1.1 	A bill for an act
1.2 	relating to jobs; appropriating money for the Departments of Employment and 
1.3 	Economic Development and Labor and Industry; the Bureau of Mediation Services; 
1.4 	Public Employment Relations Board and Workers' Compensation Court of Appeals; 
1.5 	making policy and technical changes; modifying fees; requiring reports;amending 
1.6 	Minnesota Statutes 2016, sections 116J.395, subdivision 7; 116J.8731, subdivision 
1.7 	2, by adding a subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116L.17, subdivision 
1.8 	1; 116L.665; 116M.14, subdivision 4; 116M.17, subdivision 4; 116M.18, 
1.9 	subdivisions 1a, 4, 4a, 8; 175.45; 326B.092, subdivision 7; 326B.153, subdivision 
1.10 	1; 326B.37, by adding subdivisions; 326B.435, subdivision 2; 326B.50, subdivision 
1.11 	3, by adding subdivisions; 326B.55, subdivisions 2, 4; 326B.89, subdivisions 1, 
1.12 	5; Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2; 
1.13 	Laws 2016, chapter 189, article 7, section 2, subdivision 2; proposing coding for 
1.14 	new law in Minnesota Statutes, chapters 175; 326B; repealing Minnesota Statutes 
1.15 	2016, section 326B.89, subdivision 14; Minnesota Rules, parts 4355.0100; 
1.16 	4355.0200; 4355.0300; 4355.0400; 4355.0500.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	APPROPRIATIONS

1.20	Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
 	
1.21 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.22 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.23 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.24 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
1.25 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
1.26 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
1.27 	is fiscal years 2018 and 2019.

1.28				APPROPRIATIONS
	
2.1				Available for the Year
	
2.2				Ending June 30
	
2.3					2018
		2019

2.4
2.5	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.6	Subdivision 1.Total Appropriation
 	$
	128,246,000
	$
	125,175,000

2.7	Appropriations by Fund
	
2.8		2018
	2019
	
2.9	General
	93,004,000
	90,680,000
	
2.10	Remediation
	700,000
	700,000
	
2.11
2.12	Workforce 
Development
	34,542,000
	33,795,000
	
2.13 	The amounts that may be spent for each 
2.14 	purpose are specified in the following 
2.15 	subdivisions.

2.16	Subd. 2.Business and Community Development

2.17	Appropriations by Fund
	
2.18	General
	44,164,000
	41,890,000
	
2.19	Remediation
	700,000
	700,000
	
2.20
2.21	Workforce 
Development
	900,000
	900,000
	
2.22 	(a) $12,500,000 each year is for the Minnesota 
2.23 	investment fund under Minnesota Statutes, 
2.24 	section 116J.8731. Of this amount, up to three 
2.25 	percent is for administration and monitoring 
2.26 	of the program. Of the amount appropriated 
2.27 	in fiscal year 2018, $4,000,000 is for a loan 
2.28 	to construct  and equip a wholesale electronic 
2.29 	component distribution center investing a 
2.30 	minimum of $200,000,000 and constructing 
2.31 	a facility at least 700,000 square feet in size. 
2.32 	Loan funds may be used for purchases of 
2.33 	materials, supplies, and equipment for the 
2.34 	construction of the facility and are available 
2.35 	from July 1, 2017, to June 30, 2021. The 
3.1 	commissioner of employment and economic 
3.2 	development shall forgive the loan after 
3.3 	verification that the project has satisfied 
3.4 	performance goals and contractual obligations 
3.5 	as required under Minnesota Statutes, section 
3.6 	116J.8731. This appropriation is available until 
3.7 	spent. The base for this program is 
3.8 	$13,500,000 in fiscal year 2020 and 
3.9 	$13,500,000 in fiscal year 2021.
3.10 	(b) $8,000,000 each year is for the Minnesota 
3.11 	job creation fund under Minnesota Statutes, 
3.12 	section 116J.8748. Of this amount, up to three 
3.13 	percent is for administration and monitoring 
3.14 	of the program. This appropriation is available 
3.15 	until spent. The base for this program is 
3.16 	$8,000,000 in fiscal year 2020 and $8,000,000 
3.17 	in fiscal year 2021.
3.18 	(c) $1,500,000 each year is for the 
3.19 	redevelopment program under Minnesota 
3.20 	Statutes, section 116J.571. The base for this 
3.21 	program is $2,000,000 in fiscal year 2020 and 
3.22 	$2,000,000 in fiscal year 2021.
3.23 	(d) $3,000,000 each year is for the workforce 
3.24 	housing grant program in Minnesota Statutes, 
3.25 	section 116J.549. Of this amount, up to five 
3.26 	percent is for administration and monitoring 
3.27 	of the program. This appropriation is available 
3.28 	until spent.
3.29 	(e) $500,000 each year is for the Minnesota 
3.30 	emerging entrepreneur loan program under 
3.31 	Minnesota Statutes, section 116M.18. Funds 
3.32 	available under this paragraph are for transfer 
3.33 	into the emerging entrepreneur program 
3.34 	special revenue fund account created under 
3.35 	Minnesota Statutes, chapter 116M, and are 
4.1 	available until spent. Of this amount, up to 
4.2 	five percent is for administration and 
4.3 	monitoring of the program. The base for this 
4.4 	appropriation is $1,000,000 in fiscal year 2020 
4.5 	and $1,000,000 in fiscal year 2021.
4.6 	(f) $900,000 each year from the workforce 
4.7 	development fund is for the job training 
4.8 	incentive program under Minnesota Statutes, 
4.9 	section 116L.42. Of this amount, up to five 
4.10 	percent is for administration and monitoring 
4.11 	of the program.
4.12 	(g) $1,300,000 each year is for the greater 
4.13 	Minnesota business development public 
4.14 	infrastructure grant program under Minnesota 
4.15 	Statutes, section 116J.431. Of this amount, 
4.16 	$800,000 each year is for a onetime grant to 
4.17 	the city of Thief River Falls to support utility 
4.18 	extensions, roads, and other public 
4.19 	improvements related to the construction of a 
4.20 	wholesale electronic component distribution 
4.21 	center at least 700,000 square feet in size and 
4.22 	investing a minimum of $200,000,000. 
4.23 	Notwithstanding Minnesota Statutes, section 
4.24 	116J.431, a local match is not required for the 
4.25 	grant. Grant funds provided to the city of Thief 
4.26 	River Falls under this paragraph are available 
4.27 	from July 1, 2017, to June 30, 2021. Except 
4.28 	as otherwise specified in this paragraph, this 
4.29 	appropriation is available until spent.
4.30 	(h) $139,000 each year is for the Center for 
4.31 	Rural Policy and Development.
4.32 	(i) $1,272,000 each year is for contaminated 
4.33 	site cleanup and development grants under 
4.34 	Minnesota Statutes, sections 116J.551 to 
5.1 	116J.558. This appropriation is available until 
5.2 	spent.
5.3 	(j) $700,000 each year is from the remediation 
5.4 	fund for contaminated site cleanup and 
5.5 	development grants under Minnesota Statutes, 
5.6 	sections 116J.551 to 116J.558. This 
5.7 	appropriation is available until spent.
5.8 	(k) $1,425,000 each year is for the business 
5.9 	development competitive grant program. Of 
5.10 	this amount, up to five percent is for 
5.11 	administration and monitoring of the business 
5.12 	development competitive grant program. All 
5.13 	grant awards shall be for two consecutive 
5.14 	years. Grants shall be awarded in the first year.
5.15 	(l) $4,848,000 in fiscal year 2018 and 
5.16 	$4,849,000 in fiscal year 2019 is for the 
5.17 	Minnesota job skills partnership program 
5.18 	under Minnesota Statutes, sections 116L.01 
5.19 	to 116L.17. If the appropriation for either year 
5.20 	is insufficient, the appropriation for the other 
5.21 	year is available. This appropriation is 
5.22 	available until spent. The base amount for this 
5.23 	program is $5,195,000 in fiscal year 2020 and 
5.24 	$5,195,000 in fiscal year 2021.
5.25 	(m) $25,000 each year is for the administration 
5.26 	of state aid for the Destination Medical Center 
5.27 	under Minnesota Statutes, sections 469.40 to 
5.28 	469.47.
5.29 	(n) $750,000 each year is for a grant to the 
5.30 	Neighborhood Development Center for small 
5.31 	business programs, including, but not limited 
5.32 	to:
5.33 	(1) training, lending, and business services;
6.1 	(2) model outreach and training in greater 
6.2 	Minnesota; and
6.3 	(3) development of new business incubators.
6.4 	This is a onetime appropriation.
6.5 	(o) $1,175,000 each year is for a grant to the 
6.6 	Metropolitan Economic Development 
6.7 	Association (MEDA) for statewide business 
6.8 	development and assistance services, including 
6.9 	services to entrepreneurs with businesses that 
6.10 	have the potential to create job opportunities 
6.11 	for unemployed and underemployed people, 
6.12 	with an emphasis on minority-owned 
6.13 	businesses. This is a onetime appropriation.
6.14 	(p) $125,000 each year is for a grant to the 
6.15 	White Earth Nation for the White Earth Nation 
6.16 	Integrated Business Development System to 
6.17 	provide business assistance with workforce 
6.18 	development, outreach, technical assistance, 
6.19 	infrastructure and operational support, 
6.20 	financing, and other business development 
6.21 	activities. This is a onetime appropriation.
6.22 	(q) $875,000 each year is for a grant to 
6.23 	Enterprise Minnesota, Inc. for the small 
6.24 	business growth acceleration program under 
6.25 	Minnesota Statutes, section 116O.115. This 
6.26 	is a onetime appropriation.
6.27 	(r) $12,000 each year is from the general fund 
6.28 	for a grant to the Upper Minnesota Film 
6.29 	Office.
6.30 	(s) $325,000 each year is from the general 
6.31 	fund for the Minnesota Film and TV Board. 
6.32 	The appropriation in each year is available 
6.33 	only upon receipt by the board of $1 in 
6.34 	matching contributions of money or in-kind 
7.1 	contributions from nonstate sources for every 
7.2 	$3 provided by this appropriation, except that 
7.3 	each year up to $50,000 is available on July 
7.4 	1 even if the required matching contribution 
7.5 	has not been received by that date.
7.6 	(t) $500,000 each year is from the general fund 
7.7 	for a grant to the Minnesota Film and TV 
7.8 	Board for the film production jobs program 
7.9 	under Minnesota Statutes, section 116U.26. 
7.10 	This appropriation is available until spent.
7.11 	(u) $275,000 in fiscal year 2018 is from the 
7.12 	general fund to the commissioner of 
7.13 	employment and economic development for 
7.14 	a grant to Community and Economic 
7.15 	Development Associates (CEDA) for an 
7.16 	economic development study and analysis of 
7.17 	the effects of current and projected economic 
7.18 	growth in southeast Minnesota. CEDA shall 
7.19 	report on the findings and recommendations 
7.20 	of the study to the committees of the house of 
7.21 	representatives and senate with jurisdiction 
7.22 	over economic development and workforce 
7.23 	issues by February 15, 2019. All results and 
7.24 	information gathered from the study shall be 
7.25 	made available for use by cities in southeast 
7.26 	Minnesota by March 15, 2019. This is a 
7.27 	onetime appropriation and is available until 
7.28 	June 30, 2020.
7.29 	(v) $2,000,000 the first year is for a grant to 
7.30 	Pillsbury United Communities for construction 
7.31 	and renovation of a building in north 
7.32 	Minneapolis for use as the "North Market" 
7.33 	grocery store and wellness center, focused on 
7.34 	offering healthy food, increasing health care 
7.35 	access, and providing job creation and 
8.1 	economic opportunities in one place for 
8.2 	children and families living in the area. To the 
8.3 	extent possible, Pillsbury United Communities 
8.4 	shall employ individuals who reside within a 
8.5 	five mile radius of the grocery store and 
8.6 	wellness center. This appropriation is not 
8.7 	available until at least an equal amount of 
8.8 	money is committed from nonstate sources. 
8.9 	This is a onetime appropriation and is 
8.10 	available until the project is completed or 
8.11 	abandoned, subject to Minnesota Statutes, 
8.12 	section 16A.642.

8.13	Subd. 3.Broadband Development
 		10,250,000
		10,250,000
	
8.14 	(a) $250,000 each year is for the Broadband 
8.15 	Development Office.
8.16 	(b) $10,000,000 each year is for deposit in the 
8.17 	border-to-border broadband fund account 
8.18 	created under Minnesota Statutes, section 
8.19 	116J.396, and may be used for the purposes 
8.20 	provided in Minnesota Statutes, section 
8.21 	116J.395. This is a onetime appropriation. 
8.22 	This appropriation is available until spent. Of 
8.23 	this appropriation, up to three percent is for 
8.24 	costs incurred by the commissioner to 
8.25 	administer Minnesota Statutes, section 
8.26 	116J.395. Administrative costs may include 
8.27 	the following activities related to measuring 
8.28 	progress toward the state's broadband goals 
8.29 	established in Minnesota Statutes, section 
8.30 	237.012:
8.31 	(1) collecting broadband deployment data from 
8.32 	Minnesota providers, verifying its accuracy 
8.33 	through on-the-ground testing, and creating 
8.34 	state and county maps available to the public 
8.35 	showing the availability of broadband service 
9.1 	at various upload and download speeds 
9.2 	throughout Minnesota;
9.3 	(2) analyzing the deployment data collected 
9.4 	to help inform future investments in broadband 
9.5 	infrastructure; and
9.6 	(3) conducting business and residential surveys 
9.7 	that measure broadband adoption and use in 
9.8 	the state.
9.9 	Data provided by a broadband provider under 
9.10 	this paragraph is nonpublic data under 
9.11 	Minnesota Statutes, section 13.02, subdivision 
9.12 	9. Maps produced under this paragraph are 
9.13 	public data under Minnesota Statutes, section 
9.14 	13.03.

9.15	Subd. 4.Minnesota Trade Office
 		2,292,000
		2,292,000
	
9.16 	(a) $300,000 each year is for the STEP grants 
9.17 	in Minnesota Statutes, section 116J.979.
9.18 	(b) $180,000 each year is for the Invest 
9.19 	Minnesota Marketing Initiative in Minnesota 
9.20 	Statutes, section 116J.9781.
9.21 	(c) $270,000 each year is for the Minnesota 
9.22 	Trade Offices under Minnesota Statutes, 
9.23 	section 116J.978.
9.24 	(d) $50,000 each year is for the trade policy 
9.25 	advisory group under Minnesota Statutes, 
9.26 	section 116J.9661.

9.27	Subd. 5.Workforce Development

9.28	Appropriations by Fund
	
9.29	General
	5,939,000
	5,889,000
	
9.30
9.31	Workforce 
Development
	23,295,000
	22,548,000
	
9.32 	(a) $1,539,000 each year from the general fund 
9.33 	and $3,104,000 each year from the workforce 
10.1 	development fund are for the pathways to 
10.2 	prosperity competitive grant program. Of this 
10.3 	amount, up to five percent is for administration 
10.4 	and monitoring of the program. The base 
10.5 	amount for this program is $5,039,000 from 
10.6 	the general fund and $3,104,000 from the 
10.7 	workforce development fund in fiscal year 
10.8 	2020 and fiscal year 2021.
10.9 	(b) $4,053,000 each year is from the 
10.10 	workforce development fund for the 
10.11 	Minnesota youth program under Minnesota 
10.12 	Statutes, sections 116L.56 and 116L.561.
10.13 	(c) $1,001,000 each year is from the workforce 
10.14 	development fund for the youthbuild program 
10.15 	under Minnesota Statutes, sections 116L.361 
10.16 	to 116L.366.
10.17 	(d) $500,000 each year is from the general 
10.18 	fund and $3,348,000 each year is from the 
10.19 	workforce development fund for the youth at 
10.20 	work competitive grant program under 
10.21 	Minnesota Statutes, section 116L.562. Of this 
10.22 	amount, up to five percent is for administration 
10.23 	and monitoring of the youth workforce 
10.24 	development competitive grant program. All 
10.25 	grant awards shall be for two consecutive 
10.26 	years. Grants shall be awarded in the first year. 
10.27 	The base amount for this program is 
10.28 	$3,348,000 in fiscal year 2020 and $3,348,000 
10.29 	in fiscal year 2021 from the workforce 
10.30 	development fund, and $750,000 in fiscal year 
10.31 	2020 and $750,000 in fiscal year 2021 from 
10.32 	the general fund.
10.33 	(e) $500,000 each year from the general fund 
10.34 	and $500,000 each year from the workforce 
10.35 	development fund are for rural career 
11.1 	counseling coordinators in the workforce 
11.2 	service areas and for the purposes specified 
11.3 	in Minnesota Statutes, section 116L.667. Of 
11.4 	these amounts, up to five percent is for 
11.5 	administration and monitoring of the program.
11.6 	(f) $250,000 each year is for the higher 
11.7 	education career advising program. Of this 
11.8 	amount, up to five percent is for administration 
11.9 	and monitoring of the program.
11.10 	(g) $500,000 each year is for a competitive 
11.11 	grant program for grants to organizations 
11.12 	providing services to relieve economic 
11.13 	disparities in the Southeast Asian community 
11.14 	through workforce recruitment, development, 
11.15 	job creation, assistance of smaller 
11.16 	organizations to increase capacity, and 
11.17 	outreach. Of this amount, up to five percent 
11.18 	is for administration and monitoring of the 
11.19 	program.
11.20 	(h) $750,000 each year is for a competitive 
11.21 	grant program to provide grants to 
11.22 	organizations that provide support services for 
11.23 	individuals, such as job training, employment 
11.24 	preparation, internships, job assistance to 
11.25 	fathers, financial literacy, academic and 
11.26 	behavioral interventions for low-performing 
11.27 	students, and youth intervention. Grants made 
11.28 	under this section must focus on low-income 
11.29 	communities, young adults from families with 
11.30 	a history of intergenerational poverty, and 
11.31 	communities of color. Of this amount, up to 
11.32 	five percent is for administration and 
11.33 	monitoring of the program. The base amount 
11.34 	for this program is $1,000,000 in fiscal year 
11.35 	2020 and $1,000,000 in fiscal year 2021.
12.1 	(i) $500,000 each year is for the high-wage, 
12.2 	high-demand, nontraditional jobs grant 
12.3 	program under Minnesota Statutes, section 
12.4 	116L.99. Of this amount, up to five percent is 
12.5 	for administration and monitoring of the 
12.6 	program. The base amount for this program 
12.7 	is $750,000 in fiscal year 2020 and $750,000 
12.8 	in fiscal year 2021.
12.9 	(j) $450,000 each year is from the workforce 
12.10 	development fund for a grant to Minnesota 
12.11 	Diversified Industries, Inc., to provide 
12.12 	progressive development and employment 
12.13 	opportunities for people with disabilities. This 
12.14 	is a onetime appropriation.
12.15 	(k) $500,000 each year is from the workforce 
12.16 	development fund for the Opportunities 
12.17 	Industrialization Center programs. This 
12.18 	appropriation shall be divided equally among 
12.19 	the eligible centers.
12.20 	(l) $750,000 each year is from the workforce 
12.21 	development fund for a grant to the Minnesota 
12.22 	Alliance of Boys and Girls Clubs to administer 
12.23 	a statewide project of youth job skills 
12.24 	development. This project, which may have 
12.25 	career guidance components, including health 
12.26 	and life skills, is to encourage, train, and assist 
12.27 	youth in job-seeking skills, workplace 
12.28 	orientation, and job-site knowledge through 
12.29 	coaching. This grant requires a 25 percent 
12.30 	match from nonstate resources. This is a 
12.31 	onetime appropriation.
12.32 	(m) $250,000 each year is from the workforce 
12.33 	development fund for a grant to YWCA St. 
12.34 	Paul to provide job training services and 
12.35 	workforce development programs and 
13.1 	services, including job skills training and 
13.2 	counseling. This is a onetime appropriation.
13.3 	(n) $375,000 each year is from the workforce 
13.4 	development fund for a grant to the YWCA 
13.5 	of Minneapolis to provide economically 
13.6 	challenged individuals the job skills training, 
13.7 	career counseling, and job placement 
13.8 	assistance necessary to secure a child 
13.9 	development associate credential and to have 
13.10 	a career path in early childhood education. 
13.11 	This is a onetime appropriation.
13.12 	(o) $1,000,000 each year is from the 
13.13 	workforce development fund for a grant to 
13.14 	EMERGE Community Development, in 
13.15 	collaboration with community partners, for 
13.16 	services targeting Minnesota communities 
13.17 	with the highest concentrations of African and 
13.18 	African-American joblessness, based on the 
13.19 	most recent census tract data, to provide 
13.20 	employment readiness training, credentialed 
13.21 	training placement, job placement and 
13.22 	retention services, supportive services for 
13.23 	hard-to-employ individuals, and a general 
13.24 	education development fast track and adult 
13.25 	diploma program. This is a onetime 
13.26 	appropriation.
13.27 	(p) $1,000,000 each year is from the 
13.28 	workforce development fund for a grant to the 
13.29 	Minneapolis Foundation for a strategic 
13.30 	intervention program designed to target and 
13.31 	connect program participants to meaningful, 
13.32 	sustainable living-wage employment. This is 
13.33 	a onetime appropriation.
13.34 	(q) $1,297,000 in fiscal year 2018 and 
13.35 	$800,000 in fiscal year 2019 are from the 
14.1 	workforce development fund for performance 
14.2 	grants under Minnesota Statutes, section 
14.3 	116J.8747, to Twin Cities R!SE to provide 
14.4 	training to hard-to-train individuals. Of the 
14.5 	amounts appropriated, $800,000 each year is 
14.6 	for a grant to Twin Cities R!SE, in 
14.7 	collaboration with Metro Transit and Hennepin 
14.8 	Technical College for the Metro Transit 
14.9 	technician training program. This is a onetime 
14.10 	appropriation and is available until June 30, 
14.11 	2020.
14.12 	(r) $750,000 each year is from the workforce 
14.13 	development fund for a grant to Latino 
14.14 	Communities United in Service (CLUES) to 
14.15 	expand culturally tailored programs that 
14.16 	address employment and education skill gaps 
14.17 	for working parents and underserved youth by 
14.18 	providing new job skills training to stimulate 
14.19 	higher wages for low-income people, family 
14.20 	support systems designed to reduce 
14.21 	intergenerational poverty, and youth 
14.22 	programming to promote educational 
14.23 	advancement and career pathways. At least 
14.24 	50 percent of this amount must be used for 
14.25 	programming targeted at greater Minnesota. 
14.26 	This is a onetime appropriation.
14.27 	(s) $250,000 each year is for transfer to the 
14.28 	Department of Education for a grant to the 
14.29 	American Indian Opportunities and 
14.30 	Industrialization Center, in collaboration with 
14.31 	the Northwest Indian Community 
14.32 	Development Center, to reduce academic 
14.33 	disparities for American Indian students and 
14.34 	adults. This is a onetime appropriation. The 
14.35 	grant funds may be used to provide:
15.1 	(1) student tutoring and testing support 
15.2 	services;
15.3 	(2) training in information technology;
15.4 	(3) assistance in obtaining a GED;
15.5 	(4) remedial training leading to enrollment in 
15.6 	a postsecondary higher education institution;
15.7 	(5) real-time work experience in information 
15.8 	technology fields; and
15.9 	(6) contextualized adult basic education.
15.10 	After notification to the legislature, the 
15.11 	commissioner may transfer this appropriation 
15.12 	to the commissioner of education.
15.13 	(t) $600,000 each year is from the workforce 
15.14 	development fund for a grant to Ujamaa Place 
15.15 	for job training, employment preparation, 
15.16 	internships, education, training in the 
15.17 	construction trades, housing, and 
15.18 	organizational capacity-building. This is a 
15.19 	onetime appropriation.
15.20 	(u) $500,000 each year from the workforce 
15.21 	development fund is for a grant to Resource, 
15.22 	Inc. to provide low-income individuals career 
15.23 	education and job skills training that are fully 
15.24 	integrated with chemical and mental health 
15.25 	services. This is a onetime appropriation.
15.26 	(v) $1,100,000 each year from the workforce 
15.27 	development fund is for a grant to the 
15.28 	Minnesota High Tech Association to support 
15.29 	SciTechsperience, a program that supports 
15.30 	science, technology, engineering, and math 
15.31 	(STEM) internship opportunities for two- and 
15.32 	four-year college students and graduate 
15.33 	students in their field of study. The internship 
16.1 	opportunities must match students with paid 
16.2 	internships within STEM disciplines at small, 
16.3 	for-profit companies located in Minnesota, 
16.4 	having fewer than 250 employees worldwide. 
16.5 	At least 200 students must be matched in the 
16.6 	first year and at least 250 students must be 
16.7 	matched in the second year. No more than 15 
16.8 	percent of the hires may be graduate students. 
16.9 	Selected hiring companies shall receive from 
16.10 	the grant 50 percent of the wages paid to the 
16.11 	intern, capped at $2,500 per intern. The 
16.12 	program must work toward increasing the 
16.13 	participation among women or individuals 
16.14 	with barriers to employment. This is a onetime 
16.15 	appropriation.
16.16 	(w) $1,000,000 each year is for a grant to the 
16.17 	Construction Careers Foundation for the 
16.18 	construction career pathway initiative to 
16.19 	provide year-round educational and 
16.20 	experiential learning opportunities for teens 
16.21 	and young adults under the age of 21 that lead 
16.22 	to careers in the construction industry. This is 
16.23 	a onetime appropriation. Grant funds must be 
16.24 	used to:
16.25 	(1) increase construction industry exposure 
16.26 	activities for middle school and high school 
16.27 	youth, parents, and counselors to reach a more 
16.28 	diverse demographic and broader statewide 
16.29 	audience. This requirement includes, but is 
16.30 	not limited to, an expansion of programs to 
16.31 	provide experience in different crafts to youth 
16.32 	and young adults throughout the state;
16.33 	(2) increase the number of high schools in 
16.34 	Minnesota offering construction classes during 
17.1 	the academic year that utilize a multicraft 
17.2 	curriculum;
17.3 	(3) increase the number of summer internship 
17.4 	opportunities;
17.5 	(4) enhance activities to support graduating 
17.6 	seniors in their efforts to obtain employment 
17.7 	in the construction industry;
17.8 	(5) increase the number of young adults 
17.9 	employed in the construction industry and 
17.10 	ensure that they reflect Minnesota's diverse 
17.11 	workforce; and
17.12 	(6) enhance an industrywide marketing 
17.13 	campaign targeted to youth and young adults 
17.14 	about the depth and breadth of careers within 
17.15 	the construction industry.
17.16 	Programs and services supported by grant 
17.17 	funds must give priority to individuals and 
17.18 	groups that are economically disadvantaged 
17.19 	or historically underrepresented in the 
17.20 	construction industry, including but not limited 
17.21 	to women, veterans, and members of minority 
17.22 	and immigrant groups.
17.23 	(x) $215,000 each year is from the workforce 
17.24 	development fund for a grant to Big Brothers, 
17.25 	Big Sisters of the Greater Twin Cities for 
17.26 	workforce readiness, employment exploration, 
17.27 	and skills development for youth ages 12 to 
17.28 	21. The grant must serve youth in the Twin 
17.29 	Cities, Central Minnesota and Southern 
17.30 	Minnesota Big Brothers, Big Sisters chapters. 
17.31 	This is a onetime appropriation.
17.32 	(y) $50,000 the first year is for a grant to 
17.33 	Fighting Chance for behavioral intervention 
18.1 	programs for at-risk youth. This is a onetime 
18.2 	appropriation.
18.3 	(z) $250,000 each year is from the workforce 
18.4 	development fund for a grant to Bridges to 
18.5 	Healthcare to provide career education, 
18.6 	wraparound support services, and job skills 
18.7 	training in high-demand health care fields to 
18.8 	low-income parents, non-native speakers of 
18.9 	English, and other hard-to-train individuals, 
18.10 	helping families build secure pathways out of 
18.11 	poverty while also addressing worker 
18.12 	shortages in one of Minnesota's most 
18.13 	innovative industries. Funds may be used for 
18.14 	program expenses, including, but not limited 
18.15 	to, hiring instructors and navigators; space 
18.16 	rental; and supportive services to help 
18.17 	participants attend classes, including assistance 
18.18 	with course fees, child care, transportation, 
18.19 	and safe and stable housing. In addition, up to 
18.20 	five percent of grant funds may be used for 
18.21 	Bridges to Healthcare's administrative costs. 
18.22 	This is a onetime appropriation and is 
18.23 	available until June 30, 2020.
18.24 	(aa) $230,000 in fiscal year 2018 is from the 
18.25 	workforce development fund for a grant to the 
18.26 	Bois Forte Tribal Employment Rights Office 
18.27 	(TERO) for an American Indian workforce 
18.28 	development training pilot project. This is a 
18.29 	onetime appropriation.
18.30 	(bb) $500,000 each year is from the workforce 
18.31 	development fund for a grant to the Nonprofits 
18.32 	Assistance Fund to provide capacity-building 
18.33 	grants to small, culturally specific 
18.34 	organizations that primarily serve historically 
18.35 	underserved cultural communities. Grants may 
19.1 	only be awarded to nonprofit organizations 
19.2 	that (1) have an annual organizational budget 
19.3 	of less than $500,000 and (2) are culturally 
19.4 	specific organizations that primarily serve 
19.5 	historically underserved cultural communities. 
19.6 	Grant funds awarded must be used for:
19.7 	(1) organizational infrastructure improvement, 
19.8 	including developing database management 
19.9 	systems and financial systems, or other 
19.10 	administrative needs that increase the 
19.11 	organization's ability to access new funding 
19.12 	sources;
19.13 	(2) organizational workforce development, 
19.14 	including hiring culturally competent staff, 
19.15 	training and skills development, and other 
19.16 	methods of increasing staff capacity; or
19.17 	(3) creation or expansion of partnerships with 
19.18 	existing organizations that have specialized 
19.19 	expertise in order to increase the capacity of 
19.20 	the grantee organization to improve services 
19.21 	for the community. Of this amount, up to five 
19.22 	percent may be used by the Nonprofits 
19.23 	Assistance Fund for administration costs and 
19.24 	providing technical assistance to potential 
19.25 	grantees. This is a onetime appropriation.
19.26 	(cc) $1,502,000 each year is from the 
19.27 	workforce development fund for a grant to 
19.28 	FastTRAC-Minnesota Adult Careers Pathways 
19.29 	Program. Up to ten percent of this 
19.30 	appropriation may be used to provide 
19.31 	leadership, oversight, and technical assistance 
19.32 	services for low-skilled, low-income adults.
19.33 	(dd) $100,000 each year is for the "Getting to 
19.34 	Work" grant program. This is a onetime 
20.1 	appropriation and is available until June 30, 
20.2 	2021.
20.3 	(ee) $20,000 in fiscal year 2018 is from the 
20.4 	workforce development fund for transfer to 
20.5 	the Cook County Higher Education Board to 
20.6 	provide educational programming and 
20.7 	academic support services to remote regions 
20.8 	in northeastern Minnesota. This appropriation 
20.9 	is in addition to other funds previously 
20.10 	appropriated for transfer to the board. This is 
20.11 	a onetime appropriation.

20.12	Subd. 6.Vocational Rehabilitation

20.13	Appropriations by Fund
	
20.14	General
	23,986,000
	23,986,000
	
20.15
20.16	Workforce 
Development
	7,830,000
	7,830,000
	
20.17 	(a) $8,300,000 each year from the general fund 
20.18 	and $2,500,000 from the workforce 
20.19 	development fund are for the state's vocational 
20.20 	rehabilitation program under Minnesota 
20.21 	Statutes, chapter 268A. The base for this 
20.22 	program is $10,800,000 from the general fund 
20.23 	in fiscal year 2020 and fiscal year 2021.
20.24 	(b) $3,011,000 each year is from the general 
20.25 	fund for grants to centers for independent 
20.26 	living under Minnesota Statutes, section 
20.27 	268A.11.
20.28 	(c) $6,830,000 each year from the workforce 
20.29 	development fund and $6,495,000 each year 
20.30 	from the general fund are for extended 
20.31 	employment services for persons with severe 
20.32 	disabilities under Minnesota Statutes, section 
20.33 	268A.15. The base for this program is 
20.34 	$7,620,000 from the general fund and 
21.1 	$6,830,000 from the workforce development 
21.2 	fund in fiscal year 2020 and fiscal year 2021.
21.3 	(d) $1,000,000 each year is from the 
21.4 	workforce development fund for grants under 
21.5 	Minnesota Statutes, section 268A.16, for 
21.6 	employment services for persons, including 
21.7 	transition-aged youth, who are deaf, deafblind, 
21.8 	or hard-of-hearing. If the amount in the first 
21.9 	year is insufficient, the amount in the second 
21.10 	year is available in the first year. Of this 
21.11 	amount, up to five percent is for administration 
21.12 	and monitoring of the program.
21.13 	(e) $2,555,000 each year is for grants to 
21.14 	programs that provide employment support 
21.15 	services to persons with mental illness under 
21.16 	Minnesota Statutes, sections 268A.13 and 
21.17 	268A.14.

21.18	Subd. 7.Services for the Blind
 		6,425,000
		6,425,000
	
21.19 	$6,425,000 each year is for state services for 
21.20 	the blind. Of this amount, $500,000 each year 
21.21 	is for senior citizens who are becoming blind. 
21.22 	At least half of the funds appropriated must 
21.23 	be used to provide training services for seniors 
21.24 	who are becoming blind. Training services 
21.25 	must provide independent living skills to 
21.26 	seniors who are becoming blind to allow them 
21.27 	to continue to live independently in their 
21.28 	homes. The base for this program is 
21.29 	$5,925,000 in fiscal year 2020 and $5,925,000 
21.30 	in fiscal year 2021.

21.31	Subd. 8.General Support Services

21.32	Appropriations by Fund
	
21.33	General
	3,573,000
	3,573,000
	
21.34
21.35	Workforce 
Development
	17,000
	17,000
	
22.1 	(a) $250,000 each year is for the publication, 
22.2 	dissemination, and use of labor market 
22.3 	information under Minnesota Statutes, section 
22.4 	116J.4011.
22.5 	(b) $150,000 each year is for the cost-of-living 
22.6 	study required under Minnesota Statutes, 
22.7 	section 116J.013.
22.8 	(c) $1,269,000 each year is for transfer to the 
22.9 	Minnesota Housing Finance Agency for 
22.10 	operating the Olmstead Compliance Office.
22.11 	(d) $500,000 each year is for the 
22.12 	capacity-building grant program to assist 
22.13 	nonprofit organizations offering or seeking to 
22.14 	offer workforce development and economic 
22.15 	development programming. Of this amount, 
22.16 	up to five percent is for administration and 
22.17 	monitoring of the program.

22.18	Subd. 9.Reporting
 					
22.19 	(a) An entity receiving a direct appropriation 
22.20 	in this article that received a direct 
22.21 	appropriation in Laws 2016, chapter 189, 
22.22 	article 12, is subject to the requirements for 
22.23 	grants to individually specified recipients 
22.24 	under Laws 2016, chapter 189, article 12, 
22.25 	section 11.
22.26 	(b) Any recipient of a direct appropriation 
22.27 	from the workforce development fund for 
22.28 	adult workforce-related programs under 
22.29 	subdivision 5 not subject to the requirements 
22.30 	of paragraph (a) is subject to the reporting 
22.31 	requirements under Minnesota Statutes, 
22.32 	section 116L.98.

22.33
22.34	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY

23.1	Subdivision 1.Total Appropriation
 	$
	28,184,000
	$
	28,484,000

23.2	Appropriations by Fund
	
23.3		2018
	2019
	
23.4	General
	1,202,000
	1,202,000
	
23.5
23.6	Workers' 
Compensation
	24,975,000
	24,975,000
	
23.7
23.8	Workforce 
Development
	2,007,000
	2,307,000
	
23.9 	The amounts that may be spent for each 
23.10 	purpose are specified in the following 
23.11 	subdivisions.

23.12	Subd. 2.Workers' Compensation
 		14,782,000
		14,782,000
	
23.13 	(a) This appropriation is from the workers' 
23.14 	compensation fund.
23.15 	(b) $3,000,000 each year is for workers' 
23.16 	compensation system upgrades. This 
23.17 	appropriation is available until June 30, 2021. 
23.18 	The base appropriation for fiscal year 2020 
23.19 	and beyond is $0.
23.20 	(c) This appropriation includes funds for 
23.21 	information technology project services and 
23.22 	support subject to the provisions of Minnesota 
23.23 	Statutes, section 16E.0466. Any ongoing 
23.24 	information technology costs must be 
23.25 	incorporated into the service level agreement 
23.26 	and must be paid to the Office of MN.IT 
23.27 	Services by the commissioner of labor and 
23.28 	industry under the rates and mechanism 
23.29 	specified in that agreement.

23.30	Subd. 3.Labor Standards and Apprenticeship

23.31	Appropriations by Fund
	
23.32	General
	1,202,000
	1,202,000
	
23.33
23.34	Workforce 
Development
	1,507,000
	1,507,000
	
24.1 	(a) $1,202,000 in fiscal year 2018 and 
24.2 	$1,202,000 in fiscal year 2019 are from the 
24.3 	general fund for the labor standards and 
24.4 	apprenticeship program.
24.5 	(b) $1,057,000 in fiscal year 2018 and 
24.6 	$1,057,000 in fiscal year 2019 are from the 
24.7 	workforce development fund for the 
24.8 	apprenticeship program under Minnesota 
24.9 	Statutes, chapter 178.
24.10 	(c) $150,000 each year from the workforce 
24.11 	development fund is for prevailing wage 
24.12 	enforcement.
24.13 	(d) $100,000 in fiscal year 2018 is from the 
24.14 	workforce development fund for labor 
24.15 	education and advancement program grants 
24.16 	under Minnesota Statutes, section 178.11, to 
24.17 	expand and promote registered apprenticeship 
24.18 	training for minorities and women.
24.19 	(e) $200,000 each year is from the workforce 
24.20 	development fund for a grant to the 
24.21 	Construction Careers Foundation Inc. for the 
24.22 	Helmets to Hardhats Minnesota Initiative. 
24.23 	Grant funds must be used to recruit, retain, 
24.24 	assist, and support National Guard, Reserve, 
24.25 	active duty military members, and veteran's 
24.26 	participation in apprenticeship programs 
24.27 	registered with the Department of Labor and 
24.28 	Industry and connect them with career training 
24.29 	and employment in the building and 
24.30 	construction industry. The recruitment, 
24.31 	selection, employment, and training must be 
24.32 	without discrimination due to race, color, 
24.33 	creed, religion, national origin, sex, sexual 
24.34 	orientation, marital status, physical or mental 
25.1 	disability, receipt of public assistance, or age. 
25.2 	This is a onetime appropriation.

25.3	Subd. 4.Workplace Safety
 		4,154,000
		4,154,000
	
25.4 	This appropriation is from the workers' 
25.5 	compensation fund.

25.6	Subd. 5.General Support

25.7	Appropriations by Fund
	
25.8
25.9	Workers' 
Compensation
	6,039,000
	6,039,000
	
25.10
25.11	Workforce 
Development
	500,000
	800,000
	
25.12 	(a) $300,000 each year is from the workforce 
25.13 	development fund for the PIPELINE program.
25.14 	(b) $200,000 in fiscal year 2018 is from the 
25.15 	workforce development fund for the 
25.16 	commissioner of labor and industry to convene 
25.17 	and collaborate with stakeholders as provided 
25.18 	under Minnesota Statutes, section 175.46, 
25.19 	subdivision 3, and to develop youth skills 
25.20 	training competencies for approved 
25.21 	occupations. This is a onetime appropriation.
25.22 	(c) $500,000 in fiscal year 2019 is from the 
25.23 	workforce development fund to administer the 
25.24 	youth skills training program under Minnesota 
25.25 	Statutes, section 175.46. The commissioner 
25.26 	shall award up to five grants each year to local 
25.27 	partnerships located throughout the state, not 
25.28 	to exceed $100,000 per local partnership grant. 
25.29 	The commissioner may use a portion of this 
25.30 	appropriation for administration of the grant 
25.31 	program. The base amount for this program 
25.32 	is $500,000 each year beginning in fiscal year 
25.33 	2020.

25.34	Sec. 4. BUREAU OF MEDIATION SERVICES
 	$
	2,247,000
	$
	2,247,000
	
26.1 	(a) $68,000 each year is for grants to area 
26.2 	labor management committees. Grants may 
26.3 	be awarded for a 12-month period beginning 
26.4 	July 1 each year. Any unencumbered balance 
26.5 	remaining at the end of the first year does not 
26.6 	cancel but is available for the second year.
26.7 	(b) $394,000 each year is for the Office of 
26.8 	Collaboration and Dispute Resolution under 
26.9 	Minnesota Statutes, section 179.90.

26.10
26.11	Sec. 5. PUBLIC EMPLOYMENT RELATIONS 
BOARD
 	$
	125,000
	$
	125,000

26.12
26.13	Sec. 6. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,913,000
	$
	1,913,000
	
26.14 	This appropriation is from the workers' 
26.15 	compensation fund.

26.16 	Sec. 7. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is 
26.17 	amended to read:

26.18	Subd. 2.Workers' Compensation
 		15,226,000
		17,782,000
	
26.19 	This appropriation is from the workers' 
26.20 	compensation fund.
26.21 	$4,000,000 in fiscal year 2016 and $6,000,000 
26.22 	in fiscal year 2017 are for workers' 
26.23 	compensation system upgrades and are 
26.24 	available through June 30, 2021. The base 
26.25 	appropriation for this purpose is $3,000,000 
26.26 	in fiscal year 2018 and $3,000,000 in fiscal 
26.27 	year 2019. The base appropriation for fiscal 
26.28 	year 2020 and beyond is zero.
26.29 	This appropriation includes funds for 
26.30 	information technology project services and 
26.31 	support subject to the provisions of Minnesota 
26.32 	Statutes, section 16E.0466. Any ongoing 
26.33 	information technology costs will be 
27.1 	incorporated into the service level agreement 
27.2 	and will be paid to the Office of MN.IT 
27.3 	Services by the commissioner of labor and 
27.4 	industry under the rates and mechanism 
27.5 	specified in that agreement.

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

27.7 	ARTICLE 2
27.8 	DEPARTMENT OF LABOR AND INDUSTRY

27.9 	Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
27.10 	175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.
27.11 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall convene 
27.12 	industry representatives, identify occupational competency standards for dual training, and 
27.13 	provide technical assistance to develop dual-training programs. The goal of dual training 
27.14 	is to provide employees of an employer with training to acquire competencies that the 
27.15 	employer requires. The competency standards shall be identified for employment in 
27.16 	occupations in advanced manufacturing, health care services, information technology, and 
27.17 	agriculture. Competency standards are not rules and are exempt from the rulemaking 
27.18 	provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do 
27.19 	not apply.
27.20 		Subd. 2.Definition; competency standards Definitions. For purposes of this section, 
27.21 	the following terms have the meanings given them:
27.22 	(1) "competency standards" means the specific knowledge and skills necessary for a 
27.23 	particular occupation.; and
27.24 	(2) "dual-training program" means an employment-based earn-as-you-learn program 
27.25 	where the trainee is employed by a participating employer and receives structured on-the-job 
27.26 	training and technical instruction in accordance with the competency standards.
27.27 		Subd. 3.Competency standards identification process. In identifying competency 
27.28 	standards, the commissioner shall consult with the commissioner of the Office of Higher 
27.29 	Education and the commissioner of employment and economic development and convene 
27.30 	recognized industry experts, representative employers, higher education institutions, 
27.31 	representatives of the disabled community, and representatives of labor to assist in identifying 
28.1 	credible competency standards. Competency standards must be consistent with, to the extent 
28.2 	available and practical, recognized international and national standards.
28.3 		Subd. 4.Duties. The commissioner shall:
28.4 	(1) convene industry representatives to identify, develop, and implement dual-training 
28.5 	programs;
28.6 	(2) identify competency standards for entry level entry-level and higher skill levels;
28.7 	(2) (3) verify the competency standards and skill levels and their transferability by subject 
28.8 	matter expert representatives of each respective industry;
28.9 	(3) (4) develop models for Minnesota educational institutions to engage in providing 
28.10 	education and training to meet the competency standards established;
28.11 	(4) (5) encourage participation by employers and labor in the competency standard 
28.12 	identification process for occupations in their industry; and
28.13 	(5) (6) align dual training competency standards dual-training programs with other 
28.14 	workforce initiatives.; and
28.15 	(7) provide technical assistance to develop dual-training programs.
28.16 		Subd. 5.Notification. The commissioner must communicate identified competency 
28.17 	standards to the commissioner of the Office of Higher Education for the purpose of the dual 
28.18 	training dual-training competency grant program under section 136A.246. The commissioner 
28.19 	of labor and industry shall maintain the competency standards on the department's Web 
28.20 	site.

28.21 	Sec. 2. [175.46] YOUTH SKILLS TRAINING PROGRAM.
28.22 		Subdivision 1.Program established; grants authorized. The commissioner shall 
28.23 	approve youth skills training programs established for the purpose of providing work-based 
28.24 	skills training for student learners ages 16 and older. The commissioner shall award grants 
28.25 	to local partnerships for the implementation and coordination of local youth skills training 
28.26 	programs as provided in this section.
28.27 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
28.28 	the meanings given.
28.29 	(b) "School district" means a school district or charter school.
28.30 	(c) "Local partnership" means a school district, nonpublic school, intermediate school 
28.31 	district, or postsecondary institution, in partnership with other school districts, nonpublic 
29.1 	schools, intermediate school districts, postsecondary institutions, workforce development 
29.2 	authorities, economic development authorities, nonprofit organizations, labor unions, or 
29.3 	individuals who have an agreement with one or more local employers to be responsible for 
29.4 	implementing and coordinating a local youth skills training program.
29.5 	(d) "Student learner" means a student who is both enrolled in a course of study at a public 
29.6 	or nonpublic school to obtain related instruction for academic credit and is employed under 
29.7 	a written agreement to obtain on-the-job skills training under a youth skills training program 
29.8 	approved under this section.
29.9 		Subd. 3.Duties. (a) The commissioner shall:
29.10 	(1) approve youth skills training programs in high-growth, high-demand occupations 
29.11 	that provide:
29.12 	(i) that the work of the student learner in the occupations declared particularly hazardous 
29.13 	shall be incidental to the training;
29.14 	(ii) that the work shall be intermittent and for short periods of time, and under the direct 
29.15 	and close supervision of a qualified and experienced person;
29.16 	(iii) that safety instruction shall be provided to the student learner and may be given by 
29.17 	the school and correlated by the employer with on-the-job training;
29.18 	(iv) a schedule of organized and progressive work processes to be performed on the job;
29.19 	(v) a schedule of wage rates in compliance with section 177.24; and
29.20 	(vi) whether the student learner will obtain secondary school academic credit, 
29.21 	postsecondary credit, or both, for the training program;
29.22 	(2) approve occupations and maintain a list of approved occupations for programs under 
29.23 	this section;
29.24 	(3) issue requests for proposals for grants;
29.25 	(4) work with individuals representing industry and labor to develop new youth skills 
29.26 	training programs;
29.27 	(5) develop model program guides;
29.28 	(6) monitor youth skills training programs;
29.29 	(7) provide technical assistance to local partnership grantees;
29.30 	(8) work with providers to identify paths for receiving postsecondary credit for 
29.31 	participation in the youth skills training program; and
30.1 	(9) approve other activities as necessary to implement the program.
30.2 	(b) The commissioner shall collaborate with stakeholders, including, but not limited to, 
30.3 	representatives of secondary school institutions, career and technical education instructors, 
30.4 	postsecondary institutions, businesses, and labor, in developing youth skills training 
30.5 	programs, and identifying and approving occupations and competencies for youth skills 
30.6 	training programs.
30.7 		Subd. 4.Training agreement. Each student learner shall sign a written training agreement 
30.8 	on a form prescribed by the commissioner. Each agreement shall contain the name of the 
30.9 	student learner, and be signed by the employer, the school coordinator or administrator, and 
30.10 	the student learner, or if the student learner is a minor, by the student's parent or legal 
30.11 	guardian. Copies of each agreement shall be kept on file by both the school and the employer.
30.12 		Subd. 5.Program approval. The commissioner may grant exemptions from the 
30.13 	provisions of chapter 181A for student learners participating in youth skills training programs 
30.14 	approved by the commissioner under this section. The approval of a youth skills training 
30.15 	program will be reviewed annually. The approval of a youth skills training program may 
30.16 	be revoked at any time if the commissioner finds that:
30.17 	(1) all provisions of subdivision 3 have not been met in the previous year; or
30.18 	(2) reasonable precautions have not been observed for the safety of minors.
30.19 	The commissioner shall maintain and annually update a list of occupations and tasks suitable 
30.20 	for student learners in compliance with federal law.
30.21 		Subd. 6.Interactions with education finance. (a) For the purpose of computing state 
30.22 	aids for the enrolling school district, the hours a student learner participates in a youth skills 
30.23 	training program under this section must be counted in the student's hours of average daily 
30.24 	membership under section 126C.05.
30.25 	(b) Educational expenses for a participating student learner must be included in the 
30.26 	enrolling district's career and technical revenue as provided under section 124D.4531.
30.27 		Subd. 7.Academic credit. A school district may grant academic credit to student learners 
30.28 	participating in youth skills training programs under this section in accordance with local 
30.29 	requirements.
30.30 		Subd. 8.Postsecondary credit. A postsecondary institution may award postsecondary 
30.31 	credit to a student learner who successfully completes a youth skills training program.
31.1 		Subd. 9.Work-based learning program. A youth skills training program shall qualify 
31.2 	as a work-based learning program if it meets requirements for a career and technical education 
31.3 	program and is supervised by a qualified teacher with appropriate licensure for a work-based 
31.4 	learning teacher-coordinator.
31.5 		Subd. 10.School coordinator. Unless otherwise required for a work-based learning 
31.6 	program, a youth skills training program may be supervised by a qualified teacher or by an 
31.7 	administrator as determined by the school district.
31.8 		Subd. 11.Other apprenticeship programs. (a) This section shall not affect programs 
31.9 	under section 124D.47.
31.10 	(b) A registered apprenticeship program governed by chapter 178 may grant credit 
31.11 	toward the completion of a registered apprenticeship for the successful completion of a 
31.12 	youth skills training program under this section.
31.13 		Subd. 12.Grant applications. (a) Applications for grants must be made to the 
31.14 	commissioner on a form provided by the commissioner.
31.15 	(b) A local partnership may apply for a grant and shall include in its grant application:
31.16 	(1) the identity of each school district, public agency, nonprofit organization, or individual 
31.17 	who is a participant in the local partnership;
31.18 	(2) the identity of each employer who is a participant in the local partnership and the 
31.19 	amount of matching funds provided by each employer, if any;
31.20 	(3) a plan to accomplish the implementation and coordination of activities specified in 
31.21 	this subdivision; and
31.22 	(4) the identity of a fiscal agent responsible for receiving, managing, and accounting for 
31.23 	the grant.
31.24 		Subd. 13.Grant awards. (a) A local partnership awarded a grant under this section 
31.25 	must use the grant award for any of the following implementation and coordination activities:
31.26 	(1) recruiting additional employers to provide on-the-job training and supervision for 
31.27 	student learners and providing technical assistance to those employers;
31.28 	(2) recruiting students to participate in the local youth skills training program and 
31.29 	monitoring the progress of student learners participating in the program and monitoring 
31.30 	program outcomes;
31.31 	(3) coordinating youth skills training activities within participating school districts and 
31.32 	among participating school districts, postsecondary institutions, and employers;
32.1 	(4) coordinating academic, vocational and occupational learning, school-based and 
32.2 	work-based learning, and secondary and postsecondary education for participants in the 
32.3 	local youth skills training program;
32.4 	(5) coordinating transportation for student learners participating in the local youth skills 
32.5 	training program; and
32.6 	(6) any other implementation or coordination activity that the commissioner may direct 
32.7 	or permit the local partnership to perform.
32.8 	(b) Grant awards may not be used to directly or indirectly pay the wages of a student 
32.9 	learner.
32.10 		Subd. 14.Outcomes. The following outcomes are expected of a local youth skills training 
32.11 	program:
32.12 	(1) at least 80 percent of the student learners who participate in a youth skills training 
32.13 	program receive a high school diploma when eligible upon completion of the training 
32.14 	program; and
32.15 	(2) at least 60 percent of the student learners who participate in a youth skills training 
32.16 	program receive a recognized credential upon completion of the training program.
32.17 		Subd. 15.Reporting. (a) By February 1, 2019, and annually thereafter, the commissioner 
32.18 	shall report on the activity and outcomes of the program for the preceding fiscal year to the 
32.19 	chairs of the legislative committees with jurisdiction over jobs and economic growth policy 
32.20 	and finance. At a minimum, the report must include:
32.21 	(1) the number of student learners who commenced the training program and the number 
32.22 	who completed the training program; and
32.23 	(2) recommendations, if any, for changes to the program.
32.24 	(b) The initial report shall include a detailed description of the differences between the 
32.25 	state and federal systems in child safety standards.

32.26 	Sec. 3. Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read:
32.27 		Subd. 7.License fees and license renewal fees. (a) The license fee for each license is 
32.28 	the base license fee plus any applicable board fee, continuing education fee, and contractor 
32.29 	recovery fund fee and additional assessment, as set forth in this subdivision.
33.1 	(b) For purposes of this section, "license duration" means the number of years for which 
33.2 	the license is issued except that if the initial license is not issued for a whole number of 
33.3 	years, the license duration shall be rounded up to the next whole number.
33.4 	(c) The base license fee shall depend on whether the license is classified as an entry 
33.5 	level, master, journeyman, or business license, and on the license duration. The base license 
33.6 	fee shall be:

33.7		License Classification
	License Duration
		
33.8			1 year
	2 years
	
33.9		Entry level
	$10
	$20
	
33.10		Journeyworker
	$20
	$40
	
33.11		Master
	$40
	$80
	
33.12		Business
		$180
	
33.13 	(d) If there is a continuing education requirement for renewal of the license, then a 
33.14 	continuing education fee must be included in the renewal license fee. The continuing 
33.15 	education fee for all license classifications shall be: $10 if the renewal license duration is 
33.16 	one year; and $20 if the renewal license duration is two years.
33.17 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, 
33.18 	then a board fee must be included in the license fee and the renewal license fee. The board 
33.19 	fee for all license classifications shall be: $4 if the license duration is one year; and $8 if 
33.20 	the license duration is two years.
33.21 	(f) If the application is for the renewal of a license issued under sections 326B.802 to 
33.22 	326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 
33.23 	3, and any additional assessment required under section 326B.89, subdivision 16, must be 
33.24 	included in the license renewal fee.
33.25 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
33.26 	July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:

33.27		License Classification
	License Duration
		
33.28			1 year
	2 years
	
33.29		Entry level
	$10
	$20
	
33.3133.30
		Journeyworker
	$15
	$35
$30
	
33.3333.32
		Master
	$30
	$75
$60
	
33.3533.34
		Business
		$160
$120
	
34.1 	If there is a continuing education requirement for renewal of the license, then a continuing 
34.2 	education fee must be included in the renewal license fee. The continuing education fee for 
34.3 	all license classifications shall be $5.

34.4 	Sec. 4. [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO 
34.5 	CODE.
34.6 		Subdivision 1.Definition. For purposes of this section, "place of public accommodation" 
34.7 	means a publicly or privately owned facility that is designed for occupancy by 200 or more 
34.8 	people and includes a sports or entertainment arena, stadium, theater, community or 
34.9 	convention hall, special event center, indoor amusement facility or water park, or swimming 
34.10 	pool.
34.11 		Subd. 2.Application.  Construction, additions, and alterations to a place of public 
34.12 	accommodation must be designed and constructed to comply with the State Building Code.
34.13 		Subd. 3.Enforcement. In a municipality that has not adopted the code by ordinance 
34.14 	under section 326B.121, subdivision 2, the commissioner shall enforce this section in 
34.15 	accordance with section 326B.107, subdivision 1.

34.16 	Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
34.17 		Subdivision 1.Building permits. (a) Fees for building permits submitted as required 
34.18 	in section 326B.106 326B.107 include:
34.19 	(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; 
34.20 	and
34.21 	(2) the surcharge required by section 326B.148.
34.22 	(b) The total valuation and fee schedule is:
34.23 	(1) $1 to $500, $29.50 $21;
34.24 	(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100 
34.25 	or fraction thereof, to and including $2,000;
34.26 	(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each 
34.27 	additional $1,000 or fraction thereof, to and including $25,000;
34.28 	(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each 
34.29 	additional $1,000 or fraction thereof, to and including $50,000;
35.1 	(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for 
35.2 	each additional $1,000 or fraction thereof, to and including $100,000;
35.3 	(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for 
35.4 	each additional $1,000 or fraction thereof, to and including $500,000;
35.5 	(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
35.6 	for each additional $1,000 or fraction thereof, to and including $1,000,000; and
35.7 	(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
35.8 	for each additional $1,000 or fraction thereof.
35.9 	(c) Other inspections and fees are:
35.10 	(1) inspections outside of normal business hours (minimum charge two hours), $63.25 
35.11 	per hour;
35.12 	(2) reinspection fees, $63.25 per hour;
35.13 	(3) inspections for which no fee is specifically indicated (minimum charge one-half 
35.14 	hour), $63.25 per hour; and
35.15 	(4) additional plan review required by changes, additions, or revisions to approved plans 
35.16 	(minimum charge one-half hour), $63.25 per hour.
35.17 	(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, 
35.18 	then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, 
35.19 	hourly wages, and fringe benefits of the employees involved.

35.20 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective 
35.21 	July 1, 2017, and the amendments to it expire October 1, 2021.

35.22 	Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
35.23 	read:
35.24 		Subd. 16.Wind electric systems. (a) The inspection fee for the installation of a wind 
35.25 	turbine is:
35.26 	(1) 0 watts to and including 100,000 watts, $80;
35.27 	(2) 100,001 watts to and including 500,000 watts, $105;
35.28 	(3) 500,001 watts to and including 1,000,000 watts, $120;
35.29 	(4) 1,000,001 watts to and including 1,500,000 watts, $125;
35.30 	(5) 1,500,001 watts to and including 2,000,000 watts, $130;
36.1 	(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
36.2 	(7) 3,000,001 watts and larger, $160.
36.3 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
36.4 	current energy output of one individual wind turbine.

36.5 	Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
36.6 	read:
36.7 		Subd. 17.Solar photovoltaic systems. (a) The inspection fee for the installation of a 
36.8 	solar photovoltaic system is:
36.9 	(1) 0 watts to and including 5,000 watts, $60;
36.10 	(2) 5,001 watts to and including 10,000 watts, $100;
36.11 	(3) 10,001 watts to and including 20,000 watts, $150;
36.12 	(4) 20,001 watts to and including 30,000 watts, $200;
36.13 	(5) 30,001 watts to and including 40,000 watts, $250;
36.14 	(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional 
36.15 	10,000 watts over 40,000 watts;
36.16 	(7) 1,000,000 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts 
36.17 	over 1,000,000 watts; and
36.18 	(8) 5,000,000 watts and larger, $8,650, and $10 for each additional 10,000 watts over 
36.19 	5,000,000 watts.
36.20 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
36.21 	current energy output of the solar photovoltaic system.

36.22 	Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:
36.23 		Subd. 2.Powers; duties; administrative support. (a) The board shall have the power 
36.24 	to:
36.25 	(1) elect its chair, vice-chair, and secretary;
36.26 	(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 
36.27 	and containing such other provisions as may be useful and necessary for the efficient conduct 
36.28 	of the business of the board;
37.1 	(3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code 
37.2 	amendments thereto. The Plumbing Code shall include the minimum standards described 
37.3 	in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the 
37.4 	Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in 
37.5 	subdivision 6, paragraphs (b), (c), and (d);
37.6 	(4) review requests for final interpretations and issue final interpretations as provided 
37.7 	in section 326B.127, subdivision 5;
37.8 	(5) adopt rules that regulate the licensure, certification, or registration of plumbing 
37.9 	contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers, 
37.10 	restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and 
37.11 	testers, water conditioning contractors, and water conditioning installers, and other persons 
37.12 	engaged in the design, installation, and alteration of plumbing systems or engaged in or 
37.13 	working at the business of water conditioning installation or service, or engaged in or 
37.14 	working at the business of medical gas system installation, maintenance, or repair, except 
37.15 	for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall 
37.16 	adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) 
37.17 	and (f);
37.18 	(6) adopt rules that regulate continuing education for individuals licensed as master 
37.19 	plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers, 
37.20 	registered unlicensed individuals, water conditioning contractors masters, and water 
37.21 	conditioning installers journeymen, and for individuals certified under sections 326B.437
37.22 	and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in 
37.23 	subdivision 6, paragraphs (e) and (f);
37.24 	(7) refer complaints or other communications to the commissioner, whether oral or 
37.25 	written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 
37.26 	order that the commissioner has the authority to enforce pertaining to code compliance, 
37.27 	licensure, or an offering to perform or performance of unlicensed plumbing services;
37.28 	(8) approve per diem and expenses deemed necessary for its members as provided in 
37.29 	subdivision 3;
37.30 	(9) approve license reciprocity agreements;
37.31 	(10) select from its members individuals to serve on any other state advisory council, 
37.32 	board, or committee; and
37.33 	(11) recommend the fees for licenses, registrations, and certifications.
38.1 	Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 
38.2 	Board of High Pressure Piping Systems, the commissioner of labor and industry shall 
38.3 	administer and enforce the provisions of this chapter and any rules promulgated pursuant 
38.4 	thereto.
38.5 	(b) The board shall comply with section 15.0597, subdivisions 2 and 4.
38.6 	(c) The commissioner shall coordinate the board's rulemaking and recommendations 
38.7 	with the recommendations and rulemaking conducted by the other boards created pursuant 
38.8 	to this chapter. The commissioner shall provide staff support to the board. The support 
38.9 	includes professional, legal, technical, and clerical staff necessary to perform rulemaking 
38.10 	and other duties assigned to the board. The commissioner of labor and industry shall supply 
38.11 	necessary office space and supplies to assist the board in its duties.

38.12 	Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:
38.13 		Subd. 3.Water conditioning installation. "Water conditioning installation" means the 
38.14 	installation of appliances, appurtenances, and fixtures designed to treat water so as to alter, 
38.15 	modify, add or remove mineral, chemical or bacterial content, said installation to be made 
38.16 	in a water distribution system serving:
38.17 	(1) a single family residential unit, which has been initially established by a licensed 
38.18 	plumber, and does not involve a direct connection without an air gap to a soil or waste pipe.; 
38.19 	or
38.20 	(2) a multifamily or nonresidential building, where the plumbing installation has been 
38.21 	initially established by a  licensed plumber. Isolation valves shall be required for all water 
38.22 	conditioning installations and shall be readily accessible. Water conditioning installation 
38.23 	does not include:
38.24 	(i) a valve that allows isolation of the water conditioning installation;
38.25 	(ii) piping greater than two-inch nominal pipe size; or
38.26 	(iii) a direct connection without an air gap to a soil or waste pipe.

38.27 	Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
38.28 	to read:
38.29 		Subd. 5.Direct supervision. The term "direct supervision," with respect to direct 
38.30 	supervision of a registered unlicensed individual, means that:
39.1 	(1) at all times while the registered unlicensed individual is performing water conditioning 
39.2 	installation work, a direct supervisor is present at the location where the registered unlicensed 
39.3 	individual is working;
39.4 	(2) the direct supervisor is physically present and immediately available to the registered 
39.5 	unlicensed individual at all times for assistance and direction;
39.6 	(3) any form of electronic supervision does not meet the requirement of being physically 
39.7 	present;
39.8 	(4) the direct supervisor reviews the water conditioning installation work performed by 
39.9 	the registered unlicensed individual before the water conditioning installation is operated; 
39.10 	and
39.11 	(5) the direct supervisor determines that all water conditioning installation work 
39.12 	performed by the registered unlicensed individual is performed in compliance with sections 
39.13 	326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, 
39.14 	and all orders issued under section 326B.082.

39.15 	Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
39.16 	to read:
39.17 		Subd. 6.Direct supervisor. "Direct supervisor" means a master plumber, journeyman 
39.18 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
39.19 	master, or water conditioning journeyman responsible for providing direct supervision of 
39.20 	a registered unlicensed individual.

39.21 	Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:
39.22 		Subd. 2.Qualifications for licensing. (a) A water conditioning master license shall be 
39.23 	issued only to an individual who has demonstrated skill in planning, superintending, and
39.24 	servicing, and installing water conditioning installations, and has successfully passed the 
39.25 	examination for water conditioning masters. A water conditioning journeyman license shall 
39.26 	only be issued to an individual other than a water conditioning master who has demonstrated 
39.27 	practical knowledge of water conditioning installation, and has successfully passed the 
39.28 	examination for water conditioning journeymen. A water conditioning journeyman must 
39.29 	successfully pass the examination for water conditioning masters before being licensed as 
39.30 	a water conditioning master.
39.31 	(b) Each water conditioning contractor must designate a responsible licensed master 
39.32 	plumber or a responsible licensed water conditioning master, who shall be responsible for 
40.1 	the performance of all water conditioning installation and servicing in accordance with the 
40.2 	requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 
40.3 	326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 
40.4 	the water conditioning contractor is an individual or sole proprietorship, the responsible 
40.5 	licensed master must be the individual, proprietor, or managing employee. If the water 
40.6 	conditioning contractor is a partnership, the responsible licensed master must be a general 
40.7 	partner or managing employee. If the water conditioning contractor is a limited liability 
40.8 	company, the responsible licensed master must be a chief manager or managing employee. 
40.9 	If the water conditioning contractor is a corporation, the responsible licensed master must 
40.10 	be an officer or managing employee. If the responsible licensed master is a managing 
40.11 	employee, the responsible licensed master must be actively engaged in performing water 
40.12 	conditioning work on behalf of the water conditioning contractor and cannot be employed 
40.13 	in any capacity as a water conditioning master or water conditioning journeyman for any 
40.14 	other water conditioning contractor. An individual must not be the responsible licensed 
40.15 	master for more than one water conditioning contractor.
40.16 	(c) All applications and renewals for water conditioning contractor licenses shall include 
40.17 	a verified statement that the applicant or licensee has complied with paragraph (b).
40.18 	(d) Each application and renewal for a water conditioning master license, water 
40.19 	conditioning journeyman license, or a water conditioning contractor license shall be 
40.20 	accompanied by all fees required by section 326B.092.

40.21 	Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:
40.22 		Subd. 4.Plumber's apprentices. (a) A plumber's apprentice who is registered under 
40.23 	section 326B.47 is authorized to assist in water conditioning installation and water 
40.24 	conditioning servicing only while under the direct supervision of a master plumber, 
40.25 	journeyman plumber, restricted master plumber, restricted journeyman plumber, water 
40.26 	conditioning master, or water conditioning journeyman. The master or journeyman is 
40.27 	responsible for ensuring that all water conditioning work performed by the plumber's 
40.28 	apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 
40.29 	326B.59. The supervising master or journeyman must be licensed and must be employed 
40.30 	by the same employer as the plumber's apprentice. Licensed individuals shall not permit 
40.31 	plumber's apprentices to perform water conditioning work except under the direct supervision 
40.32 	of an individual actually licensed to perform such work. Plumber's apprentices shall not 
40.33 	supervise the performance of plumbing work or make assignments of plumbing work to 
40.34 	unlicensed individuals.
41.1 	(b) Water conditioning contractors employing plumber's apprentices to perform water 
41.2 	conditioning work shall maintain records establishing compliance with this subdivision that 
41.3 	shall identify all plumber's apprentices performing water conditioning work, and shall permit 
41.4 	the department to examine and copy all such records.

41.5 	Sec. 14. [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
41.6 		Subdivision 1.Registration; supervision; records. (a) All unlicensed individuals 
41.7 	engaged in water conditioning installation must be registered under subdivision 3.
41.8 	(b) A registered unlicensed individual is authorized to assist in water conditioning 
41.9 	installations in a single family residential unit only when a master plumber, journeyman 
41.10 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
41.11 	master, or water conditioning journeyman is available and responsible for ensuring that all 
41.12 	water conditioning installation work performed by the unlicensed individual complies with 
41.13 	the applicable provisions of the plumbing and water conditioning codes and rules adopted 
41.14 	pursuant to such codes. For all other water conditioning installation work, the registered 
41.15 	unlicensed individual must be under the direct supervision of a responsible licensed water 
41.16 	conditioning master.
41.17 	(c) Water conditioning contractors employing registered unlicensed individuals to perform 
41.18 	water conditioning installation work shall maintain records establishing compliance with 
41.19 	this subdivision that shall identify all unlicensed individuals performing water conditioning 
41.20 	installations, and shall permit the department to examine and copy all such records.
41.21 		Subd. 2.Journeyman exam. A registered unlicensed individual who has completed 
41.22 	875 hours of practical water conditioning installation, servicing, and training is eligible to 
41.23 	take the water conditioning journeyman examination. Up to 100 hours of practical water 
41.24 	conditioning installation and servicing experience prior to becoming a registered unlicensed 
41.25 	individual may be applied to the practical experience requirement. However, none of this 
41.26 	practical experience may be applied if the unlicensed individual did not have any practical 
41.27 	experience in the 12-month period immediately prior to becoming a registered unlicensed 
41.28 	individual.
41.29 		Subd. 3.Registration, renewals, and fees. An unlicensed individual may register by 
41.30 	completing and submitting to the commissioner an application form provided by the 
41.31 	commissioner, with all fees required by section 326B.58. A completed application form 
41.32 	must state the date, the individual's age, schooling, previous experience and employer, and 
41.33 	other information required by the commissioner. The plumbing board may prescribe rules, 
41.34 	not inconsistent with this section, for the registration of unlicensed individuals. Applications 
42.1 	for initial registration may be submitted at any time. Registration must be renewed annually 
42.2 	and shall be for the period from July 1 of each year to June 30 of the following year.

42.3 	Sec. 15. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
42.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
42.5 	the meanings given them.
42.6 	(b) "Gross annual receipts" means the total amount derived from residential contracting 
42.7 	or residential remodeling activities, regardless of where the activities are performed, and 
42.8 	must not be reduced by costs of goods sold, expenses, losses, or any other amount.
42.9 	(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
42.10 	(d) "Residential real estate" means a new or existing building constructed for habitation 
42.11 	by one to four families, and includes detached garages intended for storage of vehicles 
42.12 	associated with the residential real estate.
42.13 	(e) "Fund" means the contractor recovery fund.
42.14 	(f) "Owner" when used in connection with real property, means a person who has any 
42.15 	legal or equitable interest in real property and includes a condominium or townhome 
42.16 	association that owns common property located in a condominium building or townhome 
42.17 	building or an associated detached garage. Owner does not include any real estate developer 
42.18 	or any owner using, or intending to use, the property for a business purpose and not as 
42.19 	owner-occupied residential real estate.

42.20 	Sec. 16. Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:
42.21 		Subd. 5.Payment limitations.  The commissioner shall not pay compensation from the 
42.22 	fund to an owner or a lessee in an amount greater than $75,000 per licensee. The 
42.23 	commissioner shall not pay compensation from the fund to owners and lessees in an amount 
42.24 	that totals more than $150,000 $300,000 per licensee. The commissioner shall only pay 
42.25 	compensation from the fund for a final judgment that is based on a contract directly between 
42.26 	the licensee and the homeowner or lessee that was entered into prior to the cause of action 
42.27 	and that requires licensure as a residential building contractor or residential remodeler.

42.28 	Sec. 17.  REPEALER.
 42.29 	Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

43.1 	ARTICLE 3
43.2 	DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

43.3 	Section 1. Minnesota Statutes 2016, section 116J.395, subdivision 7, is amended to read:
43.4 		Subd. 7.Limitation. (a) No grant awarded under this section may fund more than 50 
43.5 	percent of the total cost of a project in an underserved area.
43.6 	(b) Grants awarded for projects in unserved areas require a 35 percent match.
43.7 	(c) Grants awarded to a single project under this section must not exceed $5,000,000
43.8 	$3,000,000.

43.9 	Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:
43.10 		Subd. 2.Administration.  (a) Except as otherwise provided in this section, the 
43.11 	commissioner shall administer the fund as part of the Small Cities Development Block 
43.12 	Grant Program and funds shall be made available to local communities and recognized 
43.13 	Indian tribal governments in accordance with the rules adopted for economic development 
43.14 	grants in the small cities community development block grant program. All units of general 
43.15 	purpose local government are eligible applicants for Minnesota investment funds. The 
43.16 	commissioner may provide forgivable loans directly to a private enterprise and not require 
43.17 	a local community or recognized Indian tribal government application other than a resolution 
43.18 	supporting the assistance.
43.19 	(b) Eligible applicants for the state-funded portion of the fund also include development 
43.20 	authorities as defined in section 116J.552, subdivision 4, provided that the governing body 
43.21 	of the municipality approves, by resolution, the application of the development authority. 
43.22 	A local government entity may receive more than one award in a fiscal year. The 
43.23 	commissioner may also make funds available within the department for eligible expenditures 
43.24 	under subdivision 3, clause (2).
43.25 	(c) A home rule charter or statutory city, county, or town may loan or grant money 
43.26 	received from repayment of funds awarded under this section to a regional development 
43.27 	commission, other regional entity, or statewide community capital fund as determined by 
43.28 	the commissioner, to capitalize or to provide the local match required for capitalization of 
43.29 	a regional or statewide revolving loan fund.

44.1 	Sec. 3. Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision 
44.2 	to read:
44.3 		Subd. 10.Transfer. The commissioner may transfer up to $2,000,000 of a fiscal year's 
44.4 	appropriation between the Minnesota job creation fund program and Minnesota investment 
44.5 	fund to meet business demand.

44.6 	Sec. 4. Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:
44.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
44.8 	the meanings given.
44.9 	(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement 
44.10 	under section 116J.994 that must include, but is not limited to: specification of the duration 
44.11 	of the agreement, job goals and a timeline for achieving those goals over the duration of 
44.12 	the agreement, construction and other investment goals and a timeline for achieving those 
44.13 	goals over the duration of the agreement, and the value of benefits the firm may receive 
44.14 	following achievement of capital investment and employment goals. The local government 
44.15 	and business must report to the commissioner on the business performance using the forms 
44.16 	developed by the commissioner.
44.17 	(c) "Business" means an individual, corporation, partnership, limited liability company, 
44.18 	association, or other entity.
44.19 	(d) "Capital investment" means money that is expended for the purpose of building or 
44.20 	improving real fixed property where employees under paragraphs (g) and (h) are or will be 
44.21 	employed and also includes construction materials, services, and supplies, and the purchase 
44.22 	and installation of equipment and machinery as provided under subdivision 4, paragraph 
44.23 	(b), clause (5).
44.24 	(e) "Commissioner" means the commissioner of employment and economic development.
44.25 	(f) "Minnesota job creation fund business" means a business that is designated by the 
44.26 	commissioner under subdivision 3.
44.27 	(g) "Minority person" means a person belonging to a racial or ethnic minority as defined 
44.28 	in Code of Federal Regulations, title 49, section 23.5.
44.29 	(g) (h) "New full-time employee" means an employee who:
44.30 	(1) begins work at a Minnesota job creation fund business facility noted in a business 
44.31 	subsidy agreement and following the designation as a job creation fund business; and
44.32 	(2) has expected work hours of at least 2,080 hours annually.
45.1 	(i) "Persons with disabilities" means an individual with a disability, as defined under 
45.2 	the Americans with Disabilities Act, United States Code, title 42, section 12102.
45.3 	(h) (j) "Retained job" means a full-time position:
45.4 	(1) that existed at the facility prior to the designation as a job creation fund business; 
45.5 	and
45.6 	(2) has expected work hours of at least 2,080 hours annually.
45.7 	(k) "Veteran" means a veteran as defined in section 197.447.
45.8 	(i) (l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

45.9 	Sec. 5. Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:
45.10 		Subd. 3.Minnesota job creation fund business designation; requirements. (a) To 
45.11 	receive designation as a Minnesota job creation fund business, a business must satisfy all 
45.12 	of the following conditions:
45.13 	(1) the business is or will be engaged in, within Minnesota, one of the following as its 
45.14 	primary business activity:
45.15 	(i) manufacturing;
45.16 	(ii) warehousing;
45.17 	(iii) distribution;
45.18 	(iv) information technology;
45.19 	(v) finance;
45.20 	(vi) insurance; or
45.21 	(vii) professional or technical services;
45.22 	(2) the business must not be primarily engaged in lobbying; gambling; entertainment; 
45.23 	professional sports; political consulting; leisure; hospitality; or professional services provided 
45.24 	by attorneys, accountants, business consultants, physicians, or health care consultants, or 
45.25 	primarily engaged in making retail sales to purchasers who are physically present at the 
45.26 	business's location;
45.27 	(3) the business must enter into a binding construction and job creation business subsidy 
45.28 	agreement with the commissioner to expend directly, or ensure expenditure by or in 
45.29 	partnership with a third party constructing or managing the project, at least $500,000 in 
45.30 	capital investment in a capital investment project that includes a new, expanded, or remodeled 
46.1 	facility within one year following designation as a Minnesota job creation fund business or 
46.2 	$250,000 if the project is located outside the metropolitan area as defined in section 200.02, 
46.3 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
46.4 	women, or persons with a disability; and:
46.5 	(i) create at least ten new full-time employee positions within two years of the benefit 
46.6 	date following the designation as a Minnesota job creation fund business or five new full-time 
46.7 	employee positions within two years of the benefit date if the project is located outside the 
46.8 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
46.9 	is cumulatively owned by minorities, veterans, women, or persons with a disability; or
46.10 	(ii) expend at least $25,000,000, which may include the installation and purchase of 
46.11 	machinery and equipment, in capital investment and retain at least 200 employees for projects 
46.12 	located in the metropolitan area as defined in section 200.02, subdivision 24, and 75 
46.13 	employees for projects located outside the metropolitan area;
46.14 	(4) positions or employees moved or relocated from another Minnesota location of the 
46.15 	Minnesota job creation fund business must not be included in any calculation or determination 
46.16 	of job creation or new positions under this paragraph; and
46.17 	(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the 
46.18 	working hours of an employee for the purpose of hiring an individual to satisfy job creation 
46.19 	goals under this subdivision.
46.20 	(b) Prior to approving the proposed designation of a business under this subdivision, the 
46.21 	commissioner shall consider the following:
46.22 	(1) the economic outlook of the industry in which the business engages;
46.23 	(2) the projected sales of the business that will be generated from outside the state of 
46.24 	Minnesota;
46.25 	(3) how the business will build on existing regional, national, and international strengths 
46.26 	to diversify the state's economy;
46.27 	(4) whether the business activity would occur without financial assistance;
46.28 	(5) whether the business is unable to expand at an existing Minnesota operation due to 
46.29 	facility or land limitations;
46.30 	(6) whether the business has viable location options outside Minnesota;
46.31 	(7) the effect of financial assistance on industry competitors in Minnesota;
46.32 	(8) financial contributions to the project made by local governments; and
47.1 	(9) any other criteria the commissioner deems necessary.
47.2 	(c) Upon receiving notification of local approval under subdivision 2, the commissioner 
47.3 	shall review the determination by the local government and consider the conditions listed 
47.4 	in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local 
47.5 	area to designate a business as a Minnesota job creation fund business.
47.6 	(d) If the commissioner designates a business as a Minnesota job creation fund business, 
47.7 	the business subsidy agreement shall include the performance outcome commitments and 
47.8 	the expected financial value of any Minnesota job creation fund benefits.
47.9 	(e) The commissioner may amend an agreement once, upon request of a local government 
47.10 	on behalf of a business, only if the performance is expected to exceed thresholds stated in 
47.11 	the original agreement.
47.12 	(f) A business may apply to be designated as a Minnesota job creation fund business at 
47.13 	the same location more than once only if all goals under a previous Minnesota job creation 
47.14 	fund agreement have been met and the agreement is completed.

47.15 	Sec. 6. Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:
47.16 		Subd. 4.Certification; benefits. (a) The commissioner may certify a Minnesota job 
47.17 	creation fund business as eligible to receive a specific value of benefit under paragraphs (b) 
47.18 	and (c) when the business has achieved its job creation and capital investment goals noted 
47.19 	in its agreement under subdivision 3.
47.20 	(b) A qualified Minnesota job creation fund business may be certified eligible for the 
47.21 	benefits in this paragraph for up to five years for projects located in the metropolitan area 
47.22 	as defined in section 200.02, subdivision 24, and seven years for projects located outside 
47.23 	the metropolitan area, as determined by the commissioner when considering the best interests 
47.24 	of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a), 
47.25 	clause (3), or section 16B.98, subdivision 5, paragraph (b), grant agreements for projects 
47.26 	located outside the metropolitan area may be for up to seven years in length. The eligibility 
47.27 	for the following benefits begins the date the commissioner certifies the business as a 
47.28 	qualified Minnesota job creation fund business under this subdivision:
47.29 	(1) up to five percent rebate for projects located in the metropolitan area as defined in 
47.30 	section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan 
47.31 	area, on capital investment on qualifying purchases as provided in subdivision 5 with the 
47.32 	total rebate for a project not to exceed $500,000;
48.1 	(2) an award of up to $500,000 based on full-time job creation and wages paid as provided 
48.2 	in subdivision 6 with the total award not to exceed $500,000;
48.3 	(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards 
48.4 	are allowable for projects that have at least $25,000,000 in capital investment and 200 new 
48.5 	employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75 
48.6 	new employees for projects located outside the metropolitan area;
48.7 	(4) up to $1,000,000 in capital investment rebates are allowable for projects that have 
48.8 	at least $25,000,000 in capital investment and 200 retained employees for projects located 
48.9 	in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for 
48.10 	projects located outside the metropolitan area; and
48.11 	(5) for clauses (3) and (4) only, the capital investment expenditure requirements may 
48.12 	include the installation and purchases of machinery and equipment. These expenditures are 
48.13 	not eligible for the capital investment rebate provided under subdivision 5.
48.14 	(c) The job creation award may be provided in multiple years as long as the qualified 
48.15 	Minnesota job creation fund business continues to meet the job creation goals provided for 
48.16 	in its agreement under subdivision 3 and the total award does not exceed $500,000 except 
48.17 	as provided under paragraph (b), clauses (3) and (4).
48.18 	(d) No rebates or award may be provided until the Minnesota job creation fund business 
48.19 	or a third party constructing or managing the project has at least $500,000 in capital 
48.20 	investment in the project and at least ten full-time jobs have been created and maintained 
48.21 	for at least one year or the retained employees, as provided in paragraph (b), clause (4), 
48.22 	remain for at least one year. The agreement may require additional performance outcomes 
48.23 	that need to be achieved before rebates and awards are provided. If fewer retained jobs are 
48.24 	maintained, but still above the minimum under this subdivision, the capital investment 
48.25 	award shall be reduced on a proportionate basis.
48.26 	(e) The forms needed to be submitted to document performance by the Minnesota job 
48.27 	creation fund business must be in the form and be made under the procedures specified by 
48.28 	the commissioner. The forms shall include documentation and certification by the business 
48.29 	that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, 
48.30 	and other provisions as specified by the commissioner.
48.31 	(f) Minnesota job creation fund businesses must pay each new full-time employee added 
48.32 	pursuant to the agreement total compensation, including benefits not mandated by law, that 
48.33 	on an annualized basis is equal to at least 110 percent of the federal poverty level for a 
48.34 	family of four.
49.1 	(g) A Minnesota job creation fund business must demonstrate reasonable progress on 
49.2 	its capital investment expenditures within six months following designation as a Minnesota 
49.3 	job creation fund business to ensure that the capital investment goal in the agreement under 
49.4 	subdivision 1 will be met. Businesses not making reasonable progress will not be eligible 
49.5 	for benefits under the submitted application and will need to work with the local government 
49.6 	unit to resubmit a new application and request to be a Minnesota job creation fund business. 
49.7 	Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not 
49.8 	be considered a default of the business subsidy agreement.

49.9 	Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:
49.10 		Subd. 6.Job creation award. (a) A qualified Minnesota job creation fund business is 
49.11 	eligible for an annual award for each new job created and maintained by the business using 
49.12 	the following schedule: $1,000 for each job position paying annual wages at least $26,000 
49.13 	but less than $35,000; $2,000 for each job position paying at least $35,000 but less than 
49.14 	$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals 
49.15 	under the agreement provided under subdivision 1. These awards are increased by $1,000 
49.16 	if the business is located outside the metropolitan area as defined in section 200.02, 
49.17 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
49.18 	women, or persons with a disability.
49.19 	(b) The job creation award schedule must be adjusted annually using the percentage 
49.20 	increase in the federal poverty level for a family of four.
49.21 	(c) Minnesota job creation fund businesses seeking an award credit provided under 
49.22 	subdivision 4 must submit forms and applications to the Department of Employment and 
49.23 	Economic Development as prescribed by the commissioner.

49.24 	Sec. 8. Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:
49.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
49.26 	the meanings given them in this subdivision.
49.27 	(b) "Commissioner" means the commissioner of employment and economic development.
49.28 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time 
49.29 	employment ceased or was working in the state at the time employment ceased and:
49.30 	(1) has been permanently separated or has received a notice of permanent separation 
49.31 	from public or private sector employment and is eligible for or has exhausted entitlement 
49.32 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
50.1 	(2) has been long-term unemployed and has limited opportunities for employment or 
50.2 	reemployment in the same or a similar occupation in the area in which the individual resides, 
50.3 	including older individuals who may have substantial barriers to employment by reason of 
50.4 	age;
50.5 	(3) has been terminated or has received a notice of termination of employment as a result 
50.6 	of a plant closing or a substantial layoff at a plant, facility, or enterprise;
50.7 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
50.8 	result of general economic conditions in the community in which the individual resides or 
50.9 	because of natural disasters;
50.10 	(5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
50.11 	(6) (5) is a veteran as defined by section 197.447, has been discharged or released from 
50.12 	active duty under honorable conditions within the last 36 months, and (i) is unemployed or 
50.13 	(ii) is employed in a job verified to be below the skill level and earning capacity of the 
50.14 	veteran;
50.15 	(7) (6) is an individual determined by the United States Department of Labor to be 
50.16 	covered by trade adjustment assistance under United States Code, title 19, sections 2271 to 
50.17 	2331, as amended; or
50.18 	(8) (7) is a displaced homemaker. A "displaced homemaker" is an individual who has 
50.19 	spent a substantial number of years in the home providing homemaking service and (i) has 
50.20 	been dependent upon the financial support of another; and now due to divorce, separation, 
50.21 	death, or disability of that person, must find employment to self support; or (ii) derived the 
50.22 	substantial share of support from public assistance on account of dependents in the home 
50.23 	and no longer receives such support. To be eligible under this clause, the support must have 
50.24 	ceased while the worker resided in Minnesota.
50.25 	For the purposes of this section, "dislocated worker" does not include an individual who 
50.26 	was an employee, at the time employment ceased, of a political committee, political fund, 
50.27 	principal campaign committee, or party unit, as those terms are used in chapter 10A, or an 
50.28 	organization required to file with the federal elections commission.
50.29 	(d) "Eligible organization" means a state or local government unit, nonprofit organization, 
50.30 	community action agency, business organization or association, or labor organization.
50.31 	(e) "Plant closing" means the announced or actual permanent shutdown of a single site 
50.32 	of employment, or one or more facilities or operating units within a single site of 
50.33 	employment.
51.1 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a 
51.2 	result of a plant closing, and which results in an employment loss at a single site of 
51.3 	employment during any 30-day period for at least 50 employees excluding those employees 
51.4 	that work less than 20 hours per week.

51.5 	Sec. 9. Minnesota Statutes 2016, section 116L.665, is amended to read:
51.6 	116L.665 WORKFORCE DEVELOPMENT COUNCIL BOARD.
51.7 		Subdivision 1.Creation. The governor's Workforce Development Council is created 
51.8 	under the authority of the Workforce Investment Act, United States Code, title 29, section 
51.9 	2801, et seq. Local workforce development councils are authorized under the Workforce 
51.10 	Investment Act. The governor's Workforce Development Council serves as Minnesota's 
51.11 	Workforce Investment Board for the purposes of the federal Workforce Investment Act.
51.12 	Board serves as Minnesota's state workforce development board for the purposes of the 
51.13 	federal Workforce Innovation and Opportunity Act, United States Code, title 29, section 
51.14 	3111, and must perform the duties under that act.
51.15 		Subd. 2.Membership. (a) The governor's Workforce Development Council Board is 
51.16 	composed of 31 members appointed by the governor. The members may be removed pursuant 
51.17 	to section 15.059. In selecting the representatives of the council board, the governor shall 
51.18 	ensure that 50 percent a majority of the members come from nominations provided by local 
51.19 	workforce councils. Local education representatives shall come from nominations provided 
51.20 	by local education to employment partnerships. The 31 members shall represent the following 
51.21 	sectors: the private sector, pursuant to United States Code, title 29, section 3111. For the 
51.22 	public members, membership terms, compensation of members, and removal of members 
51.23 	are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the 
51.24 	membership should be balanced as to gender and ethnic diversity.
51.25 	(a) State agencies: the following individuals shall serve on the council:
51.26 	(1) commissioner of the Minnesota Department of Employment and Economic 
51.27 	Development;
51.28 	(2) commissioner of the Minnesota Department of Education; and
51.29 	(3) commissioner of the Minnesota Department of Human Services.
51.30 	(b) Business and industry: six individuals shall represent the business and industry sectors 
51.31 	of Minnesota.
51.32 	(c) Organized labor: six individuals shall represent labor organizations of Minnesota.
52.1 	(d) Community-based organizations: four individuals shall represent community-based 
52.2 	organizations of Minnesota. Community-based organizations are defined by the Workforce 
52.3 	Investment Act as private nonprofit organizations that are representative of communities 
52.4 	or significant segments of communities and that have demonstrated expertise and 
52.5 	effectiveness in the field of workforce investment and may include entities that provide job 
52.6 	training services, serve youth, serve individuals with disabilities, serve displaced 
52.7 	homemakers, union-related organizations, employer-related nonprofit organizations, and 
52.8 	organizations serving nonreservation Indians and tribal governments.
52.9 	(e) Education: six individuals shall represent the education sector of Minnesota as follows:
52.10 	(1) one individual shall represent local public secondary education;
52.11 	(2) one individual shall have expertise in design and implementation of school-based 
52.12 	service-learning;
52.13 	(3) one individual shall represent leadership of the University of Minnesota;
52.14 	(4) one individual shall represent secondary/postsecondary vocational institutions;
52.15 	(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and 
52.16 	Universities; and
52.17 	(6) one individual shall have expertise in agricultural education.
52.18 	(f) Other: two individuals shall represent other constituencies including:
52.19 	(1) units of local government; and
52.20 	(2) applicable state or local programs.
52.21 	The speaker and the minority leader of the house of representatives shall each appoint 
52.22 	a representative to serve as an ex officio member of the council. The majority and minority 
52.23 	leaders of the senate shall each appoint a senator to serve as an ex officio member of the 
52.24 	council.
52.25 	The governor shall appoint one individual representing public libraries, one individual 
52.26 	with expertise in assisting women in obtaining employment in high-wage, high-demand, 
52.27 	nontraditional occupations, and one individual representing adult basic education programs 
52.28 	to serve as nonvoting advisors to the council.
52.29 	(b) No person shall serve as a member of more than one category described in paragraph 
52.30 	(a).
52.31 	(c) Voting members shall consist of the following:
53.1 	(1) the governor or the governor's designee;
53.2 	(2) two members of the house of representatives, one appointed by the speaker of the 
53.3 	house and one appointed by the minority leader of the house of representatives;
53.4 	(3) two members of the senate, one appointed by the senate majority leader and one 
53.5 	appointed by the senate minority leader;
53.6 	(4) a majority of the members must be representatives of businesses in the state appointed 
53.7 	by the governor who:
53.8 	(i) are owners of businesses, chief executives, or operating officers of businesses, or 
53.9 	other business executives or employers with optimum policy-making or hiring authority 
53.10 	and who, in addition, may be members of a local board under United States Code, title 29, 
53.11 	section 3122(b)(2)(A)(i);
53.12 	(ii) represent businesses, including small businesses, or organizations representing 
53.13 	businesses that provide employment opportunities that, at a minimum, include high-quality, 
53.14 	work-relevant training and development in in-demand industry sectors or occupations in 
53.15 	the state; and
53.16 	(iii) are appointed from individuals nominated by state business organizations and 
53.17 	business trade associations;
53.18 	(5) six representatives of labor organizations appointed by the governor, including:
53.19 	(i) representatives of labor organizations who have been nominated by state labor 
53.20 	federations; and
53.21 	(ii) a member of a labor organization or a training director from a joint labor organization;
53.22 	(6) commissioners of the state agencies with primary responsibility for core programs 
53.23 	identified within the state plan including:
53.24 	(i) the Department of Employment and Economic Development;
53.25 	(ii) the Department of Education; and
53.26 	(iii) the Department of Human Services;
53.27 	(7) two chief elected officials, appointed by the governor, collectively representing cities 
53.28 	and counties;
53.29 	(8) two representatives who are people of color or people with disabilities, appointed 
53.30 	by the governor, of community-based organizations that have demonstrated experience and 
54.1 	expertise in addressing the employment, training, or education needs of individuals with 
54.2 	barriers to employment; and
54.3 	(9) four officials responsible for education programs in the state, appointed by the 
54.4 	governor, including chief executive officers of community colleges and other institutions 
54.5 	of higher education, including:
54.6 	(i) the chancellor of the Minnesota State Colleges and Universities;
54.7 	(ii) the president of the University of Minnesota;
54.8 	(iii) a president from a private postsecondary school; and
54.9 	(iv) a representative of career and technical education.
54.10 	(d) The nonvoting members of the board shall be appointed by the governor and consist 
54.11 	of one of each of the following:
54.12 	(1) a representative of Adult Basic Education;
54.13 	(2) a representative of public libraries;
54.14 	(3) a person with expertise in women's economic security;
54.15 	(4) the chair or executive director of the Minnesota Workforce Council Association;
54.16 	(5) the commissioner of labor and industry;
54.17 	(6) the commissioner of the Office of Higher Education;
54.18 	(7) the commissioner of corrections;
54.19 	(8) the commissioner of management and budget;
54.20 	(9) two representatives of community-based organizations who are people of color or 
54.21 	people with disabilities who have demonstrated experience and expertise in addressing the 
54.22 	employment, training, and education needs of individuals with barriers to employment;
54.23 	(10) a representative of secondary, postsecondary, or career-technical education;
54.24 	(11) a representative of school-based service learning;
54.25 	(12) a representative of the Council on Asian-Pacific Minnesotans;
54.26 	(13) a representative of the Minnesota Council on Latino Affairs;
54.27 	(14) a representative of the Council for Minnesotans of African Heritage;
54.28 	(15) a representative of the Minnesota Indian Affairs Council;
54.29 	(16) a representative of the Minnesota State Council on Disability; and
55.1 	(17) a representative of the Office on the Economic Status of Women.
55.2 	(g) Appointment: (e) Each member shall be appointed for a term of three years from the 
55.3 	first day of January or July immediately following their appointment. Elected officials shall 
55.4 	forfeit their appointment if they cease to serve in elected office.
55.5 	(h) Members of the council are compensated as provided in section 15.059, subdivision 
55.6 	3.
55.7 		Subd. 2a.Council Board meetings; chair. (a) If compliance with section 13D.02 is 
55.8 	impractical, the Governor's Workforce Development Council may conduct a meeting of its 
55.9 	members by telephone or other electronic means so long as the following conditions are 
55.10 	met:
55.11 	(1) all members of the council participating in the meeting, wherever their physical 
55.12 	location, can hear one another and can hear all discussion and testimony;
55.13 	(2) members of the public present at the regular meeting location of the council can hear 
55.14 	clearly all discussion and testimony and all votes of members of the council and, if needed, 
55.15 	receive those services required by sections 15.44 and 15.441;
55.16 	(3) at least one member of the council is physically present at the regular meeting location; 
55.17 	and
55.18 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
55.19 	identified and recorded.
55.20 	(b) Each member of the council participating in a meeting by telephone or other electronic 
55.21 	means is considered present at the meeting for purposes of determining a quorum and 
55.22 	participating in all proceedings.
55.23 	(c) If telephone or other electronic means is used to conduct a meeting, the council, to 
55.24 	the extent practical, shall allow a person to monitor the meeting electronically from a remote 
55.25 	location. The council may require the person making such a connection to pay for 
55.26 	documented marginal costs that the council incurs as a result of the additional connection.
55.27 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
55.28 	emergency meeting, the council shall provide notice of the regular meeting location, of the 
55.29 	fact that some members may participate by telephone or other electronic means, and of the 
55.30 	provisions of paragraph (c). The timing and method of providing notice is governed by 
55.31 	section 13D.04.
56.1 	(a) The board shall hold regular in-person meetings at least quarterly and as often as 
56.2 	necessary to perform the duties outlined in the statement of authority and the board's bylaws. 
56.3 	Meetings shall be called by the chair. Special meetings may be called as needed. Notices 
56.4 	of all meetings shall be made at least 48 hours before the meeting date.
56.5 	(b) The governor shall designate a chair from among the appointed business representative 
56.6 	voting members. The chair shall approve an agenda for each meeting. Members shall submit 
56.7 	a written request for consideration of an agenda item no less than 24 hours in advance of 
56.8 	the meeting. Members of the public may submit a written request within 48 hours of a 
56.9 	meeting to be considered for inclusion in the agenda. Members of the public attending a 
56.10 	meeting of the board may address the board only with the approval or at the request of the 
56.11 	chair.
56.12 	(c) All meeting notices must be posted on the board's Web site. All meetings of the board 
56.13 	and committees must be open to the public. The board must make available to the public, 
56.14 	on a regular basis through electronic means and open meetings, information regarding the 
56.15 	activities of the board, information regarding membership, and, on request, minutes of 
56.16 	formal meetings of the board.
56.17 	(d) For the purpose of conducting business before the board at a duly called meeting, a 
56.18 	simple majority of the voting members, excluding any vacancies, constitutes a quorum.
56.19 		Subd. 3.Purpose; duties. The governor's Workforce Development Council shall replace 
56.20 	the governor's Job Training Council and assume all of its requirements, duties, and 
56.21 	responsibilities under the Workforce Investment Act. Additionally, the Workforce 
56.22 	Development Council shall assume the following duties and responsibilities:
56.23 	(a) Review the provision of services and the use of funds and resources under applicable 
56.24 	federal human resource programs and advise the governor on methods of coordinating the 
56.25 	provision of services and the use of funds and resources consistent with the laws and 
56.26 	regulations governing the programs. For purposes of this section, applicable federal and 
56.27 	state human resource programs mean the:
56.28 	(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;
56.29 	(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States 
56.30 	Code, title 20, section 2301, et seq.;
56.31 	(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;
56.32 	(4) Wagner-Peyser Act, United States Code, title 29, section 49;
56.33 	(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);
57.1 	(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp 
57.2 	Employment and Training Program, United States Code, title 7, section 2015(d)(4); and
57.3 	(7) programs defined in section 116L.19, subdivision 5.
57.4 	Additional federal and state programs and resources can be included within the scope 
57.5 	of the council's duties if recommended by the governor after consultation with the council.
57.6 	(b) Review federal, state, and local education, postsecondary, job skills training, and 
57.7 	youth employment programs, and make recommendations to the governor and the legislature 
57.8 	for establishing an integrated seamless system for providing education and work skills 
57.9 	development services to learners and workers of all ages.
57.10 	(c) Advise the governor on the development and implementation of statewide and local 
57.11 	performance standards and measures relating to applicable federal human resource programs 
57.12 	and the coordination of performance standards and measures among programs.
57.13 	(d) Promote education and employment transitions programs and knowledge and skills 
57.14 	of entrepreneurship among employers, workers, youth, and educators, and encourage 
57.15 	employers to provide meaningful work-based learning opportunities.
57.16 	(e) Evaluate and identify exemplary education and employment transitions programs 
57.17 	and provide technical assistance to local partnerships to replicate the programs throughout 
57.18 	the state.
57.19 	(f) Advise the governor on methods to evaluate applicable federal human resource 
57.20 	programs.
57.21 	(g) Sponsor appropriate studies to identify human investment needs in Minnesota and 
57.22 	recommend to the governor goals and methods for meeting those needs.
57.23 	(h) Recommend to the governor goals and methods for the development and coordination 
57.24 	of a human resource system in Minnesota.
57.25 	(i) Examine federal and state laws, rules, and regulations to assess whether they present 
57.26 	barriers to achieving the development of a coordinated human resource system.
57.27 	(j) Recommend to the governor and to the federal government changes in state or federal 
57.28 	laws, rules, or regulations concerning employment and training programs that present barriers 
57.29 	to achieving the development of a coordinated human resource system.
57.30 	(k) Recommend to the governor and to the federal government waivers of laws and 
57.31 	regulations to promote coordinated service delivery.
58.1 	(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic 
58.2 	plan which details methods for meeting Minnesota's human investment needs and for 
58.3 	developing and coordinating a state human resource system.
58.4 	(m) Provide the commissioner of employment and economic development and the 
58.5 	committees of the legislature with responsibility for economic development with 
58.6 	recommendations provided to the governor under this subdivision.
58.7 	(n) In consultation with local workforce councils and the Department of Employment 
58.8 	and Economic Development, develop an ongoing process to identify and address local gaps 
58.9 	in workforce services.
58.10 		Subd. 4.Executive committee duties. The executive committee must, with advice and 
58.11 	input of local workforce councils boards and other stakeholders as appropriate, develop 
58.12 	performance standards for the state workforce centers. By January 15, 2002 2019, and each 
58.13 	odd-numbered year thereafter, the executive committee shall submit a report to the senate 
58.14 	and house of representatives committees with jurisdiction over workforce development 
58.15 	programs regarding the performance and outcomes of the workforce centers. The report 
58.16 	must provide recommendations regarding workforce center funding levels and sources, 
58.17 	program changes, and administrative changes.
58.18 		Subd. 5.Subcommittees. The chair of the Workforce Development Council Board may 
58.19 	establish subcommittees in order to carry out the duties and responsibilities of the council
58.20 	board.
58.21 		Subd. 6.Staffing. The Department of commissioner of employment and economic 
58.22 	development must provide staff, including but not limited to professional, technical, and 
58.23 	clerical staff to the board necessary to perform the duties assigned to the Minnesota 
58.24 	Workforce Development Council. All staff report to the commissioner carry out the duties 
58.25 	of the board. The council may ask for assistance from other units ofAt the request of the 
58.26 	board, state government asdepartments and agencies must provide the board with the 
58.27 	assistance it requires in order to fulfill its duties and responsibilities.
58.28 		Subd. 7.Expiration. The council board expires if there is no federal funding for the 
58.29 	human resource programs within the scope of the council's board's duties.
58.30 		Subd. 8.Funding. The commissioner shall develop recommendations on a funding 
58.31 	formula for allocating Workforce Investment Act funds to the council with a minimum 
58.32 	allocation of employment and economic development must provide at least $350,000 per
58.33 	each fiscal year. The commissioner shall report the funding formula recommendations to 
59.1 	the legislature by January 15, 2011 from existing agency resources to the board for staffing 
59.2 	and administrative expenses.

59.3 	Sec. 10. Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read:
59.4 		Subd. 4.Low-income area. "Low-income area" means:
59.5 	(1) Minneapolis, St. Paul;
59.6 	(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2, 
59.7 	that have an average income a median income for a family of four that is below 80 percent 
59.8 	of the median income for a four-person family as of the latest report by the United States 
59.9 	Census Bureau; and
59.10 	(3) the area outside the metropolitan area.

59.11 	Sec. 11. Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read:
59.12 		Subd. 4.Reports. The board department shall submit an annual report to the legislature 
59.13 	of an accounting of loans made under section 116M.18, including information on loans 
59.14 	made, the number of jobs created by the program, the impact on low-income areas, and 
59.15 	recommendations concerning minority business development and jobs for persons in 
59.16 	low-income areas.

59.17 	Sec. 12. Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read:
59.18 		Subd. 1a.Statewide loans. To the extent there is sufficient eligible demand, loans shall 
59.19 	be made so that an approximately equal dollar amount of loans are made to businesses in 
59.20 	the metropolitan area as in the nonmetropolitan area. After September 30 March 31 of each 
59.21 	calendar fiscal year, the department may allow loans to be made anywhere in the state 
59.22 	without regard to geographic area.

59.23 	Sec. 13. Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read:
59.24 		Subd. 4.Business loan criteria. (a) The criteria in this subdivision apply to loans made 
59.25 	by nonprofit corporations under the program.
59.26 	(b) Loans must be made to businesses that are not likely to undertake a project for which 
59.27 	loans are sought without assistance from the program.
59.28 	(c) A loan must be used to support a business owned by a minority or a low-income 
59.29 	person, woman, veteran, or a person with disabilities. Priority must be given for loans to 
59.30 	the lowest income areas.
60.1 	(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.
60.2 	(e) The state contribution must be matched by at least an equal amount of new private 
60.3 	investment.
60.4 	(f) A loan may not be used for a retail development project.
60.5 	(g) The business must agree to work with job referral networks that focus on minority 
60.6 	and low-income applicants.
60.7 	(h) Up to ten percent of a loan's principal amount may be forgiven if the department 
60.8 	approves and the borrower has met lender criteria including being current with all payments.

60.9 	Sec. 14. Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read:
60.10 		Subd. 4a.Microenterprise loan. (a) Program grants may be used to make microenterprise 
60.11 	loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans 
60.12 	are subject to this section except that:
60.13 	(1) they may also be made to qualified retail businesses;
60.14 	(2) they may be made for a minimum of $5,000 and a maximum of $35,000;
60.15 	(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum 
60.16 	of $50,000; and
60.17 	(4) they do not require a match.
60.18 	(b) Up to ten percent of a loan's principal amount may be forgiven if the department 
60.19 	approves and the borrower has met lender criteria including being current with all payments.

60.20 	Sec. 15. Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read:
60.21 		Subd. 8.Reporting requirements. A nonprofit corporation that receives a program 
60.22 	grant shall:
60.23 	(1) submit an annual report to the board and department by March 30 February 15 of 
60.24 	each year that includes a description of businesses supported by the grant program, an 
60.25 	account of loans made during the calendar year, the program's impact on minority business 
60.26 	enterprises and job creation for minority persons and low-income persons, the source and 
60.27 	amount of money collected and distributed by the program, the program's assets and 
60.28 	liabilities, and an explanation of administrative expenses; and
61.1 	(2) provide for an independent annual audit to be performed in accordance with generally 
61.2 	accepted accounting practices and auditing standards and submit a copy of each annual 
61.3 	audit report to the department.

61.4 	Sec. 16. Laws 2016, chapter 189, article 7, section 2, subdivision 2, is amended to read:

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

61.6	Appropriations by Fund
	
61.7	General
	-0-
	7,271,000
	
61.8
61.9	Workforce 
Development
	-0-
	750,000
	
61.10 	(a) $9,000,000 in fiscal year 2017 is a onetime 
61.11 	reduction in the general fund appropriation 
61.12 	for the Minnesota investment fund under 
61.13 	Minnesota Statutes, section 116J.8731. The 
61.14 	base funding for this purpose is $11,000,000 
61.15 	in fiscal year 2018 and each fiscal year 
61.16 	thereafter.
61.17 	(b) $11,500,000 in fiscal year 2017 is a 
61.18 	onetime reduction in the general fund 
61.19 	appropriation for the Minnesota job creation 
61.20 	fund under Minnesota Statutes, section 
61.21 	116J.8748. The base funding for this program 
61.22 	is $6,500,000 in fiscal year 2018 and each 
61.23 	fiscal year thereafter.
61.24 	(c) $2,000,000 in fiscal year 2017 is for the 
61.25 	redevelopment program under Minnesota 
61.26 	Statutes, section 116J.571. This is a onetime 
61.27 	appropriation.
61.28 	(d) $1,220,000 in fiscal year 2017 is for a 
61.29 	grant to the Duluth North Shore Sanitary 
61.30 	District to retire debt of the district in order to 
61.31 	bring the district's monthly wastewater rates 
61.32 	in line with those of similarly situated facilities 
61.33 	across the state. This is a onetime 
61.34 	appropriation.
62.1 	(e) $300,000 in fiscal year 2017 is from the 
62.2 	workforce development fund for expansion of 
62.3 	business assistance services provided by 
62.4 	business development specialists located in 
62.5 	the Northwest Region, Northeast Region, West 
62.6 	Central Region, Southwest Region, Southeast 
62.7 	Region, and Twin Cites Metro Region offices 
62.8 	established throughout the state. Funds under 
62.9 	this section may be used to provide services 
62.10 	including, but not limited to, business 
62.11 	start-ups; expansion; location or relocation; 
62.12 	finance; regulatory and permitting assistance; 
62.13 	and other services determined by the 
62.14 	commissioner. The commissioner may also 
62.15 	use funds under this section to increase the 
62.16 	number of business development specialists 
62.17 	in each region of the state, increase and expand 
62.18 	the services provided through each regional 
62.19 	office, and publicize the services available and 
62.20 	provide outreach to communities in each 
62.21 	region regarding services and assistance 
62.22 	available through the business development 
62.23 	specialist program. This is a onetime 
62.24 	appropriation.
62.25 	(f) $50,000 in fiscal year 2017 is from the 
62.26 	workforce development fund to enhance the 
62.27 	outreach and public awareness activities of 
62.28 	the Bureau of Small Business under Minnesota 
62.29 	Statutes, section 116J.68. This is a onetime 
62.30 	appropriation.
62.31 	(g) $100,000 in fiscal year 2017 is from the 
62.32 	general fund for an easy-to-understand manual 
62.33 	to instruct aspiring business owners in how to 
62.34 	start a child care business. The commissioner 
62.35 	shall work in consultation with relevant state 
63.1 	and local agencies and affected stakeholders 
63.2 	to produce the manual. The manual must be 
63.3 	made available electronically to interested 
63.4 	persons. This is a onetime appropriation and 
63.5 	is available until June 30, 2019.
63.6 	(h) $2,500,000 in fiscal year 2017 is for grants 
63.7 	to initiative foundations to provide financing 
63.8 	for business startups, expansions, and 
63.9 	maintenance; and for business ownership 
63.10 	transition and succession. This is a onetime 
63.11 	appropriation. Of the amount appropriated:
63.12 	(1) $357,000 is for a grant to the Southwest 
63.13 	Initiative Foundation;
63.14 	(2) $357,000 is for a grant to the West Central 
63.15 	Initiative Foundation;
63.16 	(3) $357,000 is for a grant to the Southern 
63.17 	Minnesota Initiative Foundation;
63.18 	(4) $357,000 is for a grant to the Northwest 
63.19 	Minnesota Foundation;
63.20 	(5) $357,000 is for a grant to the Initiative 
63.21 	Foundation;
63.22 	(6) $357,000 is for a grant to the Northland 
63.23 	Foundation; and
63.24 	(7) $357,000 is for a grant for the Minnesota 
63.25 	emerging entrepreneur program under 
63.26 	Minnesota Statutes, chapter 116M. Funds 
63.27 	available under this clause are for deposit in 
63.28 	the emerging entrepreneur program special 
63.29 	revenue fund account created under Minnesota 
63.30 	Statutes, chapter 116M, and are available until 
63.31 	spent and must be allocated as follows:
64.1 	(i) 50 percent of the funds must be allocated 
64.2 	for projects in the counties of Dakota, Ramsey, 
64.3 	and Washington; and
64.4 	(ii) 50 percent of the funds must be allocated 
64.5 	for projects in the counties of Anoka, Carver, 
64.6 	Hennepin, and Scott.
64.7 	(i) $600,000 in fiscal year 2017 is for a grant 
64.8 	to a city of the second class that is designated 
64.9 	as an economically depressed area by the 
64.10 	United States Department of Commerce for 
64.11 	economic development, redevelopment, and 
64.12 	job creation programs and projects. This is a 
64.13 	onetime appropriation and is available until 
64.14 	June 30, 2019.
64.15 	(j) $4,500,000 in fiscal year 2017 is for a grant 
64.16 	to the Minnesota Film and TV Board for the 
64.17 	film production jobs program under Minnesota 
64.18 	Statutes, section 116U.26. This appropriation 
64.19 	is in addition to the appropriation in Laws 
64.20 	2015, First Special Session chapter 1, article 
64.21 	1, section 2, subdivision 2. This is a onetime 
64.22 	appropriation.
64.23 	(k) $3,651,000 in fiscal year 2017 is from the 
64.24 	general fund for a grant to Mille Lacs County 
64.25 	to develop and operate the Lake Mille Lacs 
64.26 	area economic relief program established in 
64.27 	section 45. This is a onetime appropriation.
64.28 	(l) $500,000 in fiscal year 2017 is from the 
64.29 	general fund for grants to local communities 
64.30 	outside of the metropolitan area as defined 
64.31 	under Minnesota Statutes, section 473.121, 
64.32 	subdivision 2, to increase the supply of quality 
64.33 	child care providers in order to support 
64.34 	regional economic development. Grant 
65.1 	recipients must match state funds on a 
65.2 	dollar-for-dollar basis. Grant funds available 
65.3 	under this section must be used to implement 
65.4 	solutions to reduce the child care shortage in 
65.5 	the state, including but not limited to funding 
65.6 	for child care business start-up or expansion, 
65.7 	training, facility modifications or 
65.8 	improvements required for licensing, and 
65.9 	assistance with licensing and other regulatory 
65.10 	requirements. In awarding grants, the 
65.11 	commissioner must give priority to 
65.12 	communities in greater Minnesota that have 
65.13 	documented a shortage of child care providers 
65.14 	in the area. This is a onetime appropriation 
65.15 	and is available until June 30, 2019.
65.16 	By September 30, 2017, grant recipients must 
65.17 	report to the commissioner on the outcomes 
65.18 	of the grant program, including but not limited 
65.19 	to the number of new providers, the number 
65.20 	of additional child care provider jobs created, 
65.21 	the number of additional child care slots, and 
65.22 	the amount of local funds invested.
65.23 	By January 1, 2018, the commissioner must 
65.24 	report to the standing committees of the 
65.25 	legislature having jurisdiction over child care 
65.26 	and economic development on the outcomes 
65.27 	of the program to date.
65.28 	(m) $100,000 in fiscal year 2017 is from the 
65.29 	general fund for a grant to the city of Madelia 
65.30 	to provide match funding for a federal 
65.31 	Economic Development Agency technical 
65.32 	assistance grant. This is a onetime 
65.33 	appropriation.
66.1 	(n) $10,000,000 in fiscal year 2017 is for 
66.2 	deposit in the Minnesota 21st century fund. 
66.3 	This is a onetime appropriation.
66.4 	(o) $400,000 in fiscal year 2017 is from the 
66.5 	workforce development fund for grants to 
66.6 	small business development centers under 
66.7 	Minnesota Statutes, section 116J.68. Funds 
66.8 	made available under this section may be used 
66.9 	to match funds under the federal Small 
66.10 	Business Development Center (SBDC) 
66.11 	program under United States Code, title 15, 
66.12 	section 648, provide consulting and technical 
66.13 	services, or to build additional SBDC network 
66.14 	capacity to serve entrepreneurs and small 
66.15 	businesses. The commissioner shall allocate 
66.16 	funds equally among the nine regional centers 
66.17 	and lead center. This is a onetime 
66.18 	appropriation.
66.19 	(p) $2,600,000 in fiscal year 2017 is for a 
66.20 	transfer to the Board of Regents of the 
66.21 	University of Minnesota for academic and 
66.22 	applied research through MnDRIVE at the 
66.23 	Natural Resources Research Institute to 
66.24 	develop new technologies that enhance the 
66.25 	long-term viability of the Minnesota mining 
66.26 	industry. The research must be done in 
66.27 	consultation with the Mineral Coordinating 
66.28 	Committee established by Minnesota Statutes, 
66.29 	section 93.0015. This is a onetime transfer.
66.30 	(q) Of the amount appropriated in fiscal year 
66.31 	2017 for the Minnesota Investment Fund in 
66.32 	Laws 2015, First Special Session chapter 1, 
66.33 	article 1, section 2, subdivision 2, paragraph 
66.34 	(a), $450,000 is for a grant to the Lake 
66.35 	Superior-Poplar River Water District to 
67.1 	acquire interests in real property, engineer, 
67.2 	design, permit, and construct infrastructure to 
67.3 	transport and treat water from Lake Superior 
67.4 	through the Poplar River Valley to serve 
67.5 	domestic, irrigation, commercial, stock 
67.6 	watering, and industrial water users. This grant 
67.7 	does not require a local match. This is a 
67.8 	onetime appropriation. This amount is 
67.9 	available until June 30, 2019.
67.10 	(r) $500,000 is for the Minnesota emerging 
67.11 	entrepreneur program under Minnesota 
67.12 	Statutes, section 116M.18. Of this amount, up 
67.13 	to five percent is for administration and 
67.14 	monitoring of the program. For fiscal year 
67.15 	2018 and thereafter, the base amount is 
67.16 	$750,000 per year. Funds available under this 
67.17 	paragraph are for deposit in the emerging 
67.18 	entrepreneur program special revenue fund 
67.19 	account created under Minnesota Statutes, 
67.20 	chapter 116M, and are available until spent.

67.21 	EFFECTIVE DATE. This section is effective retroactively to July 1, 2016.

67.22 	Sec. 17. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA 
67.23 	INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 67.24 	(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or 
67.25 	statutory city, county, or town that has uncommitted money received from repayment of 
67.26 	funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20 
67.27 	percent of the balance of that money to the state general fund before June 30, 2018. Any 
67.28 	local entity that does so may then use the remaining 80 percent of the uncommitted money 
67.29 	as a general purpose aid for any lawful expenditure.
67.30 	(b) By February 15, 2019, a home rule charter or statutory city, county, or town that 
67.31 	exercises the option under paragraph (a) shall submit to the chairs of the legislative 
67.32 	committees with jurisdiction over economic development policy and finance an accounting 
67.33 	and explanation of the use and distribution of the funds.

68.1 	Sec. 18. GETTING TO WORK GRANT PROGRAM.
 68.2 		Subdivision 1.Creation. The commissioner of employment and economic development 
68.3 	shall make grants to nonprofit organizations to establish and operate programs under this 
68.4 	section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain 
68.5 	or maintain employment.
68.6 		Subd. 2.Qualified grantee. A grantee must:
68.7 	(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
68.8 	(2) at the time of application offer, or have the demonstrated capacity to offer, a motor 
68.9 	vehicle program that provides the services required under subdivision 3.
68.10 		Subd. 3.Program requirements. (a) A program must offer one or more of the following 
68.11 	services:
68.12 	(1) provision of new or used motor vehicles by gift, sale, or lease;
68.13 	(2) motor vehicle repair and maintenance services; or
68.14 	(3) motor vehicle loans.
68.15 	(b) In addition to the requirements of paragraph (a), a program must offer one or more 
68.16 	of the following services:
68.17 	(1) financial literacy education;
68.18 	(2) education on budgeting for vehicle ownership;
68.19 	(3) car maintenance and repair instruction;
68.20 	(4) credit counseling; or
68.21 	(5) job training related to motor vehicle maintenance and repair.
68.22 		Subd. 4.Application. Applications for a grant must be on a form provided by the 
68.23 	commissioner and on a schedule set by the commissioner. Applications must, in addition 
68.24 	to any other information required by the commissioner, include the following:
68.25 	(1) a detailed description of all services to be offered;
68.26 	(2) the area to be served;
68.27 	(3) the estimated number of program participants to be served by the grant; and
68.28 	(4) a plan for leveraging resources from partners that may include, but are not limited 
68.29 	to:
69.1 	(i) automobile dealers;
69.2 	(ii) automobile parts dealers;
69.3 	(iii) independent local mechanics and automobile repair facilities;
69.4 	(iv) banks and credit unions;
69.5 	(v) employers;
69.6 	(vi) employment and training agencies;
69.7 	(vii) insurance companies and agents;
69.8 	(viii) local workforce centers; and
69.9 	(ix) educational institutions including vocational institutions and jobs or skills training 
69.10 	programs.
69.11 		Subd. 5.Participant eligibility. (a) To be eligible to receive program services, a person 
69.12 	must:
69.13 	(1) have a household income at or below 200 percent of the federal poverty level;
69.14 	(2) be at least 22 years of age;
69.15 	(3) have a valid driver's license;
69.16 	(4) provide the grantee with proof of motor vehicle insurance; and
69.17 	(5) demonstrate to the grantee that a motor vehicle is required by the person to obtain 
69.18 	or maintain employment.
69.19 	(b) This subdivision does not preclude a grantee from imposing additional requirements, 
69.20 	not inconsistent with paragraph (a), for the receipt of program services.
69.21 		Subd. 6.Report to legislature. By February 15, 2019, the commissioner shall submit 
69.22 	a report to the chairs of the house of representatives and senate committees with jurisdiction 
69.23 	over workforce and economic development on program outcomes. At a minimum, the report 
69.24 	must include:
69.25 	(1) the total number of program participants;
69.26 	(2) the number of program participants who received each of the following:
69.27 	(i) provision of a motor vehicle;
69.28 	(ii) motor vehicle repair services; and
69.29 	(iii) motor vehicle loans;
70.1 	(3) the number of program participants who report that they or their children were able 
70.2 	to increase their participation in community activities such as after school programs, other 
70.3 	youth programs, church or civic groups, or library services as a result of participation in the 
70.4 	program; and
70.5 	(4) an analysis of the impact of the getting to work grant program on the employment 
70.6 	rate and wages of program participants.

70.7 	Sec. 19.  REPEALER.
 70.8 	Minnesota Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; and 4355.0500,
70.9 	are repealed.

APPENDIX 

Repealed Minnesota Statutes: S1937-1 

326B.89 CONTRACTOR RECOVERY FUND.Subd. 14.Accelerated compensation. 
(a) Payments made from the fund to compensate owners and lessees that do not exceed the jurisdiction limits for conciliation court matters as specified in section 491A.01 may be paid on an accelerated basis if all of the following requirements in paragraphs (b) and (c) have been satisfied. 

(b) The owner or the lessee has served upon the commissioner a verified application for compensation that complies with the requirements set out in subdivision 6 and the commissioner determines based on review of the application that compensation should be paid from the fund. The commissioner shall calculate the actual and direct out-of-pocket loss in the transaction, minus attorney fees, litigation costs or fees, interest on the loss and on the judgment obtained as a result of the loss, and any satisfaction of the judgment, and make payment to the owner or the lessee up to the conciliation court jurisdiction limits within 45 days after the owner or lessee serves the verified application. 

(c) The commissioner may pay compensation to owners or lessees that totals not more than $50,000 per licensee per fiscal year under this accelerated process. The commissioner may prorate the amount of compensation paid to owners or lessees under this subdivision if applications submitted by owners and lessees seek compensation in excess of $50,000 against a licensee. Any unpaid portion of a verified application that has been prorated under this subdivision shall be satisfied in the manner set forth in subdivision 9. 

4355.0100PURPOSE. 
The purpose of this chapter is to establish: 

A.
 procedures for use of the revolving loan fund under Minnesota Statutes, section 116M.18; 

B.
 procedures for the Minnesota emerging entrepreneur program to certify and enter into agreements with nonprofit corporations; and 

C.
 procedures for nonprofit corporations to make loans to eligible businesses. 

4355.0200DEFINITIONS. Subpart 1.Scope.  
For the purposes of this chapter the terms in this part and in Minnesota Statutes, section 116M.14, have the meanings given. 

Subp. 2.Grant agreements.  
"Grant agreements" means an agreement between the state and a nonprofit corporation through which the state provides funds to carry out specified programs, services, or activities. 

Subp. 3.Nonprofit corporation.  
"Nonprofit corporation" means a not-for-profit organization operating in one or more eligible cities and certified by the board to receive grants and disburse these funds in the nature of loans to qualifying businesses. 

Subp. 4.Nonprofit revolving loan fund.  
"Nonprofit revolving loan fund" means a board-certified revolving loan fund established by a nonprofit corporation to provide loans to new and expanding businesses in low-income areas. 

Subp. 5.Urban revolving loan fund.  
"Urban revolving loan fund" means a fund established by the board to make grants to nonprofit corporations. 

4355.0300BUSINESS LOANS BY NONPROFIT CORPORATIONS. Subpart 1.Generally.  
The board shall make available funds from the urban revolving loan fund for nonprofit corporations. The money awarded to each corporation shall be appropriated to its nonprofit revolving loan fund to be used to make loans to businesses in low-income areas. The funds are to be awarded on a project-by-project basis and must be matched by the corporation with an equal amount of money from sources other than government appropriations. 

Subp. 2.Grant agreement required.  
A grant agreement must be established with each nonprofit corporation certified for funding by the board. Grant agreements shall be valid for a period of one year from the time they are fully executed. Agreements may be renewed by the board based on an evaluation of the corporation's lending activities, a finding that the corporation has complied with all the provisions of the agreement, and has made substantive progress in achieving the goals described in its application. 

In the event that a grant agreement is not renewed, the corporation must continue to administer all loans it may have made under the provisions of the grant agreement and Minnesota Statutes, section 116M.18. 

Subp. 3.Application by nonprofit corporation.  
Any nonprofit corporation wishing to be certified as a participant in the urban challenge grant program must apply in a form prescribed by the board. The application must include: 

A.
 an assurance signed by the nonprofit corporation's chair that the applicant will comply with all applicable state and federal laws and requirements; 

B.
 a resolution passed by the applicant's board of directors approving the submission of an application and authorizing execution of the grant agreement if funds are made available; 

C.
 a plan demonstrating the applicant's eligibility pursuant to Minnesota Statutes, section 116M.18, the manner in which minority business enterprises will be assisted, the outcomes expected to result from the corporation's participation in the program; and 

D.
 any additional information that the board finds is necessary to clarify the applicant's ability to achieve the program's objectives. 

Subp. 4.Board review.  
The board shall certify the corporation if it has demonstrated that it fully meets the eligibility standards in Minnesota Statutes, section 116M.18, subdivision 2. 

Subp. 5.Disapproval of applications.  
In cases where the corporation fails to demonstrate that it has met the requirements in Minnesota Statutes, section 116M.18, subdivision 2, the board must disapprove the application. The commissioner shall inform the corporation of the board's decision, in writing, stating the reasons for the denial. 

Subp. 6.Contents of grant agreement.  
If certified, the board must enter into a grant agreement with the nonprofit corporation. The grant agreement must include provisions that: 

A.
 the corporation has established or will establish a board-certified revolving loan fund to provide loans to new and expanding businesses in low-income areas; 

B.
 the grant recipient will comply with all applicable state and federal laws, including the requirements of Minnesota Statutes, section 116M.18; and 

C.
 no grant funds shall be used to finance activities not approved in either the grant agreement or each loan agreement. 

Subp. 7.Other grant requirements.  
The following provisions apply to grants awarded: 

A.
 if it is determined that an improper use of the funds has occurred, the board shall take whatever action is necessary to recover improperly spent funds; 

B.
 grant recipients must return funds that are improperly expended; 

C.
 the board shall suspend payment of funds to recipients that are not in compliance with applicable state and federal laws, rules, and regulations; 

D.
 amendments to the grant agreement must be in writing; and 

E.
 the grant agreement may authorize the nonprofit corporation to be paid for administrative expenses out of the interest earned on loans it originates. 

Subp. 8.Corporation to make business loans.  
Any business may make an application to the nonprofit corporation for an urban challenge grant loan. The application must be in a form approved by the corporation and the board. The corporation must review the application and may give preliminary approval for the loan based on Minnesota Statutes, section 116M.18. The loan application must then be forwarded to the board for final approval. 

4355.0400BUSINESS LOANS BY THE BOARD. 
If the board receives a grant, gift, or loan, authorizing or requiring it to make business loans directly to qualifying businesses, and the board determines that businesses do not have access through a certified corporation, the board may receive applications for an urban challenge grant loan on the forms it prescribes. The board shall review applications and, based on the provisions of Minnesota Statutes, section 116M.18, and the business loan criteria in part 4355.0500, may approve them. If an application is denied, the commissioner shall inform the applicant as to the reasons for the denial. 

4355.0500BUSINESS LOAN CRITERIA. Subpart 1.Terms and conditions. A.
 The interest rate on a loan shall be established by the corporation, but may be no less than two percent per annum, nor more than ten percent per annum or one percent per annum above the prime rate, as published in the Wall Street Journal at the time the loan is closed, whichever is greater. 

B.
 The corporation may only charge the business all out-of-pocket administrative expenses connected with originating the loan at the time of closing. 

C.
 The loan funds may be used for normal business expenses including, but not limited to, site acquisition, new construction, renovation, machinery and equipment, and working capital. Loans may not be used to refinance a business or personal existing debt. 

Subp. 2.Loan repayment.  
For loans made by the board, all loan repayments must be deposited in the urban revolving loan fund for further distribution to businesses or nonprofit corporations pursuant to Minnesota Statutes, section 116M.18. 

For loans made by a nonprofit corporation, amounts equal to one-half of the principal and interest must be deposited in the urban revolving loan fund. The principal payments shall be made available to the corporation originating the loan in order to make additional loans, as long as the corporation remains certified and the grant agreement with the board is in effect. The board may return interest payments to the corporation in order to pay for the corporation's administrative expenses. 

The remaining amount of the loan repayment may be deposited in the nonprofit revolving loan fund created by the corporation which originated the loan for further distribution by the nonprofit corporation, or for other uses as may be determined by the corporation.