1.1 	A bill for an act
1.2 	relating to state government; appropriating money for commerce, energy, labor 
1.3 	and industry, and employment and economic development; making policy and 
1.4 	technical changes; modifying fees; requiring reports; amending regulation of 
1.5 	municipal electric utilities and rural electric cooperatives; modifying 
1.6 	telecommunications provisions; modifying the solar energy standard; amending 
1.7 	resource planning requirements; establishing a task force; establishing a youth 
1.8 	skills training program; modifying water conditioning installation requirements; 
1.9 	modifying job creation fund requirements for certain businesses; providing a 
1.10 	onetime exception to restrictions on use of Minnesota investment fund repayments; 
1.11 	creating the getting to work grant program;amending Minnesota Statutes 2016, 
1.12 	sections 45.0135, subdivision 6; 46.131, subdivision 7, by adding a subdivision; 
1.13 	53B.11, subdivision 1; 58.10, subdivision 1; 65B.84, subdivision 1; 80A.65, 
1.14 	subdivision 2; 116J.395, subdivision 7; 116J.8731, subdivision 2, by adding a 
1.15 	subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116L.17, subdivision 1; 116L.665; 
1.16 	116M.14, subdivision 4; 116M.17, subdivision 4; 116M.18, subdivisions 1a, 4, 
1.17 	4a, 8; 175.45; 216B.164, subdivisions 5, 9, by adding a subdivision; 216B.1691, 
1.18 	subdivision 2f; 216B.1694, subdivision 3; 216B.2422, subdivisions 2, 4; 216B.62, 
1.19 	subdivision 3b; 216C.435, by adding a subdivision; 237.01, by adding subdivisions; 
1.20 	237.295, by adding a subdivision; 239.101, subdivision 2; 297I.11, subdivision 2; 
1.21 	326B.092, subdivision 7; 326B.153, subdivision 1; 326B.37, by adding 
1.22 	subdivisions; 326B.435, subdivision 2; 326B.50, subdivision 3, by adding 
1.23 	subdivisions; 326B.55, subdivisions 2, 4; 326B.89, subdivisions 1, 5; Laws 2015, 
1.24 	First Special Session chapter 1, article 1, sections 2, subdivision 6; 5, subdivision 
1.25 	2; Laws 2016, chapter 189, article 7, section 2, subdivision 2; proposing coding 
1.26 	for new law in Minnesota Statutes, chapters 175; 237; 326B; repealing Minnesota 
1.27 	Statutes 2016, sections 46.131, subdivision 5; 326B.89, subdivision 14; Minnesota 
1.28 	Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; 4355.0500.
1.29 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.30 	ARTICLE 1
1.31 	APPROPRIATIONS

1.32	Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
 	
2.1 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.2 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.3 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.4 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
2.5 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
2.6 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
2.7 	is fiscal years 2018 and 2019.

2.8				APPROPRIATIONS
	
2.9				Available for the Year
	
2.10				Ending June 30
	
2.11					2018
		2019

2.12	Sec. 2. DEPARTMENT OF COMMERCE

2.13	Subdivision 1.Total Appropriation
 	$
	25,691,000
	$
	25,691,000

2.14	Appropriations by Fund
	
2.15		2018
	2019
	
2.16	General
	23,029,000
	23,029,000
	
2.17	Special Revenue
	1,610,000
	1,610,000
	
2.18	Petroleum Tank
	1,052,000
	1,052,000
	
2.19
2.20	Workers' 
Compensation
	751,000
	751,000
	
2.21 	The amounts that may be spent for each 
2.22 	purpose are specified in the following 
2.23 	subdivisions.

2.24	Subd. 2.Financial Institutions
 		420,000
		420,000

2.25
2.26	Subd. 3.Petroleum Tank Release Compensation 
Board
 		1,052,000
		1,052,000
	
2.27 	This appropriation is from the petroleum tank 
2.28 	fund.

2.29	Subd. 4.Administrative Services
 		7,386,000
		7,386,000
	
2.30 	$100,000 each year is for the support of 
2.31 	broadband development.

2.32	Subd. 5.Telecommunications

2.33	Appropriations by Fund
	
2.34	General
	1,229,000
	1,229,000
	
3.1	Special Revenue
	1,610,000
	1,610,000
	
3.2 	(a) $1,610,000 each year is from the 
3.3 	telecommunication access fund for the 
3.4 	following transfers.
3.5 	(1) $1,170,000 each year is to the 
3.6 	commissioner of human services to 
3.7 	supplement the ongoing operational expenses 
3.8 	of the Commission of Deaf, DeafBlind, and 
3.9 	Hard-of-Hearing Minnesotans;
3.10 	(2) $290,000 each year is to the chief 
3.11 	information officer for the purpose of 
3.12 	coordinating technology accessibility and 
3.13 	usability;
3.14 	(3) $100,000 each year is to the Legislative 
3.15 	Coordinating Commission for captioning of 
3.16 	legislative coverage; and
3.17 	(4) $50,000 each year is to the Office of 
3.18 	MN.IT Services for a consolidated access fund 
3.19 	to provide grants to other state agencies related 
3.20 	to accessibility of their Web-based services.
3.21 	(b) $220,000 each year from the general fund 
3.22 	is for costs related to implementation of 
3.23 	Minnesota Statutes, section 237.037, for 
3.24 	providers of Voice-over-Internet protocol 
3.25 	service. This is a onetime appropriation.

3.26	Subd. 6.Enforcement

3.27	Appropriations by Fund
	
3.28	General
	4,901,000
	4,901,000
	
3.29
3.30	Workers' 
Compensation
	198,000
	198,000

3.31	Subd. 7.Energy Resources
 		4,677,000
		4,677,000
	
3.32 	$150,000 each year is for grants to providers 
3.33 	of low-income weatherization services to 
3.34 	install renewable energy equipment in 
4.1 	households that are eligible for weatherization 
4.2 	assistance under Minnesota's weatherization 
4.3 	assistance program state plan under Minnesota 
4.4 	Statutes, section 216C.264.
4.5 	$430,000 each year is for costs associated with 
4.6 	competitive rates for energy-intensive, 
4.7 	trade-exposed electric utility customers. All 
4.8 	general fund appropriations for costs 
4.9 	associated with competitive rates for 
4.10 	energy-intensive, trade-exposed electric utility 
4.11 	customers are recovered through assessments 
4.12 	under Minnesota Statutes, section 216B.62.

4.13	Subd. 8.Insurance

4.14	Appropriations by Fund
	
4.15	General
	4,416,000
	4,416,000
	
4.16
4.17	Workers' 
Compensation
	553,000
	553,000

4.18	Subd. 9.Commerce Fraud Bureau
 					
4.19 	The revenue transferred in Minnesota Statutes, 
4.20 	section 297I.11, subdivision 2, to the insurance 
4.21 	fraud prevention account must be used in part 
4.22 	for compensation for two new employees in 
4.23 	the Commerce Fraud Bureau to perform 
4.24 	analytical duties. The new employees may not 
4.25 	be peace officers.

4.26
4.27	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

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

4.29	Appropriations by Fund
	
4.30		2018
	2019
	
4.31	General
	93,004,000
	90,680,000
	
4.32	Remediation
	700,000
	700,000
	
4.33
4.34	Workforce 
Development
	34,542,000
	33,795,000
	
5.1 	The amounts that may be spent for each 
5.2 	purpose are specified in the following 
5.3 	subdivisions.

5.4	Subd. 2.Business and Community Development

5.5	Appropriations by Fund
	
5.6	General
	44,164,000
	41,890,000
	
5.7	Remediation
	700,000
	700,000
	
5.8
5.9	Workforce 
Development
	900,000
	900,000
	
5.10 	(a) $12,500,000 each year is for the Minnesota 
5.11 	investment fund under Minnesota Statutes, 
5.12 	section 116J.8731. Of this amount, up to three 
5.13 	percent is for administration and monitoring 
5.14 	of the program. Of the amount appropriated 
5.15 	in fiscal year 2018, $4,000,000 is for a loan 
5.16 	to construct  and equip a wholesale electronic 
5.17 	component distribution center investing a 
5.18 	minimum of $200,000,000 and constructing 
5.19 	a facility at least 700,000 square feet in size. 
5.20 	Loan funds may be used for purchases of 
5.21 	materials, supplies, and equipment for the 
5.22 	construction of the facility and are available 
5.23 	from July 1, 2017, to June 30, 2021. The 
5.24 	commissioner of employment and economic 
5.25 	development shall forgive the loan after 
5.26 	verification that the project has satisfied 
5.27 	performance goals and contractual obligations 
5.28 	as required under Minnesota Statutes, section 
5.29 	116J.8731. This appropriation is available until 
5.30 	spent. The base for this program is 
5.31 	$13,500,000 in fiscal year 2020 and 
5.32 	$13,500,000 in fiscal year 2021.
5.33 	(b) $8,000,000 each year is for the Minnesota 
5.34 	job creation fund under Minnesota Statutes, 
5.35 	section 116J.8748. Of this amount, up to three 
5.36 	percent is for administration and monitoring 
6.1 	of the program. This appropriation is available 
6.2 	until spent. The base for this program is 
6.3 	$8,000,000 in fiscal year 2020 and $8,000,000 
6.4 	in fiscal year 2021.
6.5 	(c) $1,500,000 each year is for the 
6.6 	redevelopment program under Minnesota 
6.7 	Statutes, section 116J.571. The base for this 
6.8 	program is $2,000,000 in fiscal year 2020 and 
6.9 	$2,000,000 in fiscal year 2021.
6.10 	(d) $3,000,000 each year is for the workforce 
6.11 	housing grant program in Minnesota Statutes, 
6.12 	section 116J.549. Of this amount, up to five 
6.13 	percent is for administration and monitoring 
6.14 	of the program. This appropriation is available 
6.15 	until spent.
6.16 	(e) $500,000 each year is for the Minnesota 
6.17 	emerging entrepreneur loan program under 
6.18 	Minnesota Statutes, section 116M.18. Funds 
6.19 	available under this paragraph are for transfer 
6.20 	into the emerging entrepreneur program 
6.21 	special revenue fund account created under 
6.22 	Minnesota Statutes, chapter 116M, and are 
6.23 	available until spent. Of this amount, up to 
6.24 	five percent is for administration and 
6.25 	monitoring of the program. The base for this 
6.26 	appropriation is $1,000,000 in fiscal year 2020 
6.27 	and $1,000,000 in fiscal year 2021.
6.28 	(f) $900,000 each year from the workforce 
6.29 	development fund is for the job training 
6.30 	incentive program under Minnesota Statutes, 
6.31 	section 116L.42. Of this amount, up to five 
6.32 	percent is for administration and monitoring 
6.33 	of the program.
7.1 	(g) $1,300,000 each year is for the greater 
7.2 	Minnesota business development public 
7.3 	infrastructure grant program under Minnesota 
7.4 	Statutes, section 116J.431. Of this amount, 
7.5 	$800,000 each year is for a onetime grant to 
7.6 	the city of Thief River Falls to support utility 
7.7 	extensions, roads, and other public 
7.8 	improvements related to the construction of a 
7.9 	wholesale electronic component distribution 
7.10 	center at least 700,000 square feet in size and 
7.11 	investing a minimum of $200,000,000. 
7.12 	Notwithstanding Minnesota Statutes, section 
7.13 	116J.431, a local match is not required for the 
7.14 	grant. Grant funds provided to the city of Thief 
7.15 	River Falls under this paragraph are available 
7.16 	from July 1, 2017, to June 30, 2021. Except 
7.17 	as otherwise specified in this paragraph, this 
7.18 	appropriation is available until spent.
7.19 	(h) $139,000 each year is for the Center for 
7.20 	Rural Policy and Development.
7.21 	(i) $1,272,000 each year is for contaminated 
7.22 	site cleanup and development grants under 
7.23 	Minnesota Statutes, sections 116J.551 to 
7.24 	116J.558. This appropriation is available until 
7.25 	spent.
7.26 	(j) $700,000 each year is from the remediation 
7.27 	fund for contaminated site cleanup and 
7.28 	development grants under Minnesota Statutes, 
7.29 	sections 116J.551 to 116J.558. This 
7.30 	appropriation is available until spent.
7.31 	(k) $1,425,000 each year is for the business 
7.32 	development competitive grant program. Of 
7.33 	this amount, up to five percent is for 
7.34 	administration and monitoring of the business 
7.35 	development competitive grant program. All 
8.1 	grant awards shall be for two consecutive 
8.2 	years. Grants shall be awarded in the first year.
8.3 	(l) $4,848,000 in fiscal year 2018 and 
8.4 	$4,849,000 in fiscal year 2019 is for the 
8.5 	Minnesota job skills partnership program 
8.6 	under Minnesota Statutes, sections 116L.01 
8.7 	to 116L.17. If the appropriation for either year 
8.8 	is insufficient, the appropriation for the other 
8.9 	year is available. This appropriation is 
8.10 	available until spent. The base amount for this 
8.11 	program is $5,195,000 in fiscal year 2020 and 
8.12 	$5,195,000 in fiscal year 2021.
8.13 	(m) $25,000 each year is for the administration 
8.14 	of state aid for the Destination Medical Center 
8.15 	under Minnesota Statutes, sections 469.40 to 
8.16 	469.47.
8.17 	(n) $750,000 each year is for a grant to the 
8.18 	Neighborhood Development Center for small 
8.19 	business programs, including, but not limited 
8.20 	to:
8.21 	(1) training, lending, and business services;
8.22 	(2) model outreach and training in greater 
8.23 	Minnesota; and
8.24 	(3) development of new business incubators.
8.25 	This is a onetime appropriation.
8.26 	(o) $1,175,000 each year is for a grant to the 
8.27 	Metropolitan Economic Development 
8.28 	Association (MEDA) for statewide business 
8.29 	development and assistance services, including 
8.30 	services to entrepreneurs with businesses that 
8.31 	have the potential to create job opportunities 
8.32 	for unemployed and underemployed people, 
9.1 	with an emphasis on minority-owned 
9.2 	businesses. This is a onetime appropriation.
9.3 	(p) $125,000 each year is for a grant to the 
9.4 	White Earth Nation for the White Earth Nation 
9.5 	Integrated Business Development System to 
9.6 	provide business assistance with workforce 
9.7 	development, outreach, technical assistance, 
9.8 	infrastructure and operational support, 
9.9 	financing, and other business development 
9.10 	activities. This is a onetime appropriation.
9.11 	(q) $875,000 each year is for a grant to 
9.12 	Enterprise Minnesota, Inc. for the small 
9.13 	business growth acceleration program under 
9.14 	Minnesota Statutes, section 116O.115. This 
9.15 	is a onetime appropriation.
9.16 	(r) $12,000 each year is from the general fund 
9.17 	for a grant to the Upper Minnesota Film 
9.18 	Office.
9.19 	(s) $325,000 each year is from the general 
9.20 	fund for the Minnesota Film and TV Board. 
9.21 	The appropriation in each year is available 
9.22 	only upon receipt by the board of $1 in 
9.23 	matching contributions of money or in-kind 
9.24 	contributions from nonstate sources for every 
9.25 	$3 provided by this appropriation, except that 
9.26 	each year up to $50,000 is available on July 
9.27 	1 even if the required matching contribution 
9.28 	has not been received by that date.
9.29 	(t) $500,000 each year is from the general fund 
9.30 	for a grant to the Minnesota Film and TV 
9.31 	Board for the film production jobs program 
9.32 	under Minnesota Statutes, section 116U.26. 
9.33 	This appropriation is available until spent.
10.1 	(u) $275,000 in fiscal year 2018 is from the 
10.2 	general fund to the commissioner of 
10.3 	employment and economic development for 
10.4 	a grant to Community and Economic 
10.5 	Development Associates (CEDA) for an 
10.6 	economic development study and analysis of 
10.7 	the effects of current and projected economic 
10.8 	growth in southeast Minnesota. CEDA shall 
10.9 	report on the findings and recommendations 
10.10 	of the study to the committees of the house of 
10.11 	representatives and senate with jurisdiction 
10.12 	over economic development and workforce 
10.13 	issues by February 15, 2019. All results and 
10.14 	information gathered from the study shall be 
10.15 	made available for use by cities in southeast 
10.16 	Minnesota by March 15, 2019. This is a 
10.17 	onetime appropriation and is available until 
10.18 	June 30, 2020.
10.19 	(v) $2,000,000 the first year is for a grant to 
10.20 	Pillsbury United Communities for construction 
10.21 	and renovation of a building in north 
10.22 	Minneapolis for use as the "North Market" 
10.23 	grocery store and wellness center, focused on 
10.24 	offering healthy food, increasing health care 
10.25 	access, and providing job creation and 
10.26 	economic opportunities in one place for 
10.27 	children and families living in the area. To the 
10.28 	extent possible, Pillsbury United Communities 
10.29 	shall employ individuals who reside within a 
10.30 	five mile radius of the grocery store and 
10.31 	wellness center. This appropriation is not 
10.32 	available until at least an equal amount of 
10.33 	money is committed from nonstate sources. 
10.34 	This is a onetime appropriation and is 
10.35 	available until the project is completed or 
11.1 	abandoned, subject to Minnesota Statutes, 
11.2 	section 16A.642.

11.3	Subd. 3.Broadband Development
 		10,250,000
		10,250,000
	
11.4 	(a) $250,000 each year is for the Broadband 
11.5 	Development Office.
11.6 	(b) $10,000,000 each year is for deposit in the 
11.7 	border-to-border broadband fund account 
11.8 	created under Minnesota Statutes, section 
11.9 	116J.396, and may be used for the purposes 
11.10 	provided in Minnesota Statutes, section 
11.11 	116J.395. This is a onetime appropriation. 
11.12 	This appropriation is available until spent. Of 
11.13 	this appropriation, up to three percent is for 
11.14 	costs incurred by the commissioner to 
11.15 	administer Minnesota Statutes, section 
11.16 	116J.395. Administrative costs may include 
11.17 	the following activities related to measuring 
11.18 	progress toward the state's broadband goals 
11.19 	established in Minnesota Statutes, section 
11.20 	237.012:
11.21 	(1) collecting broadband deployment data from 
11.22 	Minnesota providers, verifying its accuracy 
11.23 	through on-the-ground testing, and creating 
11.24 	state and county maps available to the public 
11.25 	showing the availability of broadband service 
11.26 	at various upload and download speeds 
11.27 	throughout Minnesota;
11.28 	(2) analyzing the deployment data collected 
11.29 	to help inform future investments in broadband 
11.30 	infrastructure; and
11.31 	(3) conducting business and residential surveys 
11.32 	that measure broadband adoption and use in 
11.33 	the state.
12.1 	Data provided by a broadband provider under 
12.2 	this paragraph is nonpublic data under 
12.3 	Minnesota Statutes, section 13.02, subdivision 
12.4 	9. Maps produced under this paragraph are 
12.5 	public data under Minnesota Statutes, section 
12.6 	13.03.

12.7	Subd. 4.Minnesota Trade Office
 		2,292,000
		2,292,000
	
12.8 	(a) $300,000 each year is for the STEP grants 
12.9 	in Minnesota Statutes, section 116J.979.
12.10 	(b) $180,000 each year is for the Invest 
12.11 	Minnesota Marketing Initiative in Minnesota 
12.12 	Statutes, section 116J.9781.
12.13 	(c) $270,000 each year is for the Minnesota 
12.14 	Trade Offices under Minnesota Statutes, 
12.15 	section 116J.978.
12.16 	(d) $50,000 each year is for the trade policy 
12.17 	advisory group under Minnesota Statutes, 
12.18 	section 116J.9661.

12.19	Subd. 5.Workforce Development

12.20	Appropriations by Fund
	
12.21	General
	5,939,000
	5,889,000
	
12.22
12.23	Workforce 
Development
	23,295,000
	22,548,000
	
12.24 	(a) $1,539,000 each year from the general fund 
12.25 	and $3,104,000 each year from the workforce 
12.26 	development fund are for the pathways to 
12.27 	prosperity competitive grant program. Of this 
12.28 	amount, up to five percent is for administration 
12.29 	and monitoring of the program. The base 
12.30 	amount for this program is $5,039,000 from 
12.31 	the general fund and $3,104,000 from the 
12.32 	workforce development fund in fiscal year 
12.33 	2020 and fiscal year 2021.
13.1 	(b) $4,053,000 each year is from the 
13.2 	workforce development fund for the 
13.3 	Minnesota youth program under Minnesota 
13.4 	Statutes, sections 116L.56 and 116L.561.
13.5 	(c) $1,001,000 each year is from the workforce 
13.6 	development fund for the youthbuild program 
13.7 	under Minnesota Statutes, sections 116L.361 
13.8 	to 116L.366.
13.9 	(d) $500,000 each year is from the general 
13.10 	fund and $3,348,000 each year is from the 
13.11 	workforce development fund for the youth at 
13.12 	work competitive grant program under 
13.13 	Minnesota Statutes, section 116L.562. Of this 
13.14 	amount, up to five percent is for administration 
13.15 	and monitoring of the youth workforce 
13.16 	development competitive grant program. All 
13.17 	grant awards shall be for two consecutive 
13.18 	years. Grants shall be awarded in the first year. 
13.19 	The base amount for this program is 
13.20 	$3,348,000 in fiscal year 2020 and $3,348,000 
13.21 	in fiscal year 2021 from the workforce 
13.22 	development fund, and $750,000 in fiscal year 
13.23 	2020 and $750,000 in fiscal year 2021 from 
13.24 	the general fund.
13.25 	(e) $500,000 each year from the general fund 
13.26 	and $500,000 each year from the workforce 
13.27 	development fund are for rural career 
13.28 	counseling coordinators in the workforce 
13.29 	service areas and for the purposes specified 
13.30 	in Minnesota Statutes, section 116L.667. Of 
13.31 	these amounts, up to five percent is for 
13.32 	administration and monitoring of the program.
13.33 	(f) $250,000 each year is for the higher 
13.34 	education career advising program. Of this 
14.1 	amount, up to five percent is for administration 
14.2 	and monitoring of the program.
14.3 	(g) $500,000 each year is for a competitive 
14.4 	grant program for grants to organizations 
14.5 	providing services to relieve economic 
14.6 	disparities in the Southeast Asian community 
14.7 	through workforce recruitment, development, 
14.8 	job creation, assistance of smaller 
14.9 	organizations to increase capacity, and 
14.10 	outreach. Of this amount, up to five percent 
14.11 	is for administration and monitoring of the 
14.12 	program.
14.13 	(h) $750,000 each year is for a competitive 
14.14 	grant program to provide grants to 
14.15 	organizations that provide support services for 
14.16 	individuals, such as job training, employment 
14.17 	preparation, internships, job assistance to 
14.18 	fathers, financial literacy, academic and 
14.19 	behavioral interventions for low-performing 
14.20 	students, and youth intervention. Grants made 
14.21 	under this section must focus on low-income 
14.22 	communities, young adults from families with 
14.23 	a history of intergenerational poverty, and 
14.24 	communities of color. Of this amount, up to 
14.25 	five percent is for administration and 
14.26 	monitoring of the program. The base amount 
14.27 	for this program is $1,000,000 in fiscal year 
14.28 	2020 and $1,000,000 in fiscal year 2021.
14.29 	(i) $500,000 each year is for the high-wage, 
14.30 	high-demand, nontraditional jobs grant 
14.31 	program under Minnesota Statutes, section 
14.32 	116L.99. Of this amount, up to five percent is 
14.33 	for administration and monitoring of the 
14.34 	program. The base amount for this program 
15.1 	is $750,000 in fiscal year 2020 and $750,000 
15.2 	in fiscal year 2021.
15.3 	(j) $450,000 each year is from the workforce 
15.4 	development fund for a grant to Minnesota 
15.5 	Diversified Industries, Inc., to provide 
15.6 	progressive development and employment 
15.7 	opportunities for people with disabilities. This 
15.8 	is a onetime appropriation.
15.9 	(k) $500,000 each year is from the workforce 
15.10 	development fund for the Opportunities 
15.11 	Industrialization Center programs. This 
15.12 	appropriation shall be divided equally among 
15.13 	the eligible centers.
15.14 	(l) $750,000 each year is from the workforce 
15.15 	development fund for a grant to the Minnesota 
15.16 	Alliance of Boys and Girls Clubs to administer 
15.17 	a statewide project of youth job skills 
15.18 	development. This project, which may have 
15.19 	career guidance components, including health 
15.20 	and life skills, is to encourage, train, and assist 
15.21 	youth in job-seeking skills, workplace 
15.22 	orientation, and job-site knowledge through 
15.23 	coaching. This grant requires a 25 percent 
15.24 	match from nonstate resources. This is a 
15.25 	onetime appropriation.
15.26 	(m) $250,000 each year is from the workforce 
15.27 	development fund for a grant to YWCA St. 
15.28 	Paul to provide job training services and 
15.29 	workforce development programs and 
15.30 	services, including job skills training and 
15.31 	counseling. This is a onetime appropriation.
15.32 	(n) $375,000 each year is from the workforce 
15.33 	development fund for a grant to the YWCA 
15.34 	of Minneapolis to provide economically 
16.1 	challenged individuals the job skills training, 
16.2 	career counseling, and job placement 
16.3 	assistance necessary to secure a child 
16.4 	development associate credential and to have 
16.5 	a career path in early childhood education. 
16.6 	This is a onetime appropriation.
16.7 	(o) $1,000,000 each year is from the 
16.8 	workforce development fund for a grant to 
16.9 	EMERGE Community Development, in 
16.10 	collaboration with community partners, for 
16.11 	services targeting Minnesota communities 
16.12 	with the highest concentrations of African and 
16.13 	African-American joblessness, based on the 
16.14 	most recent census tract data, to provide 
16.15 	employment readiness training, credentialed 
16.16 	training placement, job placement and 
16.17 	retention services, supportive services for 
16.18 	hard-to-employ individuals, and a general 
16.19 	education development fast track and adult 
16.20 	diploma program. This is a onetime 
16.21 	appropriation.
16.22 	(p) $1,000,000 each year is from the 
16.23 	workforce development fund for a grant to the 
16.24 	Minneapolis Foundation for a strategic 
16.25 	intervention program designed to target and 
16.26 	connect program participants to meaningful, 
16.27 	sustainable living-wage employment. This is 
16.28 	a onetime appropriation.
16.29 	(q) $1,297,000 in fiscal year 2018 and 
16.30 	$800,000 in fiscal year 2019 are from the 
16.31 	workforce development fund for performance 
16.32 	grants under Minnesota Statutes, section 
16.33 	116J.8747, to Twin Cities R!SE to provide 
16.34 	training to hard-to-train individuals. Of the 
16.35 	amounts appropriated, $497,000 in fiscal year 
17.1 	2018 is for a grant to Twin Cities R!SE, in 
17.2 	collaboration with Metro Transit and Hennepin 
17.3 	Technical College for the Metro Transit 
17.4 	technician training program. This is a onetime 
17.5 	appropriation and is available until June 30, 
17.6 	2020.
17.7 	(r) $750,000 each year is from the workforce 
17.8 	development fund for a grant to Latino 
17.9 	Communities United in Service (CLUES) to 
17.10 	expand culturally tailored programs that 
17.11 	address employment and education skill gaps 
17.12 	for working parents and underserved youth by 
17.13 	providing new job skills training to stimulate 
17.14 	higher wages for low-income people, family 
17.15 	support systems designed to reduce 
17.16 	intergenerational poverty, and youth 
17.17 	programming to promote educational 
17.18 	advancement and career pathways. At least 
17.19 	50 percent of this amount must be used for 
17.20 	programming targeted at greater Minnesota. 
17.21 	This is a onetime appropriation.
17.22 	(s) $250,000 each year is for transfer to the 
17.23 	Department of Education for a grant to the 
17.24 	American Indian Opportunities and 
17.25 	Industrialization Center, in collaboration with 
17.26 	the Northwest Indian Community 
17.27 	Development Center, to reduce academic 
17.28 	disparities for American Indian students and 
17.29 	adults. This is a onetime appropriation. The 
17.30 	grant funds may be used to provide:
17.31 	(1) student tutoring and testing support 
17.32 	services;
17.33 	(2) training in information technology;
17.34 	(3) assistance in obtaining a GED;
18.1 	(4) remedial training leading to enrollment in 
18.2 	a postsecondary higher education institution;
18.3 	(5) real-time work experience in information 
18.4 	technology fields; and
18.5 	(6) contextualized adult basic education.
18.6 	After notification to the legislature, the 
18.7 	commissioner may transfer this appropriation 
18.8 	to the commissioner of education.
18.9 	(t) $600,000 each year is from the workforce 
18.10 	development fund for a grant to Ujamaa Place 
18.11 	for job training, employment preparation, 
18.12 	internships, education, training in the 
18.13 	construction trades, housing, and 
18.14 	organizational capacity-building. This is a 
18.15 	onetime appropriation.
18.16 	(u) $500,000 each year from the workforce 
18.17 	development fund is for a grant to Resource, 
18.18 	Inc. to provide low-income individuals career 
18.19 	education and job skills training that are fully 
18.20 	integrated with chemical and mental health 
18.21 	services. This is a onetime appropriation.
18.22 	(v) $1,100,000 each year from the workforce 
18.23 	development fund is for a grant to the 
18.24 	Minnesota High Tech Association to support 
18.25 	SciTechsperience, a program that supports 
18.26 	science, technology, engineering, and math 
18.27 	(STEM) internship opportunities for two- and 
18.28 	four-year college students and graduate 
18.29 	students in their field of study. The internship 
18.30 	opportunities must match students with paid 
18.31 	internships within STEM disciplines at small, 
18.32 	for-profit companies located in Minnesota, 
18.33 	having fewer than 250 employees worldwide. 
18.34 	At least 200 students must be matched in the 
19.1 	first year and at least 250 students must be 
19.2 	matched in the second year. No more than 15 
19.3 	percent of the hires may be graduate students. 
19.4 	Selected hiring companies shall receive from 
19.5 	the grant 50 percent of the wages paid to the 
19.6 	intern, capped at $2,500 per intern. The 
19.7 	program must work toward increasing the 
19.8 	participation among women or individuals 
19.9 	with barriers to employment. This is a onetime 
19.10 	appropriation.
19.11 	(w) $1,000,000 each year is for a grant to the 
19.12 	Construction Careers Foundation for the 
19.13 	construction career pathway initiative to 
19.14 	provide year-round educational and 
19.15 	experiential learning opportunities for teens 
19.16 	and young adults under the age of 21 that lead 
19.17 	to careers in the construction industry. This is 
19.18 	a onetime appropriation. Grant funds must be 
19.19 	used to:
19.20 	(1) increase construction industry exposure 
19.21 	activities for middle school and high school 
19.22 	youth, parents, and counselors to reach a more 
19.23 	diverse demographic and broader statewide 
19.24 	audience. This requirement includes, but is 
19.25 	not limited to, an expansion of programs to 
19.26 	provide experience in different crafts to youth 
19.27 	and young adults throughout the state;
19.28 	(2) increase the number of high schools in 
19.29 	Minnesota offering construction classes during 
19.30 	the academic year that utilize a multicraft 
19.31 	curriculum;
19.32 	(3) increase the number of summer internship 
19.33 	opportunities;
20.1 	(4) enhance activities to support graduating 
20.2 	seniors in their efforts to obtain employment 
20.3 	in the construction industry;
20.4 	(5) increase the number of young adults 
20.5 	employed in the construction industry and 
20.6 	ensure that they reflect Minnesota's diverse 
20.7 	workforce; and
20.8 	(6) enhance an industrywide marketing 
20.9 	campaign targeted to youth and young adults 
20.10 	about the depth and breadth of careers within 
20.11 	the construction industry.
20.12 	Programs and services supported by grant 
20.13 	funds must give priority to individuals and 
20.14 	groups that are economically disadvantaged 
20.15 	or historically underrepresented in the 
20.16 	construction industry, including but not limited 
20.17 	to women, veterans, and members of minority 
20.18 	and immigrant groups.
20.19 	(x) $215,000 each year is from the workforce 
20.20 	development fund for a grant to Big Brothers, 
20.21 	Big Sisters of the Greater Twin Cities for 
20.22 	workforce readiness, employment exploration, 
20.23 	and skills development for youth ages 12 to 
20.24 	21. The grant must serve youth in the Twin 
20.25 	Cities, Central Minnesota and Southern 
20.26 	Minnesota Big Brothers, Big Sisters chapters. 
20.27 	This is a onetime appropriation.
20.28 	(y) $50,000 the first year is for a grant to 
20.29 	Fighting Chance for behavioral intervention 
20.30 	programs for at-risk youth. This is a onetime 
20.31 	appropriation.
20.32 	(z) $250,000 each year is from the workforce 
20.33 	development fund for a grant to Bridges to 
20.34 	Healthcare to provide career education, 
21.1 	wraparound support services, and job skills 
21.2 	training in high-demand health care fields to 
21.3 	low-income parents, non-native speakers of 
21.4 	English, and other hard-to-train individuals, 
21.5 	helping families build secure pathways out of 
21.6 	poverty while also addressing worker 
21.7 	shortages in one of Minnesota's most 
21.8 	innovative industries. Funds may be used for 
21.9 	program expenses, including, but not limited 
21.10 	to, hiring instructors and navigators; space 
21.11 	rental; and supportive services to help 
21.12 	participants attend classes, including assistance 
21.13 	with course fees, child care, transportation, 
21.14 	and safe and stable housing. In addition, up to 
21.15 	five percent of grant funds may be used for 
21.16 	Bridges to Healthcare's administrative costs. 
21.17 	This is a onetime appropriation and is 
21.18 	available until June 30, 2020.
21.19 	(aa) $230,000 in fiscal year 2018 is from the 
21.20 	workforce development fund for a grant to the 
21.21 	Bois Forte Tribal Employment Rights Office 
21.22 	(TERO) for an American Indian workforce 
21.23 	development training pilot project. This is a 
21.24 	onetime appropriation.
21.25 	(bb) $500,000 each year is from the workforce 
21.26 	development fund for a grant to the Nonprofits 
21.27 	Assistance Fund to provide capacity-building 
21.28 	grants to small, culturally specific 
21.29 	organizations that primarily serve historically 
21.30 	underserved cultural communities. Grants may 
21.31 	only be awarded to nonprofit organizations 
21.32 	that (1) have an annual organizational budget 
21.33 	of less than $500,000 and (2) are culturally 
21.34 	specific organizations that primarily serve 
22.1 	historically underserved cultural communities. 
22.2 	Grant funds awarded must be used for:
22.3 	(1) organizational infrastructure improvement, 
22.4 	including developing database management 
22.5 	systems and financial systems, or other 
22.6 	administrative needs that increase the 
22.7 	organization's ability to access new funding 
22.8 	sources;
22.9 	(2) organizational workforce development, 
22.10 	including hiring culturally competent staff, 
22.11 	training and skills development, and other 
22.12 	methods of increasing staff capacity; or
22.13 	(3) creation or expansion of partnerships with 
22.14 	existing organizations that have specialized 
22.15 	expertise in order to increase the capacity of 
22.16 	the grantee organization to improve services 
22.17 	for the community. Of this amount, up to five 
22.18 	percent may be used by the Nonprofits 
22.19 	Assistance Fund for administration costs and 
22.20 	providing technical assistance to potential 
22.21 	grantees. This is a onetime appropriation.
22.22 	(cc) $1,502,000 each year is from the 
22.23 	workforce development fund for a grant to 
22.24 	FastTRAC-Minnesota Adult Careers Pathways 
22.25 	Program. Up to ten percent of this 
22.26 	appropriation may be used to provide 
22.27 	leadership, oversight, and technical assistance 
22.28 	services for low-skilled, low-income adults.
22.29 	(dd) $100,000 each year is for the "Getting to 
22.30 	Work" grant program. This is a onetime 
22.31 	appropriation and is available until June 30, 
22.32 	2021.
22.33 	(ee) $20,000 in fiscal year 2018 is 
22.34 	appropriated from the workforce development 
23.1 	fund for a grant to the Cook County Higher 
23.2 	Education Board to provide educational 
23.3 	programming and academic support services 
23.4 	to remote regions in northeastern Minnesota. 
23.5 	This appropriation is in addition to other funds 
23.6 	previously appropriated to the board. This is 
23.7 	a onetime appropriation.

23.8	Subd. 6.Vocational Rehabilitation

23.9	Appropriations by Fund
	
23.10	General
	20,361,000
	20,361,000
	
23.11
23.12	Workforce 
Development
	10,330,000
	10,330,000
	
23.13 	(a) $8,300,000 each year from the general fund 
23.14 	and $2,500,000 from the workforce 
23.15 	development fund are for the state's vocational 
23.16 	rehabilitation program under Minnesota 
23.17 	Statutes, chapter 268A. The base for this 
23.18 	program is $10,800,000 from the general fund 
23.19 	in fiscal year 2020 and fiscal year 2021.
23.20 	(b) $3,011,000 each year is from the general 
23.21 	fund for grants to centers for independent 
23.22 	living under Minnesota Statutes, section 
23.23 	268A.11.
23.24 	(c) $6,830,000 each year from the workforce 
23.25 	development fund and $6,495,000 each year 
23.26 	from the general fund are for extended 
23.27 	employment services for persons with severe 
23.28 	disabilities under Minnesota Statutes, section 
23.29 	268A.15. The base for this program is 
23.30 	$7,620,000 from the general fund and 
23.31 	$6,830,000 from the workforce development 
23.32 	fund in fiscal year 2020 and fiscal year 2021.
23.33 	(d) $1,000,000 each year is from the 
23.34 	workforce development fund for grants under 
23.35 	Minnesota Statutes, section 268A.16, for 
24.1 	employment services for persons, including 
24.2 	transition-aged youth, who are deaf, deafblind, 
24.3 	or hard-of-hearing. If the amount in the first 
24.4 	year is insufficient, the amount in the second 
24.5 	year is available in the first year. Of this 
24.6 	amount, up to five percent is for administration 
24.7 	and monitoring of the program.
24.8 	(e) $2,555,000 each year is for grants to 
24.9 	programs that provide employment support 
24.10 	services to persons with mental illness under 
24.11 	Minnesota Statutes, sections 268A.13 and 
24.12 	268A.14.

24.13	Subd. 7.Services for the Blind
 		6,425,000
		6,425,000
	
24.14 	$6,425,000 each year is for state services for 
24.15 	the blind. Of this amount, $500,000 each year 
24.16 	is for senior citizens who are becoming blind. 
24.17 	At least half of the funds appropriated must 
24.18 	be used to provide training services for seniors 
24.19 	who are becoming blind. Training services 
24.20 	must provide independent living skills to 
24.21 	seniors who are becoming blind to allow them 
24.22 	to continue to live independently in their 
24.23 	homes. The base for this program is 
24.24 	$5,925,000 in fiscal year 2020 and $5,925,000 
24.25 	in fiscal year 2021.

24.26	Subd. 8.General Support Services

24.27	Appropriations by Fund
	
24.28	General
	3,573,000
	3,573,000
	
24.29
24.30	Workforce 
Development
	17,000
	17,000
	
24.31 	(a) $250,000 each year is for the publication, 
24.32 	dissemination, and use of labor market 
24.33 	information under Minnesota Statutes, section 
24.34 	116J.4011.
25.1 	(b) $150,000 each year is for the cost-of-living 
25.2 	study required under Minnesota Statutes, 
25.3 	section 116J.013.
25.4 	(c) $1,269,000 each year is for transfer to the 
25.5 	Minnesota Housing Finance Agency for 
25.6 	operating the Olmstead Compliance Office.
25.7 	(d) $500,000 each year is for a statewide 
25.8 	capacity-building grant program. The 
25.9 	commissioner of employment and economic 
25.10 	development shall, through a request for 
25.11 	proposal process, select a nonprofit 
25.12 	organization to administer the 
25.13 	capacity-building grant program. The selected 
25.14 	organization must have demonstrated 
25.15 	experience in providing financial and technical 
25.16 	assistance to nonprofit organizations statewide. 
25.17 	The selected organization shall provide 
25.18 	financial assistance in the form of sub-grants 
25.19 	and technical assistance to small to 
25.20 	medium-sized nonprofit organizations 
25.21 	offering, or seeking to offer, workforce or 
25.22 	economic development programming that 
25.23 	addresses economic disparities in underserved 
25.24 	cultural communities. This assistance can be 
25.25 	provided in-house or in partnership with other 
25.26 	organizations depending on need. The 
25.27 	nonprofit organization selected to administer 
25.28 	the grant program shall report to the 
25.29 	commissioner by February 1 each year 
25.30 	regarding assistance provided, including the 
25.31 	demographic and geographic distribution of 
25.32 	the grant awards, services, and outcomes. By 
25.33 	April 1 each year, the commissioner shall 
25.34 	report the information submitted by the 
25.35 	nonprofit to the legislative committees having 
26.1 	jurisdiction over economic development 
26.2 	issues. Of this amount, one percent is for the 
26.3 	commissioner to conduct the request for 
26.4 	proposal process and monitoring the selected 
26.5 	organization. The nonprofit selected to 
26.6 	administer the grant program may use up to 
26.7 	five percent of the grant funds for 
26.8 	administration costs and providing technical 
26.9 	assistance to potential sub-grantees.

26.10	Subd. 9.Reporting
 					
26.11 	(a) An entity receiving a direct appropriation 
26.12 	in this article that received a direct 
26.13 	appropriation in Laws 2016, chapter 189, 
26.14 	article 12, is subject to the requirements for 
26.15 	grants to individually specified recipients 
26.16 	under Laws 2016, chapter 189, article 12, 
26.17 	section 11.
26.18 	(b) Any recipient of a direct appropriation 
26.19 	from the workforce development fund for 
26.20 	adult workforce-related programs under 
26.21 	subdivision 5 not subject to the requirements 
26.22 	of paragraph (a) is subject to the reporting 
26.23 	requirements under Minnesota Statutes, 
26.24 	section 116L.98.

26.25
26.26	Sec. 4. DEPARTMENT OF LABOR AND 
INDUSTRY

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

26.28	Appropriations by Fund
	
26.29		2018
	2019
	
26.30	General
	1,202,000
	1,202,000
	
26.31
26.32	Workers' 
Compensation
	24,975,000
	24,975,000
	
26.33
26.34	Workforce 
Development
	2,007,000
	2,307,000
	
27.1 	The amounts that may be spent for each 
27.2 	purpose are specified in the following 
27.3 	subdivisions.

27.4	Subd. 2.Workers' Compensation
 		14,782,000
		14,782,000
	
27.5 	(a) This appropriation is from the workers' 
27.6 	compensation fund.
27.7 	(b) $3,000,000 each year is for workers' 
27.8 	compensation system upgrades. This 
27.9 	appropriation is available until June 30, 2021. 
27.10 	The base appropriation for fiscal year 2020 
27.11 	and beyond is $0.
27.12 	(c) This appropriation includes funds for 
27.13 	information technology project services and 
27.14 	support subject to the provisions of Minnesota 
27.15 	Statutes, section 16E.0466. Any ongoing 
27.16 	information technology costs must be 
27.17 	incorporated into the service level agreement 
27.18 	and must be paid to the Office of MN.IT 
27.19 	Services by the commissioner of labor and 
27.20 	industry under the rates and mechanism 
27.21 	specified in that agreement.

27.22	Subd. 3.Labor Standards and Apprenticeship

27.23	Appropriations by Fund
	
27.24	General
	1,202,000
	1,202,000
	
27.25
27.26	Workforce 
Development
	1,507,000
	1,507,000
	
27.27 	(a) $1,202,000 in fiscal year 2018 and 
27.28 	$1,202,000 in fiscal year 2019 are from the 
27.29 	general fund for the labor standards and 
27.30 	apprenticeship program.
27.31 	(b) $1,057,000 in fiscal year 2018 and 
27.32 	$1,057,000 in fiscal year 2019 are from the 
27.33 	workforce development fund for the 
28.1 	apprenticeship program under Minnesota 
28.2 	Statutes, chapter 178.
28.3 	(c) $150,000 each year from the workforce 
28.4 	development fund is for prevailing wage 
28.5 	enforcement.
28.6 	(d) $100,000 each year is from the workforce 
28.7 	development fund for labor education and 
28.8 	advancement program grants under Minnesota 
28.9 	Statutes, section 178.11, to expand and 
28.10 	promote registered apprenticeship training for 
28.11 	minorities and women.
28.12 	(e) $200,000 each year is from the workforce 
28.13 	development fund for a grant to the 
28.14 	Construction Careers Foundation Inc. for the 
28.15 	Helmets to Hardhats Minnesota Initiative. 
28.16 	Grant funds must be used to recruit, retain, 
28.17 	assist, and support National Guard, Reserve, 
28.18 	active duty military members, and veteran's 
28.19 	participation in apprenticeship programs 
28.20 	registered with the Department of Labor and 
28.21 	Industry and connect them with career training 
28.22 	and employment in the building and 
28.23 	construction industry. The recruitment, 
28.24 	selection, employment, and training must be 
28.25 	without discrimination due to race, color, 
28.26 	creed, religion, national origin, sex, sexual 
28.27 	orientation, marital status, physical or mental 
28.28 	disability, receipt of public assistance, or age. 
28.29 	This is a onetime appropriation.

28.30	Subd. 4.Workplace Safety
 		4,154,000
		4,154,000
	
28.31 	This appropriation is from the workers' 
28.32 	compensation fund.

28.33	Subd. 5.General Support

29.1	Appropriations by Fund
	
29.2
29.3	Workers' 
Compensation
	6,039,000
	6,039,000
	
29.4
29.5	Workforce 
Development
	500,000
	800,000
	
29.6 	(a) $300,000 each year is from the workforce 
29.7 	development fund for the PIPELINE program.
29.8 	(b) $200,000 in fiscal year 2018 is from the 
29.9 	workforce development fund for the 
29.10 	commissioner of labor and industry to convene 
29.11 	and collaborate with stakeholders as provided 
29.12 	under Minnesota Statutes, section 175.46, 
29.13 	subdivision 3, and to develop youth skills 
29.14 	training competencies for approved 
29.15 	occupations. This is a onetime appropriation.
29.16 	(c) $500,000 in fiscal year 2019 is from the 
29.17 	workforce development fund to administer the 
29.18 	youth skills training program under Minnesota 
29.19 	Statutes, section 175.46. The commissioner 
29.20 	shall award up to five grants each year to local 
29.21 	partnerships located throughout the state, not 
29.22 	to exceed $100,000 per local partnership grant. 
29.23 	The commissioner may use a portion of this 
29.24 	appropriation for administration of the grant 
29.25 	program. The base amount for this program 
29.26 	is $500,000 each year beginning in fiscal year 
29.27 	2020.

29.28	Sec. 5. BUREAU OF MEDIATION SERVICES
 	$
	2,247,000
	$
	2,247,000
	
29.29 	(a) $68,000 each year is for grants to area 
29.30 	labor management committees. Grants may 
29.31 	be awarded for a 12-month period beginning 
29.32 	July 1 each year. Any unencumbered balance 
29.33 	remaining at the end of the first year does not 
29.34 	cancel but is available for the second year.
30.1 	(b) $394,000 each year is for the Office of 
30.2 	Collaboration and Dispute Resolution under 
30.3 	Minnesota Statutes, section 179.90.

30.4
30.5	Sec. 6. PUBLIC EMPLOYMENT RELATIONS 
BOARD
 	$
	125,000
	$
	125,000

30.6	Sec. 7. PUBLIC UTILITIES COMMISSION
 	$
	7,565,000
	$
	7,565,000
	
30.7 	$100,000 each year from the general fund is 
30.8 	for costs related to implementation of 
30.9 	Minnesota Statutes, section 237.037, for 
30.10 	providers of Voice-over-Internet protocol 
30.11 	service. This is a onetime appropriation.

30.12
30.13	Sec. 8. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,913,000
	$
	1,913,000
	
30.14 	This appropriation is from the workers' 
30.15 	compensation fund.

30.16 	Sec. 9. APPROPRIATION AND TRANSFER.
 30.17 	(a) The utility subject to Minnesota Statutes, section 116C.779, shall transfer $10,000,000 
30.18 	in fiscal year 2018 from the renewable development account established under that section 
30.19 	to the commissioner of commerce, who shall deposit it in the special revenue fund. This is 
30.20 	a onetime transfer.
30.21 	(b) $10,000,000 from the money deposited in the special revenue fund under paragraph 
30.22 	(a) is appropriated to the commissioner of commerce for transfer to the Iron Range Resources 
30.23 	and Rehabilitation Board for deposit in Fund #280, Business Development Fund for 
30.24 	Renewable Energy Manufacturing. This is a onetime appropriation and is available until 
30.25 	June 30, 2020.

30.26 	Sec. 10. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is 
30.27 	amended to read:

30.28	Subd. 2.Workers' Compensation
 		15,226,000
		17,782,000
	
30.29 	This appropriation is from the workers' 
30.30 	compensation fund.
31.1 	$4,000,000 in fiscal year 2016 and $6,000,000 
31.2 	in fiscal year 2017 are for workers' 
31.3 	compensation system upgrades and are 
31.4 	available through June 30, 2021. The base 
31.5 	appropriation for this purpose is $3,000,000 
31.6 	in fiscal year 2018 and $3,000,000 in fiscal 
31.7 	year 2019. The base appropriation for fiscal 
31.8 	year 2020 and beyond is zero.
31.9 	This appropriation includes funds for 
31.10 	information technology project services and 
31.11 	support subject to the provisions of Minnesota 
31.12 	Statutes, section 16E.0466. Any ongoing 
31.13 	information technology costs will be 
31.14 	incorporated into the service level agreement 
31.15 	and will be paid to the Office of MN.IT 
31.16 	Services by the commissioner of labor and 
31.17 	industry under the rates and mechanism 
31.18 	specified in that agreement.

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

31.20 	ARTICLE 2
31.21 	COMMERCE

31.22 	Section 1. Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:
31.23 		Subd. 6.Insurance fraud prevention account. The insurance fraud prevention account 
31.24 	is created in the state treasury. Money received from assessments under subdivision 7 and 
31.25 	transferred from the automobile theft prevention account in section sections65B.84, 
31.26 	subdivision 1, and 297I.11, subdivision 2, is deposited in the account. Money in this fund 
31.27 	is appropriated to the commissioner of commerce for the purposes specified in this section 
31.28 	and sections 60A.951 to 60A.956.

31.29 	Sec. 2. Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read:
31.30 		Subd. 7.Fiscal year assessments. Such assessments shall be levied on July 1, 1965, 
31.31 	and at prior to the beginning of each fiscal period beginning July 1 and ending June 30 
31.32 	thereafter, and shall be based on the total estimated expense as herein referred to during 
32.1 	such period. Assessment revenue will be remitted to the commissioner for deposit in the 
32.2 	financial institutions account on or before July 1 of each year.

32.3 	Sec. 3. Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to 
32.4 	read:
32.5 		Subd. 11.Financial institutions account; appropriation. (a) The financial institutions 
32.6 	account is created as a separate account in the special revenue fund. The account consists 
32.7 	of funds received from assessments under subdivision 7 and examination fees under 
32.8 	subdivision 8. Earnings, including interest, dividends, and any other earnings arising from 
32.9 	account assets, must be credited to the account.
32.10 	(b) Funds in the account are annually appropriated to the commissioner of commerce 
32.11 	for activities under this section.

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

32.13 	Sec. 4. Minnesota Statutes 2016, section 53B.11, subdivision 1, is amended to read:
32.14 		Subdivision 1.Fee. The annual fee for renewal of a license under this chapter is $2,500
32.15 	$3,030.

32.16 	Sec. 5. Minnesota Statutes 2016, section 58.10, subdivision 1, is amended to read:
32.17 		Subdivision 1.Amounts. The following fees must be paid to the commissioner:
32.18 	(1) for a residential mortgage originator license, $1,000, $50 of which is credited to the 
32.19 	consumer education account in the special revenue fund;
32.20 	(2) for a renewal license, $500 $780, $50 of which is credited to the consumer education 
32.21 	account in the special revenue fund;
32.22 	(3) for a residential mortgage servicer's license, $500;
32.23 	(4) for a renewal license, $250; and
32.24 	(5) for a certificate of exemption, $100.

32.25 	Sec. 6. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:
32.26 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) The 
32.27 	commissioner of commerce shall:
32.28 	(1) develop and sponsor the implementation of statewide plans, programs, and strategies 
32.29 	to combat automobile theft, improve the administration of the automobile theft laws, and 
33.1 	provide a forum for identification of critical problems for those persons dealing with 
33.2 	automobile theft;
33.3 	(2) coordinate the development, adoption, and implementation of plans, programs, and 
33.4 	strategies relating to interagency and intergovernmental cooperation with respect to 
33.5 	automobile theft enforcement;
33.6 	(3) annually audit the plans and programs that have been funded in whole or in part to 
33.7 	evaluate the effectiveness of the plans and programs and withdraw funding should the 
33.8 	commissioner determine that a plan or program is ineffective or is no longer in need of 
33.9 	further financial support from the fund;
33.10 	(4) develop a plan of operation including:
33.11 	(i) an assessment of the scope of the problem of automobile theft, including areas of the 
33.12 	state where the problem is greatest;
33.13 	(ii) an analysis of various methods of combating the problem of automobile theft;
33.14 	(iii) a plan for providing financial support to combat automobile theft;
33.15 	(iv) a plan for eliminating car hijacking; and
33.16 	(v) an estimate of the funds required to implement the plan; and
33.17 	(5) distribute money, in consultation with the commissioner of public safety, pursuant 
33.18 	to subdivision 3 from the automobile theft prevention special revenue account for automobile 
33.19 	theft prevention activities, including:
33.20 	(i) paying the administrative costs of the program;
33.21 	(ii) providing financial support to the State Patrol and local law enforcement agencies 
33.22 	for automobile theft enforcement teams;
33.23 	(iii) providing financial support to state or local law enforcement agencies for programs 
33.24 	designed to reduce the incidence of automobile theft and for improved equipment and 
33.25 	techniques for responding to automobile thefts;
33.26 	(iv) providing financial support to local prosecutors for programs designed to reduce 
33.27 	the incidence of automobile theft;
33.28 	(v) providing financial support to judicial agencies for programs designed to reduce the 
33.29 	incidence of automobile theft;
33.30 	(vi) providing financial support for neighborhood or community organizations or business 
33.31 	organizations for programs designed to reduce the incidence of automobile theft and to 
34.1 	educate people about the common methods of automobile theft, the models of automobiles 
34.2 	most likely to be stolen, and the times and places automobile theft is most likely to occur; 
34.3 	and
34.4 	(vii) providing financial support for automobile theft educational and training programs 
34.5 	for state and local law enforcement officials, driver and vehicle services exam and inspections 
34.6 	staff, and members of the judiciary.
34.7 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
34.8 	money in the fund for the program's administrative and operating costs. The commissioner 
34.9 	is annually appropriated and must distribute the amount of the proceeds credited to the 
34.10 	automobile theft prevention special revenue account each year, less the transfer of $1,300,000 
34.11 	each year to the general fund insurance fraud prevention account described in section 297I.11, 
34.12 	subdivision 2.
34.13 	(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances 
34.14 	in the auto theft prevention account to the insurance fraud prevention account under section 
34.15 	45.0135, subdivision 6.

34.16 	Sec. 7. Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read:
34.17 		Subd. 2.Registration application and renewal filing fee. Every applicant for an initial 
34.18 	or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $50 $60
34.19 	in the case of an agent, and $100 in the case of an investment adviser. When an application 
34.20 	is denied or withdrawn, the filing fee shall be retained. A registered agent who has terminated 
34.21 	employment with one broker-dealer shall, before beginning employment with another 
34.22 	broker-dealer, pay a transfer fee of $25.

34.23 	Sec. 8. Minnesota Statutes 2016, section 216B.164, subdivision 5, is amended to read:
34.24 		Subd. 5.Dispute; resolution. In the event of disputes between an electric a public utility 
34.25 	and a qualifying facility, either party may request a determination of the issue by the 
34.26 	commission. In any such determination, the burden of proof shall be on the public utility. 
34.27 	The commission in its order resolving each such dispute shall require payments to the 
34.28 	prevailing party of the prevailing party's costs, disbursements, and reasonable attorneys' 
34.29 	fees, except that the qualifying facility will be required to pay the costs, disbursements, and 
34.30 	attorneys' fees of the public utility only if the commission finds that the claims of the 
34.31 	qualifying facility in the dispute have been made in bad faith, or are a sham, or are frivolous.

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

35.1 	Sec. 9. Minnesota Statutes 2016, section 216B.164, subdivision 9, is amended to read:
35.2 		Subd. 9.Municipal electric utility. For purposes of this section only, except subdivision 
35.3 	5, and with respect to municipal electric utilities only, the term "commission" means the 
35.4 	governing body of each municipal electric utility that adopts and has in effect rules 
35.5 	implementing this section which are consistent with the rules adopted by the Minnesota 
35.6 	Public Utilities Commission under subdivision 6. As used in this subdivision, the governing 
35.7 	body of a municipal electric utility means the city council of that municipality; except that, 
35.8 	if another board, commission, or body is empowered by law or resolution of the city council 
35.9 	or by its charter to establish and regulate rates and days for the distribution of electric energy 
35.10 	within the service area of the city, that board, commission, or body shall be considered the 
35.11 	governing body of the municipal electric utility.

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

35.13 	Sec. 10. Minnesota Statutes 2016, section 216B.164, is amended by adding a subdivision 
35.14 	to read:
35.15 		Subd. 11.Cooperative electric association. (a) For purposes of this section only, the 
35.16 	term "commission" means the board of directors of a cooperative association that (1) elects, 
35.17 	by resolution, to assume the authority delegated to the Public Utilities Commission over 
35.18 	cooperative electric associations under this section, and (2) adopts and has in effect rules 
35.19 	implementing this section. The rules must provide for a process to resolve disputes that 
35.20 	arise under this section, and must include a provision that a request by either party for 
35.21 	mediation of the dispute by an independent third party must be implemented. A cooperative 
35.22 	electric association that has adopted a resolution and rules under this subdivision is exempt 
35.23 	from regulation by the Public Utilities Commission under this section.
35.24 	(b) Except as provided in paragraph (c), any proceedings concerning the activities of a 
35.25 	cooperative electric association under this section that are pending at the Public Utilities 
35.26 	Commission on the effective date of this section are terminated on that date.
35.27 	(c) The Public Utilities Commission shall limit its investigation in Docket No. 16-512 
35.28 	determining whether the methodology used by cooperative associations to establish a fee 
35.29 	under section 216B.164, subdivision 3, paragraph (a), complies with state law. The 
35.30 	commission shall complete the investigation no later than December 31, 2017. A 
35.31 	methodology determined by the commission to comply with state law may not be challenged 
35.32 	in a dispute under section 216B.164. If the commission determines that a methodology does 
35.33 	not comply with state law, it shall clearly state the changes necessary to bring the 
36.1 	methodology into compliance, and the cooperative electric association shall proceed under 
36.2 	paragraph (a).

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

36.4 	Sec. 11. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:
36.5 		Subd. 2f.Solar energy standard. (a) In addition to the requirements of subdivisions 2a 
36.6 	and 2b, each public utility shall generate or procure sufficient electricity generated by solar 
36.7 	energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at 
36.8 	least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is 
36.9 	generated by solar energy.
36.10 	(b) For a public utility with more than 200,000 retail electric customers, at least ten 
36.11 	percent of the 1.5 percent goal must be met by solar energy generated by or procured from 
36.12 	solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less.
36.13 	(c) A public utility with between 50,000 and 200,000 retail electric customers:
36.14 	(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by 
36.15 	or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or 
36.16 	less; and
36.17 	(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions 
36.18 	of 40 kilowatts or less to a community solar garden program operated by the public utility 
36.19 	that has been approved by the commission.
36.20 	(b) (d) The solar energy standard established in this subdivision is subject to all the 
36.21 	provisions of this section governing a utility's standard obligation under subdivision 2a.
36.22 	(c) (e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the 
36.23 	retail electric sales in Minnesota be generated by solar energy.
36.24 	(d) (f) For the purposes of calculating the total retail electric sales of a public utility 
36.25 	under this subdivision, there shall be excluded retail electric sales to customers that are:
36.26 	(1) an iron mining extraction and processing facility, including a scram mining facility 
36.27 	as defined in Minnesota Rules, part 6130.0100, subpart 16; or
36.28 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
36.29 	manufacturer.
36.30 	Those customers may not have included in the rates charged to them by the public utility 
36.31 	any costs of satisfying the solar standard specified by this subdivision.
37.1 	(e) (g) A public utility may not use energy used to satisfy the solar energy standard under 
37.2 	this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may 
37.3 	not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the 
37.4 	solar standard under this subdivision.
37.5 	(f) (h) Notwithstanding any law to the contrary, a solar renewable energy credit associated 
37.6 	with a solar photovoltaic device installed and generating electricity in Minnesota after 
37.7 	August 1, 2013, but before 2020 may be used to meet the solar energy standard established 
37.8 	under this subdivision.
37.9 	(g) (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall 
37.10 	file a report with the commission reporting its progress in achieving the solar energy standard 
37.11 	established under this subdivision.

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

37.13 	Sec. 12. Minnesota Statutes 2016, section 216B.1694, subdivision 3, is amended to read:
37.14 		Subd. 3.Staging and permitting. (a) A Natural gas-fired plant that is located on one 
37.15 	site designated as an innovative energy project site under subdivision 1, clause (3), is 
37.16 	accorded the regulatory incentives granted to an innovative energy project under subdivision 
37.17 	2, clauses (1) to (3), and may exercise the authorities therein.
37.18 	(b) Following issuance of a final state or federal environmental impact statement for an 
37.19 	innovative energy project that was a subject of contested case proceedings before an 
37.20 	administrative law judge:
37.21 	(1) site and route permits and water appropriation approvals for an innovative energy 
37.22 	project must also be deemed valid for a plant meeting the requirements of paragraph (a) 
37.23 	and shall remain valid until the earlierlater of (i) four years from the date the final required 
37.24 	state or federal preconstruction permit is issued or (ii) June 30, 2019 2025; and
37.25 	(2) no air, water, or other permit issued by a state agency that is necessary for constructing 
37.26 	an innovative energy project may be the subject of contested case hearings, notwithstanding 
37.27 	Minnesota Rules, parts 7000.1750 to 7000.2200.

37.28 	Sec. 13. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:
37.29 		Subd. 2.Resource plan filing and approval. A utility shall file a resource plan with 
37.30 	the commission periodically in accordance with rules adopted by the commission. The 
37.31 	commission shall approve, reject, or modify the plan of a public utility, as defined in section 
37.32 	216B.02, subdivision 4, consistent with the public interest. In the resource plan proceedings 
38.1 	of all other utilities, the commission's order shall be advisory and the order's findings and 
38.2 	conclusions shall constitute prima facie evidence which may be rebutted by substantial 
38.3 	evidence in all other proceedings. With respect to utilities other than those defined in section 
38.4 	216B.02, subdivision 4, the commission shall consider the filing requirements and decisions 
38.5 	in any comparable proceedings in another jurisdiction. As a part of its resource plan filing, 
38.6 	a utility shall include the least cost plan for meeting 50 and 75 percent of all energy needs 
38.7 	from both new and refurbished capacity needs generating facilities through a combination 
38.8 	of conservation and renewable energy resources.

38.9 	EFFECTIVE DATE. This section is effective the day following final enactment, and 
38.10 	applies to resource plans filed with the commission on or after July 1, 2017.

38.11 	Sec. 14. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:
38.12 		Subd. 4.Preference for renewable energy facility. The commission shall not approve 
38.13 	a new or refurbished nonrenewable energy facility in an integrated resource plan or a 
38.14 	certificate of need, pursuant to section 216B.243, nor shall the commission allow rate 
38.15 	recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the 
38.16 	utility has demonstrated that a renewable energy facility is not in the public interest. When 
38.17 	making the public interest determination, the commission must include consider:
38.18 	(1) whether the resource plan helps the utility achieve the greenhouse gas reduction 
38.19 	goals under section 216H.02, the renewable energy standard under section 216B.1691, or 
38.20 	the solar energy standard under section 216B.1691, subdivision 2f.;
38.21 	(2) impacts on local and regional grid reliability;
38.22 	(3) utility and ratepayer impacts resulting from the intermittent nature of renewable 
38.23 	energy facilities, including but not limited to the costs of purchasing wholesale electricity 
38.24 	in the market and the costs of providing ancillary services; and
38.25 	(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, 
38.26 	changes in transmission costs, portfolio diversification, and environmental compliance 
38.27 	costs.

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

38.29 	Sec. 15. Minnesota Statutes 2016, section 216B.62, subdivision 3b, is amended to read:
38.30 		Subd. 3b.Assessment for department regional and national duties. In addition to 
38.31 	other assessments in subdivision 3, the department may assess up to $1,000,000 $500,000
38.32 	per fiscal year for performing its duties under section 216A.07, subdivision 3a. The amount 
39.1 	in this subdivision shall be assessed to energy utilities in proportion to their respective gross 
39.2 	operating revenues from retail sales of gas or electric service within the state during the last 
39.3 	calendar year and shall be deposited into an account in the special revenue fund and is 
39.4 	appropriated to the commissioner of commerce for the purposes of section 216A.07, 
39.5 	subdivision 3a. An assessment made under this subdivision is not subject to the cap on 
39.6 	assessments provided in subdivision 3 or any other law. For the purpose of this subdivision, 
39.7 	an "energy utility" means public utilities, generation and transmission cooperative electric 
39.8 	associations, and municipal power agencies providing natural gas or electric service in the 
39.9 	state. This subdivision expires June 30, 2017 2021.

39.10 	Sec. 16. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision 
39.11 	to read:
39.12 		Subd. 7a.Multifamily residential dwelling. "Multifamily residential dwelling" means 
39.13 	a residential dwelling containing five or more units intended for use as a residence by tenants 
39.14 	or lessees of the owner.

39.15 	Sec. 17. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision to 
39.16 	read:
39.17 		Subd. 10.Voice-over-Internet protocol service. "Voice-over-Internet protocol service" 
39.18 	or "VoIP service" means any service that (1) enables real-time two-way voice 
39.19 	communications that originate from or terminate at the user's location in Internet protocol 
39.20 	or any successor protocol, and (2) permits users generally to receive calls that originate on 
39.21 	the public switched telephone network and terminate calls to the public switched telephone 
39.22 	network.

39.23 	Sec. 18. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision to 
39.24 	read:
39.25 		Subd. 11.Internet protocol-enabled service. "Internet protocol-enabled service" or 
39.26 	"IP-enabled service" means any service, capability, functionality, or application provided 
39.27 	using Internet protocol, or any successor protocol, that enables an end user to send or receive 
39.28 	a communication in Internet protocol format or any successor format, regardless of whether 
39.29 	that communication is voice, data, or video.

40.1 	Sec. 19. [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND 
40.2 	INTERNET PROTOCOL-ENABLED SERVICE.
40.3 		Subdivision 1.Regulation prohibited. Except as provided in this section, no state 
40.4 	agency, including the commission and the Department of Commerce, or political subdivision 
40.5 	of this state shall by rule, order, or other means directly or indirectly regulate the entry, 
40.6 	rates, terms, quality of service, availability, classification, or any other aspect of VoIP service 
40.7 	or IP-enabled service.
40.8 		Subd. 2.VoIP regulation. (a) To the extent permitted by federal law, VoIP service is 
40.9 	subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to 
40.10 	the collection and remittance of the surcharges governed by those sections.
40.11 	(b) A provider of VoIP service must comply with the requirements of chapter 403 
40.12 	applicable to the provision of access to 911 service by service providers, except to the extent 
40.13 	those requirements conflict with federal requirements for the provision of 911 service by 
40.14 	VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP provider is 
40.15 	entitled to the benefit of the limitation of liability provisions of section 403.07, subdivision 
40.16 	5. Beginning June 1, 2017, and continuing each June 1 thereafter, each VoIP provider shall 
40.17 	file a plan with the commission describing how it will comply with the requirements of this 
40.18 	paragraph. After its initial filing under this paragraph, a VoIP provider shall file with the 
40.19 	commission either an update of the plan or a statement certifying that the plan and personnel 
40.20 	contact information previously filed is still current.
40.21 		Subd. 3.Relation to other law. Nothing in this section restricts, creates, expands, or 
40.22 	otherwise affects or modifies:
40.23 	(1) the commission's authority under the Federal Communications Act of 1934, United 
40.24 	States Code, title 47, sections 251 and 252;
40.25 	(2) any applicable wholesale tariff or any commission authority related to wholesale 
40.26 	services;
40.27 	(3) any commission jurisdiction over (i) intrastate switched access rates, terms, and 
40.28 	conditions, including the implementation of federal law with respect to intercarrier 
40.29 	compensation, or (ii) existing commission authority to address or affect the resolution of 
40.30 	disputes regarding intercarrier compensation;
40.31 	(4) the rights of any entity, or the authority of the commission and local government 
40.32 	authorities, with respect to the use and regulation of public rights-of-way under sections 
40.33 	237.162 and 237.163;
41.1 	(5) the establishment or enforcement of standards, requirements or procedures in 
41.2 	procurement policies, internal operational policies, or work rules of any state agency or 
41.3 	political subdivision of the state relating to the protection of intellectual property; or
41.4 	(6) the authority of the attorney general to apply and enforce chapters 325C to 325G 
41.5 	and 325K to 325M or other laws of general applicability governing consumer protection 
41.6 	and trade practices.
41.7 		Subd. 4.Exemption. The following services delivered by IP-enabled service are not 
41.8 	regulated under this chapter:
41.9 	(1) video services provided by a cable communications system, as defined in section 
41.10 	238.02, subdivision 3;
41.11 	(2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
41.12 	(3) any other IP-enabled video service.
41.13 		Subd. 5.Preservation of existing landline telephone service. Nothing in this section 
41.14 	restricts, creates, expands, or otherwise affects or modifies the obligations of a telephone 
41.15 	company under this chapter to offer landline telephone service that is not Voice-over-Internet 
41.16 	protocol service.

41.17 	Sec. 20. Minnesota Statutes 2016, section 237.295, is amended by adding a subdivision 
41.18 	to read:
41.19 		Subd. 2a.Assessment of costs related to providers of Voice-over-Internet protocol 
41.20 	service. The department and the commission may assess their actual regulatory costs directly 
41.21 	related to implementation of section 237.037 with respect to providers of Voice-over-Internet 
41.22 	protocol service. The total amount that may be assessed to all providers of 
41.23 	Voice-over-Internet protocol service under this subdivision shall not exceed the lesser of 
41.24 	either the department and commission's actual regulatory costs directly related to 
41.25 	implementation of this section in calendar years 2019, 2020, and 2021, or $625,000 in 
41.26 	calendar year 2019, $925,000 in calendar year 2020, and $1,200,000 in calendar year 2021, 
41.27 	respectively.

41.28 	Sec. 21. [237.417] PERSONAL INFORMATION; PROHIBITION.
41.29 	No telecommunications or Internet service provider that has entered into a franchise 
41.30 	agreement, right-of-way agreement, or other contract with the state of Minnesota or a 
41.31 	political subdivision, or that uses facilities that are subject to such agreements, even if it is 
41.32 	not a party to the agreement, may collect personal information from a customer resulting 
42.1 	from the customer's use of the telecommunications or Internet service provider without 
42.2 	express written approval from the customer. No such telecommunication or Internet service 
42.3 	provider shall refuse to provide its services to a customer on the grounds that the customer 
42.4 	has not approved collection of the customer's personal information.

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

42.6 	Sec. 22. Minnesota Statutes 2016, section 239.101, subdivision 2, is amended to read:
42.7 		Subd. 2.Weights and measures fees. The director shall charge a fee to the owner for 
42.8 	inspecting and testing weights and measures, providing metrology services and consultation, 
42.9 	and providing petroleum quality assurance tests at the request of a licensed distributor. 
42.10 	Money collected by the director must be paid into the state treasury and as follows: (1) ten 
42.11 	percent of metrology fees and ten percent of all other fees must be credited to the petroleum 
42.12 	inspection fee account; and (2) the remainder must be credited to the state general fund.

42.13 	Sec. 23. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:
42.14 		Subd. 2.Automobile theft prevention account. A special revenue account in the state 
42.15 	treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1. 
42.16 	Of the revenue in the account, $1,300,000 each year must be transferred to the general fund
42.17 	insurance fraud prevention account under section 45.0135, subdivision 6. Revenues in excess 
42.18 	of $1,300,000 each year may be used only for the automobile theft prevention program 
42.19 	described in section 65B.84.

42.20 	Sec. 24. RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK 
42.21 	FORCE.
 42.22 		Subdivision 1.Establishment. The Residential PACE Consumer Protection Legislation 
42.23 	Task Force shall develop recommendations for consumer protection legislation for any 
42.24 	energy improvements financing program implemented under Minnesota Statutes, sections 
42.25 	216C.435 to 216C.436, for single-family residential dwellings. For purposes of this section, 
42.26 	"residential PACE" or "PACE" means energy improvement financing programs for 
42.27 	single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435 
42.28 	to 216C.436.
42.29 		Subd. 2.Task force. (a) The task force consists of 16 members as follows:
42.30 	(1) one member appointed by the Minnesota Association of Realtors;
42.31 	(2) one member appointed by the Center for Energy and Environment;
43.1 	(3) one member appointed by the Minnesota Bankers Association;
43.2 	(4) one member appointed by the Legal Services Advocacy Project;
43.3 	(5) one member appointed by the Minnesota Credit Union Network;
43.4 	(6) one member appointed by the Minnesota Solar Energy Industry Association;
43.5 	(7) one member appointed by the St. Paul Port Authority;
43.6 	(8) one member appointed by the League of Minnesota Cities;
43.7 	(9) one member appointed by the Association of Minnesota Counties;
43.8 	(10) one member appointed by AARP Minnesota;
43.9 	(11) one member appointed by Fresh Energy;
43.10 	(12) one member appointed by the Citizens Utility Board of Minnesota;
43.11 	(13) one member appointed by Clean Energy Economy Minnesota;
43.12 	(14) one member appointed by the Minnesota Land Title Association;
43.13 	(15) one member appointed by an organization with experience implementing residential 
43.14 	PACE programs in other states; and
43.15 	(16) the commissioner of commerce or a designee.
43.16 	(b) Any public member can designate a substitute from the same organization to replace 
43.17 	that member at a meeting of the task force.
43.18 		Subd. 3.Duties. The task force must develop recommendations to:
43.19 	(1) address concerns regarding the possible constraints on free alienation of residential 
43.20 	property caused by existence and amount of the PACE liens;
43.21 	(2) reduce and minimize any point-of-sale confusion in transactions involving 
43.22 	PACE-encumbered homes;
43.23 	(3) ensure conspicuous and meaningful disclosure of, among other things:
43.24 	(i) all costs and fees of a residential PACE loan; and
43.25 	(ii) the risks, such as foreclosure and higher costs, that may be associated with residential 
43.26 	PACE loans relative to other financing mechanisms;
43.27 	(4) ensure that the ability to repay standard uses commonly accepted underwriting 
43.28 	principles;
44.1 	(5) ensure that consumer provisions required of and protections that apply to conventional 
44.2 	loans and other financing options, including but not limited to the Truth in Lending Act and 
44.3 	the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
44.4 	(6) address any unique protections necessary for elderly, low-income homeowners and 
44.5 	other financially vulnerable homeowners;
44.6 	(7) establish criteria for ensuring the cost-effectiveness of PACE-enabled clean energy 
44.7 	improvements; and
44.8 	(8) address any other issues the task force identifies that are necessary to protect 
44.9 	consumers.
44.10 		Subd. 4.Administrative support. The commissioner of commerce shall provide 
44.11 	administrative support and meeting space for the task force.
44.12 		Subd. 5.Compensation. Members serve without compensation and shall not be 
44.13 	reimbursed for expenses.
44.14 		Subd. 6.Chair. The commissioner of commerce or the commissioner's designee shall 
44.15 	serve as chair.
44.16 		Subd. 7.Meetings. The task force shall meet regularly, at the call of the chair. Meetings 
44.17 	of the task force are subject to Minnesota Statutes, chapter 13D.
44.18 		Subd. 8.Appointments; first meeting. Appointments must be made by June 1, 2017. 
44.19 	The commissioner of commerce must convene the first meeting by July 15, 2017.
44.20 		Subd. 9.Report to legislature. By January 15, 2018, the commissioner shall submit a 
44.21 	report detailing the task force's findings and recommendations to the chairs and ranking 
44.22 	minority members of the senate and house of representatives committees with jurisdiction 
44.23 	over energy and consumer protection policy and finance. The report must include any draft 
44.24 	legislation necessary to implement the recommendations of the task force.
44.25 		Subd. 10.Suspension of residential PACE. Until legislation is enacted establishing 
44.26 	consumer protections that addresses, but is not limited to, the concerns identified in 
44.27 	subdivision 3, no programs for the financing of energy improvements on a single-family  
44.28 	residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436, 
44.29 	may be operated after the effective date of this section.
44.30 		Subd. 11.Expiration. The task force shall expire January 15, 2018, or after submitting 
44.31 	the report required in this section, whichever is earlier.

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

45.1 	Sec. 25.  REPEALER.
 45.2 	Minnesota Statutes 2016, section 46.131, subdivision 5, is repealed.

45.3 	ARTICLE 3
45.4 	LABOR AND INDUSTRY

45.5 	Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
45.6 	175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.
45.7 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall convene 
45.8 	industry representatives, identify occupational competency standards for dual training, and 
45.9 	provide technical assistance to develop dual-training programs. The goal of dual training 
45.10 	is to provide employees of an employer with training to acquire competencies that the 
45.11 	employer requires. The competency standards shall be identified for employment in 
45.12 	occupations in advanced manufacturing, health care services, information technology, and 
45.13 	agriculture. Competency standards are not rules and are exempt from the rulemaking 
45.14 	provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do 
45.15 	not apply.
45.16 		Subd. 2.Definition; competency standards Definitions. For purposes of this section, 
45.17 	the following terms have the meanings given them:
45.18 	(1) "competency standards" means the specific knowledge and skills necessary for a 
45.19 	particular occupation.; and
45.20 	(2) "dual-training program" means an employment-based earn-as-you-learn program 
45.21 	where the trainee is employed by a participating employer and receives structured on-the-job 
45.22 	training and technical instruction in accordance with the competency standards.
45.23 		Subd. 3.Competency standards identification process. In identifying competency 
45.24 	standards, the commissioner shall consult with the commissioner of the Office of Higher 
45.25 	Education and the commissioner of employment and economic development and convene 
45.26 	recognized industry experts, representative employers, higher education institutions, 
45.27 	representatives of the disabled community, and representatives of labor to assist in identifying 
45.28 	credible competency standards. Competency standards must be consistent with, to the extent 
45.29 	available and practical, recognized international and national standards.
45.30 		Subd. 4.Duties. The commissioner shall:
45.31 	(1) convene industry representatives to identify, develop, and implement dual-training 
45.32 	programs;
46.1 	(2) identify competency standards for entry level entry-level and higher skill levels;
46.2 	(2) (3) verify the competency standards and skill levels and their transferability by subject 
46.3 	matter expert representatives of each respective industry;
46.4 	(3) (4) develop models for Minnesota educational institutions to engage in providing 
46.5 	education and training to meet the competency standards established;
46.6 	(4) (5) encourage participation by employers and labor in the competency standard 
46.7 	identification process for occupations in their industry; and
46.8 	(5) (6) align dual training competency standards dual-training programs with other 
46.9 	workforce initiatives.; and
46.10 	(7) provide technical assistance to develop dual-training programs.
46.11 		Subd. 5.Notification. The commissioner must communicate identified competency 
46.12 	standards to the commissioner of the Office of Higher Education for the purpose of the dual 
46.13 	training dual-training competency grant program under section 136A.246. The commissioner 
46.14 	of labor and industry shall maintain the competency standards on the department's Web 
46.15 	site.

46.16 	Sec. 2. [175.46] YOUTH SKILLS TRAINING PROGRAM.
46.17 		Subdivision 1.Program established; grants authorized. The commissioner shall 
46.18 	approve youth skills training programs established for the purpose of providing work-based 
46.19 	skills training for student learners ages 16 and older. The commissioner shall award grants 
46.20 	to local partnerships for the implementation and coordination of local youth skills training 
46.21 	programs as provided in this section.
46.22 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
46.23 	the meanings given.
46.24 	(b) "School district" means a school district or charter school.
46.25 	(c) "Local partnership" means a school district, nonpublic school, intermediate school 
46.26 	district, or postsecondary institution, in partnership with other school districts, nonpublic 
46.27 	schools, intermediate school districts, postsecondary institutions, workforce development 
46.28 	authorities, economic development authorities, nonprofit organizations, labor unions, or 
46.29 	individuals who have an agreement with one or more local employers to be responsible for 
46.30 	implementing and coordinating a local youth skills training program.
46.31 	(d) "Student learner" means a student who is both enrolled in a course of study at a public 
46.32 	or nonpublic school to obtain related instruction for academic credit and is employed under 
47.1 	a written agreement to obtain on-the-job skills training under a youth skills training program 
47.2 	approved under this section.
47.3 		Subd. 3.Duties. (a) The commissioner shall:
47.4 	(1) approve youth skills training programs in high-growth, high-demand occupations 
47.5 	that provide:
47.6 	(i) that the work of the student learner in the occupations declared particularly hazardous 
47.7 	shall be incidental to the training;
47.8 	(ii) that the work shall be intermittent and for short periods of time, and under the direct 
47.9 	and close supervision of a qualified and experienced person;
47.10 	(iii) that safety instruction shall be provided to the student learner and may be given by 
47.11 	the school and correlated by the employer with on-the-job training;
47.12 	(iv) a schedule of organized and progressive work processes to be performed on the job;
47.13 	(v) a schedule of wage rates in compliance with section 177.24; and
47.14 	(vi) whether the student learner will obtain secondary school academic credit, 
47.15 	postsecondary credit, or both, for the training program;
47.16 	(2) approve occupations and maintain a list of approved occupations for programs under 
47.17 	this section;
47.18 	(3) issue requests for proposals for grants;
47.19 	(4) work with individuals representing industry and labor to develop new youth skills 
47.20 	training programs;
47.21 	(5) develop model program guides;
47.22 	(6) monitor youth skills training programs;
47.23 	(7) provide technical assistance to local partnership grantees;
47.24 	(8) work with providers to identify paths for receiving postsecondary credit for 
47.25 	participation in the youth skills training program; and
47.26 	(9) approve other activities as necessary to implement the program.
47.27 	(b) The commissioner shall collaborate with stakeholders, including, but not limited to, 
47.28 	representatives of secondary school institutions, career and technical education instructors, 
47.29 	postsecondary institutions, businesses, and labor, in developing youth skills training 
48.1 	programs, and identifying and approving occupations and competencies for youth skills 
48.2 	training programs.
48.3 		Subd. 4.Training agreement. Each student learner shall sign a written training agreement 
48.4 	on a form prescribed by the commissioner. Each agreement shall contain the name of the 
48.5 	student learner, and be signed by the employer, the school coordinator or administrator, and 
48.6 	the student learner, or if the student learner is a minor, by the student's parent or legal 
48.7 	guardian. Copies of each agreement shall be kept on file by both the school and the employer.
48.8 		Subd. 5.Program approval. The commissioner may grant exemptions from the 
48.9 	provisions of chapter 181A for student learners participating in youth skills training programs 
48.10 	approved by the commissioner under this section. The approval of a youth skills training 
48.11 	program will be reviewed annually. The approval of a youth skills training program may 
48.12 	be revoked at any time if the commissioner finds that:
48.13 	(1) all provisions of subdivision 3 have not been met in the previous year; or
48.14 	(2) reasonable precautions have not been observed for the safety of minors.
48.15 	The commissioner shall maintain and annually update a list of occupations and tasks suitable 
48.16 	for student learners in compliance with federal law.
48.17 		Subd. 6.Interactions with education finance. (a) For the purpose of computing state 
48.18 	aids for the enrolling school district, the hours a student learner participates in a youth skills 
48.19 	training program under this section must be counted in the student's hours of average daily 
48.20 	membership under section 126C.05.
48.21 	(b) Educational expenses for a participating student learner must be included in the 
48.22 	enrolling district's career and technical revenue as provided under section 124D.4531.
48.23 		Subd. 7.Academic credit. A school district may grant academic credit to student learners 
48.24 	participating in youth skills training programs under this section in accordance with local 
48.25 	requirements.
48.26 		Subd. 8.Postsecondary credit. A postsecondary institution may award postsecondary 
48.27 	credit to a student learner who successfully completes a youth skills training program.
48.28 		Subd. 9.Work-based learning program. A youth skills training program shall qualify 
48.29 	as a work-based learning program if it meets requirements for a career and technical education 
48.30 	program and is supervised by a qualified teacher with appropriate licensure for a work-based 
48.31 	learning teacher-coordinator.
49.1 		Subd. 10.School coordinator. Unless otherwise required for a work-based learning 
49.2 	program, a youth skills training program may be supervised by a qualified teacher or by an 
49.3 	administrator as determined by the school district.
49.4 		Subd. 11.Other apprenticeship programs. (a) This section shall not affect programs 
49.5 	under section 124D.47.
49.6 	(b) A registered apprenticeship program governed by chapter 178 may grant credit 
49.7 	toward the completion of a registered apprenticeship for the successful completion of a 
49.8 	youth skills training program under this section.
49.9 		Subd. 12.Grant applications. (a) Applications for grants must be made to the 
49.10 	commissioner on a form provided by the commissioner.
49.11 	(b) A local partnership may apply for a grant and shall include in its grant application:
49.12 	(1) the identity of each school district, public agency, nonprofit organization, or individual 
49.13 	who is a participant in the local partnership;
49.14 	(2) the identity of each employer who is a participant in the local partnership and the 
49.15 	amount of matching funds provided by each employer, if any;
49.16 	(3) a plan to accomplish the implementation and coordination of activities specified in 
49.17 	this subdivision; and
49.18 	(4) the identity of a fiscal agent responsible for receiving, managing, and accounting for 
49.19 	the grant.
49.20 		Subd. 13.Grant awards. (a) A local partnership awarded a grant under this section 
49.21 	must use the grant award for any of the following implementation and coordination activities:
49.22 	(1) recruiting additional employers to provide on-the-job training and supervision for 
49.23 	student learners and providing technical assistance to those employers;
49.24 	(2) recruiting students to participate in the local youth skills training program and 
49.25 	monitoring the progress of student learners participating in the program and monitoring 
49.26 	program outcomes;
49.27 	(3) coordinating youth skills training activities within participating school districts and 
49.28 	among participating school districts, postsecondary institutions, and employers;
49.29 	(4) coordinating academic, vocational and occupational learning, school-based and 
49.30 	work-based learning, and secondary and postsecondary education for participants in the 
49.31 	local youth skills training program;
50.1 	(5) coordinating transportation for student learners participating in the local youth skills 
50.2 	training program; and
50.3 	(6) any other implementation or coordination activity that the commissioner may direct 
50.4 	or permit the local partnership to perform.
50.5 	(b) Grant awards may not be used to directly or indirectly pay the wages of a student 
50.6 	learner.
50.7 		Subd. 14.Outcomes. The following outcomes are expected of a local youth skills training 
50.8 	program:
50.9 	(1) at least 80 percent of the student learners who participate in a youth skills training 
50.10 	program receive a high school diploma when eligible upon completion of the training 
50.11 	program; and
50.12 	(2) at least 60 percent of the student learners who participate in a youth skills training 
50.13 	program receive a recognized credential upon completion of the training program.
50.14 		Subd. 15.Reporting. (a) By February 1, 2019, and annually thereafter, the commissioner 
50.15 	shall report on the activity and outcomes of the program for the preceding fiscal year to the 
50.16 	chairs of the legislative committees with jurisdiction over jobs and economic growth policy 
50.17 	and finance. At a minimum, the report must include:
50.18 	(1) the number of student learners who commenced the training program and the number 
50.19 	who completed the training program; and
50.20 	(2) recommendations, if any, for changes to the program.
50.21 	(b) The initial report shall include a detailed description of the differences between the 
50.22 	state and federal systems in child safety standards.

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

51.4		License Classification
	License Duration
		
51.5			1 year
	2 years
	
51.6		Entry level
	$10
	$20
	
51.7		Journeyworker
	$20
	$40
	
51.8		Master
	$40
	$80
	
51.9		Business
		$180
	
51.10 	(d) If there is a continuing education requirement for renewal of the license, then a 
51.11 	continuing education fee must be included in the renewal license fee. The continuing 
51.12 	education fee for all license classifications shall be: $10 if the renewal license duration is 
51.13 	one year; and $20 if the renewal license duration is two years.
51.14 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, 
51.15 	then a board fee must be included in the license fee and the renewal license fee. The board 
51.16 	fee for all license classifications shall be: $4 if the license duration is one year; and $8 if 
51.17 	the license duration is two years.
51.18 	(f) If the application is for the renewal of a license issued under sections 326B.802 to 
51.19 	326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 
51.20 	3, and any additional assessment required under section 326B.89, subdivision 16, must be 
51.21 	included in the license renewal fee.
51.22 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
51.23 	July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:

51.24		License Classification
	License Duration
		
51.25			1 year
	2 years
	
51.26		Entry level
	$10
	$20
	
51.2851.27
		Journeyworker
	$15
	$35
$30
	
51.3051.29
		Master
	$30
	$75
$60
	
51.3251.31
		Business
		$160
$120
	
51.33 	If there is a continuing education requirement for renewal of the license, then a continuing 
51.34 	education fee must be included in the renewal license fee. The continuing education fee for 
51.35 	all license classifications shall be $5.

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

52.13 	Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
52.14 		Subdivision 1.Building permits. (a) Fees for building permits submitted as required 
52.15 	in section 326B.106 326B.107 include:
52.16 	(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; 
52.17 	and
52.18 	(2) the surcharge required by section 326B.148.
52.19 	(b) The total valuation and fee schedule is:
52.20 	(1) $1 to $500, $29.50 $21;
52.21 	(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100 
52.22 	or fraction thereof, to and including $2,000;
52.23 	(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each 
52.24 	additional $1,000 or fraction thereof, to and including $25,000;
52.25 	(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each 
52.26 	additional $1,000 or fraction thereof, to and including $50,000;
52.27 	(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for 
52.28 	each additional $1,000 or fraction thereof, to and including $100,000;
52.29 	(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for 
52.30 	each additional $1,000 or fraction thereof, to and including $500,000;
53.1 	(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
53.2 	for each additional $1,000 or fraction thereof, to and including $1,000,000; and
53.3 	(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
53.4 	for each additional $1,000 or fraction thereof.
53.5 	(c) Other inspections and fees are:
53.6 	(1) inspections outside of normal business hours (minimum charge two hours), $63.25 
53.7 	per hour;
53.8 	(2) reinspection fees, $63.25 per hour;
53.9 	(3) inspections for which no fee is specifically indicated (minimum charge one-half 
53.10 	hour), $63.25 per hour; and
53.11 	(4) additional plan review required by changes, additions, or revisions to approved plans 
53.12 	(minimum charge one-half hour), $63.25 per hour.
53.13 	(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, 
53.14 	then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, 
53.15 	hourly wages, and fringe benefits of the employees involved.

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

53.18 	Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
53.19 	read:
53.20 		Subd. 16.Wind electric systems. (a) The inspection fee for the installation of a wind 
53.21 	turbine is:
53.22 	(1) 0 watts to and including 100,000 watts, $80;
53.23 	(2) 100,001 watts to and including 500,000 watts, $105;
53.24 	(3) 500,001 watts to and including 1,000,000 watts, $120;
53.25 	(4) 1,000,001 watts to and including 1,500,000 watts, $125;
53.26 	(5) 1,500,001 watts to and including 2,000,000 watts, $130;
53.27 	(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
53.28 	(7) 3,000,001 watts and larger, $160.
53.29 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
53.30 	current energy output of one individual wind turbine.

54.1 	Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
54.2 	read:
54.3 		Subd. 17.Solar photovoltaic systems. (a) The inspection fee for the installation of a 
54.4 	solar photovoltaic system is:
54.5 	(1) 0 watts to and including 5,000 watts, $60;
54.6 	(2) 5,001 watts to and including 10,000 watts, $100;
54.7 	(3) 10,001 watts to and including 20,000 watts, $150;
54.8 	(4) 20,001 watts to and including 30,000 watts, $200;
54.9 	(5) 30,001 watts to and including 40,000 watts, $250;
54.10 	(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional 
54.11 	10,000 watts over 40,000 watts;
54.12 	(7) 1,000,000 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts 
54.13 	over 1,000,000 watts; and
54.14 	(8) 5,000,000 watts and larger, $8,650, and $10 for each additional 10,000 watts over 
54.15 	5,000,000 watts.
54.16 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
54.17 	current energy output of the solar photovoltaic system.

54.18 	Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:
54.19 		Subd. 2.Powers; duties; administrative support. (a) The board shall have the power 
54.20 	to:
54.21 	(1) elect its chair, vice-chair, and secretary;
54.22 	(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 
54.23 	and containing such other provisions as may be useful and necessary for the efficient conduct 
54.24 	of the business of the board;
54.25 	(3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code 
54.26 	amendments thereto. The Plumbing Code shall include the minimum standards described 
54.27 	in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the 
54.28 	Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in 
54.29 	subdivision 6, paragraphs (b), (c), and (d);
55.1 	(4) review requests for final interpretations and issue final interpretations as provided 
55.2 	in section 326B.127, subdivision 5;
55.3 	(5) adopt rules that regulate the licensure, certification, or registration of plumbing 
55.4 	contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers, 
55.5 	restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and 
55.6 	testers, water conditioning contractors, and water conditioning installers, and other persons 
55.7 	engaged in the design, installation, and alteration of plumbing systems or engaged in or 
55.8 	working at the business of water conditioning installation or service, or engaged in or 
55.9 	working at the business of medical gas system installation, maintenance, or repair, except 
55.10 	for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall 
55.11 	adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) 
55.12 	and (f);
55.13 	(6) adopt rules that regulate continuing education for individuals licensed as master 
55.14 	plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers, 
55.15 	registered unlicensed individuals, water conditioning contractors masters, and water 
55.16 	conditioning installers journeymen, and for individuals certified under sections 326B.437
55.17 	and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in 
55.18 	subdivision 6, paragraphs (e) and (f);
55.19 	(7) refer complaints or other communications to the commissioner, whether oral or 
55.20 	written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 
55.21 	order that the commissioner has the authority to enforce pertaining to code compliance, 
55.22 	licensure, or an offering to perform or performance of unlicensed plumbing services;
55.23 	(8) approve per diem and expenses deemed necessary for its members as provided in 
55.24 	subdivision 3;
55.25 	(9) approve license reciprocity agreements;
55.26 	(10) select from its members individuals to serve on any other state advisory council, 
55.27 	board, or committee; and
55.28 	(11) recommend the fees for licenses, registrations, and certifications.
55.29 	Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 
55.30 	Board of High Pressure Piping Systems, the commissioner of labor and industry shall 
55.31 	administer and enforce the provisions of this chapter and any rules promulgated pursuant 
55.32 	thereto.
55.33 	(b) The board shall comply with section 15.0597, subdivisions 2 and 4.
56.1 	(c) The commissioner shall coordinate the board's rulemaking and recommendations 
56.2 	with the recommendations and rulemaking conducted by the other boards created pursuant 
56.3 	to this chapter. The commissioner shall provide staff support to the board. The support 
56.4 	includes professional, legal, technical, and clerical staff necessary to perform rulemaking 
56.5 	and other duties assigned to the board. The commissioner of labor and industry shall supply 
56.6 	necessary office space and supplies to assist the board in its duties.

56.7 	Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:
56.8 		Subd. 3.Water conditioning installation. "Water conditioning installation" means the 
56.9 	installation of appliances, appurtenances, and fixtures designed to treat water so as to alter, 
56.10 	modify, add or remove mineral, chemical or bacterial content, said installation to be made 
56.11 	in a water distribution system serving:
56.12 	(1) a single family residential unit, which has been initially established by a licensed 
56.13 	plumber, and does not involve a direct connection without an air gap to a soil or waste pipe.; 
56.14 	or
56.15 	(2) a multifamily or nonresidential building, where the plumbing installation has been 
56.16 	initially established by a  licensed plumber. Isolation valves shall be required for all water 
56.17 	conditioning installations and shall be readily accessible. Water conditioning installation 
56.18 	does not include:
56.19 	(i) a valve that allows isolation of the water conditioning installation;
56.20 	(ii) piping greater than two-inch nominal pipe size; or
56.21 	(iii) a direct connection without an air gap to a soil or waste pipe.

56.22 	Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
56.23 	to read:
56.24 		Subd. 5.Direct supervision. The term "direct supervision," with respect to direct 
56.25 	supervision of a registered unlicensed individual, means that:
56.26 	(1) at all times while the registered unlicensed individual is performing water conditioning 
56.27 	installation work, a direct supervisor is present at the location where the registered unlicensed 
56.28 	individual is working;
56.29 	(2) the direct supervisor is physically present and immediately available to the registered 
56.30 	unlicensed individual at all times for assistance and direction;
57.1 	(3) any form of electronic supervision does not meet the requirement of being physically 
57.2 	present;
57.3 	(4) the direct supervisor reviews the water conditioning installation work performed by 
57.4 	the registered unlicensed individual before the water conditioning installation is operated; 
57.5 	and
57.6 	(5) the direct supervisor determines that all water conditioning installation work 
57.7 	performed by the registered unlicensed individual is performed in compliance with sections 
57.8 	326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, 
57.9 	and all orders issued under section 326B.082.

57.10 	Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
57.11 	to read:
57.12 		Subd. 6.Direct supervisor. "Direct supervisor" means a master plumber, journeyman 
57.13 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
57.14 	master, or water conditioning journeyman responsible for providing direct supervision of 
57.15 	a registered unlicensed individual.

57.16 	Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:
57.17 		Subd. 2.Qualifications for licensing. (a) A water conditioning master license shall be 
57.18 	issued only to an individual who has demonstrated skill in planning, superintending, and
57.19 	servicing, and installing water conditioning installations, and has successfully passed the 
57.20 	examination for water conditioning masters. A water conditioning journeyman license shall 
57.21 	only be issued to an individual other than a water conditioning master who has demonstrated 
57.22 	practical knowledge of water conditioning installation, and has successfully passed the 
57.23 	examination for water conditioning journeymen. A water conditioning journeyman must 
57.24 	successfully pass the examination for water conditioning masters before being licensed as 
57.25 	a water conditioning master.
57.26 	(b) Each water conditioning contractor must designate a responsible licensed master 
57.27 	plumber or a responsible licensed water conditioning master, who shall be responsible for 
57.28 	the performance of all water conditioning installation and servicing in accordance with the 
57.29 	requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 
57.30 	326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 
57.31 	the water conditioning contractor is an individual or sole proprietorship, the responsible 
57.32 	licensed master must be the individual, proprietor, or managing employee. If the water 
57.33 	conditioning contractor is a partnership, the responsible licensed master must be a general 
58.1 	partner or managing employee. If the water conditioning contractor is a limited liability 
58.2 	company, the responsible licensed master must be a chief manager or managing employee. 
58.3 	If the water conditioning contractor is a corporation, the responsible licensed master must 
58.4 	be an officer or managing employee. If the responsible licensed master is a managing 
58.5 	employee, the responsible licensed master must be actively engaged in performing water 
58.6 	conditioning work on behalf of the water conditioning contractor and cannot be employed 
58.7 	in any capacity as a water conditioning master or water conditioning journeyman for any 
58.8 	other water conditioning contractor. An individual must not be the responsible licensed 
58.9 	master for more than one water conditioning contractor.
58.10 	(c) All applications and renewals for water conditioning contractor licenses shall include 
58.11 	a verified statement that the applicant or licensee has complied with paragraph (b).
58.12 	(d) Each application and renewal for a water conditioning master license, water 
58.13 	conditioning journeyman license, or a water conditioning contractor license shall be 
58.14 	accompanied by all fees required by section 326B.092.

58.15 	Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:
58.16 		Subd. 4.Plumber's apprentices. (a) A plumber's apprentice who is registered under 
58.17 	section 326B.47 is authorized to assist in water conditioning installation and water 
58.18 	conditioning servicing only while under the direct supervision of a master plumber, 
58.19 	journeyman plumber, restricted master plumber, restricted journeyman plumber, water 
58.20 	conditioning master, or water conditioning journeyman. The master or journeyman is 
58.21 	responsible for ensuring that all water conditioning work performed by the plumber's 
58.22 	apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 
58.23 	326B.59. The supervising master or journeyman must be licensed and must be employed 
58.24 	by the same employer as the plumber's apprentice. Licensed individuals shall not permit 
58.25 	plumber's apprentices to perform water conditioning work except under the direct supervision 
58.26 	of an individual actually licensed to perform such work. Plumber's apprentices shall not 
58.27 	supervise the performance of plumbing work or make assignments of plumbing work to 
58.28 	unlicensed individuals.
58.29 	(b) Water conditioning contractors employing plumber's apprentices to perform water 
58.30 	conditioning work shall maintain records establishing compliance with this subdivision that 
58.31 	shall identify all plumber's apprentices performing water conditioning work, and shall permit 
58.32 	the department to examine and copy all such records.

59.1 	Sec. 14. [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
59.2 		Subdivision 1.Registration; supervision; records. (a) All unlicensed individuals 
59.3 	engaged in water conditioning installation must be registered under subdivision 3.
59.4 	(b) A registered unlicensed individual is authorized to assist in water conditioning 
59.5 	installations in a single family residential unit only when a master plumber, journeyman 
59.6 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
59.7 	master, or water conditioning journeyman is available and responsible for ensuring that all 
59.8 	water conditioning installation work performed by the unlicensed individual complies with 
59.9 	the applicable provisions of the plumbing and water conditioning codes and rules adopted 
59.10 	pursuant to such codes. For all other water conditioning installation work, the registered 
59.11 	unlicensed individual must be under the direct supervision of a responsible licensed water 
59.12 	conditioning master.
59.13 	(c) Water conditioning contractors employing registered unlicensed individuals to perform 
59.14 	water conditioning installation work shall maintain records establishing compliance with 
59.15 	this subdivision that shall identify all unlicensed individuals performing water conditioning 
59.16 	installations, and shall permit the department to examine and copy all such records.
59.17 		Subd. 2.Journeyman exam. A registered unlicensed individual who has completed 
59.18 	875 hours of practical water conditioning installation, servicing, and training is eligible to 
59.19 	take the water conditioning journeyman examination. Up to 100 hours of practical water 
59.20 	conditioning installation and servicing experience prior to becoming a registered unlicensed 
59.21 	individual may be applied to the practical experience requirement. However, none of this 
59.22 	practical experience may be applied if the unlicensed individual did not have any practical 
59.23 	experience in the 12-month period immediately prior to becoming a registered unlicensed 
59.24 	individual.
59.25 		Subd. 3.Registration, renewals, and fees. An unlicensed individual may register by 
59.26 	completing and submitting to the commissioner an application form provided by the 
59.27 	commissioner, with all fees required by section 326B.58. A completed application form 
59.28 	must state the date, the individual's age, schooling, previous experience and employer, and 
59.29 	other information required by the commissioner. The plumbing board may prescribe rules, 
59.30 	not inconsistent with this section, for the registration of unlicensed individuals. Applications 
59.31 	for initial registration may be submitted at any time. Registration must be renewed annually 
59.32 	and shall be for the period from July 1 of each year to June 30 of the following year.

60.1 	Sec. 15. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
60.2 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
60.3 	the meanings given them.
60.4 	(b) "Gross annual receipts" means the total amount derived from residential contracting 
60.5 	or residential remodeling activities, regardless of where the activities are performed, and 
60.6 	must not be reduced by costs of goods sold, expenses, losses, or any other amount.
60.7 	(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
60.8 	(d) "Residential real estate" means a new or existing building constructed for habitation 
60.9 	by one to four families, and includes detached garages intended for storage of vehicles 
60.10 	associated with the residential real estate.
60.11 	(e) "Fund" means the contractor recovery fund.
60.12 	(f) "Owner" when used in connection with real property, means a person who has any 
60.13 	legal or equitable interest in real property and includes a condominium or townhome 
60.14 	association that owns common property located in a condominium building or townhome 
60.15 	building or an associated detached garage. Owner does not include any real estate developer 
60.16 	or any owner using, or intending to use, the property for a business purpose and not as 
60.17 	owner-occupied residential real estate.

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

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

60.28 	ARTICLE 4
60.29 	EMPLOYMENT AND ECONOMIC DEVELOPMENT

60.30 	Section 1. Minnesota Statutes 2016, section 116J.395, subdivision 7, is amended to read:
61.1 		Subd. 7.Limitation. (a) No grant awarded under this section may fund more than 50 
61.2 	percent of the total cost of a project in an underserved area.
61.3 	(b) Grants awarded for projects in unserved areas require a 35 percent match.
61.4 	(c) Grants awarded to a single project under this section must not exceed $5,000,000
61.5 	$3,000,000.

61.6 	Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:
61.7 		Subd. 2.Administration.  (a) Except as otherwise provided in this section, the 
61.8 	commissioner shall administer the fund as part of the Small Cities Development Block 
61.9 	Grant Program and funds shall be made available to local communities and recognized 
61.10 	Indian tribal governments in accordance with the rules adopted for economic development 
61.11 	grants in the small cities community development block grant program. All units of general 
61.12 	purpose local government are eligible applicants for Minnesota investment funds. The 
61.13 	commissioner may provide forgivable loans directly to a private enterprise and not require 
61.14 	a local community or recognized Indian tribal government application other than a resolution 
61.15 	supporting the assistance.
61.16 	(b) Eligible applicants for the state-funded portion of the fund also include development 
61.17 	authorities as defined in section 116J.552, subdivision 4, provided that the governing body 
61.18 	of the municipality approves, by resolution, the application of the development authority. 
61.19 	A local government entity may receive more than one award in a fiscal year. The 
61.20 	commissioner may also make funds available within the department for eligible expenditures 
61.21 	under subdivision 3, clause (2).
61.22 	(c) A home rule charter or statutory city, county, or town may loan or grant money 
61.23 	received from repayment of funds awarded under this section to a regional development 
61.24 	commission, other regional entity, or statewide community capital fund as determined by 
61.25 	the commissioner, to capitalize or to provide the local match required for capitalization of 
61.26 	a regional or statewide revolving loan fund.

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

62.1 	Sec. 4. Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:
62.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
62.3 	the meanings given.
62.4 	(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement 
62.5 	under section 116J.994 that must include, but is not limited to: specification of the duration 
62.6 	of the agreement, job goals and a timeline for achieving those goals over the duration of 
62.7 	the agreement, construction and other investment goals and a timeline for achieving those 
62.8 	goals over the duration of the agreement, and the value of benefits the firm may receive 
62.9 	following achievement of capital investment and employment goals. The local government 
62.10 	and business must report to the commissioner on the business performance using the forms 
62.11 	developed by the commissioner.
62.12 	(c) "Business" means an individual, corporation, partnership, limited liability company, 
62.13 	association, or other entity.
62.14 	(d) "Capital investment" means money that is expended for the purpose of building or 
62.15 	improving real fixed property where employees under paragraphs (g) and (h) are or will be 
62.16 	employed and also includes construction materials, services, and supplies, and the purchase 
62.17 	and installation of equipment and machinery as provided under subdivision 4, paragraph 
62.18 	(b), clause (5).
62.19 	(e) "Commissioner" means the commissioner of employment and economic development.
62.20 	(f) "Minnesota job creation fund business" means a business that is designated by the 
62.21 	commissioner under subdivision 3.
62.22 	(g) "Minority person" means a person belonging to a racial or ethnic minority as defined 
62.23 	in Code of Federal Regulations, title 49, section 23.5.
62.24 	(g) (h) "New full-time employee" means an employee who:
62.25 	(1) begins work at a Minnesota job creation fund business facility noted in a business 
62.26 	subsidy agreement and following the designation as a job creation fund business; and
62.27 	(2) has expected work hours of at least 2,080 hours annually.
62.28 	(i) "Persons with disabilities" means an individual with a disability, as defined under 
62.29 	the Americans with Disabilities Act, United States Code, title 42, section 12102.
62.30 	(h) (j) "Retained job" means a full-time position:
62.31 	(1) that existed at the facility prior to the designation as a job creation fund business; 
62.32 	and
63.1 	(2) has expected work hours of at least 2,080 hours annually.
63.2 	(k) "Veteran" means a veteran as defined in section 197.447.
63.3 	(i) (l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

63.4 	Sec. 5. Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:
63.5 		Subd. 3.Minnesota job creation fund business designation; requirements. (a) To 
63.6 	receive designation as a Minnesota job creation fund business, a business must satisfy all 
63.7 	of the following conditions:
63.8 	(1) the business is or will be engaged in, within Minnesota, one of the following as its 
63.9 	primary business activity:
63.10 	(i) manufacturing;
63.11 	(ii) warehousing;
63.12 	(iii) distribution;
63.13 	(iv) information technology;
63.14 	(v) finance;
63.15 	(vi) insurance; or
63.16 	(vii) professional or technical services;
63.17 	(2) the business must not be primarily engaged in lobbying; gambling; entertainment; 
63.18 	professional sports; political consulting; leisure; hospitality; or professional services provided 
63.19 	by attorneys, accountants, business consultants, physicians, or health care consultants, or 
63.20 	primarily engaged in making retail sales to purchasers who are physically present at the 
63.21 	business's location;
63.22 	(3) the business must enter into a binding construction and job creation business subsidy 
63.23 	agreement with the commissioner to expend directly, or ensure expenditure by or in 
63.24 	partnership with a third party constructing or managing the project, at least $500,000 in 
63.25 	capital investment in a capital investment project that includes a new, expanded, or remodeled 
63.26 	facility within one year following designation as a Minnesota job creation fund business or 
63.27 	$250,000 if the project is located outside the metropolitan area as defined in section 200.02, 
63.28 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
63.29 	women, or persons with a disability; and:
63.30 	(i) create at least ten new full-time employee positions within two years of the benefit 
63.31 	date following the designation as a Minnesota job creation fund business or five new full-time 
64.1 	employee positions within two years of the benefit date if the project is located outside the 
64.2 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
64.3 	is cumulatively owned by minorities, veterans, women, or persons with a disability; or
64.4 	(ii) expend at least $25,000,000, which may include the installation and purchase of 
64.5 	machinery and equipment, in capital investment and retain at least 200 employees for projects 
64.6 	located in the metropolitan area as defined in section 200.02, subdivision 24, and 75 
64.7 	employees for projects located outside the metropolitan area;
64.8 	(4) positions or employees moved or relocated from another Minnesota location of the 
64.9 	Minnesota job creation fund business must not be included in any calculation or determination 
64.10 	of job creation or new positions under this paragraph; and
64.11 	(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the 
64.12 	working hours of an employee for the purpose of hiring an individual to satisfy job creation 
64.13 	goals under this subdivision.
64.14 	(b) Prior to approving the proposed designation of a business under this subdivision, the 
64.15 	commissioner shall consider the following:
64.16 	(1) the economic outlook of the industry in which the business engages;
64.17 	(2) the projected sales of the business that will be generated from outside the state of 
64.18 	Minnesota;
64.19 	(3) how the business will build on existing regional, national, and international strengths 
64.20 	to diversify the state's economy;
64.21 	(4) whether the business activity would occur without financial assistance;
64.22 	(5) whether the business is unable to expand at an existing Minnesota operation due to 
64.23 	facility or land limitations;
64.24 	(6) whether the business has viable location options outside Minnesota;
64.25 	(7) the effect of financial assistance on industry competitors in Minnesota;
64.26 	(8) financial contributions to the project made by local governments; and
64.27 	(9) any other criteria the commissioner deems necessary.
64.28 	(c) Upon receiving notification of local approval under subdivision 2, the commissioner 
64.29 	shall review the determination by the local government and consider the conditions listed 
64.30 	in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local 
64.31 	area to designate a business as a Minnesota job creation fund business.
65.1 	(d) If the commissioner designates a business as a Minnesota job creation fund business, 
65.2 	the business subsidy agreement shall include the performance outcome commitments and 
65.3 	the expected financial value of any Minnesota job creation fund benefits.
65.4 	(e) The commissioner may amend an agreement once, upon request of a local government 
65.5 	on behalf of a business, only if the performance is expected to exceed thresholds stated in 
65.6 	the original agreement.
65.7 	(f) A business may apply to be designated as a Minnesota job creation fund business at 
65.8 	the same location more than once only if all goals under a previous Minnesota job creation 
65.9 	fund agreement have been met and the agreement is completed.

65.10 	Sec. 6. Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:
65.11 		Subd. 4.Certification; benefits. (a) The commissioner may certify a Minnesota job 
65.12 	creation fund business as eligible to receive a specific value of benefit under paragraphs (b) 
65.13 	and (c) when the business has achieved its job creation and capital investment goals noted 
65.14 	in its agreement under subdivision 3.
65.15 	(b) A qualified Minnesota job creation fund business may be certified eligible for the 
65.16 	benefits in this paragraph for up to five years for projects located in the metropolitan area 
65.17 	as defined in section 200.02, subdivision 24, and seven years for projects located outside 
65.18 	the metropolitan area, as determined by the commissioner when considering the best interests 
65.19 	of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a), 
65.20 	clause (3), or section 16B.98, subdivision 5, paragraph (b), grant agreements for projects 
65.21 	located outside the metropolitan area may be for up to seven years in length. The eligibility 
65.22 	for the following benefits begins the date the commissioner certifies the business as a 
65.23 	qualified Minnesota job creation fund business under this subdivision:
65.24 	(1) up to five percent rebate for projects located in the metropolitan area as defined in 
65.25 	section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan 
65.26 	area, on capital investment on qualifying purchases as provided in subdivision 5 with the 
65.27 	total rebate for a project not to exceed $500,000;
65.28 	(2) an award of up to $500,000 based on full-time job creation and wages paid as provided 
65.29 	in subdivision 6 with the total award not to exceed $500,000;
65.30 	(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards 
65.31 	are allowable for projects that have at least $25,000,000 in capital investment and 200 new 
65.32 	employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75 
65.33 	new employees for projects located outside the metropolitan area;
66.1 	(4) up to $1,000,000 in capital investment rebates are allowable for projects that have 
66.2 	at least $25,000,000 in capital investment and 200 retained employees for projects located 
66.3 	in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for 
66.4 	projects located outside the metropolitan area; and
66.5 	(5) for clauses (3) and (4) only, the capital investment expenditure requirements may 
66.6 	include the installation and purchases of machinery and equipment. These expenditures are 
66.7 	not eligible for the capital investment rebate provided under subdivision 5.
66.8 	(c) The job creation award may be provided in multiple years as long as the qualified 
66.9 	Minnesota job creation fund business continues to meet the job creation goals provided for 
66.10 	in its agreement under subdivision 3 and the total award does not exceed $500,000 except 
66.11 	as provided under paragraph (b), clauses (3) and (4).
66.12 	(d) No rebates or award may be provided until the Minnesota job creation fund business 
66.13 	or a third party constructing or managing the project has at least $500,000 in capital 
66.14 	investment in the project and at least ten full-time jobs have been created and maintained 
66.15 	for at least one year or the retained employees, as provided in paragraph (b), clause (4), 
66.16 	remain for at least one year. The agreement may require additional performance outcomes 
66.17 	that need to be achieved before rebates and awards are provided. If fewer retained jobs are 
66.18 	maintained, but still above the minimum under this subdivision, the capital investment 
66.19 	award shall be reduced on a proportionate basis.
66.20 	(e) The forms needed to be submitted to document performance by the Minnesota job 
66.21 	creation fund business must be in the form and be made under the procedures specified by 
66.22 	the commissioner. The forms shall include documentation and certification by the business 
66.23 	that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, 
66.24 	and other provisions as specified by the commissioner.
66.25 	(f) Minnesota job creation fund businesses must pay each new full-time employee added 
66.26 	pursuant to the agreement total compensation, including benefits not mandated by law, that 
66.27 	on an annualized basis is equal to at least 110 percent of the federal poverty level for a 
66.28 	family of four.
66.29 	(g) A Minnesota job creation fund business must demonstrate reasonable progress on 
66.30 	its capital investment expenditures within six months following designation as a Minnesota 
66.31 	job creation fund business to ensure that the capital investment goal in the agreement under 
66.32 	subdivision 1 will be met. Businesses not making reasonable progress will not be eligible 
66.33 	for benefits under the submitted application and will need to work with the local government 
66.34 	unit to resubmit a new application and request to be a Minnesota job creation fund business. 
67.1 	Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not 
67.2 	be considered a default of the business subsidy agreement.

67.3 	Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:
67.4 		Subd. 6.Job creation award. (a) A qualified Minnesota job creation fund business is 
67.5 	eligible for an annual award for each new job created and maintained by the business using 
67.6 	the following schedule: $1,000 for each job position paying annual wages at least $26,000 
67.7 	but less than $35,000; $2,000 for each job position paying at least $35,000 but less than 
67.8 	$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals 
67.9 	under the agreement provided under subdivision 1. These awards are increased by $1,000 
67.10 	if the business is located outside the metropolitan area as defined in section 200.02, 
67.11 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
67.12 	women, or persons with a disability.
67.13 	(b) The job creation award schedule must be adjusted annually using the percentage 
67.14 	increase in the federal poverty level for a family of four.
67.15 	(c) Minnesota job creation fund businesses seeking an award credit provided under 
67.16 	subdivision 4 must submit forms and applications to the Department of Employment and 
67.17 	Economic Development as prescribed by the commissioner.

67.18 	Sec. 8. Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:
67.19 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
67.20 	the meanings given them in this subdivision.
67.21 	(b) "Commissioner" means the commissioner of employment and economic development.
67.22 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time 
67.23 	employment ceased or was working in the state at the time employment ceased and:
67.24 	(1) has been permanently separated or has received a notice of permanent separation 
67.25 	from public or private sector employment and is eligible for or has exhausted entitlement 
67.26 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
67.27 	(2) has been long-term unemployed and has limited opportunities for employment or 
67.28 	reemployment in the same or a similar occupation in the area in which the individual resides, 
67.29 	including older individuals who may have substantial barriers to employment by reason of 
67.30 	age;
68.1 	(3) has been terminated or has received a notice of termination of employment as a result 
68.2 	of a plant closing or a substantial layoff at a plant, facility, or enterprise;
68.3 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
68.4 	result of general economic conditions in the community in which the individual resides or 
68.5 	because of natural disasters;
68.6 	(5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
68.7 	(6) (5) is a veteran as defined by section 197.447, has been discharged or released from 
68.8 	active duty under honorable conditions within the last 36 months, and (i) is unemployed or 
68.9 	(ii) is employed in a job verified to be below the skill level and earning capacity of the 
68.10 	veteran;
68.11 	(7) (6) is an individual determined by the United States Department of Labor to be 
68.12 	covered by trade adjustment assistance under United States Code, title 19, sections 2271 to 
68.13 	2331, as amended; or
68.14 	(8) (7) is a displaced homemaker. A "displaced homemaker" is an individual who has 
68.15 	spent a substantial number of years in the home providing homemaking service and (i) has 
68.16 	been dependent upon the financial support of another; and now due to divorce, separation, 
68.17 	death, or disability of that person, must find employment to self support; or (ii) derived the 
68.18 	substantial share of support from public assistance on account of dependents in the home 
68.19 	and no longer receives such support. To be eligible under this clause, the support must have 
68.20 	ceased while the worker resided in Minnesota.
68.21 	For the purposes of this section, "dislocated worker" does not include an individual who 
68.22 	was an employee, at the time employment ceased, of a political committee, political fund, 
68.23 	principal campaign committee, or party unit, as those terms are used in chapter 10A, or an 
68.24 	organization required to file with the federal elections commission.
68.25 	(d) "Eligible organization" means a state or local government unit, nonprofit organization, 
68.26 	community action agency, business organization or association, or labor organization.
68.27 	(e) "Plant closing" means the announced or actual permanent shutdown of a single site 
68.28 	of employment, or one or more facilities or operating units within a single site of 
68.29 	employment.
68.30 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a 
68.31 	result of a plant closing, and which results in an employment loss at a single site of 
68.32 	employment during any 30-day period for at least 50 employees excluding those employees 
68.33 	that work less than 20 hours per week.

69.1 	Sec. 9. Minnesota Statutes 2016, section 116L.665, is amended to read:
69.2 	116L.665 WORKFORCE DEVELOPMENT COUNCIL BOARD.
69.3 		Subdivision 1.Creation. The governor's Workforce Development Council is created 
69.4 	under the authority of the Workforce Investment Act, United States Code, title 29, section 
69.5 	2801, et seq. Local workforce development councils are authorized under the Workforce 
69.6 	Investment Act. The governor's Workforce Development Council serves as Minnesota's 
69.7 	Workforce Investment Board for the purposes of the federal Workforce Investment Act.
69.8 	Board serves as Minnesota's state workforce development board for the purposes of the 
69.9 	federal Workforce Innovation and Opportunity Act, United States Code, title 29, section 
69.10 	3111, and must perform the duties under that act.
69.11 		Subd. 2.Membership. (a) The governor's Workforce Development Council Board is 
69.12 	composed of 31 members appointed by the governor. The members may be removed pursuant 
69.13 	to section 15.059. In selecting the representatives of the council board, the governor shall 
69.14 	ensure that 50 percent a majority of the members come from nominations provided by local 
69.15 	workforce councils. Local education representatives shall come from nominations provided 
69.16 	by local education to employment partnerships. The 31 members shall represent the following 
69.17 	sectors: the private sector, pursuant to United States Code, title 29, section 3111. For the 
69.18 	public members, membership terms, compensation of members, and removal of members 
69.19 	are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the 
69.20 	membership should be balanced as to gender and ethnic diversity.
69.21 	(a) State agencies: the following individuals shall serve on the council:
69.22 	(1) commissioner of the Minnesota Department of Employment and Economic 
69.23 	Development;
69.24 	(2) commissioner of the Minnesota Department of Education; and
69.25 	(3) commissioner of the Minnesota Department of Human Services.
69.26 	(b) Business and industry: six individuals shall represent the business and industry sectors 
69.27 	of Minnesota.
69.28 	(c) Organized labor: six individuals shall represent labor organizations of Minnesota.
69.29 	(d) Community-based organizations: four individuals shall represent community-based 
69.30 	organizations of Minnesota. Community-based organizations are defined by the Workforce 
69.31 	Investment Act as private nonprofit organizations that are representative of communities 
69.32 	or significant segments of communities and that have demonstrated expertise and 
69.33 	effectiveness in the field of workforce investment and may include entities that provide job 
70.1 	training services, serve youth, serve individuals with disabilities, serve displaced 
70.2 	homemakers, union-related organizations, employer-related nonprofit organizations, and 
70.3 	organizations serving nonreservation Indians and tribal governments.
70.4 	(e) Education: six individuals shall represent the education sector of Minnesota as follows:
70.5 	(1) one individual shall represent local public secondary education;
70.6 	(2) one individual shall have expertise in design and implementation of school-based 
70.7 	service-learning;
70.8 	(3) one individual shall represent leadership of the University of Minnesota;
70.9 	(4) one individual shall represent secondary/postsecondary vocational institutions;
70.10 	(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and 
70.11 	Universities; and
70.12 	(6) one individual shall have expertise in agricultural education.
70.13 	(f) Other: two individuals shall represent other constituencies including:
70.14 	(1) units of local government; and
70.15 	(2) applicable state or local programs.
70.16 	The speaker and the minority leader of the house of representatives shall each appoint 
70.17 	a representative to serve as an ex officio member of the council. The majority and minority 
70.18 	leaders of the senate shall each appoint a senator to serve as an ex officio member of the 
70.19 	council.
70.20 	The governor shall appoint one individual representing public libraries, one individual 
70.21 	with expertise in assisting women in obtaining employment in high-wage, high-demand, 
70.22 	nontraditional occupations, and one individual representing adult basic education programs 
70.23 	to serve as nonvoting advisors to the council.
70.24 	(b) No person shall serve as a member of more than one category described in paragraph 
70.25 	(a).
70.26 	(c) Voting members shall consist of the following:
70.27 	(1) the governor or the governor's designee;
70.28 	(2) two members of the house of representatives, one appointed by the speaker of the 
70.29 	house and one appointed by the minority leader of the house of representatives;
71.1 	(3) two members of the senate, one appointed by the senate majority leader and one 
71.2 	appointed by the senate minority leader;
71.3 	(4) a majority of the members must be representatives of businesses in the state appointed 
71.4 	by the governor who:
71.5 	(i) are owners of businesses, chief executives, or operating officers of businesses, or 
71.6 	other business executives or employers with optimum policy-making or hiring authority 
71.7 	and who, in addition, may be members of a local board under United States Code, title 29, 
71.8 	section 3122(b)(2)(A)(i);
71.9 	(ii) represent businesses, including small businesses, or organizations representing 
71.10 	businesses that provide employment opportunities that, at a minimum, include high-quality, 
71.11 	work-relevant training and development in in-demand industry sectors or occupations in 
71.12 	the state; and
71.13 	(iii) are appointed from individuals nominated by state business organizations and 
71.14 	business trade associations;
71.15 	(5) six representatives of labor organizations appointed by the governor, including:
71.16 	(i) representatives of labor organizations who have been nominated by state labor 
71.17 	federations; and
71.18 	(ii) a member of a labor organization or a training director from a joint labor organization;
71.19 	(6) commissioners of the state agencies with primary responsibility for core programs 
71.20 	identified within the state plan including:
71.21 	(i) the Department of Employment and Economic Development;
71.22 	(ii) the Department of Education; and
71.23 	(iii) the Department of Human Services;
71.24 	(7) two chief elected officials, appointed by the governor, collectively representing cities 
71.25 	and counties;
71.26 	(8) two representatives who are people of color or people with disabilities, appointed 
71.27 	by the governor, of community-based organizations that have demonstrated experience and 
71.28 	expertise in addressing the employment, training, or education needs of individuals with 
71.29 	barriers to employment; and
72.1 	(9) four officials responsible for education programs in the state, appointed by the 
72.2 	governor, including chief executive officers of community colleges and other institutions 
72.3 	of higher education, including:
72.4 	(i) the chancellor of the Minnesota State Colleges and Universities;
72.5 	(ii) the president of the University of Minnesota;
72.6 	(iii) a president from a private postsecondary school; and
72.7 	(iv) a representative of career and technical education.
72.8 	(d) The nonvoting members of the board shall be appointed by the governor and consist 
72.9 	of one of each of the following:
72.10 	(1) a representative of Adult Basic Education;
72.11 	(2) a representative of public libraries;
72.12 	(3) a person with expertise in women's economic security;
72.13 	(4) the chair or executive director of the Minnesota Workforce Council Association;
72.14 	(5) the commissioner of labor and industry;
72.15 	(6) the commissioner of the Office of Higher Education;
72.16 	(7) the commissioner of corrections;
72.17 	(8) the commissioner of management and budget;
72.18 	(9) two representatives of community-based organizations who are people of color or 
72.19 	people with disabilities who have demonstrated experience and expertise in addressing the 
72.20 	employment, training, and education needs of individuals with barriers to employment;
72.21 	(10) a representative of secondary, postsecondary, or career-technical education;
72.22 	(11) a representative of school-based service learning;
72.23 	(12) a representative of the Council on Asian-Pacific Minnesotans;
72.24 	(13) a representative of the Minnesota Council on Latino Affairs;
72.25 	(14) a representative of the Council for Minnesotans of African Heritage;
72.26 	(15) a representative of the Minnesota Indian Affairs Council;
72.27 	(16) a representative of the Minnesota State Council on Disability; and
72.28 	(17) a representative of the Office on the Economic Status of Women.
73.1 	(g) Appointment: (e) Each member shall be appointed for a term of three years from the 
73.2 	first day of January or July immediately following their appointment. Elected officials shall 
73.3 	forfeit their appointment if they cease to serve in elected office.
73.4 	(h) Members of the council are compensated as provided in section 15.059, subdivision 
73.5 	3.
73.6 		Subd. 2a.Council Board meetings; chair. (a) If compliance with section 13D.02 is 
73.7 	impractical, the Governor's Workforce Development Council may conduct a meeting of its 
73.8 	members by telephone or other electronic means so long as the following conditions are 
73.9 	met:
73.10 	(1) all members of the council participating in the meeting, wherever their physical 
73.11 	location, can hear one another and can hear all discussion and testimony;
73.12 	(2) members of the public present at the regular meeting location of the council can hear 
73.13 	clearly all discussion and testimony and all votes of members of the council and, if needed, 
73.14 	receive those services required by sections 15.44 and 15.441;
73.15 	(3) at least one member of the council is physically present at the regular meeting location; 
73.16 	and
73.17 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
73.18 	identified and recorded.
73.19 	(b) Each member of the council participating in a meeting by telephone or other electronic 
73.20 	means is considered present at the meeting for purposes of determining a quorum and 
73.21 	participating in all proceedings.
73.22 	(c) If telephone or other electronic means is used to conduct a meeting, the council, to 
73.23 	the extent practical, shall allow a person to monitor the meeting electronically from a remote 
73.24 	location. The council may require the person making such a connection to pay for 
73.25 	documented marginal costs that the council incurs as a result of the additional connection.
73.26 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
73.27 	emergency meeting, the council shall provide notice of the regular meeting location, of the 
73.28 	fact that some members may participate by telephone or other electronic means, and of the 
73.29 	provisions of paragraph (c). The timing and method of providing notice is governed by 
73.30 	section 13D.04.
73.31 	(a) The board shall hold regular in-person meetings at least quarterly and as often as 
73.32 	necessary to perform the duties outlined in the statement of authority and the board's bylaws. 
74.1 	Meetings shall be called by the chair. Special meetings may be called as needed. Notices 
74.2 	of all meetings shall be made at least 48 hours before the meeting date.
74.3 	(b) The governor shall designate a chair from among the appointed business representative 
74.4 	voting members. The chair shall approve an agenda for each meeting. Members shall submit 
74.5 	a written request for consideration of an agenda item no less than 24 hours in advance of 
74.6 	the meeting. Members of the public may submit a written request within 48 hours of a 
74.7 	meeting to be considered for inclusion in the agenda. Members of the public attending a 
74.8 	meeting of the board may address the board only with the approval or at the request of the 
74.9 	chair.
74.10 	(c) All meeting notices must be posted on the board's Web site. All meetings of the board 
74.11 	and committees must be open to the public. The board must make available to the public, 
74.12 	on a regular basis through electronic means and open meetings, information regarding the 
74.13 	activities of the board, information regarding membership, and, on request, minutes of 
74.14 	formal meetings of the board.
74.15 	(d) For the purpose of conducting business before the board at a duly called meeting, a 
74.16 	simple majority of the voting members, excluding any vacancies, constitutes a quorum.
74.17 		Subd. 3.Purpose; duties. The governor's Workforce Development Council shall replace 
74.18 	the governor's Job Training Council and assume all of its requirements, duties, and 
74.19 	responsibilities under the Workforce Investment Act. Additionally, the Workforce 
74.20 	Development Council shall assume the following duties and responsibilities:
74.21 	(a) Review the provision of services and the use of funds and resources under applicable 
74.22 	federal human resource programs and advise the governor on methods of coordinating the 
74.23 	provision of services and the use of funds and resources consistent with the laws and 
74.24 	regulations governing the programs. For purposes of this section, applicable federal and 
74.25 	state human resource programs mean the:
74.26 	(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;
74.27 	(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States 
74.28 	Code, title 20, section 2301, et seq.;
74.29 	(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;
74.30 	(4) Wagner-Peyser Act, United States Code, title 29, section 49;
74.31 	(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);
75.1 	(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp 
75.2 	Employment and Training Program, United States Code, title 7, section 2015(d)(4); and
75.3 	(7) programs defined in section 116L.19, subdivision 5.
75.4 	Additional federal and state programs and resources can be included within the scope 
75.5 	of the council's duties if recommended by the governor after consultation with the council.
75.6 	(b) Review federal, state, and local education, postsecondary, job skills training, and 
75.7 	youth employment programs, and make recommendations to the governor and the legislature 
75.8 	for establishing an integrated seamless system for providing education and work skills 
75.9 	development services to learners and workers of all ages.
75.10 	(c) Advise the governor on the development and implementation of statewide and local 
75.11 	performance standards and measures relating to applicable federal human resource programs 
75.12 	and the coordination of performance standards and measures among programs.
75.13 	(d) Promote education and employment transitions programs and knowledge and skills 
75.14 	of entrepreneurship among employers, workers, youth, and educators, and encourage 
75.15 	employers to provide meaningful work-based learning opportunities.
75.16 	(e) Evaluate and identify exemplary education and employment transitions programs 
75.17 	and provide technical assistance to local partnerships to replicate the programs throughout 
75.18 	the state.
75.19 	(f) Advise the governor on methods to evaluate applicable federal human resource 
75.20 	programs.
75.21 	(g) Sponsor appropriate studies to identify human investment needs in Minnesota and 
75.22 	recommend to the governor goals and methods for meeting those needs.
75.23 	(h) Recommend to the governor goals and methods for the development and coordination 
75.24 	of a human resource system in Minnesota.
75.25 	(i) Examine federal and state laws, rules, and regulations to assess whether they present 
75.26 	barriers to achieving the development of a coordinated human resource system.
75.27 	(j) Recommend to the governor and to the federal government changes in state or federal 
75.28 	laws, rules, or regulations concerning employment and training programs that present barriers 
75.29 	to achieving the development of a coordinated human resource system.
75.30 	(k) Recommend to the governor and to the federal government waivers of laws and 
75.31 	regulations to promote coordinated service delivery.
76.1 	(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic 
76.2 	plan which details methods for meeting Minnesota's human investment needs and for 
76.3 	developing and coordinating a state human resource system.
76.4 	(m) Provide the commissioner of employment and economic development and the 
76.5 	committees of the legislature with responsibility for economic development with 
76.6 	recommendations provided to the governor under this subdivision.
76.7 	(n) In consultation with local workforce councils and the Department of Employment 
76.8 	and Economic Development, develop an ongoing process to identify and address local gaps 
76.9 	in workforce services.
76.10 		Subd. 4.Executive committee duties. The executive committee must, with advice and 
76.11 	input of local workforce councils boards and other stakeholders as appropriate, develop 
76.12 	performance standards for the state workforce centers. By January 15, 2002 2019, and each 
76.13 	odd-numbered year thereafter, the executive committee shall submit a report to the senate 
76.14 	and house of representatives committees with jurisdiction over workforce development 
76.15 	programs regarding the performance and outcomes of the workforce centers. The report 
76.16 	must provide recommendations regarding workforce center funding levels and sources, 
76.17 	program changes, and administrative changes.
76.18 		Subd. 5.Subcommittees. The chair of the Workforce Development Council Board may 
76.19 	establish subcommittees in order to carry out the duties and responsibilities of the council
76.20 	board.
76.21 		Subd. 6.Staffing. The Department of commissioner of employment and economic 
76.22 	development must provide staff, including but not limited to professional, technical, and 
76.23 	clerical staff to the board necessary to perform the duties assigned to the Minnesota 
76.24 	Workforce Development Council. All staff report to the commissioner carry out the duties 
76.25 	of the board. The council may ask for assistance from other units ofAt the request of the 
76.26 	board, state government asdepartments and agencies must provide the board with the 
76.27 	assistance it requires in order to fulfill its duties and responsibilities.
76.28 		Subd. 7.Expiration. The council board expires if there is no federal funding for the 
76.29 	human resource programs within the scope of the council's board's duties.
76.30 		Subd. 8.Funding. The commissioner shall develop recommendations on a funding 
76.31 	formula for allocating Workforce Investment Act funds to the council with a minimum 
76.32 	allocation of employment and economic development must provide at least $350,000 per
76.33 	each fiscal year. The commissioner shall report the funding formula recommendations to 
77.1 	the legislature by January 15, 2011 from existing agency resources to the board for staffing 
77.2 	and administrative expenses.

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

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

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

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

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

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

79.4 	Sec. 16. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is 
79.5 	amended to read:

79.6	Subd. 6.Vocational Rehabilitation

79.7	Appropriations by Fund
	
79.8	General
	22,611,000
	21,611,000
	
79.979.10
	Workforce 
Development
	7,830,000
	7,830,000
	
79.11 	(a) $10,800,000 each year is from the general 
79.12 	fund for the state's vocational rehabilitation 
79.13 	program under Minnesota Statutes, chapter 
79.14 	268A.
79.15 	(b) $2,261,000 each year is from the general 
79.16 	fund for grants to centers for independent 
79.17 	living under Minnesota Statutes, section 
79.18 	268A.11.
79.19 	(c) $5,745,000 each year from the general fund 
79.20 	and $6,830,000 each year from the workforce 
79.21 	development fund are for extended 
79.22 	employment services for persons with severe 
79.23 	disabilities under Minnesota Statutes, section 
79.24 	268A.15.
79.25 	(d) $250,000 in fiscal year 2016 and $250,000 
79.26 	in fiscal year 2017 are for rate increases to 
79.27 	providers of extended employment services 
79.28 	for persons with severe disabilities under 
79.29 	Minnesota Statutes, section 268A.15. This 
79.30 	appropriation is added to the agency's base.
79.31 	(e) $2,555,000 each year is from the general 
79.32 	fund for grants to programs that provide 
79.33 	employment support services to persons with 
80.1 	mental illness under Minnesota Statutes, 
80.2 	sections 268A.13 and 268A.14.
80.3 	(f) $1,000,000 each year is from the workforce 
80.4 	development fund for grants under Minnesota 
80.5 	Statutes, section 268A.16, for employment 
80.6 	services for persons, including transition-aged 
80.7 	youth, who are deaf, deafblind, or 
80.8 	hard-of-hearing. If the amount in the first year 
80.9 	is insufficient, the amount in the second year 
80.10 	is available in the first year.
80.11 	(g) $1,000,000 in fiscal year 2016 is for a 
80.12 	grant to Assistive Technology of Minnesota, 
80.13 	a statewide nonprofit organization that is 
80.14 	exclusively dedicated to the issues of access 
80.15 	to and the acquisition of assistive technology. 
80.16 	The purpose of the grant is to acquire assistive 
80.17 	technology and to work in tandem with 
80.18 	individuals using this technology to create 
80.19 	career paths Assistive Technology of 
80.20 	Minnesota must use the funds to provide 
80.21 	low-interest loans to individuals of all ages 
80.22 	and types of disabilities to purchase assistive 
80.23 	technology and employment-related 
80.24 	equipment. This is a onetime appropriation.
80.25 	(h) For purposes of this subdivision, 
80.26 	Minnesota Diversified Industries, Inc. is an 
80.27 	eligible provider of services for persons with 
80.28 	severe disabilities under Minnesota Statutes, 
80.29 	section 268A.15.

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

80.31 	Sec. 17. Laws 2016, chapter 189, article 7, section 2, subdivision 2, is amended to read:

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

80.33	Appropriations by Fund
	
80.34	General
	-0-
	7,271,000
	
81.1
81.2	Workforce 
Development
	-0-
	750,000
	
81.3 	(a) $9,000,000 in fiscal year 2017 is a onetime 
81.4 	reduction in the general fund appropriation 
81.5 	for the Minnesota investment fund under 
81.6 	Minnesota Statutes, section 116J.8731. The 
81.7 	base funding for this purpose is $11,000,000 
81.8 	in fiscal year 2018 and each fiscal year 
81.9 	thereafter.
81.10 	(b) $11,500,000 in fiscal year 2017 is a 
81.11 	onetime reduction in the general fund 
81.12 	appropriation for the Minnesota job creation 
81.13 	fund under Minnesota Statutes, section 
81.14 	116J.8748. The base funding for this program 
81.15 	is $6,500,000 in fiscal year 2018 and each 
81.16 	fiscal year thereafter.
81.17 	(c) $2,000,000 in fiscal year 2017 is for the 
81.18 	redevelopment program under Minnesota 
81.19 	Statutes, section 116J.571. This is a onetime 
81.20 	appropriation.
81.21 	(d) $1,220,000 in fiscal year 2017 is for a 
81.22 	grant to the Duluth North Shore Sanitary 
81.23 	District to retire debt of the district in order to 
81.24 	bring the district's monthly wastewater rates 
81.25 	in line with those of similarly situated facilities 
81.26 	across the state. This is a onetime 
81.27 	appropriation.
81.28 	(e) $300,000 in fiscal year 2017 is from the 
81.29 	workforce development fund for expansion of 
81.30 	business assistance services provided by 
81.31 	business development specialists located in 
81.32 	the Northwest Region, Northeast Region, West 
81.33 	Central Region, Southwest Region, Southeast 
81.34 	Region, and Twin Cites Metro Region offices 
81.35 	established throughout the state. Funds under 
82.1 	this section may be used to provide services 
82.2 	including, but not limited to, business 
82.3 	start-ups; expansion; location or relocation; 
82.4 	finance; regulatory and permitting assistance; 
82.5 	and other services determined by the 
82.6 	commissioner. The commissioner may also 
82.7 	use funds under this section to increase the 
82.8 	number of business development specialists 
82.9 	in each region of the state, increase and expand 
82.10 	the services provided through each regional 
82.11 	office, and publicize the services available and 
82.12 	provide outreach to communities in each 
82.13 	region regarding services and assistance 
82.14 	available through the business development 
82.15 	specialist program. This is a onetime 
82.16 	appropriation.
82.17 	(f) $50,000 in fiscal year 2017 is from the 
82.18 	workforce development fund to enhance the 
82.19 	outreach and public awareness activities of 
82.20 	the Bureau of Small Business under Minnesota 
82.21 	Statutes, section 116J.68. This is a onetime 
82.22 	appropriation.
82.23 	(g) $100,000 in fiscal year 2017 is from the 
82.24 	general fund for an easy-to-understand manual 
82.25 	to instruct aspiring business owners in how to 
82.26 	start a child care business. The commissioner 
82.27 	shall work in consultation with relevant state 
82.28 	and local agencies and affected stakeholders 
82.29 	to produce the manual. The manual must be 
82.30 	made available electronically to interested 
82.31 	persons. This is a onetime appropriation and 
82.32 	is available until June 30, 2019.
82.33 	(h) $2,500,000 in fiscal year 2017 is for grants 
82.34 	to initiative foundations to provide financing 
82.35 	for business startups, expansions, and 
83.1 	maintenance; and for business ownership 
83.2 	transition and succession. This is a onetime 
83.3 	appropriation. Of the amount appropriated:
83.4 	(1) $357,000 is for a grant to the Southwest 
83.5 	Initiative Foundation;
83.6 	(2) $357,000 is for a grant to the West Central 
83.7 	Initiative Foundation;
83.8 	(3) $357,000 is for a grant to the Southern 
83.9 	Minnesota Initiative Foundation;
83.10 	(4) $357,000 is for a grant to the Northwest 
83.11 	Minnesota Foundation;
83.12 	(5) $357,000 is for a grant to the Initiative 
83.13 	Foundation;
83.14 	(6) $357,000 is for a grant to the Northland 
83.15 	Foundation; and
83.16 	(7) $357,000 is for a grant for the Minnesota 
83.17 	emerging entrepreneur program under 
83.18 	Minnesota Statutes, chapter 116M. Funds 
83.19 	available under this clause are for deposit in 
83.20 	the emerging entrepreneur program special 
83.21 	revenue fund account created under Minnesota 
83.22 	Statutes, chapter 116M, and are available until 
83.23 	spent and must be allocated as follows:
83.24 	(i) 50 percent of the funds must be allocated 
83.25 	for projects in the counties of Dakota, Ramsey, 
83.26 	and Washington; and
83.27 	(ii) 50 percent of the funds must be allocated 
83.28 	for projects in the counties of Anoka, Carver, 
83.29 	Hennepin, and Scott.
83.30 	(i) $600,000 in fiscal year 2017 is for a grant 
83.31 	to a city of the second class that is designated 
83.32 	as an economically depressed area by the 
83.33 	United States Department of Commerce for 
84.1 	economic development, redevelopment, and 
84.2 	job creation programs and projects. This is a 
84.3 	onetime appropriation and is available until 
84.4 	June 30, 2019.
84.5 	(j) $4,500,000 in fiscal year 2017 is for a grant 
84.6 	to the Minnesota Film and TV Board for the 
84.7 	film production jobs program under Minnesota 
84.8 	Statutes, section 116U.26. This appropriation 
84.9 	is in addition to the appropriation in Laws 
84.10 	2015, First Special Session chapter 1, article 
84.11 	1, section 2, subdivision 2. This is a onetime 
84.12 	appropriation.
84.13 	(k) $3,651,000 in fiscal year 2017 is from the 
84.14 	general fund for a grant to Mille Lacs County 
84.15 	to develop and operate the Lake Mille Lacs 
84.16 	area economic relief program established in 
84.17 	section 45. This is a onetime appropriation.
84.18 	(l) $500,000 in fiscal year 2017 is from the 
84.19 	general fund for grants to local communities 
84.20 	outside of the metropolitan area as defined 
84.21 	under Minnesota Statutes, section 473.121, 
84.22 	subdivision 2, to increase the supply of quality 
84.23 	child care providers in order to support 
84.24 	regional economic development. Grant 
84.25 	recipients must match state funds on a 
84.26 	dollar-for-dollar basis. Grant funds available 
84.27 	under this section must be used to implement 
84.28 	solutions to reduce the child care shortage in 
84.29 	the state, including but not limited to funding 
84.30 	for child care business start-up or expansion, 
84.31 	training, facility modifications or 
84.32 	improvements required for licensing, and 
84.33 	assistance with licensing and other regulatory 
84.34 	requirements. In awarding grants, the 
84.35 	commissioner must give priority to 
85.1 	communities in greater Minnesota that have 
85.2 	documented a shortage of child care providers 
85.3 	in the area. This is a onetime appropriation 
85.4 	and is available until June 30, 2019.
85.5 	By September 30, 2017, grant recipients must 
85.6 	report to the commissioner on the outcomes 
85.7 	of the grant program, including but not limited 
85.8 	to the number of new providers, the number 
85.9 	of additional child care provider jobs created, 
85.10 	the number of additional child care slots, and 
85.11 	the amount of local funds invested.
85.12 	By January 1, 2018, the commissioner must 
85.13 	report to the standing committees of the 
85.14 	legislature having jurisdiction over child care 
85.15 	and economic development on the outcomes 
85.16 	of the program to date.
85.17 	(m) $100,000 in fiscal year 2017 is from the 
85.18 	general fund for a grant to the city of Madelia 
85.19 	to provide match funding for a federal 
85.20 	Economic Development Agency technical 
85.21 	assistance grant. This is a onetime 
85.22 	appropriation.
85.23 	(n) $10,000,000 in fiscal year 2017 is for 
85.24 	deposit in the Minnesota 21st century fund. 
85.25 	This is a onetime appropriation.
85.26 	(o) $400,000 in fiscal year 2017 is from the 
85.27 	workforce development fund for grants to 
85.28 	small business development centers under 
85.29 	Minnesota Statutes, section 116J.68. Funds 
85.30 	made available under this section may be used 
85.31 	to match funds under the federal Small 
85.32 	Business Development Center (SBDC) 
85.33 	program under United States Code, title 15, 
85.34 	section 648, provide consulting and technical 
86.1 	services, or to build additional SBDC network 
86.2 	capacity to serve entrepreneurs and small 
86.3 	businesses. The commissioner shall allocate 
86.4 	funds equally among the nine regional centers 
86.5 	and lead center. This is a onetime 
86.6 	appropriation.
86.7 	(p) $2,600,000 in fiscal year 2017 is for a 
86.8 	transfer to the Board of Regents of the 
86.9 	University of Minnesota for academic and 
86.10 	applied research through MnDRIVE at the 
86.11 	Natural Resources Research Institute to 
86.12 	develop new technologies that enhance the 
86.13 	long-term viability of the Minnesota mining 
86.14 	industry. The research must be done in 
86.15 	consultation with the Mineral Coordinating 
86.16 	Committee established by Minnesota Statutes, 
86.17 	section 93.0015. This is a onetime transfer.
86.18 	(q) Of the amount appropriated in fiscal year 
86.19 	2017 for the Minnesota Investment Fund in 
86.20 	Laws 2015, First Special Session chapter 1, 
86.21 	article 1, section 2, subdivision 2, paragraph 
86.22 	(a), $450,000 is for a grant to the Lake 
86.23 	Superior-Poplar River Water District to 
86.24 	acquire interests in real property, engineer, 
86.25 	design, permit, and construct infrastructure to 
86.26 	transport and treat water from Lake Superior 
86.27 	through the Poplar River Valley to serve 
86.28 	domestic, irrigation, commercial, stock 
86.29 	watering, and industrial water users. This grant 
86.30 	does not require a local match. This is a 
86.31 	onetime appropriation. This amount is 
86.32 	available until June 30, 2019.
86.33 	(r) $500,000 is for the Minnesota emerging 
86.34 	entrepreneur program under Minnesota 
86.35 	Statutes, section 116M.18. Of this amount, up 
87.1 	to five percent is for administration and 
87.2 	monitoring of the program. For fiscal year 
87.3 	2018 and thereafter, the base amount is 
87.4 	$750,000 per year. Funds available under this 
87.5 	paragraph are for deposit in the emerging 
87.6 	entrepreneur program special revenue fund 
87.7 	account created under Minnesota Statutes, 
87.8 	chapter 116M, and are available until spent.

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

87.10 	Sec. 18. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA 
87.11 	INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 87.12 	(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or 
87.13 	statutory city, county, or town that has uncommitted money received from repayment of 
87.14 	funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20 
87.15 	percent of the balance of that money to the state general fund before June 30, 2018. Any 
87.16 	local entity that does so may then use the remaining 80 percent of the uncommitted money 
87.17 	as a general purpose aid for any lawful expenditure.
87.18 	(b) By February 15, 2019, a home rule charter or statutory city, county, or town that 
87.19 	exercises the option under paragraph (a) shall submit to the chairs of the legislative 
87.20 	committees with jurisdiction over economic development policy and finance an accounting 
87.21 	and explanation of the use and distribution of the funds.

87.22 	Sec. 19. GETTING TO WORK GRANT PROGRAM.
 87.23 		Subdivision 1.Creation. The commissioner of employment and economic development 
87.24 	shall make grants to nonprofit organizations to establish and operate programs under this 
87.25 	section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain 
87.26 	or maintain employment.
87.27 		Subd. 2.Qualified grantee. A grantee must:
87.28 	(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
87.29 	(2) at the time of application offer, or have the demonstrated capacity to offer, a motor 
87.30 	vehicle program that provides the services required under subdivision 3.
87.31 		Subd. 3.Program requirements. (a) A program must offer one or more of the following 
87.32 	services:
88.1 	(1) provision of new or used motor vehicles by gift, sale, or lease;
88.2 	(2) motor vehicle repair and maintenance services; or
88.3 	(3) motor vehicle loans.
88.4 	(b) In addition to the requirements of paragraph (a), a program must offer one or more 
88.5 	of the following services:
88.6 	(1) financial literacy education;
88.7 	(2) education on budgeting for vehicle ownership;
88.8 	(3) car maintenance and repair instruction;
88.9 	(4) credit counseling; or
88.10 	(5) job training related to motor vehicle maintenance and repair.
88.11 		Subd. 4.Application. Applications for a grant must be on a form provided by the 
88.12 	commissioner and on a schedule set by the commissioner. Applications must, in addition 
88.13 	to any other information required by the commissioner, include the following:
88.14 	(1) a detailed description of all services to be offered;
88.15 	(2) the area to be served;
88.16 	(3) the estimated number of program participants to be served by the grant; and
88.17 	(4) a plan for leveraging resources from partners that may include, but are not limited 
88.18 	to:
88.19 	(i) automobile dealers;
88.20 	(ii) automobile parts dealers;
88.21 	(iii) independent local mechanics and automobile repair facilities;
88.22 	(iv) banks and credit unions;
88.23 	(v) employers;
88.24 	(vi) employment and training agencies;
88.25 	(vii) insurance companies and agents;
88.26 	(viii) local workforce centers; and
88.27 	(ix) educational institutions including vocational institutions and jobs or skills training 
88.28 	programs.
89.1 		Subd. 5.Participant eligibility. (a) To be eligible to receive program services, a person 
89.2 	must:
89.3 	(1) have a household income at or below 200 percent of the federal poverty level;
89.4 	(2) be at least 22 years of age;
89.5 	(3) have a valid driver's license;
89.6 	(4) provide the grantee with proof of motor vehicle insurance; and
89.7 	(5) demonstrate to the grantee that a motor vehicle is required by the person to obtain 
89.8 	or maintain employment.
89.9 	(b) This subdivision does not preclude a grantee from imposing additional requirements, 
89.10 	not inconsistent with paragraph (a), for the receipt of program services.
89.11 		Subd. 6.Report to legislature. By February 15, 2019, the commissioner shall submit 
89.12 	a report to the chairs of the house of representatives and senate committees with jurisdiction 
89.13 	over workforce and economic development on program outcomes. At a minimum, the report 
89.14 	must include:
89.15 	(1) the total number of program participants;
89.16 	(2) the number of program participants who received each of the following:
89.17 	(i) provision of a motor vehicle;
89.18 	(ii) motor vehicle repair services; and
89.19 	(iii) motor vehicle loans;
89.20 	(3) the number of program participants who report that they or their children were able 
89.21 	to increase their participation in community activities such as after school programs, other 
89.22 	youth programs, church or civic groups, or library services as a result of participation in the 
89.23 	program; and
89.24 	(4) an analysis of the impact of the getting to work grant program on the employment 
89.25 	rate and wages of program participants.

89.26 	Sec. 20.  REPEALER.
 89.27 	Minnesota Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; and 4355.0500,
89.28 	are repealed.

APPENDIX 

Repealed Minnesota Statutes: S1937-3 

46.131 ASSESSMENTS AND FEES FOR FINANCIAL INSTITUTIONS.Subd. 5.Application and adjustment of fees. 
If the income from the fees provided for herein during any fiscal year shall be more than 103 percent of such expenditures for that year, any excess above such sum of 103 percent may be carried over to succeeding years in order to cover any deficit below 103 percent which may occur in such succeeding years. If the income from the fees provided for herein during any fiscal year shall produce less than the expenditures for that year, the Department of Commerce in adjusting its schedule of fees for use in the next fiscal year shall fix the fees so as to produce income in the amount of the expenditures for the latter year plus the amount of the difference between the expenditures for the first year referred to herein and the total income from such fees during the year and plus three percent of the total expenditures for both the latter and the first year referred to herein. 

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.