited to the account. Funds remaining in the account at the end of a fiscal year are not new text end 171.7 new text begin canceled to the general fund but remain in the account until expended. The account shall new text end 171.8 new text begin be administered by the commissioner of management and budget as provided under this new text end 171.9 new text begin section. new text end 171.10 new text begin (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating new text end 171.11 new text begin plant must transfer all funds in the renewable development account previously established new text end 171.12 new text begin under this subdivision and managed by the public utility to the renewable development new text end 171.13 new text begin account established in paragraph (a). Funds awarded to grantees in previous grant cycles new text end 171.14 new text begin that have not yet been expended and unencumbered funds required to be paid in calendar new text end 171.15 new text begin year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject new text end 171.16 new text begin to transfer under this paragraph. new text end 171.17     new text begin (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing new text end 171.18 new text begin each January 15 thereafter, new text end the public utility that owns the Prairie Island nuclear generating 171.19plant must transfer to a renewable development new text begin the renewable development new text end account $500,000 171.20each year for each dry cask containing spent fuel that is located at the Prairie Island power 171.21plant for each year the plant is in operation, and $7,500,000 each year the plant is not in 171.22operation if ordered by the commission pursuant to paragraph (c) new text begin (i) new text end . The fund transfer must 171.23be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility 171.24at Prairie Island for any part of a year. 171.25    (b) new text begin (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing new text end 171.26 new text begin each January 15 thereafter, new text end the public utility that owns the Monticello nuclear generating 171.27plant must transfer to the renewable development account $350,000 each year for each dry 171.28cask containing spent fuel that is located at the Monticello nuclear power plant for each 171.29year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 171.30by the commission pursuant to paragraph (c) new text begin (i) new text end . The fund transfer must be made if nuclear 171.31waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 171.32any part of a year. 172.1     new text begin (e) Each year, the public utility shall withhold from the funds transferred to the renewable new text end 172.2 new text begin development account under paragraphs (c) and (d) the amount necessary to pay its obligations new text end 172.3 new text begin under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year. new text end 172.4     new text begin (f) If the commission approves a new or amended power purchase agreement, the new text end 172.5 new text begin termination of a power purchase agreement, or the purchase and closure of a facility under new text end 172.6 new text begin section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, new text end 172.7 new text begin the public utility subject to this section shall enter into a contract with the city in which the new text end 172.8 new text begin poultry litter plant is located to provide grants to the city for the purposes of economic new text end 172.9 new text begin development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each new text end 172.10 new text begin fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid new text end 172.11 new text begin by the public utility from funds withheld from the transfer to the renewable development new text end 172.12 new text begin account, as provided in paragraphs (b) and (e). new text end 172.13 new text begin (g) If the commission approves a new or amended power purchase agreement, or the new text end 172.14 new text begin termination of a power purchase agreement under section 216B.2424, subdivision 9, with new text end 172.15 new text begin an entity owned or controlled, directly or indirectly, by two municipal utilities located north new text end 172.16 new text begin of Constitutional Route No. 8, that was previously used to meet the biomass mandate in new text end 172.17 new text begin section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a new text end 172.18 new text begin grant contract with such entity to provide $6,800,000 per year for five years, commencing new text end 172.19 new text begin 30 days after the commission approves the new or amended power purchase agreement, or new text end 172.20 new text begin the termination of the power purchase agreement, and on each June 1 thereafter through new text end 172.21 new text begin 2021, to assist the transition required by the new, amended, or terminated power purchase new text end 172.22 new text begin agreement. The grant shall be paid by the public utility from funds withheld from the transfer new text end 172.23 new text begin to the renewable development account as provided in paragraphs (b) and (e). new text end 172.24 new text begin (h) The collective amount paid under the grant contracts awarded under paragraphs (f) new text end 172.25 new text begin and (g) is limited to the amount deposited into the renewable development account, and its new text end 172.26 new text begin predecessor, the renewable development account, established under this section, that was new text end 172.27 new text begin not required to be deposited into the account under Laws 1994, chapter 641, article 1, section new text end 172.28 new text begin 10. new text end 172.29    (c) new text begin (i) new text end After discontinuation of operation of the Prairie Island nuclear plant or the 172.30Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 172.31discontinued facility, the commission shall require the public utility to pay $7,500,000 for 172.32the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 172.33facility for any year in which the commission finds, by the preponderance of the evidence, 172.34that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 173.1at the facility to a permanent or interim storage site out of the state. This determination shall 173.2be made at least every two years. 173.3(d) new text begin (j) new text end Funds in the account may be expended only for any of the following purposes: 173.4(1) to increase the market penetration within the state of renewable electric energy 173.5resources at reasonable costs; 173.6(2) to promote the start-up, expansion, and attraction of renewable electric energy projects 173.7and companies within the state; 173.8(3) to stimulate research and development within the state into new text begin of new text end renewable electric 173.9energy technologies; and 173.10(4) to develop near-commercial and demonstration scale renewable electric projects or 173.11near-commercial and demonstration scale electric infrastructure delivery projects if those 173.12delivery projects enhance the delivery of renewable electric energy 173.13 new text begin (2) to encourage grid modernization, including, but not limited to, projects that implement new text end 173.14 new text begin electricity storage, load control, and smart meter technology; and new text end 173.15 new text begin (3) to stimulate other innovative energy projects that reduce demand and increase system new text end 173.16 new text begin efficiency and flexibility new text end . 173.17 new text begin Expenditures from the fund must benefit Minnesota ratepayers receiving electric service new text end 173.18 new text begin from the utility that owns a nuclear-powered electric generating plant in this state or the new text end 173.19 new text begin Prairie Island Indian community or its members. new text end 173.20The utility that owns a nuclear generating plant is eligible to apply for renewable development 173.21account grants new text begin under this subdivision new text end . 173.22 new text begin (k) For the purposes of paragraph (j), the following terms have the meanings given: new text end 173.23     new text begin (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph new text end 173.24 new text begin (c), clauses (1), (2), (4), and (5); and new text end 173.25     new text begin (2) "grid modernization" means: new text end 173.26 new text begin (i) enhancing the reliability of the electrical grid; new text end 173.27 new text begin (ii) improving the security of the electrical grid against cyberthreats and physical threats; new text end 173.28 new text begin and new text end 173.29 new text begin (iii) increasing energy conservation opportunities by facilitating communication between new text end 173.30 new text begin the utility and its customers through the use of two-way meters, control technologies, energy new text end 174.1 new text begin storage and microgrids, technologies to enable demand response, and other innovative new text end 174.2 new text begin technologies. new text end 174.3(e) Expenditures authorized by this subdivision from the account may be made only 174.4after approval by order of the Public Utilities Commission upon a petition by the public 174.5utility. The commission may approve proposed expenditures, may disapprove proposed 174.6expenditures that it finds to be not in compliance with this subdivision or otherwise not in 174.7the public interest, and may, if agreed to by the public utility, modify proposed expenditures. 174.8The commission may approve reasonable and necessary expenditures for administering the 174.9account in an amount not to exceed five percent of expenditures. Commission approval is 174.10not required for expenditures required under subdivisions 2 and 3, section , or 174.11other law. 174.12(f) The account shall be managed by the public utility but the public utility must consult 174.13about account expenditures with an new text begin (l) A renewable development account new text end advisory group 174.14that includes, among others, representatives of new text begin the public utility and new text end its ratepayers new text begin , and new text end 174.15 new text begin includes at least one representative of the Prairie Island Indian community appointed by new text end 174.16 new text begin that community's tribal council, shall develop recommendations on account expenditures new text end . 174.17The commission may require that other interests be represented on the advisory group. The 174.18advisory group must be consulted with respect to the general scope of expenditures in 174.19designing new text begin design new text end a request for proposal and in evaluating new text begin evaluate new text end projects submitted in 174.20response to a request for proposals. In addition to consulting with The advisory group, the 174.21public utility must utilize an independent third-party expert to evaluate proposals submitted 174.22in response to a request for proposal, including all proposals made by the public utility. A 174.23request for proposal for research and development under paragraph (d) new text begin (j) new text end , clause (3) new text begin (1) new text end , 174.24may be limited to or include a request to higher education institutions located in Minnesota 174.25for multiple projects authorized under paragraph (d) new text begin (j) new text end , clause (3) new text begin (1) new text end . The request for 174.26multiple projects may include a provision that exempts the projects from the third-party 174.27expert review and instead provides for project evaluation and selection by a merit peer 174.28review grant system. The utility should attempt to reach agreement with the advisory group 174.29after consulting with it but the utility has full and sole authority to determine which 174.30expendituresshall be submitted to the commission for commission approval. In the process 174.31of determining request for proposal scope and subject and in evaluating responses to request 174.32for proposals, the public utility new text begin advisory group new text end must strongly consider, where reasonable, 174.33potential benefit to Minnesota citizens and businesses and the utility's ratepayers. 174.34 new text begin (m) The advisory group shall submit funding recommendations to the public utility, new text end 174.35 new text begin which has full and sole authority to determine which expenditures shall be submitted by new text end 175.1 new text begin the advisory group to the legislature. The commission may approve proposed expenditures, new text end 175.2 new text begin may disapprove proposed expenditures that it finds not to be in compliance with this new text end 175.3 new text begin subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, new text end 175.4 new text begin modify proposed expenditures. The commission shall, by order, submit its funding new text end 175.5 new text begin recommendations to the legislature as provided under paragraph (n). new text end 175.6(g) Funds in new text begin (n) The commission shall present its recommended appropriations from new text end 175.7 new text begin the account to the senate and house of representatives committees with jurisdiction over new text end 175.8 new text begin energy policy and finance annually by February 15. Expenditures from new text end the account may 175.9not new text begin must new text end be directly appropriated by the legislature by a law enacted after January 1, 2012, 175.10and unless appropriated by a law enacted prior to that date may be expended only pursuant 175.11to an order of the commission according to this subdivision. new text begin In enacting appropriations from new text end 175.12 new text begin the account, the legislature: new text end 175.13 new text begin (1) may approve or disapprove, but may not modify, the amount of an appropriation for new text end 175.14 new text begin a project recommended by the commission; and new text end 175.15 new text begin (2) may not appropriate money for a project the commission has not recommended new text end 175.16 new text begin funding. new text end 175.17(h) new text begin (n) new text end A request for proposal for renewable energy generation projects must, when 175.18feasible and reasonable, give preference to projects that are most cost-effective for a particular 175.19energy source. 175.20(i) new text begin (o) new text end The public utility new text begin advisory group new text end must annually, by February 15, report to the 175.21chairs and ranking minority members of the legislative committees with jurisdiction over 175.22energy policy on projects funded by the account for the prior year and all previous years. 175.23The report must, to the extent possible and reasonable, itemize the actual and projected 175.24financial benefit to the public utility's ratepayers of each project. 175.25 new text begin (p) By February 1, 2018, and each February 1 thereafter, the commissioner of new text end 175.26 new text begin management and budget shall submit a written report regarding the availability of funds in new text end 175.27 new text begin and obligations of the account to the chairs and ranking minority members of the senate new text end 175.28 new text begin and house committees with jurisdiction over energy policy and finance, the public utility, new text end 175.29 new text begin and the advisory group. new text end 175.30(j) new text begin (q) new text end A project receiving funds from the account must produce a written final report 175.31that includes sufficient detail for technical readers and a clearly written summary for 175.32nontechnical readers. The report must include an evaluation of the project's financial, 175.33environmental, and other benefits to the state and the public utility's ratepayers. 176.1(k) new text begin (r) new text end Final reports, any mid-project status reports, and renewable development account 176.2financial reports must be posted online on a public Web site designated by the commission new text begin new text end 176.3 new text begin commissioner of commerce new text end . 176.4(l) new text begin (s) new text end All final reports must acknowledge that the project was made possible in whole 176.5or part by the Minnesota renewable development fund new text begin account new text end , noting that the fund new text begin account new text end 176.6is financed by the public utility's ratepayers. 176.7 new text begin (t) Of the amount in the renewable development account, priority must be given to new text end 176.8 new text begin making the payments required under section 216C.417. new text end 176.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 176.10    Sec. 4. Minnesota Statutes 2016, section 116C.7792, is amended to read: 176.11116C.7792 SOLAR ENERGY INCENTIVE PROGRAM. 176.12The utility subject to section 116C.779 shall operate a program to provide solar energy 176.13production incentives for solar energy systems of no more than a total nameplate capacity 176.14of 20 kilowatts direct current. The program shall be operated for five new text begin eight new text end consecutive 176.15calendar years commencing in 2014. $5,000,000 shall be allocated for new text begin in new text end each of the five new text begin new text end 176.16 new text begin first four new text end years new text begin , $15,000,000 in the fifth year, $10,000,000 in each of the sixth and seventh new text end 176.17 new text begin years, and $5,000,000 in the eighth year new text end from new text begin funds withheld from transfer to new text end the renewable 176.18development account established in section to a separate new text begin under section 116C.779, new text end 176.19 new text begin subdivision 1, paragraphs (b) and (e), and placed in a separate new text end account for the purpose of 176.20the solar production incentive program. The solar system must be sized to less than 120 176.21percent of the customer's on-site annual energy consumption. The production incentive 176.22must be paid for ten years commencing with the commissioning of the system. The utility 176.23must file a plan to operate the program with the commissioner of commerce. The utility 176.24may not operate the program until it is approved by the commissioner. 176.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 176.26    Sec. 5. Minnesota Statutes 2016, section 216B.164, subdivision 2, is amended to read: 176.27    Subd. 2. Applicability new text begin ; rights maintained new text end . new text begin (a) new text end This section as well as any rules 176.28promulgated by the commission to implement this section or the Public Utility Regulatory 176.29Policies Act of 1978, Public Law 95-617, Statutes at Large, volume 92, page 3117, new text begin as new text end 176.30 new text begin amended, new text end and the Federal Energy Regulatory Commission regulations thereunder, Code of 176.31Federal Regulations, title 18, part 292, new text begin as amended, new text end shall, unless otherwise provided in this 177.1section, apply to all Minnesota electric utilities, including cooperative electric associations 177.2and municipal electric utilities. 177.3 new text begin (b) Nothing in this section shall be construed to alter the rights and duties of any person new text end 177.4 new text begin pursuant to the Public Utility Regulatory Policies Act of 1978, Public Law 95-617, Statutes new text end 177.5 new text begin at Large, volume 92, page 3117, as amended, and the Federal Energy Regulatory Commission new text end 177.6 new text begin regulations thereunder, Code of Federal Regulations, title 18, part 292, as amended. new text end 177.7    Sec. 6. Minnesota Statutes 2016, section 216B.164, subdivision 5, is amended to read: 177.8    Subd. 5. Dispute; resolution. new text begin (a) new text end In the event of disputes between an electric new text begin a public new text end 177.9utility and a qualifying facility, either party may request a determination of the issue by the 177.10commission. In any such determination, the burden of proof shall be on the new text begin public new text end utility. 177.11The commission in its order resolving each such dispute shall require payments to the 177.12prevailing party of the prevailing party's costs, disbursements, and reasonable attorneys' 177.13fees, except that the qualifying facility will be required to pay the costs, disbursements, and 177.14attorneys' fees of the new text begin public new text end utility only if the commission finds that the claims of the 177.15qualifying facility in the dispute have been made in bad faith, or are a sham, or are frivolous. 177.16 new text begin (b) Notwithstanding subdivisions 9 and 11, a qualifying facility over 20 megawatts may, new text end 177.17 new text begin until December 31, 2022, request that the commission resolve a dispute with any utility, new text end 177.18 new text begin including a cooperative electric association or municipal utility, under paragraph (a). new text end 177.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 177.20    Sec. 7. Minnesota Statutes 2016, section 216B.164, subdivision 9, is amended to read: 177.21    Subd. 9. Municipal electric utility. For purposes of this section only, except subdivision 177.225, and with respect to municipal electric utilities only, the term "commission" means the 177.23governing body of each municipal electric utility that adopts and has in effect rules 177.24implementing this section which are consistent with the rules adopted by the Minnesota 177.25Public Utilities Commission under subdivision 6. As used in this subdivision, the governing 177.26body of a municipal electric utility means the city council of that municipality; except that, 177.27if another board, commission, or body is empowered by law or resolution of the city council 177.28or by its charter to establish and regulate rates and days for the distribution of electric energy 177.29within the service area of the city, that board, commission, or body shall be considered the 177.30governing body of the municipal electric utility. 177.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 178.1    Sec. 8. Minnesota Statutes 2016, section 216B.164, is amended by adding a subdivision 178.2to read: 178.3     new text begin Subd. 11. new text end new text begin Cooperative electric association. new text end new text begin (a) For purposes of this section only, the new text end 178.4 new text begin term "commission" means the board of directors of a cooperative association that (1) elects, new text end 178.5 new text begin by resolution, to assume the authority delegated to the Public Utilities Commission over new text end 178.6 new text begin cooperative electric associations under this section, and (2) adopts and has in effect rules new text end 178.7 new text begin implementing this section. The rules must provide for a process to resolve disputes that new text end 178.8 new text begin arise under this section, and must include a provision that a request by either party for new text end 178.9 new text begin mediation of the dispute by an independent third party must be implemented in accordance new text end 178.10 new text begin with paragraph (b). A cooperative electric association that has adopted a resolution and new text end 178.11 new text begin rules under this subdivision is exempt from regulation by the Public Utilities Commission new text end 178.12 new text begin under this section. new text end 178.13 new text begin (b) In the event of a dispute between a cooperative electric association and one or more new text end 178.14 new text begin of its members, either party may request mediation of the dispute only after all attempts to new text end 178.15 new text begin settle the dispute under the cooperative electric association's dispute resolution process have new text end 178.16 new text begin been exhausted. The parties must mutually agree upon the selection of a mediator, who new text end 178.17 new text begin must be listed on the roster of neutrals for civil matters established by the state court new text end 178.18 new text begin administrator under Rule 114.12 of Minnesota's General Rules of Practice for the District new text end 178.19 new text begin Courts. The cooperative electric association shall pay 90 percent of the cost of mediation, new text end 178.20 new text begin and the member or members who initiated the dispute shall pay ten percent of the cost of new text end 178.21 new text begin mediation. new text end 178.22 new text begin (c) Except as provided in paragraph (d), any proceedings concerning the activities of a new text end 178.23 new text begin cooperative electric association under this section that are pending at the Public Utilities new text end 178.24 new text begin Commission on the effective date of this section are terminated on that date. new text end new text begin new text end 178.25 new text begin (d) The Public Utilities Commission may complete its investigation in Docket No. 16-512 new text end 178.26 new text begin to assess whether the methodology used by cooperative associations to establish a fee under new text end 178.27 new text begin section 216B.164, subdivision 3, paragraph (a), complies with state law if the commission new text end 178.28 new text begin determines that completing the investigation is necessary to protect the public interest, in new text end 178.29 new text begin which case it shall complete the investigation no later than December 31, 2017. A new text end 178.30 new text begin methodology that the commission determines complies with state law may not be challenged new text end 178.31 new text begin in a dispute under this section. If the commission determines that a methodology does not new text end 178.32 new text begin comply with state law, it shall clearly state the changes necessary to bring the methodology new text end 178.33 new text begin into compliance, and a cooperative electric association shall modify its methodology in new text end 178.34 new text begin accordance with the commission's directives. new text end 179.1 new text begin (e) For a cooperative electric association that elects to operate under the provisions of new text end 179.2 new text begin paragraph (a), disputes arising under this section subsequent to a cooperative electric new text end 179.3 new text begin association's modification of its methodology under paragraph (d) shall be addressed under new text end 179.4 new text begin the cooperative association's rules and paragraph (b), as applicable. new text end new text begin new text end 179.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 179.6    Sec. 9. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read: 179.7    Subd. 2f. Solar energy standard. (a) In addition to the requirements of subdivisions 2a 179.8and 2b, each public utility shall generate or procure sufficient electricity generated by solar 179.9energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at 179.10least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is 179.11generated by solar energy. 179.12 new text begin (b) For a public utility with more than 200,000 retail electric customers, new text end at least ten 179.13percent of the 1.5 percent goal must be met by solar energy generated by or procured from 179.14solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less. 179.15 new text begin (c) A public utility with between 50,000 and 200,000 retail electric customers: new text end 179.16 new text begin (1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by new text end 179.17 new text begin or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or new text end 179.18 new text begin less; and new text end 179.19 new text begin (2) may apply toward the ten percent goal in clause (1) individual customer subscriptions new text end 179.20 new text begin of 40 kilowatts or less to a community solar garden program operated by the public utility new text end 179.21 new text begin that has been approved by the commission. new text end 179.22(b) new text begin (d) new text end The solar energy standard established in this subdivision is subject to all the 179.23provisions of this section governing a utility's standard obligation under subdivision 2a. 179.24(c) new text begin (e) new text end It is an energy goal of the state of Minnesota that, by 2030, ten percent of the 179.25retail electric sales in Minnesota be generated by solar energy. 179.26(d) new text begin (f) new text end For the purposes of calculating the total retail electric sales of a public utility 179.27under this subdivision, there shall be excluded retail electric sales to customers that are: 179.28(1) an iron mining extraction and processing facility, including a scram mining facility 179.29as defined in Minnesota Rules, part 6130.0100, subpart 16; or 179.30(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 179.31manufacturer. 180.1Those customers may not have included in the rates charged to them by the public utility 180.2any costs of satisfying the solar standard specified by this subdivision. 180.3(e) new text begin (g) new text end A public utility may not use energy used to satisfy the solar energy standard under 180.4this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may 180.5not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the 180.6solar standard under this subdivision. 180.7(f) new text begin (h) new text end Notwithstanding any law to the contrary, a solar renewable energy credit associated 180.8with a solar photovoltaic device installed and generating electricity in Minnesota after 180.9August 1, 2013, but before 2020 may be used to meet the solar energy standard established 180.10under this subdivision. 180.11(g) new text begin (i) new text end Beginning July 1, 2014, and each July 1 through 2020, each public utility shall 180.12file a report with the commission reporting its progress in achieving the solar energy standard 180.13established under this subdivision. 180.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 180.15    Sec. 10. Minnesota Statutes 2016, section 216B.1694, subdivision 3, is amended to read: 180.16    Subd. 3. Staging and permitting. (a) A natural gas-fired plant that is located on one 180.17site designated as an innovative energy project site under subdivision 1, clause (3), is 180.18accorded the regulatory incentives granted to an innovative energy project under subdivision 180.192, clauses (1) to (3), and may exercise the authorities therein. 180.20(b) Following issuance of a final state or federal environmental impact statement for an 180.21innovative energy project that was a subject of contested case proceedings before an 180.22administrative law judge: 180.23(1) site and route permits and water appropriation approvals for an innovative energy 180.24project must also be deemed valid for a plant meeting the requirements of paragraph (a) 180.25and shall remain valid until the earlier new text begin later new text end of (i) four years from the date the final required 180.26state or federal preconstruction permit is issued or (ii) June 30, 2019 new text begin 2025 new text end ; and 180.27(2) no air, water, or other permit issued by a state agency that is necessary for constructing 180.28an innovative energy project may be the subject of contested case hearings, notwithstanding 180.29Minnesota Rules, parts 7000.1750 to 7000.2200. 181.1    Sec. 11. Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read: 181.2    Subd. 1b. Conservation improvement by cooperative association or municipality. 181.3    (a) This subdivision applies to: 181.4    (1) a cooperative electric association that provides retail service to its new text begin more than 5,000 new text end 181.5members; 181.6    (2) a municipality that provides electric service to new text begin more than 1,000 new text end retail customers; and 181.7    (3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales 181.8to natural gas to retail customers. 181.9    (b) Each cooperative electric association and municipality subject to this subdivision 181.10shall spend and invest for energy conservation improvements under this subdivision the 181.11following amounts: 181.12    (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas 181.13and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross 181.14operating revenues from electric and gas service provided in the state to large electric 181.15customer facilities; and 181.16    (2) for a cooperative electric association, 1.5 percent of its gross operating revenues 181.17from service provided in the state, excluding gross operating revenues from service provided 181.18in the state to large electric customer facilities indirectly through a distribution cooperative 181.19electric association. 181.20    (c) Each municipality and cooperative electric association subject to this subdivision 181.21shall identify and implement energy conservation improvement spending and investments 181.22that are appropriate for the municipality or association, except that a municipality or 181.23association may not spend or invest for energy conservation improvements that directly 181.24benefit a large energy facility or a large electric customer facility for which the commissioner 181.25has issued an exemption under subdivision 1a, paragraph (b). 181.26    (d) Each municipality and cooperative electric association subject to this subdivision 181.27may spend and invest annually up to ten percent of the total amount required to be spent 181.28and invested on energy conservation improvements under this subdivision on research and 181.29development projects that meet the definition of energy conservation improvement in 181.30subdivision 1 and that are funded directly by the municipality or cooperative electric 181.31association. 181.32    (e) Load-management activities may be used to meet 50 percent of the conservation 181.33investment and spending requirements of this subdivision. 182.1    (f) A generation and transmission cooperative electric association that provides energy 182.2services to cooperative electric associations that provide electric service at retail to consumers 182.3may invest in energy conservation improvements on behalf of the associations it serves and 182.4may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate 182.5basis. A municipal power agency or other not-for-profit entity that provides energy service 182.6to municipal utilities that provide electric service at retail may invest in energy conservation 182.7improvements on behalf of the municipal utilities it serves and may fulfill the conservation, 182.8spending, reporting, and energy-savings goals on an aggregate basis, under an agreement 182.9between the municipal power agency or not-for-profit entity and each municipal utility for 182.10funding the investments. 182.11    (g) Each municipality or cooperative shall file energy conservation improvement plans 182.12by June 1 on a schedule determined by order of the commissioner, but at least every three 182.13years. Plans received by June 1 must be approved or approved as modified by the 182.14commissioner by December 1 of the same year. The municipality or cooperative shall 182.15provide an evaluation to the commissioner detailing its energy conservation improvement 182.16spending and investments for the previous period. The evaluation must briefly describe 182.17each conservation program and must specify the energy savings or increased efficiency in 182.18the use of energy within the service territory of the utility or association that is the result of 182.19the spending and investments. The evaluation must analyze the cost-effectiveness of the 182.20utility's or association's conservation programs, using a list of baseline energy and capacity 182.21savings assumptions developed in consultation with the department. The commissioner 182.22shall review each evaluation and make recommendations, where appropriate, to the 182.23municipality or association to increase the effectiveness of conservation improvement 182.24activities. 182.25    (h) MS 2010 [Expired, 1Sp2003 c 11 art 3 s 4; 2007 c 136 art 2 s 5] 182.26    (i) new text begin (h) new text end The commissioner shall consider and may require a utility, association, or other 182.27entity providing energy efficiency and conservation services under this section to undertake 182.28a program suggested by an outside source, including a political subdivision, nonprofit 182.29corporation, or community organization. 182.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 182.31    Sec. 12. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read: 182.32    Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving 182.33goals for energy conservation improvement expenditures and shall evaluate an energy 182.34conservation improvement program on how well it meets the goals set. 183.1    (b) Each individual utility and association shall have an annual energy-savings goal 183.2equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 183.3commissioner under paragraph (d). The savings goals must be calculated based on the most 183.4recent three-year weather-normalized average. A utility or association may elect to carry 183.5forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar 183.6years, except that savings from electric utility infrastructure projects allowed under paragraph 183.7(d) may be carried forward for five years. A particular energy savings can be used only for 183.8one year's goal. 183.9    (c) The commissioner must adopt a filing schedule that is designed to have all utilities 183.10and associations operating under an energy-savings plan by calendar year 2010. 183.11    (d) In its energy conservation improvement plan filing, a utility or association may 183.12request the commissioner to adjust its annual energy-savings percentage goal based on its 183.13historical conservation investment experience, customer class makeup, load growth, a 183.14conservation potential study, or other factors the commissioner determines warrants an 183.15adjustment. The commissioner may not approve a plan of a public utility that provides for 183.16an annual energy-savings goal of less than one percent of gross annual retail energy sales 183.17from energy conservation improvements. 183.18    A utility or association may include in its energy conservation plan energy savings from 183.19electric utility infrastructure projects approved by the commission under section 216B.1636 183.20or waste heat recovery converted into electricity projects that may count as energy savings 183.21in addition to a minimum energy-savings goal of at least one percent for energy conservation 183.22improvements. Energy savings from electric utility infrastructure projects, as defined in 183.23section 216B.1636, may be included in the energy conservation plan of a municipal utility 183.24or cooperative electric association. Electric utility infrastructure projects must result in 183.25increased energy efficiency greater than that which would have occurred through normal 183.26maintenance activity. 183.27    (e) An energy-savings goal is not satisfied by attaining the revenue expenditure 183.28requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 183.29energy-savings goal established in this subdivision. 183.30    (f) An association or utility is not required to make energy conservation investments to 183.31attain the energy-savings goals of this subdivision that are not cost-effective even if the 183.32investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, 183.33in determining cost-effectiveness, the commissioner shall consider the costs and benefits 183.34to ratepayers, the utility, participants, and society. In addition, the commissioner shall 184.1consider the rate at which an association or municipal utility is increasing its energy savings 184.2and its expenditures on energy conservation. 184.3    (g) On an annual basis, the commissioner shall produce and make publicly available a 184.4report on the annual energy savings and estimated carbon dioxide reductions achieved by 184.5the energy conservation improvement programs for the two most recent years for which 184.6data is available. The commissioner shall report on program performance both in the 184.7aggregate and for each entity filing an energy conservation improvement plan for approval 184.8or review by the commissioner. 184.9    (h) By January 15, 2010, the commissioner shall report to the legislature whether the 184.10spending requirements under subdivisions 1a and 1b are necessary to achieve the 184.11energy-savings goals established in this subdivision. 184.12 new text begin (i) This subdivision does not apply to: new text end 184.13 new text begin (1) a cooperative electric association with fewer than 5,000 members; new text end 184.14 new text begin (2) a municipal utility with fewer than 1,000 retail electric customers; or new text end 184.15 new text begin (3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales new text end 184.16 new text begin to retail natural gas customers. new text end 184.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 184.18    Sec. 13. Minnesota Statutes 2016, section 216B.241, subdivision 1d, is amended to read: 184.19    Subd. 1d. Technical assistance. (a) The commissioner shall evaluate energy conservation 184.20improvement programs on the basis of cost-effectiveness and the reliability of the 184.21technologies employed. The commissioner shall, by order, establish, maintain, and update 184.22energy-savings assumptions that must be used when filing energy conservation improvement 184.23programs. The commissioner shall establish an inventory of the most effective energy 184.24conservation programs, techniques, and technologies, and encourage all Minnesota utilities 184.25to implement them, where appropriate, in their service territories. The commissioner shall 184.26describe these programs in sufficient detail to provide a utility reasonable guidance 184.27concerning implementation. The commissioner shall prioritize the opportunities in order of 184.28potential energy savings and in order of cost-effectiveness. The commissioner may contract 184.29with a third party to carry out any of the commissioner's duties under this subdivision, and 184.30to obtain technical assistance to evaluate the effectiveness of any conservation improvement 184.31program. The commissioner may assess up to $850,000 annually for the purposes of this 184.32subdivision. The assessments must be deposited in the state treasury and credited to the 184.33energy and conservation account created under subdivision 2a. An assessment made under 185.1this subdivision is not subject to the cap on assessments provided by section 216B.62, or 185.2any other law. 185.3    (b) Of the assessment authorized under paragraph (a), the commissioner may expend 185.4up to $400,000 annually for the purpose of developing, operating, maintaining, and providing 185.5technical support for a uniform electronic data reporting and tracking system available to 185.6all utilities subject to this section, in order to enable accurate measurement of the cost and 185.7energy savings of the energy conservation improvements required by this section. This 185.8paragraph expires June 30, 2017, and may be used for no more than three annual assessments 185.9occurring prior to that date new text begin 2018 new text end . 185.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 185.11    Sec. 14. Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read: 185.12    Subd. 2. Programs. (a) The commissioner may require public utilities to make 185.13investments and expenditures in energy conservation improvements, explicitly setting forth 185.14the interest rates, prices, and terms under which the improvements must be offered to the 185.15customers. The required programs must cover no more than a three-year period. Public 185.16utilities shall file conservation improvement plans by June 1, on a schedule determined by 185.17order of the commissioner, but at least every three years. Plans received by a public utility 185.18by June 1 must be approved or approved as modified by the commissioner by December 1 185.19of that same year. The commissioner shall evaluate the program on the basis of 185.20cost-effectiveness and the reliability of technologies employed. The commissioner's order 185.21must provide to the extent practicable for a free choice, by consumers participating in the 185.22program, of the device, method, material, or project constituting the energy conservation 185.23improvement and for a free choice of the seller, installer, or contractor of the energy 185.24conservation improvement, provided that the device, method, material, or project seller, 185.25installer, or contractor is duly licensed, certified, approved, or qualified, including under 185.26the residential conservation services program, where applicable. 185.27    (b) The commissioner may require a utility new text begin subject to subdivision 1c new text end to make an energy 185.28conservation improvement investment or expenditure whenever the commissioner finds 185.29that the improvement will result in energy savings at a total cost to the utility less than the 185.30cost to the utility to produce or purchase an equivalent amount of new supply of energy. 185.31The commissioner shall nevertheless ensure that every public utility operate one or more 185.32programs under periodic review by the department. 185.33    (c) Each public utility subject to subdivision 1a may spend and invest annually up to ten 185.34percent of the total amount required to be spent and invested on energy conservation 186.1improvements under this section by the utility on research and development projects that 186.2meet the definition of energy conservation improvement in subdivision 1 and that are funded 186.3directly by the public utility. 186.4    (d) A public utility may not spend for or invest in energy conservation improvements 186.5that directly benefit a large energy facility or a large electric customer facility for which the 186.6commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 186.7commissioner shall consider and may require a utility to undertake a program suggested by 186.8an outside source, including a political subdivision, a nonprofit corporation, or community 186.9organization. 186.10    (e) A utility, a political subdivision, or a nonprofit or community organization that has 186.11suggested a program, the attorney general acting on behalf of consumers and small business 186.12interests, or a utility customer that has suggested a program and is not represented by the 186.13attorney general under section 8.33 may petition the commission to modify or revoke a 186.14department decision under this section, and the commission may do so if it determines that 186.15the program is not cost-effective, does not adequately address the residential conservation 186.16improvement needs of low-income persons, has a long-range negative effect on one or more 186.17classes of customers, or is otherwise not in the public interest. The commission shall reject 186.18a petition that, on its face, fails to make a reasonable argument that a program is not in the 186.19public interest. 186.20    (f) The commissioner may order a public utility to include, with the filing of the utility's 186.21annual status report, the results of an independent audit of the utility's conservation 186.22improvement programs and expenditures performed by the department or an auditor with 186.23experience in the provision of energy conservation and energy efficiency services approved 186.24by the commissioner and chosen by the utility. The audit must specify the energy savings 186.25or increased efficiency in the use of energy within the service territory of the utility that is 186.26the result of the spending and investments. The audit must evaluate the cost-effectiveness 186.27of the utility's conservation programs. 186.28(g) A gas utility may not spend for or invest in energy conservation improvements that 186.29directly benefit a large customer facility or commercial gas customer facility for which the 186.30commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or 186.31(e). The commissioner shall consider and may require a utility to undertake a program 186.32suggested by an outside source, including a political subdivision, a nonprofit corporation, 186.33or a community organization. 186.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 187.1    Sec. 15. Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read: 187.2    Subd. 5. Efficient lighting program. (a) Each public utility, cooperative electric 187.3association, and municipal utility that provides electric service to retail customers new text begin and is new text end 187.4 new text begin subject to subdivision 1c new text end shall include as part of its conservation improvement activities a 187.5program to strongly encourage the use of fluorescent and high-intensity discharge lamps. 187.6The program must include at least a public information campaign to encourage use of the 187.7lamps and proper management of spent lamps by all customer classifications. 187.8    (b) A public utility that provides electric service at retail to 200,000 or more customers 187.9shall establish, either directly or through contracts with other persons, including lamp 187.10manufacturers, distributors, wholesalers, and retailers and local government units, a system 187.11to collect for delivery to a reclamation or recycling facility spent fluorescent and 187.12high-intensity discharge lamps from households and from small businesses as defined in 187.13section 645.445 that generate an average of fewer than ten spent lamps per year. 187.14    (c) A collection system must include establishing reasonably convenient locations for 187.15collecting spent lamps from households and financial incentives sufficient to encourage 187.16spent lamp generators to take the lamps to the collection locations. Financial incentives may 187.17include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash 187.18back system, or any other financial incentive or group of incentives designed to collect the 187.19maximum number of spent lamps from households and small businesses that is reasonably 187.20feasible. 187.21    (d) A public utility that provides electric service at retail to fewer than 200,000 customers, 187.22a cooperative electric association, or a municipal utility that provides electric service at 187.23retail to customers may establish a collection system under paragraphs (b) and (c) as part 187.24of conservation improvement activities required under this section. 187.25    (e) The commissioner of the Pollution Control Agency may not, unless clearly required 187.26by federal law, require a public utility, cooperative electric association, or municipality that 187.27establishes a household fluorescent and high-intensity discharge lamp collection system 187.28under this section to manage the lamps as hazardous waste as long as the lamps are managed 187.29to avoid breakage and are delivered to a recycling or reclamation facility that removes 187.30mercury and other toxic materials contained in the lamps prior to placement of the lamps 187.31in solid waste. 187.32    (f) If a public utility, cooperative electric association, or municipal utility contracts with 187.33a local government unit to provide a collection system under this subdivision, the contract 188.1must provide for payment to the local government unit of all the unit's incremental costs of 188.2collecting and managing spent lamps. 188.3    (g) All the costs incurred by a public utility, cooperative electric association, or municipal 188.4utility for promotion and collection of fluorescent and high-intensity discharge lamps under 188.5this subdivision are conservation improvement spending under this section. 188.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 188.7    Sec. 16. Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read: 188.8    Subd. 5d. On-bill repayment programs. (a) For the purposes of this subdivision: 188.9(1) "utility" means a public utility, municipal utility, or cooperative electric association new text begin new text end 188.10 new text begin subject to subdivision 1c new text end that provides electric or natural gas service to retail customers; 188.11and 188.12(2) "on-bill repayment program" means a program in which a utility collects on a 188.13customer's bill repayment of a loan to the customer by an eligible lender to finance the 188.14customer's investment in eligible energy conservation or renewable energy projects, and 188.15remits loan repayments to the lender. 188.16(b) A utility may include as part of its conservation improvement plan an on-bill 188.17repayment program to enable a customer to finance eligible projects with installment loans 188.18originated by an eligible lender. An eligible project is one that is either an energy conservation 188.19improvement, or a project installed on the customer's site that uses an eligible renewable 188.20energy source as that term is defined in section 216B.2411, subdivision 2, paragraph (b), 188.21but does not include mixed municipal solid waste or refuse-derived fuel from mixed 188.22municipal solid waste. An eligible renewable energy source also includes solar thermal 188.23technology that collects the sun's radiant energy and uses that energy to heat or cool air or 188.24water, and meets the requirements of section 216C.25. To be an eligible lender, a lender 188.25must: 188.26(1) have a federal or state charter and be eligible for federal deposit insurance; 188.27(2) be a government entity, including an entity established under chapter 469, that has 188.28authority to provide financial assistance for energy efficiency and renewable energy projects; 188.29(3) be a joint venture by utilities established under section 452.25; or 188.30(4) be licensed, certified, or otherwise have its lending activities overseen by a state or 188.31federal government agency. 189.1The commissioner must allow a utility broad discretion in designing and implementing an 189.2on-bill repayment program, provided that the program complies with this subdivision. 189.3(c) A utility may establish an on-bill repayment program for all customer classes or for 189.4a specific customer class. 189.5(d) A public utility that implements an on-bill repayment program under this subdivision 189.6must enter into a contract with one or more eligible lenders that complies with the 189.7requirements of this subdivision and contains provisions addressing capital commitments, 189.8loan origination, transfer of loans to the public utility for on-bill repayment, and acceptance 189.9of loans returned due to delinquency or default. 189.10(e) A public utility's contract with a lender must require the lender to comply with all 189.11applicable federal and state laws, rules, and regulations related to lending practices and 189.12consumer protection; to conform to reasonable and prudent lending standards; and to provide 189.13businesses that sell, maintain, and install eligible projects the ability to participate in an 189.14on-bill repayment program under this subdivision on a nondiscriminatory basis. 189.15(f) A public utility's contract with a lender may provide: 189.16(1) for the public utility to purchase loans from the lender with a condition that the lender 189.17must purchase back loans in delinquency or default; or 189.18(2) for the lender to retain ownership of loans with the public utility servicing the loans 189.19through on-bill repayment as long as payments are current. 189.20The risk of default must remain with the lender. The lender shall not have recourse against 189.21the public utility except in the event of negligence or breach of contract by the utility. 189.22(g) If a public utility customer makes a partial payment on a utility bill that includes a 189.23loan installment, the partial payment must be credited first to the amount owed for utility 189.24service, including taxes and fees. A public utility may not suspend or terminate a customer's 189.25utility service for delinquency or default on a loan that is being serviced through the public 189.26utility's on-bill repayment program. 189.27(h) An outstanding balance on a loan being repaid under this subdivision is a financial 189.28obligation only of the customer who is signatory to the loan, and not to any subsequent 189.29customer occupying the property associated with the loan. If the public utility purchases 189.30loans from the lender as authorized under paragraph (f), clause (1), the public utility must 189.31return to the lender a loan not repaid when a customer borrower no longer occupies the 189.32property. 190.1(i) Costs incurred by a public utility under this subdivision are recoverable as provided 190.2in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs 190.3for billing system modifications necessary to implement and operate an on-bill repayment 190.4program and for ongoing costs to operate the program. Costs in a plan approved by the 190.5commissioner may be counted toward a utility's conservation spending requirements under 190.6subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting 190.7from this section may be counted toward satisfying a utility's energy-savings goals under 190.8subdivision 1c. 190.9(j) This subdivision does not require a utility to terminate or modify an existing financing 190.10program and does not prohibit a utility from establishing an on-bill financing program in 190.11which the utility provides the financing capital. 190.12(k) A municipal utility or cooperative electric association that implements an on-bill 190.13repayment program shall design the program to address the issues identified in paragraphs 190.14(d) through (h) as determined by the governing board of the utility or association. 190.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 190.16    Sec. 17. Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read: 190.17    Subd. 7. Low-income programs. (a) The commissioner shall ensure that each utility 190.18and association new text begin subject to subdivision 1c new text end provides low-income programs. When approving 190.19spending and energy-savings goals for low-income programs, the commissioner shall 190.20consider historic spending and participation levels, energy savings for low-income programs, 190.21and the number of low-income persons residing in the utility's service territory. A municipal 190.22utility that furnishes gas service must spend at least 0.2 percent, and a public utility furnishing 190.23gas service must spend at least 0.4 percent, of its most recent three-year average gross 190.24operating revenue from residential customers in the state on low-income programs. A utility 190.25or association that furnishes electric service must spend at least 0.1 percent of its gross 190.26operating revenue from residential customers in the state on low-income programs. For a 190.27generation and transmission cooperative association, this requirement shall apply to each 190.28association's members' aggregate gross operating revenue from sale of electricity to residential 190.29customers in the state. Beginning in 2010, a utility or association that furnishes electric 190.30service must spend 0.2 percent of its gross operating revenue from residential customers in 190.31the state on low-income programs. 190.32    (b) To meet the requirements of paragraph (a), a utility or association may contribute 190.33money to the energy and conservation account. An energy conservation improvement plan 190.34must state the amount, if any, of low-income energy conservation improvement funds the 191.1utility or association will contribute to the energy and conservation account. Contributions 191.2must be remitted to the commissioner by February 1 of each year. 191.3    (c) The commissioner shall establish low-income programs to utilize money contributed 191.4to the energy and conservation account under paragraph (b). In establishing low-income 191.5programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and 191.6community organizations, especially organizations engaged in providing energy and 191.7weatherization assistance to low-income persons. Money contributed to the energy and 191.8conservation account under paragraph (b) must provide programs for low-income persons, 191.9including low-income renters, in the service territory of the utility or association providing 191.10the money. The commissioner shall record and report expenditures and energy savings 191.11achieved as a result of low-income programs funded through the energy and conservation 191.12account in the report required under subdivision 1c, paragraph (g). The commissioner may 191.13contract with a political subdivision, nonprofit or community organization, public utility, 191.14municipality, or cooperative electric association to implement low-income programs funded 191.15through the energy and conservation account. 191.16    (d) A utility or association may petition the commissioner to modify its required spending 191.17under paragraph (a) if the utility or association and the commissioner have been unable to 191.18expend the amount required under paragraph (a) for three consecutive years. 191.19(e) The costs and benefits associated with any approved low-income gas or electric 191.20conservation improvement program that is not cost-effective when considering the costs 191.21and benefits to the utility may, at the discretion of the utility, be excluded from the calculation 191.22of net economic benefits for purposes of calculating the financial incentive to the utility. 191.23The energy and demand savings may, at the discretion of the utility, be applied toward the 191.24calculation of overall portfolio energy and demand savings for purposes of determining 191.25progress toward annual goals and in the financial incentive mechanism. 191.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 191.27    Sec. 18. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read: 191.28    Subd. 2. Resource plan filing and approval. new text begin (a) new text end A utility shall file a resource plan with 191.29the commission periodically in accordance with rules adopted by the commission. The 191.30commission shall approve, reject, or modify the plan of a public utility, as defined in section 191.31216B.02, subdivision 4 , consistent with the public interest. 191.32 new text begin (b) new text end In the resource plan proceedings of all other utilities, the commission's order shall 191.33be advisory and the order's findings and conclusions shall constitute prima facie evidence 192.1which may be rebutted by substantial evidence in all other proceedings. With respect to 192.2utilities other than those defined in section 216B.02, subdivision 4, the commission shall 192.3consider the filing requirements and decisions in any comparable proceedings in another 192.4jurisdiction. 192.5 new text begin (c) new text end As a part of its resource plan filing, a utility shall include the least cost plan for 192.6meeting 50 and 75 percent of all new text begin energy needs from both new text end new and refurbished capacity 192.7needs new text begin generating facilities new text end through a combination of conservation and renewable energy 192.8resources. 192.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 192.10 new text begin Paragraph (c) applies to resource plans filed with the commission on or after July 1, 2017. new text end 192.11    Sec. 19. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read: 192.12    Subd. 4. Preference for renewable energy facility. The commission shall not approve 192.13a new or refurbished nonrenewable energy facility in an integrated resource plan or a 192.14certificate of need, pursuant to section 216B.243, nor shall the commission allow rate 192.15recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the 192.16utility has demonstrated that a renewable energy facility is not in the public interest. new text begin When new text end 192.17 new text begin making new text end the public interest determination new text begin , the commission new text end must include new text begin consider: new text end 192.18 new text begin (1) new text end whether the resource plan helps the utility achieve the greenhouse gas reduction 192.19goals under section 216H.02, the renewable energy standard under section 216B.1691, or 192.20the solar energy standard under section 216B.1691, subdivision 2f. new text begin ; new text end 192.21 new text begin (2) impacts on local and regional grid reliability; new text end 192.22 new text begin (3) utility and ratepayer impacts resulting from the intermittent nature of renewable new text end 192.23 new text begin energy facilities, including but not limited to the costs of purchasing wholesale electricity new text end 192.24 new text begin in the market and the costs of providing ancillary services; and new text end 192.25 new text begin (4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, new text end 192.26 new text begin changes in transmission costs, portfolio diversification, and environmental compliance new text end 192.27 new text begin costs. new text end 192.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 193.1    Sec. 20. Minnesota Statutes 2016, section 216B.2424, is amended by adding a subdivision 193.2to read: 193.3     new text begin Subd. 9. new text end new text begin Adjustment of biomass fuel requirement. new text end new text begin (a) Notwithstanding any provision new text end 193.4 new text begin in this section, the public utility subject to this section may, with respect to a facility approved new text end 193.5 new text begin under this section, file a petition with the commission for approval of: new text end 193.6 new text begin (1) a new or amended power purchase agreement; new text end 193.7 new text begin (2) the early termination of a power purchase agreement; or new text end 193.8 new text begin (3) the purchase and closure of the facility. new text end 193.9 new text begin (b) The commission may approve a new or amended power purchase agreement under new text end 193.10 new text begin this subdivision, notwithstanding the fuel requirements of this section, if the commission new text end 193.11 new text begin determines that: new text end 193.12 new text begin (1) all parties to the original power purchase agreement, or their successors or assigns, new text end 193.13 new text begin as applicable, agree to the terms and conditions of the new or amended power purchase new text end 193.14 new text begin agreement; and new text end 193.15 new text begin (2) the new or amended power purchase agreement is in the best interest of the customers new text end 193.16 new text begin of the public utility subject to this section, taking into consideration any savings realized new text end 193.17 new text begin by customers in the new or amended power purchase agreement and any costs imposed on new text end 193.18 new text begin customers under paragraph (e). A new or amended power purchase agreement approved new text end 193.19 new text begin under this paragraph may be for any term agreed to by the parties and may govern the new text end 193.20 new text begin purchase of any amount of energy. new text end 193.21 new text begin (c) The commission may approve the early termination of a power purchase agreement new text end 193.22 new text begin or the purchase and closure of a facility under this subdivision if it determines that: new text end 193.23 new text begin (1) all parties to the power purchase agreement, or their successors or assigns, as new text end 193.24 new text begin applicable, agree to the early termination of the power purchase agreement or the purchase new text end 193.25 new text begin and closure of the facility; and new text end 193.26 new text begin (2) the early termination of the power purchase agreement or the purchase and closure new text end 193.27 new text begin of the facility is in the best interest of the customers of the public utility subject to this new text end 193.28 new text begin section, taking into consideration any savings realized by customers as a result of the early new text end 193.29 new text begin termination of the power purchase agreement or the purchase and closure of the facility and new text end 193.30 new text begin any costs imposed on the customers under paragraph (e). new text end 193.31 new text begin (d) The commission's approval of a new or amended power purchase agreement under new text end 193.32 new text begin paragraph (b) or of the termination of a power purchase agreement or the purchase and new text end 194.1 new text begin closure of a facility under paragraph (c), shall not require the public utility subject to this new text end 194.2 new text begin section to purchase replacement amounts of biomass energy to fulfill the requirements of new text end 194.3 new text begin this section. new text end 194.4 new text begin (e) A utility may petition the commission to approve a rate schedule that provides for new text end 194.5 new text begin the automatic adjustment of charges to recover investments, expenses and costs, and earnings new text end 194.6 new text begin on the investments associated with a new or amended power purchase agreement, the early new text end 194.7 new text begin termination of a power purchase agreement, or the purchase and closure of a facility. The new text end 194.8 new text begin commission may approve the rate schedule upon a showing that the recovery of investments, new text end 194.9 new text begin expenses and costs, and earnings on the investments is less than the costs that would have new text end 194.10 new text begin been recovered from customers had the utility continued to purchase energy under the power new text end 194.11 new text begin purchase agreement in effect before any option available under this section is approved by new text end 194.12 new text begin the commission. If approved by the commission, cost recovery under this paragraph may new text end 194.13 new text begin include all cost recovery allowed for renewable facilities under section 216B.1645, new text end 194.14 new text begin subdivisions 2 and 2a. new text end 194.15 new text begin (f) This subdivision does not apply to a St. Paul district heating and cooling system new text end 194.16 new text begin cogeneration facility, and nothing in this subdivision precludes a public utility that operates new text end 194.17 new text begin a nuclear-power electric generating plant from filing a petition with the commission for new text end 194.18 new text begin approval of a new or amended power purchase agreement with such a facility. new text end 194.19 new text begin (g) For the purposes of this subdivision, "facility" means a biomass facility previously new text end 194.20 new text begin approved by the commission to satisfy a portion of the biomass mandate in this section. new text end 194.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 194.22    Sec. 21. Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read: 194.23    Subd. 2. Energy policy goals. It is the energy policy of the state of Minnesota that: 194.24(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of 194.25electricity and natural gas be achieved through cost-effective energy efficiency; 194.26    (2) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the 194.27year 2015, through increased reliance on energy efficiency and renewable energy alternatives; 194.28and 194.29    (3) 25 percent of the total energy used in the state be derived from renewable energy 194.30resources by the year 2025. new text begin ; and new text end 194.31     new text begin (4) retail electricity rates for each customer class be at least five percent below the new text end 194.32 new text begin national average. new text end 195.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 195.2    Sec. 22. new text begin [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" new text end 195.3 new text begin SOLAR ENERGY PRODUCTION INCENTIVES. new text end 195.4     new text begin Subdivision 1. new text end new text begin General provisions. new text end new text begin Payment of a "Made in Minnesota" solar energy new text end 195.5 new text begin production incentive to an owner whose application was approved by the commissioner of new text end 195.6 new text begin commerce under section 216C.415, by May 1, 2017, must be administered under the new text end 195.7 new text begin provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 216C.414, subdivisions new text end 195.8 new text begin 1 to 3 and 5; and 216C.415. No incentive payments may be made under this section to an new text end 195.9 new text begin owner whose application was approved by the commissioner after May 1, 2017. new text end 195.10     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin (a) Unspent money remaining in the account established under new text end 195.11 new text begin Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the new text end 195.12 new text begin renewable development account in the special revenue fund established under Minnesota new text end 195.13 new text begin Statutes, section 116C.779, subdivision 1. new text end 195.14 new text begin (b) There is annually appropriated from the renewable development account in the special new text end 195.15 new text begin revenue fund established in Minnesota Statutes, section 116C.779, to the commissioner of new text end 195.16 new text begin commerce money sufficient to make the incentive payments required under Minnesota new text end 195.17 new text begin Statutes 2016, section 216C.415. Any funds appropriated under this paragraph that are new text end 195.18 new text begin unexpended at the end of a fiscal year cancel to the renewable development account. new text end 195.19 new text begin (c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of new text end 195.20 new text begin this appropriation may be used for administrative costs. new text end 195.21     new text begin Subd. 3. new text end new text begin Eligibility window; payment duration. new text end new text begin (a) Payments may be made under this new text end 195.22 new text begin subdivision only for solar photovoltaic module installations that meet the requirements of new text end 195.23 new text begin subdivision 1 and that first begin generating electricity between January 1, 2014, and October new text end 195.24 new text begin 31, 2018. new text end 195.25 new text begin (b) The payment eligibility window of the incentive begins and runs consecutively from new text end 195.26 new text begin the date the solar photovoltaic modules first begins generating electricity. new text end 195.27 new text begin (c) An owner of solar photovoltaic modules may receive payments under this section new text end 195.28 new text begin for a particular module for a period of ten years, provided that sufficient funds are available new text end 195.29 new text begin in the account. new text end 195.30 new text begin (d) No payment may be made under this section for electricity generated after October new text end 195.31 new text begin 31, 2028. new text end new text begin new text end 195.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 196.1    Sec. 23. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision 196.2to read: 196.3     new text begin Subd. 7a. new text end new text begin Multifamily residential dwelling. new text end new text begin "Multifamily residential dwelling" means new text end 196.4 new text begin a residential dwelling containing five or more units intended for use as a residence by tenants new text end 196.5 new text begin or lessees of the owner. new text end 196.6    Sec. 24. Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read: 196.7    Subd. 3. Long-term increased emissions from power plants prohibited. Unless 196.8preempted by federal law, until a comprehensive and enforceable state law or rule pertaining 196.9to greenhouse gases that directly limits and substantially reduces, over time, statewide power 196.10sector carbon dioxide emissions is enacted and in effect, and except as allowed in 196.11subdivisions 4 to 7, on and after August 1, 2009, no person shall: 196.12    (1) construct within the state a new large energy facility that would contribute to statewide 196.13power sector carbon dioxide emissions; new text begin . new text end 196.14    (2) import or commit to import from outside the state power from a new large energy 196.15facility that would contribute to statewide power sector carbon dioxide emissions; or 196.16    (3) enter into a new long-term power purchase agreement that would increase statewide 196.17power sector carbon dioxide emissions. For purposes of this section, a long-term power 196.18purchase agreement means an agreement to purchase 50 megawatts of capacity or more for 196.19a term exceeding five years. 196.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 196.21    Sec. 25. Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read: 196.22    Subd. 4. Exception for facilities that offset emissions. (a) The prohibitions in new text begin prohibition new text end 196.23 new text begin under new text end subdivision 3 do new text begin does new text end not apply if the project proponent demonstrates to the Public 196.24Utilities Commission's satisfaction that it will offset the new contribution to statewide power 196.25sector carbon dioxide emissions with a carbon dioxide reduction project identified in 196.26paragraph (b) and in compliance with paragraph (c). 196.27    (b) A project proponent may offset in an amount equal to or greater than the proposed 196.28new contribution to statewide power sector carbon dioxide emissions in either, or a 196.29combination of both, of the following ways: 196.30    (1) by reducing an existing facility's contribution to statewide power sector carbon 196.31dioxide emissions; or 197.1    (2) by purchasing carbon dioxide allowances from a state or group of states that has a 197.2carbon dioxide cap and trade system in place that produces verifiable emissions reductions. 197.3    (c) The Public Utilities Commission shall not find that a proposed carbon dioxide 197.4reduction project identified in paragraph (b) acceptably offsets a new contribution to statewide 197.5power sector carbon dioxide emissions unless the proposed offsets are permanent, 197.6quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section 197.7does not exempt emissions that have been offset under this subdivision and emissions 197.8exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state. 197.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 197.10    Sec. 26. Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read: 197.11    Subd. 7. Other exemptions. The prohibitions in new text begin prohibition under new text end subdivision 3 do new text begin does new text end 197.12not apply to: 197.13    (1) a new large energy facility under consideration by the Public Utilities Commission 197.14pursuant to proposals or applications filed with the Public Utilities Commission before April 197.151, 2007, or to any power purchase agreement related to a facility described in this clause. 197.16The exclusion of pending proposals and applications from the prohibitions in subdivision 197.173 does not limit the applicability of any other law and is not an expression of legislative 197.18intent regarding whether any pending proposal or application should be approved or denied; 197.19    (2) a contract not subject to commission approval that was entered into prior to April 1, 197.202007, to purchase power from a new large energy facility that was approved by a comparable 197.21authority in another state prior to that date, for which municipal or public power district 197.22bonds have been issued, and on which construction has begun; 197.23    (3) a new large energy facility or a power purchase agreement between a Minnesota 197.24utility and a new large energy facility located outside new text begin within new text end Minnesota that the Public 197.25Utilities Commission has determined is essential to ensure the long-term reliability of 197.26Minnesota's electric system, to allow electric service for increased industrial demand, or to 197.27avoid placing a substantial financial burden on Minnesota ratepayers. An order of the 197.28commission granting an exemption under this clause is stayed until the June 1 following 197.29the next regular or annual session of the legislature that begins after the date of the 197.30commission's final order; or 197.31(4) a new large energy facility with a combined electric generating capacity of less than 197.32100 megawatts, which did not require a Minnesota certificate of need, which received an 197.33air pollution control permit to construct from an adjoining state before January 1, 2008, and 198.1on which construction began before July 1, 2008, or to any power purchase agreement 198.2related to a facility described in this clause. 198.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 198.4    Sec. 27. new text begin RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK new text end 198.5 new text begin FORCE. new text end 198.6     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin The Residential PACE Consumer Protection Legislation new text end 198.7 new text begin Task Force shall develop recommendations for consumer protection legislation for any new text end 198.8 new text begin energy improvements financing program implemented under Minnesota Statutes, sections new text end 198.9 new text begin 216C.435 to 216C.436, for single-family residential dwellings. For purposes of this section, new text end 198.10 new text begin "residential PACE" or "PACE" means energy improvement financing programs for new text end 198.11 new text begin single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435 new text end 198.12 new text begin to 216C.436. new text end new text begin new text end 198.13     new text begin Subd. 2. new text end new text begin Task force. new text end new text begin (a) The task force consists of 16 members as follows: new text end 198.14 new text begin (1) one member appointed by the Minnesota Association of Realtors; new text end 198.15 new text begin (2) one member appointed by the Center for Energy and Environment; new text end 198.16 new text begin (3) one member appointed by the Minnesota Bankers Association; new text end 198.17 new text begin (4) one member appointed by the Legal Services Advocacy Project; new text end 198.18 new text begin (5) one member appointed by the Minnesota Credit Union Network; new text end 198.19 new text begin (6) one member appointed by the Minnesota Solar Energy Industry Association; new text end 198.20 new text begin (7) one member appointed by the St. Paul Port Authority; new text end 198.21 new text begin (8) one member appointed by the League of Minnesota Cities; new text end new text begin new text end 198.22 new text begin (9) one member appointed by the Association of Minnesota Counties; new text end 198.23 new text begin (10) one member appointed by AARP Minnesota; new text end 198.24 new text begin (11) one member appointed by Fresh Energy; new text end 198.25 new text begin (12) one member appointed by the Citizens Utility Board of Minnesota; new text end 198.26 new text begin (13) one member appointed by Clean Energy Economy Minnesota; new text end 198.27 new text begin (14) one member appointed by the Minnesota Land Title Association; new text end 198.28 new text begin (15) one member appointed by an organization with experience implementing residential new text end 198.29 new text begin PACE programs in other states; and new text end 199.1 new text begin (16) the commissioner of commerce or a designee. new text end 199.2 new text begin (b) Any public member can designate a substitute from the same organization to replace new text end 199.3 new text begin that member at a meeting of the task force. new text end 199.4     new text begin Subd. 3. new text end new text begin Duties. new text end new text begin The task force must develop recommendations to: new text end 199.5 new text begin (1) address concerns regarding the possible constraints on free alienation of residential new text end 199.6 new text begin property caused by existence and amount of the PACE liens; new text end 199.7 new text begin (2) reduce and minimize any point-of-sale confusion in transactions involving new text end 199.8 new text begin PACE-encumbered homes; new text end 199.9 new text begin (3) ensure conspicuous and meaningful disclosure of, among other things: new text end 199.10 new text begin (i) all costs and fees of a residential PACE loan; and new text end 199.11 new text begin (ii) the risks, such as foreclosure and higher costs, that may be associated with residential new text end 199.12 new text begin PACE loans relative to other financing mechanisms; new text end 199.13 new text begin (4) ensure that the ability to repay standard uses commonly accepted underwriting new text end 199.14 new text begin principles; new text end 199.15 new text begin (5) ensure that consumer provisions required of and protections that apply to conventional new text end 199.16 new text begin loans and other financing options, including but not limited to the Truth in Lending Act and new text end 199.17 new text begin the Real Estate Settlement Procedures Act, are required of and apply to PACE financing; new text end 199.18 new text begin (6) address any unique protections necessary for elderly, low-income homeowners and new text end 199.19 new text begin other financially vulnerable homeowners; new text end 199.20 new text begin (7) establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy new text end 199.21 new text begin improvements; and new text end 199.22 new text begin (8) address any other issues the task force identifies that are necessary to protect new text end 199.23 new text begin consumers. new text end 199.24     new text begin Subd. 4. new text end new text begin Administrative support. new text end new text begin The commissioner of commerce shall provide new text end 199.25 new text begin administrative support and meeting space for the task force. new text end 199.26     new text begin Subd. 5. new text end new text begin Compensation. new text end new text begin Members serve without compensation and shall not be new text end 199.27 new text begin reimbursed for expenses. new text end 199.28     new text begin Subd. 6. new text end new text begin Chair. new text end new text begin The commissioner of commerce or the commissioner's designee shall new text end 199.29 new text begin serve as chair. new text end 199.30     new text begin Subd. 7. new text end new text begin Meetings. new text end new text begin The task force shall meet regularly, at the call of the chair. Meetings new text end 199.31 new text begin of the task force are subject to Minnesota Statutes, chapter 13D. new text end 200.1     new text begin Subd. 8. new text end new text begin Appointments; first meeting. new text end new text begin Appointments must be made by June 1, 2017. new text end 200.2 new text begin The commissioner of commerce must convene the first meeting by July 15, 2017. new text end 200.3     new text begin Subd. 9. new text end new text begin Report to legislature. new text end new text begin By January 15, 2018, the commissioner shall submit a new text end 200.4 new text begin report detailing the task force's findings and recommendations to the chairs and ranking new text end 200.5 new text begin minority members of the senate and house of representatives committees with jurisdiction new text end 200.6 new text begin over energy and consumer protection policy and finance. The report must include any draft new text end 200.7 new text begin legislation necessary to implement the recommendations of the task force. new text end 200.8     new text begin Subd. 10. new text end new text begin Suspension of residential PACE. new text end new text begin Until legislation is enacted establishing new text end 200.9 new text begin consumer protections that address, but are not limited to, the concerns identified in new text end 200.10 new text begin subdivision 3, no programs for the financing of energy improvements on a single-family new text end 200.11 new text begin residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436, new text end 200.12 new text begin may be operated after the effective date of this section. new text end 200.13     new text begin Subd. 11. new text end new text begin Expiration. new text end new text begin The task force expires January 15, 2018, or after submitting the new text end 200.14 new text begin report required in this section, whichever is earlier. new text end 200.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 200.16    Sec. 28. new text begin PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR new text end 200.17 new text begin THERMAL REBATES. new text end 200.18 new text begin (a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner new text end 200.19 new text begin of a solar thermal system whose application was approved by the commissioner of commerce new text end 200.20 new text begin after the effective date of this act. new text end 200.21 new text begin (b) Unspent money remaining in the account established under Minnesota Statutes 2014, new text end 200.22 new text begin section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF account established new text end 200.23 new text begin under Minnesota Statutes 2016, section 116C.779, subdivision 1. new text end 200.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 200.25    Sec. 29. new text begin RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF new text end 200.26 new text begin UNEXPENDED GRANT FUNDS. new text end 200.27 new text begin (a) No later than 30 days after the effective date of this section, the utility subject to new text end 200.28 new text begin Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person new text end 200.29 new text begin who received a grant funded from the renewable development account previously established new text end 200.30 new text begin under that subdivision: new text end 200.31 new text begin (1) after January 1, 2012; and new text end 201.1 new text begin (2) before January 1, 2012, if the funded project remains incomplete as of the effective new text end 201.2 new text begin date of this section. new text end 201.3 new text begin The notice must contain the provisions of this section and instructions directing grant new text end 201.4 new text begin recipients how unexpended funds can be transferred to the clean energy advancement fund new text end 201.5 new text begin account. new text end 201.6 new text begin (b) A recipient of a grant from the renewable development account previously established new text end 201.7 new text begin under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after new text end 201.8 new text begin receiving the notice required under paragraph (a), transfer any grant funds that remain new text end 201.9 new text begin unexpended as of the effective date of this section to the clean energy advancement fund new text end 201.10 new text begin account if, by that effective date, all of the following conditions are met: new text end 201.11 new text begin (1) the grant was awarded more than five years before the effective date of this section; new text end 201.12 new text begin (2) the grant recipient has failed to obtain control of the site on which the project is to new text end 201.13 new text begin be constructed; new text end 201.14 new text begin (3) the grant recipient has failed to secure all necessary permits or approvals from any new text end 201.15 new text begin unit of government with respect to the project; and new text end 201.16 new text begin (4) construction of the project has not begun. new text end 201.17 new text begin (c) A recipient of a grant from the renewable development account previously established new text end 201.18 new text begin under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds new text end 201.19 new text begin that remain unexpended five years after the grant funds are received by the grant recipient new text end 201.20 new text begin if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant new text end 201.21 new text begin recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary new text end 201.22 new text begin of the receipt of the grant funds. new text end 201.23 new text begin (d) A person who transfers funds to the clean energy advancement fund account under new text end 201.24 new text begin this section is eligible to apply for funding from the clean energy advancement fund account. new text end 201.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 201.26    Sec. 30. new text begin REPEALER. new text end 201.27 new text begin (a) new text end new text begin Laws 2013, chapter 85, article 6, section 11, new text end new text begin is repealed. new text end 201.28 new text begin (b) new text end new text begin Minnesota Statutes 2016, sections 216B.8109; 216B.811; 216B.812; 216B.813; and new text end 201.29 new text begin 216B.815, new text end new text begin are repealed. new text end 201.30 new text begin (c) new text end new text begin Minnesota Statutes 2016, sections 3.8852; and 116C.779, subdivision 3, new text end new text begin are repealed. new text end 202.1 new text begin (d) new text end new text begin Minnesota Statutes 2016, sections 174.187; 216C.411; 216C.412; 216C.413; new text end 202.2 new text begin 216C.414; 216C.415; and 216C.416, new text end new text begin are repealed. new text end 202.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 202.4ARTICLE 11 202.5HOUSING POLICY 202.6    Section 1. Minnesota Statutes 2016, section 327C.01, is amended by adding a subdivision 202.7to read: 202.8     new text begin Subd. 13. new text end new text begin Class I manufactured home park. new text end new text begin A "class I manufactured home park" new text end 202.9 new text begin means a park that complies with the provisions of section 327C.16. new text end 202.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 202.11    Sec. 2. new text begin [327C.16] CLASS I MANUFACTURED HOME PARK. new text end 202.12     new text begin Subdivision 1. new text end new text begin Qualifications. new text end new text begin (a) To qualify as a class I manufactured home park, as new text end 202.13 new text begin defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as an employee new text end 202.14 new text begin of the manufactured home park, must satisfy 12 hours of qualifying education courses every new text end 202.15 new text begin three years, as prescribed in this subdivision. Park owners or on-site attendants may begin new text end 202.16 new text begin accumulating qualifying hours to qualify as a class I manufactured home park beginning in new text end 202.17 new text begin 2017. new text end 202.18 new text begin (b) The qualifying education courses required for classification under this subdivision new text end 202.19 new text begin must be continuing education courses approved by the Department of Labor and Industry new text end 202.20 new text begin or the Department of Commerce for: new text end 202.21 new text begin (1) continuing education in real estate; or new text end 202.22 new text begin (2) continuing education for residential contractors and manufactured home installers. new text end new text begin new text end 202.23 new text begin (c) The qualifying education courses must include: new text end 202.24 new text begin (1) two hours on fair housing, approved for real estate licensure or residential contractor new text end 202.25 new text begin licensure; new text end 202.26 new text begin (2) one hour on the Americans with Disabilities Act, approved for real estate licensure new text end 202.27 new text begin or residential contractor licensure; new text end 202.28 new text begin (3) four hours on legal compliance related to any of the following: landlord/tenant, new text end 202.29 new text begin licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B, new text end 202.30 new text begin and Minnesota Rules, chapter 1350 or 4630; new text end 203.1 new text begin (4) three hours of general education approved for real estate, residential contractors, or new text end 203.2 new text begin manufactured home installers; and new text end 203.3 new text begin (5) two hours of HUD-specific manufactured home installer courses as required under new text end 203.4 new text begin section 327B.041. new text end 203.5 new text begin (d) If the qualifying owner or employee attendant is no longer the person meeting the new text end 203.6 new text begin requirements under this subdivision, but did qualify during the current assessment year, new text end 203.7 new text begin then the manufactured home park shall still qualify for the class rate provided for class 4c new text end 203.8 new text begin property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item new text end 203.9 new text begin (iii). new text end 203.10     new text begin Subd. 2. new text end new text begin Proof of compliance. new text end new text begin (a) A park owner that has met the requirements of new text end 203.11 new text begin subdivision 1 shall provide an affidavit to the park owner's county assessor certifying that new text end 203.12 new text begin the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and new text end 203.13 new text begin that the park meets the definition of a class I manufactured home park as defined in this new text end 203.14 new text begin section, and is entitled to the property tax classification rate for class I manufactured home new text end 203.15 new text begin parks in section 273.13, subdivision 25. The park owner shall retain the original course new text end 203.16 new text begin completion certificates issued by the course sponsor under this section for three years and, new text end 203.17 new text begin upon written request for verification, provide these to the county assessor within 30 days. new text end 203.18 new text begin (b) A park owner must provide the county assessor written notice of any change in new text end 203.19 new text begin compliance status of the manufactured home park no later than December 15 of the new text end 203.20 new text begin assessment year. new text end 203.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 203.22    Sec. 3. Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read: 203.23    Subd. 4. Interim ordinance. (a) If a municipality is conducting studies or has authorized 203.24a study to be conducted or has held or has scheduled a hearing for the purpose of considering 203.25adoption or amendment of a comprehensive plan or official controls as defined in section 203.26462.352, subdivision 15 , or if new territory for which plans or controls have not been adopted 203.27is annexed to a municipality, the governing body of the municipality may adopt an interim 203.28ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning 203.29process and the health, safety and welfare of its citizens. The interim ordinance may regulate, 203.30restrict, or prohibit any use, development, or subdivision within the jurisdiction or a portion 203.31thereof for a period not to exceed one year from the date it is effective. 203.32(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities 203.33relating to livestock production, a public hearing must be held following a ten-day notice 204.1given by publication in a newspaper of general circulation in the municipality before the 204.2interim ordinance takes effect. 204.3 new text begin (c)(1) A statutory or home rule charter city may adopt an interim ordinance that regulates, new text end 204.4 new text begin restricts, or prohibits a housing proposal only if the ordinance is approved by majority vote new text end 204.5 new text begin of all members of the city council. new text end new text begin new text end 204.6 new text begin (2) Before adopting the interim ordinance, the city council must hold a public hearing new text end 204.7 new text begin after providing written notice to any person who has submitted a housing proposal, has a new text end 204.8 new text begin pending housing proposal, or has provided a written request to be notified of interim new text end 204.9 new text begin ordinances related to housing proposals. The written notice must be provided at least three new text end 204.10 new text begin business days before the public hearing. Notice also must be posted on the city's official new text end 204.11 new text begin Web site, if the city has an official Web site. new text end 204.12 new text begin (3) The date of the public hearing shall be the earlier of the next regularly scheduled new text end 204.13 new text begin city council meeting after the notice period or within ten days of the notice. new text end 204.14 new text begin (4) The activities proposed to be restricted by the proposed interim ordinance may not new text end 204.15 new text begin be undertaken before the public hearing. new text end 204.16 new text begin (5) For the purposes of this paragraph, "housing proposal" means a written request for new text end 204.17 new text begin city approval of a project intended primarily to provide residential dwellings, either single new text end 204.18 new text begin family or multi-family, and involves the subdivision or development of land or the new text end 204.19 new text begin demolition, construction, reconstruction, alteration, repair, or occupancy of residential new text end 204.20 new text begin dwellings. new text end 204.21(c) new text begin (d) new text end The period of an interim ordinance applicable to an area that is affected by a city's 204.22master plan for a municipal airport may be extended for such additional periods as the 204.23municipality may deem appropriate, not exceeding a total additional period of 18 months. 204.24In all other cases, no interim ordinance may halt, delay, or impede a subdivision that has 204.25been given preliminary approval, nor may any interim ordinance extend the time deadline 204.26for agency action set forth in section 15.99 with respect to any application filed prior to the 204.27effective date of the interim ordinance. The governing body of the municipality may extend 204.28the interim ordinance after a public hearing and written findings have been adopted based 204.29upon one or more of the conditions in clause (1), (2), or (3). The public hearing must be 204.30held at least 15 days but not more than 30 days before the expiration of the interim ordinance, 204.31and notice of the hearing must be published at least ten days before the hearing. The interim 204.32ordinance may be extended for the following conditions and durations, but, except as 204.33provided in clause (3), an interim ordinance may not be extended more than an additional 204.3418 months: 205.1(1) up to an additional 120 days following the receipt of the final approval or review by 205.2a federal, state, or metropolitan agency when the approval is required by law and the review 205.3or approval has not been completed and received by the municipality at least 30 days before 205.4the expiration of the interim ordinance; 205.5(2) up to an additional 120 days following the completion of any other process required 205.6by a state statute, federal law, or court order, when the process is not completed at least 30 205.7days before the expiration of the interim ordinance; or 205.8(3) up to an additional one year if the municipality has not adopted a comprehensive 205.9plan under this section at the time the interim ordinance is enacted. 205.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for interim ordinances proposed on or new text end 205.11 new text begin after August 1, 2017. new text end 205.12    Sec. 4. Minnesota Statutes 2016, section 462A.201, subdivision 2, is amended to read: 205.13    Subd. 2. Low-income housing. (a) The agency may use money from the housing trust 205.14fund account to provide loans or grants for: 205.15(1) projects for the development, construction, acquisition, preservation, and rehabilitation 205.16of low-income rental and limited equity cooperative housing units, including temporary 205.17and transitional housing; 205.18(2) the costs of operating rental housing, as determined by the agency, that are unique 205.19to the operation of low-income rental housing or supportive housing; and 205.20(3) rental assistance, either project-based or tenant-based new text begin ; and new text end 205.21 new text begin (4) projects to secure stable housing for families with children eligible for enrollment new text end 205.22 new text begin in a prekindergarten through grade 12 academic program new text end . 205.23For purposes of this section, "transitional housing" has the meaning given by the United 205.24States Department of Housing and Urban Development. Loans or grants for residential 205.25housing for migrant farmworkers may be made under this section. 205.26(b) The housing trust fund account must be used for the benefit of persons and families 205.27whose income, at the time of initial occupancy, does not exceed 60 percent of median income 205.28as determined by the United States Department of Housing and Urban Development for the 205.29metropolitan area. At least 75 percent of the funds in the housing trust fund account must 205.30be used for the benefit of persons and families whose income, at the time of initial occupancy, 205.31does not exceed 30 percent of the median family income for the metropolitan area as defined 205.32in section 473.121, subdivision 2. For purposes of this section, a household with a housing 206.1assistance voucher under Section 8 of the United States Housing Act of 1937, as amended, 206.2is deemed to meet the income requirements of this section. 206.3The median family income may be adjusted for families of five or more. 206.4(c) Rental assistance under this section must be provided by governmental units which 206.5administer housing assistance supplements or by for-profit or nonprofit organizations 206.6experienced in housing management. Rental assistance shall be limited to households whose 206.7income at the time of initial receipt of rental assistance does not exceed 60 percent of median 206.8income, as determined by the United States Department of Housing and Urban Development 206.9for the metropolitan area. Priority among comparable applications for tenant-based rental 206.10assistance will be given to proposals that will serve households whose income at the time 206.11of initial application for rental assistance does not exceed 30 percent of median income, as 206.12determined by the United States Department of Housing and Urban Development for the 206.13metropolitan area. Rental assistance must be terminated when it is determined that 30 percent 206.14of a household's monthly income for four consecutive months equals or exceeds the market 206.15rent for the unit in which the household resides plus utilities for which the tenant is 206.16responsible. Rental assistance may only be used for rental housing units that meet the housing 206.17maintenance code of the local unit of government in which the unit is located, if such a code 206.18has been adopted, or the housing quality standards adopted by the United States Department 206.19of Housing and Urban Development, if no local housing maintenance code has been adopted. 206.20(d) In making the loans or grants, the agency shall determine the terms and conditions 206.21of repayment and the appropriate security, if any, should repayment be required. To promote 206.22the geographic distribution of grants and loans, the agency may designate a portion of the 206.23grant or loan awards to be set aside for projects located in specified congressional districts 206.24or other geographical regions specified by the agency. The agency may adopt rules for 206.25awarding grants and loans under this subdivision. 206.26    Sec. 5. Minnesota Statutes 2016, section 462A.2035, is amended to read: 206.27462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM. 206.28    Subdivision 1. Establishment. The agency shall establish a manufactured home park 206.29redevelopment program for the purpose of making manufactured home park redevelopment 206.30grants or loans to cities, counties, or community action programs new text begin , nonprofit organizations, new text end 206.31 new text begin and cooperatives created under chapter 308A or 308B new text end . 206.32     new text begin Subd. 1a. new text end new text begin Individual assistance grants. new text end Cities, counties, and community action programs new text begin new text end 206.33 new text begin Eligible recipients new text end may use new text begin individual assistance new text end grants and loans under this program to: 207.1(1) provide current residents of manufactured home parks with buy-out assistance not 207.2to exceed $4,000 per home with preference given to older manufactured homes; new text begin and new text end 207.3(2) provide down-payment assistance for the purchase of new and preowned manufactured 207.4homes that comply with the current version of the State Building Code in effect at the time 207.5of the sale, not to exceed $10,000 per home; and new text begin . new text end 207.6(3) make improvements in manufactured home parks as requested by the grant recipient. 207.7     new text begin Subd. 1b. new text end new text begin Park infrastructure grants. new text end new text begin Eligible recipients may use park infrastructure new text end 207.8 new text begin grants under this program for: new text end 207.9 new text begin (1) improvements in manufactured home parks; and new text end new text begin new text end 207.10 new text begin (2) infrastructure, including storm shelters and community facilities. new text end 207.11    Subd. 2. Eligibility requirements. new text begin For individual assistance grants under subdivision new text end 207.12 new text begin 1a, new text end households assisted under this section must have an annual household income at or 207.13below 80 percent of the area median household income. Cities, counties, or community 207.14action programs receiving funds under the program must give preference to households at 207.15or below 50 percent of the area median household income. Participation in the program is 207.16voluntary and no park resident shall be required to participate. 207.17     new text begin Subd. 3. new text end new text begin Statewide program. new text end The agency shall attempt to make grants and loans in 207.18approximately equal amounts to applicants outside and within the metropolitan area. new text begin Grants new text end 207.19 new text begin and loans under this section shall be provided in a manner consistent with the agency's new text end 207.20 new text begin policies and purposes in section 462A.02. new text end 207.21     new text begin Subd. 4. new text end new text begin Infrastructure repair and replacement fund. new text end new text begin Each recipient receiving a grant new text end 207.22 new text begin under subdivision 1b shall provide from year to year, on a cumulative basis, for adequate new text end 207.23 new text begin reserve funds to cover the repair and replacement of the private infrastructure systems new text end 207.24 new text begin serving the community. new text end 207.25    Sec. 6. Minnesota Statutes 2016, section 462A.204, subdivision 8, is amended to read: 207.26    Subd. 8. School stability. (a) The agency in consultation with the Interagency Task 207.27Force new text begin Council new text end on Homelessness may establish a school stability project under the family 207.28homeless prevention and assistance program. The purpose of the project is to secure stable 207.29housing for families with school-age children who have moved frequently and for 207.30unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors 207.31who are leaving foster care or juvenile correctional facilities, or minors who meet the 208.1definition of a child in need of services or protection under section 260C.007, subdivision 208.26 , but for whom no court finding has been made pursuant to that statute. 208.3(b) The agency shall make grants to family homeless prevention and assistance projects 208.4in communities with a school or schools that have a significant degree of student mobility. 208.5(c) Each project must be designed to reduce school absenteeism; stabilize children in 208.6one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each 208.7project must include plans for the following: 208.8(1) targeting of families with children under age 12 who, in the last 12 months have 208.9either: changed schools or homes at least once or been absent from school at least 15 percent 208.10of the school year and who have either been evicted from their housing; new text begin who are eligible new text end 208.11 new text begin for a prekindergarten through grade 12 academic program and new text end are living in overcrowded 208.12conditions in their current housing; or are paying more than 50 percent of their income for 208.13rent; new text begin or who lack a fixed, regular, and adequate nighttime residence; new text end 208.14(2) targeting of unaccompanied youth in need of an alternative residential setting; 208.15(3) connecting families with the social services necessary to maintain the families' 208.16stability in their home new text begin , including but not limited to housing navigation, legal representation, new text end 208.17 new text begin and family outreach new text end ; and 208.18(4) one or more of the following: 208.19(i) provision of rental assistance for a specified period of time, which may exceed 24 208.20months; or 208.21(ii) development of permanent supportive housing or transitional housing new text begin provision of new text end 208.22 new text begin support and case management services to improve housing stability, including but not limited new text end 208.23 new text begin to housing navigation and family outreach new text end . 208.24(d) Notwithstanding subdivision 2, grants under this section may be used to acquire, 208.25rehabilitate, or construct transitional or permanent housing new text begin In selecting projects for funding new text end 208.26 new text begin under this subdivision, preference shall be given to organizations granted funding under new text end 208.27 new text begin section 462A.201, subdivision 2, paragraph (a), clause (4) new text end . 208.28(e) Each grantee under the project must include representatives of the local school district 208.29or targeted schools, or both, and of the local community correction agencies on its advisory 208.30committee new text begin No grantee under this subdivision is required to have an advisory committee as new text end 208.31 new text begin described in subdivision 6 new text end . 209.1    Sec. 7. new text begin [462A.39] WORKFORCE HOUSING DEVELOPMENT PROGRAM. new text end 209.2     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin The commissioner of Minnesota housing finance shall new text end 209.3 new text begin establish a workforce housing development program to award grants or deferred loans to new text end 209.4 new text begin eligible project areas to be used for qualified expenditures. Grants or deferred loans new text end 209.5 new text begin authorized under this section may be made without limitations relating to the maximum new text end 209.6 new text begin incomes of the renters. new text end 209.7     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the new text end 209.8 new text begin meanings given. new text end 209.9 new text begin (b) "Eligible project area" means a home rule charter or statutory city located outside new text end 209.10 new text begin of the metropolitan area as defined in section 473.121, subdivision 2, with a population new text end 209.11 new text begin exceeding 500; a community that has a combined population of 1,500 residents located new text end 209.12 new text begin within 15 miles of a home rule charter or statutory city located outside the metropolitan new text end 209.13 new text begin area as defined in section new text end new text begin 473.121, subdivision 2 new text end new text begin ; or an area served by a joint county-city new text end 209.14 new text begin economic development authority. new text end 209.15 new text begin (c) "Joint county-city economic development authority" means an economic development new text end 209.16 new text begin authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between new text end 209.17 new text begin a city and county and excluding those established by the county only. new text end 209.18 new text begin (d) "Market rate residential rental properties" means properties that are rented at market new text end 209.19 new text begin value, including new modular homes, new manufactured homes, and new manufactured new text end 209.20 new text begin homes on leased land or in a manufactured home park, and may include rental developments new text end 209.21 new text begin that have a portion of income-restricted units. new text end 209.22 new text begin (e) "Qualified expenditure" means expenditures for market rate residential rental new text end 209.23 new text begin properties including acquisition of property; construction of improvements; and provisions new text end 209.24 new text begin of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing new text end 209.25 new text begin costs. new text end 209.26     new text begin Subd. 3. new text end new text begin Application. new text end new text begin The commissioner shall develop forms and procedures for soliciting new text end 209.27 new text begin and reviewing application for grants or deferred loans under this section. At a minimum, a new text end 209.28 new text begin city must include in its application a resolution of its governing body certifying that the new text end 209.29 new text begin matching amount as required under this section is available and committed. new text end 209.30     new text begin Subd. 4. new text end new text begin Program requirements. new text end new text begin (a) The commissioner must not award a grant or new text end 209.31 new text begin deferred loans to an eligible project area under this section until the following determinations new text end 209.32 new text begin are made: new text end 210.1 new text begin (1) the average vacancy rate for rental housing located in the eligible project area, and new text end 210.2 new text begin in any other city located within 15 miles or less of the boundaries of the area, has been five new text end 210.3 new text begin percent or less for at least the prior two-year period; new text end 210.4 new text begin (2) one or more businesses located in the eligible project area, or within 25 miles of the new text end 210.5 new text begin area, that employs a minimum of 20 full-time equivalent employees in aggregate have new text end 210.6 new text begin provided a written statement to the eligible project area indicating that the lack of available new text end 210.7 new text begin rental housing has impeded their ability to recruit and hire employees; and new text end 210.8 new text begin (3) the eligible project area has certified that the grants or deferred loans will be used new text end 210.9 new text begin for qualified expenditures for the development of rental housing to serve employees of new text end 210.10 new text begin businesses located in the eligible project area or surrounding area. new text end 210.11 new text begin (b) Preference for grants or deferred loans awarded under this section shall be given to new text end 210.12 new text begin eligible project areas with less than 30,000 people. new text end 210.13 new text begin (c) Among comparable proposals, preference must be given to projects with a higher new text end 210.14 new text begin proportion of units that are not income-restricted. new text end 210.15     new text begin Subd. 5. new text end new text begin Allocation. new text end new text begin The amount of a grant or deferred loans may not exceed 25 percent new text end 210.16 new text begin of the rental housing development project cost. The commissioner shall not award a grant new text end 210.17 new text begin or deferred loans to a city without certification by the city that the amount of the grant or new text end 210.18 new text begin deferred loans shall be matched by a local unit of government, business, or nonprofit new text end 210.19 new text begin organization with $1 for every $2 provided in grant or deferred loans funds. new text end 210.20     new text begin Subd. 6. new text end new text begin Report. new text end new text begin Beginning January 15, 2018, the commissioner must annually submit new text end 210.21 new text begin a report to the chairs and ranking minority members of the senate and house of representatives new text end 210.22 new text begin committees having jurisdiction over taxes and workforce development specifying the projects new text end 210.23 new text begin that received grants or deferred loans under this section and the specific purposes for which new text end 210.24 new text begin the grant funds were used. new text end 210.25    Sec. 8. new text begin [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING new text end 210.26 new text begin DEVELOPMENT. new text end 210.27     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms have new text end 210.28 new text begin the meanings given to them. new text end 210.29 new text begin (b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency. new text end 210.30 new text begin (c) "Fund" means a local housing trust fund or a regional housing trust fund. new text end 210.31 new text begin (d) "Local government" means any statutory or home rule charter city or a county. new text end 211.1 new text begin (e) "Local housing trust fund" means a fund established by a local government with one new text end 211.2 new text begin or more dedicated sources of public revenue for housing. new text end 211.3 new text begin (f) "Regional housing trust fund" means a fund established and administered under a new text end 211.4 new text begin joint powers agreement entered into by two or more local governments with one or more new text end 211.5 new text begin dedicated sources of public revenue for housing. new text end 211.6     new text begin Subd. 2. new text end new text begin Creation and administration. new text end new text begin (a) A local government may establish a local new text end 211.7 new text begin housing trust fund by ordinance or participate in a joint powers agreement to establish a new text end 211.8 new text begin regional housing trust fund. new text end 211.9 new text begin (b) A local or regional housing trust fund may be, but is not required to be, administered new text end 211.10 new text begin through a nonprofit organization. If administered through a nonprofit organization, that new text end 211.11 new text begin organization shall encourage private charitable donations to the fund. new text end 211.12     new text begin Subd. 3. new text end new text begin Authorized expenditures. new text end new text begin Money in a local or regional housing trust fund may new text end 211.13 new text begin be used only to: new text end 211.14 new text begin (1) pay for administrative expenses, but not more than ten percent of the balance of the new text end 211.15 new text begin fund may be spent on administration; new text end 211.16 new text begin (2) make grants, loans, and loan guarantees for the development, rehabilitation, or new text end 211.17 new text begin financing of housing; new text end 211.18 new text begin (3) match other funds from federal, state, or private resources for housing projects; or new text end 211.19 new text begin (4) provide down payment assistance, rental assistance, and homebuyer counseling new text end 211.20 new text begin services. new text end 211.21     new text begin Subd. 4. new text end new text begin Funding. new text end new text begin (a) A local government may finance its local or regional housing new text end 211.22 new text begin trust fund with any money available to the local government, unless expressly prohibited new text end 211.23 new text begin by state law. Sources of these funds include, but are not limited to: new text end 211.24 new text begin (1) donations; new text end 211.25 new text begin (2) bond proceeds; new text end 211.26 new text begin (3) grants and loans from a state, federal, or private source; new text end 211.27 new text begin (4) appropriations by a local government to the fund; new text end 211.28 new text begin (5) investment earnings of the fund; and new text end 211.29 new text begin (6) housing and redevelopment authority levies. new text end 212.1 new text begin (b) The local government may alter a source of funding for the local or regional housing new text end 212.2 new text begin trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts new text end 212.3 new text begin or expenditures authorized by the fund in its budget. new text end 212.4     new text begin Subd. 5. new text end new text begin Reports. new text end new text begin A local or regional housing trust fund established under this section new text end 212.5 new text begin must report annually to the local government that created the fund. The local government new text end 212.6 new text begin or governments must post this report on its public Web site. new text end 212.7     new text begin Subd. 6. new text end new text begin Effect of legislation on existing local or regional housing trust funds. new text end new text begin A new text end 212.8 new text begin local or regional housing trust fund existing on the effective date of this section is not new text end 212.9 new text begin required to alter the existing terms of its governing documents or take any additional new text end 212.10 new text begin authorizing actions required by subdivision 2. new text end 212.11    Sec. 9. new text begin MINNESOTA HOUSING FINANCE AGENCY REPORT. new text end 212.12 new text begin By September 30, 2017, and September 30, 2018, the Housing Finance Agency shall new text end 212.13 new text begin provide to the chairs and ranking minority members of the house of representatives and new text end 212.14 new text begin senate committees with jurisdiction over the agency a draft and final version of its affordable new text end 212.15 new text begin housing plan before and after it has been submitted to the agency board for consideration. new text end 212.16 new text begin The affordable housing plan must include information on the availability of funds within new text end 212.17 new text begin the Housing Affordability Fund, or Pool 3, the anticipated uses of those funds, and the prior new text end 212.18 new text begin year's actual uses of those funds. new text end 212.19ARTICLE 12 212.20MISCELLANEOUS POLICY 212.21    Section 1. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special 212.22Session chapter 1, article 7, section 1, and Laws 2016, chapter 189, article 7, section 42, is 212.23amended to read: 212.24    Sec. 13. EFFECTIVE DATE. 212.25    Sections 1 to 3 and 6 to 11 are effective July 1, 2017 new text begin 2020 new text end . Sections 4, 5, and 12 are 212.26effective July 1, 2014. 212.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. Until new text end 212.28 new text begin July 1, 2020, any employee, employer, employee or employer organization, exclusive new text end 212.29 new text begin representative, or any other person or organization aggrieved by an unfair labor practice as new text end 212.30 new text begin defined in Minnesota Statutes, section 179A.13, may bring an action for injunctive relief new text end 212.31 new text begin and for damages caused by the unfair labor practice in the district court of the county in new text end 212.32 new text begin which the practice is alleged to have occurred. new text end 213.1    Sec. 2. new text begin AGENCY ACTIVITY AND EXPENDITURE REPORTS. new text end 213.2 new text begin (a) The commissioners of employment and economic development, housing finance, new text end 213.3 new text begin labor and industry, and commerce, as well as the Public Utilities Commission, must each new text end 213.4 new text begin submit a report, as described in paragraph (b), to the chairs and ranking minority members new text end 213.5 new text begin of the house of representatives and senate committees and divisions with jurisdiction over new text end 213.6 new text begin their budget appropriations by October 15, 2018. new text end 213.7 new text begin (b) The reports must include: new text end 213.8 new text begin (1) the number of employees in each operational division and descriptions of the work new text end 213.9 new text begin of each employee; new text end 213.10 new text begin (2) a description of the responsibilities that fall under each operational division; new text end 213.11 new text begin (3) a detailed list of the source of all revenue, including any fees, taxes, or other revenues new text end 213.12 new text begin collected, as well as details of base budgets, including all prior appropriation riders; new text end 213.13 new text begin (4) how much of each budgetary division appropriation passes through as grants, as well new text end 213.14 new text begin as the costs related to each grant program; new text end 213.15 new text begin (5) a detailed description of the costs related to each budgetary division, as well as the new text end 213.16 new text begin statutory authority under which those costs are allocated; and new text end 213.17 new text begin (6) the statutory authority for all expenditures. new text end " 213.18Delete the title and insert: 213.19"A bill for an act 213.20relating to state government; appropriating money for jobs and economic 213.21development; appropriating money for the Department of Employment and 213.22Economic Development, Housing Finance Agency, Department of Labor and 213.23Industry, Bureau of Mediation Services, Public Employment Relations Board, 213.24Workers' Compensation Court of Appeals, Department of Commerce, Public 213.25Utilities Commission, and Public Facilities Authority; making policy and 213.26housekeeping changes to labor and industry provisions; making policy changes to 213.27employment, economic development, and workforce development provisions; 213.28making policy changes to the Department of Iron Range Resources and 213.29Rehabilitation; making changes related to workers' compensation; making changes 213.30to commerce, energy, and telecommunications policy; making other housing and 213.31miscellaneous policy changes; modifying fees; requiring reports; authorizing 213.32rulemaking;amending Minnesota Statutes 2016, sections 3.732, subdivision 1; 213.333.736, subdivision 3; 3.8851, subdivision 1; 15.01; 15.38, subdivision 7; 15A.0815, 213.34subdivision 3; 16B.323; 43A.02, subdivision 22; 45.0135, subdivision 6; 46.131, 213.35subdivision 7, by adding a subdivision; 65B.84, subdivision 1; 80A.61; 80A.65, 213.36subdivision 2; 85.0146, subdivision 1; 116C.779, subdivision 1; 116C.7792; 213.37116D.04, subdivision 1a; 116J.423, subdivision 2; 116J.424; 116J.8731, subdivision 213.382, by adding a subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116J.994, 213.39subdivisions 3, 5, 7; 116L.17, subdivision 1; 116L.665; 116M.14, subdivision 4; 213.40116M.17, subdivision 4; 116M.18, subdivisions 1a, 4, 4a, 8; 175.45; 176.135, by 213.41adding a subdivision; 176.1362, subdivisions 1, 2; 176.275, subdivision 1; 176.285; 214.1176.361, subdivisions 2, 3; 176.521, by adding a subdivision; 176.541, subdivisions 214.21, 8, by adding a subdivision; 176.611, subdivision 2; 216B.161, subdivision 1; 214.3216B.164, subdivisions 2, 5, 9, by adding a subdivision; 216B.1691, subdivision 214.42f; 216B.1694, subdivisions 1, 3; 216B.241, subdivisions 1b, 1c, 1d, 2, 5, 5d, 7; 214.5216B.2422, subdivisions 2, 4; 216B.2424, by adding a subdivision; 216B.62, 214.6subdivision 3b; 216C.05, subdivision 2; 216C.435, by adding a subdivision; 214.7216H.03, subdivisions 3, 4, 7; 237.162, subdivisions 2, 4, 9, by adding subdivisions; 214.8237.163, subdivisions 2, 4, 6, 7, by adding subdivisions; 276A.01, subdivisions 214.98, 17; 276A.06, subdivision 8; 282.38, subdivisions 1, 3; 297I.11, subdivision 2; 214.10298.001, subdivision 8, by adding a subdivision; 298.018, subdivision 1; 298.17; 214.11298.22, subdivisions 1, 1a, 5a, 6, 10, 11, by adding subdivisions; 298.221; 298.2211, 214.12subdivisions 3, 6; 298.2212; 298.223, subdivisions 1, 2; 298.227; 298.27; 298.28, 214.13subdivisions 7, 7a, 9c, 9d, 11; 298.292, subdivision 2; 298.296; 298.2961; 298.297; 214.14298.46, subdivisions 2, 5, 6; 325J.06; 326B.092, subdivision 7; 326B.153, 214.15subdivision 1; 326B.37, by adding subdivisions; 326B.435, subdivision 2; 326B.50, 214.16subdivision 3, by adding subdivisions; 326B.55, subdivisions 2, 4; 326B.89, 214.17subdivisions 1, 5; 327C.01, by adding a subdivision; 345.42, by adding a 214.18subdivision; 345.49; 462.355, subdivision 4; 462A.201, subdivision 2; 462A.2035; 214.19462A.204, subdivision 8; 466.03, subdivision 6c; 469.310, subdivision 9; 474A.02, 214.20subdivision 21; Laws 2010, chapter 389, article 5, section 7; Laws 2014, chapter 214.21211, section 13, as amended; Laws 2014, chapter 312, article 2, section 14, as 214.22amended; Laws 2015, First Special Session chapter 1, article 1, sections 2, 214.23subdivision 6; 5, subdivision 2; Laws 2016, chapter 189, article 7, section 46; Laws 214.242017, chapter 68, article 1, section 1; proposing coding for new law in Minnesota 214.25Statutes, chapters 72A; 116J; 175; 176; 216C; 239; 326B; 327C; 462A; 462C; 214.26471; repealing Minnesota Statutes 2016, sections 3.8852; 46.131, subdivision 5; 214.27116C.779, subdivision 3; 116J.549; 174.187; 176.541, subdivision 7; 216B.8109; 214.28216B.811; 216B.812; 216B.813; 216B.815; 216C.411; 216C.412; 216C.413; 214.29216C.414; 216C.415; 216C.416; 298.22, subdivision 8; 298.2213; 298.298; 214.30326B.89, subdivision 14; Laws 2013, chapter 85, article 6, section 11; Minnesota 214.31Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; 4355.0500." 215.1 We request the adoption of this report and repassage of the bill. 215.2 Senate Conferees: 215.3 ..... ..... 215.4 Jeremy R. Miller Gary H. Dahms 215.5 ..... ..... 215.6 David J. Osmek Paul Anderson 215.7 ..... 215.8 Bobby Joe Champion 215.9 House Conferees: 215.10 ..... ..... 215.11 Pat Garofalo Jim Newberger 215.12 ..... ..... 215.13 Marion O'Neill Joe Hoppe 215.14 ..... 215.15 Tim Mahoney