1.1 	A bill for an act
1.2 	relating to state government; appropriating money for jobs and economic 
1.3 	development; appropriating money for the Department of Employment and 
1.4 	Economic Development, Housing Finance Agency, Department of Labor and 
1.5 	Industry, Bureau of Mediation Services, Workers' Compensation Court of Appeals, 
1.6 	Department of Commerce, Public Utilities Commission, and Public Facilities 
1.7 	Authority; making policy and housekeeping changes to labor and industry 
1.8 	provisions; making policy changes to employment, economic development, and 
1.9 	workforce development provisions; making policy changes to the Department of 
1.10 	Iron Range Resources and Rehabilitation; making policy, housekeeping, and 
1.11 	technical changes regarding unemployment insurance; making changes to 
1.12 	commerce, telecommunications, and energy policy; making other housing and 
1.13 	miscellaneous policy changes; modifying fees; modifying rulemaking procedures; 
1.14 	modifying criminal penalties; requiring reports;amending Minnesota Statutes 
1.15 	2016, sections 3.732, subdivision 1; 3.736, subdivision 3; 3.8851, subdivision 1; 
1.16 	15.01; 15.38, subdivision 7; 15A.0815, subdivision 3; 16B.323; 43A.02, subdivision 
1.17 	22; 45.0135, subdivision 6; 65B.84, subdivision 1; 85.0146, subdivision 1; 116.03, 
1.18 	by adding a subdivision; 116C.779, subdivision 1, by adding a subdivision; 
1.19 	116C.7792; 116D.04, subdivision 1a; 116J.423, subdivision 2; 116J.424; 116J.8731, 
1.20 	subdivision 2, by adding a subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116J.994, 
1.21 	subdivisions 3, 5, 7; 116L.17, subdivision 1; 116L.665; 116M.14, subdivision 4; 
1.22 	116M.17, subdivision 4; 116M.18, subdivisions 1a, 4, 4a, 8; 175.45; 216B.03; 
1.23 	216B.16, subdivisions 1a, 6; 216B.161, subdivision 1; 216B.164, subdivisions 5, 
1.24 	9, by adding a subdivision; 216B.1691, subdivision 2f; 216B.1694, subdivisions 
1.25 	1, 3; 216B.241, subdivisions 1b, 1c, 2, 5, 5d, 7; 216B.2422, subdivisions 2, 3, 4; 
1.26 	216B.2424, by adding a subdivision; 216B.243, subdivision 8; 216C.05, subdivision 
1.27 	2; 216C.41, subdivisions 2, 5a; 216C.435, by adding a subdivision; 216E.03, 
1.28 	subdivisions 3, 9; 216E.04, subdivision 7; 216F.01, subdivision 2; 216F.011; 
1.29 	216F.04; 216H.03, subdivisions 3, 4, 7; 237.01, by adding subdivisions; 268.031, 
1.30 	subdivision 1; 268.035, subdivisions 15, 20, 21d, 23, 30; 268.042, subdivision 1; 
1.31 	268.046, subdivision 3; 268.051, subdivisions 1, 9; 268.065, subdivision 2; 268.07, 
1.32 	subdivisions 2, 3a, 3b; 268.085, subdivisions 1, 6, 7, 12, 13, 13a; 268.0865, 
1.33 	subdivision 5; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.105, 
1.34 	subdivision 2; 268.131; 268.18, subdivisions 2, 2b, 5; 268.182; 268.184; 268.194, 
1.35 	subdivisions 1, 4; 276A.01, subdivisions 8, 17; 276A.06, subdivision 8; 282.38, 
1.36 	subdivisions 1, 3; 297I.11, subdivision 2; 298.001, subdivision 8, by adding a 
1.37 	subdivision; 298.018, subdivision 1; 298.17; 298.22, subdivisions 1, 1a, 5a, 6, 10, 
1.38 	11, by adding subdivisions; 298.221; 298.2211, subdivisions 3, 6; 298.2212; 
1.39 	298.223, subdivisions 1, 2; 298.227; 298.27; 298.28, subdivisions 7, 7a, 9c, 9d, 
2.1 	11; 298.292, subdivision 2; 298.296; 298.2961; 298.297; 298.46, subdivisions 2, 
2.2 	5, 6; 299F.01, by adding a subdivision; 325J.06; 326B.092, subdivision 7; 
2.3 	326B.153, subdivision 1; 326B.37, by adding subdivisions; 326B.435, subdivision 
2.4 	2; 326B.50, subdivision 3, by adding subdivisions; 326B.55, subdivisions 2, 4; 
2.5 	326B.805, subdivision 3; 326B.89, subdivisions 1, 5; 327C.01, by adding a 
2.6 	subdivision; 345.42, by adding a subdivision; 345.49; 462.355, subdivision 4; 
2.7 	462A.2035; 466.03, subdivision 6c; 469.310, subdivision 9; 474A.02, subdivision 
2.8 	21; Laws 2010, chapter 389, article 5, section 7; Laws 2014, chapter 211, section 
2.9 	13, as amended; Laws 2014, chapter 312, article 2, section 14, as amended; Laws 
2.10 	2015, First Special Session chapter 1, article 1, sections 2, subdivision 6; 5, 
2.11 	subdivision 2; Laws 2016, chapter 189, article 7, section 46; proposing coding for 
2.12 	new law in Minnesota Statutes, chapters 14; 116J; 175; 216B; 216C; 216G; 237; 
2.13 	239; 326B; 327C; 462A; 462C; 471; repealing Minnesota Statutes 2016, sections 
2.14 	3.8852; 116C.779, subdivision 3; 116J.549; 174.187; 216B.8109; 216B.811; 
2.15 	216B.812; 216B.813; 216B.815; 216C.29; 216C.411; 216C.412; 216C.413; 
2.16 	216C.414; 216C.415; 216C.416; 298.22, subdivision 8; 298.2213; 298.298; 
2.17 	326B.89, subdivision 14; Laws 2005, chapter 112, article 1, section 14; Laws 2013, 
2.18 	chapter 85, article 6, section 11; Minnesota Rules, parts 4355.0100; 4355.0200; 
2.19 	4355.0300; 4355.0400; 4355.0500.
2.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.21 	ARTICLE 1
2.22 	APPROPRIATIONS

2.23	Section 1. JOBS AND ECONOMIC DEVELOPMENT.
 	
2.24 	(a) The sums shown in the columns marked "Appropriations" are appropriated to the 
2.25 	agencies and for the purposes specified in this article. The appropriations are from the 
2.26 	general fund, or another named fund, and are available for the fiscal years indicated for 
2.27 	each purpose. The figures "2018" and "2019" used in this article mean that the appropriations 
2.28 	listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019, 
2.29 	respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The 
2.30 	biennium" is fiscal years 2018 and 2019.
2.31 	(b) If an appropriation in this article is enacted more than once in the 2017 legislative 
2.32 	session, the appropriation must be given effect only once.

2.33				APPROPRIATIONS
	
2.34				Available for the Year
	
2.35				Ending June 30
	
2.36					2018
		2019

2.37
2.38	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.39	Subdivision 1.Total Appropriation
 	$
	132,032,000
	$
	113,011,000

2.40	Appropriations by Fund
	
3.1		2018
	2019
	
3.2	General
	$96,365,000
	$78,311,000
	
3.3	Remediation
	$700,000
	$700,000
	
3.4
3.5	Workforce 
Development
	$34,967,000
	$34,000,000
	
3.6 	(a) The amounts that may be spent for each 
3.7 	purpose are specified in the following 
3.8 	subdivisions.
3.9 	(b) Notwithstanding Minnesota Statutes, 
3.10 	section 16A.285, the commissioner of 
3.11 	employment and economic development must 
3.12 	not allow transfers of money appropriated in 
3.13 	this section between divisions or programs of 
3.14 	the Department of Employment and Economic 
3.15 	Development.
3.16 	(c) Notwithstanding Minnesota Statutes, 
3.17 	section 16B.37, subdivision 4, the 
3.18 	commissioner of employment and economic 
3.19 	development must not allow billing between 
3.20 	divisions or programs within the Department 
3.21 	of Employment and Economic Development, 
3.22 	or otherwise use any "Internal Billing 
3.23 	Expenditures."
3.24 	(d) Notwithstanding Minnesota Statutes, 
3.25 	sections 16B.37, subdivision 4, and 471.59, 
3.26 	except for work performed by MN.IT under 
3.27 	Minnesota Statutes, chapter 16E, the 
3.28 	commissioner of employment and economic 
3.29 	development must not allow billing or 
3.30 	transfers between other executive branch 
3.31 	agencies or departments and the Department 
3.32 	of Employment and Economic Development.

3.33	Subd. 2.Business and Community Development
 	$
	42,536,000
	$
	39,435,000

3.34	Appropriations by Fund
	
3.35	General
	$39,975,000
	$36,924,000
	
4.1	Remediation
	$700,000
	$700,000
	
4.2
4.3	Workforce 
Development
	$1,861,000
	$1,811,000
	
4.4 	(a) $4,195,000 each year is for the Minnesota 
4.5 	job skills partnership program under 
4.6 	Minnesota Statutes, sections 116L.01 to 
4.7 	116L.17. If the appropriation for either year 
4.8 	is insufficient, the appropriation for the other 
4.9 	year is available. This appropriation is 
4.10 	available until spent.
4.11 	(b) $750,000 each year is for grants to the 
4.12 	Neighborhood Development Center for small 
4.13 	business programs:
4.14 	(1) training, lending, and business services;
4.15 	(2) model outreach and training in greater 
4.16 	Minnesota; and
4.17 	(3) development of new business incubators.
4.18 	This is a onetime appropriation.
4.19 	(c) $1,175,000 each year is for a grant to the 
4.20 	Metropolitan Economic Development 
4.21 	Association (MEDA) for statewide business 
4.22 	development and assistance services, including 
4.23 	services to entrepreneurs with businesses that 
4.24 	have the potential to create job opportunities 
4.25 	for unemployed and underemployed people, 
4.26 	with an emphasis on minority-owned 
4.27 	businesses. This is a onetime appropriation.
4.28 	(d) $125,000 each year is for a grant to the 
4.29 	White Earth Nation for the White Earth Nation 
4.30 	Integrated Business Development System to 
4.31 	provide business assistance with workforce 
4.32 	development, outreach, technical assistance, 
4.33 	infrastructure and operational support, 
5.1 	financing, and other business development 
5.2 	activities. This is a onetime appropriation.
5.3 	(e)(1) $12,000,000 each year is for the 
5.4 	Minnesota investment fund under Minnesota 
5.5 	Statutes, section 116J.8731. Of this amount, 
5.6 	the commissioner of employment and 
5.7 	economic development may use up to three 
5.8 	percent for administration and monitoring of 
5.9 	the program. This appropriation is available 
5.10 	until spent. In fiscal year 2020 and beyond, 
5.11 	the base amount is $12,500,000.
5.12 	(2) Of the amount appropriated in fiscal year 
5.13 	2018, $4,000,000 is for a loan to construct and 
5.14 	equip a wholesale electronic component 
5.15 	distribution center investing a minimum of 
5.16 	$200,000,000 and constructing a facility at 
5.17 	least 700,000 square feet in size. Loan funds 
5.18 	may be used for purchases of materials, 
5.19 	supplies, and equipment for the construction 
5.20 	of the facility and are available from July 1, 
5.21 	2017, to June 30, 2021. The commissioner of 
5.22 	employment and economic development shall 
5.23 	forgive the loan after verification that the 
5.24 	project has satisfied performance goals and 
5.25 	contractual obligations as required under 
5.26 	Minnesota Statutes, section 116J.8731.
5.27 	(3) Of the amount appropriated in fiscal year 
5.28 	2018, $700,000 is for a loan to extend an 
5.29 	effluent pipe that will deliver reclaimed water 
5.30 	to an innovative waste-to-biofuel project 
5.31 	investing a minimum of $150,000,000 and 
5.32 	constructing a facility that is designed to 
5.33 	process approximately 400,000 tons of waste 
5.34 	annually. Loan funds are available until June 
5.35 	30, 2021.
6.1 	(f) $7,500,000 each year is for the Minnesota 
6.2 	job creation fund under Minnesota Statutes, 
6.3 	section 116J.8748. Of this amount, the 
6.4 	commissioner of employment and economic 
6.5 	development may use up to three percent for 
6.6 	administrative expenses. This appropriation 
6.7 	is available until June 30, 2021. In fiscal year 
6.8 	2018 and beyond, the base amount is 
6.9 	$8,000,000.
6.10 	(g) $1,647,000 each year is for contaminated 
6.11 	site cleanup and development grants under 
6.12 	Minnesota Statutes, sections 116J.551 to 
6.13 	116J.558. This appropriation is available until 
6.14 	spent. In fiscal year 2020 and beyond, the base 
6.15 	amount is $1,772,000.
6.16 	(h) $12,000 each year is for a grant to the 
6.17 	Upper Minnesota Film Office.
6.18 	(i) $163,000 each year is for the Minnesota 
6.19 	Film and TV Board. The appropriation in each 
6.20 	year is available only upon receipt by the 
6.21 	board of $1 in matching contributions of 
6.22 	money or in-kind contributions from nonstate 
6.23 	sources for every $3 provided by this 
6.24 	appropriation, except that each year up to 
6.25 	$50,000 is available on July 1 even if the 
6.26 	required matching contribution has not been 
6.27 	received by that date.
6.28 	(j) $500,000 each year is from the general fund 
6.29 	for a grant to the Minnesota Film and TV 
6.30 	Board for the film production jobs program 
6.31 	under Minnesota Statutes, section 116U.26. 
6.32 	This appropriation is available until June 30, 
6.33 	2021.
7.1 	(k) $139,000 each year is for a grant to the 
7.2 	Rural Policy and Development Center under 
7.3 	Minnesota Statutes, section 116J.421.
7.4 	(l)(1) $1,300,000 each year is for the greater 
7.5 	Minnesota business development public 
7.6 	infrastructure grant program under Minnesota 
7.7 	Statutes, section 116J.431. This appropriation 
7.8 	is available until spent. If the appropriation 
7.9 	for either year is insufficient, the appropriation 
7.10 	for the other year is available. In fiscal year 
7.11 	2020 and beyond, the base amount is 
7.12 	$2,545,000. Funds available under this 
7.13 	paragraph may be used for site preparation of 
7.14 	property owned and to be used by private 
7.15 	entities.
7.16 	(2) Of the amounts appropriated, $1,600,000 
7.17 	in fiscal year 2018 is for a grant to the city of 
7.18 	Thief River Falls to support utility extensions, 
7.19 	roads, and other public improvements related 
7.20 	to the construction of a wholesale electronic 
7.21 	component distribution center at least 700,000 
7.22 	square feet in size and investing a minimum 
7.23 	of $200,000,000. Notwithstanding Minnesota 
7.24 	Statutes, section 116J.431, a local match is 
7.25 	not required. Grant funds are available from 
7.26 	July 1, 2017, to June 30, 2021.
7.27 	(m) $876,000 the first year and $500,000 the 
7.28 	second year are for the Minnesota emerging 
7.29 	entrepreneur loan program under Minnesota 
7.30 	Statutes, section 116M.18. Funds available 
7.31 	under this paragraph are for transfer into the 
7.32 	emerging entrepreneur program special 
7.33 	revenue fund account created under Minnesota 
7.34 	Statutes, chapter 116M, and are available until 
7.35 	spent. Of this amount, up to four percent is for 
8.1 	administration and monitoring of the program. 
8.2 	In fiscal year 2020 and beyond, the base 
8.3 	amount is $1,000,000.
8.4 	(n) $875,000 each year is for a grant to 
8.5 	Enterprise Minnesota, Inc. for the small 
8.6 	business growth acceleration program under 
8.7 	Minnesota Statutes, section 116O.115. This 
8.8 	is a onetime appropriation.
8.9 	(o) $250,000 in fiscal year 2018 is for a grant 
8.10 	to the Minnesota Design Center at the 
8.11 	University of Minnesota for the greater 
8.12 	Minnesota community design pilot project.
8.13 	(p) $275,000 in fiscal year 2018 is from the 
8.14 	general fund to the commissioner of 
8.15 	employment and economic development for 
8.16 	a grant to Community and Economic 
8.17 	Development Associates (CEDA) for an 
8.18 	economic development study and analysis of 
8.19 	the effects of current and projected economic 
8.20 	growth in southeast Minnesota. CEDA shall 
8.21 	report on the findings and recommendations 
8.22 	of the study to the committees of the house of 
8.23 	representatives and senate with jurisdiction 
8.24 	over economic development and workforce 
8.25 	issues by February 15, 2019. All results and 
8.26 	information gathered from the study shall be 
8.27 	made available for use by cities in southeast 
8.28 	Minnesota by March 15, 2019. This 
8.29 	appropriation is available until June 30, 2020.
8.30 	(q) $2,000,000 in fiscal year 2018 is for a 
8.31 	grant to Pillsbury United Communities for 
8.32 	construction and renovation of a building in 
8.33 	north Minneapolis for use as the "North 
8.34 	Market" grocery store and wellness center, 
8.35 	focused on offering healthy food, increasing 
9.1 	health care access, and providing job creation 
9.2 	and economic opportunities in one place for 
9.3 	children and families living in the area. To the 
9.4 	extent possible, Pillsbury United Communities 
9.5 	shall employ individuals who reside within a 
9.6 	five mile radius of the grocery store and 
9.7 	wellness center. This appropriation is not 
9.8 	available until at least an equal amount of 
9.9 	money is committed from nonstate sources. 
9.10 	This appropriation is available until the project 
9.11 	is completed or abandoned, subject to 
9.12 	Minnesota Statutes, section 16A.642.
9.13 	(r) $1,425,000 each year is for the business 
9.14 	development competitive grant program. Of 
9.15 	this amount, up to five percent is for 
9.16 	administration and monitoring of the business 
9.17 	development competitive grant program. All 
9.18 	grant awards shall be for two consecutive 
9.19 	years. Grants shall be awarded in the first year.
9.20 	(s) $150,000 in fiscal year 2018 is for a grant 
9.21 	to Mille Lacs County for the Lake Mille Lacs 
9.22 	area economic relief program under Laws 
9.23 	2016, chapter 189, article 7, section 46.
9.24 	(t) $875,000 each year is for the host 
9.25 	community economic development grant 
9.26 	program established in Minnesota Statutes, 
9.27 	section 116J.548.
9.28 	(u) $700,000 each year is from the remediation 
9.29 	fund for contaminated site cleanup and 
9.30 	development grants under Minnesota Statutes, 
9.31 	sections 116J.551 to 116J.558. This 
9.32 	appropriation is available until spent.
9.33 	(v) $161,000 each year is from the workforce 
9.34 	development fund for transfer to the rural 
10.1 	policy and development center fund account 
10.2 	in the special revenue fund under Minnesota 
10.3 	Statutes, section 116J.4221. This is a onetime 
10.4 	transfer.
10.5 	(w) $300,000 each year is from the workforce 
10.6 	development fund for a grant to Enterprise 
10.7 	Minnesota, Inc. This is a onetime 
10.8 	appropriation.
10.9 	(x) $50,000 in fiscal year 2018 is from the 
10.10 	workforce development fund for a grant to 
10.11 	Fighting Chance for behavioral intervention 
10.12 	programs for at-risk youth.
10.13 	(y) $1,350,000 each year is from the 
10.14 	workforce development fund for job training 
10.15 	grants under Minnesota Statutes, section 
10.16 	116L.42.

10.17	Subd. 3.Workforce Development
 	$
	31,148,000
	$
	30,228,000

10.18	Appropriations by Fund
	
10.19	General
	$5,889,000
	$5,886,000
	
10.20
10.21	Workforce 
Development
	$25,259,000
	$24,342,000
	
10.22 	(a) $500,000 each year is for the 
10.23 	youth-at-work competitive grant program 
10.24 	under Minnesota Statutes, section 116L.562. 
10.25 	Of this amount, up to five percent is for 
10.26 	administration and monitoring of the youth 
10.27 	workforce development competitive grant 
10.28 	program. All grant awards shall be for two 
10.29 	consecutive years. Grants shall be awarded in 
10.30 	the first year. In fiscal year 2020 and beyond, 
10.31 	the base amount is $750,000.
10.32 	(b) $250,000 each year is for pilot programs 
10.33 	in the workforce service areas to combine 
10.34 	career and higher education advising.
11.1 	(c) $500,000 each year is for rural career 
11.2 	counseling coordinator positions in the 
11.3 	workforce service areas and for the purposes 
11.4 	specified in Minnesota Statutes, section 
11.5 	116L.667. The commissioner of employment 
11.6 	and economic development, in consultation 
11.7 	with local workforce investment boards and 
11.8 	local elected officials in each of the service 
11.9 	areas receiving funds, shall develop a method 
11.10 	of distributing funds to provide equitable 
11.11 	services across workforce service areas.
11.12 	(d) $1,000,000 each year is for a grant to the 
11.13 	Construction Careers Foundation for the 
11.14 	construction career pathway initiative to 
11.15 	provide year-round educational and 
11.16 	experiential learning opportunities for teens 
11.17 	and young adults under the age of 21 that lead 
11.18 	to careers in the construction industry. This is 
11.19 	a onetime appropriation. Grant funds must be 
11.20 	used to:
11.21 	(1) increase construction industry exposure 
11.22 	activities for middle school and high school 
11.23 	youth, parents, and counselors to reach a more 
11.24 	diverse demographic and broader statewide 
11.25 	audience. This requirement includes, but is 
11.26 	not limited to, an expansion of programs to 
11.27 	provide experience in different crafts to youth 
11.28 	and young adults throughout the state;
11.29 	(2) increase the number of high schools in 
11.30 	Minnesota offering construction classes during 
11.31 	the academic year that utilize a multicraft 
11.32 	curriculum;
11.33 	(3) increase the number of summer internship 
11.34 	opportunities;
12.1 	(4) enhance activities to support graduating 
12.2 	seniors in their efforts to obtain employment 
12.3 	in the construction industry;
12.4 	(5) increase the number of young adults 
12.5 	employed in the construction industry and 
12.6 	ensure that they reflect Minnesota's diverse 
12.7 	workforce; and
12.8 	(6) enhance an industrywide marketing 
12.9 	campaign targeted to youth and young adults 
12.10 	about the depth and breadth of careers within 
12.11 	the construction industry.
12.12 	Programs and services supported by grant 
12.13 	funds must give priority to individuals and 
12.14 	groups that are economically disadvantaged 
12.15 	or historically underrepresented in the 
12.16 	construction industry, including but not limited 
12.17 	to women, veterans, and members of minority 
12.18 	and immigrant groups.
12.19 	(e) $500,000 each year is from the general 
12.20 	fund for the Pathways to Prosperity adult 
12.21 	workforce development competitive grant 
12.22 	program. Of this amount, up to four percent 
12.23 	is for administration and monitoring of the 
12.24 	program. When awarding grants under this 
12.25 	paragraph, the commissioner of employment 
12.26 	and economic development may give 
12.27 	preference to any previous grantee with 
12.28 	demonstrated success in job training and 
12.29 	placement for hard-to-train individuals. In 
12.30 	fiscal year 2020 and beyond, the base amount 
12.31 	for this program is $3,500,000.
12.32 	(f) $750,000 each year is for a competitive 
12.33 	grant program to provide grants to 
12.34 	organizations that provide support services for 
13.1 	individuals, such as job training, employment 
13.2 	preparation, internships, job assistance to 
13.3 	fathers, financial literacy, academic and 
13.4 	behavioral interventions for low-performing 
13.5 	students, and youth intervention. Grants made 
13.6 	under this section must focus on low-income 
13.7 	communities, young adults from families with 
13.8 	a history of intergenerational poverty, and 
13.9 	communities of color. Of this amount, up to 
13.10 	four percent is for administration and 
13.11 	monitoring of the program. The base amount 
13.12 	for this program is $1,000,000 in fiscal year 
13.13 	2020 and $1,000,000 in fiscal year 2021.
13.14 	(g) $500,000 each year is for the women and 
13.15 	high-wage, high-demand, nontraditional jobs 
13.16 	grant program under Minnesota Statutes, 
13.17 	section 116L.99. Of this amount, up to five 
13.18 	percent is for administration and monitoring 
13.19 	of the program. In fiscal year 2020 and 
13.20 	beyond, the base amount is $750,000.
13.21 	(h) $500,000 each year is for a competitive 
13.22 	grant program for grants to organizations 
13.23 	providing services to relieve economic 
13.24 	disparities in the Southeast Asian community 
13.25 	through workforce recruitment, development, 
13.26 	job creation, assistance of smaller 
13.27 	organizations to increase capacity, and 
13.28 	outreach. Of this amount, up to five percent 
13.29 	is for administration and monitoring of the 
13.30 	program. In fiscal year 2020 and beyond, the 
13.31 	base amount is $1,000,000.
13.32 	(i) $250,000 each year is for a grant to the 
13.33 	American Indian Opportunities and 
13.34 	Industrialization Center, in collaboration with 
13.35 	the Northwest Indian Community 
14.1 	Development Center, to reduce academic 
14.2 	disparities for American Indian students and 
14.3 	adults. This is a onetime appropriation. The 
14.4 	grant funds may be used to provide:
14.5 	(1) student tutoring and testing support 
14.6 	services;
14.7 	(2) training in information technology;
14.8 	(3) assistance in obtaining a GED;
14.9 	(4) remedial training leading to enrollment in 
14.10 	a postsecondary higher education institution;
14.11 	(5) real-time work experience in information 
14.12 	technology fields; and
14.13 	(6) contextualized adult basic education.
14.14 	After notification to the legislature, the 
14.15 	commissioner may transfer this appropriation 
14.16 	to the commissioner of education.
14.17 	(j) $1,039,000 in the first year and $1,036,000 
14.18 	in the second year are for the adult workforce 
14.19 	development competitive grant program. Of 
14.20 	this amount, up to four percent is for 
14.21 	administration and monitoring of the program. 
14.22 	All grant awards shall be for two consecutive 
14.23 	years. Grants shall be awarded in the first year. 
14.24 	In fiscal year 2020 and beyond, the base 
14.25 	amount is $1,039,000.
14.26 	(k) $100,000 each year is for the getting to 
14.27 	work grant program. This is a onetime 
14.28 	appropriation and is available until June 30, 
14.29 	2021.
14.30 	(l) $525,000 each year is from the workforce 
14.31 	development fund for a grant to the YWCA 
14.32 	of Minneapolis to provide economically 
14.33 	challenged individuals the job skills training, 
15.1 	career counseling, and job placement 
15.2 	assistance necessary to secure a child 
15.3 	development associate credential and to have 
15.4 	a career path in early childhood education. 
15.5 	This is a onetime appropriation.
15.6 	(m) $1,500,000 each year is from the 
15.7 	workforce development fund for a grant to the 
15.8 	FastTRAC-Minnesota Adult Careers Pathways 
15.9 	program. Up to ten percent of this 
15.10 	appropriation may be used to provide 
15.11 	leadership, oversight, and technical assistance 
15.12 	services for low-skilled, low-income adults.
15.13 	(n) $3,104,000 each year is for the adult 
15.14 	workforce development competitive grant 
15.15 	program. Of this amount, up to four percent 
15.16 	is for administration and monitoring of the 
15.17 	program. All grant awards shall be for two 
15.18 	consecutive years. Grants shall be awarded in 
15.19 	the first year.
15.20 	(o) $1,350,000 each year is from the 
15.21 	workforce development fund for a grant to the 
15.22 	Minnesota High Tech Association to support 
15.23 	SciTechsperience, a program that supports 
15.24 	science, technology, engineering, and math 
15.25 	(STEM) internship opportunities for two- and 
15.26 	four-year college students and graduate 
15.27 	students in their field of study. The internship 
15.28 	opportunities must match students with paid 
15.29 	internships within STEM disciplines at small, 
15.30 	for-profit companies located in Minnesota, 
15.31 	having fewer than 250 employees worldwide. 
15.32 	At least 300 students must be matched in the 
15.33 	first year and at least 350 students must be 
15.34 	matched in the second year. No more than 15 
15.35 	percent of the hires may be graduate students. 
16.1 	Selected hiring companies shall receive from 
16.2 	the grant 50 percent of the wages paid to the 
16.3 	intern, capped at $2,500 per intern. The 
16.4 	program must work toward increasing the 
16.5 	participation of women or other underserved 
16.6 	populations. This is a onetime appropriation.
16.7 	(p) $450,000 each year is from the workforce 
16.8 	development fund for grants to Minnesota 
16.9 	Diversified Industries, Inc. to provide 
16.10 	progressive development and employment 
16.11 	opportunities for people with disabilities. This 
16.12 	is a onetime appropriation.
16.13 	(q) $500,000 each year is from the workforce 
16.14 	development fund for a grant to Resource, Inc. 
16.15 	to provide low-income individuals career 
16.16 	education and job skills training that are fully 
16.17 	integrated with chemical and mental health 
16.18 	services. This is a onetime appropriation.
16.19 	(r) $750,000 each year is from the workforce 
16.20 	development fund for a grant to the Minnesota 
16.21 	Alliance of Boys and Girls Clubs to administer 
16.22 	a statewide project of youth job skills and 
16.23 	career development. This project, which may 
16.24 	have career guidance components including 
16.25 	health and life skills, is designed to encourage, 
16.26 	train, and assist youth in early access to 
16.27 	education and job-seeking skills, work-based 
16.28 	learning experience including career pathways 
16.29 	in STEM learning, career exploration and 
16.30 	matching, and first job placement through 
16.31 	local community partnerships and on-site job 
16.32 	opportunities. This grant requires a 25 percent 
16.33 	match from nonstate resources. This is a 
16.34 	onetime appropriation.
17.1 	(s) $215,000 each year is from the workforce 
17.2 	development fund for grants to Big Brothers, 
17.3 	Big Sisters of the Greater Twin Cities for 
17.4 	workforce readiness, employment exploration, 
17.5 	and skills development for youth ages 12 to 
17.6 	21. The grant must serve youth in the Twin 
17.7 	Cities, Central Minnesota, and Southern 
17.8 	Minnesota Big Brothers, Big Sisters chapters. 
17.9 	This is a onetime appropriation.
17.10 	(t) $250,000 each year is from the workforce 
17.11 	development fund for a grant to YWCA St. 
17.12 	Paul to provide job training services and 
17.13 	workforce development programs and 
17.14 	services, including job skills training and 
17.15 	counseling. This is a onetime appropriation.
17.16 	(u) $1,000,000 each year is from the 
17.17 	workforce development fund for a grant to 
17.18 	EMERGE Community Development, in 
17.19 	collaboration with community partners, for 
17.20 	services targeting Minnesota communities 
17.21 	with the highest concentrations of African and 
17.22 	African-American joblessness, based on the 
17.23 	most recent census tract data, to provide 
17.24 	employment readiness training, credentialed 
17.25 	training placement, job placement and 
17.26 	retention services, supportive services for 
17.27 	hard-to-employ individuals, and a general 
17.28 	education development fast track and adult 
17.29 	diploma program. This is a onetime 
17.30 	appropriation.
17.31 	(v) $1,000,000 each year is from the 
17.32 	workforce development fund for a grant to the 
17.33 	Minneapolis Foundation for a strategic 
17.34 	intervention program designed to target and 
17.35 	connect program participants to meaningful, 
18.1 	sustainable living-wage employment. This is 
18.2 	a onetime appropriation.
18.3 	(w) $750,000 each year is from the workforce 
18.4 	development fund for a grant to Latino 
18.5 	Communities United in Service (CLUES) to 
18.6 	expand culturally tailored programs that 
18.7 	address employment and education skill gaps 
18.8 	for working parents and underserved youth by 
18.9 	providing new job skills training to stimulate 
18.10 	higher wages for low-income people, family 
18.11 	support systems designed to reduce 
18.12 	intergenerational poverty, and youth 
18.13 	programming to promote educational 
18.14 	advancement and career pathways. At least 
18.15 	50 percent of this amount must be used for 
18.16 	programming targeted at greater Minnesota. 
18.17 	This is a onetime appropriation.
18.18 	(x) $600,000 each year is from the workforce 
18.19 	development fund for a grant to Ujamaa Place 
18.20 	for job training, employment preparation, 
18.21 	internships, education, training in the 
18.22 	construction trades, housing, and 
18.23 	organizational capacity building. This is a 
18.24 	onetime appropriation.
18.25 	(y) $1,297,000 in the first year and $800,000 
18.26 	in the second year are from the workforce 
18.27 	development fund for performance grants 
18.28 	under Minnesota Statutes, section 116J.8747, 
18.29 	to Twin Cities R!SE to provide training to 
18.30 	hard-to-train individuals. Of the amounts 
18.31 	appropriated, $497,000 in fiscal year 2018 is 
18.32 	for a grant to Twin Cities R!SE, in 
18.33 	collaboration with Metro Transit and Hennepin 
18.34 	Technical College for the Metro Transit 
18.35 	technician training program. This is a onetime 
19.1 	appropriation and funds are available until 
19.2 	June 30, 2020.
19.3 	(z) $230,000 in fiscal year 2018 is from the 
19.4 	workforce development fund for a grant to the 
19.5 	Bois Forte Tribal Employment Rights Office 
19.6 	(TERO) for an American Indian workforce 
19.7 	development training pilot project.
19.8 	(aa) $40,000 in fiscal year 2018 is from the 
19.9 	workforce development fund for a grant to the 
19.10 	Cook County Higher Education Board to 
19.11 	provide educational programming and 
19.12 	academic support services to remote regions 
19.13 	in northeastern Minnesota. This appropriation 
19.14 	is in addition to other funds previously 
19.15 	appropriated to the board.
19.16 	(bb) $250,000 each year is from the workforce 
19.17 	development fund for a grant to Bridges to 
19.18 	Healthcare to provide career education, 
19.19 	wraparound support services, and job skills 
19.20 	training in high-demand health care fields to 
19.21 	low-income parents, nonnative speakers of 
19.22 	English, and other hard-to-train individuals, 
19.23 	helping families build secure pathways out of 
19.24 	poverty while also addressing worker 
19.25 	shortages in one of Minnesota's most 
19.26 	innovative industries. Funds may be used for 
19.27 	program expenses, including, but not limited 
19.28 	to, hiring instructors and navigators; space 
19.29 	rental; and supportive services to help 
19.30 	participants attend classes, including assistance 
19.31 	with course fees, child care, transportation, 
19.32 	and safe and stable housing. In addition, up to 
19.33 	five percent of grant funds may be used for 
19.34 	Bridges to Healthcare's administrative costs. 
20.1 	This is a onetime appropriation and is 
20.2 	available until June 30, 2020.
20.3 	(cc) $500,000 each year is from the workforce 
20.4 	development fund for a grant to the Nonprofits 
20.5 	Assistance Fund to provide capacity-building 
20.6 	grants to small, culturally specific 
20.7 	organizations that primarily serve historically 
20.8 	underserved cultural communities. Grants may 
20.9 	only be awarded to nonprofit organizations 
20.10 	that have an annual organizational budget of 
20.11 	less than $500,000 and are culturally specific 
20.12 	organizations that primarily serve historically 
20.13 	underserved cultural communities. Grant funds 
20.14 	awarded must be used for:
20.15 	(1) organizational infrastructure improvement, 
20.16 	including developing database management 
20.17 	systems and financial systems, or other 
20.18 	administrative needs that increase the 
20.19 	organization's ability to access new funding 
20.20 	sources;
20.21 	(2) organizational workforce development, 
20.22 	including hiring culturally competent staff, 
20.23 	training and skills development, and other 
20.24 	methods of increasing staff capacity; or
20.25 	(3) creation or expansion of partnerships with 
20.26 	existing organizations that have specialized 
20.27 	expertise in order to increase the capacity of 
20.28 	the grantee organization to improve services 
20.29 	for the community. Of this amount, up to five 
20.30 	percent may be used by the Nonprofits 
20.31 	Assistance Fund for administration costs and 
20.32 	providing technical assistance to potential 
20.33 	grantees. This is a onetime appropriation.
21.1 	(dd) $4,050,000 each year is from the 
21.2 	workforce development fund for the 
21.3 	Minnesota youth program under Minnesota 
21.4 	Statutes, sections 116L.56 and 116L.561.
21.5 	(ee) $1,000,000 each year is from the 
21.6 	workforce development fund for the 
21.7 	youthbuild program under Minnesota Statutes, 
21.8 	sections 116L.361 to 116L.366.
21.9 	(ff) $3,348,000 each year is from the 
21.10 	workforce development fund for the "Youth 
21.11 	at Work" youth workforce development 
21.12 	competitive grant program. Of this amount, 
21.13 	up to five percent is for administration and 
21.14 	monitoring of the youth workforce 
21.15 	development competitive grant program. All 
21.16 	grant awards shall be for two consecutive 
21.17 	years. Grants shall be awarded in the first year.
21.18 	(gg) $500,000 each year is from the workforce 
21.19 	development fund for the Opportunities 
21.20 	Industrialization Center programs.
21.21 	(hh) $750,000 each year is from the workforce 
21.22 	development fund for a grant to Summit 
21.23 	Academy OIC to expand its contextualized 
21.24 	GED and employment placement program. 
21.25 	This is a onetime appropriation.
21.26 	(ii) $500,000 each year is from the workforce 
21.27 	development fund for a grant to 
21.28 	Goodwill-Easter Seals Minnesota and its 
21.29 	partners. The grant shall be used to continue 
21.30 	the FATHER Project in Rochester, Park 
21.31 	Rapids, St. Cloud, Minneapolis, and the 
21.32 	surrounding areas to assist fathers in 
21.33 	overcoming barriers that prevent fathers from 
22.1 	supporting their children economically and 
22.2 	emotionally. This is a onetime appropriation.
22.3 	(jj) $150,000 each year is from the workforce 
22.4 	development fund for displaced homemaker 
22.5 	programs under Minnesota Statutes, section 
22.6 	116L.96. The commissioner, through the adult 
22.7 	career pathways program, shall distribute the 
22.8 	funds to existing nonprofit and state displaced 
22.9 	homemaker programs. This is a onetime 
22.10 	appropriation.
22.11 	(kk)(1) $150,000 in fiscal year 2018 is from 
22.12 	the workforce development fund for a grant 
22.13 	to Anoka County to develop and implement 
22.14 	a pilot program to increase competitive 
22.15 	employment opportunities for transition-age 
22.16 	youth ages 18 to 21.
22.17 	(2) The competitive employment for 
22.18 	transition-age youth pilot program shall 
22.19 	include career guidance components, including 
22.20 	health and life skills, to encourage, train, and 
22.21 	assist transition-age youth in job-seeking 
22.22 	skills, workplace orientation, and job site 
22.23 	knowledge.
22.24 	(3) In operating the pilot program, Anoka 
22.25 	County shall collaborate with schools, 
22.26 	disability providers, jobs and training 
22.27 	organizations, vocational rehabilitation 
22.28 	providers, and employers to build upon 
22.29 	opportunities and services, to prepare 
22.30 	transition-age youth for competitive 
22.31 	employment, and to enhance employer 
22.32 	connections that lead to employment for the 
22.33 	individuals served.
23.1 	(4) Grant funds may be used to create an 
23.2 	on-the-job training incentive to encourage 
23.3 	employers to hire and train qualifying 
23.4 	individuals. A participating employer may 
23.5 	receive up to 50 percent of the wages paid to 
23.6 	the employee as a cost reimbursement for 
23.7 	on-the-job training provided.
23.8 	(ll) $500,000 each year is from the workforce 
23.9 	development fund for rural career counseling 
23.10 	coordinator positions in the workforce service 
23.11 	areas and for the purposes specified in 
23.12 	Minnesota Statutes, section 116L.667. The 
23.13 	commissioner of employment and economic 
23.14 	development, in consultation with local 
23.15 	workforce investment boards and local elected 
23.16 	officials in each of the service areas receiving 
23.17 	funds, shall develop a method of distributing 
23.18 	funds to provide equitable services across 
23.19 	workforce service areas.

23.20	Subd. 4.General Support Services
 	$
	3,190,000
	$
	3,190,000

23.21	Appropriations by Fund
	
23.22	General Fund
	$3,173,000
	$3,173,000
	
23.23
23.24	Workforce 
Development
	$17,000
	$17,000
	
23.25 	(a) $1,269,000 each year is for transfer to the 
23.26 	Minnesota Housing Finance Agency for 
23.27 	operating the Olmstead Compliance Office.
23.28 	(b) $500,000 each year is for a statewide 
23.29 	capacity-building grant program. The 
23.30 	commissioner of employment and economic 
23.31 	development shall, through a request for 
23.32 	proposal process, select a nonprofit 
23.33 	organization to administer the 
23.34 	capacity-building grant program. The selected 
23.35 	organization must have demonstrated 
24.1 	experience in providing financial and technical 
24.2 	assistance to nonprofit organizations statewide. 
24.3 	The selected organization shall provide 
24.4 	financial assistance in the form of subgrants 
24.5 	and technical assistance to small to 
24.6 	medium-sized nonprofit organizations 
24.7 	offering, or seeking to offer, workforce or 
24.8 	economic development programming that 
24.9 	addresses economic disparities in underserved 
24.10 	cultural communities. This assistance can be 
24.11 	provided in-house or in partnership with other 
24.12 	organizations depending on need. The 
24.13 	nonprofit organization selected to administer 
24.14 	the grant program shall report to the 
24.15 	commissioner by February 1 each year 
24.16 	regarding assistance provided, including the 
24.17 	demographic and geographic distribution of 
24.18 	the grant awards, services, and outcomes. By 
24.19 	April 1 each year, the commissioner shall 
24.20 	report the information submitted by the 
24.21 	nonprofit to the legislative committees having 
24.22 	jurisdiction over economic development 
24.23 	issues. Of this amount, one percent is for the 
24.24 	commissioner to conduct the request for 
24.25 	proposal process and monitor the selected 
24.26 	organization. The nonprofit selected to 
24.27 	administer the grant program may use up to 
24.28 	five percent of the grant funds for 
24.29 	administration costs and providing technical 
24.30 	assistance to potential subgrantees.

24.31	Subd. 5.Minnesota Trade Office
 	$
	2,292,000
	$
	2,292,000
	
24.32 	(a) $300,000 each year is for the STEP grants 
24.33 	in Minnesota Statutes, section 116J.979.
25.1 	(b) $180,000 each year is for the Invest 
25.2 	Minnesota marketing initiative in Minnesota 
25.3 	Statutes, section 116J.9781.
25.4 	(c) $270,000 each year is for the Minnesota 
25.5 	Trade Offices under Minnesota Statutes, 
25.6 	section 116J.978.
25.7 	(d) $50,000 each year is for the Trade Policy 
25.8 	Advisory Council under Minnesota Statutes, 
25.9 	section 116J.9661.

25.10	Subd. 6.Vocational Rehabilitation
 	$
	31,191,000
	$
	31,191,000

25.11	Appropriations by Fund
	
25.12	General
	$23,361,000
	$23,361,000
	
25.13
25.14	Workforce 
Development
	$7,830,000
	$7,830,000
	
25.15 	(a) $10,800,000 each year is for the state's 
25.16 	vocational rehabilitation program under 
25.17 	Minnesota Statutes, chapter 268A.
25.18 	(b) $3,011,000 each year is for grants to 
25.19 	centers for independent living under 
25.20 	Minnesota Statutes, section 268A.11.
25.21 	(c) $6,995,000 each year is from the general 
25.22 	fund and $6,830,000 each year is from the 
25.23 	workforce development fund for extended 
25.24 	employment services for persons with severe 
25.25 	disabilities under Minnesota Statutes, section 
25.26 	268A.15. Of the general fund amount 
25.27 	appropriated, $500,000 each year is for rate 
25.28 	increases to providers of extended employment 
25.29 	services for persons with severe disabilities 
25.30 	under Minnesota Statutes, section 268A.15. 
25.31 	In fiscal year 2020 and beyond, the general 
25.32 	fund base amount is $8,995,000. Of the base 
25.33 	amounts in fiscal years 2020 and 2021, 
25.34 	$1,625,000 in fiscal year 2020 and $1,625,000 
25.35 	in fiscal year 2021 are for rate increases to 
26.1 	providers of extended employment services 
26.2 	for persons with severe disabilities under 
26.3 	Minnesota Statutes, section 268A.15.
26.4 	(d) $2,555,000 each year is for grants to 
26.5 	programs that provide employment support 
26.6 	services to persons with mental illness under 
26.7 	Minnesota Statutes, sections 268A.13 and 
26.8 	268A.14.
26.9 	(e) $1,000,000 each year is from the workforce 
26.10 	development fund for grants under Minnesota 
26.11 	Statutes, section 268A.16, for employment 
26.12 	services for persons, including transition-age 
26.13 	youth, who are deaf, deafblind, or 
26.14 	hard-of-hearing. If the amount in the first year 
26.15 	is insufficient, the amount in the second year 
26.16 	is available in the first year.

26.17	Subd. 7.Services for the Blind
 	$
	6,425,000
	$
	6,425,000

26.18	Subd. 8.Broadband Development
 	$
	15,250,000
	$
	250,000
	
26.19 	(a) $15,000,000 in fiscal year 2018 is for 
26.20 	deposit in the border-to-border broadband fund 
26.21 	account in the special revenue fund established 
26.22 	under Minnesota Statutes, section 116J.396.
26.23 	(b) $250,000 each year is for the Broadband 
26.24 	Development Office.

26.25	Subd. 9.Reporting
 					
26.26 	(a) An entity receiving a direct appropriation 
26.27 	in this article that received a direct 
26.28 	appropriation in Laws 2016, chapter 189, 
26.29 	article 12, is subject to the requirements for 
26.30 	grants to individually specified recipients 
26.31 	under Laws 2016, chapter 189, article 12, 
26.32 	section 11.
26.33 	(b) Any recipient of a direct appropriation 
26.34 	from the workforce development fund for 
27.1 	adult workforce-related programs under 
27.2 	subdivision 3 not subject to the requirements 
27.3 	of paragraph (a) is subject to the reporting 
27.4 	requirements under Minnesota Statutes, 
27.5 	section 116L.98.

27.6	Subd. 10.Competitive Grant Limitations
 					
27.7 	An organization that receives a direct 
27.8 	appropriation under this section is not eligible 
27.9 	to participate in competitive grant programs 
27.10 	funded under this section, either directly or by 
27.11 	receiving funds from a third party that received 
27.12 	a competitive grant under this section, during 
27.13 	the fiscal years in which the direct 
27.14 	appropriations are received.

27.15	Sec. 3. HOUSING FINANCE AGENCY

27.16	Subdivision 1.Total Appropriation
 	$
	52,798,000
	$
	52,798,000
	
27.17 	The amounts that may be spent for each 
27.18 	purpose are specified in the following 
27.19 	subdivisions.
27.20 	Unless otherwise specified, this appropriation 
27.21 	is for transfer to the housing development fund 
27.22 	for the programs specified in this section. 
27.23 	Except as otherwise indicated, this transfer is 
27.24 	part of the agency's permanent budget base.

27.25	Subd. 2.Challenge Program
 		14,925,000
		14,925,000
	
27.26 	(a)(1) This appropriation is for the economic 
27.27 	development and housing challenge program 
27.28 	under Minnesota Statutes, section 462A.33. 
27.29 	The agency must continue to strengthen its 
27.30 	efforts to address the disparity rate between 
27.31 	white households and indigenous American 
27.32 	Indians and communities of color. Of this 
27.33 	amount, $1,208,000 each year shall be made 
28.1 	available during the first 11 months of the 
28.2 	fiscal year exclusively for housing projects 
28.3 	for American Indians. Any funds not 
28.4 	committed to housing projects for American 
28.5 	Indians in the first 11 months of each fiscal 
28.6 	year shall be available for any eligible activity 
28.7 	under Minnesota Statutes, section 462A.33.
28.8 	(2) The appropriation may be used to finance 
28.9 	the construction or replacement of real 
28.10 	property that is located in Melrose affected by 
28.11 	the fire on September 8, 2016.
28.12 	(3) The commissioner may allocate a portion 
28.13 	of the appropriation for the economic 
28.14 	development and housing challenge program 
28.15 	for assistance in the area included in DR-4290, 
28.16 	as provided in Minnesota Statutes, section 
28.17 	12A.09. The maximum loan amount per 
28.18 	housing structure is $20,000. Within the limits 
28.19 	of available appropriations, the agency may 
28.20 	increase the maximum amount if the cost of 
28.21 	repair or replacement of the residential 
28.22 	property exceeds the total of the maximum 
28.23 	loan amount and any assistance available from 
28.24 	FEMA, other federal government agencies, 
28.25 	including the Small Business Administration, 
28.26 	and private insurance and flood insurance 
28.27 	benefits.
28.28 	(b) $2,000,000 each year is for the purposes 
28.29 	of the workforce housing development 
28.30 	program under Minnesota Statutes, section 
28.31 	462A.39. Notwithstanding article 11, section 
28.32 	9, the commissioner of housing finance may 
28.33 	hire staff sufficient for the purposes of this 
28.34 	paragraph.

28.35	Subd. 3.Housing Trust Fund
 		11,646,000
		11,646,000
	
29.1 	This appropriation is for deposit in the housing 
29.2 	fund account created under Minnesota 
29.3 	Statutes, section 462A.201, and may be used 
29.4 	for the purposes provided in that section.

29.5	Subd. 4.Rental Assistance for Mentally Ill
 		4,088,000
		4,088,000
	
29.6 	This appropriation is for the rental housing 
29.7 	assistance program for persons with a mental 
29.8 	illness or families with an adult member with 
29.9 	a mental illness, under Minnesota Statutes, 
29.10 	section 462A.2097. Among comparable 
29.11 	proposals, the agency shall prioritize those 
29.12 	proposals that target, in part, eligible persons 
29.13 	who desire to move to more integrated, 
29.14 	community-based settings.

29.15	Subd. 5.Family Homeless Prevention
 		8,519,000
		8,519,000
	
29.16 	This appropriation is for the family homeless 
29.17 	prevention and assistance programs under 
29.18 	Minnesota Statutes, section 462A.204.

29.19	Subd. 6.Home Ownership Assistance Fund
 		885,000
		885,000
	
29.20 	This appropriation is for the home ownership 
29.21 	assistance program under Minnesota Statutes, 
29.22 	section 462A.21, subdivision 8. The agency 
29.23 	shall continue to strengthen its efforts to 
29.24 	address the disparity gap in the 
29.25 	homeownership rate between white 
29.26 	households and indigenous American Indians 
29.27 	and communities of color.

29.28	Subd. 7.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
29.29 	(a) This appropriation is for the affordable 
29.30 	rental investment fund program under 
29.31 	Minnesota Statutes, section 462A.21, 
29.32 	subdivision 8b, to finance the acquisition, 
29.33 	rehabilitation, and debt restructuring of 
29.34 	federally assisted rental property and for 
30.1 	making equity take-out loans under Minnesota 
30.2 	Statutes, section 462A.05, subdivision 39.
30.3 	(b) The owner of federally assisted rental 
30.4 	property must agree to participate in the 
30.5 	applicable federally assisted housing program 
30.6 	and to extend any existing low-income 
30.7 	affordability restrictions on the housing for 
30.8 	the maximum term permitted. The owner must 
30.9 	also enter into an agreement that gives local 
30.10 	units of government, housing and 
30.11 	redevelopment authorities, and nonprofit 
30.12 	housing organizations the right of first refusal 
30.13 	if the rental property is offered for sale. 
30.14 	Priority must be given among comparable 
30.15 	federally assisted rental properties to 
30.16 	properties with the longest remaining term 
30.17 	under an agreement for federal assistance. 
30.18 	Priority must also be given among comparable 
30.19 	rental housing developments to developments 
30.20 	that are or will be owned by local government 
30.21 	units, a housing and redevelopment authority, 
30.22 	or a nonprofit housing organization.
30.23 	(c) The appropriation also may be used to 
30.24 	finance the acquisition, rehabilitation, and debt 
30.25 	restructuring of existing supportive housing 
30.26 	properties. For purposes of this subdivision, 
30.27 	"supportive housing" means affordable rental 
30.28 	housing with links to services necessary for 
30.29 	individuals, youth, and families with children 
30.30 	to maintain housing stability.

30.31	Subd. 8.Housing Rehabilitation
 		6,515,000
		6,515,000
	
30.32 	This appropriation is for the housing 
30.33 	rehabilitation program under Minnesota 
30.34 	Statutes, section 462A.05, subdivision 14. Of 
30.35 	this amount, $2,772,000 each year is for the 
31.1 	rehabilitation of owner-occupied housing, 
31.2 	$3,743,000 each year is for the rehabilitation 
31.3 	of eligible rental housing. In administering a 
31.4 	rehabilitation program for rental housing, the 
31.5 	agency may apply the processes and priorities 
31.6 	adopted for administration of the economic 
31.7 	development and housing challenge program 
31.8 	under Minnesota Statutes, section 462A.33.

31.931.10
	Subd. 9.Homeownership Education, Counseling, 
and Training
 		857,000
		857,000
	
31.11 	This appropriation is for the homeownership 
31.12 	education, counseling, and training program 
31.13 	under Minnesota Statutes, section 462A.209. 
31.14 	Priority may be given to funding programs 
31.15 	that are aimed at culturally specific groups 
31.16 	who are providing services to members of their 
31.17 	communities.

31.18	Subd. 10.Capacity Building Grants
 		645,000
		645,000
	
31.19 	This appropriation is for nonprofit capacity 
31.20 	building grants under Minnesota Statutes, 
31.21 	section 462A.21, subdivision 3b. Of this 
31.22 	amount, $125,000 each year is for support of 
31.23 	the Homeless Management Information 
31.24 	System (HMIS).

31.25	Subd. 11.Build Wealth MN
 		500,000
		500,000
	
31.26 	This appropriation is for grants to Build 
31.27 	Wealth MN to provide a family stabilization 
31.28 	plan program including program outreach, 
31.29 	financial literacy education, and budget and 
31.30 	debt counseling.

31.31
31.32	Sec. 4. DEPARTMENT OF LABOR AND 
INDUSTRY

31.33	Subdivision 1.Total Appropriation
 	$
	28,309,000
	$
	28,609,000

31.34	Appropriations by Fund
	
32.1		2018
	2019
	
32.2	General
	1,327,000
	1,327,000
	
32.3
32.4	Workers' 
Compensation
	24,975,000
	24,975,000
	
32.5
32.6	Workforce 
Development
	2,007,000
	2,307,000
	
32.7 	(a) The amounts that may be spent for each 
32.8 	purpose are specified in the following 
32.9 	subdivisions.
32.10 	(b) Notwithstanding Minnesota Statutes, 
32.11 	section 16A.285, the commissioner of labor 
32.12 	and industry must not allow transfers of 
32.13 	money appropriated in this section between 
32.14 	divisions or programs of the Department of 
32.15 	Labor and Industry.
32.16 	(c) Notwithstanding Minnesota Statutes, 
32.17 	section 16B.37, subdivision 4, the 
32.18 	commissioner of labor and industry must not 
32.19 	allow billing between divisions or programs 
32.20 	of amounts appropriated within the 
32.21 	Department of Labor and Industry, or 
32.22 	otherwise use any "Internal Billing 
32.23 	Expenditures" of amounts appropriated.
32.24 	(d) Notwithstanding Minnesota Statutes, 
32.25 	sections 16B.37, subdivision 4, and 471.59, 
32.26 	except for work performed by MN.IT under 
32.27 	Minnesota Statutes, chapter 16E, the 
32.28 	commissioner of labor and industry must not 
32.29 	allow billing or transfers between other 
32.30 	executive branch agencies or departments and 
32.31 	the Department of Labor and Industry.

32.32	Subd. 2.Workers' Compensation
 		14,782,000
		14,782,000
	
32.33 	(a) This appropriation is from the workers' 
32.34 	compensation fund.
33.1 	(b)(1) $3,000,000 each year is for workers' 
33.2 	compensation system upgrades. This amount 
33.3 	is available until June 30, 2021. This is a 
33.4 	onetime appropriation.
33.5 	(2) This appropriation includes funds for 
33.6 	information technology project services and 
33.7 	support subject to the provisions of Minnesota 
33.8 	Statutes, section 16E.0466. Any ongoing 
33.9 	information technology costs must be 
33.10 	incorporated into the service level agreement 
33.11 	and must be paid to the Office of MN.IT 
33.12 	Services by the commissioner of labor and 
33.13 	industry under the rates and mechanism 
33.14 	specified in that agreement.

33.15	Subd. 3.Labor Standards and Apprenticeship
 		3,134,000
		3,134,000

33.16	Appropriations by Fund
	
33.17	General
	1,327,000
	1,327,000
	
33.18
33.19	Workforce 
Development
	1,807,000
	1,807,000
	
33.20 	(a) $125,000 each year is from the general 
33.21 	fund for wage theft prevention under the 
33.22 	division of labor standards.
33.23 	(b) $100,000 each year is from the workforce 
33.24 	development fund for labor education and 
33.25 	advancement program grants under Minnesota 
33.26 	Statutes, section 178.11, to expand and 
33.27 	promote registered apprenticeship training for 
33.28 	minorities and women.
33.29 	(c) $300,000 each year is from the workforce 
33.30 	development fund for the PIPELINE program.
33.31 	(d) $200,000 each year is from the workforce 
33.32 	development fund for grants to the 
33.33 	Construction Careers Foundation for the 
33.34 	Helmets to Hardhats Minnesota initiative. 
33.35 	Grant funds must be used to recruit, retain, 
34.1 	assist, and support National Guard, reserve, 
34.2 	and active duty military members' and 
34.3 	veterans' participation into apprenticeship 
34.4 	programs registered with the Department of 
34.5 	Labor and Industry and connect them with 
34.6 	career training and employment in the building 
34.7 	and construction industry. The recruitment, 
34.8 	selection, employment, and training must be 
34.9 	without discrimination due to race, color, 
34.10 	creed, religion, national origin, sex, sexual 
34.11 	orientation, marital status, physical or mental 
34.12 	disability, receipt of public assistance, or age. 
34.13 	This is a onetime appropriation.
34.14 	(e) $1,029,000 each year is from the workforce 
34.15 	development fund for the apprenticeship 
34.16 	program under Minnesota Statutes, chapter 
34.17 	178.
34.18 	(f) $150,000 each year is from the workforce 
34.19 	development fund for prevailing wage 
34.20 	enforcement.

34.21	Subd. 4.Workplace Safety
 		4,154,000
		4,154,000
	
34.22 	This appropriation is from the workers' 
34.23 	compensation fund.

34.24	Subd. 5.General Support
 		6,239,000
		6,539,000

34.25	Appropriations by Fund
	
34.26
34.27	Workforce 
Development Fund
	200,000
	500,000
	
34.28
34.29	Workers' 
Compensation
	6,039,000
	6,039,000
	
34.30 	(a) Except as provided in paragraphs (b) and 
34.31 	(c), this appropriation is from the workers' 
34.32 	compensation fund.
34.33 	(b) $200,000 in fiscal year 2018 is from the 
34.34 	workforce development fund for the 
34.35 	commissioner of labor and industry to convene 
35.1 	and collaborate with stakeholders as provided 
35.2 	under Minnesota Statutes, section 175.46, 
35.3 	subdivision 3, and to develop youth skills 
35.4 	training competencies for approved 
35.5 	occupations. This is a onetime appropriation.
35.6 	(c) $500,000 in fiscal year 2019 is from the 
35.7 	workforce development fund to administer the 
35.8 	youth skills training program under Minnesota 
35.9 	Statutes, section 175.46. The commissioner 
35.10 	shall award up to five grants each year to local 
35.11 	partnerships located throughout the state, not 
35.12 	to exceed $100,000 per local partnership grant. 
35.13 	The commissioner may use a portion of this 
35.14 	appropriation for administration of the grant 
35.15 	program. The base amount for this program 
35.16 	is $500,000 each year beginning in fiscal year 
35.17 	2020.

35.18	Sec. 5. BUREAU OF MEDIATION SERVICES
 	$
	2,247,000
	$
	2,247,000
	
35.19 	(a) Notwithstanding Minnesota Statutes, 
35.20 	section 16A.285, the commissioner of 
35.21 	mediation services must not allow transfers 
35.22 	of money appropriated in this section between 
35.23 	divisions or programs of the Bureau of 
35.24 	Mediation Services.
35.25 	(b) Notwithstanding Minnesota Statutes, 
35.26 	section 16B.37, subdivision 4, the 
35.27 	commissioner of mediation services must not 
35.28 	allow billing between divisions or programs 
35.29 	within the Bureau of Mediation Services, or 
35.30 	otherwise use any "Internal Billing 
35.31 	Expenditures."
35.32 	(c) Notwithstanding Minnesota Statutes, 
35.33 	section 16B.37, subdivision 4, and Minnesota 
35.34 	Statutes, section 471.59, except for work 
36.1 	performed by MN.IT under Minnesota 
36.2 	Statutes, chapter 16E, the commissioner of 
36.3 	mediation services must not allow billing or 
36.4 	transfers between other executive branch 
36.5 	agencies or departments and the Bureau of 
36.6 	Mediation Services.
36.7 	(d) $394,000 each year is for the Office of 
36.8 	Collaboration and Dispute Resolution under 
36.9 	Minnesota Statutes, section 179.90.
36.10 	(e) $68,000 each year is from the general fund 
36.11 	for grants to area labor management 
36.12 	committees. Grants may be awarded for a 
36.13 	12-month period beginning July 1 each year. 
36.14 	Any unencumbered balance remaining at the 
36.15 	end of the first year does not cancel but is 
36.16 	available for the second year.

36.17
36.18	Sec. 6. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,913,000
	$
	1,913,000
	
36.19 	This appropriation is from the workers' 
36.20 	compensation fund.

36.21	Sec. 7. DEPARTMENT OF COMMERCE

36.22	Subdivision 1.Total Appropriation
 	$
	31,173,000
	$
	30,684,000

36.23	Appropriations by Fund
	
36.24	General
	27,160,000
	26,671,000
	
36.25	Special Revenue
	2,210,000
	2,210,000
	
36.26	Petroleum Tank
	1,052,000
	1,052,000
	
36.27
36.28	Workers' 
Compensation
	751,000
	751,000
	
36.29 	(a) The amounts that may be spent for each 
36.30 	purpose are specified in the following 
36.31 	subdivisions.
36.32 	(b) Notwithstanding Minnesota Statutes, 
36.33 	section 16A.285, the commissioner of 
37.1 	commerce must not allow transfers of money 
37.2 	appropriated in this section between divisions 
37.3 	or programs of the Department of Commerce.
37.4 	(c) Notwithstanding Minnesota Statutes, 
37.5 	section 16B.37, subdivision 4, the 
37.6 	commissioner of commerce must not allow 
37.7 	billing between divisions or programs within 
37.8 	the Department of Commerce, or otherwise 
37.9 	use any "Internal Billing Expenditures."
37.10 	(d) Notwithstanding Minnesota Statutes, 
37.11 	section 16B.37, subdivision 4, and Minnesota 
37.12 	Statutes, section 471.59, except for work 
37.13 	performed by MN.IT under Minnesota 
37.14 	Statutes, chapter 16E, the commissioner of 
37.15 	commerce must not allow billing or transfers 
37.16 	between other executive branch agencies or 
37.17 	departments and the Department of 
37.18 	Commerce.

37.19	Subd. 2.Financial Institutions
 		5,285,000
		5,285,000
	
37.20 	(a) $400,000 each year is for grants to Prepare 
37.21 	and Prosper for purposes of developing, 
37.22 	marketing, evaluating, and distributing a 
37.23 	financial services inclusion program that will 
37.24 	assist low-income and financially underserved 
37.25 	populations build savings, strengthen credit, 
37.26 	and provide services to assist them in being 
37.27 	more financially stable and secure. Grants in 
37.28 	fiscal year 2018 must be matched by nonstate 
37.29 	contributions. Money remaining after the first 
37.30 	year is available for the second year.

37.31
37.32	Subd. 3.Petroleum Tank Release Compensation 
Board
 		1,052,000
		1,052,000
	
37.33 	This appropriation is from the petroleum tank 
37.34 	fund.

37.35	Subd. 4.Administrative Services
 		7,203,000
		7,203,000
	
38.1 	(a) $375,000 each year is to fund Minnesota 
38.2 	Statutes, section 345.42, subdivision 1a.
38.3 	(b) $100,000 each year is for the support of 
38.4 	broadband development.
38.5 	(c) $33,000 each year is for rulemaking and 
38.6 	administration under Minnesota Statutes, 
38.7 	section 80A.461.

38.8	Subd. 5.Telecommunications
 		2,619,000
		2,330,000

38.9	Appropriations by Fund
	
38.10	General
	1,009,000
	720,000
	
38.11	Special Revenue
	1,610,000
	1,610,000
	
38.12 	(a) For the general fund appropriations under 
38.13 	this subdivision, the base amount in fiscal year 
38.14 	2020 is $576,000, and the base amount in 
38.15 	fiscal year 2021 is $461,000.
38.16 	(b) $1,610,000 each year is from the 
38.17 	telecommunication access Minnesota fund 
38.18 	account in the special revenue fund for the 
38.19 	following transfers. This appropriation is 
38.20 	added to the department's base.
38.21 	(1) $1,170,000 each year is to the 
38.22 	commissioner of human services to 
38.23 	supplement the ongoing operational expenses 
38.24 	of the Commission of Deaf, DeafBlind, and 
38.25 	Hard-of-Hearing Minnesotans;
38.26 	(2) $290,000 each year is to the chief 
38.27 	information officer for the purpose of 
38.28 	coordinating technology accessibility and 
38.29 	usability;
38.30 	(3) $100,000 each year is to the Legislative 
38.31 	Coordinating Commission for captioning of 
38.32 	legislative coverage. This transfer is subject 
38.33 	to Minnesota Statutes, section 16A.281; and
39.1 	(4) $50,000 each year is to the Office of 
39.2 	MN.IT Services for a consolidated access fund 
39.3 	to provide grants to other state agencies related 
39.4 	to accessibility of their Web-based services.

39.5	Subd. 6.Enforcement
 		5,299,000
		5,099,000

39.6	Appropriations by Fund
	
39.7	General
	5,101,000
	4,901,000
	
39.8
39.9	Workers' 
Compensation
	198,000
	198,000
	
39.10 	(a) $279,000 each year is for health care 
39.11 	enforcement.
39.12 	(b)(1) $200,000 in fiscal year 2018 is to create 
39.13 	and execute a statewide education and 
39.14 	outreach campaign to protect seniors, meaning 
39.15 	those 60 years of age or older, vulnerable 
39.16 	adults, as defined in Minnesota Statutes, 
39.17 	section 626.5572, subdivision 21, and their 
39.18 	caregivers from financial fraud and 
39.19 	exploitation.
39.20 	(2) The education and outreach campaign must 
39.21 	be statewide, and must include, but is not 
39.22 	limited to, the dissemination of information 
39.23 	through television, print, or other media, 
39.24 	training and outreach to senior living facilities, 
39.25 	and the creation of a senior fraud toolkit.
39.26 	(3) The commissioner of commerce shall 
39.27 	report by January 15, 2018, to the chairs and 
39.28 	ranking minority members of the committees 
39.29 	of the house of representatives and senate 
39.30 	having jurisdiction over commerce issues 
39.31 	regarding the results of the statewide education 
39.32 	and outreach campaign, and recommendations 
39.33 	for supporting ongoing efforts to prevent 
39.34 	financial fraud from occurring to, and the 
40.1 	financial exploitation of, seniors, vulnerable 
40.2 	adults, and their caregivers.
40.3 	(c) The revenue transferred in Minnesota 
40.4 	Statutes, section 297I.11, subdivision 2, to the 
40.5 	insurance fraud prevention account must be 
40.6 	used in part for compensation for two new 
40.7 	employees in the Commerce Fraud Bureau to 
40.8 	perform analytical duties. The new employees 
40.9 	must not be peace officers.

40.10	Subd. 7.Energy Resources
 		4,847,000
		4,847,000

40.11	Appropriations by Fund
	
40.12	General
	4,247,000
	4,247,000
	
40.13	Special Revenue
	600,000
	600,000
	
40.14 	(a) $150,000 each year is to remediate 
40.15 	vermiculate insulation from households that 
40.16 	are eligible for weatherization assistance under 
40.17 	Minnesota's weatherization assistance program 
40.18 	state plan under Minnesota Statutes, section 
40.19 	216C.264. Remediation must be done in 
40.20 	conjunction with federal weatherization 
40.21 	assistance program services.
40.22 	(b) $832,000 each year is for energy regulation 
40.23 	and planning unit staff.
40.24 	(c) $100,000 each year is from the clean 
40.25 	energy advancement fund (C-LEAF) account 
40.26 	in the special revenue fund established in 
40.27 	Minnesota Statutes, section 116C.779, 
40.28 	subdivision 1, to administer the "Made in 
40.29 	Minnesota" solar energy production incentive 
40.30 	program in Minnesota Statutes, section 
40.31 	216C.417. Any remaining unspent funds 
40.32 	cancel back to the C-LEAF account at the end 
40.33 	of the biennium.
41.1 	(d) $500,000 each year is from the clean 
41.2 	energy advancement fund (C-LEAF) account 
41.3 	in the special revenue fund established in 
41.4 	Minnesota Statutes, section 116C.779, 
41.5 	subdivision 1, for costs associated with any 
41.6 	third-party expert evaluation of a proposal 
41.7 	submitted in response to a request for proposal 
41.8 	to the C-LEAF advisory group under 
41.9 	Minnesota Statutes, section 116C.779, 
41.10 	subdivision 1, paragraph (k). No portion of 
41.11 	this appropriation may be expended or retained 
41.12 	by the commissioner of commerce. Any funds 
41.13 	appropriated under this paragraph that are 
41.14 	unexpended at the end of a fiscal year cancel 
41.15 	to the C-LEAF account

41.16	Subd. 8.Insurance
 		4,868,000
		4,868,000

41.17	Appropriations by Fund
	
41.18	General
	4,315,000
	4,315,000
	
41.19
41.20	Workers' 
Compensation
	553,000
	553,000
	
41.21 	(a) $642,000 each year is for health insurance 
41.22 	rate review staffing.
41.23 	(b) $412,000 each year is for actuarial work 
41.24 	to prepare for implementation of 
41.25 	principle-based reserves.

41.26	Sec. 8. PUBLIC UTILITIES COMMISSION
 	$
	7,242,000
	$
	6,930,000
	
41.27 	(a) For the general fund appropriations under 
41.28 	this section, the base amount in fiscal year 
41.29 	2020 is $6,774,000, and the base amount in 
41.30 	fiscal year 2021 is $6,649,000.
41.31 	(b) Notwithstanding Minnesota Statutes, 
41.32 	section 16A.285, the Public Utilities 
41.33 	Commission and its members must not allow 
41.34 	transfers of money appropriated in this section 
42.1 	between divisions or programs of the Public 
42.2 	Utilities Commission.
42.3 	(c) Notwithstanding Minnesota Statutes, 
42.4 	section 16B.37, subdivision 4, the Public 
42.5 	Utilities Commission and its members must 
42.6 	not allow billing between divisions or 
42.7 	programs within the Public Utilities 
42.8 	Commission, or otherwise use any "Internal 
42.9 	Billing Expenditures."
42.10 	(d) Notwithstanding Minnesota Statutes, 
42.11 	section 16B.37, subdivision 4, and section 
42.12 	471.59, or any other law to the contrary, 
42.13 	except for work performed by MN.IT, under 
42.14 	Minnesota Statutes, chapter 16E, the Public 
42.15 	Utilities Commission and its members must 
42.16 	not allow billing or transfers between other 
42.17 	executive branch agencies or departments and 
42.18 	the Public Utilities Commission.
42.19 	(e) $21,000 each year is for the purposes of 
42.20 	Minnesota Statutes, section 237.045.

42.21	Sec. 9. PUBLIC FACILITIES AUTHORITY
 	$
	900,000
	$
	0
	
42.22 	(a) $300,000 in fiscal year 2018 is for a grant 
42.23 	to the city of New Trier to replace water 
42.24 	infrastructure under Hogan Avenue, including 
42.25 	related road reconstruction, and to acquire land 
42.26 	for predesign, design, and construction of a 
42.27 	storm water pond that will be colocated with 
42.28 	the pond of the new subdivision. This 
42.29 	appropriation does not require a nonstate 
42.30 	contribution.
42.31 	(b) $600,000 in fiscal year 2018 is for a grant 
42.32 	to the Ramsey/Washington Recycling and 
42.33 	Energy Board to design, construct, and equip 
42.34 	capital improvements to the 
43.1 	Ramsey/Washington Recycling and Energy 
43.2 	Center in Newport.

43.3 	ARTICLE 2
43.4 	LABOR AND INDUSTRY

43.5 	Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
43.6 	175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.
43.7 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall convene 
43.8 	industry representatives, identify occupational competency standards for dual training, and 
43.9 	provide technical assistance to develop dual-training programs. The goal of dual training 
43.10 	is to provide employees of an employer with training to acquire competencies that the 
43.11 	employer requires. The competency standards shall be identified for employment in 
43.12 	occupations in advanced manufacturing, health care services, information technology, and 
43.13 	agriculture. Competency standards are not rules and are exempt from the rulemaking 
43.14 	provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do 
43.15 	not apply.
43.16 		Subd. 2.Definition; competency standards Definitions. For purposes of this section, 
43.17 	the following terms have the meanings given them:
43.18 	(1) "competency standards" means the specific knowledge and skills necessary for a 
43.19 	particular occupation.; and
43.20 	(2) "dual-training program" means an employment-based earn-as-you-learn program 
43.21 	where the trainee is employed by a participating employer and receives structured on-the-job 
43.22 	training and technical instruction in accordance with the competency standards.
43.23 		Subd. 3.Competency standards identification process. In identifying competency 
43.24 	standards, the commissioner shall consult with the commissioner of the Office of Higher 
43.25 	Education and the commissioner of employment and economic development and convene 
43.26 	recognized industry experts, representative employers, higher education institutions, 
43.27 	representatives of the disabled community, and representatives of labor to assist in identifying 
43.28 	credible competency standards. Competency standards must be consistent with, to the extent 
43.29 	available and practical, recognized international and national standards.
43.30 		Subd. 4.Duties. The commissioner shall:
43.31 	(1) convene industry representatives to identify, develop, and implement dual-training 
43.32 	programs;
44.1 	(2) identify competency standards for entry level entry-level and higher skill levels;
44.2 	(2) (3) verify the competency standards and skill levels and their transferability by subject 
44.3 	matter expert representatives of each respective industry;
44.4 	(3) (4) develop models for Minnesota educational institutions to engage in providing 
44.5 	education and training to meet the competency standards established;
44.6 	(4) (5) encourage participation by employers and labor in the competency standard 
44.7 	identification process for occupations in their industry; and
44.8 	(5) (6) align dual training competency standards dual-training programs with other 
44.9 	workforce initiatives.; and
44.10 	(7) provide technical assistance to develop dual-training programs.
44.11 		Subd. 5.Notification. The commissioner must communicate identified competency 
44.12 	standards to the commissioner of the Office of Higher Education for the purpose of the dual 
44.13 	training dual-training competency grant program under section 136A.246. The commissioner 
44.14 	of labor and industry shall maintain the competency standards on the department's Web 
44.15 	site.

44.16 	Sec. 2. [175.46] YOUTH SKILLS TRAINING PROGRAM.
44.17 		Subdivision 1.Program established; grants authorized. The commissioner shall 
44.18 	approve youth skills training programs established for the purpose of providing work-based 
44.19 	skills training for student learners ages 16 and older. The commissioner shall award grants 
44.20 	to local partnerships for the implementation and coordination of local youth skills training 
44.21 	programs as provided in this section.
44.22 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
44.23 	the meanings given.
44.24 	(b) "School district" means a school district or charter school.
44.25 	(c) "Local partnership" means a school district, nonpublic school, intermediate school 
44.26 	district, or postsecondary institution, in partnership with other school districts, nonpublic 
44.27 	schools, intermediate school districts, postsecondary institutions, workforce development 
44.28 	authorities, economic development authorities, nonprofit organizations, labor unions, or 
44.29 	individuals who have an agreement with one or more local employers to be responsible for 
44.30 	implementing and coordinating a local youth skills training program.
44.31 	(d) "Student learner" means a student who is both enrolled in a course of study at a public 
44.32 	or nonpublic school to obtain related instruction for academic credit and is employed under 
45.1 	a written agreement to obtain on-the-job skills training under a youth skills training program 
45.2 	approved under this section.
45.3 	(e) "Commissioner" means the commissioner of labor and industry.
45.4 		Subd. 3.Duties. (a) The commissioner shall:
45.5 	(1) approve youth skills training programs in high-growth, high-demand occupations 
45.6 	that provide:
45.7 	(i) that the work of the student learner in the occupations declared particularly hazardous 
45.8 	shall be incidental to the training;
45.9 	(ii) that the work shall be intermittent and for short periods of time, and under the direct 
45.10 	and close supervision of a qualified and experienced person;
45.11 	(iii) that safety instruction shall be provided to the student learner and may be given by 
45.12 	the school and correlated by the employer with on-the-job training;
45.13 	(iv) a schedule of organized and progressive work processes to be performed on the job;
45.14 	(v) a schedule of wage rates in compliance with section 177.24; and
45.15 	(vi) whether the student learner will obtain secondary school academic credit, 
45.16 	postsecondary credit, or both, for the training program;
45.17 	(2) approve occupations and maintain a list of approved occupations for programs under 
45.18 	this section;
45.19 	(3) issue requests for proposals for grants;
45.20 	(4) work with individuals representing industry and labor to develop new youth skills 
45.21 	training programs;
45.22 	(5) develop model program guides;
45.23 	(6) monitor youth skills training programs;
45.24 	(7) provide technical assistance to local partnership grantees;
45.25 	(8) work with providers to identify paths for receiving postsecondary credit for 
45.26 	participation in the youth skills training program; and
45.27 	(9) approve other activities as necessary to implement the program.
45.28 	(b) The commissioner shall collaborate with stakeholders, including, but not limited to, 
45.29 	representatives of secondary school institutions, career and technical education instructors, 
45.30 	postsecondary institutions, businesses, and labor, in developing youth skills training 
46.1 	programs, and identifying and approving occupations and competencies for youth skills 
46.2 	training programs.
46.3 		Subd. 4.Training agreement. Each student learner shall sign a written training agreement 
46.4 	on a form prescribed by the commissioner. Each agreement shall contain the name of the 
46.5 	student learner, and be signed by the employer, the school coordinator or administrator, and 
46.6 	the student learner, or if the student learner is a minor, by the student's parent or legal 
46.7 	guardian. Copies of each agreement shall be kept on file by both the school and the employer.
46.8 		Subd. 5.Program approval. The commissioner may grant exemptions from the 
46.9 	provisions of chapter 181A for student learners participating in youth skills training programs 
46.10 	approved by the commissioner under this section. The approval of a youth skills training 
46.11 	program will be reviewed annually. The approval of a youth skills training program may 
46.12 	be revoked at any time if the commissioner finds that:
46.13 	(1) all provisions of subdivision 3 have not been met in the previous year; or
46.14 	(2) reasonable precautions have not been observed for the safety of minors.
46.15 	The commissioner shall maintain and annually update a list of occupations and tasks suitable 
46.16 	for student learners in compliance with federal law.
46.17 		Subd. 6.Interactions with education finance. (a) For the purpose of computing state 
46.18 	aids for the enrolling school district, the hours a student learner participates in a youth skills 
46.19 	training program under this section must be counted in the student's hours of average daily 
46.20 	membership under section 126C.05.
46.21 	(b) Educational expenses for a participating student learner must be included in the 
46.22 	enrolling district's career and technical revenue as provided under section 124D.4531.
46.23 		Subd. 7.Academic credit. A school district may grant academic credit to student learners 
46.24 	participating in youth skills training programs under this section in accordance with local 
46.25 	requirements.
46.26 		Subd. 8.Postsecondary credit. A postsecondary institution may award postsecondary 
46.27 	credit to a student learner who successfully completes a youth skills training program.
46.28 		Subd. 9.Work-based learning program. A youth skills training program shall qualify 
46.29 	as a work-based learning program if it meets requirements for a career and technical education 
46.30 	program and is supervised by a qualified teacher with appropriate licensure for a work-based 
46.31 	learning teacher-coordinator.
47.1 		Subd. 10.School coordinator. Unless otherwise required for a work-based learning 
47.2 	program, a youth skills training program may be supervised by a qualified teacher or by an 
47.3 	administrator as determined by the school district.
47.4 		Subd. 11.Other apprenticeship programs. (a) This section shall not affect programs 
47.5 	under section 124D.47.
47.6 	(b) A registered apprenticeship program governed by chapter 178 may grant credit 
47.7 	toward the completion of a registered apprenticeship for the successful completion of a 
47.8 	youth skills training program under this section.
47.9 		Subd. 12.Grant applications. (a) Applications for grants must be made to the 
47.10 	commissioner on a form provided by the commissioner.
47.11 	(b) A local partnership may apply for a grant and shall include in its grant application:
47.12 	(1) the identity of each school district, public agency, nonprofit organization, or individual 
47.13 	who is a participant in the local partnership;
47.14 	(2) the identity of each employer who is a participant in the local partnership and the 
47.15 	amount of matching funds provided by each employer, if any;
47.16 	(3) a plan to accomplish the implementation and coordination of activities specified in 
47.17 	this subdivision; and
47.18 	(4) the identity of a fiscal agent responsible for receiving, managing, and accounting for 
47.19 	the grant.
47.20 		Subd. 13.Grant awards. (a) A local partnership awarded a grant under this section 
47.21 	must use the grant award for any of the following implementation and coordination activities:
47.22 	(1) recruiting additional employers to provide on-the-job training and supervision for 
47.23 	student learners and providing technical assistance to those employers;
47.24 	(2) recruiting students to participate in the local youth skills training program, monitoring 
47.25 	the progress of student learners participating in the program, and monitoring program 
47.26 	outcomes;
47.27 	(3) coordinating youth skills training activities within participating school districts and 
47.28 	among participating school districts, postsecondary institutions, and employers;
47.29 	(4) coordinating academic, vocational and occupational learning, school-based and 
47.30 	work-based learning, and secondary and postsecondary education for participants in the 
47.31 	local youth skills training program;
48.1 	(5) coordinating transportation for student learners participating in the local youth skills 
48.2 	training program; and
48.3 	(6) any other implementation or coordination activity that the commissioner may direct 
48.4 	or permit the local partnership to perform.
48.5 	(b) Grant awards may not be used to directly or indirectly pay the wages of a student 
48.6 	learner.
48.7 		Subd. 14.Outcomes. The following outcomes are expected of a local youth skills training 
48.8 	program:
48.9 	(1) at least 80 percent of the student learners who participate in a youth skills training 
48.10 	program receive a high school diploma when eligible upon completion of the training 
48.11 	program; and
48.12 	(2) at least 60 percent of the student learners who participate in a youth skills training 
48.13 	program receive a recognized credential upon completion of the training program.
48.14 		Subd. 15.Reporting. (a) By February 1, 2019, and annually thereafter, the commissioner 
48.15 	shall report on the activity and outcomes of the program for the preceding fiscal year to the 
48.16 	chairs of the legislative committees with jurisdiction over jobs and economic growth policy 
48.17 	and finance. At a minimum, the report must include:
48.18 	(1) the number of student learners who commenced the training program and the number 
48.19 	who completed the training program; and
48.20 	(2) recommendations, if any, for changes to the program.
48.21 	(b) The initial report shall include a detailed description of the differences between the 
48.22 	state and federal systems in child safety standards.

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

49.4		License Classification
	License Duration
		
49.5			1 year
	2 years
	
49.6		Entry level
	$10
	$20
	
49.7		Journeyworker
	$20
	$40
	
49.8		Master
	$40
	$80
	
49.9		Business
		$180
	
49.10 	(d) If there is a continuing education requirement for renewal of the license, then a 
49.11 	continuing education fee must be included in the renewal license fee. The continuing 
49.12 	education fee for all license classifications shall be: $10 if the renewal license duration is 
49.13 	one year; and $20 if the renewal license duration is two years.
49.14 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, 
49.15 	then a board fee must be included in the license fee and the renewal license fee. The board 
49.16 	fee for all license classifications shall be: $4 if the license duration is one year; and $8 if 
49.17 	the license duration is two years.
49.18 	(f) If the application is for the renewal of a license issued under sections 326B.802 to 
49.19 	326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 
49.20 	3, and any additional assessment required under section 326B.89, subdivision 16, must be 
49.21 	included in the license renewal fee.
49.22 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
49.23 	July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:

49.24		License Classification
	License Duration
		
49.25			1 year
	2 years
	
49.26		Entry level
	$10
	$20
	
49.2849.27
		Journeyworker
	$15
	$35
$30
	
49.3049.29
		Master
	$30
	$75
$60
	
49.3249.31
		Business
		$160
$120
	
49.33 	If there is a continuing education requirement for renewal of the license, then a continuing 
49.34 	education fee must be included in the renewal license fee. The continuing education fee for 
49.35 	all license classifications shall be $5.

50.1 	Sec. 4. [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO 
50.2 	CODE.
50.3 		Subdivision 1.Definition. For purposes of this section, "place of public accommodation" 
50.4 	means a publicly or privately owned facility that is designed for occupancy by 200 or more 
50.5 	people and includes a sports or entertainment arena, stadium, theater, community or 
50.6 	convention hall, special event center, indoor amusement facility or water park, or swimming 
50.7 	pool.
50.8 		Subd. 2.Application.  Construction, additions, and alterations to a place of public 
50.9 	accommodation must be designed and constructed to comply with the State Building Code.
50.10 		Subd. 3.Enforcement. In a municipality that has not adopted the code by ordinance 
50.11 	under section 326B.121, subdivision 2, the commissioner shall enforce this section in 
50.12 	accordance with section 326B.107, subdivision 1.
50.13 		Subd. 4.Fire protection systems. If fire protection systems regulated by chapter 299M 
50.14 	are required in a place of public accommodation, then those plan reviews and inspections 
50.15 	shall be conducted by the state fire marshal.

50.16 	Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
50.17 		Subdivision 1.Building permits. (a) Fees for building permits submitted as required 
50.18 	in section 326B.106 326B.107 include:
50.19 	(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; 
50.20 	and
50.21 	(2) the surcharge required by section 326B.148.
50.22 	(b) The total valuation and fee schedule is:
50.23 	(1) $1 to $500, $29.50 $21;
50.24 	(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100 
50.25 	or fraction thereof, to and including $2,000;
50.26 	(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each 
50.27 	additional $1,000 or fraction thereof, to and including $25,000;
50.28 	(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each 
50.29 	additional $1,000 or fraction thereof, to and including $50,000;
50.30 	(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for 
50.31 	each additional $1,000 or fraction thereof, to and including $100,000;
51.1 	(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for 
51.2 	each additional $1,000 or fraction thereof, to and including $500,000;
51.3 	(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
51.4 	for each additional $1,000 or fraction thereof, to and including $1,000,000; and
51.5 	(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
51.6 	for each additional $1,000 or fraction thereof.
51.7 	(c) Other inspections and fees are:
51.8 	(1) inspections outside of normal business hours (minimum charge two hours), $63.25 
51.9 	per hour;
51.10 	(2) reinspection fees, $63.25 per hour;
51.11 	(3) inspections for which no fee is specifically indicated (minimum charge one-half 
51.12 	hour), $63.25 per hour; and
51.13 	(4) additional plan review required by changes, additions, or revisions to approved plans 
51.14 	(minimum charge one-half hour), $63.25 per hour.
51.15 	(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, 
51.16 	then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, 
51.17 	hourly wages, and fringe benefits of the employees involved.

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

51.20 	Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
51.21 	read:
51.22 		Subd. 16.Wind electric systems. (a) The inspection fee for the installation of a wind 
51.23 	turbine is:
51.24 	(1) zero watts to and including 100,000 watts, $80;
51.25 	(2) 100,001 watts to and including 500,000 watts, $105;
51.26 	(3) 500,001 watts to and including 1,000,000 watts, $120;
51.27 	(4) 1,000,001 watts to and including 1,500,000 watts, $125;
51.28 	(5) 1,500,001 watts to and including 2,000,000 watts, $130;
51.29 	(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
51.30 	(7) 3,000,001 watts and larger, $160.
52.1 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
52.2 	current energy output of one individual wind turbine.

52.3 	Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
52.4 	read:
52.5 		Subd. 17.Solar photovoltaic systems. (a) The inspection fee for the installation of a 
52.6 	solar photovoltaic system is:
52.7 	(1) zero watts to and including 5,000 watts, $60;
52.8 	(2) 5,001 watts to and including 10,000 watts, $100;
52.9 	(3) 10,001 watts to and including 20,000 watts, $150;
52.10 	(4) 20,001 watts to and including 30,000 watts, $200;
52.11 	(5) 30,001 watts to and including 40,000 watts, $250;
52.12 	(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional 
52.13 	10,000 watts over 40,000 watts;
52.14 	(7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts 
52.15 	over 1,000,000 watts; and
52.16 	(8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over 
52.17 	5,000,000 watts.
52.18 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
52.19 	current energy output of the solar photovoltaic system.

52.20 	Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:
52.21 		Subd. 2.Powers; duties; administrative support. (a) The board shall have the power 
52.22 	to:
52.23 	(1) elect its chair, vice-chair, and secretary;
52.24 	(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 
52.25 	and containing such other provisions as may be useful and necessary for the efficient conduct 
52.26 	of the business of the board;
52.27 	(3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code 
52.28 	amendments thereto. The Plumbing Code shall include the minimum standards described 
52.29 	in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the 
53.1 	Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in 
53.2 	subdivision 6, paragraphs (b), (c), and (d);
53.3 	(4) review requests for final interpretations and issue final interpretations as provided 
53.4 	in section 326B.127, subdivision 5;
53.5 	(5) adopt rules that regulate the licensure, certification, or registration of plumbing 
53.6 	contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers, 
53.7 	restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and 
53.8 	testers, water conditioning contractors, and water conditioning installers, and other persons 
53.9 	engaged in the design, installation, and alteration of plumbing systems or engaged in or 
53.10 	working at the business of water conditioning installation or service, or engaged in or 
53.11 	working at the business of medical gas system installation, maintenance, or repair, except 
53.12 	for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall 
53.13 	adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) 
53.14 	and (f);
53.15 	(6) adopt rules that regulate continuing education for individuals licensed as master 
53.16 	plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers, 
53.17 	registered unlicensed individuals, water conditioning contractors masters, and water 
53.18 	conditioning installers journeymen, and for individuals certified under sections 326B.437
53.19 	and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in 
53.20 	subdivision 6, paragraphs (e) and (f);
53.21 	(7) refer complaints or other communications to the commissioner, whether oral or 
53.22 	written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 
53.23 	order that the commissioner has the authority to enforce pertaining to code compliance, 
53.24 	licensure, or an offering to perform or performance of unlicensed plumbing services;
53.25 	(8) approve per diem and expenses deemed necessary for its members as provided in 
53.26 	subdivision 3;
53.27 	(9) approve license reciprocity agreements;
53.28 	(10) select from its members individuals to serve on any other state advisory council, 
53.29 	board, or committee; and
53.30 	(11) recommend the fees for licenses, registrations, and certifications.
53.31 	Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 
53.32 	Board of High Pressure Piping Systems, the commissioner of labor and industry shall 
54.1 	administer and enforce the provisions of this chapter and any rules promulgated pursuant 
54.2 	thereto.
54.3 	(b) The board shall comply with section 15.0597, subdivisions 2 and 4.
54.4 	(c) The commissioner shall coordinate the board's rulemaking and recommendations 
54.5 	with the recommendations and rulemaking conducted by the other boards created pursuant 
54.6 	to this chapter. The commissioner shall provide staff support to the board. The support 
54.7 	includes professional, legal, technical, and clerical staff necessary to perform rulemaking 
54.8 	and other duties assigned to the board. The commissioner of labor and industry shall supply 
54.9 	necessary office space and supplies to assist the board in its duties.

54.10 	Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:
54.11 		Subd. 3.Water conditioning installation. "Water conditioning installation" means the 
54.12 	installation of appliances, appurtenances, and fixtures designed to treat water so as to alter, 
54.13 	modify, add or remove mineral, chemical or bacterial content, said installation to be made 
54.14 	in a water distribution system serving:
54.15 	(1) a single family residential unit, which has been initially established by a licensed 
54.16 	plumber, and does not involve a direct connection without an air gap to a soil or waste pipe.; 
54.17 	or
54.18 	(2) a multifamily or nonresidential building, where the plumbing installation has been 
54.19 	initially established by a licensed plumber. Isolation valves shall be required for all water 
54.20 	conditioning installations and shall be readily accessible. Water conditioning installation 
54.21 	does not include:
54.22 	(i) a valve that allows isolation of the water conditioning installation;
54.23 	(ii) piping greater than two-inch nominal pipe size; or
54.24 	(iii) a direct connection without an air gap to a soil or waste pipe.

54.25 	Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
54.26 	to read:
54.27 		Subd. 5.Direct supervision. "Direct supervision," with respect to direct supervision of 
54.28 	a registered unlicensed individual, means that:
54.29 	(1) at all times while the registered unlicensed individual is performing water conditioning 
54.30 	installation work, a direct supervisor is present at the location where the registered unlicensed 
54.31 	individual is working;
55.1 	(2) the direct supervisor is physically present and immediately available to the registered 
55.2 	unlicensed individual at all times for assistance and direction;
55.3 	(3) any form of electronic supervision does not meet the requirement of being physically 
55.4 	present;
55.5 	(4) the direct supervisor reviews the water conditioning installation work performed by 
55.6 	the registered unlicensed individual before the water conditioning installation is operated; 
55.7 	and
55.8 	(5) the direct supervisor determines that all water conditioning installation work 
55.9 	performed by the registered unlicensed individual is performed in compliance with sections 
55.10 	326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, 
55.11 	and all orders issued under section 326B.082.

55.12 	Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
55.13 	to read:
55.14 		Subd. 6.Direct supervisor. "Direct supervisor" means a master plumber, journeyman 
55.15 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
55.16 	master, or water conditioning journeyman responsible for providing direct supervision of 
55.17 	a registered unlicensed individual.

55.18 	Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:
55.19 		Subd. 2.Qualifications for licensing. (a) A water conditioning master license shall be 
55.20 	issued only to an individual who has demonstrated skill in planning, superintending, and
55.21 	servicing, and installing water conditioning installations, and has successfully passed the 
55.22 	examination for water conditioning masters. A water conditioning journeyman license shall 
55.23 	only be issued to an individual other than a water conditioning master who has demonstrated 
55.24 	practical knowledge of water conditioning installation, and has successfully passed the 
55.25 	examination for water conditioning journeymen. A water conditioning journeyman must 
55.26 	successfully pass the examination for water conditioning masters before being licensed as 
55.27 	a water conditioning master.
55.28 	(b) Each water conditioning contractor must designate a responsible licensed master 
55.29 	plumber or a responsible licensed water conditioning master, who shall be responsible for 
55.30 	the performance of all water conditioning installation and servicing in accordance with the 
55.31 	requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 
55.32 	326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 
56.1 	the water conditioning contractor is an individual or sole proprietorship, the responsible 
56.2 	licensed master must be the individual, proprietor, or managing employee. If the water 
56.3 	conditioning contractor is a partnership, the responsible licensed master must be a general 
56.4 	partner or managing employee. If the water conditioning contractor is a limited liability 
56.5 	company, the responsible licensed master must be a chief manager or managing employee. 
56.6 	If the water conditioning contractor is a corporation, the responsible licensed master must 
56.7 	be an officer or managing employee. If the responsible licensed master is a managing 
56.8 	employee, the responsible licensed master must be actively engaged in performing water 
56.9 	conditioning work on behalf of the water conditioning contractor and cannot be employed 
56.10 	in any capacity as a water conditioning master or water conditioning journeyman for any 
56.11 	other water conditioning contractor. An individual must not be the responsible licensed 
56.12 	master for more than one water conditioning contractor.
56.13 	(c) All applications and renewals for water conditioning contractor licenses shall include 
56.14 	a verified statement that the applicant or licensee has complied with paragraph (b).
56.15 	(d) Each application and renewal for a water conditioning master license, water 
56.16 	conditioning journeyman license, or a water conditioning contractor license shall be 
56.17 	accompanied by all fees required by section 326B.092.

56.18 	Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:
56.19 		Subd. 4.Plumber's apprentices. (a) A plumber's apprentice who is registered under 
56.20 	section 326B.47 is authorized to assist in water conditioning installation and water 
56.21 	conditioning servicing only while under the direct supervision of a master plumber, 
56.22 	journeyman plumber, restricted master plumber, restricted journeyman plumber, water 
56.23 	conditioning master, or water conditioning journeyman. The master or journeyman is 
56.24 	responsible for ensuring that all water conditioning work performed by the plumber's 
56.25 	apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 
56.26 	326B.59. The supervising master or journeyman must be licensed and must be employed 
56.27 	by the same employer as the plumber's apprentice. Licensed individuals shall not permit 
56.28 	plumber's apprentices to perform water conditioning work except under the direct supervision 
56.29 	of an individual actually licensed to perform such work. Plumber's apprentices shall not 
56.30 	supervise the performance of plumbing work or make assignments of plumbing work to 
56.31 	unlicensed individuals.
56.32 	(b) Water conditioning contractors employing plumber's apprentices to perform water 
56.33 	conditioning work shall maintain records establishing compliance with this subdivision that 
57.1 	shall identify all plumber's apprentices performing water conditioning work, and shall permit 
57.2 	the department to examine and copy all such records.

57.3 	Sec. 14. [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
57.4 		Subdivision 1.Registration; supervision; records. (a) All unlicensed individuals 
57.5 	engaged in water conditioning installation must be registered under subdivision 3.
57.6 	(b) A registered unlicensed individual is authorized to assist in water conditioning 
57.7 	installations in a single family residential unit only when a master plumber, journeyman 
57.8 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
57.9 	master, or water conditioning journeyman is available and responsible for ensuring that all 
57.10 	water conditioning installation work performed by the unlicensed individual complies with 
57.11 	the applicable provisions of the plumbing and water conditioning codes and rules adopted 
57.12 	pursuant to such codes. For all other water conditioning installation work, the registered 
57.13 	unlicensed individual must be under the direct supervision of a responsible licensed water 
57.14 	conditioning master.
57.15 	(c) Water conditioning contractors employing registered unlicensed individuals to perform 
57.16 	water conditioning installation work shall maintain records establishing compliance with 
57.17 	this subdivision that shall identify all unlicensed individuals performing water conditioning 
57.18 	installations, and shall permit the department to examine and copy all such records.
57.19 		Subd. 2.Journeyman exam. A registered unlicensed individual who has completed 
57.20 	875 hours of practical water conditioning installation, servicing, and training is eligible to 
57.21 	take the water conditioning journeyman examination. Up to 100 hours of practical water 
57.22 	conditioning installation and servicing experience prior to becoming a registered unlicensed 
57.23 	individual may be applied to the practical experience requirement. However, none of this 
57.24 	practical experience may be applied if the unlicensed individual did not have any practical 
57.25 	experience in the 12-month period immediately prior to becoming a registered unlicensed 
57.26 	individual.
57.27 		Subd. 3.Registration, renewals, and fees. An unlicensed individual may register by 
57.28 	completing and submitting to the commissioner an application form provided by the 
57.29 	commissioner, with all fees required by section 326B.58. A completed application form 
57.30 	must state the date, the individual's age, schooling, previous experience and employer, and 
57.31 	other information required by the commissioner. The plumbing board may prescribe rules, 
57.32 	not inconsistent with this section, for the registration of unlicensed individuals. Applications 
57.33 	for initial registration may be submitted at any time. Registration must be renewed annually 
57.34 	and shall be for the period from July 1 of each year to June 30 of the following year.

58.1 	Sec. 15. Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:
58.2 		Subd. 3.Prohibition. Except as provided in subdivision 6, no persons required to be 
58.3 	licensed by subdivision 1 may act or hold themselves out as a residential building contractor, 
58.4 	residential remodeler, residential roofer, or manufactured home installer for compensation 
58.5 	without a license issued by the commissioner. A person who conducts unlicensed residential 
58.6 	building contractor activity, residential remodeler activity, or residential roofer activity is 
58.7 	guilty of a gross misdemeanor.

58.8 	Sec. 16. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
58.9 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
58.10 	the meanings given them.
58.11 	(b) "Gross annual receipts" means the total amount derived from residential contracting 
58.12 	or residential remodeling activities, regardless of where the activities are performed, and 
58.13 	must not be reduced by costs of goods sold, expenses, losses, or any other amount.
58.14 	(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
58.15 	(d) "Residential real estate" means a new or existing building constructed for habitation 
58.16 	by one to four families, and includes detached garages intended for storage of vehicles 
58.17 	associated with the residential real estate.
58.18 	(e) "Fund" means the contractor recovery fund.
58.19 	(f) "Owner" when used in connection with real property, means a person who has any 
58.20 	legal or equitable interest in real property and includes a condominium or townhome 
58.21 	association that owns common property located in a condominium building or townhome 
58.22 	building or an associated detached garage. Owner does not include any real estate developer 
58.23 	or any owner using, or intending to use, the property for a business purpose and not as 
58.24 	owner-occupied residential real estate.

58.25 	Sec. 17. Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:
58.26 		Subd. 5.Payment limitations.  The commissioner shall not pay compensation from the 
58.27 	fund to an owner or a lessee in an amount greater than $75,000 per licensee. The 
58.28 	commissioner shall not pay compensation from the fund to owners and lessees in an amount 
58.29 	that totals more than $150,000 $300,000 per licensee. The commissioner shall only pay 
58.30 	compensation from the fund for a final judgment that is based on a contract directly between 
58.31 	the licensee and the homeowner or lessee that was entered into prior to the cause of action 
58.32 	and that requires licensure as a residential building contractor or residential remodeler.

59.1 	Sec. 18. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is 
59.2 	amended to read:

59.3	Subd. 2.Workers' Compensation
 		15,226,000
		17,782,000
	
59.4 	This appropriation is from the workers' 
59.5 	compensation fund.
59.6 	$4,000,000 in fiscal year 2016 and $6,000,000 
59.7 	in fiscal year 2017 are for workers' 
59.8 	compensation system upgrades and are 
59.9 	available through June 30, 2021. The base 
59.10 	appropriation for this purpose is $3,000,000 
59.11 	in fiscal year 2018 and $3,000,000 in fiscal 
59.12 	year 2019. The base appropriation for fiscal 
59.13 	year 2020 and beyond is zero.
59.14 	This appropriation includes funds for 
59.15 	information technology project services and 
59.16 	support subject to the provisions of Minnesota 
59.17 	Statutes, section 16E.0466. Any ongoing 
59.18 	information technology costs will be 
59.19 	incorporated into the service level agreement 
59.20 	and will be paid to the Office of MN.IT 
59.21 	Services by the commissioner of labor and 
59.22 	industry under the rates and mechanism 
59.23 	specified in that agreement.

59.24 	Sec. 19. REPEALER.
 59.25 	Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

59.26 	ARTICLE 3
59.27 	EMPLOYMENT AND ECONOMIC DEVELOPMENT

59.28 	Section 1. [116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND.
59.29 	(a) A rural policy and development center fund is established as an account in the special 
59.30 	revenue fund in the state treasury. The commissioner of management and budget shall credit 
59.31 	to the account the amounts authorized under this section and appropriations and transfers 
59.32 	to the account. The State Board of Investment shall ensure that account money is invested 
60.1 	under section 11A.24. All money earned by the account must be credited to the account. 
60.2 	The principal of the account and any unexpended earnings must be invested and reinvested 
60.3 	by the State Board of Investment.
60.4 	(b) Gifts and donations, including land or interests in land, may be made to the account. 
60.5 	Noncash gifts and donations must be disposed of for cash as soon as the board prudently 
60.6 	can maximize the value of the gift or donation. Gifts and donations of marketable securities 
60.7 	may be held or be disposed of for cash at the option of the board. The cash receipts of gifts 
60.8 	and donations of cash or capital assets and marketable securities disposed of for cash must 
60.9 	be credited immediately to the principal of the account. The value of marketable securities 
60.10 	at the time the gift or donation is made must be credited to the principal of the account and 
60.11 	any earnings from the marketable securities are earnings of the account. The earnings in 
60.12 	the account are annually appropriated to the board of the Center for Rural Policy and 
60.13 	Development to carry out the duties of the center.

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

60.15 	Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:
60.16 		Subd. 2.Administration.  (a) Except as otherwise provided in this section, the 
60.17 	commissioner shall administer the fund as part of the Small Cities Development Block 
60.18 	Grant Program and funds shall be made available to local communities and recognized 
60.19 	Indian tribal governments in accordance with the rules adopted for economic development 
60.20 	grants in the small cities community development block grant program. All units of general 
60.21 	purpose local government are eligible applicants for Minnesota investment funds. The 
60.22 	commissioner may provide forgivable loans directly to a private enterprise and not require 
60.23 	a local community or recognized Indian tribal government application other than a resolution 
60.24 	supporting the assistance.
60.25 	(b) Eligible applicants for the state-funded portion of the fund also include development 
60.26 	authorities as defined in section 116J.552, subdivision 4, provided that the governing body 
60.27 	of the municipality approves, by resolution, the application of the development authority. 
60.28 	A local government entity may receive more than one award in a fiscal year. The 
60.29 	commissioner may also make funds available within the department for eligible expenditures 
60.30 	under subdivision 3, clause (2).
60.31 	(c) A home rule charter or statutory city, county, or town may loan or grant money 
60.32 	received from repayment of funds awarded under this section to a regional development 
60.33 	commission, other regional entity, or statewide community capital fund as determined by 
61.1 	the commissioner, to capitalize or to provide the local match required for capitalization of 
61.2 	a regional or statewide revolving loan fund.

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

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

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

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

66.13 	Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:
66.14 		Subd. 6.Job creation award. (a) A qualified Minnesota job creation fund business is 
66.15 	eligible for an annual award for each new job created and maintained by the business using 
66.16 	the following schedule: $1,000 for each job position paying annual wages at least $26,000 
66.17 	but less than $35,000; $2,000 for each job position paying at least $35,000 but less than 
66.18 	$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals 
66.19 	under the agreement provided under subdivision 1. These awards are increased by $1,000 
66.20 	if the business is located outside the metropolitan area as defined in section 200.02, 
66.21 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
66.22 	women, or persons with a disability.
66.23 	(b) The job creation award schedule must be adjusted annually using the percentage 
66.24 	increase in the federal poverty level for a family of four.
66.25 	(c) Minnesota job creation fund businesses seeking an award credit provided under 
66.26 	subdivision 4 must submit forms and applications to the Department of Employment and 
66.27 	Economic Development as prescribed by the commissioner.

66.28 	Sec. 8. Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:
66.29 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
66.30 	the meanings given them in this subdivision.
66.31 	(b) "Commissioner" means the commissioner of employment and economic development.
67.1 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time 
67.2 	employment ceased or was working in the state at the time employment ceased and:
67.3 	(1) has been permanently separated or has received a notice of permanent separation 
67.4 	from public or private sector employment and is eligible for or has exhausted entitlement 
67.5 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
67.6 	(2) has been long-term unemployed and has limited opportunities for employment or 
67.7 	reemployment in the same or a similar occupation in the area in which the individual resides, 
67.8 	including older individuals who may have substantial barriers to employment by reason of 
67.9 	age;
67.10 	(3) has been terminated or has received a notice of termination of employment as a result 
67.11 	of a plant closing or a substantial layoff at a plant, facility, or enterprise;
67.12 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
67.13 	result of general economic conditions in the community in which the individual resides or 
67.14 	because of natural disasters;
67.15 	(5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
67.16 	(6) (5) is a veteran as defined by section 197.447, has been discharged or released from 
67.17 	active duty under honorable conditions within the last 36 months, and (i) is unemployed or 
67.18 	(ii) is employed in a job verified to be below the skill level and earning capacity of the 
67.19 	veteran;
67.20 	(7) (6) is an individual determined by the United States Department of Labor to be 
67.21 	covered by trade adjustment assistance under United States Code, title 19, sections 2271 to 
67.22 	2331, as amended; or
67.23 	(8) (7) is a displaced homemaker. A "displaced homemaker" is an individual who has 
67.24 	spent a substantial number of years in the home providing homemaking service and (i) has 
67.25 	been dependent upon the financial support of another; and now due to divorce, separation, 
67.26 	death, or disability of that person, must find employment to self support; or (ii) derived the 
67.27 	substantial share of support from public assistance on account of dependents in the home 
67.28 	and no longer receives such support. To be eligible under this clause, the support must have 
67.29 	ceased while the worker resided in Minnesota.
67.30 	For the purposes of this section, "dislocated worker" does not include an individual who 
67.31 	was an employee, at the time employment ceased, of a political committee, political fund, 
67.32 	principal campaign committee, or party unit, as those terms are used in chapter 10A, or an 
67.33 	organization required to file with the federal elections commission.
68.1 	(d) "Eligible organization" means a state or local government unit, nonprofit organization, 
68.2 	community action agency, business organization or association, or labor organization.
68.3 	(e) "Plant closing" means the announced or actual permanent shutdown of a single site 
68.4 	of employment, or one or more facilities or operating units within a single site of 
68.5 	employment.
68.6 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a 
68.7 	result of a plant closing, and which results in an employment loss at a single site of 
68.8 	employment during any 30-day period for at least 50 employees excluding those employees 
68.9 	that work less than 20 hours per week.

68.10 	Sec. 9. Minnesota Statutes 2016, section 116L.665, is amended to read:
68.11 	116L.665 WORKFORCE DEVELOPMENT COUNCIL BOARD.
68.12 		Subdivision 1.Creation. The governor's Workforce Development Council is created 
68.13 	under the authority of the Workforce Investment Act, United States Code, title 29, section 
68.14 	2801, et seq. Local workforce development councils are authorized under the Workforce 
68.15 	Investment Act. The governor's Workforce Development Council serves as Minnesota's 
68.16 	Workforce Investment Board for the purposes of the federal Workforce Investment Act.
68.17 	Board serves as Minnesota's state workforce development board for the purposes of the 
68.18 	federal Workforce Innovation and Opportunity Act, United States Code, title 29, section 
68.19 	3111, and must perform the duties under that act.
68.20 		Subd. 2.Membership. (a) The governor's Workforce Development Council Board is 
68.21 	composed of 31 members appointed by the governor. The members may be removed pursuant 
68.22 	to section 15.059. In selecting the representatives of the council board, the governor shall 
68.23 	ensure that 50 percent a majority of the members come from nominations provided by local 
68.24 	workforce councils. Local education representatives shall come from nominations provided 
68.25 	by local education to employment partnerships. The 31 members shall represent the following 
68.26 	sectors: the private sector, pursuant to United States Code, title 29, section 3111. For the 
68.27 	public members, membership terms, compensation of members, and removal of members 
68.28 	are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the 
68.29 	membership should be balanced as to gender and ethnic diversity.
68.30 	(a) State agencies: the following individuals shall serve on the council:
68.31 	(1) commissioner of the Minnesota Department of Employment and Economic 
68.32 	Development;
68.33 	(2) commissioner of the Minnesota Department of Education; and
69.1 	(3) commissioner of the Minnesota Department of Human Services.
69.2 	(b) Business and industry: six individuals shall represent the business and industry sectors 
69.3 	of Minnesota.
69.4 	(c) Organized labor: six individuals shall represent labor organizations of Minnesota.
69.5 	(d) Community-based organizations: four individuals shall represent community-based 
69.6 	organizations of Minnesota. Community-based organizations are defined by the Workforce 
69.7 	Investment Act as private nonprofit organizations that are representative of communities 
69.8 	or significant segments of communities and that have demonstrated expertise and 
69.9 	effectiveness in the field of workforce investment and may include entities that provide job 
69.10 	training services, serve youth, serve individuals with disabilities, serve displaced 
69.11 	homemakers, union-related organizations, employer-related nonprofit organizations, and 
69.12 	organizations serving nonreservation Indians and tribal governments.
69.13 	(e) Education: six individuals shall represent the education sector of Minnesota as follows:
69.14 	(1) one individual shall represent local public secondary education;
69.15 	(2) one individual shall have expertise in design and implementation of school-based 
69.16 	service-learning;
69.17 	(3) one individual shall represent leadership of the University of Minnesota;
69.18 	(4) one individual shall represent secondary/postsecondary vocational institutions;
69.19 	(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and 
69.20 	Universities; and
69.21 	(6) one individual shall have expertise in agricultural education.
69.22 	(f) Other: two individuals shall represent other constituencies including:
69.23 	(1) units of local government; and
69.24 	(2) applicable state or local programs.
69.25 	The speaker and the minority leader of the house of representatives shall each appoint 
69.26 	a representative to serve as an ex officio member of the council. The majority and minority 
69.27 	leaders of the senate shall each appoint a senator to serve as an ex officio member of the 
69.28 	council.
69.29 	The governor shall appoint one individual representing public libraries, one individual 
69.30 	with expertise in assisting women in obtaining employment in high-wage, high-demand, 
70.1 	nontraditional occupations, and one individual representing adult basic education programs 
70.2 	to serve as nonvoting advisors to the council.
70.3 	(b) No person shall serve as a member of more than one category described in paragraph 
70.4 	(c).
70.5 	(c) Voting members shall consist of the following:
70.6 	(1) the governor or the governor's designee;
70.7 	(2) two members of the house of representatives, one appointed by the speaker of the 
70.8 	house and one appointed by the minority leader of the house of representatives;
70.9 	(3) two members of the senate, one appointed by the senate majority leader and one 
70.10 	appointed by the senate minority leader;
70.11 	(4) a majority of the members must be representatives of businesses in the state appointed 
70.12 	by the governor who:
70.13 	(i) are owners of businesses, chief executives, or operating officers of businesses, or 
70.14 	other business executives or employers with optimum policy-making or hiring authority 
70.15 	and who, in addition, may be members of a local board under United States Code, title 29, 
70.16 	section 3122(b)(2)(A)(i);
70.17 	(ii) represent businesses, including small businesses, or organizations representing 
70.18 	businesses that provide employment opportunities that, at a minimum, include high-quality, 
70.19 	work-relevant training and development in in-demand industry sectors or occupations in 
70.20 	the state; and
70.21 	(iii) are appointed from individuals nominated by state business organizations and 
70.22 	business trade associations;
70.23 	(5) six representatives of labor organizations appointed by the governor, including:
70.24 	(i) representatives of labor organizations who have been nominated by state labor 
70.25 	federations; and
70.26 	(ii) a member of a labor organization or a training director from a joint labor organization;
70.27 	(6) commissioners of the state agencies with primary responsibility for core programs 
70.28 	identified within the state plan including:
70.29 	(i) the Department of Employment and Economic Development;
70.30 	(ii) the Department of Education; and
70.31 	(iii) the Department of Human Services;
71.1 	(7) two chief elected officials, appointed by the governor, collectively representing cities 
71.2 	and counties;
71.3 	(8) two representatives who are people of color or people with disabilities, appointed 
71.4 	by the governor, of community-based organizations that have demonstrated experience and 
71.5 	expertise in addressing the employment, training, or education needs of individuals with 
71.6 	barriers to employment; and
71.7 	(9) four officials responsible for education programs in the state, appointed by the 
71.8 	governor, including chief executive officers of community colleges and other institutions 
71.9 	of higher education, including:
71.10 	(i) the chancellor of the Minnesota State Colleges and Universities;
71.11 	(ii) the president of the University of Minnesota;
71.12 	(iii) a president from a private postsecondary school; and
71.13 	(iv) a representative of career and technical education.
71.14 	(d) The nonvoting members of the board shall be appointed by the governor and consist 
71.15 	of one of each of the following:
71.16 	(1) a representative of Adult Basic Education;
71.17 	(2) a representative of public libraries;
71.18 	(3) a person with expertise in women's economic security;
71.19 	(4) the chair or executive director of the Minnesota Workforce Council Association;
71.20 	(5) the commissioner of labor and industry;
71.21 	(6) the commissioner of the Office of Higher Education;
71.22 	(7) the commissioner of corrections;
71.23 	(8) the commissioner of management and budget;
71.24 	(9) two representatives of community-based organizations who are people of color or 
71.25 	people with disabilities who have demonstrated experience and expertise in addressing the 
71.26 	employment, training, and education needs of individuals with barriers to employment;
71.27 	(10) a representative of secondary, postsecondary, or career-technical education;
71.28 	(11) a representative of school-based service learning;
71.29 	(12) a representative of the Council on Asian-Pacific Minnesotans;
72.1 	(13) a representative of the Minnesota Council on Latino Affairs;
72.2 	(14) a representative of the Council for Minnesotans of African Heritage;
72.3 	(15) a representative of the Minnesota Indian Affairs Council;
72.4 	(16) a representative of the Minnesota State Council on Disability; and
72.5 	(17) a representative of the Office on the Economic Status of Women.
72.6 	(g) Appointment: (e) Each member shall be appointed for a term of three years from the 
72.7 	first day of January or July immediately following their appointment. Elected officials shall 
72.8 	forfeit their appointment if they cease to serve in elected office.
72.9 	(h) Members of the council are compensated as provided in section 15.059, subdivision 
72.10 	3.
72.11 		Subd. 2a.Council Board meetings; chair. (a) If compliance with section 13D.02 is 
72.12 	impractical, the Governor's Workforce Development Council may conduct a meeting of its 
72.13 	members by telephone or other electronic means so long as the following conditions are 
72.14 	met:
72.15 	(1) all members of the council participating in the meeting, wherever their physical 
72.16 	location, can hear one another and can hear all discussion and testimony;
72.17 	(2) members of the public present at the regular meeting location of the council can hear 
72.18 	clearly all discussion and testimony and all votes of members of the council and, if needed, 
72.19 	receive those services required by sections 15.44 and 15.441;
72.20 	(3) at least one member of the council is physically present at the regular meeting location; 
72.21 	and
72.22 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
72.23 	identified and recorded.
72.24 	(b) Each member of the council participating in a meeting by telephone or other electronic 
72.25 	means is considered present at the meeting for purposes of determining a quorum and 
72.26 	participating in all proceedings.
72.27 	(c) If telephone or other electronic means is used to conduct a meeting, the council, to 
72.28 	the extent practical, shall allow a person to monitor the meeting electronically from a remote 
72.29 	location. The council may require the person making such a connection to pay for 
72.30 	documented marginal costs that the council incurs as a result of the additional connection.
73.1 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
73.2 	emergency meeting, the council shall provide notice of the regular meeting location, of the 
73.3 	fact that some members may participate by telephone or other electronic means, and of the 
73.4 	provisions of paragraph (c). The timing and method of providing notice is governed by 
73.5 	section 13D.04.
73.6 	(a) The board shall hold regular in-person meetings at least quarterly and as often as 
73.7 	necessary to perform the duties outlined in the statement of authority and the board's bylaws. 
73.8 	Meetings shall be called by the chair. Special meetings may be called as needed. Notices 
73.9 	of all meetings shall be made at least 48 hours before the meeting date.
73.10 	(b) The governor shall designate a chair from among the appointed business representative 
73.11 	voting members. The chair shall approve an agenda for each meeting. Members shall submit 
73.12 	a written request for consideration of an agenda item no less than 24 hours in advance of 
73.13 	the meeting. Members of the public may submit a written request within 48 hours of a 
73.14 	meeting to be considered for inclusion in the agenda. Members of the public attending a 
73.15 	meeting of the board may address the board only with the approval or at the request of the 
73.16 	chair.
73.17 	(c) All meeting notices must be posted on the board's Web site. All meetings of the board 
73.18 	and committees must be open to the public. The board must make available to the public, 
73.19 	on a regular basis through electronic means and open meetings, information regarding the 
73.20 	activities of the board, information regarding membership, and, on request, minutes of 
73.21 	formal meetings of the board.
73.22 	(d) For the purpose of conducting business before the board at a duly called meeting, a 
73.23 	simple majority of the voting members, excluding any vacancies, constitutes a quorum.
73.24 		Subd. 3.Purpose; duties. The governor's Workforce Development Council shall replace 
73.25 	the governor's Job Training Council and assume all of its requirements, duties, and 
73.26 	responsibilities under the Workforce Investment Act. Additionally, the Workforce 
73.27 	Development Council shall assume the following duties and responsibilities:
73.28 	(a) Review the provision of services and the use of funds and resources under applicable 
73.29 	federal human resource programs and advise the governor on methods of coordinating the 
73.30 	provision of services and the use of funds and resources consistent with the laws and 
73.31 	regulations governing the programs. For purposes of this section, applicable federal and 
73.32 	state human resource programs mean the:
73.33 	(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;
74.1 	(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States 
74.2 	Code, title 20, section 2301, et seq.;
74.3 	(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;
74.4 	(4) Wagner-Peyser Act, United States Code, title 29, section 49;
74.5 	(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);
74.6 	(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp 
74.7 	Employment and Training Program, United States Code, title 7, section 2015(d)(4); and
74.8 	(7) programs defined in section 116L.19, subdivision 5.
74.9 	Additional federal and state programs and resources can be included within the scope 
74.10 	of the council's duties if recommended by the governor after consultation with the council.
74.11 	(b) Review federal, state, and local education, postsecondary, job skills training, and 
74.12 	youth employment programs, and make recommendations to the governor and the legislature 
74.13 	for establishing an integrated seamless system for providing education and work skills 
74.14 	development services to learners and workers of all ages.
74.15 	(c) Advise the governor on the development and implementation of statewide and local 
74.16 	performance standards and measures relating to applicable federal human resource programs 
74.17 	and the coordination of performance standards and measures among programs.
74.18 	(d) Promote education and employment transitions programs and knowledge and skills 
74.19 	of entrepreneurship among employers, workers, youth, and educators, and encourage 
74.20 	employers to provide meaningful work-based learning opportunities.
74.21 	(e) Evaluate and identify exemplary education and employment transitions programs 
74.22 	and provide technical assistance to local partnerships to replicate the programs throughout 
74.23 	the state.
74.24 	(f) Advise the governor on methods to evaluate applicable federal human resource 
74.25 	programs.
74.26 	(g) Sponsor appropriate studies to identify human investment needs in Minnesota and 
74.27 	recommend to the governor goals and methods for meeting those needs.
74.28 	(h) Recommend to the governor goals and methods for the development and coordination 
74.29 	of a human resource system in Minnesota.
74.30 	(i) Examine federal and state laws, rules, and regulations to assess whether they present 
74.31 	barriers to achieving the development of a coordinated human resource system.
75.1 	(j) Recommend to the governor and to the federal government changes in state or federal 
75.2 	laws, rules, or regulations concerning employment and training programs that present barriers 
75.3 	to achieving the development of a coordinated human resource system.
75.4 	(k) Recommend to the governor and to the federal government waivers of laws and 
75.5 	regulations to promote coordinated service delivery.
75.6 	(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic 
75.7 	plan which details methods for meeting Minnesota's human investment needs and for 
75.8 	developing and coordinating a state human resource system.
75.9 	(m) Provide the commissioner of employment and economic development and the 
75.10 	committees of the legislature with responsibility for economic development with 
75.11 	recommendations provided to the governor under this subdivision.
75.12 	(n) In consultation with local workforce councils and the Department of Employment 
75.13 	and Economic Development, develop an ongoing process to identify and address local gaps 
75.14 	in workforce services.
75.15 		Subd. 4.Executive committee duties. The executive committee must, with advice and 
75.16 	input of local workforce councils boards and other stakeholders as appropriate, develop 
75.17 	performance standards for the state workforce centers. By January 15, 2002 2019, and each 
75.18 	odd-numbered year thereafter, the executive committee shall submit a report to the senate 
75.19 	and house of representatives committees with jurisdiction over workforce development 
75.20 	programs regarding the performance and outcomes of the workforce centers. The report 
75.21 	must provide recommendations regarding workforce center funding levels and sources, 
75.22 	program changes, and administrative changes.
75.23 		Subd. 5.Subcommittees. The chair of the Workforce Development Council Board may 
75.24 	establish subcommittees in order to carry out the duties and responsibilities of the council
75.25 	board.
75.26 		Subd. 6.Staffing. The Department of commissioner of employment and economic 
75.27 	development must provide staff, including but not limited to professional, technical, and 
75.28 	clerical staff to the board necessary to perform the duties assigned to the Minnesota 
75.29 	Workforce Development Council. All staff report to the commissioner carry out the duties 
75.30 	of the board. The council may ask for assistance from other units ofAt the request of the 
75.31 	board, state government asdepartments and agencies must provide the board with the 
75.32 	assistance it requires in order to fulfill its duties and responsibilities.
76.1 		Subd. 7.Expiration. The council board expires if there is no federal funding for the 
76.2 	human resource programs within the scope of the council's board's duties.
76.3 		Subd. 8.Funding. The commissioner shall develop recommendations on a funding 
76.4 	formula for allocating Workforce Investment Act funds to the council with a minimum 
76.5 	allocation of employment and economic development must provide at least $350,000 per
76.6 	each fiscal year. The commissioner shall report the funding formula recommendations to 
76.7 	the legislature by January 15, 2011 from existing agency resources to the board for staffing 
76.8 	and administrative expenses.

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

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

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

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

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

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

78.13 	Sec. 16. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter 
78.14 	189, article 7, section 8, is amended to read:
78.15 	Sec. 14. ASSIGNED RISK TRANSFER.
 78.16 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
78.17 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
78.18 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
78.19 	amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer 
78.20 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
78.21 	paragraph (a), clause (1). This is a onetime transfer.
78.22 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
78.23 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
78.24 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
78.25 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, 
78.26 	to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. 
78.27 	This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, 
78.28 	subdivision 1, paragraph (a), clause (1), but after the transfer transfers authorized in paragraph
78.29 	paragraphs (a) and (f). The total amount authorized for all transfers under this paragraph 
78.30 	must not exceed $24,100,000. This paragraph expires the day following the transfer in which 
78.31 	the total amount transferred under this paragraph to the Minnesota minerals 21st century 
78.32 	fund equals $24,100,000.
79.1 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
79.2 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
79.3 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
79.4 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
79.5 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
79.6 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a 
79.7 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
79.8 	fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 
79.9 	15. Both the transfer and appropriation under this paragraph are onetime.
79.10 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an 
79.11 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
79.12 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
79.13 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
79.14 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
79.15 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a 
79.16 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
79.17 	fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 
79.18 	15. Both the transfer and appropriation under this paragraph are onetime.
79.19 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 
79.20 	management and budget shall transfer to the general fund, any unencumbered or unexpended 
79.21 	balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or 
79.22 	the date the commissioner of commerce determines that an excess surplus in the assigned 
79.23 	risk plan does not exist, whichever occurs earlier.
79.24 	(f) By June 30, 2017, and each year thereafter, if the commissioner of commerce 
79.25 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
79.26 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
79.27 	budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each year, 
79.28 	to the rural policy and development center fund under Minnesota Statutes, section 116J.4221. 
79.29 	This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes, 
79.30 	section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all 
79.31 	transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day 
79.32 	following the transfer in which the total amount transferred under this paragraph to the rural 
79.33 	policy and development center fund equals $2,000,000.

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

80.1 	Sec. 17. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is 
80.2 	amended to read:

80.3	Subd. 6.Vocational Rehabilitation

80.4	Appropriations by Fund
	
80.5	General
	22,611,000
	21,611,000
	
80.6
80.7	Workforce 
Development
	7,830,000
	7,830,000
	
80.8 	(a) $10,800,000 each year is from the general 
80.9 	fund for the state's vocational rehabilitation 
80.10 	program under Minnesota Statutes, chapter 
80.11 	268A.
80.12 	(b) $2,261,000 each year is from the general 
80.13 	fund for grants to centers for independent 
80.14 	living under Minnesota Statutes, section 
80.15 	268A.11.
80.16 	(c) $5,745,000 each year from the general fund 
80.17 	and $6,830,000 each year from the workforce 
80.18 	development fund are for extended 
80.19 	employment services for persons with severe 
80.20 	disabilities under Minnesota Statutes, section 
80.21 	268A.15.
80.22 	(d) $250,000 in fiscal year 2016 and $250,000 
80.23 	in fiscal year 2017 are for rate increases to 
80.24 	providers of extended employment services 
80.25 	for persons with severe disabilities under 
80.26 	Minnesota Statutes, section 268A.15. This 
80.27 	appropriation is added to the agency's base.
80.28 	(e) $2,555,000 each year is from the general 
80.29 	fund for grants to programs that provide 
80.30 	employment support services to persons with 
80.31 	mental illness under Minnesota Statutes, 
80.32 	sections 268A.13 and 268A.14.
80.33 	(f) $1,000,000 each year is from the workforce 
80.34 	development fund for grants under Minnesota 
81.1 	Statutes, section 268A.16, for employment 
81.2 	services for persons, including transition-aged 
81.3 	youth, who are deaf, deafblind, or 
81.4 	hard-of-hearing. If the amount in the first year 
81.5 	is insufficient, the amount in the second year 
81.6 	is available in the first year.
81.7 	(g) $1,000,000 in fiscal year 2016 is for a 
81.8 	grant to Assistive Technology of Minnesota, 
81.9 	a statewide nonprofit organization that is 
81.10 	exclusively dedicated to the issues of access 
81.11 	to and the acquisition of assistive technology. 
81.12 	The purpose of the grant is to acquire assistive 
81.13 	technology and to work in tandem with 
81.14 	individuals using this technology to create 
81.15 	career paths Assistive Technology of 
81.16 	Minnesota must use the funds to provide 
81.17 	low-interest loans to individuals of all ages 
81.18 	and types of disabilities to purchase assistive 
81.19 	technology and employment-related 
81.20 	equipment. This is a onetime appropriation.
81.21 	(h) For purposes of this subdivision, 
81.22 	Minnesota Diversified Industries, Inc. is an 
81.23 	eligible provider of services for persons with 
81.24 	severe disabilities under Minnesota Statutes, 
81.25 	section 268A.15.

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

81.27 	Sec. 18. Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read:
81.28 		Subd. 3.Qualification requirements. To qualify for assistance under this section, a 
81.29 	business must:
81.30 	(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
81.31 	(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of 
81.32 	Roosevelt;
82.1 	(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of 
82.2 	Malmo, or township of Lakeside; or
82.3 	(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of 
82.4 	East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
82.5 	(2) document a reduction of at least ten five percent in gross receipts in any two-year 
82.6 	period since 2010; and
82.7 	(3) be a business in one of the following industries, as defined within the North American 
82.8 	Industry Classification System: accommodation, restaurants, bars, amusement and recreation, 
82.9 	food and beverages retail, sporting goods, miscellaneous retail, general retail, museums, 
82.10 	historical sites, health and personal care, gas station, general merchandise, business and 
82.11 	professional membership, movies, or nonstore retailer, as determined by Mille Lacs County 
82.12 	in consultation with the commissioner of employment and economic development.

82.13 	Sec. 19. Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to 
82.14 	read:

82.15 	EFFECTIVE DATE. This section, except for subdivision 4, is effective July 1, 2016, 
82.16 	and expires June 30, 2017 2018. Subdivision 4 is effective July 1, 2016, and expires on the 
82.17 	date the last loan is repaid or forgiven as provided under this section.

82.18 	Sec. 20. EMERGING ENTREPRENEUR PROGRAM APPROPRIATIONS 
82.19 	CANCELLATIONS.
 82.20 	All unspent funds, estimated to be $376,000, appropriated in Laws 2016, chapter 189, 
82.21 	article 7, section 2, subdivision 2, paragraph (h), clause (7), and Laws 2016, chapter 189, 
82.22 	article 12, section 2, subdivision 2, paragraph (p), are canceled to the general fund.

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

82.24 	Sec. 21. GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.
 82.25 		Subdivision 1.Creation. The Minnesota Design Center at the University of Minnesota 
82.26 	shall partner with relevant organizations in selected communities within greater Minnesota 
82.27 	to establish a pilot project for community design. The pilot project shall identify current 
82.28 	and future opportunities for rural development, create designs, seek funding from existing 
82.29 	sources, and assist with the implementation of economically, environmentally, and culturally 
82.30 	sensitive projects that respond to current community conditions, needs, capabilities, and 
82.31 	aspirations in support of the selected communities. For the purposes of this section, "greater 
83.1 	Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault, 
83.2 	Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley, 
83.3 	Steele, Wabasha, Waseca, Watonwan, and Winona.
83.4 		Subd. 2.Community selection. In order to be considered for inclusion in the pilot 
83.5 	project, communities with fewer than 12,000 residents within the counties listed in 
83.6 	subdivision 1 must submit a letter of interest to the Minnesota Design Center. The Minnesota 
83.7 	Design Center may choose up to ten communities for participation in the pilot project.
83.8 		Subd. 3.Pilot project activities. Among other activities, the Minnesota Design Center, 
83.9 	in partnership with relevant organizations within the selected communities, shall:
83.10 	(1) assess community capacity to engage in design, development, and implementation;
83.11 	(2) create community and project designs that respond to a community's culture and 
83.12 	needs, reinforce its identity as a special place, and support its future aspirations;
83.13 	(3) create an implementation strategy; and
83.14 	(4) build capacity to implement design work by identifying potential funding strategies 
83.15 	and sources and assisting in grant writing to secure funding.

83.16 	Sec. 22. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT; 
83.17 	MANDATED REPORT HOLIDAY.
 83.18 	(a) Notwithstanding any law to the contrary, any report required by state law from the 
83.19 	Department of Employment and Economic Development that is due in fiscal year 2018 or 
83.20 	2019 is optional. The commissioner of employment and economic development may produce 
83.21 	any reports at the commissioner's discretion or as may be required by federal law.
83.22 	(b) This section does not apply to workforce programs outcomes reporting under 
83.23 	Minnesota Statutes, section 116L.98, or the agency activity and expenditure report under 
83.24 	article 12, section 3.

83.25 	Sec. 23. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA 
83.26 	INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 83.27 	(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or 
83.28 	statutory city, county, or town that has uncommitted money received from repayment of 
83.29 	funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20 
83.30 	percent of the balance of that money to the state general fund before June 30, 2018. Any 
84.1 	local entity that does so may then use the remaining 80 percent of the uncommitted money 
84.2 	as a general purpose aid for any lawful expenditure.
84.3 	(b) By February 15, 2019, a home rule charter or statutory city, county, or town that 
84.4 	exercises the option under paragraph (a) shall submit to the chairs of the legislative 
84.5 	committees with jurisdiction over economic development policy and finance an accounting 
84.6 	and explanation of the use and distribution of the funds.

84.7 	Sec. 24. GETTING TO WORK GRANT PROGRAM.
 84.8 		Subdivision 1.Creation. The commissioner of employment and economic development 
84.9 	shall make grants to nonprofit organizations to establish and operate programs under this 
84.10 	section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain 
84.11 	or maintain employment.
84.12 		Subd. 2.Qualified grantee. A grantee must:
84.13 	(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
84.14 	(2) at the time of application offer, or have the demonstrated capacity to offer, a motor 
84.15 	vehicle program that provides the services required under subdivision 3.
84.16 		Subd. 3.Program requirements. (a) A program must offer one or more of the following 
84.17 	services:
84.18 	(1) provision of new or used motor vehicles by gift, sale, or lease;
84.19 	(2) motor vehicle repair and maintenance services; or
84.20 	(3) motor vehicle loans.
84.21 	(b) In addition to the requirements of paragraph (a), a program must offer one or more 
84.22 	of the following services:
84.23 	(1) financial literacy education;
84.24 	(2) education on budgeting for vehicle ownership;
84.25 	(3) car maintenance and repair instruction;
84.26 	(4) credit counseling; or
84.27 	(5) job training related to motor vehicle maintenance and repair.
84.28 		Subd. 4.Application. Applications for a grant must be on a form provided by the 
84.29 	commissioner and on a schedule set by the commissioner. Applications must, in addition 
84.30 	to any other information required by the commissioner, include the following:
85.1 	(1) a detailed description of all services to be offered;
85.2 	(2) the area to be served;
85.3 	(3) the estimated number of program participants to be served by the grant; and
85.4 	(4) a plan for leveraging resources from partners that may include, but are not limited 
85.5 	to:
85.6 	(i) automobile dealers;
85.7 	(ii) automobile parts dealers;
85.8 	(iii) independent local mechanics and automobile repair facilities;
85.9 	(iv) banks and credit unions;
85.10 	(v) employers;
85.11 	(vi) employment and training agencies;
85.12 	(vii) insurance companies and agents;
85.13 	(viii) local workforce centers; and
85.14 	(ix) educational institutions including vocational institutions and jobs or skills training 
85.15 	programs.
85.16 		Subd. 5.Participant eligibility. (a) To be eligible to receive program services, a person 
85.17 	must:
85.18 	(1) have a household income at or below 200 percent of the federal poverty level;
85.19 	(2) be at least 22 years of age;
85.20 	(3) have a valid driver's license;
85.21 	(4) provide the grantee with proof of motor vehicle insurance; and
85.22 	(5) demonstrate to the grantee that a motor vehicle is required by the person to obtain 
85.23 	or maintain employment.
85.24 	(b) This subdivision does not preclude a grantee from imposing additional requirements, 
85.25 	not inconsistent with paragraph (a), for the receipt of program services.
85.26 		Subd. 6.Report to legislature. By February 15, 2019, the commissioner shall submit 
85.27 	a report to the chairs of the house of representatives and senate committees with jurisdiction 
85.28 	over workforce and economic development on program outcomes. At a minimum, the report 
85.29 	must include:
86.1 	(1) the total number of program participants;
86.2 	(2) the number of program participants who received each of the following:
86.3 	(i) provision of a motor vehicle;
86.4 	(ii) motor vehicle repair services; and
86.5 	(iii) motor vehicle loans;
86.6 	(3) the number of program participants who report that they or their children were able 
86.7 	to increase their participation in community activities such as after school programs, other 
86.8 	youth programs, church or civic groups, or library services as a result of participation in the 
86.9 	program; and
86.10 	(4) an analysis of the impact of the getting to work grant program on the employment 
86.11 	rate and wages of program participants.

86.12 	Sec. 25.  REPEALER.
 86.13 	Minnesota Statutes 2016, section 116J.549, and Minnesota Rules, parts 4355.0100; 
86.14 	4355.0200; 4355.0300; 4355.0400; and 4355.0500, are repealed.

86.15 	ARTICLE 4
86.16 	IRON RANGE RESOURCES AND REHABILITATION POLICY

86.17 	Section 1. Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:
86.18 		Subdivision 1.Definitions. As used in this section and section 3.736 the terms defined 
86.19 	in this section have the meanings given them.
86.20 	(1) "State" includes each of the departments, boards, agencies, commissions, courts, and 
86.21 	officers in the executive, legislative, and judicial branches of the state of Minnesota and 
86.22 	includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher 
86.23 	Education, the Higher Education Facilities Authority, the Health Technology Advisory 
86.24 	Committee, the Armory Building Commission, the Zoological Board, the Department of 
86.25 	Iron Range Resources and Rehabilitation Board, the Minnesota Historical Society, the State 
86.26 	Agricultural Society, the University of Minnesota, the Minnesota State Colleges and 
86.27 	Universities, state hospitals, and state penal institutions. It does not include a city, town, 
86.28 	county, school district, or other local governmental body corporate and politic.
86.29 	(2) "Employee of the state" means all present or former officers, members, directors, or 
86.30 	employees of the state, members of the Minnesota National Guard, members of a bomb 
86.31 	disposal unit approved by the commissioner of public safety and employed by a municipality 
87.1 	defined in section 466.01 when engaged in the disposal or neutralization of bombs or other 
87.2 	similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the 
87.3 	municipality but within the state, or persons acting on behalf of the state in an official 
87.4 	capacity, temporarily or permanently, with or without compensation. It does not include 
87.5 	either an independent contractor except, for purposes of this section and section 3.736 only, 
87.6 	a guardian ad litem acting under court appointment, or members of the Minnesota National 
87.7 	Guard while engaged in training or duty under United States Code, title 10, or title 32, 
87.8 	section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding 
87.9 	sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee 
87.10 	of the state" includes a district public defender or assistant district public defender in the 
87.11 	Second or Fourth Judicial District, a member of the Health Technology Advisory Committee, 
87.12 	and any officer, agent, or employee of the state of Wisconsin performing work for the state 
87.13 	of Minnesota pursuant to a joint state initiative.
87.14 	(3) "Scope of office or employment" means that the employee was acting on behalf of 
87.15 	the state in the performance of duties or tasks lawfully assigned by competent authority.
87.16 	(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

87.17 	Sec. 2. Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:
87.18 		Subd. 3.Exclusions. Without intent to preclude the courts from finding additional cases 
87.19 	where the state and its employees should not, in equity and good conscience, pay 
87.20 	compensation for personal injuries or property losses, the legislature declares that the state 
87.21 	and its employees are not liable for the following losses:
87.22 	(a) a loss caused by an act or omission of a state employee exercising due care in the 
87.23 	execution of a valid or invalid statute or rule;
87.24 	(b) a loss caused by the performance or failure to perform a discretionary duty, whether 
87.25 	or not the discretion is abused;
87.26 	(c) a loss in connection with the assessment and collection of taxes;
87.27 	(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does 
87.28 	not abut a publicly owned building or a publicly owned parking lot, except when the condition 
87.29 	is affirmatively caused by the negligent acts of a state employee;
87.30 	(e) a loss caused by wild animals in their natural state, except as provided in section 
87.31 	3.7371;
87.32 	(f) a loss other than injury to or loss of property or personal injury or death;
88.1 	(g) a loss caused by the condition of unimproved real property owned by the state, which 
88.2 	means land that the state has not improved, state land that contains idled or abandoned mine 
88.3 	pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither 
88.4 	affixed nor improved;
88.5 	(h) a loss involving or arising out of the use or operation of a recreational motor vehicle, 
88.6 	as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as 
88.7 	defined in section 160.02, except that the state is liable for conduct that would entitle a 
88.8 	trespasser to damages against a private person;
88.9 	(i) a loss incurred by a user arising from the construction, operation, or maintenance of 
88.10 	the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the 
88.11 	construction, operation, maintenance, or administration of grants-in-aid trails as defined in 
88.12 	section 85.018, or for a loss arising from the construction, operation, or maintenance of a 
88.13 	water access site created by the Department of Iron Range Resources and Rehabilitation 
88.14 	Board, except that the state is liable for conduct that would entitle a trespasser to damages 
88.15 	against a private person. For the purposes of this clause, a water access site, as defined in 
88.16 	section 86A.04 or created by the commissioner of Iron Range resources and rehabilitation 
88.17 	Board, that provides access to an idled, water filled mine pit, also includes the entire water 
88.18 	filled area of the pit and, further, includes losses caused by the caving or slumping of the 
88.19 	mine pit walls;
88.20 	(j) a loss of benefits or compensation due under a program of public assistance or public 
88.21 	welfare, except if state compensation for loss is expressly required by federal law in order 
88.22 	for the state to receive federal grants-in-aid;
88.23 	(k) a loss based on the failure of a person to meet the standards needed for a license, 
88.24 	permit, or other authorization issued by the state or its agents;
88.25 	(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person 
88.26 	at a state hospital or state corrections facility where reasonable use of available appropriations 
88.27 	has been made to provide care;
88.28 	(m) loss, damage, or destruction of property of a patient or inmate of a state institution 
88.29 	except as provided under section 3.7381;
88.30 	(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;
88.31 	(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to 
88.32 	increase dissolved oxygen or maintain open water on the ice of public waters, that is operated 
88.33 	under a permit issued by the commissioner of natural resources;
89.1 	(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state 
89.2 	is liable for conduct that would entitle a trespasser to damages against a private person;
89.3 	(q) a loss arising out of a person's use of a logging road on public land that is maintained 
89.4 	exclusively to provide access to timber on that land by harvesters of the timber, and is not 
89.5 	signed or otherwise held out to the public as a public highway; and
89.6 	(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the 
89.7 	Minnesota National Guard or the Department of Military Affairs, except that the state is 
89.8 	liable for conduct that would entitle a trespasser to damages against a private person.
89.9 	The state will not pay punitive damages.

89.10 	Sec. 3. Minnesota Statutes 2016, section 15.01, is amended to read:
89.11 	15.01 DEPARTMENTS OF THE STATE.
89.12 	The following agencies are designated as the departments of the state government: the 
89.13 	Department of Administration; the Department of Agriculture; the Department of Commerce; 
89.14 	the Department of Corrections; the Department of Education; the Department of Employment 
89.15 	and Economic Development; the Department of Health; the Department of Human Rights;
89.16 	the Department of Iron Range Resources and Rehabilitation; the Department of Labor and 
89.17 	Industry; the Department of Management and Budget; the Department of Military Affairs; 
89.18 	the Department of Natural Resources; the Department of Public Safety; the Department of 
89.19 	Human Services; the Department of Revenue; the Department of Transportation; the 
89.20 	Department of Veterans Affairs; and their successor departments.

89.21 	Sec. 4. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
89.22 		Subd. 7.Department of Iron Range Resources and Rehabilitation Board. After 
89.23 	seeking a recommendation from the Iron Range Resources and Rehabilitation Board, the 
89.24 	commissioner of Iron Range resources and rehabilitation Board may purchase insurance it 
89.25 	considersthe commissioner deems necessary and appropriate to insure facilities operated 
89.26 	by the board commissioner.

89.27 	Sec. 5. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
89.28 		Subd. 3.Group II salary limits. The salary for a position listed in this subdivision shall 
89.29 	not exceed 120 percent of the salary of the governor. This limit must be adjusted annually 
89.30 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
89.31 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
90.1 	second prior year to October of the immediately prior year. The commissioner of management 
90.2 	and budget must publish the limit on the department's Web site. This subdivision applies 
90.3 	to the following positions:
90.4 	Executive director of Gambling Control Board;
90.5 	Commissioner, of Iron Range resources and rehabilitation Board;
90.6 	Commissioner, Bureau of Mediation Services;
90.7 	Ombudsman for Mental Health and Developmental Disabilities;
90.8 	Chair, Metropolitan Council;
90.9 	School trust lands director;
90.10 	Executive director of pari-mutuel racing; and
90.11 	Commissioner, Public Utilities Commission.

90.12 	Sec. 6. Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:
90.13 		Subd. 22.Executive branch. "Executive branch" means heads of all agencies of state 
90.14 	government, elective or appointive, established by statute or Constitution and all employees 
90.15 	of those agency heads who have within their particular field of responsibility statewide 
90.16 	jurisdiction and who are not within the legislative or judicial branches of government. The 
90.17 	executive branch also includes employees of the Department of Iron Range Resources and 
90.18 	Rehabilitation Board. The executive branch does not include agencies with jurisdiction in 
90.19 	specifically defined geographical areas, such as regions, counties, cities, towns, 
90.20 	municipalities, or school districts, the University of Minnesota, the Public Employees 
90.21 	Retirement Association, the Minnesota State Retirement System, the Teachers Retirement 
90.22 	Association, the Minnesota Historical Society, and all of their employees, and any other 
90.23 	entity which is incorporated, even though it receives state funds.

90.24 	Sec. 7. Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:
90.25 		Subdivision 1.Advisory council created. The Cuyuna Country State Recreation Area 
90.26 	Citizens Advisory Council is established. Membership on the advisory council shall include:
90.27 	(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;
90.28 	(2) a representative of the Croft Mine Historical Park Joint Powers Board;
90.29 	(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked 
90.30 	as a miner in the local area;
91.1 	(4) a representative of the Crow Wing County Board;
91.2 	(5) an elected state official;
91.3 	(6) a representative of the Grand Rapids regional office of the Department of Natural 
91.4 	Resources;
91.5 	(7) a designee of the commissioner of Iron Range resources and rehabilitation Board;
91.6 	(8) a designee of the local business community selected by the area chambers of 
91.7 	commerce;
91.8 	(9) a designee of the local environmental community selected by the Crow Wing County 
91.9 	District 5 commissioner;
91.10 	(10) a designee of a local education organization selected by the Crosby-Ironton School 
91.11 	Board;
91.12 	(11) a designee of one of the recreation area user groups selected by the Cuyuna Range 
91.13 	Chamber of Commerce; and
91.14 	(12) a member of the Cuyuna Country Heritage Preservation Society.

91.15 	Sec. 8. Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:
91.16 		Subd. 1a.Definitions. For the purposes of this chapter, the following terms have the 
91.17 	meanings given to them in this subdivision.
91.18 	(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.
91.19 	(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02, 
91.20 	subdivision 5.
91.21 	(c) "Environmental assessment worksheet" means a brief document which is designed 
91.22 	to set out the basic facts necessary to determine whether an environmental impact statement 
91.23 	is required for a proposed action.
91.24 	(d) "Governmental action" means activities, including projects wholly or partially 
91.25 	conducted, permitted, assisted, financed, regulated, or approved by units of government 
91.26 	including the federal government.
91.27 	(e) "Governmental unit" means any state agency and any general or special purpose unit 
91.28 	of government in the state including, but not limited to, watershed districts organized under 
91.29 	chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic 
91.30 	development authorities established under sections 469.090 to 469.108, but not including 
92.1 	courts, school districts, the Department of Iron Range Resources and Rehabilitation, and 
92.2 	regional development commissions other than the Metropolitan Council.

92.3 	Sec. 9. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:
92.4 		Subd. 2.Use of fund. The commissioner shall use money in the fund to make loans or, 
92.5 	including forgivable loans, equity investments, or grants for infrastructure in mineral, steel, 
92.6 	or any other industry processing, production, manufacturing, or technology project that 
92.7 	would enhance the economic diversification and that is located within the taconite relief
92.8 	taxassistance area as defined under section 273.134 273.1341. The commissioner must, 
92.9 	prior to making any loans or equity investments and after consultation with industry and 
92.10 	public officials, develop a strategy for making loans and, equity investments, or grants for 
92.11 	infrastructure that assists the taconite relief area in retaining and enhancing its economic 
92.12 	competitiveness. Money in the fund may also be used to pay for the costs of carrying out 
92.13 	the commissioner's due diligence duties under this section.

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

92.15 	Sec. 10. Minnesota Statutes 2016, section 116J.424, is amended to read:
92.16 	116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
92.17 	CONTRIBUTION.
92.18 	The commissioner of the Iron Range resources and rehabilitation Board with approval 
92.19 	by the board, after consultation with the Iron Range Resources and Rehabilitation Board,
92.20 	may provide an equal match for any loan or equity investment made for a project located 
92.21 	in the tax relieftaconite assistance area defined in section 273.134, paragraph (b) 273.1341, 
92.22 	by the Minnesota 21st century fund created by section 116J.423. The match may be in the 
92.23 	form of a loan or equity investment, notwithstanding whether the fund makes a loan or 
92.24 	equity investment. The state shall not acquire an equity interest because of an equity 
92.25 	investment or loan by the board and the board at its sole discretion shall commissioner of 
92.26 	Iron Range resources and rehabilitation and the commissioner, after consultation with the 
92.27 	advisory board, shall have sole discretion to decide what interest itthe fund acquires in a 
92.28 	project. The commissioner of employment and economic development may require a 
92.29 	commitment from the board commissioner of Iron Range resources and rehabilitation to 
92.30 	make the match prior to disbursing money from the fund.

93.1 	Sec. 11. Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:
93.2 		Subd. 3.Subsidy agreement. (a) A recipient must enter into a subsidy agreement with 
93.3 	the grantor of the subsidy that includes:
93.4 	(1) a description of the subsidy, including the amount and type of subsidy, and type of 
93.5 	district if the subsidy is tax increment financing;
93.6 	(2) a statement of the public purposes for the subsidy;
93.7 	(3) measurable, specific, and tangible goals for the subsidy;
93.8 	(4) a description of the financial obligation of the recipient if the goals are not met;
93.9 	(5) a statement of why the subsidy is needed;
93.10 	(6) a commitment to continue operations in the jurisdiction where the subsidy is used 
93.11 	for at least five years after the benefit date;
93.12 	(7) the name and address of the parent corporation of the recipient, if any; and
93.13 	(8) a list of all financial assistance by all grantors for the project.
93.14 	(b) Business subsidies in the form of grants must be structured as forgivable loans. For 
93.15 	other types of business subsidies, the agreement must state the fair market value of the 
93.16 	subsidy to the recipient, including the value of conveying property at less than a fair market 
93.17 	price, or other in-kind benefits to the recipient.
93.18 	(c) If a business subsidy benefits more than one recipient, the grantor must assign a 
93.19 	proportion of the business subsidy to each recipient that signs a subsidy agreement. The 
93.20 	proportion assessed to each recipient must reflect a reasonable estimate of the recipient's 
93.21 	share of the total benefits of the project.
93.22 	(d) The state or local government agency and the recipient must both sign the subsidy 
93.23 	agreement and, if the grantor is a local government agency, the agreement must be approved 
93.24 	by the local elected governing body, except for the St. Paul Port Authority and a seaway 
93.25 	port authority.
93.26 	(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be 
93.27 	authorized to move from the jurisdiction where the subsidy is used within the five-year 
93.28 	period after the benefit date if, after a public hearing, the grantor approves the recipient's 
93.29 	request to move. For the purpose of this paragraph, if the grantor is a state government 
93.30 	agency other than the Department of Iron Range Resources and Rehabilitation Board, 
93.31 	"jurisdiction" means a city or township.

94.1 	Sec. 12. Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:
94.2 		Subd. 5.Public notice and hearing. (a) Before granting a business subsidy that exceeds 
94.3 	$500,000 for a state government grantor and $150,000 for a local government grantor, the 
94.4 	grantor must provide public notice and a hearing on the subsidy. A public hearing and notice 
94.5 	under this subdivision is not required if a hearing and notice on the subsidy is otherwise 
94.6 	required by law.
94.7 	(b) Public notice of a proposed business subsidy under this subdivision by a state 
94.8 	government grantor, other than the commissioner of Iron Range resources and rehabilitation 
94.9 	Board, must be published in the State Register. Public notice of a proposed business subsidy 
94.10 	under this subdivision by a local government grantor or the commissioner of Iron Range 
94.11 	resources and rehabilitation Board must be published in a local newspaper of general 
94.12 	circulation. The public notice must identify the location at which information about the 
94.13 	business subsidy, including a summary of the terms of the subsidy, is available. Published 
94.14 	notice should be sufficiently conspicuous in size and placement to distinguish the notice 
94.15 	from the surrounding text. The grantor must make the information available in printed paper 
94.16 	copies and, if possible, on the Internet. The government agency must provide at least a 
94.17 	ten-day notice for the public hearing.
94.18 	(c) The public notice must include the date, time, and place of the hearing.
94.19 	(d) The public hearing by a state government grantor other than the commissioner of 
94.20 	Iron Range resources and rehabilitation Board must be held in St. Paul.
94.21 	(e) If more than one nonstate grantor provides a business subsidy to the same recipient, 
94.22 	the nonstate grantors may designate one nonstate grantor to hold a single public hearing 
94.23 	regarding the business subsidies provided by all nonstate grantors. For the purposes of this 
94.24 	paragraph, "nonstate grantor" includes the commissioner of Iron Range resources and 
94.25 	rehabilitation Board.
94.26 	(f) The public notice of any public meeting about a business subsidy agreement, including 
94.27 	those required by this subdivision and by subdivision 4, must include notice that a person 
94.28 	with residence in or the owner of taxable property in the granting jurisdiction may file a 
94.29 	written complaint with the grantor if the grantor fails to comply with sections 116J.993 to 
94.30 	116J.995, and that no action may be filed against the grantor for the failure to comply unless 
94.31 	a written complaint is filed.

95.1 	Sec. 13. Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:
95.2 		Subd. 7.Reports by recipients to grantors. (a) A business subsidy grantor must monitor 
95.3 	the progress by the recipient in achieving agreement goals.
95.4 	(b) A recipient must provide information regarding goals and results for two years after 
95.5 	the benefit date or until the goals are met, whichever is later. If the goals are not met, the 
95.6 	recipient must continue to provide information on the subsidy until the subsidy is repaid. 
95.7 	The information must be filed on forms developed by the commissioner in cooperation with 
95.8 	representatives of local government. Copies of the completed forms must be sent to the 
95.9 	local government agency that provided the subsidy or to the commissioner if the grantor is 
95.10 	a state agency. If the commissioner of Iron Range resources and rehabilitation Board is the 
95.11 	grantor, the copies must be sent to the board commissioner of Iron Range resources and 
95.12 	rehabilitation. The report must include:
95.13 	(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy 
95.14 	is tax increment financing;
95.15 	(2) the hourly wage of each job created with separate bands of wages;
95.16 	(3) the sum of the hourly wages and cost of health insurance provided by the employer 
95.17 	with separate bands of wages;
95.18 	(4) the date the job and wage goals will be reached;
95.19 	(5) a statement of goals identified in the subsidy agreement and an update on achievement 
95.20 	of those goals;
95.21 	(6) the location of the recipient prior to receiving the business subsidy;
95.22 	(7) the number of employees who ceased to be employed by the recipient when the 
95.23 	recipient relocated to become eligible for the business subsidy;
95.24 	(8) why the recipient did not complete the project outlined in the subsidy agreement at 
95.25 	their previous location, if the recipient was previously located at another site in Minnesota;
95.26 	(9) the name and address of the parent corporation of the recipient, if any;
95.27 	(10) a list of all financial assistance by all grantors for the project; and
95.28 	(11) other information the commissioner may request.
95.29 	A report must be filed no later than March 1 of each year for the previous year. The local 
95.30 	agency and the commissioner of Iron Range resources and rehabilitation Board must forward 
95.31 	copies of the reports received by recipients to the commissioner by April 1.
96.1 	(c) Financial assistance that is excluded from the definition of "business subsidy" by 
96.2 	section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting 
96.3 	requirements of this subdivision, except that the report of the recipient must include instead:
96.4 	(1) the type, public purpose, and amount of the financial assistance, and type of district 
96.5 	if the assistance is tax increment financing;
96.6 	(2) progress towards meeting goals stated in the assistance agreement and the public 
96.7 	purpose of the assistance;
96.8 	(3) if the agreement includes job creation, the hourly wage of each job created with 
96.9 	separate bands of wages;
96.10 	(4) if the agreement includes job creation, the sum of the hourly wages and cost of health 
96.11 	insurance provided by the employer with separate bands of wages;
96.12 	(5) the location of the recipient prior to receiving the assistance; and
96.13 	(6) other information the grantor requests.
96.14 	(d) If the recipient does not submit its report, the local government agency must mail 
96.15 	the recipient a warning within one week of the required filing date. If, after 14 days of the 
96.16 	postmarked date of the warning, the recipient fails to provide a report, the recipient must 
96.17 	pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The 
96.18 	maximum penalty shall not exceed $1,000.

96.19 	Sec. 14. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
96.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
96.21 	the meanings given them in this subdivision.
96.22 	(b) "Area development rate" means a rate schedule established by a utility that provides 
96.23 	customers within an area development zone service under a base utility rate schedule, except 
96.24 	that charges may be reduced from the base rate as agreed upon by the utility and the customer 
96.25 	consistent with this section.
96.26 	(c) "Area development zone" means a contiguous or noncontiguous area designated by 
96.27 	an authority or municipality for development or redevelopment and within which one of 
96.28 	the following conditions exists:
96.29 	(1) obsolete buildings not suitable for improvement or conversion or other identified 
96.30 	hazards to the health, safety, and general well-being of the community;
96.31 	(2) buildings in need of substantial rehabilitation or in substandard condition; or
97.1 	(3) low values and damaged investments.
97.2 	(d) "Authority" means a rural development financing authority established under sections 
97.3 	469.142 to 469.151; a housing and redevelopment authority established under sections 
97.4 	469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an 
97.5 	economic development authority established under sections 469.090 to 469.108; a 
97.6 	redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron 
97.7 	Range resources and rehabilitation Board established under section 298.22; a municipality 
97.8 	that is administering a development district created under sections 469.124 to 469.133 or 
97.9 	any special law; a municipality that undertakes a project under sections 469.152 to 469.165, 
97.10 	except a town located outside the metropolitan area as defined in section 473.121, subdivision 
97.11 	2, or with a population of 5,000 persons or less; or a municipality that exercises the powers 
97.12 	of a port authority under any general or special law.
97.13 	(e) "Municipality" means a city, however organized, and, with respect to a project 
97.14 	undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 
97.15 	sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
97.16 	to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, 
97.17 	also includes any county.

97.18 	Sec. 15. Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:
97.19 		Subdivision 1.Definition. For the purposes of this section, the term "innovative energy 
97.20 	project" means a proposed energy-generation facility or group of facilities which may be 
97.21 	located on up to three sites:
97.22 	(1) that makes use of an innovative generation technology utilizing coal as a primary 
97.23 	fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur 
97.24 	dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional 
97.25 	technologies;
97.26 	(2) that the project developer or owner certifies is a project capable of offering a long-term 
97.27 	supply contract at a hedged, predictable cost; and
97.28 	(3) that is designated by the commissioner of the Iron Range resources and rehabilitation 
97.29 	Board as a project that is located in the taconite tax relief area on a site that has substantial 
97.30 	real property with adequate infrastructure to support new or expanded development and 
97.31 	that has received prior financial and other support from the board.

98.1 	Sec. 16. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
98.2 		Subd. 8.Municipality. "Municipality" means a city, town, or township located in whole 
98.3 	or part within the area. If a municipality is located partly within and partly without the area, 
98.4 	the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to 
98.5 	taxation or taxing jurisdiction within the municipality are to the property or portion thereof 
98.6 	that is located in that portion of the municipality within the area, except that the fiscal 
98.7 	capacity of the municipality must be computed upon the basis of the valuation and population 
98.8 	of the entire municipality. A municipality shall be excluded from the area if its municipal 
98.9 	comprehensive zoning and planning policies conscientiously exclude most 
98.10 	commercial-industrial development, for reasons other than preserving an agricultural use. 
98.11 	The commissioner of Iron Range resources and rehabilitation Board and the commissioner 
98.12 	of revenue shall jointly make this determination annually and shall notify those municipalities 
98.13 	that are ineligible to participate in the tax base sharing program provided in this chapter for 
98.14 	the following year. Before making the determination, the commissioner of Iron Range 
98.15 	resources and rehabilitation must consult the Iron Range Resources and Rehabilitation 
98.16 	Board.

98.17 	Sec. 17. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
98.18 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
98.19 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
98.20 	rehabilitation Board, after consultation with the Iron Range Resources and Rehabilitation 
98.21 	Board, to be used for the purposes of the Iron Range school consolidation and cooperatively 
98.22 	operated school account under section 298.28, subdivision 7a.
98.23 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
98.24 	Iron Range resources and rehabilitation Board, after consultation with the Iron Range 
98.25 	Resources and Rehabilitation Board, has certified by June 30 that the Iron Range school 
98.26 	consolidation and cooperatively operated account has insufficient funds to make payments 
98.27 	as authorized under section 298.28, subdivision 7a.

98.28 	Sec. 18. Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:
98.29 		Subd. 8.Certification of values; payment. The administrative auditor shall determine 
98.30 	for each county the difference between the total levy on distribution value pursuant to 
98.31 	subdivision 3, clause (1), including the school fund allocation within the county and the 
98.32 	total tax on contribution value pursuant to subdivision 7, within the county. On or before 
98.33 	May 16 of each year, the administrative auditor shall certify the differences so determined 
99.1 	and the county's portion of the school fund allocation to each county auditor. In addition, 
99.2 	the administrative auditor shall certify to those county auditors for whose county the total 
99.3 	tax on contribution value exceeds the total levy on distribution value the settlement the 
99.4 	county is to make to the other counties of the excess of the total tax on contribution value 
99.5 	over the total levy on distribution value in the county. On or before June 15 and November 
99.6 	15 of each year, each county treasurer in a county having a total tax on contribution value 
99.7 	in excess of the total levy on distribution value shall pay one-half of the excess to the other 
99.8 	counties in accordance with the administrative auditor's certification. On or before June 15 
99.9 	and November 15 of each year, each county treasurer shall pay to the administrative auditor 
99.10 	that county's share of the school fund allocation. On or before December 1 of each year, 
99.11 	the administrative auditor shall pay the school fund allocation to the commissioner of Iron 
99.12 	Range resources and rehabilitation Board for deposit in the Iron Range school consolidation 
99.13 	and cooperatively operated account.

99.14 	Sec. 19. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
99.15 		Subdivision 1.Development. In any county where the county board by proper resolution 
99.16 	sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or 
99.17 	section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 
99.18 	with the approval of the board, after consultation with the Iron Range Resources and 
99.19 	Rehabilitation Board, may upon request of the county board assist said county in carrying 
99.20 	out any project for the long range development of its forest resources through matching of 
99.21 	funds or otherwise.

99.22 	Sec. 20. Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:
99.23 		Subd. 3.Not to affect commissioner of Iron Range resources and rehabilitation.
 99.24 	Nothing herein shall be construed to limit or abrogate the authority of the commissioner of 
99.25 	Iron Range resources and rehabilitation to give temporary assistance to any county in the 
99.26 	development of its land use program.

99.27 	Sec. 21. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
99.28 		Subd. 8.Commissioner. "Commissioner" means the commissioner of revenue of the 
99.29 	state of Minnesota, except that when used in sections 298.22 to 298.227 and 298.291 to 
99.30 	298.297, "commissioner" means the commissioner of Iron Range resources and rehabilitation.

100.1 	Sec. 22. Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision 
100.2 	to read:
100.3 		Subd. 11.Advisory board. "Advisory board" means the Iron Range Resources and 
100.4 	Rehabilitation Board, as established under section 298.22. The acronym "IRRRB" means 
100.5 	the advisory board.

100.6 	Sec. 23. Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:
100.7 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
100.8 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
100.9 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
100.10 	(1) five percent to the city or town within which the minerals or energy resources are 
100.11 	mined or extracted, or within which the concentrate was produced. If the mining and 
100.12 	concentration, or different steps in either process, are carried on in more than one taxing 
100.13 	district, the commissioner shall apportion equitably the proceeds among the cities and towns 
100.14 	by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction, 
100.15 	and the remainder to the concentrating plant and to the processes of concentration, and with 
100.16 	respect to each thereof giving due consideration to the relative extent of the respective 
100.17 	operations performed in each taxing district;
100.18 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
100.19 	section 298.282;
100.20 	(3) ten percent to the school district within which the minerals or energy resources are 
100.21 	mined or extracted, or within which the concentrate was produced. If the mining and 
100.22 	concentration, or different steps in either process, are carried on in more than one school 
100.23 	district, distribution among the school districts must be based on the apportionment formula 
100.24 	prescribed in clause (1);
100.25 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
100.26 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
100.27 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
100.28 	district indexes as follows: for each school district, its pupil units determined under section 
100.29 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
100.30 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
100.31 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
100.32 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
101.1 	portion of the distribution which its index bears to the sum of the indices for all school 
101.2 	districts that receive the distributions;
101.3 	(5) 20 percent to the county within which the minerals or energy resources are mined 
101.4 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
101.5 	or different steps in either process, are carried on in more than one county, distribution 
101.6 	among the counties must be based on the apportionment formula prescribed in clause (1), 
101.7 	provided that any county receiving distributions under this clause shall pay one percent of 
101.8 	its proceeds to the Range Association of Municipalities and Schools;
101.9 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed 
101.10 	as provided in sections 273.134 to 273.136;
101.11 	(7) five percent to the commissioner of Iron Range resources and rehabilitation Board
101.12 	for the purposes of section 298.22;
101.13 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
101.14 	(9) seven percent to the taconite environmental protection fund.
101.15 	The proceeds of the tax shall be distributed on July 15 each year.

101.16 	Sec. 24. Minnesota Statutes 2016, section 298.17, is amended to read:
101.17 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
101.18 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
101.19 	companies, corporations, and associations, however or for whatever purpose organized, 
101.20 	engaged in the business of mining or producing iron ore or other ores, when collected shall 
101.21 	be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 
101.22 	article X, section 3, in the manner following: 90 percent shall be deposited in the state 
101.23 	treasury and credited to the general fund of which four-ninths shall be used for the support 
101.24 	of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 
101.25 	by this section shall be deposited in the state treasury and credited to the general fund for 
101.26 	the general support of the university.
101.27 	(b) Of the money apportioned to the general fund by this section: (1) there is annually 
101.28 	appropriated and credited to the mining environmental and regulatory account in the special 
101.29 	revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax 
101.30 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
101.31 	Money in the mining environmental and regulatory account is appropriated annually to the 
101.32 	commissioner of natural resources to fund agency staff to work on environmental issues 
102.1 	and provide regulatory services for ferrous and nonferrous mining operations in this state. 
102.2 	Payment to the mining environmental and regulatory account shall be made by July 1 
102.3 	annually. The commissioner of natural resources shall execute an interagency agreement 
102.4 	with the Pollution Control Agency to assist with the provision of environmental regulatory 
102.5 	services such as monitoring and permitting required for ferrous and nonferrous mining 
102.6 	operations; (2) there is annually appropriated and credited to the Iron Range resources and 
102.7 	rehabilitation Board account in the special revenue fund an amount equal to that which 
102.8 	would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable 
102.9 	ton produced in the preceding calendar year, to be expended for the purposes of section 
102.10 	298.22; and (3) there is annually appropriated and credited to the Iron Range resources and 
102.11 	rehabilitation Board account in the special revenue fund for transfer to the Iron Range school 
102.12 	consolidation and cooperatively operated school account under section 298.28, subdivision 
102.13 	7a, an amount equal to that which would have been generated by a six cent tax imposed by 
102.14 	section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the 
102.15 	Iron Range resources and rehabilitation Board account shall be made by May 15 annually.
102.16 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
102.17 	provide environmental development grants to local governments located within any county 
102.18 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
102.19 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
102.20 	(b), or (ii) to provide economic development loans or grants to businesses located within 
102.21 	any such county, provided that the county board or an advisory group appointed by the 
102.22 	county board to provide recommendations on economic development shall make 
102.23 	recommendations to the commissioner of Iron Range resources and rehabilitation Board
102.24 	regarding the loans. Payment to the Iron Range resources and rehabilitation Board account 
102.25 	shall be made by May 15 annually.
102.26 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
102.27 	Koochiching County Economic Development Commission.

102.28 	Sec. 25. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
102.29 		Subdivision 1.The Office of Commissioner Department of Iron Range Resources 
102.30 	and Rehabilitation. (a) The Office of the Commissioner Department of Iron Range 
102.31 	Resources and Rehabilitation is created as an agency in the executive branch of state 
102.32 	government. The governor shall appoint the commissioner of Iron Range resources and 
102.33 	rehabilitation under section 15.06. The commissioner may expend amounts appropriated 
103.1 	to the commissioner for projects after consultation with the advisory board created under 
103.2 	subdivision 1a.
103.3 	(b) The commissioner may hold other positions or appointments that are not incompatible 
103.4 	with duties as commissioner of Iron Range resources and rehabilitation. The commissioner 
103.5 	may appoint a deputy commissioner. All expenses of the commissioner, including the 
103.6 	payment of staff and other assistance as may be necessary, must be paid out of the amounts 
103.7 	appropriated by section 298.28 or otherwise made available by law to the commissioner. 
103.8 	Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting 
103.9 	options available under section 471.345 when the commissioner determines it is in the best 
103.10 	interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. The 
103.11 	commissioner has the authority to reimburse any nongovernmental manager operating 
103.12 	state-owned facilities within the Giants Ridge Recreation Area for purchasing materials, 
103.13 	supplies, equipment, or other items used in the operations at such facilities.
103.14 	(c) When the commissioner determines that distress and unemployment exists or may 
103.15 	exist in the future in any county by reason of the removal of natural resources or a possibly 
103.16 	limited use of natural resources in the future and any resulting decrease in employment, the 
103.17 	commissioner may use whatever amounts of the appropriation made to the commissioner 
103.18 	of revenue in section 298.28 that are determined to be necessary and proper in the 
103.19 	development of the remaining resources of the county and in the vocational training and 
103.20 	rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 
103.21 	to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in 
103.22 	effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 
103.23 	section, "development of remaining resources" includes, but is not limited to, the promotion 
103.24 	of tourism.

103.25 	Sec. 26. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
103.26 		Subd. 1a.Iron Range Resources and Rehabilitation Board. (a) The Iron Range 
103.27 	Resources and Rehabilitation Board consists of the state senators and representatives elected 
103.28 	from state senatorial or legislative districts in which one-third or more of the residents reside 
103.29 	in a taconite assistance area as defined in section 273.1341. One additional state senator 
103.30 	shall also be appointed by the senate Subcommittee on Committees of the Committee on 
103.31 	Rules and Administration. All expenditures and projects made by the commissioner shall 
103.32 	first be submitted to the advisory board for approval. The advisory board shall recommend 
103.33 	approval or disapproval or modification of the expenditures and projects. The expenses of 
103.34 	the advisory board shall be paid by the state from the funds raised pursuant to this section. 
104.1 	Members of the advisory board may be reimbursed for expenses in the manner provided in 
104.2 	sections 3.099, subdivision 1, and 3.101, and may receive per diem payments during the 
104.3 	interims between legislative sessions in the manner provided in section 3.099, subdivision 
104.4 	1.
104.5 	The members shall be appointed in January of every odd-numbered year, and shall serve 
104.6 	until January of the next odd-numbered year. Vacancies on the board shall be filled in the 
104.7 	same manner as original members were chosen.
104.8 	(b) The advisory board must develop procedures to elect a chair who shall preside over 
104.9 	and convene meetings as often as necessary to conduct duties prescribed by this chapter. 
104.10 	The advisory board must meet at least two times per year to review the actions of the 
104.11 	commissioner.

104.12 	Sec. 27. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
104.13 	read:
104.14 		Subd. 1b.Evaluation of programs. (a) In evaluating programs proposed by the 
104.15 	commissioner, the advisory board must consider factors, including but not limited to the 
104.16 	extent to which the program:
104.17 	(1) contributes to increasing the effectiveness of promoting or managing Iron Range 
104.18 	economic and workforce development, community development, minerals and natural 
104.19 	resources development, and any other issue as determined by the advisory board; and
104.20 	(2) advances the strategic plan adopted under subdivision 1c.
104.21 	(b) In evaluating programs proposed by the commissioner, the advisory board must 
104.22 	consider factors, including but not limited to:
104.23 	(1) job creation or retention goals for the program, including but not limited to wages 
104.24 	and benefits; whether the jobs created are full time, part time, temporary, or permanent; and 
104.25 	whether the stated job creation or retention goals in the program proposal can be adequately 
104.26 	measured using methods established by the commissioner;
104.27 	(2) how and to what extent the program is expected to impact the economic climate of 
104.28 	the Iron Range resources and rehabilitation services area;
104.29 	(3) how the program would meet match requirements, if any; and
104.30 	(4) whether the program meets the written objectives, priorities, and policies established 
104.31 	by the commissioner.

105.1 	Sec. 28. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
105.2 	read:
105.3 		Subd. 1c.Strategic plan required. The commissioner, in consultation with the advisory 
105.4 	board, shall adopt a four-year strategic plan for making expenditures, including identifying 
105.5 	the priority areas for funding for the term of the commissioner's appointment. The strategic 
105.6 	plan must be reviewed annually. The strategic plan must have clearly stated short- and 
105.7 	long-term goals and strategies for expenditures, provide measurable outcomes for 
105.8 	expenditures, and determine areas of emphasis for funding.

105.9 	Sec. 29. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
105.10 		Subd. 5a.Forest trust. The commissioner, upon approval by the board after consultation 
105.11 	with the advisory board, may purchase forest lands in the taconite assistance area defined 
105.12 	in under section 273.1341 with funds specifically authorized for the purchase. The acquired 
105.13 	forest lands must be held in trust for the benefit of the citizens of the taconite assistance 
105.14 	area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed 
105.15 	and developed for recreation and economic development purposes. The commissioner, upon 
105.16 	approval by the after consultation with the advisory board, may sell forest lands purchased 
105.17 	under this subdivision if the board findscommissioner determines that the sale advances 
105.18 	the purposes of the trust. Proceeds derived from the management or sale of the lands and 
105.19 	from the sale of timber or removal of gravel or other minerals from these forest lands shall 
105.20 	be deposited into an Iron Range Miners' Memorial Forest account that is established within 
105.21 	the state financial accounts. Funds may be expended from the account upon approval by 
105.22 	the commissioner, after consultation with the advisory board, to purchase, manage, 
105.23 	administer, convey interests in, and improve the forest lands. With approval by the board,
105.24 	After consultation with the advisory board, the commissioner may transfer money in the 
105.25 	Iron Range Miners' Memorial Forest account may be transferred into the corpus of the 
105.26 	Douglas J. Johnson economic protection trust fund established under sections 298.291 to 
105.27 	298.294. The property acquired under the authority granted by this subdivision and income 
105.28 	derived from the property or the operation or management of the property are exempt from 
105.29 	taxation by the state or its political subdivisions while held by the forest trust.

105.30 	Sec. 30. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
105.31 		Subd. 6.Private entity participation. The commissioner, after consultation with the 
105.32 	advisory board, may acquire an equity interest in any project for which it the commissioner
105.33 	provides funding. The commissioner may, after consultation with the advisory board,
106.1 	establish, participate in the management of, and dispose of the assets of charitable 
106.2 	foundations, nonprofit limited liability companies, and nonprofit corporations associated 
106.3 	with any project for which it the commissioner provides funding, including specifically, 
106.4 	but without limitation, a corporation within the meaning of section 317A.011, subdivision 
106.5 	6.

106.6 	Sec. 31. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
106.7 		Subd. 10.Sale or privatization of functions. The commissioner of Iron Range resources 
106.8 	and rehabilitation may not sell or privatize the IronworldMinnesota Discovery Center or 
106.9 	Giants Ridge Golf and Ski Resort without prior approval by the advisory board.

106.10 	Sec. 32. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
106.11 		Subd. 11.Budgeting. The commissioner of Iron Range resources and rehabilitation 
106.12 	shall annually prepare a budget for operational expenditures, programs, and projects, and 
106.13 	submit it to the Iron Range Resources and Rehabilitation Board. After the budget is approved 
106.14 	by the advisory board and the governor, the commissioner may spend money in accordance 
106.15 	with the approved budget.

106.16 	Sec. 33. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
106.17 	read:
106.18 		Subd. 13.Grants and loans for economic development projects; requirements. (a) 
106.19 	Prior to awarding any grants or approving loans from any fund or account from which the 
106.20 	commissioner has the authority under law to expend money, the commissioner must evaluate 
106.21 	applications based on criteria including, but not limited to:
106.22 	(1) job creation or retention goals for the project, including but not limited to wages and 
106.23 	benefits, and whether the jobs created are full time, part time, temporary, or permanent;
106.24 	(2) whether the applicant's stated job creation or retention goals can be adequately 
106.25 	measured using methods established by the commissioner;
106.26 	(3) how and to what extent the project proposed by the applicant is expected to impact 
106.27 	the economic climate of the Iron Range resources and rehabilitation services area;
106.28 	(4) how the applicant would meet match requirements, if any; and
106.29 	(5) whether the project for which a grant or loan application has been submitted meets 
106.30 	the written objectives, priorities, and policies established by the commissioner.
107.1 	(b) The commissioner, if appropriate, may include incentives in loan and grant award 
107.2 	agreements to promote and assist grant recipients in achieving the stated job creation and 
107.3 	retention objectives established by the commissioner.
107.4 	(c) For all loans and grants awarded from funds under the commissioner's authority 
107.5 	pursuant to this chapter, the commissioner must:
107.6 	(1) maintain a database for tracking loan and grant awards;
107.7 	(2) maintain an objective mechanism for measuring job creation and retention;
107.8 	(3) verify achievement of job creation and retention goals by grant and loan recipients;
107.9 	(4) monitor grant and loan awards to ensure that projects comply with applicable Iron 
107.10 	Range resources and rehabilitation policies; and
107.11 	(5) verify that grant or loan recipients have met applicable matching fund requirements.

107.12 	Sec. 34. Minnesota Statutes 2016, section 298.221, is amended to read:
107.13 	298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
107.14 	(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant 
107.15 	to the terms of any contract entered into by the state under authority of section 298.22 and 
107.16 	any fees which may, in the discretion of the commissioner of Iron Range resources and 
107.17 	rehabilitation, be charged in connection with any project pursuant to that section as amended, 
107.18 	shall be deposited in the state treasury to the credit of the Iron Range resources and 
107.19 	rehabilitation Board account in the special revenue fund and are hereby appropriated for 
107.20 	the purposes of section 298.22.
107.21 	(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner 
107.22 	of the Iron Range resources and rehabilitation Board for payment of advertising contracts 
107.23 	if the commissioner determines that the merchandise can be used for special event prizes 
107.24 	or mementos at facilities operated by the board commissioner. Nothing in this paragraph 
107.25 	authorizes the commissioner or a member of the advisory board to receive merchandise for 
107.26 	personal use.
107.27 	(c) All fees charged by the commissioner in connection with public use of the state-owned 
107.28 	ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived 
107.29 	by the commissioner from the operation or lease of those facilities and from the lease, sale, 
107.30 	or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be 
107.31 	deposited into an Iron Range resources and rehabilitation Board account that is created 
107.32 	within the state enterprise fund. All funds deposited in the enterprise fund account are 
108.1 	appropriated to the commissioner to be expended, subject to approval by the board, and 
108.2 	may only be used, after consultation with the advisory board, as follows:
108.3 	(1) to pay costs associated with the construction, equipping, operation, repair, or 
108.4 	improvement of the Giants Ridge Recreation Area facilities or lands;
108.5 	(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs 
108.6 	associated with the financing of the facilities; and
108.7 	(3) to pay the costs of any other project authorized under section 298.22.

108.8 	Sec. 35. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
108.9 		Subd. 3.Project approval. All projects authorized by this section shall be submitted 
108.10 	by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 
108.11 	by the board The commissioner may authorize a project under this section only after 
108.12 	consulting the advisory board. Prior to the commencement of a project involving the exercise 
108.13 	by the commissioner of any authority of sections 469.174 to 469.179, the governing body 
108.14 	of each municipality in which any part of the project is located and the county board of any 
108.15 	county containing portions of the project not located in an incorporated area shall by majority 
108.16 	vote approve or disapprove the project. Any project approved by the board commissioner
108.17 	and the applicable governing bodies, if any, together with detailed information concerning 
108.18 	the project, its costs, the sources of its funding, and the amount of any bonded indebtedness 
108.19 	to be incurred in connection with the project, shall be transmitted to the governor, who shall 
108.20 	approve, disapprove, or return the proposal for additional consideration within 30 days of 
108.21 	receipt. No project authorized under this section shall be undertaken, and no obligations 
108.22 	shall be issued and no tax increments shall be expended for a project authorized under this 
108.23 	section until the project has been approved by the governor.

108.24 	Sec. 36. Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:
108.25 		Subd. 6.Fee setting. Fees for admission to or use of facilities operated by the 
108.26 	commissioner of Iron Range resources and rehabilitation Board that have been established 
108.27 	according to prevailing market conditions and to recover operating costs need not be set by 
108.28 	rule.

108.29 	Sec. 37. Minnesota Statutes 2016, section 298.2212, is amended to read:
108.30 	298.2212 INVESTMENT OF FUNDS.
109.1 	All funds credited to the Iron Range resources and rehabilitation Board account in the 
109.2 	special revenue fund for the purposes of section 298.22 must be invested pursuant to law. 
109.3 	The net interest and dividends from the investments are included and become part of the 
109.4 	funds available for purposes of section 298.22.

109.5 	Sec. 38. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
109.6 		Subdivision 1.Creation; purposes. A fund called the taconite environmental protection 
109.7 	fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast 
109.8 	Minnesota located within the taconite assistance area defined in section 273.1341, that are 
109.9 	adversely affected by the environmentally damaging operations involved in mining taconite 
109.10 	and iron ore and producing iron ore concentrate and for the purpose of promoting the 
109.11 	economic development of northeast Minnesota. The taconite environmental protection fund 
109.12 	shall be used for the following purposes:
109.13 	(1) to initiate investigations into matters the commissioner of Iron Range resources and 
109.14 	rehabilitation Board determines are in need of study and which will determine the 
109.15 	environmental problems requiring remedial action;
109.16 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for 
109.17 	by state law;
109.18 	(3) local economic development projects but only if those projects are approved by the 
109.19 	board, and public works, including construction of sewer and water systems located within 
109.20 	the taconite assistance area defined in section 273.1341;
109.21 	(4) monitoring of mineral industry related health problems among mining employees; 
109.22 	and
109.23 	(5) local public works projects under section 298.227, paragraph (c).

109.24 	Sec. 39. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
109.25 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall be 
109.26 	administered by the commissioner of the Iron Range Resources and Rehabilitation Board, 
109.27 	who must consult with the advisory board before expending any funds. The commissioner 
109.28 	shall by September 1 of each year submit to the board a list of projects to be funded from 
109.29 	the taconite area environmental protection fund, with such supporting information including 
109.30 	description of the projects, plans, and cost estimates as may be necessary.
109.31 	(b) Each year no less than one-half of the amounts deposited into the taconite 
109.32 	environmental protection fund must be used for public works projects, including construction 
110.1 	of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range 
110.2 	Resources and Rehabilitation Board may waive the requirements of this paragraph.
110.3 	(c) Upon approval by the board, the list of projects approved under this subdivision shall 
110.4 	be submitted to the governor by November 1 of each year. By December 1 of each year, 
110.5 	the governor shall approve or disapprove, or return for further consideration, each project. 
110.6 	Funds for a project may be expended only upon approval of the project by the board and 
110.7 	the governor. The commissioner may submit supplemental projects to the board and governor 
110.8 	for approval at any time.

110.9 	Sec. 40. Minnesota Statutes 2016, section 298.227, is amended to read:
110.10 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
110.11 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
110.12 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
110.13 	commissioner of Iron Range resources and rehabilitation Board in a separate taconite 
110.14 	economic development fund for each taconite and direct reduced ore producer. Money from 
110.15 	the fund for each producer shall be released by the commissioner after review by a joint 
110.16 	committee consisting of an equal number of representatives of the salaried employees and 
110.17 	the nonsalaried production and maintenance employees of that producer. The District 11 
110.18 	director of the United States Steelworkers of America, on advice of each local employee 
110.19 	president, shall select the employee members. In nonorganized operations, the employee 
110.20 	committee shall be elected by the nonsalaried production and maintenance employees. The 
110.21 	review must be completed no later than six months after the producer presents a proposal 
110.22 	for expenditure of the funds to the committee. The funds held pursuant to this section may 
110.23 	be released only for workforce development and associated public facility improvement, 
110.24 	or for acquisition of plant and stationary mining equipment and facilities for the producer 
110.25 	or for research and development in Minnesota on new mining, or taconite, iron, or steel 
110.26 	production technology, but only if the producer provides a matching expenditure equal to 
110.27 	the amount of the distribution to be used for the same purpose beginning with distributions 
110.28 	in 2014. Effective for proposals for expenditures of money from the fund beginning May 
110.29 	26, 2007, the commissioner may not release the funds before the next scheduled meeting 
110.30 	of the board. If a proposed expenditure is not approved by the commissioner, after 
110.31 	consultation with the advisory board, the funds must be deposited in the Taconite 
110.32 	Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money 
110.33 	which has been released from the fund prior to May 26, 2007 to procure haulage trucks, 
110.34 	mobile equipment, or mining shovels, and the producer removes the piece of equipment 
111.1 	from the taconite tax relief area defined in section 273.134 within ten years from the date 
111.2 	of receipt of the money from the fund, a portion of the money granted from the fund must 
111.3 	be repaid to the taconite economic development fund. The portion of the money to be repaid 
111.4 	is 100 percent of the grant if the equipment is removed from the taconite tax relief area 
111.5 	within 12 months after receipt of the money from the fund, declining by ten percent for 
111.6 	each of the subsequent nine years during which the equipment remains within the taconite 
111.7 	tax relief area. If a taconite production facility is sold after operations at the facility had 
111.8 	ceased, any money remaining in the fund for the former producer may be released to the 
111.9 	purchaser of the facility on the terms otherwise applicable to the former producer under this 
111.10 	section. If a producer fails to provide matching funds for a proposed expenditure within six 
111.11 	months after the commissioner approves release of the funds, the funds are available for 
111.12 	release to another producer in proportion to the distribution provided and under the conditions 
111.13 	of this section. Any portion of the fund which is not released by the commissioner within 
111.14 	one year of its deposit in the fund shall be divided between the taconite environmental 
111.15 	protection fund created in section 298.223 and the Douglas J. Johnson economic protection 
111.16 	trust fund created in section 298.292 for placement in their respective special accounts. 
111.17 	Two-thirds of the unreleased funds shall be distributed to the taconite environmental 
111.18 	protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
111.19 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
111.20 	distributions and the review process, an amount equal to ten cents per taxable ton of 
111.21 	production in 2007, for distribution in 2008 only, that would otherwise be distributed under 
111.22 	paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 
111.23 	wood product facility located in the taconite tax relief area and in a county that contains a 
111.24 	city of the first class. This amount must be deducted from the distribution under paragraph 
111.25 	(a) for which a matching expenditure by the producer is not required. The granting of the 
111.26 	loan or grant is subject to approval by the board. If the money is provided as a loan, interest 
111.27 	must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 
111.28 	Repayments of the loan and interest, if any, must be deposited in the taconite environment 
111.29 	protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 
111.30 	paragraph by July 1, 2012, the amount that had been made available for the loan under this 
111.31 	paragraph must be transferred to the taconite environment protection fund under sections 
111.32 	298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 
111.33 	that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 
111.34 	pro rata basis.
112.1 	(c) Repayment or transfer of money to the taconite environmental protection fund under 
112.2 	paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation 
112.3 	Board for public works projects in house legislative districts in the same proportion as 
112.4 	taxable tonnage of production in 2007 in each house legislative district, for distribution in 
112.5 	2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 
112.6 	Notwithstanding any other law to the contrary, expenditures under this paragraph do not 
112.7 	require approval by the governor. For purposes of this paragraph, "house legislative districts" 
112.8 	means the legislative districts in existence on May 15, 2009.

112.9 	Sec. 41. Minnesota Statutes 2016, section 298.27, is amended to read:
112.10 	298.27 COLLECTION AND PAYMENT OF TAX.
112.11 	The taxes provided by section 298.24 shall be paid directly to each eligible county and 
112.12 	the commissioner of Iron Range resources and rehabilitation Board. The commissioner of 
112.13 	revenue shall notify each producer of the amount to be paid each recipient prior to February 
112.14 	15. Every person subject to taxes imposed by section 298.24 shall file a correct report 
112.15 	covering the preceding year. The report must contain the information required by the 
112.16 	commissioner of revenue. The report shall be filed by each producer on or before February 
112.17 	1. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be 
112.18 	paid on or before February 24. A remittance equal to the remaining total tax required to be 
112.19 	paid hereunder shall be paid on or before August 24. On or before February 25 and August 
112.20 	25, the county auditor shall make distribution of the payments previously received by the 
112.21 	county in the manner provided by section 298.28. Reports shall be made and hearings held 
112.22 	upon the determination of the tax in accordance with procedures established by the 
112.23 	commissioner of revenue. The commissioner of revenue shall have authority to make 
112.24 	reasonable rules as to the form and manner of filing reports necessary for the determination 
112.25 	of the tax hereunder, and by such rules may require the production of such information as 
112.26 	may be reasonably necessary or convenient for the determination and apportionment of the 
112.27 	tax. All the provisions of the occupation tax law with reference to the assessment and 
112.28 	determination of the occupation tax, including all provisions for appeals from or review of 
112.29 	the orders of the commissioner of revenue relative thereto, but not including provisions for 
112.30 	refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent 
112.31 	herewith. If any person subject to section 298.24 shall fail to make the report provided for 
112.32 	in this section at the time and in the manner herein provided, the commissioner of revenue 
112.33 	shall in such case, upon information possessed or obtained, ascertain the kind and amount 
112.34 	of ore mined or produced and thereon find and determine the amount of the tax due from 
112.35 	such person. There shall be added to the amount of tax due a penalty for failure to report 
113.1 	on or before February 1, which penalty shall equal ten percent of the tax imposed and be 
113.2 	treated as a part thereof.
113.3 	If any person responsible for making a tax payment at the time and in the manner herein 
113.4 	provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount 
113.5 	so due, which penalty shall be treated as part of the tax due.
113.6 	In the case of any underpayment of the tax payment required herein, there may be added 
113.7 	and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.
113.8 	A person having a liability of $120,000 or more during a calendar year must remit all 
113.9 	liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The 
113.10 	funds transfer payment date, as defined in section 336.4A-401, must be on or before the 
113.11 	date the tax is due. If the date the tax is due is not a funds transfer business day, as defined 
113.12 	in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the 
113.13 	funds transfer business day next following the date the tax is due.

113.14 	Sec. 42. Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:
113.15 		Subd. 7.Iron Range resources and rehabilitation Board account. For the 1998 
113.16 	distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and 
113.17 	rehabilitation Board account for the purposes of section 298.22. That amount shall be 
113.18 	increased for distribution years 1999 through 2014 and for distribution in 2018 and 
113.19 	subsequent years in the same proportion as the increase in the implicit price deflator as 
113.20 	provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision 
113.21 	shall be expended within or for the benefit of the taconite assistance area defined in section 
113.22 	273.1341. No part of the fund provided in this subdivision may be used to provide loans 
113.23 	for the operation of private business unless the loan is approved by the governor.

113.24 	Sec. 43. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
113.25 		Subd. 7a.Iron Range school consolidation and cooperatively operated school account.
 113.26 	(a) The following amounts must be allocated to the commissioner of Iron Range resources 
113.27 	and rehabilitation Board to be deposited in the Iron Range school consolidation and 
113.28 	cooperatively operated school account that is hereby created:
113.29 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 
113.30 	under section 298.24; and
113.31 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
113.32 	under section 298.24;
114.1 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
114.2 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
114.3 	proceeds attributable to the increase in the implicit price deflator as provided in section 
114.4 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
114.5 	Johnson economic protection trust fund;
114.6 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 
114.7 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
114.8 	298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third 
114.9 	to be distributed to the Douglas J. Johnson economic protection trust fund; and
114.10 	(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased 
114.11 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
114.12 	298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining 
114.13 	one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
114.14 	(4) any other amount as provided by law.
114.15 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
114.16 	and shall be made only to provide disbursements to assist school districts with the payment 
114.17 	of bonds that were issued for qualified school projects, or for any other school disbursement 
114.18 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
114.19 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
114.20 	"qualified school projects" means school projects within the taconite assistance area as 
114.21 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
114.22 	and (2) approved by the commissioner of education pursuant to section 123B.71.
114.23 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
114.24 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
114.25 	any reduction in debt service equalization aid that the school district qualifies for in that 
114.26 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
114.27 	qualified for in fiscal year 2018.
114.28 	(d) No expenditure under this section shall be made unless approved by seven members 
114.29 	of the commissioner of Iron Range resources and rehabilitation after consultation with the 
114.30 	Iron Range Resources and Rehabilitation Board.

114.31 	Sec. 44. Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:
114.32 		Subd. 9c. Distribution; city of Eveleth. 0.20 cent per taxable ton must be paid to the 
114.33 	city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the 
115.1 	Hockey Hall of Fame, provided that it continues to operate in that city, and provided that 
115.2 	the city of Eveleth certifies to the St. Louis County auditor that it has received donations 
115.3 	for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame 
115.4 	ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and 
115.5 	the governing body of the city determines that it is unlikely to resume operation there within 
115.6 	a six-month period, the distribution under this subdivision shall be made to the commissioner 
115.7 	of Iron Range resources and rehabilitation Board.

115.8 	Sec. 45. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
115.9 		Subd. 9d.Iron Range higher education account. Five cents per taxable ton must be 
115.10 	allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron 
115.11 	Range higher education account that is hereby created, to be used for higher education 
115.12 	programs conducted at educational institutions in the taconite assistance area defined in 
115.13 	section 273.1341. The Iron Range Higher Education committee under section 298.2214,
115.14 	and the commissioner of Iron Range resources and rehabilitation Board, after consultation 
115.15 	with the advisory board, must approve all expenditures from the account.

115.16 	Sec. 46. Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:
115.17 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24 which 
115.18 	remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 
115.19 	commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 
115.20 	interest earned on all money distributed under this section prior to distribution, shall be 
115.21 	divided between the taconite environmental protection fund created in section 298.223 and 
115.22 	the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows: 
115.23 	Two-thirds to the taconite environmental protection fund and one-third to the Douglas J. 
115.24 	Johnson economic protection trust fund. The proceeds shall be placed in the respective 
115.25 	special accounts.
115.26 	(b) There shall be distributed to each city, town, and county the amount that it received 
115.27 	under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however, 
115.28 	that the amount distributed in 1981 to the unorganized territory number 2 of Lake County 
115.29 	and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company 
115.30 	will be distributed in 1982 and subsequent years to the unorganized territory number 2 of 
115.31 	Lake County and the towns of Beaver Bay and Stony River based on the miles of track of 
115.32 	Erie Mining Company in each taxing district.
116.1 	(c) There shall be distributed to the Iron Range resources and rehabilitation Board account
116.2 	the amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount 
116.3 	distributed under this paragraph shall be expended within or for the benefit of the taconite 
116.4 	assistance area defined in section 273.1341.
116.5 	(d) There shall be distributed to each school district 62 percent of the amount that it 
116.6 	received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

116.7 	Sec. 47. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
116.8 		Subd. 2.Use of money. Money in the Douglas J. Johnson economic protection trust 
116.9 	fund may be used for the following purposes:
116.10 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
116.11 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
116.12 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
116.13 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
116.14 	percent or an interest rate three percentage points less than a full faith and credit obligation 
116.15 	of the United States government of comparable maturity, at the time that the loan is approved;
116.16 	(2) to fund reserve accounts established to secure the payment when due of the principal 
116.17 	of and interest on bonds issued pursuant to section 298.2211;
116.18 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
116.19 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
116.20 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
116.21 	alternative energy sources;
116.22 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
116.23 	entities that are engaging in, or that will engage in, projects or programs that have the 
116.24 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
116.25 	or enterprise unless at least two other unrelated investors make investments of at least 
116.26 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
116.27 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
116.28 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
116.29 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
116.30 	which the investment is made or to any individual who owns more than 40 percent of the 
116.31 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
116.32 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
116.33 	interests in it. For purposes of determining the limitations under this clause, the amount of 
117.1 	investments made by an investor other than the Douglas J. Johnson economic protection 
117.2 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
117.3 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
117.4 	economic protection trust fund; and
117.5 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
117.6 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
117.7 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
117.8 	commissioner upon approval by the, after consultation with the advisory board. The net 
117.9 	proceeds must be deposited in the trust fund for the purposes and uses of this section.
117.10 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
117.11 	assistance area defined in section 273.1341.

117.12 	Sec. 48. Minnesota Statutes 2016, section 298.296, is amended to read:
117.13 	298.296 OPERATION OF FUND.
117.14 		Subdivision 1.Project approval. The board and commissioner shall by August 1 of 
117.15 	each year prepare a list of projects to be funded from the Douglas J. Johnson economic 
117.16 	protection trust with necessary supporting information including description of the projects, 
117.17 	plans, and cost estimates. These Projects shall be consistent with the priorities established 
117.18 	in section 298.292 and shall not be approved by the board unless it commissioner unless 
117.19 	the commissioner, after consultation with the advisory board, finds that:
117.20 	(a) the project will materially assist, directly or indirectly, the creation of additional 
117.21 	long-term employment opportunities;
117.22 	(b) the prospective benefits of the expenditure exceed the anticipated costs; and
117.23 	(c) in the case of assistance to private enterprise, the project will serve a sound business 
117.24 	purpose.
117.25 	Each project must be approved by over one-half of all of the members of the board and 
117.26 	the commissioner of Iron Range resources and rehabilitation. The list of projects shall be 
117.27 	submitted to the governor, who shall, by November 15 of each year, approve or disapprove, 
117.28 	or return for further consideration, each project. The money for a project may be expended 
117.29 	only upon approval of the project by the governor. The board may submit supplemental 
117.30 	projects for approval at any time.
117.31 		Subd. 2.Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 
117.32 	projects and for administration of the trust fund only from the net interest, earnings, and 
118.1 	dividends arising from the investment of the trust at any time, including net interest, earnings, 
118.2 	and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for 
118.3 	use in fiscal year 1983, except that any amount required to be paid out of the trust fund to 
118.4 	provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and 
118.5 	to make school bond payments and payments to recipients of taconite production tax proceeds 
118.6 	pursuant to section 298.225, may be taken from the corpus of the trust.
118.7 	(b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus 
118.8 	of the trust may be made available for use as provided in subdivision 4, and up to $10,000,000 
118.9 	from the corpus of the trust may be made available for use as provided in section 298.2961.
118.10 	(c)(b) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 
118.11 	on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 
118.12 	made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 
118.13 	section 17, may be expended on projects. Funds The commissioner may be expended expend 
118.14 	funds for projects under this paragraph only if the project:
118.15 	(1) the project is for the purposes established under section 298.292, subdivision 1, 
118.16 	clause (1) or (2); and
118.17 	(2) is approved by two-thirds of all of the members of the board the commissioner has 
118.18 	consulted with the advisory board.
118.19 	No money made available under this paragraph or paragraph (d) (c) can be used for 
118.20 	administrative or operating expenses of the Department of Iron Range Resources and 
118.21 	Rehabilitation Board or expenses relating to any facilities owned or operated by the board
118.22 	commissioner on May 18, 2002.
118.23 	(d) Upon recommendation by a unanimous vote of all members of the board, (c) The 
118.24 	commissioner may spend amounts in addition to those authorized under paragraphs (a), and
118.25 	(b), and (c) may be expended on projects described in section 298.292, subdivision 1, only 
118.26 	after consultation with the advisory board.
118.27 	(e)(d) Annual administrative costs, not including detailed engineering expenses for the 
118.28 	projects, shall not exceed five percent of the net interest, dividends, and earnings arising 
118.29 	from the trust in the preceding fiscal year.
118.30 	(f)(e) Principal and interest received in repayment of loans made pursuant to this section, 
118.31 	and earnings on other investments made under section 298.292, subdivision 2, clause (4), 
118.32 	shall be deposited in the state treasury and credited to the trust. These receipts are 
118.33 	appropriated to the board for the purposes of sections 298.291 to 298.298 298.297.
119.1 	(g)(f) Additionally, notwithstanding section 298.293, upon the approval of the board,
119.2 	the commissioner, after consultation with the advisory board, may expend money from the 
119.3 	corpus of the trust may be expanded to purchase forest lands within the taconite assistance 
119.4 	area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5).
119.5 		Subd. 3.Administration. The commissioner and staff of the Iron Range resources and 
119.6 	rehabilitation Board shall administer the program under which funds are expended pursuant 
119.7 	to sections 298.292 to 298.298 298.297.
119.8 		Subd. 4.Temporary loan authority. (a) The board may recommend thatAfter 
119.9 	consultation with the advisory board, the commissioner may use up to $7,500,000 from the 
119.10 	corpus of the trust may be used for loans, loan guarantees, grants, or equity investments as 
119.11 	provided in this subdivision. The money would be available for loans for construction and 
119.12 	equipping of facilities constituting (1) a value added iron products plant, which may be 
119.13 	either a new plant or a facility incorporated into an existing plant that produces iron upgraded 
119.14 	to a minimum of 75 percent iron content or any iron alloy with a total minimum metallic 
119.15 	content of 90 percent; or (2) a new mine or minerals processing plant for any mineral subject 
119.16 	to the net proceeds tax imposed under section 298.015. A loan or loan guarantee under this 
119.17 	paragraph may not exceed $5,000,000 for any facility.
119.18 	(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends, 
119.19 	and earnings arising from the investment of the trust after June 30, 1996, to be used for 
119.20 	grants, loans, loan guarantees, or equity investments for the purposes set forth in paragraph 
119.21 	(a). This amount must be reserved until it is used as described in this subdivision.
119.22 	(c)(b) Additionally, the board may recommend that the commissioner, after consultation 
119.23 	with the advisory board, may use up to $5,500,000 from the corpus of the trust may be used
119.24 	for additional grants, loans, loan guarantees, or equity investments for the purposes set forth 
119.25 	in paragraph (a).
119.26 	(d)(c) The board commissioner, after consultation with the advisory board, may require 
119.27 	that it the fund receive an equity percentage in any project to which it contributes under this 
119.28 	section.

119.29 	Sec. 49. Minnesota Statutes 2016, section 298.2961, is amended to read:
119.30 	298.2961 PRODUCER GRANTS.
119.31 		Subdivision 1.Appropriation. (a) $10,000,000 is appropriated from the Douglas J. 
119.32 	Johnson economic protection trust fund to a special account in the taconite area environmental 
120.1 	protection fund for grants to producers on a project-by-project basis as provided in this 
120.2 	section.
120.3 	(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are 
120.4 	appropriated for grants to producers on a project-by-project basis as provided in this section.
120.5 		Subd. 2.Projects; approval. (a) Projects funded must be for:
120.6 	(1) environmentally unique reclamation projects; or
120.7 	(2) pit or plant repairs, expansions, or modernizations other than for a value added iron 
120.8 	products plant.
120.9 	(b) To be proposed by the board, a project must be approved by the board. The money 
120.10 	for a project may be spent only upon approval of the project by the governor. The board 
120.11 	may submit supplemental projects for approval at any time The commissioner may approve 
120.12 	a project only after consultation with the advisory board.
120.13 	(c) The commissioner, after consultation with the advisory board, may require that it
120.14 	the fund receive an equity percentage in any project to which it contributes under this section.
120.15 		Subd. 3.Redistribution. (a) If a taconite production facility is sold after operations at 
120.16 	the facility had ceased, any money remaining in the taconite environmental fund for the 
120.17 	former producer may be released to the purchaser of the facility on the terms otherwise 
120.18 	applicable to the former producer under this section.
120.19 	(b) Any portion of the taconite environmental fund that is not released by the 
120.20 	commissioner within three years of its deposit in the taconite environmental fund shall be 
120.21 	divided between the taconite environmental protection fund created in section 298.223 and 
120.22 	the Douglas J. Johnson economic protection trust fund created in section 298.292 for 
120.23 	placement in their respective special accounts. Two-thirds of the unreleased funds must be 
120.24 	distributed to the taconite environmental protection fund and one-third to the Douglas J. 
120.25 	Johnson economic protection trust fund.
120.26 		Subd. 4.Grant and loan fund. (a) A fund is established to receive distributions under 
120.27 	section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 
120.28 	Any grant or loan made under this subdivision must be approved by the commissioner, after 
120.29 	consultation with the advisory board, established under section 298.22.
120.30 	(b) All distributions received in 2009 and subsequent years are allocated for projects 
120.31 	under section 298.223, subdivision 1.

121.1 	Sec. 50. Minnesota Statutes 2016, section 298.297, is amended to read:
121.2 	298.297 ADVISORY COMMITTEES.
121.3 	Before submission of a project to the advisory board, the commissioner of Iron Range 
121.4 	resources and rehabilitation shall appoint a technical advisory committee consisting of one 
121.5 	or more persons who are knowledgeable in areas related to the objectives of the proposal. 
121.6 	Members of the committees shall be compensated as provided in section 15.059, subdivision 
121.7 	3. The advisory board shall not act make recommendations on a proposal until it has received 
121.8 	the evaluation and recommendations of the technical advisory committee or until 15 days 
121.9 	have elapsed since the proposal was transmitted to the advisory committee, whichever 
121.10 	occurs first.

121.11 	Sec. 51. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
121.12 		Subd. 2.Unmined iron ore; valuation petition. When in the opinion of the duly 
121.13 	constituted authorities of a taxing district there are in existence reserves of unmined iron 
121.14 	ore located in such district, these authorities may petition the commissioner of Iron Range 
121.15 	resources and rehabilitation Board for authority to petition the county assessor to verify the 
121.16 	existence of such reserves and to ascertain the value thereof by drilling in a manner consistent 
121.17 	with established engineering and geological exploration methods, in order that such taxing 
121.18 	district may be able to forecast in a proper manner its future economic and fiscal potentials.
121.19 	The commissioner may grant the authority to petition only after consultation with the 
121.20 	advisory board.

121.21 	Sec. 52. Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:
121.22 		Subd. 5.Payment of costs; reimbursement. The cost of such exploration or drilling 
121.23 	plus any damages to the property which may be assessed by the district court shall be paid 
121.24 	by the commissioner of Iron Range resources and rehabilitation Board from amounts 
121.25 	appropriated to that board the commissioner under section 298.22. The commissioner of 
121.26 	Iron Range resources and rehabilitation Board shall be reimbursed for one-half of the 
121.27 	amounts thus expended. Such reimbursement shall be made by the taxing districts in the 
121.28 	proportion that each such taxing district's levy on the property involved bears to the total 
121.29 	levy on such property. Such reimbursement shall be made to the commissioner of Iron 
121.30 	Range resources and rehabilitation Board in the manner provided by section 298.221.

122.1 	Sec. 53. Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:
122.2 		Subd. 6.Refusal to reimburse; reduction of other payments. If any taxing district 
122.3 	refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor 
122.4 	is hereby authorized to reduce payments required to be made by the county to such taxing 
122.5 	district under other provisions of law. Thereafter the auditor shall draw a warrant, which 
122.6 	shall be deposited with the state treasury in accordance with section 298.221, to the credit 
122.7 	of the commissioner of Iron Range resources and rehabilitation Board.

122.8 	Sec. 54. Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:
122.9 		Subd. 6c.Water access sites. Any claim based upon the construction, operation, or 
122.10 	maintenance by a municipality of a water access site created by the commissioner of Iron 
122.11 	Range resources and rehabilitation Board. A water access site under this subdivision that 
122.12 	provides access to an idled, water filled mine pit also includes the entire water filled area 
122.13 	of the pit, and, further, claims related to a mine pit water access site under this subdivision 
122.14 	include those based upon the caving or slumping of mine pit walls.

122.15 	Sec. 55. Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:
122.16 		Subd. 9.Local government unit. "Local government unit" means a statutory or home 
122.17 	rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation 
122.18 	agency, regional development commission, or a federally designated economic development 
122.19 	district.

122.20 	Sec. 56. Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:
122.21 		Subd. 21.Preliminary resolution. "Preliminary resolution" means a resolution adopted 
122.22 	by the governing body or board of the issuer, or in the case of theby the commissioner of 
122.23 	Iron Range resources and rehabilitation Board by the commissioner. The resolution must 
122.24 	express a preliminary intention of the issuer to issue obligations for a specific project, 
122.25 	identify the proposed project, and disclose the proposed amount of qualified bonds to be 
122.26 	issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify 
122.27 	a specific project.

122.28 	Sec. 57. Laws 2010, chapter 389, article 5, section 7, is amended to read:
122.29 	Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.
 122.30 		Subdivision 1.Additional taxes authorized. Notwithstanding Minnesota Statutes, 
122.31 	section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city 
123.1 	of Biwabik, upon approval both by its governing body and by the vote of at least seven 
123.2 	members of the Iron Range Resources and Rehabilitation Board, may impose any or all of 
123.3 	the taxes described in this section.
123.4 		Subd. 2.Use of proceeds. The proceeds of any taxes imposed under this section, less 
123.5 	refunds and costs of collection, must be deposited into the Iron Range Resources and 
123.6 	Rehabilitation Board account enterprise fund created under the provisions of Minnesota 
123.7 	Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the 
123.8 	commissioner of the Iron Range resources and rehabilitation Board, upon approval by the 
123.9 	vote of at least seven members of after consultation with the Iron Range Resources and 
123.10 	Rehabilitation Board, to pay costs for the construction, renovation, improvement, expansion, 
123.11 	and maintenance of public recreational facilities located in those portions of the city within 
123.12 	the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, 
123.13 	subdivision 7, or to pay any principal, interest, or premium on any bond issued to finance 
123.14 	the construction, renovation, improvement, or expansion of such public recreational facilities.
123.15 		Subd. 3.Lodging tax. (a) The city of Biwabik, upon approval both by its governing 
123.16 	body and by the vote of at least seven members of the Iron Range Resources and 
123.17 	Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the 
123.18 	gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This 
123.19 	tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may 
123.20 	be imposed only on gross lodging receipts generated within the Giants Ridge Recreation 
123.21 	Area as defined in Minnesota Statutes, section 298.22, subdivision 7.
123.22 	(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax 
123.23 	imposed under paragraph (a), the change must be approved by both the governing body of 
123.24 	the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after 
123.25 	the commissioner consults with the Iron Range Resources and Rehabilitation Board.
123.26 		Subd. 4.Admissions and recreation tax. (a) The city of Biwabik, upon approval both 
123.27 	by its governing body and by the vote of at least seven members of the Iron Range Resources 
123.28 	and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent 
123.29 	on admission receipts to entertainment and recreational facilities and on receipts from the 
123.30 	rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined 
123.31 	in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes, 
123.32 	section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration, 
123.33 	collection, and enforcement of the tax authorized in this subdivision.
124.1 	(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an 
124.2 	exemption for purchases of season tickets or passes.
124.3 	(c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax 
124.4 	imposed under paragraph (a), the change must be approved by both the governing body of 
124.5 	the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after 
124.6 	the commissioner consults with the Iron Range Resources and Rehabilitation Board.
124.7 		Subd. 5.Food and beverage tax. (a) The city of Biwabik, upon approval both by its 
124.8 	governing body and by the vote of at least seven members of the Iron Range Resources and 
124.9 	Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than 
124.10 	one percent on gross receipts of food and beverages sold whether it is consumed on or off 
124.11 	the premises by restaurants and places of refreshment as defined by resolution of the city 
124.12 	within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, 
124.13 	subdivision 7. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions 
124.14 	2 and 3, govern the imposition, administration, collection, and enforcement of the tax 
124.15 	authorized in this subdivision.
124.16 	(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax 
124.17 	imposed under paragraph (a), the change must be approved by both the governing body of 
124.18 	the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after 
124.19 	the commissioner consults with the Iron Range Resources and Rehabilitation Board.

124.20 	EFFECTIVE DATE. This section is effective August 1, 2017, without local approval 
124.21 	pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

124.22 	Sec. 58. DEPARTMENT OF IRON RANGE RESOURCES AND 
124.23 	REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM 
124.24 	AUTHORIZATION.
 124.25 	(a) "Commissioner" as used in this section means the commissioner of Iron Range 
124.26 	resources and rehabilitation unless otherwise specified.
124.27 	(b) Notwithstanding any law to the contrary, the commissioner, in consultation with the 
124.28 	commissioner of management and budget, shall offer a targeted early separation incentive 
124.29 	program for employees of the commissioner who have attained the age of 60 years or who 
124.30 	have received credit for at least 30 years of allowable service under the provisions of 
124.31 	Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation 
124.32 	incentive program for employees of the commissioner whose positions are in support of 
125.1 	operations at Giants Ridge and will be eliminated if the department no longer directly 
125.2 	manages Giants Ridge operations.
125.3 	(c) The early separation incentive program may include one or more of the following:
125.4 	(1) employer-paid postseparation health, medical, and dental insurance until age 65; and
125.5 	(2) cash incentives that may, but are not required to be, used to purchase additional years 
125.6 	of service credit through the Minnesota State Retirement System, to the extent that the 
125.7 	purchases are otherwise authorized by law.
125.8 	(d) The commissioner shall establish eligibility requirements for employees to receive 
125.9 	an incentive. The commissioner must exclude from eligibility for the incentive program 
125.10 	employees having less than 20 years of allowable service who would otherwise qualify for 
125.11 	the incentive program.
125.12 	(e) The commissioner, consistent with the established program provisions under paragraph 
125.13 	(b), and with the eligibility requirements under paragraph (f), may designate specific 
125.14 	programs or employees as eligible to be offered the incentive program.
125.15 	(f) Acceptance of the offered incentive must be voluntary on the part of the employee 
125.16 	and must be in writing. The incentive may only be offered at the sole discretion of the 
125.17 	commissioner.
125.18 	(g) The cost of the incentive is payable solely by funds made available to the 
125.19 	commissioner by law, but only on prior approval of the expenditures by the commissioner, 
125.20 	after consultation with the Iron Range Resources and Rehabilitation Board.
125.21 	(h) Unilateral implementation of this section by the commissioner is not an unfair labor 
125.22 	practice under Minnesota Statutes, chapter 179A.

125.23 	EFFECTIVE DATE. This section is effective the day following final enactment. This 
125.24 	section is repealed July 30, 2018.

125.25 	Sec. 59. REVISOR'S INSTRUCTION.
 125.26 	The revisor of statutes, with cooperation from the House Research Department and the 
125.27 	Senate Counsel, Research and Fiscal Analysis Office, shall prepare legislation that makes 
125.28 	conforming changes in accordance with the provisions of this article. The revisor shall 
125.29 	submit the proposal, in a form ready for introduction, during the 2018 regular legislative 
125.30 	session to the chairs and ranking minority members of the senate and house of representatives 
125.31 	committees with jurisdiction over jobs and economic development.

126.1 	Sec. 60. REPEALER.
 126.2 	Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, are 
126.3 	repealed.

126.4 	ARTICLE 5
126.5 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
126.6 	POLICY

126.7 	Section 1. Minnesota Statutes 2016, section 268.046, subdivision 3, is amended to read:
126.8 		Subd. 3.Penalties; application. (a) Any person that violates the requirements of this 
126.9 	section and any taxpaying employer that violates subdivision 1, paragraph (b), or any 
126.10 	nonprofit or government employer that violates subdivision 2, paragraph (b), is subject to 
126.11 	the penalties under section 268.184, subdivision 1a. Penalties are credited to the trust fund.
126.12 	(b) Section 268.051, subdivision 4, does not apply to contracts under this section. This 
126.13 	section does not limit or prevent the application of section 268.051, subdivision 4, to any 
126.14 	other transactions or acquisitions involving the taxpaying employer. This section does not 
126.15 	limit or prevent the application of section 268.051, subdivision 4a.
126.16 	(c) An assignment of an account upon the execution of a contract under this section and 
126.17 	a termination of a contract with the corresponding assignment of the account is not considered
126.18 	a separation from employment of any worker covered by the contract. Nothing under this 
126.19 	subdivision causes the person to be liable for any amounts past due under this chapter from 
126.20 	the taxpaying employer or the nonprofit or government employer.
126.21 	(d) This section applies to, but is not limited to, persons registered under section 79.255, 
126.22 	but does not apply to persons that obtain An exemption from registration under section 
126.23 	79.255, subdivision 9, does not determine the application of this section.

126.24 	Sec. 2. Minnesota Statutes 2016, section 268.065, subdivision 2, is amended to read:
126.25 		Subd. 2.Employee leasing company, professional employer organization, or similar 
126.26 	person. (a) A person whose work force consists of 50 percent or more of workers provided 
126.27 	by an employee leasing company, professional employer organization, or similar person 
126.28 	for a fee, is jointly and severally liable for the unpaid amounts that are due under this chapter 
126.29 	or section 116L.20 on the wages paid on the contract with the employee leasing company, 
126.30 	professional employer organization, or similar person.
126.31 	(b) This subdivision applies to, but is not limited to, persons registered under section 
126.32 	79.255, but does not apply to agreements with persons that obtain An exemption from 
127.1 	registration under section 79.255, subdivision 9, does not determine the application of this 
127.2 	section.

127.3 	Sec. 3. Minnesota Statutes 2016, section 268.085, subdivision 13, is amended to read:
127.4 		Subd. 13.Suspension from employment. (a) An applicant who has been suspended 
127.5 	from employment without pay for 30 calendar days or less, as a result of employment 
127.6 	misconduct or aggravated employment misconduct as defined under section 268.095, 
127.7 	subdivision 6,is ineligible for unemployment benefits beginning the Sunday of the week 
127.8 	that the applicant was suspended and continuing for the duration of the suspension.
127.9 	(b) A suspension from employment without pay that is of indefinite duration or is for 
127.10 	more than 30 calendar days is considered, at the time the suspension begins, a discharge 
127.11 	from employment under subject to section 268.095, subdivision 5.
127.12 	(c) A suspension from employment with pay, regardless of duration, is not considered
127.13 	a separation from employment and the applicant is ineligible for unemployment benefits 
127.14 	for the duration of the suspension with pay.

127.15 	Sec. 4. Minnesota Statutes 2016, section 268.095, subdivision 5, is amended to read:
127.16 		Subd. 5.Discharge defined. (a) A discharge from employment occurs when any words 
127.17 	or actions by an employer would lead a reasonable employee to believe that the employer 
127.18 	will no longer allow the employee to work for the employer in any capacity. A layoff because 
127.19 	of lack of work is a discharge.
127.20 	(b) A suspension from employment without pay that is of an indefinite duration or is 
127.21 	for more than 30 calendar days is considered a discharge at the time the suspension begins.
127.22 	(b) (c) When determining if an applicant was discharged, the theory of a constructive 
127.23 	discharge does not apply.
127.24 	(c) (d) An employee who gives notice of intention to quit the employment and is not 
127.25 	allowed by the employer to work the entire notice period is discharged from the employment 
127.26 	as of the date the employer will no longer allow the employee to work. If the discharge 
127.27 	occurs within 30 calendar days before the intended date of quitting, then, as of the intended 
127.28 	date of quitting, the separation from employment is a quit from employment subject to 
127.29 	subdivision 1.
127.30 	(d) (e) The end of a job assignment with the client of a staffing service is a discharge 
127.31 	from employment with the staffing service unless subdivision 2, paragraph (e), applies.

128.1 	Sec. 5. Minnesota Statutes 2016, section 268.101, subdivision 2, is amended to read:
128.2 		Subd. 2.Determination. (a) The commissioner must determine any issue of ineligibility 
128.3 	raised by information required from an applicant under subdivision 1, paragraph (a) or (c), 
128.4 	and send to the applicant and any involved employer, by mail or electronic transmission, a 
128.5 	document titled a determination of eligibility or a determination of ineligibility, as is 
128.6 	appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge 
128.7 	of the applicant must state the effect on the employer under section 268.047. A determination 
128.8 	must be made in accordance with this paragraph even if a notified employer has not raised 
128.9 	the issue of ineligibility.
128.10 	(b) The commissioner must determine any issue of ineligibility raised by an employer 
128.11 	and send to the applicant and that employer, by mail or electronic transmission, a document 
128.12 	titled a determination of eligibility or a determination of ineligibility as is appropriate. The 
128.13 	determination on an issue of ineligibility as a result of a quit or discharge of the applicant 
128.14 	must state the effect on the employer under section 268.047.
128.15 	If a base period employer:
128.16 	(1) was not the applicant's most recent employer before the application for unemployment 
128.17 	benefits;
128.18 	(2) did not employ the applicant during the six calendar months before the application 
128.19 	for unemployment benefits; and
128.20 	(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant 
128.21 	within ten calendar days of notification under subdivision 1, paragraph (b);
128.22 	then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two 
128.23 	weeks following the week that the issue of ineligibility as a result of a quit or discharge of 
128.24 	the applicant was raised by the employer.
128.25 	A communication from an employer must specifically set out why the applicant should 
128.26 	be determined ineligible for unemployment benefits for that communication to be considered 
128.27 	to have raised an issue of ineligibility for purposes of this section. A statement of "protest" 
128.28 	or a similar term without more information does not constitute raising an issue of ineligibility 
128.29 	for purposes of this section.
128.30 	(c) Subject to section 268.031, an issue of ineligibility is determined based upon that 
128.31 	information required of an applicant, any information that may be obtained from an applicant 
128.32 	or employer, and information from any other source.
129.1 	(d) Regardless of the requirements of this subdivision, the commissioner is not required 
129.2 	to send to an applicant a copy of the determination where the applicant has satisfied a period 
129.3 	of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
129.4 	(e) The commissioner may department is authorized to issue a determination on an issue 
129.5 	of ineligibility within 24 months from the establishment of a benefit account based upon 
129.6 	information from any source, even if the issue of ineligibility was not raised by the applicant 
129.7 	or an employer.
129.8 	If an applicant obtained unemployment benefits through fraud misrepresentation under 
129.9 	section 268.18, subdivision 2, the department is authorized to issue a determination of 
129.10 	ineligibility may be issued within 48 months of the establishment of the benefit account.
129.11 	If the department has filed an intervention in a worker's compensation matter under 
129.12 	section 176.361, the department is authorized to issue a determination of ineligibility within 
129.13 	48 months of the establishment of the benefit account.
129.14 	(f) A determination of eligibility or determination of ineligibility is final unless an appeal 
129.15 	is filed by the applicant or employer within 20 calendar days after sending. The determination 
129.16 	must contain a prominent statement indicating the consequences of not appealing. 
129.17 	Proceedings on the appeal are conducted in accordance with section 268.105.
129.18 	(g) An issue of ineligibility required to be determined under this section includes any 
129.19 	question regarding the denial or allowing of unemployment benefits under this chapter 
129.20 	except for issues under section 268.07. An issue of ineligibility for purposes of this section 
129.21 	includes any question of effect on an employer under section 268.047.

129.22 	ARTICLE 6
129.23 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
129.24 	HOUSEKEEPING

129.25 	Section 1. Minnesota Statutes 2016, section 268.035, subdivision 20, is amended to read:
129.26 		Subd. 20.Noncovered employment. "Noncovered employment" means:
129.27 	(1) employment for the United States government or an instrumentality thereof, including 
129.28 	military service;
129.29 	(2) employment for a state, other than Minnesota, or a political subdivision or 
129.30 	instrumentality thereof;
129.31 	(3) employment for a foreign government;
129.32 	(4) employment covered under the federal Railroad Unemployment Insurance Act;
130.1 	(5) employment for a church or convention or association of churches, or a nonprofit 
130.2 	organization operated primarily for religious purposes that is operated, supervised, controlled, 
130.3 	or principally supported by a church or convention or association of churches;
130.4 	(6) employment for an elementary or secondary school with a curriculum that includes 
130.5 	religious education that is operated by a church, a convention or association of churches, 
130.6 	or a nonprofit organization that is operated, supervised, controlled, or principally supported 
130.7 	by a church or convention or association of churches;
130.8 	(6) (7) employment for Minnesota or a political subdivision, or a nonprofit organization, 
130.9 	of a duly ordained or licensed minister of a church in the exercise of a ministry or by a 
130.10 	member of a religious order in the exercise of duties required by the order;
130.11 	(7) (8) employment for Minnesota or a political subdivision, or a nonprofit organization, 
130.12 	of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the 
130.13 	purpose of carrying out a program of rehabilitation for individuals whose earning capacity 
130.14 	is impaired by age or physical or mental deficiency or injury or a program providing 
130.15 	"sheltered" work for individuals who because of an impaired physical or mental capacity 
130.16 	cannot be readily absorbed in the competitive labor market. This clause applies only to 
130.17 	services performed in a facility certified by the Rehabilitation Services Branch of the 
130.18 	department or in a day training or habilitation program licensed by the Department of Human 
130.19 	Services;
130.20 	(8) (9) employment for Minnesota or a political subdivision, or a nonprofit organization, 
130.21 	of an individual receiving work relief or work training as part of an unemployment work 
130.22 	relief or work training program assisted or financed in whole or in part by any federal agency 
130.23 	or an agency of a state or political subdivision thereof. This clause does not apply to programs 
130.24 	that require unemployment benefit coverage for the participants;
130.25 	(9) (10) employment for Minnesota or a political subdivision, as an elected official, a 
130.26 	member of a legislative body, or a member of the judiciary;
130.27 	(10) (11) employment as a member of the Minnesota National Guard or Air National 
130.28 	Guard;
130.29 	(11) (12) employment for Minnesota or a political subdivision, or instrumentality thereof, 
130.30 	of an individual serving on a temporary basis in case of fire, flood, tornado, or similar 
130.31 	emergency;
131.1 	(12) (13) employment as an election official or election worker for Minnesota or a 
131.2 	political subdivision, if the compensation for that employment was less than $1,000 in a 
131.3 	calendar year;
131.4 	(13) (14) employment for Minnesota that is a major policy-making or advisory position 
131.5 	in the unclassified service;
131.6 	(14) (15) employment for Minnesota in an unclassified position established under section 
131.7 	43A.08, subdivision 1a;
131.8 	(15) (16) employment for a political subdivision of Minnesota that is a nontenured major 
131.9 	policy making or advisory position;
131.10 	(16) (17) domestic employment in a private household, local college club, or local chapter 
131.11 	of a college fraternity or sorority, if the wages paid in any calendar quarter in either the 
131.12 	current or prior calendar year to all individuals in domestic employment totaled less than 
131.13 	$1,000.
131.14 	"Domestic employment" includes all service in the operation and maintenance of a 
131.15 	private household, for a local college club, or local chapter of a college fraternity or sorority 
131.16 	as distinguished from service as an employee in the pursuit of an employer's trade or business;
131.17 	(17) (18) employment of an individual by a son, daughter, or spouse, and employment 
131.18 	of a child under the age of 18 by the child's father or mother;
131.19 	(18) (19) employment of an inmate of a custodial or penal institution;
131.20 	(19) (20) employment for a school, college, or university, by a student who is enrolled 
131.21 	and whose primary relation to the school, college, or university is as a student. This does 
131.22 	not include an individual whose primary relation to the school, college, or university is as 
131.23 	an employee who also takes courses;
131.24 	(20) (21) employment of an individual who is enrolled as a student in a full-time program 
131.25 	at a nonprofit or public educational institution that maintains a regular faculty and curriculum 
131.26 	and has a regularly organized body of students in attendance at the place where its educational 
131.27 	activities are carried on, taken for credit at the institution, that combines academic instruction 
131.28 	with work experience, if the employment is an integral part of the program, and the institution 
131.29 	has so certified to the employer, except that this clause does not apply to employment in a 
131.30 	program established for or on behalf of an employer or group of employers;
131.31 	(21) (22) employment of university, college, or professional school students in an 
131.32 	internship or other training program with the city of St. Paul or the city of Minneapolis 
131.33 	under Laws 1990, chapter 570, article 6, section 3;
132.1 	(22) (23) employment for a hospital by a patient of the hospital. "Hospital" means an 
132.2 	institution that has been licensed by the Department of Health as a hospital;
132.3 	(23) (24) employment as a student nurse for a hospital or a nurses' training school by 
132.4 	an individual who is enrolled and is regularly attending classes in an accredited nurses' 
132.5 	training school;
132.6 	(24) (25) employment as an intern for a hospital by an individual who has completed a 
132.7 	four-year course in an accredited medical school;
132.8 	(25) (26) employment as an insurance salesperson, by other than a corporate officer, if 
132.9 	all the wages from the employment is solely by way of commission. The word "insurance" 
132.10 	includes an annuity and an optional annuity;
132.11 	(26) (27) employment as an officer of a township mutual insurance company or farmer's 
132.12 	mutual insurance company under chapter 67A;
132.13 	(27) (28) employment of a corporate officer, if the officer directly or indirectly, including 
132.14 	through a subsidiary or holding company, owns 25 percent or more of the employer 
132.15 	corporation, and employment of a member of a limited liability company, if the member 
132.16 	directly or indirectly, including through a subsidiary or holding company, owns 25 percent 
132.17 	or more of the employer limited liability company;
132.18 	(28) (29) employment as a real estate salesperson, other than a corporate officer, if all 
132.19 	the wages from the employment is solely by way of commission;
132.20 	(29) (30) employment as a direct seller as defined in United States Code, title 26, section 
132.21 	3508;
132.22 	(30) (31) employment of an individual under the age of 18 in the delivery or distribution 
132.23 	of newspapers or shopping news, not including delivery or distribution to any point for 
132.24 	subsequent delivery or distribution;
132.25 	(31) (32) casual employment performed for an individual, other than domestic 
132.26 	employment under clause (16) (17), that does not promote or advance that employer's trade 
132.27 	or business;
132.28 	(32) (33) employment in "agricultural employment" unless it is "covered agricultural 
132.29 	employment" under subdivision 11; or
132.30 	(33) (34) if employment during one-half or more of any pay period was covered 
132.31 	employment, all the employment for the pay period is covered employment; but if during 
132.32 	more than one-half of any pay period the employment was noncovered employment, then 
133.1 	all of the employment for the pay period is noncovered employment. "Pay period" means 
133.2 	a period of not more than a calendar month for which a payment or compensation is ordinarily 
133.3 	made to the employee by the employer.

133.4 	Sec. 2. Minnesota Statutes 2016, section 268.035, subdivision 21d, is amended to read:
133.5 		Subd. 21d.Staffing service. A "staffing service" is an employer whose business involves 
133.6 	employing individuals directly for the purpose of furnishing temporary assignment workers 
133.7 	to clients support or supplement the workforce of the business that is a client of the staffing 
133.8 	service.

133.9 	Sec. 3. Minnesota Statutes 2016, section 268.051, subdivision 9, is amended to read:
133.10 		Subd. 9.Assessments, fees, and surcharges; treatment. Any assessment, fee, or 
133.11 	surcharge imposed under the Minnesota Unemployment Insurance Law is treated the same 
133.12 	as, and considered as, a tax. Any assessment, fee, or surcharge is subject to the same 
133.13 	collection procedures that apply to past due taxes.

133.14 	Sec. 4. Minnesota Statutes 2016, section 268.07, subdivision 3b, is amended to read:
133.15 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
133.16 	unemployment benefits is effective the Sunday of the calendar week that the application 
133.17 	was filed. An application for unemployment benefits may be backdated one calendar week 
133.18 	before the Sunday of the week the application was actually filed if the applicant requests 
133.19 	the backdating within seven calendar days of the date the application is filed. An application 
133.20 	may be backdated only if the applicant was unemployed during the period of the backdating. 
133.21 	If an individual attempted to file an application for unemployment benefits, but was prevented 
133.22 	from filing an application by the department, the application is effective the Sunday of the 
133.23 	calendar week the individual first attempted to file an application.
133.24 	(b) A benefit account established under subdivision 2 is effective the date the application 
133.25 	for unemployment benefits was effective.
133.26 	(c) A benefit account, once established, may later be withdrawn only if:
133.27 	(1) the applicant has not been paid any unemployment benefits on that benefit account; 
133.28 	and
133.29 	(2) a new application for unemployment benefits is filed and a new benefit account is 
133.30 	established at the time of the withdrawal.
134.1 	A benefit account may be withdrawn after the expiration of the benefit year, and the 
134.2 	new work requirements of subdivision 2, paragraph (b), do not apply if the applicant was 
134.3 	not paid any unemployment benefits on the benefit account that is being withdrawn.
134.4 	A determination or amended determination of eligibility or ineligibility issued under 
134.5 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
134.6 	effect and is not voided by the withdrawal of the benefit account.
134.7 	(d) An application for unemployment benefits is not allowed before the Sunday following 
134.8 	the expiration of the benefit year on a prior benefit account. Except as allowed under 
134.9 	paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks. 
134.10 	This paragraph applies to benefit accounts established under any federal law or the law of 
134.11 	any other state.

134.12 	Sec. 5. Minnesota Statutes 2016, section 268.085, subdivision 1, is amended to read:
134.13 		Subdivision 1.Eligibility conditions. An applicant may be eligible to receive 
134.14 	unemployment benefits for any week if:
134.15 	(1) the applicant has filed a continued request for unemployment benefits for that week 
134.16 	under section 268.0865;
134.17 	(2) the week for which unemployment benefits are requested is in the applicant's benefit 
134.18 	year;
134.19 	(3) the applicant was unemployed as defined in section 268.035, subdivision 26;
134.20 	(4) the applicant was available for suitable employment as defined in subdivision 15. 
134.21 	The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the 
134.22 	applicant is unavailable for suitable employment. This clause does not apply to an applicant 
134.23 	who is in reemployment assistance training, or each day the applicant is on jury duty or 
134.24 	serving as an election judge;
134.25 	(5) the applicant was actively seeking suitable employment as defined in subdivision 
134.26 	16. This clause does not apply to an applicant who is in reemployment assistance training 
134.27 	or who was on jury duty throughout the week;
134.28 	(6) the applicant has served a nonpayable period of one week that the applicant is 
134.29 	otherwise eligible for some amount of unemployment benefits. This clause does not apply 
134.30 	if the applicant would have been eligible for federal disaster unemployment assistance 
134.31 	because of a disaster in Minnesota, but for the applicant's establishment of a benefit account 
134.32 	under section 268.07; and
135.1 	(7) the applicant has been participating in reemployment assistance services, such as 
135.2 	development of, and adherence to, a work search plan, if the applicant has been directed to 
135.3 	participate by the commissioner. This clause does not apply if the applicant has good cause 
135.4 	for failing to participate. "Good cause" is a reason that would have prevented a reasonable 
135.5 	person acting with due diligence from participating.

135.6 	Sec. 6. Minnesota Statutes 2016, section 268.085, subdivision 13a, is amended to read:
135.7 		Subd. 13a.Leave of absence. (a) An applicant on a voluntary leave of absence is 
135.8 	ineligible for unemployment benefits for the duration of the leave of absence. An applicant 
135.9 	on an involuntary leave of absence is not ineligible under this subdivision.
135.10 	A leave of absence is voluntary when work that the applicant can then perform is available 
135.11 	with the applicant's employer but the applicant chooses not to work. A medical leave of 
135.12 	absence is not presumed to be voluntary.
135.13 	(b) A period of vacation requested by the applicant, paid or unpaid, is considered a 
135.14 	voluntary leave of absence. A vacation period assigned by an employer under: (1) a uniform 
135.15 	vacation shutdown; (2) a collective bargaining agreement; or (3) an established employer 
135.16 	policy, is considered an involuntary leave of absence.
135.17 	(c) A leave of absence is a temporary stopping of work that has been approved by the 
135.18 	employer. A voluntary leave of absence is not considered a quit and an involuntary leave 
135.19 	of absence is not considered a discharge from employment for purposes of section 268.095.
135.20 	(d) An applicant who is on a paid leave of absence, whether the leave of absence is 
135.21 	voluntary or involuntary, is ineligible for unemployment benefits for the duration of the 
135.22 	leave.
135.23 	(e) This subdivision applies to a leave of absence from a base period employer, an 
135.24 	employer during the period between the end of the base period and the effective date of the 
135.25 	benefit account, or an employer during the benefit year.

135.26 	Sec. 7. Minnesota Statutes 2016, section 268.105, subdivision 2, is amended to read:
135.27 		Subd. 2.Request for reconsideration. (a) Any party, or the commissioner, may within 
135.28 	20 calendar days of the sending of the unemployment law judge's decision under subdivision 
135.29 	1a, file a request for reconsideration asking the judge to reconsider that decision.
135.30 	(b) Upon a request for reconsideration having been filed, the chief unemployment law 
135.31 	judge must send a notice, by mail or electronic transmission, to all parties that a request for 
135.32 	reconsideration has been filed. The notice must inform the parties:
136.1 	(1) that reconsideration is the procedure for the unemployment law judge to correct any 
136.2 	factual or legal mistake in the decision, or to order an additional hearing when appropriate;
136.3 	(2) of the opportunity to provide comment on the request for reconsideration, and the 
136.4 	right under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered 
136.5 	or received into evidence at the hearing;
136.6 	(3) that providing specific comments as to a perceived factual or legal mistake in the 
136.7 	decision, or a perceived mistake in procedure during the hearing, will assist the 
136.8 	unemployment law judge in deciding the request for reconsideration;
136.9 	(4) of the right to obtain any comments and submissions provided by any other party 
136.10 	regarding the request for reconsideration; and
136.11 	(5) of the provisions of paragraph (c) regarding additional evidence.
136.12 	This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not 
136.13 	mean the unemployment law judge has decided the request for reconsideration was timely 
136.14 	filed.
136.15 	(c) In deciding a request for reconsideration, the unemployment law judge must not 
136.16 	consider any evidence that was not submitted at the hearing, except for purposes of 
136.17 	determining whether to order an additional hearing.
136.18 	The unemployment law judge must order an additional hearing if a party shows that 
136.19 	evidence which was not submitted at the hearing:
136.20 	(1) would likely change the outcome of the decision and there was good cause for not 
136.21 	having previously submitted that evidence; or
136.22 	(2) would show that the evidence that was submitted at the hearing was likely false and 
136.23 	that the likely false evidence had an effect on the outcome of the decision.
136.24 	"Good cause" for purposes of this paragraph is a reason that would have prevented a 
136.25 	reasonable person acting with due diligence from submitting the evidence.
136.26 	(d) If the party who filed the request for reconsideration failed to participate in the 
136.27 	hearing, the unemployment law judge must issue an order setting aside the decision and 
136.28 	ordering an additional hearing if the party who failed to participate had good cause for 
136.29 	failing to do so. The party who failed to participate in the hearing must be informed of the 
136.30 	requirement to show good cause for failing to participate. If the unemployment law judge 
136.31 	determines that good cause for failure to participate has not been shown, the judge must 
136.32 	state that in the decision issued under paragraph (f).
137.1 	Submission of a written statement at the hearing does not constitute participation for 
137.2 	purposes of this paragraph.
137.3 	"Good cause" for purposes of this paragraph is a reason that would have prevented a 
137.4 	reasonable person acting with due diligence from participating in the hearing.
137.5 	(e) A request for reconsideration must be decided by the unemployment law judge who 
137.6 	issued the decision under subdivision 1a unless that judge:
137.7 	(1) is no longer employed by the department;
137.8 	(2) is on an extended or indefinite leave; or
137.9 	(3) has been removed from the proceedings by the chief unemployment law judge.
137.10 	(f) If a request for reconsideration is timely filed, the unemployment law judge must 
137.11 	issue:
137.12 	(1) a decision affirming the findings of fact, reasons for decision, and decision issued 
137.13 	under subdivision 1a;
137.14 	(2) a decision modifying the findings of fact, reasons for decision, and decision under 
137.15 	subdivision 1a; or
137.16 	(3) an order setting aside the findings of fact, reasons for decision, and decision issued 
137.17 	under subdivision 1a, and ordering an additional hearing.
137.18 	The unemployment law judge must issue a decision dismissing the request for 
137.19 	reconsideration as untimely if the judge decides the request for reconsideration was not 
137.20 	filed within 20 calendar days after the sending of the decision under subdivision 1a.
137.21 	The unemployment law judge must send to all parties, by mail or electronic transmission, 
137.22 	the decision or order issued under this subdivision. A decision affirming or modifying the 
137.23 	previously issued findings of fact, reasons for decision, and decision, or a decision dismissing 
137.24 	the request for reconsideration as untimely, is the final decision on the matter and is binding 
137.25 	on the parties unless judicial review is sought under subdivision 7.

137.26 	ARTICLE 7
137.27 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
137.28 	TECHNICAL

137.29 	Section 1. Minnesota Statutes 2016, section 268.031, subdivision 1, is amended to read:
137.30 		Subdivision 1.Standard of proof. All issues of fact under the Minnesota Unemployment 
137.31 	Insurance Law are determined by a preponderance of the evidence.

138.1 	Sec. 2. Minnesota Statutes 2016, section 268.035, subdivision 15, is amended to read:
138.2 		Subd. 15.Employment. (a) "Employment" means service performed by:
138.3 	(1) an individual who is considered an employee under the common law of 
138.4 	employer-employee and not considered an independent contractor;
138.5 	(2) an officer of a corporation;
138.6 	(3) a member of a limited liability company who is considered an employee under the 
138.7 	common law of employer-employee; or
138.8 	(4) product demonstrators in retail stores or other locations to aid in the sale of products. 
138.9 	The person that pays the wages is considered the employer; or.
138.10 	(5) an individual who performs services for a person for compensation, as:
138.11 	(i) an agent-driver or commission-driver engaged in distributing meat products, vegetable 
138.12 	products, fruit products, beverages, or laundry or dry cleaning services; or
138.13 	(ii) a traveling or city salesperson, other than as an agent-driver or commission-driver, 
138.14 	engaged full-time in the solicitation on behalf of the person, of orders from wholesalers, 
138.15 	retailers, contractors, or operators of hotels, restaurants, or other similar establishments for 
138.16 	merchandise for resale or supplies for use in their business operations.
138.17 	This clause applies only if the contract of service provides that substantially all of the 
138.18 	services are to be performed personally by the individual, and the services are part of a 
138.19 	continuing relationship with the person for whom the services are performed, and the 
138.20 	individual does not have a substantial investment in facilities used in connection with the 
138.21 	performance of the services, other than facilities for transportation.
138.22 	(b) Employment does not include service as a juror.
138.23 	(c) Construction industry employment is defined in subdivision 9a. Trucking and 
138.24 	messenger/courier industry employment is defined in subdivision 25b. Rules on determining 
138.25 	worker employment status are described under Minnesota Rules, chapter 3315.

138.26 	Sec. 3. Minnesota Statutes 2016, section 268.035, subdivision 23, is amended to read:
138.27 		Subd. 23.State's average annual and average weekly wage. (a) On or before June 30 
138.28 	of each year, the commissioner must calculate, from wage detail reports under section 
138.29 	268.044, the state's average annual wage and the state's average weekly wage in the following 
138.30 	manner:
139.1 	(1) the sum of the total monthly covered employment reported by all employers for the 
139.2 	prior calendar year is divided by 12 to calculate the average monthly covered employment.;
139.3 	(2) the sum of the total wages paid for all covered employment reported by all employers 
139.4 	for the prior calendar year is divided by the average monthly covered employment to calculate 
139.5 	the state's average annual wage.; and
139.6 	(3) the state's average annual wage is divided by 52 to calculate the state's average weekly 
139.7 	wage.
139.8 	(b) For purposes of calculating the amount of taxable wages under subdivision 24, the 
139.9 	state's average annual wage applies to the calendar year following the calculation.
139.10 	(c) For purposes of calculating (1) the state's maximum weekly unemployment benefit 
139.11 	amount available on any benefit account under section 268.07, subdivision 2a, and (2) the 
139.12 	state's average weekly wage applies to the one-year period beginning the last Sunday in 
139.13 	October of the calendar year of the calculation.
139.14 	(d) For purposes of calculating the wage credits necessary to establish a benefit account 
139.15 	under section 268.07, subdivision 2, the state's average weekly wage applies to the one-year 
139.16 	period beginning the last Sunday in October of the calendar year of the calculation.

139.17 	Sec. 4. Minnesota Statutes 2016, section 268.035, subdivision 30, is amended to read:
139.18 		Subd. 30.Wages paid. (a) "Wages paid" means the amount of wages:
139.19 	(1) that have been actually paid; or
139.20 	(2) that have been credited to or set apart so that payment and disposition is under the 
139.21 	control of the employee.
139.22 	(b) Wage payments delayed beyond the regularly scheduled pay date are considered
139.23 	"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date of 
139.24 	actual payment. Any wages earned but not paid with no scheduled date of payment is 
139.25 	considered are "wages paid" on the last day of employment.
139.26 	(c) Wages paid does not include wages earned but not paid except as provided for in 
139.27 	this subdivision.

139.28 	Sec. 5. Minnesota Statutes 2016, section 268.042, subdivision 1, is amended to read:
139.29 		Subdivision 1.Employer registration. (a) Each employer must, upon or before the 
139.30 	submission of its first wage detail report under section 268.044, register with the 
139.31 	commissioner for a tax account or a reimbursable account, by electronic transmission in a 
140.1 	format prescribed by the commissioner. The employer must provide all required information 
140.2 	for registration, including the actual physical street and city address of the employer.
140.3 	(b) Within 30 calendar days, each employer must notify the commissioner by electronic 
140.4 	transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or 
140.5 	acquisition of a business conducted in Minnesota, in whole or in part, if the transaction 
140.6 	results in the creation of a new or different employer or affects the establishment of employer 
140.7 	accounts, the assignment of tax rates, or the transfer of experience rating history.
140.8 	(c) Except as provided in subdivision 3, any person that is or becomes an employer 
140.9 	subject to the Minnesota Unemployment Insurance Law with covered employment within 
140.10 	any calendar year is considered to be subject to this chapter the entire calendar year.
140.11 	(d) Within 30 calendar days of the termination of business, an employer that has been 
140.12 	assigned a tax account or reimbursable account must notify the commissioner by electronic 
140.13 	transmission, in a format prescribed by the commissioner, if that employer does not intend 
140.14 	or expect to pay wages to any employees in covered employment during the current or the 
140.15 	next calendar year. Upon notification, the employer is no longer required to file wage detail 
140.16 	reports under section 268.044, subdivision 1, paragraph (d), and the employer's account 
140.17 	must be terminated.
140.18 	(e) An employer that has its account terminated regains its previous tax account under 
140.19 	section 268.045, with the experience rating history of that account, if the employer again 
140.20 	commences business and again pays wages in covered employment if:
140.21 	(1) less than 14 calendar quarters have elapsed in which no wages were paid for covered 
140.22 	employment;
140.23 	(2) the experience rating history regained contains taxable wages; and
140.24 	(3) the experience rating history has not been transferred to a successor under section 
140.25 	268.051, subdivision 4.

140.26 	Sec. 6. Minnesota Statutes 2016, section 268.051, subdivision 1, is amended to read:
140.27 		Subdivision 1.Payments. (a) Unemployment insurance taxes and any special 
140.28 	assessments, fees, or surcharges accrue and become payable by each employer for each 
140.29 	calendar year on the taxable wages that the employer paid to employees in covered 
140.30 	employment, except for:
140.31 	(1) nonprofit organizations that elect to make reimbursements as provided in section 
140.32 	268.053; and
141.1 	(2) the state of Minnesota and political subdivisions that make reimbursements, unless 
141.2 	they elect to pay taxes as provided in section 268.052.
141.3 	Each employer must pay taxes quarterly, at the employer's assigned tax rate under 
141.4 	subdivision 6, on the taxable wages paid to each employee. The commissioner must compute 
141.5 	the tax due from the wage detail report required under section 268.044 and notify the 
141.6 	employer of the tax due. The taxes and any special assessments, fees, or surcharges must 
141.7 	be paid to the trust fund and must be received by the department on or before the last day 
141.8 	of the month following the end of the calendar quarter.
141.9 	(b) If for any reason the wages on the wage detail report under section 268.044 are 
141.10 	adjusted for any quarter, the commissioner must recompute the taxes due for that quarter 
141.11 	and assess the employer for any amount due or credit the employer as appropriate.

141.12 	Sec. 7. Minnesota Statutes 2016, section 268.07, subdivision 2, is amended to read:
141.13 		Subd. 2.Benefit account requirements. (a) Unless paragraph (b) applies, to establish 
141.14 	a benefit account an applicant must have total wage credits in the applicant's four quarter 
141.15 	base period of at least 5.3 percent of the state's average annual wage rounded down to the 
141.16 	next lower $100.
141.17 	(b) To establish a new benefit account following the expiration of the benefit year on a 
141.18 	prior benefit account, an applicant must have performed actual work in subsequent covered 
141.19 	employment and have been paid wages in one or more completed calendar quarters that 
141.20 	started after the effective date of the prior benefit account. The wages paid for that 
141.21 	employment must be at least enough to meet the requirements of paragraph (a). A benefit 
141.22 	account under this paragraph may not be established effective earlier than the Sunday 
141.23 	following the end of the most recent completed calendar quarter in which the requirements 
141.24 	of paragraph (a) were met. An applicant may not establish a second benefit account as a 
141.25 	result of one loss of employment.

141.26 	Sec. 8. Minnesota Statutes 2016, section 268.07, subdivision 3a, is amended to read:
141.27 		Subd. 3a.Right of appeal. (a) A determination or amended determination of benefit 
141.28 	account is final unless an applicant or base period employer within 20 calendar days after 
141.29 	the sending of the determination or amended determination files an appeal. Every 
141.30 	determination or amended determination of benefit account must contain a prominent 
141.31 	statement indicating in clear language the consequences of not appealing. Proceedings on 
141.32 	the appeal are conducted in accordance with section 268.105.
142.1 	(b) Any applicant or base period employer may appeal from a determination or amended 
142.2 	determination of benefit account on the issue of whether services performed constitute 
142.3 	employment, whether the employment is considered covered employment, and whether 
142.4 	money paid constitutes wages. Proceedings on the appeal are conducted in accordance with 
142.5 	section 268.105.

142.6 	Sec. 9. Minnesota Statutes 2016, section 268.085, subdivision 6, is amended to read:
142.7 		Subd. 6.Receipt of back pay. (a) Back pay received by an applicant within 24 months 
142.8 	of the establishment of the benefit account with respect to any week must be deducted from 
142.9 	unemployment benefits paid for that week, and the applicant is considered to have been
142.10 	overpaid the unemployment benefits under section 268.18, subdivision 1.
142.11 	If the back pay is not paid with respect to a specific period, the back pay must be applied 
142.12 	to the period immediately following the last day of employment.
142.13 	(b) If the back pay is reduced by the amount of unemployment benefits that have been 
142.14 	paid, the amount of back pay withheld and not paid the applicant must be:
142.15 	(1) paid by the taxpaying or reimbursing employer to the trust fund within 30 calendar 
142.16 	days and is subject to the same collection procedures that apply to past due taxes and 
142.17 	reimbursements; and
142.18 	(2) when received by the trust fund:
142.19 	(i) an overpayment of unemployment benefits must be created which, under section 
142.20 	268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account of any 
142.21 	effect; and
142.22 	(ii) the back pay must then be applied to the unemployment benefit overpayment, 
142.23 	eliminating any effect on the applicant.
142.24 	(c) The following must result when applying paragraph (b):
142.25 	(1) an employer neither overpays nor underpays the employer's proper portion of the 
142.26 	unemployment benefit costs; and
142.27 	(2) the applicant is placed in the same position as never having been paid the 
142.28 	unemployment benefits.
142.29 	(d) This subdivision applies to payments labeled front pay, settlement pay, and other 
142.30 	terms describing or dealing with wage loss.

143.1 	Sec. 10. Minnesota Statutes 2016, section 268.085, subdivision 7, is amended to read:
143.2 		Subd. 7.School employees; between terms denial. (a) No Wage credits in any amount
143.3 	from any employment with any an educational institution or institutions earned in any 
143.4 	capacity may not be used for unemployment benefit purposes for any week during the period 
143.5 	between two successive academic years or terms if:
143.6 	(1) the applicant had employment for any an educational institution or institutions in the 
143.7 	prior academic year or term; and
143.8 	(2) there is a reasonable assurance that the applicant will have employment for any an
143.9 	educational institution or institutions in the following academic year or term, unless that.
143.10 	This paragraph applies to a vacation period or holiday recess if the applicant was 
143.11 	employed immediately before the vacation period or holiday recess, and there is a reasonable 
143.12 	assurance that the applicant will be employed immediately following the vacation period 
143.13 	or holiday recess. This paragraph also applies to the period between two regular but not 
143.14 	successive terms if there is an agreement for that schedule between the applicant and the 
143.15 	educational institution.
143.16 	This paragraph does not apply if the subsequent employment is substantially less 
143.17 	favorable than the employment of the prior academic year or term, or the employment prior 
143.18 	to the vacation period or holiday recess.
143.19 	(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic 
143.20 	year or term, had an agreement for a definite period of employment between academic years 
143.21 	or terms in other than an instructional, research, or principal administrative capacity and 
143.22 	the educational institution or institutions failed to provide that employment.
143.23 	(c) If unemployment benefits are denied to any applicant under paragraph (a) who was 
143.24 	employed in the prior academic year or term in other than an instructional, research, or 
143.25 	principal administrative capacity and who was not offered an opportunity to perform the 
143.26 	employment in the following academic year or term, the applicant is entitled to retroactive 
143.27 	unemployment benefits for each week during the period between academic years or terms 
143.28 	that the applicant filed a timely continued request for unemployment benefits, but 
143.29 	unemployment benefits were denied solely because of paragraph (a).
143.30 	(d) An educational assistant is not considered to be in an instructional, research, or 
143.31 	principal administrative capacity.
143.32 	(e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was 
143.33 	employed immediately before the vacation period or holiday recess, and there is a reasonable 
144.1 	assurance that the applicant will be employed immediately following the vacation period 
144.2 	or holiday recess.
144.3 	(f) (d) This subdivision applies to employment with an educational service agency if the 
144.4 	applicant performed the services at an educational institution or institutions. "Educational 
144.5 	service agency" means a governmental agency or entity established and operated exclusively
144.6 	for the purpose of providing services to one or more educational institutions.
144.7 	(e) This subdivision also applies to employment with Minnesota or, a political 
144.8 	subdivision, or a nonprofit organization, if the services are provided to or on behalf of an 
144.9 	educational institution or institutions.
144.10 	(g) Paragraphs (a) and (e) apply (f) Paragraph (a) applies beginning the Sunday of the 
144.11 	week that there is a reasonable assurance of employment.
144.12 	(h) (g) Employment and a reasonable assurance with multiple education institutions 
144.13 	must be aggregated for purposes of application of this subdivision.
144.14 	(i) (h) If all of the applicant's employment with any educational institution or institutions 
144.15 	during the prior academic year or term consisted of on-call employment, and the applicant 
144.16 	has a reasonable assurance of any on-call employment with any educational institution or 
144.17 	institutions for the following academic year or term, it is not considered substantially less 
144.18 	favorable employment.
144.19 	(j) Paragraph (a) also applies to the period between two regular but not successive terms.
144.20 	(k) (i) A "reasonable assurance" may be written, oral, implied, or established by custom 
144.21 	or practice.
144.22 	(l) (j) An "educational institution" is an a school, college, university, or other educational 
144.23 	entity operated by Minnesota or, a political subdivision or an instrumentality thereof, or an 
144.24 	educational a nonprofit organization described in United States Code, title 26, section 
144.25 	501(c)(3) of the federal Internal Revenue Code, and exempt from income tax under section 
144.26 	501(a).
144.27 	(k) An "instructional, research, or principal administrative capacity" does not include 
144.28 	an educational assistant.

144.29 	Sec. 11. Minnesota Statutes 2016, section 268.085, subdivision 12, is amended to read:
144.30 		Subd. 12.Aliens. (a) An alien is ineligible for unemployment benefits for any week the 
144.31 	alien is not authorized to work in the United States under federal law. Information from the 
144.32 	Bureau of Citizenship and Immigration Services is considered conclusive, absent specific 
145.1 	evidence that the information was erroneous. Under the existing agreement between the 
145.2 	United States and Canada, this paragraph does not apply to an applicant who is a Canadian 
145.3 	citizen and has returned to and is living in Canada each week unemployment benefits are 
145.4 	requested.
145.5 	(b) Unemployment benefits must not be paid on the basis of An alien's wage credits 
145.6 	earned by an alien may not be used for unemployment benefit purposes unless the alien
145.7 	was:
145.8 	(1) was lawfully admitted for permanent residence at the time of the employment,;
145.9 	(2) was lawfully present for the purposes of the employment,; or
145.10 	(3) was permanently residing in the United States under color of law at the time of the 
145.11 	employment.
145.12 	(c) Any Information required of applicants applying for unemployment benefits to 
145.13 	determine eligibility because of their alien status must be required from of all applicants.

145.14 	Sec. 12. Minnesota Statutes 2016, section 268.0865, subdivision 5, is amended to read:
145.15 		Subd. 5.Good cause defined. (a) "Good cause" for purposes of this section is a 
145.16 	compelling substantial reason that would have prevented a reasonable person acting with 
145.17 	due diligence from filing a continued request for unemployment benefits within the time 
145.18 	periods required.
145.19 	(b) "Good cause" does not include forgetfulness, loss of the continued request form if 
145.20 	filing by mail, having returned to work, having an appeal pending, or inability to file a 
145.21 	continued request for unemployment benefits by the method designated if the applicant was 
145.22 	aware of the inability and did not make diligent effort to have the method of filing a continued 
145.23 	request changed by the commissioner. "Good cause" does not include having previously 
145.24 	made an attempt to file a continued request for unemployment benefits but where the 
145.25 	communication was not considered a continued request because the applicant failed to 
145.26 	submit all required information.

145.27 	Sec. 13. Minnesota Statutes 2016, section 268.095, subdivision 1, is amended to read:
145.28 		Subdivision 1.Quit. An applicant who quit employment is ineligible for all 
145.29 	unemployment benefits according to subdivision 10 except when:
145.30 	(1) the applicant quit the employment because of a good reason caused by the employer 
145.31 	as defined in subdivision 3;
146.1 	(2) the applicant quit the employment to accept other covered employment that provided 
146.2 	equal to or better terms and conditions of employment, but the applicant did not work long 
146.3 	enough at the second employment to have sufficient subsequent wages paid to satisfy the 
146.4 	period of ineligibility that would otherwise be imposed under subdivision 10 for quitting 
146.5 	the first employment;
146.6 	(3) the applicant quit the employment within 30 calendar days of beginning the 
146.7 	employment and the employment was unsuitable;
146.8 	(4) the employment was unsuitable and the applicant quit to enter reemployment 
146.9 	assistance training;
146.10 	(5) the employment was part time and the applicant also had full-time employment in 
146.11 	the base period, from which full-time employment the applicant separated because of reasons 
146.12 	for which the applicant is would not be ineligible, and the wage credits from the full-time 
146.13 	employment are sufficient to meet the minimum requirements to establish a benefit account 
146.14 	under section 268.07;
146.15 	(6) the applicant quit because the employer notified the applicant that the applicant was 
146.16 	going to be laid off because of lack of work within 30 calendar days. An applicant who quit 
146.17 	employment within 30 calendar days of a notified date of layoff because of lack of work is 
146.18 	ineligible for unemployment benefits through the end of the week that includes the scheduled 
146.19 	date of layoff;
146.20 	(7) the applicant quit the employment (i) because the applicant's serious illness or injury 
146.21 	made it medically necessary that the applicant quit; or (ii) in order to provide necessary care 
146.22 	because of the illness, injury, or disability of an immediate family member of the applicant. 
146.23 	This exception only applies if the applicant informs the employer of the medical problem 
146.24 	and requests accommodation and no reasonable accommodation is made available.
146.25 	If the applicant's serious illness is chemical dependency, this exception does not apply 
146.26 	if the applicant was previously diagnosed as chemically dependent or had treatment for 
146.27 	chemical dependency, and since that diagnosis or treatment has failed to make consistent 
146.28 	efforts to control the chemical dependency.
146.29 	This exception raises an issue of the applicant's being available for suitable employment 
146.30 	under section 268.085, subdivision 1, that the commissioner must determine;
146.31 	(8) the applicant's loss of child care for the applicant's minor child caused the applicant 
146.32 	to quit the employment, provided the applicant made reasonable effort to obtain other child 
147.1 	care and requested time off or other accommodation from the employer and no reasonable 
147.2 	accommodation is available.
147.3 	This exception raises an issue of the applicant's being available for suitable employment 
147.4 	under section 268.085, subdivision 1, that the commissioner must determine;
147.5 	(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant 
147.6 	or an immediate family member of the applicant, necessitated the applicant's quitting the 
147.7 	employment.
147.8 	For purposes of this subdivision:
147.9 	(i) "domestic abuse" has the meaning given in section 518B.01;
147.10 	(ii) "sexual assault" means an act that would constitute a violation of sections 609.342
147.11 	to 609.3453 or 609.352; and
147.12 	(iii) "stalking" means an act that would constitute a violation of section 609.749; or
147.13 	(10) the applicant quit in order to relocate to accompany a spouse:
147.14 	(1) (i) who is in the military; or
147.15 	(2) (ii) whose job was transferred by the spouse's employer to a new location making it 
147.16 	impractical for the applicant to commute.

147.17 	Sec. 14. Minnesota Statutes 2016, section 268.095, subdivision 2, is amended to read:
147.18 		Subd. 2.Quit defined. (a) A quit from employment occurs when the decision to end 
147.19 	the employment was, at the time the employment ended, the employee's.
147.20 	(b) When determining if an applicant quit, the theory of a constructive quit does not 
147.21 	apply.
147.22 	(c) An employee who has been notified that the employee will be discharged in the 
147.23 	future, who chooses to end the employment while employment in any capacity is still 
147.24 	available, has quit the employment.
147.25 	(d) A notice of quitting in the future does not constitute a quit at the time the notice is 
147.26 	given. An employee who seeks to withdraw a previously submitted notice of quitting in the 
147.27 	future has quit the employment, as of the intended date of quitting, if the employer does not 
147.28 	agree that the notice may be withdrawn.
147.29 	(e) An applicant has quit employment with a staffing service if, within five calendar 
147.30 	days after completion of a suitable job assignment from a staffing service, the applicant:
148.1 	(1) fails without good cause to affirmatively request an additional suitable job assignment;
148.2 	(2) refuses without good cause an additional suitable job assignment offered; or
148.3 	(3) accepts employment with the client of the staffing service. Accepting employment 
148.4 	with the client of the staffing service meets the requirements of the exception to ineligibility 
148.5 	under subdivision 1, clause (2).
148.6 	This paragraph applies only if, at the time of beginning of employment with the staffing 
148.7 	service, the applicant signed and was provided a copy of a separate document written in 
148.8 	clear and concise language that informed the applicant of this paragraph and that 
148.9 	unemployment benefits may be affected.
148.10 	For purposes of this paragraph, "good cause" is a reason that would compel an average, 
148.11 	reasonable worker, who would otherwise want an additional suitable job assignment with 
148.12 	the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered 
148.13 	assignment.

148.14 	Sec. 15. Minnesota Statutes 2016, section 268.131, is amended to read:
148.15 	268.131 RECIPROCAL UNEMPLOYMENT BENEFIT COMBINED WAGE
148.16 	ARRANGEMENTS FOR WORK IN MULTIPLE STATES.
148.17 		Subdivision 1.Cooperation with other states on combining wages. (a) In accordance 
148.18 	with the requirements of United States Code, title 26, section 3304(a)(9)(B), the Federal 
148.19 	Unemployment Tax Act, the commissioner must participate in reciprocal arrangements with 
148.20 	other states for the payment of unemployment benefits on the basis of combining an 
148.21 	applicant's wages from multiple states for the purposes of collecting unemployment benefits 
148.22 	from a single state. The reciprocal agreement must include provisions for applying the base 
148.23 	period of a single state law to a benefit account involving the combining of an applicant's 
148.24 	wages and employment and avoiding the duplicate use of wages by reason of such combining.
148.25 	The commissioner may not enter into any reciprocal arrangement unless it contains provisions 
148.26 	for only pay unemployment benefits from the trust fund under this section if:
148.27 	(1) there are reimbursements to the trust fund, by the other state, for unemployment 
148.28 	benefits paid from the trust fund to applicants based upon wages and employment covered 
148.29 	under the laws of the other state.; and
148.30 	(b) The commissioner is authorized to pay unemployment benefits based upon an 
148.31 	applicant's wages paid in covered employment in another state only if (2) the applicant is 
148.32 	combining Minnesota wage credits with the wages paid in covered employment from another 
148.33 	state or states.
149.1 	(c) Section 268.23 does not apply to this subdivision.
149.2 	(d) On any reciprocal arrangement, (b) Under this section, the wages paid an applicant 
149.3 	from employment covered under an unemployment insurance program of another state are 
149.4 	considered wages from covered employment for the purpose of determining the applicant's 
149.5 	rights to unemployment benefits under the Minnesota Unemployment Insurance Law.
149.6 		Subd. 2.Cooperation with foreign governments. The commissioner is authorized to 
149.7 	enter into or cooperate in arrangements whereby facilities and services provided under the 
149.8 	Minnesota Unemployment Insurance Law and facilities and services provided under the 
149.9 	unemployment insurance program of any foreign government, may be used for the taking 
149.10 	of applications for unemployment benefits and continued requests and the payment of 
149.11 	unemployment benefits under this law or under a similar law of a foreign government.

149.12 	Sec. 16. Minnesota Statutes 2016, section 268.18, subdivision 2, is amended to read:
149.13 		Subd. 2.Overpayment because of fraud misrepresentation. (a) An applicant has 
149.14 	committed fraud misrepresentation if the applicant is overpaid unemployment benefits by:
149.15 	(1) knowingly misrepresenting, misstating, or failing to disclose any material fact; or
149.16 	(2) making a false statement or representation without a good faith belief as to the 
149.17 	correctness of the statement or representation.
149.18 	After the discovery of facts indicating fraud misrepresentation, the commissioner must 
149.19 	issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the 
149.20 	amount overpaid. This penalty is in addition to penalties under section 268.182.
149.21 	(b) Unless the applicant files an appeal within 20 calendar days after the sending of a 
149.22 	determination of overpayment penalty to the applicant by mail or electronic transmission, 
149.23 	the determination is final. Proceedings on the appeal are conducted in accordance with 
149.24 	section 268.105.
149.25 	(c) A determination of overpayment penalty must state the methods of collection the 
149.26 	commissioner may use to recover the overpayment, penalty, and interest assessed. Money 
149.27 	received in repayment of overpaid unemployment benefits, penalties, and interest is first 
149.28 	applied to the benefits overpaid, then to the penalty amount due, then to any interest due. 
149.29 	62.5 percent of the payments made toward the penalty are credited to the contingent account 
149.30 	and 37.5 percent credited to the trust fund.
150.1 	(d) The department is authorized to issue a determination of overpayment penalty under 
150.2 	this subdivision may be issued within 48 months of the establishment of the benefit account 
150.3 	upon which the unemployment benefits were obtained through fraud misrepresentation.

150.4 	Sec. 17. Minnesota Statutes 2016, section 268.18, subdivision 2b, is amended to read:
150.5 		Subd. 2b.Interest.  On any unemployment benefits fraudulently obtained by 
150.6 	misrepresentation, and any penalty amounts assessed under subdivision 2, the commissioner 
150.7 	must assess interest at the rate of one percent per month on any amount that remains unpaid 
150.8 	beginning 30 calendar days after the date of a determination of overpayment penalty. A 
150.9 	determination of overpayment penalty must state that interest will be assessed. Interest is 
150.10 	assessed in the same manner as on employer debt under section 268.057, subdivision 5. 
150.11 	Interest payments collected under this subdivision are credited to the trust fund.

150.12 	Sec. 18. Minnesota Statutes 2016, section 268.18, subdivision 5, is amended to read:
150.13 		Subd. 5.Remedies. (a) Any method undertaken to recover an overpayment of 
150.14 	unemployment benefits, including any penalties and interest, is not considered an election 
150.15 	of a method of recovery.
150.16 	(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter 
150.17 	under section 176.361 is not considered an election of a remedy and does not prevent the 
150.18 	commissioner from determining any an applicant ineligible for unemployment benefits 
150.19 	overpaid under subdivision 1 or 2 or taking action under section 268.182.

150.20 	Sec. 19. Minnesota Statutes 2016, section 268.182, is amended to read:
150.21 	268.182 APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF 
150.22 	FACTS FRAUD; CRIMINAL PENALTY.
150.23 		Subdivision 1.Criminal penalties. WhoeverAn individual has committed fraud and is 
150.24 	guilty of theft and must be sentenced under section 609.52 if the individual obtains, or 
150.25 	attempts to obtain, or aids or abets any other individual to obtain, by means of an intentional 
150.26 	false statement or representation, by intentional concealment of a material fact, or by 
150.27 	impersonation or other fraudulent means, unemployment benefits that the individual is not 
150.28 	entitled or unemployment benefits greater than the individual is entitled to under this chapter, 
150.29 	or under the federal law of any state or of the federal government, either personally or for 
150.30 	any other individual, is guilty of theft and must be sentenced under section 609.52.
150.31 		Subd. 2.Administrative penalties. (a) Any applicant who knowingly makes a false 
150.32 	statement or representation, who knowingly fails to disclose a material fact, or who makes 
151.1 	a false statement or representation without a good faith belief as to the correctness of the 
151.2 	statement or representation, in order to obtain or in an attempt to obtain unemployment 
151.3 	benefits may be assessed, in addition to any other penalties, an administrative penalty of 
151.4 	being ineligible for unemployment benefits for 13 to 104 weeks.
151.5 	(b) A determination of ineligibility setting out the weeks the applicant is ineligible must 
151.6 	be sent to the applicant by mail or electronic transmission. The department is authorized to 
151.7 	issue a determination of ineligibility under this subdivision may be issued within 48 months 
151.8 	of the establishment of the benefit account upon which the unemployment benefits were 
151.9 	obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of 
151.10 	sending, the determination is final. Proceedings on the appeal are conducted in accordance 
151.11 	with section 268.105.

151.12 	Sec. 20. Minnesota Statutes 2016, section 268.184, is amended to read:
151.13 	268.184 EMPLOYER MISCONDUCT; PENALTY MISREPRESENTATION AND 
151.14 	MISREPORTING; ADMINISTRATIVE PENALTIES.
151.15 		Subdivision 1.Misrepresentation; administrative penalties. (a) The commissioner 
151.16 	must penalize an employer if that employer or any employee, officer, or agent of that 
151.17 	employer, is in collusion with any applicant for the purpose of assisting the applicant to 
151.18 	receive unemployment benefits fraudulently. The penalty is $500 or the amount of 
151.19 	unemployment benefits determined to be overpaid, whichever is greater.
151.20 	(b) The commissioner must penalize an employer if that employer or any employee, 
151.21 	officer, or agent of that employer: (1) made a false statement or representation knowing it 
151.22 	to be false; (2) made a false statement or representation without a good faith belief as to 
151.23 	correctness of the statement or representation; (3) or knowingly failed to disclose a material 
151.24 	fact; or (4) made an offer of employment to an applicant when, in fact, the employer had 
151.25 	no employment available. in order to:
151.26 	(1) assist an applicant to receive unemployment benefits to which the applicant is not 
151.27 	entitled;
151.28 	(2) prevent or reduce the payment of unemployment benefits to an applicant; or
151.29 	(3) avoid or reduce any payment required from an employer under this chapter or section 
151.30 	116L.20.
151.31 	The penalty is the greater of $500 or 50 percent of the following resulting from the employer's 
151.32 	action:
152.1 	(i) the amount of any overpaid unemployment benefits to an applicant;
152.2 	(ii) the amount of unemployment benefits not paid to an applicant that would otherwise 
152.3 	have been paid; or
152.4 	(iii) the amount of any payment required from the employer under this chapter or section 
152.5 	116L.20 that was not paid.
152.6 	(c) (b) The commissioner must penalize an employer if that employer failed or refused 
152.7 	to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of 
152.8 	enforcing the subpoena, including attorney fees.
152.9 	(d) (c) Penalties under this subdivision and under section 268.047, subdivision 4, 
152.10 	paragraph (b), are in addition to any other penalties and subject to the same collection 
152.11 	procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of 
152.12 	issuance of the determination of penalty and credited to the trust fund.
152.13 	(e) (d) The determination of penalty is final unless the employer files an appeal within 
152.14 	20 calendar days after the sending of the determination of penalty to the employer by mail 
152.15 	or electronic transmission. Proceedings on the appeal are conducted in accordance with 
152.16 	section 268.105.
152.17 		Subd. 1a.Notification and misreporting penalties. (a) If the commissioner finds that 
152.18 	any employer or agent of an employer failed to meet the notification requirements of section 
152.19 	268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two percent 
152.20 	of the first full quarterly payroll acquired, whichever is higher. Payroll is wages paid as 
152.21 	defined in section 268.035, subdivision 30. The penalty under this paragraph must be 
152.22 	canceled if the commissioner determines that the failure occurred because of ignorance or 
152.23 	inadvertence.
152.24 	(b) If the commissioner finds that any individual advised an employer to violate the 
152.25 	employer's notification requirements under section 268.051, subdivision 4, the individual, 
152.26 	and that individual's employer, must each be assessed the penalty in paragraph (a).
152.27 	(c) If the commissioner finds that any person or agent of a person violated the reporting 
152.28 	requirements of section 268.046, the person must be assessed a penalty of $5,000 or two 
152.29 	percent of the quarterly payroll reported in violation of section 268.046, whichever is higher. 
152.30 	Payroll is wages paid as defined in section 268.035, subdivision 30.
152.31 	(d) Penalties under this subdivision are in addition to any other penalties and subject to 
152.32 	the same collection procedures that apply to past due amounts from an employer. Penalties 
153.1 	must be paid within 30 calendar days after sending of the determination of penalty and 
153.2 	credited to the trust fund.
153.3 	(e) The determination of penalty is final unless the person assessed files an appeal within 
153.4 	20 calendar days after sending of the determination of penalty by mail or electronic 
153.5 	transmission. Proceedings on the appeal are conducted in accordance with section 268.105.
153.6 		Subd. 2.Criminal penalties. Any employer or any officer or agent of an employer or 
153.7 	any other individual who has committed fraud and is guilty of a crime, if in order to avoid 
153.8 	or reduce any payment required from an employer under this chapter or section 116L.20, 
153.9 	or to prevent or reduce the payment of unemployment benefits to an applicant:
153.10 	(1) makes a false statement or representation knowing it to be false;
153.11 	(2) knowingly fails to disclose a material fact, including notification required under 
153.12 	section 268.051, subdivision 4; or
153.13 	(3) knowingly advises or assists an employer in violating clause (1) or (2), to avoid or 
153.14 	reduce any payment required from an employer under this chapter or section 116L.20, or 
153.15 	to prevent or reduce the payment of unemployment benefits to any applicant,.
153.16 	The individual is guilty of a gross misdemeanor unless if the underpayment exceeds is $500, 
153.17 	in that case or less. The individual is guilty of a felony if the underpayment exceeds $500.

153.18 	Sec. 21. Minnesota Statutes 2016, section 268.194, subdivision 1, is amended to read:
153.19 		Subdivision 1.Establishment. There is established as a special state trust fund, separate 
153.20 	and apart from all other public money or funds of this state, an unemployment insurance 
153.21 	trust fund, that is administered by the commissioner exclusively for the payment of 
153.22 	unemployment benefits. This trust fund consists of:
153.23 	(1) all taxes collected;
153.24 	(2) interest earned upon any money in the trust fund;
153.25 	(3) reimbursements paid by nonprofit organizations, and the state and political 
153.26 	subdivisions;
153.27 	(4) tax rate buydown payments under section 268.051, subdivision 7;
153.28 	(5) any money received as a loan from the federal unemployment trust fund in accordance 
153.29 	with United States Code, title 42, section 1321, of the Social Security Act;
153.30 	(6) any other money received under a reciprocal unemployment benefit combined wage
153.31 	arrangement with the federal government or any other state;
154.1 	(7) money received from the federal government for unemployment benefits paid under 
154.2 	a federal program;
154.3 	(7) (8) money recovered on overpaid unemployment benefits;
154.4 	(8) (9) all money credited to the account under this chapter;
154.5 	(9) (10) all money credited to the account of Minnesota in the federal unemployment 
154.6 	trust fund under United States Code, title 42, section 1103, of the Social Security Act, also 
154.7 	known as the Reed Act; and
154.8 	(10) (11) all money received for the trust fund from any other source.

154.9 	Sec. 22. Minnesota Statutes 2016, section 268.194, subdivision 4, is amended to read:
154.10 		Subd. 4.Reimbursements. The commissioner is authorized to make to other state or 
154.11 	federal agencies and to receive from other state or federal agencies, reimbursements from 
154.12 	or to the trust fund, in accordance with reciprocal combined wage arrangements entered 
154.13 	into under section 268.131.
154.14 	Money received under a reciprocal agreement combined wage arrangement must be 
154.15 	placed directly in the unemployment benefit payment account of the trust fund.

154.16 	Sec. 23. REVISOR'S INSTRUCTION.
 154.17 	In the following sections of Minnesota Statutes, the revisor of statutes shall delete the 
154.18 	term "considered": Minnesota Statutes, sections 268.035, subdivisions 21c and 26; 268.07, 
154.19 	subdivision 1; 268.085, subdivisions 4a, 13c, 15, and 16; 268.095, subdivision 3; 268.101, 
154.20 	subdivision 6; and 268.105, subdivisions 3a and 7.

154.21 	Sec. 24. REVISOR'S INSTRUCTION.
 154.22 	(a) In Minnesota Statutes, section 268.18, the revisor of statutes shall change the term 
154.23 	"fraud" to "misrepresentation" and "nonfraud" to "nonmisrepresentation."
154.24 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 268.184, 
154.25 	subdivision 2, as Minnesota Statutes, section 268.182, subdivision 1, paragraph (b).
154.26 	(c) The revisor of statutes shall renumber Minnesota Statutes, section 268.182, subdivision 
154.27 	2, as Minnesota Statutes, section 268.183.
154.28 	(d) The revisor of statutes shall make cross-reference changes needed arising out of the 
154.29 	renumbering in Minnesota Statutes, section 268.032, subdivision 20.

155.1 	Sec. 25. REPEALER.
 155.2 	Laws 2005, chapter 112, article 1, section 14, is repealed.

155.3 	ARTICLE 8
155.4 	COMMERCE POLICY

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

155.12 	Sec. 2. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:
155.13 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) The 
155.14 	commissioner of commerce shall:
155.15 	(1) develop and sponsor the implementation of statewide plans, programs, and strategies 
155.16 	to combat automobile theft, improve the administration of the automobile theft laws, and 
155.17 	provide a forum for identification of critical problems for those persons dealing with 
155.18 	automobile theft;
155.19 	(2) coordinate the development, adoption, and implementation of plans, programs, and 
155.20 	strategies relating to interagency and intergovernmental cooperation with respect to 
155.21 	automobile theft enforcement;
155.22 	(3) annually audit the plans and programs that have been funded in whole or in part to 
155.23 	evaluate the effectiveness of the plans and programs and withdraw funding should the 
155.24 	commissioner determine that a plan or program is ineffective or is no longer in need of 
155.25 	further financial support from the fund;
155.26 	(4) develop a plan of operation including:
155.27 	(i) an assessment of the scope of the problem of automobile theft, including areas of the 
155.28 	state where the problem is greatest;
155.29 	(ii) an analysis of various methods of combating the problem of automobile theft;
155.30 	(iii) a plan for providing financial support to combat automobile theft;
156.1 	(iv) a plan for eliminating car hijacking; and
156.2 	(v) an estimate of the funds required to implement the plan; and
156.3 	(5) distribute money, in consultation with the commissioner of public safety, pursuant 
156.4 	to subdivision 3 from the automobile theft prevention special revenue account for automobile 
156.5 	theft prevention activities, including:
156.6 	(i) paying the administrative costs of the program;
156.7 	(ii) providing financial support to the State Patrol and local law enforcement agencies 
156.8 	for automobile theft enforcement teams;
156.9 	(iii) providing financial support to state or local law enforcement agencies for programs 
156.10 	designed to reduce the incidence of automobile theft and for improved equipment and 
156.11 	techniques for responding to automobile thefts;
156.12 	(iv) providing financial support to local prosecutors for programs designed to reduce 
156.13 	the incidence of automobile theft;
156.14 	(v) providing financial support to judicial agencies for programs designed to reduce the 
156.15 	incidence of automobile theft;
156.16 	(vi) providing financial support for neighborhood or community organizations or business 
156.17 	organizations for programs designed to reduce the incidence of automobile theft and to 
156.18 	educate people about the common methods of automobile theft, the models of automobiles 
156.19 	most likely to be stolen, and the times and places automobile theft is most likely to occur; 
156.20 	and
156.21 	(vii) providing financial support for automobile theft educational and training programs 
156.22 	for state and local law enforcement officials, driver and vehicle services exam and inspections 
156.23 	staff, and members of the judiciary.
156.24 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
156.25 	money in the fund for the program's administrative and operating costs. The commissioner 
156.26 	is annually appropriated and must distribute the amount of the proceeds credited to the 
156.27 	automobile theft prevention special revenue account each year, less the transfer of $1,300,000 
156.28 	each year to the general fund insurance fraud prevention account described in section 297I.11, 
156.29 	subdivision 2.
156.30 	(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances 
156.31 	in the auto theft prevention account to the insurance fraud prevention account under section 
156.32 	45.0135, subdivision 6.

157.1 	Sec. 3. [239.7511] GAS TAX SIGN ON PETROLEUM DISPENSER.
157.2 	(a) The director must ensure that signs having 12-point font or greater are affixed on 
157.3 	retail petroleum dispensers as follows:
157.4 	(1) for regular or premium gasoline, a sign that reads: "The price for each gallon of 
157.5 	gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline 
157.6 	tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and 
157.7 	bridges, according to the Minnesota Constitution."; and
157.8 	(2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes 
157.9 	the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents 
157.10 	per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according 
157.11 	to the Minnesota Constitution."
157.12 	(b) The director must distribute the signs under this section to the owner or operator of 
157.13 	retail petroleum dispensers. To the extent possible, the director must coordinate the 
157.14 	distribution of signs with other duties the director may have involving retail petroleum 
157.15 	dispensers.
157.16 	(c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2), 
157.17 	changes, the director must distribute revised signs to reflect the updated gasoline tax amounts 
157.18 	within 12 calendar months of the change.
157.19 	(d) The director is prohibited from assessing any penalty, fine, or fee on the owner or 
157.20 	operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise 
157.21 	damaged gas tax sign.

157.22 	Sec. 4. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:
157.23 		Subd. 2.Automobile theft prevention account. A special revenue account in the state 
157.24 	treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1. 
157.25 	Of the revenue in the account, $1,300,000 each year must be transferred to the general fund
157.26 	insurance fraud prevention account under section 45.0135, subdivision 6. Revenues in excess 
157.27 	of $1,300,000 each year may be used only for the automobile theft prevention program 
157.28 	described in section 65B.84.

157.29 	Sec. 5. Minnesota Statutes 2016, section 325J.06, is amended to read:
157.30 	325J.06 EFFECT OF NONREDEMPTION.
158.1 	(a) A pledgor shall have no obligation to redeem pledged goods or make any payment 
158.2 	on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of 
158.3 	the pawn transaction, renewal, or extension shall automatically be forfeited to the 
158.4 	pawnbroker, and qualified right, title, and interest in and to the goods shall automatically 
158.5 	vest in the pawnbroker.
158.6 	(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a) 
158.7 	is qualified only by the pledgor's right, while the pledged goods remain in possession of the 
158.8 	pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees 
158.9 	and/or interest accrued up to the date of redemption.
158.10 	(c) A pawn transaction that involves holding only the title to property is subject to chapter 
158.11 	168A or 336.

158.12 	Sec. 6. Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to 
158.13 	read:
158.14 		Subd. 1a.Required lists. (a) Beginning July 1, 2017, and annually thereafter, and 
158.15 	provided that a member has requested it, the commissioner shall provide to each member 
158.16 	of the legislature a list in electronic form of all persons appearing to be owners of abandoned 
158.17 	property whose last known address is located in the legislator's respective legislative district.
158.18 	(b) Beginning July 1, 2017, and every six months thereafter, and provided that a county 
158.19 	has requested it, the commissioner shall provide to the county a list in electronic form of 
158.20 	all persons appearing to be owners of abandoned property whose last known address is 
158.21 	located in the county. A request under this paragraph must be made in writing by a person 
158.22 	authorized by the county to make the request and is good until canceled.

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

158.24 	Sec. 7. Minnesota Statutes 2016, section 345.49, is amended to read:
158.25 	345.49 CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED.
158.26 		Subdivision 1.Filing. (a) Any person claiming an interest in any property delivered to 
158.27 	the state under sections 345.31 to 345.60 may file a claim thereto or to the proceeds from 
158.28 	the sale thereof on the form prescribed by the commissioner.
158.29 	(b) Any person claiming an interest in property evidenced by a will or trust document, 
158.30 	or court order, may submit to the commissioner only such portions of the document or order 
158.31 	necessary to establish a claim.
159.1 		Subd. 2.Appropriation. There is hereby appropriated to the persons entitled to a refund, 
159.2 	from the fund in the state treasury to which the money was credited, an amount sufficient 
159.3 	to make the refund and payment.
159.4 		Subd. 3.Data. Government data received by the commissioner pursuant to this section 
159.5 	is nonpublic data or private data on individuals, as defined in section 13.02, subdivisions 9 
159.6 	and 12.

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

159.8 	Sec. 8. [471.9998] MERCHANT BAGS.
159.9 		Subdivision 1.Merchant option. All merchants, itinerant vendors, and peddlers doing 
159.10 	business in this state shall have the option to provide customers a paper, plastic, or reusable 
159.11 	bag for the packaging of any item or good purchased, provided such purchase is of a size 
159.12 	and manner commensurate with the use of paper, plastic, or reusable bags.
159.13 		Subd. 2.Prohibition; bag ban. Notwithstanding any other provision of law, no political 
159.14 	subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for 
159.15 	packaging of any item or good purchased from a merchant, itinerant vendor, or peddler.

159.16 	EFFECTIVE DATE. This section is effective May 31, 2017. Ordinances existing on 
159.17 	the effective date of this section that would be prohibited under this section are invalid as 
159.18 	of the effective date of this section.

159.19 	Sec. 9. REPORT ON UNCLAIMED PROPERTY DIVISION.
 159.20 	The commissioner shall report by February 15, 2018, to the chairs and ranking minority 
159.21 	members of the standing committees of the house of representatives and senate having 
159.22 	jurisdiction over commerce regarding the process owners of abandoned property must 
159.23 	comply with in order to file an allowed claim under Minnesota Statutes, chapter 345. The 
159.24 	report shall include information regarding the documentation and identification necessary 
159.25 	for owners of each type of abandoned property under Minnesota Statutes, chapter 345, to 
159.26 	file an allowed claim.

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

159.28 	ARTICLE 9
159.29 	TELECOMMUNICATIONS POLICY

159.30 	Section 1. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision 
159.31 	to read:
160.1 		Subd. 10.Voice-over-Internet protocol service. "Voice-over-Internet protocol service" 
160.2 	or "VoIP service" means any service that (1) enables real-time two-way voice 
160.3 	communications that originate from or terminate at the user's location in Internet protocol 
160.4 	or any successor protocol, and (2) permits users generally to receive calls that originate on 
160.5 	the public switched telephone network and terminate calls to the public switched telephone 
160.6 	network.

160.7 	Sec. 2. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision to 
160.8 	read:
160.9 		Subd. 11.Internet protocol-enabled service. "Internet protocol-enabled service" or 
160.10 	"IP-enabled service" means any service, capability, functionality, or application provided 
160.11 	using Internet protocol, or any successor protocol, that enables an end user to send or receive 
160.12 	a communication in Internet protocol format or any successor format, regardless of whether 
160.13 	that communication is voice, data, or video.

160.14 	Sec. 3. [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND 
160.15 	INTERNET PROTOCOL-ENABLED SERVICE.
160.16 		Subdivision 1.Regulation prohibited. Except as provided in this section, no state 
160.17 	agency, including the commission and the Department of Commerce, or political subdivision 
160.18 	of this state shall by rule, order, or other means directly or indirectly regulate the entry, 
160.19 	rates, terms, quality of service, availability, classification, or any other aspect of VoIP service 
160.20 	or IP-enabled service.
160.21 		Subd. 2.VoIP regulation. (a) To the extent permitted by federal law, VoIP service is 
160.22 	subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to 
160.23 	the collection and remittance of the surcharges governed by those sections.
160.24 	(b) A provider of VoIP service must comply with the requirements of chapter 403 
160.25 	applicable to the provision of access to 911 service by service providers, except to the extent 
160.26 	those requirements conflict with federal requirements for the provision of 911 service by 
160.27 	VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP provider is 
160.28 	entitled to the benefit of the limitation of liability provisions of section 403.07, subdivision 
160.29 	5. Beginning June 1, 2017, and continuing each June 1 thereafter, each VoIP provider shall 
160.30 	file a plan with the commission describing how it will comply with the requirements of this 
160.31 	paragraph. After its initial filing under this paragraph, a VoIP provider shall file with the 
160.32 	commission either an update of the plan or a statement certifying that the plan and personnel 
160.33 	contact information previously filed is still current.
161.1 		Subd. 3.Relation to other law. Nothing in this section restricts, creates, expands, or 
161.2 	otherwise affects or modifies:
161.3 	(1) the commission's authority under the Federal Communications Act of 1934, United 
161.4 	States Code, title 47, sections 251 and 252;
161.5 	(2) any applicable wholesale tariff or any commission authority related to wholesale 
161.6 	services;
161.7 	(3) any commission jurisdiction over (i) intrastate switched access rates, terms, and 
161.8 	conditions, including the implementation of federal law with respect to intercarrier 
161.9 	compensation, or (ii) existing commission authority to address or affect the resolution of 
161.10 	disputes regarding intercarrier compensation;
161.11 	(4) the rights of any entity, or the authority of the commission and local government 
161.12 	authorities, with respect to the use and regulation of public rights-of-way under sections 
161.13 	237.162 and 237.163;
161.14 	(5) the establishment or enforcement of standards, requirements or procedures in 
161.15 	procurement policies, internal operational policies, or work rules of any state agency or 
161.16 	political subdivision of the state relating to the protection of intellectual property; or
161.17 	(6) the authority of the attorney general to apply and enforce chapters 325C to 325G, 
161.18 	325K to 325M, and other laws of general applicability governing consumer protection and 
161.19 	trade practices.
161.20 		Subd. 4.Exemption. The following services delivered by IP-enabled service are not 
161.21 	regulated under this chapter:
161.22 	(1) video services provided by a cable communications system, as defined in section 
161.23 	238.02, subdivision 3;
161.24 	(2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
161.25 	(3) any other IP-enabled video service.
161.26 		Subd. 5.Preservation of existing landline telephone service.  Nothing in this section 
161.27 	restricts, creates, expands, or otherwise affects or modifies the obligations of a telephone 
161.28 	company under this chapter to offer landline telephone service that is not Voice over Internet 
161.29 	Protocol service.

162.1 	ARTICLE 10
162.2 	ENERGY POLICY

162.3 	Section 1. Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read:
162.4 		Subdivision 1.Establishment. (a) There is established a Legislative Energy Commission 
162.5 	to study and to make recommendations for legislation concerning issues related to its duties 
162.6 	under subdivision 3.
162.7 	(b) The commission consists of:
162.8 	(1) ten nine members of the house of representatives, five of whom are appointed by 
162.9 	the speaker of the house, and four of whom must be from are appointed by the leader of the 
162.10 	minority caucus, and including the chair of the committee with primary jurisdiction over 
162.11 	energy policy; the chair or another member of each of the committees with primary 
162.12 	jurisdiction over environmental policy, agricultural policy, and transportation policy; and
162.13 	(2) ten nine members of the senate to be, five of whom are appointed by the Subcommittee 
162.14 	on Committees, leader of the majority caucus and four of whom must be from are appointed 
162.15 	by the leader of the minority caucus, and including the chair of the committee with primary 
162.16 	jurisdiction over energy policy; and the chair or another member of each of the committees 
162.17 	with primary jurisdiction over environmental policy, agricultural policy, and transportation 
162.18 	policy.
162.19 	(c) The commission may employ full-time and part-time staff, contract for consulting 
162.20 	services, and may reimburse the expenses of persons requested to assist it in its duties. The 
162.21 	director of the Legislative Coordinating Commission shall assist the commission in 
162.22 	administrative matters. The commission shall elect cochairs, one member of the house of 
162.23 	representatives and one member of the senate from among the committee and subcommittee 
162.24 	chairs named to the commission. The commission members from the house of representatives 
162.25 	shall elect the house of representatives cochair, and the commission members from the 
162.26 	senate shall elect the senate cochair.

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

162.28 	Sec. 2. Minnesota Statutes 2016, section 16B.323, is amended to read:
162.29 	16B.323 SOLAR ENERGY IN STATE BUILDINGS.
162.30 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
162.31 	the meanings given.
163.1 	(b) "Made in Minnesota" means the manufacture in this state of:
163.2 	(1) components of a solar thermal system certified by the Solar Rating and Certification 
163.3 	Corporation; or
163.4 	(2) solar photovoltaic modules that:
163.5 	(i) are manufactured at a manufacturing facility in Minnesota that is registered and 
163.6 	authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory, 
163.7 	CSA International, Intertek, or an equivalent independent testing agency;
163.8 	(ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek, 
163.9 	or an equivalent independent testing agency; and
163.10 	(iii) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), clauses 
163.11 	(1), (5), and (6).
163.12 	For the purposes of clause (2), "manufactured" has the meaning given in section 
163.13 	116C.7791, subdivision 1, paragraph (b), clauses (1) and (2).
163.14 	(c) (b) "Major renovation" means a substantial addition to an existing building, or a 
163.15 	substantial change to the interior configuration or the energy system of an existing building.
163.16 	(d) (c) "Solar energy system" means solar photovoltaic modules devices alone or installed 
163.17 	in conjunction with a solar thermal system.
163.18 	(e) "Solar Photovoltaic module (d) "Photovoltaic device" has the meaning given in 
163.19 	section 116C.7791, subdivision 1, paragraph (e) 216C.06, subdivision 16.
163.20 	(f) (e) "Solar thermal system" has the meaning given "qualifying solar thermal project" 
163.21 	in section 216B.2411, subdivision 2, paragraph (e).
163.22 	(g) (f) "State building" means a building whose construction or renovation is paid wholly 
163.23 	or in part by the state from the bond proceeds fund.
163.24 		Subd. 2.Solar energy system. (a) As provided in paragraphs (b) and (c), a project for 
163.25 	the construction or major renovation of a state building, after the completion of a cost-benefit 
163.26 	analysis, may include installation of "Made in Minnesota" solar energy systems of up to 40 
163.27 	kilowatts capacity on, adjacent, or in proximity to the state building.
163.28 	(b) The capacity of a solar energy system must be less than 40 kilowatts to the extent 
163.29 	necessary to match the electrical load of the building or to the extent necessary to keep the 
163.30 	costs for the installation below the five percent maximum set by paragraph (c).
164.1 	(c) The cost of the solar energy system must not exceed five percent of the appropriations 
164.2 	from the bond proceeds fund for the construction or renovation of the state building. Purchase 
164.3 	and installation of a solar thermal system may account for no more than 25 percent of the 
164.4 	cost of a solar energy system installation.
164.5 	(d) A project subject to this section is ineligible to receive a rebate for the installation 
164.6 	of a solar energy system under section 116C.7791 or from any utility.

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

164.8 	Sec. 3. Minnesota Statutes 2016, section 116.03, is amended by adding a subdivision to 
164.9 	read:
164.10 		Subd. 7.Clean Air Act settlement money. "Clean Air Act settlement money" means 
164.11 	money required to be paid to the state as a result of litigation or settlements of alleged 
164.12 	violations of the federal Clean Air Act, United States Code, title 42, section 7401, et seq., 
164.13 	or rules adopted thereunder, by an automobile manufacturer. Clean Air Act settlement 
164.14 	money may not be spent until it is specifically appropriated by law.

164.15 	Sec. 4. Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read:
164.16 		Subdivision 1.Renewable development Clean energy advancement fund (C-LEAF)
164.17 	account. (a) The clean energy advancement fund account, or C-LEAF account, is established 
164.18 	as a separate account in the special revenue fund in the state treasury. Appropriations and 
164.19 	transfers to the account shall be credited to the account. Earnings, such as interest, dividends, 
164.20 	and any other earnings arising from assets of the account, shall be credited to the account. 
164.21 	Funds remaining in the account at the end of a fiscal year are not canceled to the general 
164.22 	fund but remain in the account until expended.
164.23 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
164.24 	plant must transfer all funds in the renewable development account previously established 
164.25 	under this subdivision and managed by the public utility to the C-LEAF account established 
164.26 	in paragraph (a). Funds awarded to grantees in previous grant cycles that have not yet been 
164.27 	expended and unencumbered funds required to be paid in calendar year 2017 under 
164.28 	paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject to transfer 
164.29 	under this paragraph.
164.30 	(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
164.31 	each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating 
164.32 	plant must transfer to a renewable development the C-LEAF account $500,000 each year 
165.1 	for each dry cask containing spent fuel that is located at the Prairie Island power plant for 
165.2 	each year the plant is in operation, and $7,500,000 each year the plant is not in operation if 
165.3 	ordered by the commission pursuant to paragraph (c) (h). The fund transfer must be made 
165.4 	if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie 
165.5 	Island for any part of a year.
165.6 	(b) (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
165.7 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
165.8 	plant must transfer to the renewable development C-LEAF account $350,000 each year for 
165.9 	each dry cask containing spent fuel that is located at the Monticello nuclear power plant for 
165.10 	each year the plant is in operation, and $5,250,000 each year the plant is not in operation if 
165.11 	ordered by the commission pursuant to paragraph (c) (h). The fund transfer must be made 
165.12 	if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at 
165.13 	Monticello for any part of a year.
165.14 	(e) Each year, the public utility shall withhold from the funds transferred to the C-LEAF 
165.15 	account under paragraphs (c) and (d) the amount necessary to pay its obligations under 
165.16 	paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
165.17 	(f) If the commission approves a new or amended power purchase agreement, the 
165.18 	termination of a power purchase agreement, or the purchase and closure of a facility under 
165.19 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
165.20 	the public utility subject to this section shall enter into a contract with the city in which the 
165.21 	poultry litter plant is located to provide grants to the city for the purposes of economic 
165.22 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
165.23 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
165.24 	by the public utility from funds withheld from the transfer to the C-LEAF account, as 
165.25 	provided in paragraphs (b) and (e).
165.26 	(g) If the commission approves a new or amended power purchase agreement, or the 
165.27 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
165.28 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
165.29 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
165.30 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
165.31 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
165.32 	on August 1, 2017, and on each June 1 thereafter through 2021, to assist the transition 
165.33 	required by the new, amended, or terminated power purchase agreement. The grant shall 
165.34 	be paid by the public utility from funds withheld from the transfer to the C-LEAF account 
165.35 	as provided in paragraphs (b) and (e).
166.1 	(c) (h) After discontinuation of operation of the Prairie Island nuclear plant or the 
166.2 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
166.3 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
166.4 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
166.5 	facility for any year in which the commission finds, by the preponderance of the evidence, 
166.6 	that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 
166.7 	at the facility to a permanent or interim storage site out of the state. This determination shall 
166.8 	be made at least every two years.
166.9 	(d) (i) Funds in the account may be expended only for any of the following purposes:
166.10 	(1) to increase the market penetration within the state of renewable electric energy 
166.11 	resources at reasonable costs;
166.12 	(2) to promote the start-up, expansion, and attraction of renewable electric energy projects 
166.13 	and companies within the state;
166.14 	(3) to stimulate research and development within the state into of renewable electric 
166.15 	energy technologies; and
166.16 	(4) to develop near-commercial and demonstration scale renewable electric projects or 
166.17 	near-commercial and demonstration scale electric infrastructure delivery projects if those 
166.18 	delivery projects enhance the delivery of renewable electric energy
166.19 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
166.20 	electricity storage, load control, and smart meter technology; and
166.21 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
166.22 	efficiency and flexibility.
166.23 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
166.24 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
166.25 	Prairie Island Indian community or its members.
166.26 	The utility that owns a nuclear generating plant is eligible to apply for renewable development 
166.27 	account grants under this subdivision.
166.28 	(j) For the purposes of paragraph (i), the following terms have the meanings given:
166.29 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
166.30 	(c), clauses (1), (2), (4), and (5); and
166.31 	(2) "grid modernization" means:
166.32 	(i) enhancing the reliability of the electrical grid;
167.1 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
167.2 	and
167.3 	(iii) increasing energy conservation opportunities by facilitating communication between 
167.4 	the utility and its customers through the use of two-way meters, control technologies, energy 
167.5 	storage and microgrids, technologies to enable demand response, and other innovative 
167.6 	technologies.
167.7 	(e) Expenditures authorized by this subdivision from the account may be made only 
167.8 	after approval by order of the Public Utilities Commission upon a petition by the public 
167.9 	utility. The commission may approve proposed expenditures, may disapprove proposed 
167.10 	expenditures that it finds to be not in compliance with this subdivision or otherwise not in 
167.11 	the public interest, and may, if agreed to by the public utility, modify proposed expenditures. 
167.12 	The commission may approve reasonable and necessary expenditures for administering the 
167.13 	account in an amount not to exceed five percent of expenditures. Commission approval is 
167.14 	not required for expenditures required under subdivisions 2 and 3, section 116C.7791, or 
167.15 	other law.
167.16 	(f) The account shall be managed by the public utility but the public utility must consult 
167.17 	about account expenditures with an (k) A C-LEAF advisory group that includes, among 
167.18 	others, representatives of the public utility and its ratepayers, and includes at least one 
167.19 	representative of the Prairie Island Indian community appointed by that community's tribal 
167.20 	council, shall develop recommendations on account expenditures. The commission may 
167.21 	require that other interests be represented on the advisory group. The advisory group must 
167.22 	be consulted with respect to the general scope of expenditures in designing design a request 
167.23 	for proposal and in evaluating evaluate projects submitted in response to a request for 
167.24 	proposals. In addition to consulting with The advisory group, the public utility must utilize 
167.25 	an independent third-party expert to evaluate proposals submitted in response to a request 
167.26 	for proposal, including all proposals made by the public utility. A request for proposal for 
167.27 	research and development under paragraph (d) (i), clause (3) (1), may be limited to or include 
167.28 	a request to higher education institutions located in Minnesota for multiple projects authorized 
167.29 	under paragraph (d) (i), clause (3) (1). The request for multiple projects may include a 
167.30 	provision that exempts the projects from the third-party expert review and instead provides 
167.31 	for project evaluation and selection by a merit peer review grant system. The utility should 
167.32 	attempt to reach agreement with the advisory group after consulting with it but thepublic 
167.33 	utility has full and sole authority to determine which expendituresexpenditure 
167.34 	recommendations shall be submitted by the advisory group to the commission for commission 
167.35 	approval legislature as provided in paragraph (q). In the process of determining request for 
168.1 	proposal scope and subject and in evaluating responses to request for proposals, the public 
168.2 	utility advisory group must strongly consider, where reasonable, potential benefit to 
168.3 	Minnesota citizens and businesses and the utility's ratepayers.
168.4 	(g) Funds in (l) The C-LEAF advisory group shall present its recommended appropriations 
168.5 	from the account to the senate and house of representatives committees with jurisdiction 
168.6 	over energy policy and finance annually by February 15. Expenditures from the account 
168.7 	may not must be directly appropriated by the legislature by a law enacted after January 1, 
168.8 	2012, and unless appropriated by a law enacted prior to that date may be expended only 
168.9 	pursuant to an order of the commission according to this subdivision. In enacting 
168.10 	appropriations from the account, the legislature:
168.11 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
168.12 	a project recommended by the C-LEAF advisory group; and
168.13 	(2) may not appropriate money for a project the C-LEAF advisory group has not 
168.14 	recommended funding.
168.15 	(h) (m) A request for proposal for renewable energy generation projects must, when 
168.16 	feasible and reasonable, give preference to projects that are most cost-effective for a particular 
168.17 	energy source.
168.18 	(i) (n) The public utility advisory group must annually, by February 15, report to the 
168.19 	chairs and ranking minority members of the legislative committees with jurisdiction over 
168.20 	energy policy on projects funded by the account for the prior year and all previous years. 
168.21 	The report must, to the extent possible and reasonable, itemize the actual and projected 
168.22 	financial benefit to the public utility's ratepayers of each project.
168.23 	(o) By February 1, 2018, and each February 1 thereafter, the commissioner of 
168.24 	management and budget shall submit a written report regarding the availability of funds in 
168.25 	and obligations of the account to the chairs and ranking minority members of the senate 
168.26 	and house committees with jurisdiction over energy policy and finance, the public utility, 
168.27 	and the advisory group.
168.28 	(j) (p) A project receiving funds from the account must produce a written final report 
168.29 	that includes sufficient detail for technical readers and a clearly written summary for 
168.30 	nontechnical readers. The report must include an evaluation of the project's financial, 
168.31 	environmental, and other benefits to the state and the public utility's ratepayers.
169.1 	(k) (q) Final reports, any mid-project status reports, and renewable development account 
169.2 	financial reports must be posted online on a public Web site designated by the commission
169.3 	commissioner of commerce.
169.4 	(l) (r) All final reports must acknowledge that the project was made possible in whole 
169.5 	or part by the Minnesota renewable development fund C-LEAF account, noting that the 
169.6 	fund account is financed by the public utility's ratepayers.
169.7 	(s) Of the amount in the C-LEAF account, priority must be given to making the payments 
169.8 	required under section 216C.417.

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

169.10 	Sec. 5. Minnesota Statutes 2016, section 116C.779, is amended by adding a subdivision 
169.11 	to read:
169.12 		Subd. 1a.Payment termination. (a) The commissioner shall track the cumulative 
169.13 	transfers made to the clean energy advancement fund account and its predecessor, the 
169.14 	renewable development account, each year since 1999 for each dry cask containing spent 
169.15 	fuel that is stored at an independent spent-fuel storage facility at Prairie Island or Monticello. 
169.16 	During the time when state law required the public utility to transfer a specific amount of 
169.17 	funds to the account for all the casks stored, the per-cask allocation shall be calculated by 
169.18 	dividing the total amount transferred by the number of casks stored that year.
169.19 	(b) When the commissioner determines that the cumulative transfers calculated under 
169.20 	paragraph (a) for a specific cask reach $10,000,000, the commissioner shall notify the public 
169.21 	utility that no additional transfers to the account for that cask shall be made.
169.22 	(c) This subdivision does not affect any provisions of subdivision 1, paragraph (c) or 
169.23 	(d), with respect to transfers to the account made after a plant has ceased operation.

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

169.25 	Sec. 6. Minnesota Statutes 2016, section 116C.7792, is amended to read:
169.26 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
169.27 	The utility subject to section 116C.779 shall operate a program to provide solar energy 
169.28 	production incentives for solar energy systems of no more than a total nameplate capacity 
169.29 	of 20 kilowatts direct current. The program shall be operated for five consecutive calendar 
169.30 	years commencing in 2014. $5,000,000 shall be allocated for each of the five years from 
169.31 	the renewable development C-LEAF account established in section 116C.779 to a separate 
170.1 	account for the purpose of the solar production incentive program. The solar system must 
170.2 	be sized to less than 120 percent of the customer's on-site annual energy consumption. The 
170.3 	production incentive must be paid for ten years commencing with the commissioning of 
170.4 	the system. The utility must file a plan to operate the program with the commissioner of 
170.5 	commerce. The utility may not operate the program until it is approved by the commissioner.

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

170.7 	Sec. 7. Minnesota Statutes 2016, section 216B.03, is amended to read:
170.8 	216B.03 REASONABLE RATE.
170.9 	Every rate made, demanded, or received by any public utility, or by any two or more 
170.10 	public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably 
170.11 	preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable, 
170.12 	and consistent in application to a class of consumers. To the maximum reasonable extent, 
170.13 	the commission shall set rates to encourage economic growth, job retention, energy 
170.14 	conservation and, renewable energy use, and to further the goals of sections 216B.164, 
170.15 	216B.1696, 216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in 
170.16 	favor of the consumer. For rate-making purposes a public utility may treat two or more 
170.17 	municipalities served by it as a single class wherever the populations are comparable in size 
170.18 	or the conditions of service are similar.

170.19 	EFFECTIVE DATE. This section is effective the day following final enactment and 
170.20 	applies immediately to all proceedings pending before the commission.

170.21 	Sec. 8. Minnesota Statutes 2016, section 216B.16, subdivision 1a, is amended to read:
170.22 		Subd. 1a.Settlement. (a) When a public utility submits a general rate filing, the Office 
170.23 	of Administrative Hearings, before conducting a contested case hearing, shall convene a 
170.24 	settlement conference including all of the parties for the purpose of encouraging settlement 
170.25 	of any or all of the issues in the contested case. If a stipulated settlement is not reached 
170.26 	before the contested case hearing, the Office of Administrative Hearings may reconvene 
170.27 	the settlement conference during or after completion of the contested case hearing at its 
170.28 	discretion or a party's request. The Office of Administrative Hearings or the commission 
170.29 	may, upon the request of any party and the public utility, extend the procedural schedule 
170.30 	of the contested case in order to permit the parties to engage in settlement discussions. An 
170.31 	extension must be for a definite period of time not to exceed 60 days.
171.1 	(b) If the applicant and all intervening parties agree to a stipulated settlement of the case 
171.2 	or parts of the case, the settlement must be submitted to the commission. The commission 
171.3 	shall accept or reject the settlement in its entirety and, at any time until its final order is 
171.4 	issued in the case, may require the Office of Administrative Hearings to conduct a contested 
171.5 	case hearing. The commission may accept the settlement on finding that to do so the 
171.6 	settlement is supported by substantial evidence and approving the settlement is in the public 
171.7 	interest and is supported by substantial evidence. The analysis must consider the impact of 
171.8 	the proposed settlement on the economy, job growth, and job retention. If the commission 
171.9 	does not accept the settlement, it may issue an order modifying the settlement subject to 
171.10 	the approval of the parties. Each party shall have ten days in which to reject the proposed 
171.11 	modification. If no party rejects the proposed modification, the commission's order becomes 
171.12 	final. If the commission rejects the settlement, or a party rejects the commission's proposed 
171.13 	modification, a contested case hearing must be completed.

171.14 	EFFECTIVE DATE. This section is effective the day following final enactment and 
171.15 	applies immediately to all proceedings pending before the commission.

171.16 	Sec. 9. Minnesota Statutes 2016, section 216B.16, subdivision 6, is amended to read:
171.17 		Subd. 6.Factors considered, generally. The commission, in the exercise of its powers 
171.18 	under this chapter to determine just and reasonable rates for public utilities, shall give due 
171.19 	consideration to the public need for adequate, efficient, and reasonable service, as well as 
171.20 	the need for competitive electric rates, job preservation, and economic growth, and to the 
171.21 	need of the public utility for revenue sufficient to enable it to meet the cost of furnishing 
171.22 	the service, including adequate provision for depreciation of its utility property used and 
171.23 	useful in rendering service to the public, and to earn a fair and reasonable return upon the 
171.24 	investment in such property. In determining the rate base upon which the utility is to be 
171.25 	allowed to earn a fair rate of return, the commission shall give due consideration to evidence 
171.26 	of the cost of the property when first devoted to public use, to prudent acquisition cost to 
171.27 	the public utility less appropriate depreciation on each, to construction work in progress, to 
171.28 	offsets in the nature of capital provided by sources other than the investors, and to other 
171.29 	expenses of a capital nature. For purposes of determining rate base, the commission shall 
171.30 	consider the original cost of utility property included in the base and shall make no allowance 
171.31 	for its estimated current replacement value. If the commission orders a generating facility 
171.32 	to terminate its operations before the end of the facility's physical life in order to comply 
171.33 	with a specific state or federal energy statute or policy, the commission may allow the public 
171.34 	utility to recover any positive net book value of the facility as determined by the commission.

172.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
172.2 	applies immediately to all proceedings pending before the commission.

172.3 	Sec. 10. Minnesota Statutes 2016, section 216B.164, subdivision 5, is amended to read:
172.4 		Subd. 5.Dispute; resolution. In the event of disputes between an electric a public utility 
172.5 	and a qualifying facility, either party may request a determination of the issue by the 
172.6 	commission. In any such determination, the burden of proof shall be on the public utility. 
172.7 	The commission in its order resolving each such dispute shall require payments to the 
172.8 	prevailing party of the prevailing party's costs, disbursements, and reasonable attorneys' 
172.9 	fees, except that the qualifying facility will be required to pay the costs, disbursements, and 
172.10 	attorneys' fees of the public utility only if the commission finds that the claims of the 
172.11 	qualifying facility in the dispute have been made in bad faith, or are a sham, or are frivolous.

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

172.13 	Sec. 11. Minnesota Statutes 2016, section 216B.164, subdivision 9, is amended to read:
172.14 		Subd. 9.Municipal electric utility. For purposes of this section only, except subdivision 
172.15 	5, and with respect to municipal electric utilities only, the term "commission" means the 
172.16 	governing body of each municipal electric utility that adopts and has in effect rules 
172.17 	implementing this section which are consistent with the rules adopted by the Minnesota 
172.18 	Public Utilities Commission under subdivision 6. As used in this subdivision, the governing 
172.19 	body of a municipal electric utility means the city council of that municipality; except that, 
172.20 	if another board, commission, or body is empowered by law or resolution of the city council 
172.21 	or by its charter to establish and regulate rates and days for the distribution of electric energy 
172.22 	within the service area of the city, that board, commission, or body shall be considered the 
172.23 	governing body of the municipal electric utility.

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

172.25 	Sec. 12. Minnesota Statutes 2016, section 216B.164, is amended by adding a subdivision 
172.26 	to read:
172.27 		Subd. 11.Cooperative electric association. (a) For purposes of this section only, the 
172.28 	term "commission" means the board of directors of a cooperative association that (1) elects, 
172.29 	by resolution, to assume the authority delegated to the Public Utilities Commission over 
172.30 	cooperative electric associations under this section, and (2) adopts and has in effect rules 
172.31 	implementing this section. The rules must provide for a process to resolve disputes that 
172.32 	arise under this section, and must include a provision that a request by either party for 
173.1 	mediation of the dispute by an independent third party must be implemented. A cooperative 
173.2 	electric association that has adopted a resolution and rules under this subdivision is exempt 
173.3 	from regulation by the Public Utilities Commission under this section.
173.4 	(b) Except as provided in paragraph (c), any proceedings concerning the activities of a 
173.5 	cooperative electric association under this section that are pending at the Public Utilities 
173.6 	Commission on the effective date of this section are terminated on that date.
173.7 	(c) The Public Utilities Commission shall limit its investigation in Docket No. 16-512 
173.8 	determining whether the methodology used by cooperative associations to establish a fee 
173.9 	under section 216B.164, subdivision 3, paragraph (a), complies with state law. The 
173.10 	commission may complete the investigation no later than December 31, 2017. A methodology 
173.11 	determined by the commission to comply with state law may not be challenged in a dispute 
173.12 	under section 216B.164. If the commission determines that a methodology does not comply 
173.13 	with state law, it shall clearly state the changes necessary to bring the methodology into 
173.14 	compliance, and the cooperative electric association shall proceed under paragraph (a).

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

173.16 	Sec. 13. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:
173.17 		Subd. 2f.Solar energy standard. (a) In addition to the requirements of subdivisions 2a 
173.18 	and 2b, each public utility shall generate or procure sufficient electricity generated by solar 
173.19 	energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at 
173.20 	least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is 
173.21 	generated by solar energy.
173.22 	(b) For a public utility with more than 200,000 retail electric customers, at least ten 
173.23 	percent of the 1.5 percent goal must be met by solar energy generated by or procured from 
173.24 	solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less.
173.25 	(c) A public utility with between 50,000 and 200,000 retail electric customers:
173.26 	(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by 
173.27 	or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or 
173.28 	less; and
173.29 	(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions 
173.30 	of 40 kilowatts or less to a community solar garden program operated by the public utility 
173.31 	that has been approved by the commission.
174.1 	(b) (d) The solar energy standard established in this subdivision is subject to all the 
174.2 	provisions of this section governing a utility's standard obligation under subdivision 2a.
174.3 	(c) (e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the 
174.4 	retail electric sales in Minnesota be generated by solar energy.
174.5 	(d) (f) For the purposes of calculating the total retail electric sales of a public utility 
174.6 	under this subdivision, there shall be excluded retail electric sales to customers that are:
174.7 	(1) an iron mining extraction and processing facility, including a scram mining facility 
174.8 	as defined in Minnesota Rules, part 6130.0100, subpart 16; or
174.9 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
174.10 	manufacturer.
174.11 	Those customers may not have included in the rates charged to them by the public utility 
174.12 	any costs of satisfying the solar standard specified by this subdivision.
174.13 	(e) (g) A public utility may not use energy used to satisfy the solar energy standard under 
174.14 	this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may 
174.15 	not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the 
174.16 	solar standard under this subdivision.
174.17 	(f) (h) Notwithstanding any law to the contrary, a solar renewable energy credit associated 
174.18 	with a solar photovoltaic device installed and generating electricity in Minnesota after 
174.19 	August 1, 2013, but before 2020 may be used to meet the solar energy standard established 
174.20 	under this subdivision.
174.21 	(g) (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall 
174.22 	file a report with the commission reporting its progress in achieving the solar energy standard 
174.23 	established under this subdivision.

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

174.25 	Sec. 14. Minnesota Statutes 2016, section 216B.1694, subdivision 3, is amended to read:
174.26 		Subd. 3.Staging and permitting. (a) A natural gas-fired plant that is located on one 
174.27 	site designated as an innovative energy project site under subdivision 1, clause (3), is 
174.28 	accorded the regulatory incentives granted to an innovative energy project under subdivision 
174.29 	2, clauses (1) to (3), and may exercise the authorities therein.
174.30 	(b) Following issuance of a final state or federal environmental impact statement for an 
174.31 	innovative energy project that was a subject of contested case proceedings before an 
174.32 	administrative law judge:
175.1 	(1) site and route permits and water appropriation approvals for an innovative energy 
175.2 	project must also be deemed valid for a plant meeting the requirements of paragraph (a) 
175.3 	and shall remain valid until the earlierlater of (i) four years from the date the final required 
175.4 	state or federal preconstruction permit is issued or (ii) June 30, 2019 2025; and
175.5 	(2) no air, water, or other permit issued by a state agency that is necessary for constructing 
175.6 	an innovative energy project may be the subject of contested case hearings, notwithstanding 
175.7 	Minnesota Rules, parts 7000.1750 to 7000.2200.

175.8 	Sec. 15. [216B.1697] STATE-MANDATED ENERGY PURCHASES; PUBLIC 
175.9 	INFORMATION.
175.10 	A utility serving Minnesota customers at retail must, within 30 days of entering into an 
175.11 	agreement to purchase energy that is used to meet a requirement under state law to purchase 
175.12 	or generate certain amounts and types of energy, including, but not limited to, requirements 
175.13 	in sections 216B.1691, 216B.2423, and 216B.2424, post the following information contained 
175.14 	in the agreement on the utility's Web site:
175.15 	(1) the wholesale price per unit of energy over the term of the agreement, including any 
175.16 	escalator clauses or inflation factors; and
175.17 	(2) the amount of energy to be purchased each year by the utility over the term of the 
175.18 	agreement.

175.19 	EFFECTIVE DATE. This section is effective immediately and applies to all power 
175.20 	purchase agreements entered into on or after July 1, 2017.

175.21 	Sec. 16. Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read:
175.22 		Subd. 1b.Conservation improvement by cooperative association or municipality.
 175.23 	(a) This subdivision applies to:
175.24 	(1) a cooperative electric association that provides retail service to its more than 5,000
175.25 	members;
175.26 	(2) a municipality that provides electric service to more than 1,000 retail customers; and
175.27 	(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales 
175.28 	to natural gas to retail customers.
175.29 	(b) Each cooperative electric association and municipality subject to this subdivision 
175.30 	shall spend and invest for energy conservation improvements under this subdivision the 
175.31 	following amounts:
176.1 	(1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas 
176.2 	and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross 
176.3 	operating revenues from electric and gas service provided in the state to large electric 
176.4 	customer facilities; and
176.5 	(2) for a cooperative electric association, 1.5 percent of its gross operating revenues 
176.6 	from service provided in the state, excluding gross operating revenues from service provided 
176.7 	in the state to large electric customer facilities indirectly through a distribution cooperative 
176.8 	electric association.
176.9 	(c) Each municipality and cooperative electric association subject to this subdivision 
176.10 	shall identify and implement energy conservation improvement spending and investments 
176.11 	that are appropriate for the municipality or association, except that a municipality or 
176.12 	association may not spend or invest for energy conservation improvements that directly 
176.13 	benefit a large energy facility or a large electric customer facility for which the commissioner 
176.14 	has issued an exemption under subdivision 1a, paragraph (b).
176.15 	(d) Each municipality and cooperative electric association subject to this subdivision 
176.16 	may spend and invest annually up to ten percent of the total amount required to be spent 
176.17 	and invested on energy conservation improvements under this subdivision on research and 
176.18 	development projects that meet the definition of energy conservation improvement in 
176.19 	subdivision 1 and that are funded directly by the municipality or cooperative electric 
176.20 	association.
176.21 	(e) Load-management activities may be used to meet 50 percent of the conservation 
176.22 	investment and spending requirements of this subdivision.
176.23 	(f) A generation and transmission cooperative electric association that provides energy 
176.24 	services to cooperative electric associations that provide electric service at retail to consumers 
176.25 	may invest in energy conservation improvements on behalf of the associations it serves and 
176.26 	may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate 
176.27 	basis. A municipal power agency or other not-for-profit entity that provides energy service 
176.28 	to municipal utilities that provide electric service at retail may invest in energy conservation 
176.29 	improvements on behalf of the municipal utilities it serves and may fulfill the conservation, 
176.30 	spending, reporting, and energy-savings goals on an aggregate basis, under an agreement 
176.31 	between the municipal power agency or not-for-profit entity and each municipal utility for 
176.32 	funding the investments.
176.33 	(g) Each municipality or cooperative shall file energy conservation improvement plans 
176.34 	by June 1 on a schedule determined by order of the commissioner, but at least every three 
177.1 	years. Plans received by June 1 must be approved or approved as modified by the 
177.2 	commissioner by December 1 of the same year. The municipality or cooperative shall 
177.3 	provide an evaluation to the commissioner detailing its energy conservation improvement 
177.4 	spending and investments for the previous period. The evaluation must briefly describe 
177.5 	each conservation program and must specify the energy savings or increased efficiency in 
177.6 	the use of energy within the service territory of the utility or association that is the result of 
177.7 	the spending and investments. The evaluation must analyze the cost-effectiveness of the 
177.8 	utility's or association's conservation programs, using a list of baseline energy and capacity 
177.9 	savings assumptions developed in consultation with the department. The commissioner 
177.10 	shall review each evaluation and make recommendations, where appropriate, to the 
177.11 	municipality or association to increase the effectiveness of conservation improvement 
177.12 	activities.
177.13 	(h) MS 2010 [Expired, 1Sp2003 c 11 art 3 s 4; 2007 c 136 art 2 s 5]
177.14 	(i) (h) The commissioner shall consider and may require a utility, association, or other 
177.15 	entity providing energy efficiency and conservation services under this section to undertake 
177.16 	a program suggested by an outside source, including a political subdivision, nonprofit 
177.17 	corporation, or community organization.

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

177.19 	Sec. 17. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:
177.20 		Subd. 1c.Energy-saving goals. (a) The commissioner shall establish energy-saving 
177.21 	goals for energy conservation improvement expenditures and shall evaluate an energy 
177.22 	conservation improvement program on how well it meets the goals set.
177.23 	(b) Each individual utility and association shall have an annual energy-savings goal 
177.24 	equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 
177.25 	commissioner under paragraph (d). The savings goals must be calculated based on the most 
177.26 	recent three-year weather-normalized average. A utility or association may elect to carry 
177.27 	forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar 
177.28 	years, except that savings from electric utility infrastructure projects allowed under paragraph 
177.29 	(d) may be carried forward for five years. A particular energy savings can be used only for 
177.30 	one year's goal.
177.31 	(c) The commissioner must adopt a filing schedule that is designed to have all utilities 
177.32 	and associations operating under an energy-savings plan by calendar year 2010.
178.1 	(d) In its energy conservation improvement plan filing, a utility or association may 
178.2 	request the commissioner to adjust its annual energy-savings percentage goal based on its 
178.3 	historical conservation investment experience, customer class makeup, load growth, a 
178.4 	conservation potential study, or other factors the commissioner determines warrants an 
178.5 	adjustment. The commissioner may not approve a plan of a public utility that provides for 
178.6 	an annual energy-savings goal of less than one percent of gross annual retail energy sales 
178.7 	from energy conservation improvements.
178.8 	A utility or association may include in its energy conservation plan energy savings from 
178.9 	electric utility infrastructure projects approved by the commission under section 216B.1636
178.10 	or waste heat recovery converted into electricity projects that may count as energy savings 
178.11 	in addition to a minimum energy-savings goal of at least one percent for energy conservation 
178.12 	improvements. Energy savings from electric utility infrastructure projects, as defined in 
178.13 	section 216B.1636, may be included in the energy conservation plan of a municipal utility 
178.14 	or cooperative electric association. Electric utility infrastructure projects must result in 
178.15 	increased energy efficiency greater than that which would have occurred through normal 
178.16 	maintenance activity.
178.17 	(e) An energy-savings goal is not satisfied by attaining the revenue expenditure 
178.18 	requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 
178.19 	energy-savings goal established in this subdivision.
178.20 	(f) An association or utility is not required to make energy conservation investments to 
178.21 	attain the energy-savings goals of this subdivision that are not cost-effective even if the 
178.22 	investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, 
178.23 	in determining cost-effectiveness, the commissioner shall consider the costs and benefits 
178.24 	to ratepayers, the utility, participants, and society. In addition, the commissioner shall 
178.25 	consider the rate at which an association or municipal utility is increasing its energy savings 
178.26 	and its expenditures on energy conservation.
178.27 	(g) On an annual basis, the commissioner shall produce and make publicly available a 
178.28 	report on the annual energy savings and estimated carbon dioxide reductions achieved by 
178.29 	the energy conservation improvement programs for the two most recent years for which 
178.30 	data is available. The commissioner shall report on program performance both in the 
178.31 	aggregate and for each entity filing an energy conservation improvement plan for approval 
178.32 	or review by the commissioner.
179.1 	(h) By January 15, 2010, the commissioner shall report to the legislature whether the 
179.2 	spending requirements under subdivisions 1a and 1b are necessary to achieve the 
179.3 	energy-savings goals established in this subdivision.
179.4 	(i) This subdivision does not apply to:
179.5 	(1) a cooperative electric association with fewer than 5,000 members;
179.6 	(2) a municipal utility with fewer than 1,000 retail electric customers; or
179.7 	(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales 
179.8 	to retail natural gas customers.

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

179.10 	Sec. 18. Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read:
179.11 		Subd. 2.Programs. (a) The commissioner may require public utilities to make 
179.12 	investments and expenditures in energy conservation improvements, explicitly setting forth 
179.13 	the interest rates, prices, and terms under which the improvements must be offered to the 
179.14 	customers. The required programs must cover no more than a three-year period. Public 
179.15 	utilities shall file conservation improvement plans by June 1, on a schedule determined by 
179.16 	order of the commissioner, but at least every three years. Plans received by a public utility 
179.17 	by June 1 must be approved or approved as modified by the commissioner by December 1 
179.18 	of that same year. The commissioner shall evaluate the program on the basis of 
179.19 	cost-effectiveness and the reliability of technologies employed. The commissioner's order 
179.20 	must provide to the extent practicable for a free choice, by consumers participating in the 
179.21 	program, of the device, method, material, or project constituting the energy conservation 
179.22 	improvement and for a free choice of the seller, installer, or contractor of the energy 
179.23 	conservation improvement, provided that the device, method, material, or project seller, 
179.24 	installer, or contractor is duly licensed, certified, approved, or qualified, including under 
179.25 	the residential conservation services program, where applicable.
179.26 	(b) The commissioner may require a utility subject to subdivision 1c to make an energy 
179.27 	conservation improvement investment or expenditure whenever the commissioner finds 
179.28 	that the improvement will result in energy savings at a total cost to the utility less than the 
179.29 	cost to the utility to produce or purchase an equivalent amount of new supply of energy. 
179.30 	The commissioner shall nevertheless ensure that every public utility operate one or more 
179.31 	programs under periodic review by the department.
179.32 	(c) Each public utility subject to subdivision 1a may spend and invest annually up to ten 
179.33 	percent of the total amount required to be spent and invested on energy conservation 
180.1 	improvements under this section by the utility on research and development projects that 
180.2 	meet the definition of energy conservation improvement in subdivision 1 and that are funded 
180.3 	directly by the public utility.
180.4 	(d) A public utility may not spend for or invest in energy conservation improvements 
180.5 	that directly benefit a large energy facility or a large electric customer facility for which the 
180.6 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 
180.7 	commissioner shall consider and may require a utility to undertake a program suggested by 
180.8 	an outside source, including a political subdivision, a nonprofit corporation, or community 
180.9 	organization.
180.10 	(e) A utility, a political subdivision, or a nonprofit or community organization that has 
180.11 	suggested a program, the attorney general acting on behalf of consumers and small business 
180.12 	interests, or a utility customer that has suggested a program and is not represented by the 
180.13 	attorney general under section 8.33 may petition the commission to modify or revoke a 
180.14 	department decision under this section, and the commission may do so if it determines that 
180.15 	the program is not cost-effective, does not adequately address the residential conservation 
180.16 	improvement needs of low-income persons, has a long-range negative effect on one or more 
180.17 	classes of customers, or is otherwise not in the public interest. The commission shall reject 
180.18 	a petition that, on its face, fails to make a reasonable argument that a program is not in the 
180.19 	public interest.
180.20 	(f) The commissioner may order a public utility to include, with the filing of the utility's 
180.21 	annual status report, the results of an independent audit of the utility's conservation 
180.22 	improvement programs and expenditures performed by the department or an auditor with 
180.23 	experience in the provision of energy conservation and energy efficiency services approved 
180.24 	by the commissioner and chosen by the utility. The audit must specify the energy savings 
180.25 	or increased efficiency in the use of energy within the service territory of the utility that is 
180.26 	the result of the spending and investments. The audit must evaluate the cost-effectiveness 
180.27 	of the utility's conservation programs.
180.28 	(g) A gas utility may not spend for or invest in energy conservation improvements that 
180.29 	directly benefit a large customer facility or commercial gas customer facility for which the 
180.30 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or 
180.31 	(e). The commissioner shall consider and may require a utility to undertake a program 
180.32 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
180.33 	or a community organization.

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

181.1 	Sec. 19. Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read:
181.2 		Subd. 5.Efficient lighting program. (a) Each public utility, cooperative electric 
181.3 	association, and municipal utility that provides electric service to retail customers and is 
181.4 	subject to subdivision 1c shall include as part of its conservation improvement activities a 
181.5 	program to strongly encourage the use of fluorescent and high-intensity discharge lamps. 
181.6 	The program must include at least a public information campaign to encourage use of the 
181.7 	lamps and proper management of spent lamps by all customer classifications.
181.8 	(b) A public utility that provides electric service at retail to 200,000 or more customers 
181.9 	shall establish, either directly or through contracts with other persons, including lamp 
181.10 	manufacturers, distributors, wholesalers, and retailers and local government units, a system 
181.11 	to collect for delivery to a reclamation or recycling facility spent fluorescent and 
181.12 	high-intensity discharge lamps from households and from small businesses as defined in 
181.13 	section 645.445 that generate an average of fewer than ten spent lamps per year.
181.14 	(c) A collection system must include establishing reasonably convenient locations for 
181.15 	collecting spent lamps from households and financial incentives sufficient to encourage 
181.16 	spent lamp generators to take the lamps to the collection locations. Financial incentives may 
181.17 	include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash 
181.18 	back system, or any other financial incentive or group of incentives designed to collect the 
181.19 	maximum number of spent lamps from households and small businesses that is reasonably 
181.20 	feasible.
181.21 	(d) A public utility that provides electric service at retail to fewer than 200,000 customers, 
181.22 	a cooperative electric association, or a municipal utility that provides electric service at 
181.23 	retail to customers may establish a collection system under paragraphs (b) and (c) as part 
181.24 	of conservation improvement activities required under this section.
181.25 	(e) The commissioner of the Pollution Control Agency may not, unless clearly required 
181.26 	by federal law, require a public utility, cooperative electric association, or municipality that 
181.27 	establishes a household fluorescent and high-intensity discharge lamp collection system 
181.28 	under this section to manage the lamps as hazardous waste as long as the lamps are managed 
181.29 	to avoid breakage and are delivered to a recycling or reclamation facility that removes 
181.30 	mercury and other toxic materials contained in the lamps prior to placement of the lamps 
181.31 	in solid waste.
181.32 	(f) If a public utility, cooperative electric association, or municipal utility contracts with 
181.33 	a local government unit to provide a collection system under this subdivision, the contract 
182.1 	must provide for payment to the local government unit of all the unit's incremental costs of 
182.2 	collecting and managing spent lamps.
182.3 	(g) All the costs incurred by a public utility, cooperative electric association, or municipal 
182.4 	utility for promotion and collection of fluorescent and high-intensity discharge lamps under 
182.5 	this subdivision are conservation improvement spending under this section.

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

182.7 	Sec. 20. Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read:
182.8 		Subd. 5d.On-bill repayment programs. (a) For the purposes of this subdivision:
182.9 	(1) "utility" means a public utility, municipal utility, or cooperative electric association
182.10 	subject to subdivision 1c that provides electric or natural gas service to retail customers; 
182.11 	and
182.12 	(2) "on-bill repayment program" means a program in which a utility collects on a 
182.13 	customer's bill repayment of a loan to the customer by an eligible lender to finance the 
182.14 	customer's investment in eligible energy conservation or renewable energy projects, and 
182.15 	remits loan repayments to the lender.
182.16 	(b) A utility may include as part of its conservation improvement plan an on-bill 
182.17 	repayment program to enable a customer to finance eligible projects with installment loans 
182.18 	originated by an eligible lender. An eligible project is one that is either an energy conservation 
182.19 	improvement, or a project installed on the customer's site that uses an eligible renewable 
182.20 	energy source as that term is defined in section 216B.2411, subdivision 2, paragraph (b), 
182.21 	but does not include mixed municipal solid waste or refuse-derived fuel from mixed 
182.22 	municipal solid waste. An eligible renewable energy source also includes solar thermal 
182.23 	technology that collects the sun's radiant energy and uses that energy to heat or cool air or 
182.24 	water, and meets the requirements of section 216C.25. To be an eligible lender, a lender 
182.25 	must:
182.26 	(1) have a federal or state charter and be eligible for federal deposit insurance;
182.27 	(2) be a government entity, including an entity established under chapter 469, that has 
182.28 	authority to provide financial assistance for energy efficiency and renewable energy projects;
182.29 	(3) be a joint venture by utilities established under section 452.25; or
182.30 	(4) be licensed, certified, or otherwise have its lending activities overseen by a state or 
182.31 	federal government agency.
183.1 	The commissioner must allow a utility broad discretion in designing and implementing an 
183.2 	on-bill repayment program, provided that the program complies with this subdivision.
183.3 	(c) A utility may establish an on-bill repayment program for all customer classes or for 
183.4 	a specific customer class.
183.5 	(d) A public utility that implements an on-bill repayment program under this subdivision 
183.6 	must enter into a contract with one or more eligible lenders that complies with the 
183.7 	requirements of this subdivision and contains provisions addressing capital commitments, 
183.8 	loan origination, transfer of loans to the public utility for on-bill repayment, and acceptance 
183.9 	of loans returned due to delinquency or default.
183.10 	(e) A public utility's contract with a lender must require the lender to comply with all 
183.11 	applicable federal and state laws, rules, and regulations related to lending practices and 
183.12 	consumer protection; to conform to reasonable and prudent lending standards; and to provide 
183.13 	businesses that sell, maintain, and install eligible projects the ability to participate in an 
183.14 	on-bill repayment program under this subdivision on a nondiscriminatory basis.
183.15 	(f) A public utility's contract with a lender may provide:
183.16 	(1) for the public utility to purchase loans from the lender with a condition that the lender 
183.17 	must purchase back loans in delinquency or default; or
183.18 	(2) for the lender to retain ownership of loans with the public utility servicing the loans 
183.19 	through on-bill repayment as long as payments are current.
183.20 	The risk of default must remain with the lender. The lender shall not have recourse against 
183.21 	the public utility except in the event of negligence or breach of contract by the utility.
183.22 	(g) If a public utility customer makes a partial payment on a utility bill that includes a 
183.23 	loan installment, the partial payment must be credited first to the amount owed for utility 
183.24 	service, including taxes and fees. A public utility may not suspend or terminate a customer's 
183.25 	utility service for delinquency or default on a loan that is being serviced through the public 
183.26 	utility's on-bill repayment program.
183.27 	(h) An outstanding balance on a loan being repaid under this subdivision is a financial 
183.28 	obligation only of the customer who is signatory to the loan, and not to any subsequent 
183.29 	customer occupying the property associated with the loan. If the public utility purchases 
183.30 	loans from the lender as authorized under paragraph (f), clause (1), the public utility must 
183.31 	return to the lender a loan not repaid when a customer borrower no longer occupies the 
183.32 	property.
184.1 	(i) Costs incurred by a public utility under this subdivision are recoverable as provided 
184.2 	in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs 
184.3 	for billing system modifications necessary to implement and operate an on-bill repayment 
184.4 	program and for ongoing costs to operate the program. Costs in a plan approved by the 
184.5 	commissioner may be counted toward a utility's conservation spending requirements under 
184.6 	subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting 
184.7 	from this section may be counted toward satisfying a utility's energy-savings goals under 
184.8 	subdivision 1c.
184.9 	(j) This subdivision does not require a utility to terminate or modify an existing financing 
184.10 	program and does not prohibit a utility from establishing an on-bill financing program in 
184.11 	which the utility provides the financing capital.
184.12 	(k) A municipal utility or cooperative electric association that implements an on-bill 
184.13 	repayment program shall design the program to address the issues identified in paragraphs 
184.14 	(d) through (h) as determined by the governing board of the utility or association.

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

184.16 	Sec. 21. Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read:
184.17 		Subd. 7.Low-income programs. (a) The commissioner shall ensure that each utility 
184.18 	and association subject to subdivision 1c provides low-income programs. When approving 
184.19 	spending and energy-savings goals for low-income programs, the commissioner shall 
184.20 	consider historic spending and participation levels, energy savings for low-income programs, 
184.21 	and the number of low-income persons residing in the utility's service territory. A municipal 
184.22 	utility that furnishes gas service must spend at least 0.2 percent, and a public utility furnishing 
184.23 	gas service must spend at least 0.4 percent, of its most recent three-year average gross 
184.24 	operating revenue from residential customers in the state on low-income programs. A utility 
184.25 	or association that furnishes electric service must spend at least 0.1 percent of its gross 
184.26 	operating revenue from residential customers in the state on low-income programs. For a 
184.27 	generation and transmission cooperative association, this requirement shall apply to each 
184.28 	association's members' aggregate gross operating revenue from sale of electricity to residential 
184.29 	customers in the state. Beginning in 2010, a utility or association that furnishes electric 
184.30 	service must spend 0.2 percent of its gross operating revenue from residential customers in 
184.31 	the state on low-income programs.
184.32 	(b) To meet the requirements of paragraph (a), a utility or association may contribute 
184.33 	money to the energy and conservation account. An energy conservation improvement plan 
184.34 	must state the amount, if any, of low-income energy conservation improvement funds the 
185.1 	utility or association will contribute to the energy and conservation account. Contributions 
185.2 	must be remitted to the commissioner by February 1 of each year.
185.3 	(c) The commissioner shall establish low-income programs to utilize money contributed 
185.4 	to the energy and conservation account under paragraph (b). In establishing low-income 
185.5 	programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and 
185.6 	community organizations, especially organizations engaged in providing energy and 
185.7 	weatherization assistance to low-income persons. Money contributed to the energy and 
185.8 	conservation account under paragraph (b) must provide programs for low-income persons, 
185.9 	including low-income renters, in the service territory of the utility or association providing 
185.10 	the money. The commissioner shall record and report expenditures and energy savings 
185.11 	achieved as a result of low-income programs funded through the energy and conservation 
185.12 	account in the report required under subdivision 1c, paragraph (g). The commissioner may 
185.13 	contract with a political subdivision, nonprofit or community organization, public utility, 
185.14 	municipality, or cooperative electric association to implement low-income programs funded 
185.15 	through the energy and conservation account.
185.16 	(d) A utility or association may petition the commissioner to modify its required spending 
185.17 	under paragraph (a) if the utility or association and the commissioner have been unable to 
185.18 	expend the amount required under paragraph (a) for three consecutive years.
185.19 	(e) The costs and benefits associated with any approved low-income gas or electric 
185.20 	conservation improvement program that is not cost-effective when considering the costs 
185.21 	and benefits to the utility may, at the discretion of the utility, be excluded from the calculation 
185.22 	of net economic benefits for purposes of calculating the financial incentive to the utility. 
185.23 	The energy and demand savings may, at the discretion of the utility, be applied toward the 
185.24 	calculation of overall portfolio energy and demand savings for purposes of determining 
185.25 	progress toward annual goals and in the financial incentive mechanism.

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

185.27 	Sec. 22. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:
185.28 		Subd. 2.Resource plan filing and approval. (a) A utility shall file a resource plan with 
185.29 	the commission periodically in accordance with rules adopted by the commission. The 
185.30 	commission shall approve, reject, or modify the plan of a public utility, as defined in section 
185.31 	216B.02, subdivision 4, consistent with the public interest. The analysis must consider the 
185.32 	economy, job growth, and job retention.
186.1 	(b) In the resource plan proceedings of all other utilities, the commission's order shall 
186.2 	be advisory and the order's findings and conclusions shall constitute prima facie evidence 
186.3 	which may be rebutted by substantial evidence in all other proceedings. With respect to 
186.4 	utilities other than those defined in section 216B.02, subdivision 4, the commission shall 
186.5 	consider the filing requirements and decisions in any comparable proceedings in another 
186.6 	jurisdiction.
186.7 	(c) As a part of its resource plan filing, a utility shall include the least cost plan for 
186.8 	meeting 50 and 75 percent of all energy needs from both new and refurbished capacity 
186.9 	needs generating facilities through a combination of conservation and renewable energy 
186.10 	resources.

186.11 	EFFECTIVE DATE. This section is effective the day following final enactment. 
186.12 	Paragraphs (a) and (b) apply immediately to all proceedings pending before the commission. 
186.13 	Paragraph (c) applies to resource plans filed with the commission on or after July 1, 2017.

186.14 	Sec. 23. Minnesota Statutes 2016, section 216B.2422, subdivision 3, is amended to read:
186.15 		Subd. 3.Environmental costs. (a) The commission shall, to the extent practicable, 
186.16 	quantify and establish a range of environmental costs associated with each method of 
186.17 	electricity generation. A utility shall use the values established by the commission in 
186.18 	conjunction with other external factors, including socioeconomic costs, when evaluating 
186.19 	and selecting resource options in all proceedings before the commission, including resource 
186.20 	plan and certificate of need proceedings. As part of the resource options and socioeconomic 
186.21 	cost analysis under this section, the utility must calculate the impact of resource options on 
186.22 	customers' bills and utility rates. Any doubt regarding the various resource options before 
186.23 	the commission must be resolved in favor of supporting the economy, job growth, and job 
186.24 	retention.
186.25 	(b) The commission shall establish interim environmental cost values associated with 
186.26 	each method of electricity generation by March 1, 1994. These values expire on the date 
186.27 	the commission establishes environmental cost values under paragraph (a).

186.28 	EFFECTIVE DATE. This section is effective the day following final enactment and 
186.29 	applies immediately to all proceedings pending before the commission.

186.30 	Sec. 24. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:
186.31 		Subd. 4.Preference for renewable energy facility. The commission shall not approve 
186.32 	a new or refurbished nonrenewable energy facility in an integrated resource plan or a 
187.1 	certificate of need, pursuant to section 216B.243, nor shall the commission allow rate 
187.2 	recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the 
187.3 	utility has demonstrated that a renewable energy facility is not in the public interest. When 
187.4 	making the public interest determination, the commission must include consider:
187.5 	(1) whether the resource plan helps the utility achieve the greenhouse gas reduction 
187.6 	goals under section 216H.02, the renewable energy standard under section 216B.1691, or 
187.7 	the solar energy standard under section 216B.1691, subdivision 2f.;
187.8 	(2) impacts on local and regional grid reliability;
187.9 	(3) utility and ratepayer impacts resulting from the intermittent nature of renewable 
187.10 	energy facilities, including but not limited to the costs of purchasing wholesale electricity 
187.11 	in the market and the costs of providing ancillary services; and
187.12 	(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, 
187.13 	changes in transmission costs, portfolio diversification, and environmental compliance 
187.14 	costs.

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

187.16 	Sec. 25. Minnesota Statutes 2016, section 216B.2424, is amended by adding a subdivision 
187.17 	to read:
187.18 		Subd. 9.Adjustment of biomass fuel requirement. (a) Notwithstanding any provision 
187.19 	in this section, the public utility subject to this section may, with respect to a facility approved 
187.20 	under this section, file a petition with the commission for approval of:
187.21 	(1) a new or amended power purchase agreement;
187.22 	(2) the early termination of a power purchase agreement; or
187.23 	(3) the purchase and closure of the facility.
187.24 	(b) The commission may approve a new or amended power purchase agreement under 
187.25 	this subdivision, notwithstanding the fuel requirements of this section, if the commission 
187.26 	determines that:
187.27 	(1) all parties to the original power purchase agreement, or their successors or assigns, 
187.28 	as applicable, agree to the terms and conditions of the new or amended power purchase 
187.29 	agreement; and
187.30 	(2) the new or amended power purchase agreement is in the best interest of the customers 
187.31 	of the public utility subject to this section, taking into consideration any savings realized 
188.1 	by customers in the new or amended power purchase agreement and any costs imposed on 
188.2 	customers under paragraph (e). A new or amended power purchase agreement approved 
188.3 	under this paragraph may be for any term agreed to by the parties and may govern the 
188.4 	purchase of any amount of energy.
188.5 	(c) The commission may approve the early termination of a power purchase agreement 
188.6 	or the purchase and closure of a facility under this subdivision if it determines that:
188.7 	(1) all parties to the power purchase agreement, or their successors or assigns, as 
188.8 	applicable, agree to the early termination of the power purchase agreement or the purchase 
188.9 	and closure of the facility; and
188.10 	(2) the early termination of the power purchase agreement or the purchase and closure 
188.11 	of the facility is in the best interest of the customers of the public utility subject to this 
188.12 	section, taking into consideration any savings realized by customers as a result of the early 
188.13 	termination of the power purchase agreement or the purchase and closure of the facility and 
188.14 	any costs imposed on the customers under paragraph (e).
188.15 	(d) The commission's approval of a new or amended power purchase agreement under 
188.16 	paragraph (b) or of the termination of a power purchase agreement or the purchase and 
188.17 	closure of a facility under paragraph (c), shall not require the public utility subject to this 
188.18 	section to purchase replacement amounts of biomass energy to fulfill the requirements of 
188.19 	this section.
188.20 	(e) A utility may petition the commission to approve a rate schedule that provides for 
188.21 	the automatic adjustment of charges to recover investments, expenses and costs, and earnings 
188.22 	on the investments associated with a new or amended power purchase agreement, the early 
188.23 	termination of a power purchase agreement, or the purchase and closure of a facility, 
188.24 	including, but not limited to, reasonable financial accommodations to the county, city, and 
188.25 	school district in which an affected facility is located. The commission may approve the 
188.26 	rate schedule upon a showing that the recovery of investments, expenses and costs, and 
188.27 	earnings on the investments is less than the costs that would have been recovered from 
188.28 	customers had the utility continued to purchase energy under the power purchase agreement 
188.29 	in effect before any option available under this section is approved by the commission. If 
188.30 	approved by the commission, cost recovery under this paragraph may include all cost 
188.31 	recovery allowed for renewable facilities under section 216B.1645, subdivisions 2 and 2a.
188.32 	(f) For the purposes of this subdivision, "facility" means a biomass facility previously 
188.33 	approved by the commission to satisfy a portion of the biomass mandate in this section.

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

189.1 	Sec. 26. Minnesota Statutes 2016, section 216B.243, subdivision 8, is amended to read:
189.2 		Subd. 8.Exemptions. (a) This section does not apply to:
189.3 	(1) cogeneration or small power production facilities as defined in the Federal Power 
189.4 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
189.5 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
189.6 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
189.7 	any case where the commission has determined after being advised by the attorney general 
189.8 	that its application has been preempted by federal law;
189.9 	(2) a high-voltage transmission line proposed primarily to distribute electricity to serve 
189.10 	the demand of a single customer at a single location, unless the applicant opts to request 
189.11 	that the commission determine need under this section or section 216B.2425;
189.12 	(3) the upgrade to a higher voltage of an existing transmission line that serves the demand 
189.13 	of a single customer that primarily uses existing rights-of-way, unless the applicant opts to 
189.14 	request that the commission determine need under this section or section 216B.2425;
189.15 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
189.16 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
189.17 	(5) conversion of the fuel source of an existing electric generating plant to using natural 
189.18 	gas;
189.19 	(6) the modification of an existing electric generating plant to increase efficiency, as 
189.20 	long as the capacity of the plant is not increased more than ten percent or more than 100 
189.21 	megawatts, whichever is greater;
189.22 	(7) a wind energy conversion system or solar electric generation facility if the system 
189.23 	or facility is owned and operated by an independent power producer and the electric output 
189.24 	of the system or facility is not sold to an entity that provides retail service in Minnesota or 
189.25 	wholesale electric service to another entity in Minnesota other than an entity that is a federally 
189.26 	recognized regional transmission organization or independent system operator; or
189.27 	(8) a large wind energy conversion system, as defined in section 216F.01, subdivision 
189.28 	2, or a solar energy generating large energy facility, as defined in section 216B.2421, 
189.29 	subdivision 2 216E.01, subdivision 9a, engaging in a repowering project that:
189.30 	(i) will not result in the facility exceeding the nameplate capacity under its most recent 
189.31 	interconnection agreement; or
190.1 	(ii) will result in the facility exceeding the nameplate capacity under its most recent 
190.2 	interconnection agreement, provided that the Midcontinent Independent System Operator 
190.3 	has provided a signed generator interconnection agreement that reflects the expected net 
190.4 	power increase.;
190.5 	(9) a large wind energy conversion system, as defined in section 216F.01, subdivision 
190.6 	2;
190.7 	(10) a solar energy generating system, as defined in section 216E.01, subdivision 9a, 
190.8 	with a capacity of five megawatts or more;
190.9 	(11) a pipeline transporting crude oil or refined petroleum products;
190.10 	(12) a pipeline transporting natural gas or propane; or
190.11 	(13) a replacement pipeline.
190.12 	(b) For the purpose of this subdivision, the following terms have the meanings given:
190.13 	(1) "repowering project" means:
190.14 	(1) (i) modifying a large wind energy conversion system or a solar energy generating 
190.15 	large energy facility to increase its efficiency without increasing its nameplate capacity;
190.16 	(2) (ii) replacing turbines in a large wind energy conversion system without increasing 
190.17 	the nameplate capacity of the system; or
190.18 	(3) (iii) increasing the nameplate capacity of a large wind energy conversion system; 
190.19 	and
190.20 	(2) "replacement pipeline" means a pipeline constructed in a new or existing right-of-way 
190.21 	that replaces service provided by an existing pipeline that will be permanently removed 
190.22 	from service within 180 days of the date of initial service of the replacement pipeline.

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

190.24 	Sec. 27. Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read:
190.25 		Subd. 2.Energy policy goals. It is the energy policy of the state of Minnesota that:
190.26 	(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of 
190.27 	electricity and natural gas be achieved through cost-effective energy efficiency;
190.28 	(2) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the 
190.29 	year 2015, through increased reliance on energy efficiency and renewable energy alternatives; 
190.30 	and
191.1 	(3) 25 percent of the total energy used in the state be derived from renewable energy 
191.2 	resources by the year 2025.; and
191.3 	(4) retail electricity rates for each customer class be at least five percent below the 
191.4 	national average.

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

191.6 	Sec. 28. Minnesota Statutes 2016, section 216C.41, subdivision 2, is amended to read:
191.7 		Subd. 2.Incentive payment; appropriation. (a) Incentive payments must be made 
191.8 	according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner 
191.9 	or operator of a qualified hydropower facility or qualified wind energy conversion facility 
191.10 	for electric energy generated and sold by the facility, (3) a publicly owned hydropower 
191.11 	facility for electric energy that is generated by the facility and used by the owner of the 
191.12 	facility outside the facility, or (4) the owner of a publicly owned dam that is in need of 
191.13 	substantial repair, for electric energy that is generated by a hydropower facility at the dam 
191.14 	and the annual incentive payments will be used to fund the structural repairs and replacement 
191.15 	of structural components of the dam, or to retire debt incurred to fund those repairs.
191.16 	(b) Payment may only be made upon receipt by the commissioner of commerce of an 
191.17 	incentive payment application that establishes that the applicant is eligible to receive an 
191.18 	incentive payment and that satisfies other requirements the commissioner deems necessary. 
191.19 	The application must be in a form and submitted at a time the commissioner establishes.
191.20 	(c) There is annually appropriated from the renewable development C-LEAF account 
191.21 	established under section 116C.779 to the commissioner of commerce sums sufficient to 
191.22 	make the payments required under this section, in addition to the amounts funded by the 
191.23 	renewable development C-LEAF account as specified in subdivision 5a.

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

191.25 	Sec. 29. Minnesota Statutes 2016, section 216C.41, subdivision 5a, is amended to read:
191.26 		Subd. 5a.Renewable development account Payment authorization. The Department 
191.27 	of Commerce shall authorize payment of the renewable energy production incentive to wind 
191.28 	energy conversion systems that are eligible under this section or Laws 2005, chapter 40, to 
191.29 	on-farm biogas recovery facilities, and to hydroelectric facilities. Payment of the incentive 
191.30 	shall be made from the renewable energy development C-LEAF account as provided  under 
191.31 	section 116C.779, subdivision 2.

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

192.1 	Sec. 30. [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" 
192.2 	SOLAR ENERGY PRODUCTION INCENTIVES.
192.3 		Subdivision 1.General provisions. Payment of a "Made in Minnesota" solar energy 
192.4 	production incentive to an owner whose application was approved by the commissioner of 
192.5 	commerce under section 216C.415, by May 1, 2017, must be administered under the 
192.6 	provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 216C.414, subdivisions 
192.7 	1 to 3 and 5; and 216C.415. No incentive payments may be made under this section to an 
192.8 	owner whose application was approved by the commissioner after May 1, 2017.
192.9 		Subd. 2.Appropriation. (a) Unspent money remaining in the account established under 
192.10 	Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the 
192.11 	C-LEAF account in the special revenue fund established under Minnesota Statutes, section 
192.12 	116C.779, subdivision 1.
192.13 	(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), there is annually 
192.14 	appropriated from the C-LEAF account in the special revenue fund established in Minnesota 
192.15 	Statutes, section 116C.779, to the commissioner of commerce money sufficient to make 
192.16 	the incentive payments required under Minnesota Statutes 2016, section 216C.415. Any 
192.17 	funds appropriated under this paragraph that are unexpended at the end of a fiscal year 
192.18 	cancel to the C-LEAF account.
192.19 	(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of 
192.20 	this appropriation may be used for administrative costs.
192.21 		Subd. 3.Eligibility window; payment duration. (a) Payments may be made under this 
192.22 	subdivision only for solar photovoltaic module installations that meet the requirements of 
192.23 	subdivision 1 and that first begin generating electricity between January 1, 2014, and October 
192.24 	31, 2018.
192.25 	(b) The payment eligibility window of the incentive begins and runs consecutively from 
192.26 	the date the solar photovoltaic modules first begins generating electricity.
192.27 	(c) An owner of solar photovoltaic modules may receive payments under this section 
192.28 	for a particular module for a period of ten years, provided that sufficient funds are available 
192.29 	in the account.
192.30 	(d) No payment may be made under this section for electricity generated after October 
192.31 	31, 2028.

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

193.1 	Sec. 31. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision 
193.2 	to read:
193.3 		Subd. 7a.Multifamily residential dwelling. "Multifamily residential dwelling" means 
193.4 	a residential dwelling containing five or more units intended for use as a residence by tenants 
193.5 	or lessees of the owner.

193.6 	Sec. 32. Minnesota Statutes 2016, section 216E.03, subdivision 3, is amended to read:
193.7 		Subd. 3.Application. Any person seeking to construct a large electric power generating 
193.8 	plant or a high-voltage transmission line must apply to the commission for a site or route 
193.9 	permit. The application shall contain such information as the commission may require. The 
193.10 	applicant shallmay propose at least two sites for a large electric power generating plant and 
193.11 	two routes for a high-voltage transmission line. Neither of the two proposed routes may be 
193.12 	designated as a preferred route and all proposed routes must be numbered and designated 
193.13 	as alternatives. The commission shall determine whether an application is complete and 
193.14 	advise the applicant of any deficiencies within ten days of receipt. An application is not 
193.15 	incomplete if information not in the application can be obtained from the applicant during 
193.16 	the first phase of the process and that information is not essential for notice and initial public 
193.17 	meetings.

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

193.19 	Sec. 33. Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:
193.20 		Subd. 9.Timing. The commission shall make a final decision on an application within 
193.21 	60 days after receipt of the report of the administrative law judge. A final decision on the 
193.22 	request for a site permit or route permit shall be made within one year after the commission's 
193.23 	determination that an application is complete. The commission may extend this time limit 
193.24 	for up to three months30 days for just cause or upon agreement of the applicant.

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

193.26 	Sec. 34. Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:
193.27 		Subd. 7.Timing. The commission shall make a final decision on an application within 
193.28 	60 days after completion of the public hearing. A final decision on the request for a site 
193.29 	permit or route permit under this section shall be made within six months after the 
193.30 	commission's determination that an application is complete. The commission may extend 
193.31 	this time limit for up to three months30 days for just cause or upon agreement of the 
193.32 	applicant.

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

194.2 	Sec. 35. Minnesota Statutes 2016, section 216F.01, subdivision 2, is amended to read:
194.3 		Subd. 2.Large wind energy conversion system or LWECS. "Large wind energy 
194.4 	conversion system" or "LWECS" means any combination of WECS with a combined 
194.5 	nameplate capacity of 5,000 kilowatts or more and transmission lines directly associated 
194.6 	with the LWECS that are necessary to interconnect the LWECS to the transmission system.

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

194.8 	Sec. 36. Minnesota Statutes 2016, section 216F.011, is amended to read:
194.9 	216F.011 SIZE DETERMINATION.
194.10 	(a) The total size of a combination of wind energy conversion systems for the purpose 
194.11 	of determining what jurisdiction has siting authority under this chapter must be determined 
194.12 	according to this section. The nameplate capacity of one wind energy conversion system 
194.13 	must be combined with the nameplate capacity of any other wind energy conversion system 
194.14 	that:
194.15 	(1) is located within five miles of the wind energy conversion system;
194.16 	(2) is constructed within the same 12-month period as the wind energy conversion 
194.17 	system; and
194.18 	(3) exhibits characteristics of being a single development, including, but not limited to, 
194.19 	ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing 
194.20 	arrangements, and common debt or equity financing.
194.21 	(b) The commissioner shall provide forms and assistance for project developers to make 
194.22 	a request for a size determination. Upon written request of a project developer, the 
194.23 	commissioner of commerce shall provide a written size determination within 30 days of 
194.24 	receipt of the request and of any information needed to complete the size determination that 
194.25 	has been requested by the commissioner. In the case of a dispute, the chair of the Public 
194.26 	Utilities Commission shall make the final size determination.
194.27 	(c) An application to a county for a permit under this chapter for a wind energy conversion 
194.28 	system is not complete without a size determination made under this section.

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

195.1 	Sec. 37. Minnesota Statutes 2016, section 216F.04, is amended to read:
195.2 	216F.04 SITE PERMIT.
195.3 	(a) No person may construct an LWECS without a site permit issued by the Public 
195.4 	Utilities Commission.
195.5 	(b) Any person seeking to construct an LWECS shall submit an application to the 
195.6 	commission for a site permit in accordance with this chapter and any rules adopted by the 
195.7 	commission. The permitted site need not be contiguous land.
195.8 	(c) The commission shall make a final decision on an application for a site permit for 
195.9 	an LWECS within 180 days after acceptance of a complete application by the commission. 
195.10 	The commission may extend this deadline for cause if the proposer agrees to an extension 
195.11 	in writing.
195.12 	(d) The commission may place conditions in a permit and may deny, modify, suspend, 
195.13 	or revoke a permit.

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

195.15 	Sec. 38. [216G.025] ALTERNATIVE PIPELINE ROUTES; RESTRICTION.
195.16 	Notwithstanding section 116D.04, subdivisions 2a and 6, and any other law or rule, no 
195.17 	environmental analysis of alternative routes for a pipeline seeking a routing permit may 
195.18 	include an alternative route that does not connect the pipeline's termini as proposed by the 
195.19 	applicant.

195.20 	Sec. 39. Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read:
195.21 		Subd. 3.Long-term increased emissions from power plants prohibited. Unless 
195.22 	preempted by federal law, until a comprehensive and enforceable state law or rule pertaining 
195.23 	to greenhouse gases that directly limits and substantially reduces, over time, statewide power 
195.24 	sector carbon dioxide emissions is enacted and in effect, and except as allowed in 
195.25 	subdivisions 4 to 7, on and after August 1, 2009, no person shall:
195.26 	(1) construct within the state a new large energy facility that would contribute to statewide 
195.27 	power sector carbon dioxide emissions;.
195.28 	(2) import or commit to import from outside the state power from a new large energy 
195.29 	facility that would contribute to statewide power sector carbon dioxide emissions; or
195.30 	(3) enter into a new long-term power purchase agreement that would increase statewide 
195.31 	power sector carbon dioxide emissions. For purposes of this section, a long-term power 
196.1 	purchase agreement means an agreement to purchase 50 megawatts of capacity or more for 
196.2 	a term exceeding five years.

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

196.4 	Sec. 40. Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read:
196.5 		Subd. 4.Exception for facilities that offset emissions. (a) The prohibitions in prohibition 
196.6 	under subdivision 3 do does not apply if the project proponent demonstrates to the Public 
196.7 	Utilities Commission's satisfaction that it will offset the new contribution to statewide power 
196.8 	sector carbon dioxide emissions with a carbon dioxide reduction project identified in 
196.9 	paragraph (b) and in compliance with paragraph (c).
196.10 	(b) A project proponent may offset in an amount equal to or greater than the proposed 
196.11 	new contribution to statewide power sector carbon dioxide emissions in either, or a 
196.12 	combination of both, of the following ways:
196.13 	(1) by reducing an existing facility's contribution to statewide power sector carbon 
196.14 	dioxide emissions; or
196.15 	(2) by purchasing carbon dioxide allowances from a state or group of states that has a 
196.16 	carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
196.17 	(c) The Public Utilities Commission shall not find that a proposed carbon dioxide 
196.18 	reduction project identified in paragraph (b) acceptably offsets a new contribution to statewide 
196.19 	power sector carbon dioxide emissions unless the proposed offsets are permanent, 
196.20 	quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section 
196.21 	does not exempt emissions that have been offset under this subdivision and emissions 
196.22 	exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state.

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

196.24 	Sec. 41. Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read:
196.25 		Subd. 7.Other exemptions. The prohibitions in prohibition under subdivision 3 do does
196.26 	not apply to:
196.27 	(1) a new large energy facility under consideration by the Public Utilities Commission 
196.28 	pursuant to proposals or applications filed with the Public Utilities Commission before April 
196.29 	1, 2007, or to any power purchase agreement related to a facility described in this clause. 
196.30 	The exclusion of pending proposals and applications from the prohibitions in subdivision 
197.1 	3 does not limit the applicability of any other law and is not an expression of legislative 
197.2 	intent regarding whether any pending proposal or application should be approved or denied;
197.3 	(2) a contract not subject to commission approval that was entered into prior to April 1, 
197.4 	2007, to purchase power from a new large energy facility that was approved by a comparable 
197.5 	authority in another state prior to that date, for which municipal or public power district 
197.6 	bonds have been issued, and on which construction has begun;
197.7 	(3) a new large energy facility or a power purchase agreement between a Minnesota 
197.8 	utility and a new large energy facility located outside within Minnesota that the Public 
197.9 	Utilities Commission has determined is essential to ensure the long-term reliability of 
197.10 	Minnesota's electric system, to allow electric service for increased industrial demand, or to 
197.11 	avoid placing a substantial financial burden on Minnesota ratepayers. An order of the 
197.12 	commission granting an exemption under this clause is stayed until the June 1 following 
197.13 	the next regular or annual session of the legislature that begins after the date of the 
197.14 	commission's final order; or
197.15 	(4) a new large energy facility with a combined electric generating capacity of less than 
197.16 	100 megawatts, which did not require a Minnesota certificate of need, which received an 
197.17 	air pollution control permit to construct from an adjoining state before January 1, 2008, and 
197.18 	on which construction began before July 1, 2008, or to any power purchase agreement 
197.19 	related to a facility described in this clause.

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

197.21 	Sec. 42. RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK 
197.22 	FORCE.
 197.23 		Subdivision 1.Establishment. The Residential PACE Consumer Protection Legislation 
197.24 	Task Force shall develop recommendations for consumer protection legislation for any 
197.25 	energy improvements financing program implemented under Minnesota Statutes, sections 
197.26 	216C.435 to 216C.436, for single-family residential dwellings. For purposes of this section, 
197.27 	"residential PACE" or "PACE" means energy improvement financing programs for 
197.28 	single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435 
197.29 	to 216C.436.
197.30 		Subd. 2.Task force. (a) The task force consists of 16 members as follows:
197.31 	(1) one member appointed by the Minnesota Association of Realtors;
197.32 	(2) one member appointed by the Center for Energy and Environment;
198.1 	(3) one member appointed by the Minnesota Bankers Association;
198.2 	(4) one member appointed by the Legal Services Advocacy Project;
198.3 	(5) one member appointed by the Minnesota Credit Union Network;
198.4 	(6) one member appointed by the Minnesota Solar Energy Industry Association;
198.5 	(7) one member appointed by the St. Paul Port Authority;
198.6 	(8) one member appointed by the League of Minnesota Cities;
198.7 	(9) one member appointed by the Association of Minnesota Counties;
198.8 	(10) one member appointed by AARP Minnesota;
198.9 	(11) one member appointed by Fresh Energy;
198.10 	(12) one member appointed by the Citizens Utility Board of Minnesota;
198.11 	(13) one member appointed by Clean Energy Economy Minnesota;
198.12 	(14) one member appointed by the Minnesota Land Title Association;
198.13 	(15) one member appointed by an organization with experience implementing residential 
198.14 	PACE programs in other states; and
198.15 	(16) the commissioner of commerce or a designee.
198.16 	(b) Any public member can designate a substitute from the same organization to replace 
198.17 	that member at a meeting of the task force.
198.18 		Subd. 3.Duties. The task force must develop recommendations to:
198.19 	(1) address concerns regarding the possible constraints on free alienation of residential 
198.20 	property caused by existence and amount of the PACE liens;
198.21 	(2) reduce and minimize any point-of-sale confusion in transactions involving 
198.22 	PACE-encumbered homes;
198.23 	(3) ensure conspicuous and meaningful disclosure of, among other things:
198.24 	(i) all costs and fees of a residential PACE loan; and
198.25 	(ii) the risks, such as foreclosure and higher costs, that may be associated with residential 
198.26 	PACE loans relative to other financing mechanisms;
198.27 	(4) ensure that the ability to repay standard uses commonly accepted underwriting 
198.28 	principles;
199.1 	(5) ensure that consumer provisions required of and protections that apply to conventional 
199.2 	loans and other financing options, including but not limited to the Truth in Lending Act and 
199.3 	the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
199.4 	(6) address any unique protections necessary for elderly, low-income homeowners and 
199.5 	other financially vulnerable homeowners;
199.6 	(7) establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy 
199.7 	improvements; and
199.8 	(8) address any other issues the task force identifies that are necessary to protect 
199.9 	consumers.
199.10 		Subd. 4.Administrative support. The commissioner of commerce shall provide 
199.11 	administrative support and meeting space for the task force.
199.12 		Subd. 5.Compensation. Members serve without compensation and shall not be 
199.13 	reimbursed for expenses.
199.14 		Subd. 6.Chair. The commissioner of commerce or the commissioner's designee shall 
199.15 	serve as chair.
199.16 		Subd. 7.Meetings. The task force shall meet regularly, at the call of the chair. Meetings 
199.17 	of the task force are subject to Minnesota Statutes, chapter 13D.
199.18 		Subd. 8.Appointments; first meeting. Appointments must be made by June 1, 2017. 
199.19 	The commissioner of commerce must convene the first meeting by July 15, 2017.
199.20 		Subd. 9.Report to legislature. By January 15, 2018, the commissioner shall submit a 
199.21 	report detailing the task force's findings and recommendations to the chairs and ranking 
199.22 	minority members of the senate and house of representatives committees with jurisdiction 
199.23 	over energy and consumer protection policy and finance. The report must include any draft 
199.24 	legislation necessary to implement the recommendations of the task force.
199.25 		Subd. 10.Suspension of residential PACE. Until legislation is enacted establishing 
199.26 	consumer protections that address, but are not limited to, the concerns identified in 
199.27 	subdivision 3, no programs for the financing of energy improvements on a single-family 
199.28 	residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436, 
199.29 	may be operated after the effective date of this section.
199.30 		Subd. 11.Expiration. The task force expires January 15, 2018, or after submitting the 
199.31 	report required in this section, whichever is earlier.

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

200.1 	Sec. 43. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
200.2 	THERMAL REBATES.
 200.3 	(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner 
200.4 	of a solar thermal system whose application was approved by the commissioner of commerce 
200.5 	after the effective date of this act.
200.6 	(b) Unspent money remaining in the account established under Minnesota Statutes 2014, 
200.7 	section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF account established 
200.8 	under Minnesota Statutes 2016, section 116C.779, subdivision 1.

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

200.10 	Sec. 44. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF 
200.11 	UNEXPENDED GRANT FUNDS.
 200.12 	(a) No later than 30 days after the effective date of this section, the utility subject to 
200.13 	Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person 
200.14 	who received a grant funded from the renewable development account previously established 
200.15 	under that subdivision:
200.16 	(1) after January 1, 2012; and
200.17 	(2) before January 1, 2012, if the funded project remains incomplete as of the effective 
200.18 	date of this section.
200.19 	The notice must contain the provisions of this section and instructions directing grant 
200.20 	recipients how unexpended funds can be transferred to the clean energy advancement fund 
200.21 	account.
200.22 	(b) A recipient of a grant from the renewable development account previously established 
200.23 	under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after 
200.24 	receiving the notice required under paragraph (a), transfer any grant funds that remain 
200.25 	unexpended as of the effective date of this section to the clean energy advancement fund 
200.26 	account if, by that effective date, all of the following conditions are met:
200.27 	(1) the grant was awarded more than five years before the effective date of this section;
200.28 	(2) the grant recipient has failed to obtain control of the site on which the project is to 
200.29 	be constructed;
200.30 	(3) the grant recipient has failed to secure all necessary permits or approvals from any 
200.31 	unit of government with respect to the project; and
201.1 	(4) construction of the project has not begun.
201.2 	(c) A recipient of a grant from the renewable development account previously established 
201.3 	under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds 
201.4 	that remain unexpended five years after the grant funds are received by the grant recipient 
201.5 	if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant 
201.6 	recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary 
201.7 	of the receipt of the grant funds.
201.8 	(d) A person who transfers funds to the clean energy advancement fund account under 
201.9 	this section is eligible to apply for funding from the clean energy advancement fund account.

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

201.11 	Sec. 45. REPEALER.
 201.12 	(a) Laws 2013, chapter 85, article 6, section 11, is repealed.
201.13 	(b) Minnesota Statutes 2016, sections 216B.8109; 216B.811; 216B.812; 216B.813; and 
201.14 	216B.815, are repealed.
201.15 	(c) Minnesota Statutes 2016, sections 3.8852; 116C.779, subdivision 3; and 216C.29,
201.16 	are repealed.
201.17 	(d) Minnesota Statutes 2016, sections 174.187; 216C.411; 216C.412; 216C.413; 
201.18 	216C.414; 216C.415; and 216C.416, are repealed.

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

201.20 	ARTICLE 11
201.21 	HOUSING POLICY

201.22 	Section 1. Minnesota Statutes 2016, section 299F.01, is amended by adding a subdivision 
201.23 	to read:
201.24 		Subd. 4.Mandatory fire sprinklers prohibited. (a) The State Building Code, the State 
201.25 	Fire Code, or a political subdivision of the state by code or ordinance, must not require the 
201.26 	installation of fire sprinklers, any fire sprinkler system components, or automatic 
201.27 	fire-extinguishing equipment or devices in any new or existing single-family detached 
201.28 	dwelling unit, two-family dwelling unit, townhome, or accessory structure such as a garage, 
201.29 	covered patio, deck, porch, storage shed, or similar structure.
201.30 	(b) This subdivision does not affect or limit a requirement for smoke or fire detectors, 
201.31 	alarms, or their components.

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

202.2 	Sec. 2. Minnesota Statutes 2016, section 327C.01, is amended by adding a subdivision to 
202.3 	read:
202.4 		Subd. 13.Class I manufactured home park. A "class I manufactured home park" 
202.5 	means a park that complies with the provisions of section 327C.16.

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

202.7 	Sec. 3. [327C.16] CLASS I MANUFACTURED HOME PARK.
202.8 		Subdivision 1.Qualifications. (a) To qualify as a class I manufactured home park, as 
202.9 	defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as an employee 
202.10 	of the manufactured home park, must satisfy 12 hours of qualifying education courses every 
202.11 	three years, as prescribed in this subdivision. Park owners or on-site attendants may begin 
202.12 	accumulating qualifying hours to qualify as a class I manufactured home park beginning in 
202.13 	2017.
202.14 	(b) The qualifying education courses required for classification under this subdivision 
202.15 	must be continuing education courses approved by the Department of Labor and Industry 
202.16 	or the Department of Commerce for:
202.17 	(1) continuing education in real estate; or
202.18 	(2) continuing education for residential contractors and manufactured home installers.
202.19 	(c) The qualifying education courses must include:
202.20 	(1) two hours on fair housing, approved for real estate licensure or residential contractor 
202.21 	licensure;
202.22 	(2) one hour on the Americans with Disabilities Act, approved for real estate licensure 
202.23 	or residential contractor licensure;
202.24 	(3) four hours on legal compliance related to any of the following: landlord/tenant, 
202.25 	licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B, 
202.26 	and Minnesota Rules, chapter 1350 or 4630;
202.27 	(4) three hours of general education approved for real estate, residential contractors, or 
202.28 	manufactured home installers; and
202.29 	(5) two hours of HUD-specific manufactured home installer courses as required under 
202.30 	section 327B.041.
203.1 	(d) If the qualifying owner or employee attendant is no longer the person meeting the 
203.2 	requirements under this subdivision, but did qualify during the current assessment year, 
203.3 	then the manufactured home park shall still qualify for the class rate provided for class 4c 
203.4 	property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item 
203.5 	(iii).
203.6 		Subd. 2.Proof of compliance. (a) A park owner that has met the requirements of 
203.7 	subdivision 1 shall provide an affidavit to the park owner's county assessor certifying that 
203.8 	the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and 
203.9 	that the park meets the definition of a class I manufactured home park as defined in this 
203.10 	section, and is entitled to the property tax classification rate for class I manufactured home 
203.11 	parks in section 273.13, subdivision 25. The park owner shall retain the original course 
203.12 	completion certificates issued by the course sponsor under this section for three years and, 
203.13 	upon written request for verification, provide these to the county assessor within 30 days.
203.14 	(b) A park owner must provide the county assessor written notice of any change in 
203.15 	compliance status of the manufactured home park no later than December 15 of the 
203.16 	assessment year.

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

203.18 	Sec. 4. Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read:
203.19 		Subd. 4.Interim ordinance. (a) If a municipality is conducting studies or has authorized 
203.20 	a study to be conducted or has held or has scheduled a hearing for the purpose of considering 
203.21 	adoption or amendment of a comprehensive plan or official controls as defined in section 
203.22 	462.352, subdivision 15, or if new territory for which plans or controls have not been adopted 
203.23 	is annexed to a municipality, the governing body of the municipality may adopt an interim 
203.24 	ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning 
203.25 	process and the health, safety and welfare of its citizens. The interim ordinance may regulate, 
203.26 	restrict, or prohibit any use, development, or subdivision within the jurisdiction or a portion 
203.27 	thereof for a period not to exceed one year from the date it is effective.
203.28 	(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities 
203.29 	relating to livestock production, a public hearing must be held following a ten-day notice 
203.30 	given by publication in a newspaper of general circulation in the municipality before the 
203.31 	interim ordinance takes effect.
204.1 	(c)(1) A statutory or home rule charter city may adopt an interim ordinance that regulates, 
204.2 	restricts, or prohibits a housing proposal only if the ordinance is approved by at least 
204.3 	two-thirds of city council members present.
204.4 	(2) Before adopting the interim ordinance, the city council must hold a public hearing 
204.5 	after providing written notice to any person who has submitted a housing proposal, has a 
204.6 	pending housing proposal, or has provided a written request to be notified of interim 
204.7 	ordinances related to housing proposals. The written notice must be provided at least three 
204.8 	business days before the public hearing. Notice also must be posted on the city's official 
204.9 	Web site, if the city has an official Web site.
204.10 	(3) The date of the public hearing shall be the earlier of the next regularly scheduled 
204.11 	city council meeting after the notice period or within ten days of the notice.
204.12 	(4) The activities proposed to be restricted by the proposed interim ordinance may not 
204.13 	be undertaken before the public hearing.
204.14 	(5) For the purposes of this paragraph, "housing proposal" means a written request for 
204.15 	city approval of a project intended primarily to provide residential dwellings, either single 
204.16 	family or multi-family, and involves the subdivision or development of land or the 
204.17 	demolition, construction, reconstruction, alteration, repair, or occupancy of residential 
204.18 	dwellings.
204.19 	(c) (d) The period of an interim ordinance applicable to an area that is affected by a city's 
204.20 	master plan for a municipal airport may be extended for such additional periods as the 
204.21 	municipality may deem appropriate, not exceeding a total additional period of 18 months. 
204.22 	In all other cases, no interim ordinance may halt, delay, or impede a subdivision that has 
204.23 	been given preliminary approval, nor may any interim ordinance extend the time deadline 
204.24 	for agency action set forth in section 15.99 with respect to any application filed prior to the 
204.25 	effective date of the interim ordinance. The governing body of the municipality may extend 
204.26 	the interim ordinance after a public hearing and written findings have been adopted based 
204.27 	upon one or more of the conditions in clause (1), (2), or (3). The public hearing must be 
204.28 	held at least 15 days but not more than 30 days before the expiration of the interim ordinance, 
204.29 	and notice of the hearing must be published at least ten days before the hearing. The interim 
204.30 	ordinance may be extended for the following conditions and durations, but, except as 
204.31 	provided in clause (3), an interim ordinance may not be extended more than an additional 
204.32 	18 months:
204.33 	(1) up to an additional 120 days following the receipt of the final approval or review by 
204.34 	a federal, state, or metropolitan agency when the approval is required by law and the review 
205.1 	or approval has not been completed and received by the municipality at least 30 days before 
205.2 	the expiration of the interim ordinance;
205.3 	(2) up to an additional 120 days following the completion of any other process required 
205.4 	by a state statute, federal law, or court order, when the process is not completed at least 30 
205.5 	days before the expiration of the interim ordinance; or
205.6 	(3) up to an additional one year if the municipality has not adopted a comprehensive 
205.7 	plan under this section at the time the interim ordinance is enacted.

205.8 	EFFECTIVE DATE. This section is effective for interim ordinances proposed on or 
205.9 	after August 1, 2017.

205.10 	Sec. 5. Minnesota Statutes 2016, section 462A.2035, is amended to read:
205.11 	462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM.
205.12 		Subdivision 1.Establishment. The agency shall establish a manufactured home park 
205.13 	redevelopment program for the purpose of making manufactured home park redevelopment 
205.14 	grants or loans to cities, counties, or community action programs, nonprofit organizations, 
205.15 	and cooperatives created under chapter 308A or 308B.
205.16 		Subd. 1a.Individual assistance grants. Cities, counties, and community action programs
205.17 	Eligible recipients may use individual assistance grants and loans under this program to:
205.18 	(1) provide current residents of manufactured home parks with buy-out assistance not 
205.19 	to exceed $4,000 per home with preference given to older manufactured homes; and
205.20 	(2) provide down-payment assistance for the purchase of new and preowned manufactured 
205.21 	homes that comply with the current version of the State Building Code in effect at the time 
205.22 	of the sale, not to exceed $10,000 per home; and.
205.23 	(3) make improvements in manufactured home parks as requested by the grant recipient.
205.24 		Subd. 1b.Park infrastructure grants. Eligible recipients may use park infrastructure 
205.25 	grants under this program for:
205.26 	(1) improvements in manufactured home parks; and
205.27 	(2) infrastructure, including storm shelters and community facilities.
205.28 		Subd. 2.Eligibility requirements. For individual assistance grants under subdivision 
205.29 	1a, households assisted under this section must have an annual household income at or 
205.30 	below 80 percent of the area median household income. Cities, counties, or community 
205.31 	action programs receiving funds under the program must give preference to households at 
206.1 	or below 50 percent of the area median household income. Participation in the program is 
206.2 	voluntary and no park resident shall be required to participate.
206.3 		Subd. 3.Statewide program. The agency shall attempt to make grants and loans in 
206.4 	approximately equal amounts to applicants outside and within the metropolitan area. Grants 
206.5 	and loans under this section shall be provided in a manner consistent with the agency's 
206.6 	policies and purposes in section 462A.02.
206.7 		Subd. 4.Infrastructure repair and replacement fund. Each recipient receiving a grant 
206.8 	under subdivision 1b shall provide from year to year, on a cumulative basis, for adequate 
206.9 	reserve funds to cover the repair and replacement of the private infrastructure systems 
206.10 	serving the community.

206.11 	Sec. 6. [462A.39] WORKFORCE HOUSING DEVELOPMENT PROGRAM.
206.12 		Subdivision 1.Establishment. The commissioner of Minnesota housing finance shall 
206.13 	establish a workforce housing development program to award grants or deferred loans to 
206.14 	eligible project areas to be used for qualified expenditures.
206.15 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
206.16 	meanings given.
206.17 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
206.18 	of the metropolitan area as defined in section 473.121, subdivision 2, with a population 
206.19 	exceeding 500; a community that has a combined population of 1,500 residents located 
206.20 	within 15 miles of a home rule charter or statutory city located outside the metropolitan 
206.21 	area as defined in section 473.121, subdivision 2; or an area served by a joint county-city 
206.22 	economic development authority.
206.23 	(c) "Joint county-city economic development authority" means an economic development 
206.24 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
206.25 	a city and county and excluding those established by the county only.
206.26 	(d) "Market rate residential rental properties" means properties that are rented at market 
206.27 	value, including new modular homes, new manufactured homes, and new manufactured 
206.28 	homes on leased land or in a manufactured home park, and excludes:
206.29 	(1) properties constructed with financial assistance requiring the property to be occupied 
206.30 	by residents that meet income limits under federal or state law of initial occupancy; and
206.31 	(2) properties constructed with federal, state, or local flood recovery assistance, regardless 
206.32 	of whether that assistance imposed income limits as a condition of receiving assistance.
207.1 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
207.2 	properties including acquisition of property; construction of improvements; and provisions 
207.3 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
207.4 	costs.
207.5 		Subd. 3.Application. The commissioner shall develop forms and procedures for soliciting 
207.6 	and reviewing application for grants or deferred loans under this section. At a minimum, a 
207.7 	city must include in its application a resolution of its governing body certifying that the 
207.8 	matching amount as required under this section is available and committed.
207.9 		Subd. 4.Program requirements. (a) The commissioner must not award a grant or 
207.10 	deferred loans to an eligible project area under this section until the following determinations 
207.11 	are made:
207.12 	(1) the average vacancy rate for rental housing located in the eligible project area, and 
207.13 	in any other city located within 15 miles or less of the boundaries of the area, has been five 
207.14 	percent or less for at least the prior two-year period;
207.15 	(2) one or more businesses located in the eligible project area, or within 25 miles of the 
207.16 	area, that employs a minimum of 20 full-time equivalent employees in aggregate have 
207.17 	provided a written statement to the eligible project area indicating that the lack of available 
207.18 	rental housing has impeded their ability to recruit and hire employees; and
207.19 	(3) the eligible project area has certified that the grants or deferred loans will be used 
207.20 	for qualified expenditures for the development of rental housing to serve employees of 
207.21 	businesses located in the eligible project area or surrounding area.
207.22 	(b) Preference for grants or deferred loans awarded under this section shall be given to 
207.23 	eligible project areas with less than 30,000 people.
207.24 		Subd. 5.Allocation. The amount of a grant or deferred loans may not exceed 25 percent 
207.25 	of the rental housing development project cost. The commissioner shall not award a grant 
207.26 	or deferred loans to a city without certification by the city that the amount of the grant or 
207.27 	deferred loans shall be matched by a local unit of government, business, or nonprofit 
207.28 	organization with $1 for every $2 provided in grant or deferred loans funds.
207.29 		Subd. 6.Report. Beginning January 15, 2018, the commissioner must annually submit 
207.30 	a report to the chairs and ranking minority members of the senate and house of representatives 
207.31 	committees having jurisdiction over taxes and workforce development specifying the projects 
207.32 	that received grants or deferred loans under this section and the specific purposes for which 
207.33 	the grant funds were used.

208.1 	Sec. 7. [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING 
208.2 	DEVELOPMENT.
208.3 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
208.4 	the meanings given to them.
208.5 	(b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
208.6 	(c) "Fund" means a local housing trust fund or a regional housing trust fund.
208.7 	(d) "Local government" means any statutory or home rule charter city or a county.
208.8 	(e) "Local housing trust fund" means a fund established by a local government with one 
208.9 	or more dedicated sources of public revenue for housing.
208.10 	(f) "Regional housing trust fund" means a fund established and administered under a 
208.11 	joint powers agreement entered into by two or more local governments with one or more 
208.12 	dedicated sources of public revenue for housing.
208.13 		Subd. 2.Creation and administration. (a) A local government may establish a local 
208.14 	housing trust fund by ordinance or participate in a joint powers agreement to establish a 
208.15 	regional housing trust fund.
208.16 	(b) A local or regional housing trust fund may be, but is not required to be, administered 
208.17 	through a nonprofit organization. If administered through a nonprofit organization, that 
208.18 	organization shall encourage private charitable donations to the fund.
208.19 		Subd. 3.Authorized expenditures. Money in a local or regional housing trust fund may 
208.20 	be used only to:
208.21 	(1) pay for administrative expenses, but not more than ten percent of the balance of the 
208.22 	fund may be spent on administration;
208.23 	(2) make grants, loans, and loan guarantees for the development, rehabilitation, or 
208.24 	financing of housing;
208.25 	(3) match other funds from federal, state, or private resources for housing projects; or
208.26 	(4) provide down payment assistance, rental assistance, and homebuyer counseling 
208.27 	services.
208.28 		Subd. 4.Funding. (a) A local government may finance its local or regional housing 
208.29 	trust fund with any money available to the local government, unless expressly prohibited 
208.30 	by state law. Sources of these funds include, but are not limited to:
208.31 	(1) donations;
209.1 	(2) bond proceeds;
209.2 	(3) grants and loans from a state, federal, or private source;
209.3 	(4) appropriations by a local government to the fund;
209.4 	(5) investment earnings of the fund; and
209.5 	(6) housing and redevelopment authority levies.
209.6 	(b) The local government may alter a source of funding for the local or regional housing 
209.7 	trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts 
209.8 	or expenditures authorized by the fund in its budget.
209.9 		Subd. 5.Reports. A local or regional housing trust fund established under this section 
209.10 	must report annually to the local government that created the fund. The local government 
209.11 	or governments must post this report on its public Web site.
209.12 		Subd. 6.Effect of legislation on existing local or regional housing trust funds. A 
209.13 	local or regional housing trust fund existing on the effective date of this section is not 
209.14 	required to alter the existing terms of its governing documents or take any additional 
209.15 	authorizing actions required by subdivision 2.

209.16 	Sec. 8. MINNESOTA HOUSING FINANCE AGENCY REPORT.
 209.17 	By February 1, 2018, and February 1, 2019, the Housing Finance Agency shall provide 
209.18 	to the chairs and ranking minority members of the house of representatives and senate 
209.19 	committees with jurisdiction over the agency:
209.20 	(1) a draft and final version of its affordable housing plan before and after it has been 
209.21 	submitted to the agency board for consideration; and
209.22 	(2) a report on the actual and anticipated funds available within the Housing Affordability 
209.23 	Fund, or Pool 3, and the actual and anticipated uses of those funds.

209.24 	Sec. 9. HOUSING FINANCE AGENCY ADMINISTRATIVE COSTS.
 209.25 	The cost of administering programs operated by the Housing Finance Agency that are 
209.26 	funded by the general fund or other resources, including bonds and federal funding, must 
209.27 	not be higher than the amount expended for direct or indirect administrative costs in fiscal 
209.28 	year 2017. The Housing Finance Agency must not have more full-time equivalent positions 
209.29 	than the number of full-time equivalent positions at the Housing Finance Agency on June 
209.30 	30, 2017.

210.1 	EFFECTIVE DATE. This section is effective from July 1, 2017, to July 1, 2021.

210.2 	ARTICLE 12
210.3 	MISCELLANEOUS POLICY

210.4 	Section 1. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
210.5 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
210.6 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
210.7 	new construction or remodeling of any building subject to the Minnesota Residential Code.
210.8 		Subd. 2.Impact on housing cost; agency determination. An agency must determine 
210.9 	if implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
210.10 	increase the cost of residential construction or remodeling by $1,000 or more per unit. The 
210.11 	agency must make this determination before the close of the hearing record, or before the 
210.12 	agency submits the record to the administrative law judge if there is no hearing. The 
210.13 	administrative law judge must review and approve or disapprove an agency's determination 
210.14 	under this subdivision.
210.15 		Subd. 3.Notice to legislature; legislative approval. (a) If the agency determines that 
210.16 	the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 
210.17 	2, or if the administrative law judge disapproves the agency's determination that the impact 
210.18 	does not meet or exceed that threshold, the agency must notify, in writing, the chairs and 
210.19 	ranking minority members of the policy committees of the house of representatives and the 
210.20 	senate with jurisdiction over the subject matter of the proposed rule within ten days of the 
210.21 	determination or disapproval.
210.22 	(b) If a committee of either the house of representatives or senate with jurisdiction over 
210.23 	the subject matter of the proposed rule votes to advise an agency that the rule should not 
210.24 	be adopted as proposed, the agency may not adopt the rule unless the rule is approved by 
210.25 	a law enacted after the vote of the committee. Section 14.126, subdivision 2, applies to a 
210.26 	vote of a committee under this subdivision.
210.27 		Subd. 4.Severability. If the agency or an administrative law judge determines that part 
210.28 	of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a 
210.29 	severable portion of the proposed rule does not meet or exceed that threshold, the agency 
210.30 	may proceed to adopt the severable portions of the proposed rule regardless of whether a 
210.31 	legislative committee vote is conducted under subdivision 3.

210.32 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to 
210.33 	administrative rules proposed on or after that date.

211.1 	Sec. 2. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special 
211.2 	Session chapter 1, article 7, section 1, and Laws 2016, chapter 189, article 7, section 42, is 
211.3 	amended to read:
211.4 	Sec. 13. EFFECTIVE DATE.
 211.5 	Sections 1 to 3 and 6 to 11 are effective July 1, 2017 2036. Sections 4, 5, and 12 are 
211.6 	effective July 1, 2014.

211.7 	Sec. 3. AGENCY ACTIVITY AND EXPENDITURE REPORTS.
 211.8 	(a) The commissioners of employment and economic development, housing finance, 
211.9 	labor and industry, and commerce, as well as the Public Utilities Commission, must each 
211.10 	submit a report, as described in paragraph (b), to the chairs and ranking minority members 
211.11 	of the house of representatives and senate committees and divisions with jurisdiction over 
211.12 	their budget appropriations by October 15, 2018.
211.13 	(b) The reports must include:
211.14 	(1) the number of employees in each operational division and descriptions of the work 
211.15 	of each employee;
211.16 	(2) a description of the responsibilities that fall under each operational division;
211.17 	(3) a detailed list of the source of all revenue, including any fees, taxes, or other revenues 
211.18 	collected, as well as details of base budgets, including all prior appropriation riders;
211.19 	(4) how much of each budgetary division appropriation passes through as grants, as well 
211.20 	as the costs related to each grant program;
211.21 	(5) a detailed description of the costs related to each budgetary division, as well as the 
211.22 	statutory authority under which those costs are allocated; and
211.23 	(6) the statutory authority for all expenditures.

APPENDIX 

Repealed Minnesota Statutes: SF1937-4 

3.8852 PLANNING STRATEGY FOR SUSTAINABLE ENERGY FUTURE.
(a) The Legislative Energy Commission, in consultation with the commissioner of commerce and other state agencies, shall develop a framework for the state of Minnesota to transition to a renewable energy economy that ends Minnesota's contribution to greenhouse gases from burning fossil fuels within the next few decades. The framework and strategy should aim to make Minnesota the first state in the nation to use only renewable energy. 

(b) In developing the framework for this transition, the commission must consult with stakeholders, including, but not limited to, representatives from cooperative, municipal, and investor-owned utilities, natural resources and environmental advocacy groups, labor and industry, and technical and scientific experts to examine the challenges and opportunities involved to develop a strategy and timeline to protect the environment and create jobs. The timeline must establish goals and strategies to reach the state's renewable energy standards and prepare for the steps beyond reaching those standards. The Department of Commerce, Division of Energy Resources shall provide technical support. 

(c) The commission and its stakeholders must consider the following in creating the framework: 

(1) the economic and environmental costs of continued reliance on fossil fuels; 

(2) the creation of jobs and industry in the state that result from moving ahead of other states in transitioning to a sustainable energy economy; 

(3) the appropriate energy efficiency and renewable energy investments in Minnesota to reduce the economic losses to the Minnesota economy from importation of fossil fuels; and 

(4) the new technologies for energy efficiency, storage, transmission, and renewable generation needed to reliably meet the demand for energy. 

(d) The framework shall be modified as needed to take advantage of new technological developments to facilitate ending fossil fuel use in power generation, heating and cooling, industry, and transportation. 

(e) The commission shall report to the legislative committees and divisions with jurisdiction over energy policy by January 15, 2014, and annually thereafter, on progress toward achieving the framework goals. 

116C.779 FUNDING FOR RENEWABLE DEVELOPMENT.Subd. 3.Initiative for Renewable Energy and the Environment. 
(a) Beginning July 1, 2009, and each July 1 through 2011, $5,000,000 must be allocated from the renewable development account to fund a grant to the Board of Regents of the University of Minnesota for the Initiative for Renewable Energy and the Environment for the purposes described in paragraph (b). The Initiative for Renewable Energy and the Environment must set aside at least 15 percent of the funds received annually under the grant for qualified projects conducted at a rural campus or experiment station. Any set-aside funds not awarded to a rural campus or experiment station at the end of the fiscal year revert back to the Initiative for Renewable Energy and the Environment for its exclusive use. This subdivision does not create an obligation to contribute funds to the account. 

(b) Activities funded under this grant may include, but are not limited to: 

(1) environmentally sound production of energy from a renewable energy source, including biomass and agricultural crops; 

(2) environmentally sound production of hydrogen from biomass and any other renewable energy source for energy storage and energy utilization; 

(3) development of energy conservation and efficient energy utilization technologies; 

(4) energy storage technologies; and 

(5) analysis of policy options to facilitate adoption of technologies that use or produce low-carbon renewable energy. 

(c) For the purposes of this subdivision: 

(1) "biomass" means plant and animal material, agricultural and forest residues, mixed municipal solid waste, and sludge from wastewater treatment; and 

(2) "renewable energy source" means hydro, wind, solar, biomass, and geothermal energy, and microorganisms used as an energy source. 

(d) Beginning January 15 of 2010, and each year thereafter, the director of the Initiative for Renewable Energy and the Environment at the University of Minnesota shall submit a report to the chair and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy finance describing the activities conducted during the previous year funded under this subdivision. 

116J.549 WORKFORCE HOUSING DEVELOPMENT PROGRAM.Subdivision 1.Establishment. 
The commissioner of employment and economic development shall establish a workforce housing development program to award grants to eligible project areas to be used for qualified expenditures. 

Subd. 2.Definitions. 
(a) For purposes of this section, the following terms have the meanings given. 

(b) "Eligible project area" means a home rule charter or statutory city located outside of the metropolitan area as defined in section 473.121, subdivision 2, with a population exceeding 500; a community that has a combined population of 1,500 residents located within 15 miles of a home rule charter or statutory city located outside the metropolitan area as defined in section 473.121, subdivision 2; or an area served by a joint county-city economic development authority. 

(c) "Joint county-city economic development authority" means an economic development authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between a city and county and excluding those established by the county only. 

(d) "Market rate residential rental properties" means properties that are rented at market value, including new modular homes, new manufactured homes, and new manufactured homes on leased land or in a manufactured home park, and excludes: 

(1) properties constructed with financial assistance requiring the property to be occupied by residents that meet income limits under federal or state law of initial occupancy; and 

(2) properties constructed with federal, state, or local flood recovery assistance, regardless of whether that assistance imposed income limits as a condition of receiving assistance. 

(e) "Qualified expenditure" means expenditures for market rate residential rental properties including acquisition of property; construction of improvements; and provisions of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing costs. 

Subd. 3.Application. 
The commissioner shall develop forms and procedures for soliciting and reviewing application for grants under this section. At a minimum, a city must include in its application a resolution of its governing body certifying that the matching amount as required under this section is available and committed. 

Subd. 4.Program requirements. 
(a) The commissioner must not award a grant to an eligible project area under this section until the following determinations are made: 

(1) the average vacancy rate for rental housing located in the eligible project area, and in any other city located within 15 miles or less of the boundaries of the area, has been five percent or less for at least the prior two-year period; 

(2) one or more businesses located in the eligible project area, or within 25 miles of the area, that employs a minimum of 20 full-time equivalent employees in aggregate have provided a written statement to the eligible project area indicating that the lack of available rental housing has impeded their ability to recruit and hire employees; and 

(3) the eligible project area has certified that the grants will be used for qualified expenditures for the development of rental housing to serve employees of businesses located in the eligible project area or surrounding area. 

(b) Preference for grants awarded under this section shall be given to eligible project areas with less than 18,000 people. 

Subd. 5.Allocation. 
The amount of a grant may not exceed 25 percent of the rental housing development project cost. The commissioner shall not award a grant to a city without certification by the city that the amount of the grant shall be matched by a local unit of government, business, or nonprofit organization with $1 for every $2 provided in grant funds. 

Subd. 6.Report. 
Beginning January 15, 2016, the commissioner must annually submit a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over taxes and workforce development specifying the projects that received grants under this section and the specific purposes for which the grant funds were used. 

174.187 MADE IN MINNESOTA SOLAR INSTALLATIONS.Subdivision 1.Definitions. 
(a) For the purposes of this section, the following terms have the meanings given. 

(b) "Made in Minnesota" means the manufacture in this state of solar photovoltaic modules: 

(1) at a manufacturing facility located in Minnesota that is registered and authorized to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved independent certification agency; 

(2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or an equivalent UL-approved independent certification agency, which must be physically applied to the modules at a manufacturing facility described in clause (1); and 

(3) that are manufactured in Minnesota: 

(i) via manufacturing processes that must include tabbing, stringing, and lamination; or 

(ii) by interconnecting low-voltage direct current photovoltaic elements that produce the final useful photovoltaic output of the modules. 

(c) "Solar photovoltaic module" has the meaning given in section 116C.7791, subdivision 1, paragraph (e). 

Subd. 2.Made in Minnesota solar energy system requirement. 
Notwithstanding any other law to the contrary, if the commissioner engages in any project for the construction, improvement, maintenance, or repair of any building, highway, road, bridge, or land owned or controlled by the department and the construction, improvement, maintenance, or repair involves installation of one or more solar photovoltaic modules, the commissioner must ensure that the solar photovoltaic modules purchased and installed are "Made in Minnesota" as defined in subdivision 1, paragraph (b). 

Subd. 3.Application. 
Subdivision 2 does not apply if: 

(1) as a condition of the receipt of federal financial assistance for a specific project, the commissioner is required to use a procurement method that might result in the award of a contract to a manufacturer that does not meet the "Made in Minnesota" criteria established in subdivision 1, paragraph (b); or 

(2) no solar photovoltaic modules are available that meet the "Made in Minnesota" criteria and fulfill the function required by the project. 

216B.8109 HYDROGEN ENERGY ECONOMY GOAL.
It is a goal of this state that Minnesota move to hydrogen as an increasing source of energy for its electrical power, heating, and transportation needs. 

216B.811 DEFINITIONS.Subdivision 1.Scope. 
For purposes of sections 216B.811 to 216B.815, the terms defined in this section have the meanings given them. 

Subd. 2.Fuel cell. 
"Fuel cell" means an electrochemical device that produces useful electricity, heat, and water vapor, and operates as long as it is provided fuel. 

Subd. 3.Hydrogen. 
"Hydrogen" means hydrogen produced using renewable energy sources. 

Subd. 4.Related technologies. 
"Related technologies" means balance of plant components necessary to make hydrogen and fuel cell systems function; turbines, reciprocating, and other combustion engines capable of operating on hydrogen; and electrolyzers, reformers, and other equipment and processes necessary to produce, purify, store, distribute, and use hydrogen for energy. 

216B.812 FOSTERING USE OF HYDROGEN ENERGY.Subdivision 1.State purchase and use of renewable hydrogen technologies. 
(a) The Department of Commerce, in coordination with the Department of Administration and the Pollution Control Agency, shall identify opportunities for deploying renewable hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets, and operations in ways that demonstrate their commercial performance and economics. 

(b) The Department of Commerce shall recommend to the Department of Administration the purchase and deployment of hydrogen, fuel cells, and related technologies, when feasible, in ways that strategically contribute to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109, and which contribute to the following nonexclusive list of objectives: 

(1) provide needed performance data to the marketplace; 

(2) identify code and regulatory issues to be resolved; 

(3) foster economic development and job creation in the state; 

(4) raise public awareness of renewable hydrogen, fuel cells, and related technologies; or 

(5) reduce emissions of carbon dioxide and other pollutants. 

(c) The Department of Commerce and the Pollution Control Agency shall also recommend to the Department of Administration changes to the state's procurement guidelines and contracts in order to facilitate the purchase and deployment of cost-effective renewable hydrogen, fuel cells, and related technologies by all levels of government. 

Subd. 2.Pilot projects. 
(a) In consultation with appropriate representatives from state agencies, local governments, universities, businesses, and other interested parties, the Department of Commerce shall report back to the legislature by November 1, 2005, and every two years thereafter, with a slate of proposed pilot projects that contribute to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The Department of Commerce must consider the following nonexclusive list of priorities in developing the proposed slate of pilot projects: 

(1) deploy "bridge" technologies such as hybrid-electric, off-road, and fleet vehicles running on hydrogen or fuels blended with hydrogen; 

(2) lead to cost-competitive, on-site renewable hydrogen production technologies; 

(3) demonstrate nonvehicle applications for hydrogen; 

(4) improve the cost and efficiency of hydrogen from renewable energy sources; and 

(5) improve the cost and efficiency of hydrogen production using direct solar energy without electricity generation as an intermediate step. 

(b) For deployment projects that do not involve a demonstration component, individual system components of the technology should, if feasible, meet commercial performance standards and systems modeling must be completed to predict commercial performance, risk, and synergies. In addition, the proposed pilots should meet as many of the following criteria as possible: 

(1) advance energy security; 

(2) capitalize on the state's native resources; 

(3) result in economically competitive infrastructure being put in place; 

(4) be located where it will link well with existing and related projects and be accessible to the public, now or in the future; 

(5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure; 

(6) include an explicit public education and awareness component; 

(7) be scalable to respond to changing circumstances and market demands; 

(8) draw on firms and expertise within the state where possible; 

(9) include an assessment of its economic, environmental, and social impact; and 

(10) serve other needs beyond hydrogen development. 

Subd. 3.Establishing multifuel hydrogen fueling stations. 
The commissioner of commerce may accept federal funds, expend funds, and participate in projects to design, site, and construct multifuel hydrogen fueling stations that eventually link urban centers along key trade corridors across the jurisdictions of Manitoba, the Dakotas, Minnesota, Iowa, and Wisconsin. 

These energy stations must serve the priorities listed in subdivision 2 and, as transition infrastructure, should accommodate a wide variety of vehicle technologies and fueling platforms, including hybrid, flexible-fuel, and fuel cell vehicles. They may offer, but not be limited to, gasoline, diesel, ethanol (E-85), biodiesel, and hydrogen, and may simultaneously test the integration of on-site combined heat and power technologies with the existing energy infrastructure. 

The hydrogen portion of the stations may initially serve local, dedicated on- or off-road vehicles, but should eventually support long-haul transport. 

216B.813 MINNESOTA RENEWABLE HYDROGEN INITIATIVE.Subdivision 1.Road map. 
The Department of Commerce shall coordinate and administer directly or by contract the Minnesota renewable hydrogen initiative. If the department decides to contract for its duties under this section, it must contract with a nonpartisan, nonprofit organization within the state to develop the road map. The initiative may be run as a public-private partnership representing business, academic, governmental, and nongovernmental organizations. The initiative must oversee the development and implementation of a renewable hydrogen road map, including appropriate technology deployments, that achieve the hydrogen goal of section 216B.8109. The road map should be compatible with the United States Department of Energy's National Hydrogen Energy Roadmap and be based on an assessment of marketplace economics and the state's opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on strengths. The road map should establish a vision, goals, general timeline, strategies for working with industry, and measurable milestones for achieving the state's renewable hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit in Minnesota's overall energy system, and should help foster a consistent, predictable, and prudent investment environment. The department must report to the legislature on the progress in implementing the road map by November 1 of each odd-numbered year. 

Subd. 2.Grants. 
(a) The commissioner of commerce shall operate a competitive grant program for projects to assist the state in attaining its renewable hydrogen energy goals. 

(b) The commissioner shall give preference to project concepts included in the department's most recent biennial report: Strategic Demonstration Projects to Accelerate the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota. Projects eligible for funding must combine one or more of the hydrogen production options listed in the department's report with an end use that has significant commercial potential, preferably high visibility, and relies on fuel cells or related technologies. Each funded technology deployment must include an explicit education and awareness-raising component, be compatible with the renewable hydrogen deployment criteria defined in section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50 percent requirement does not apply for recipients that are public institutions. 

216B.815 REGIONAL ENERGY RESEARCH AND EDUCATION PARTNERSHIP.
(a) The state's public research and higher education institutions should work with one another and with similar institutions in the region to establish Minnesota and the Upper Midwest as a center of research, education, outreach, and technology transfer for the production of renewable energy and products, including hydrogen, fuel cells, and related technologies. The partnership should be designed to create a critical mass of research and education capability that can compete effectively for federal and private investment in these areas. 

(b) Initiatives undertaken by the partnership may include: 

(1) collaborative and interdisciplinary research, demonstration projects, and commercialization of market-ready technologies; 

(2) creation of undergraduate and graduate course offerings and eventually degreed and vocational programs with reciprocity; 

(3) establishment of fellows programs at the region's institutes of higher learning that provide financial incentives for relevant study, research, and exchange; and 

(4) development and field-testing of relevant curricula, teacher kits for all educational levels, and widespread teacher training, in collaboration with state energy offices, teachers, nonprofits, businesses, the United States Department of Energy, and other interested parties. 

216C.29 SUBPOENA POWER.
The commissioner shall have the power, for the purposes of sections 216C.05 to 216C.30, to issue subpoenas for production of books, records, correspondence and other information and to require attendance of witnesses. The subpoenas may be served anywhere in the state by any person authorized to serve processes of courts of record. If a person does not comply with a subpoena, the commissioner may apply to the District Court of Ramsey County and the court shall compel obedience to the subpoena by a proper order. A person failing to obey the order is punishable by the court as for contempt. 

216C.411 DEFINITIONS.
For the purposes of sections 216C.411 to 216C.415, the following terms have the meanings given. 

(a) "Made in Minnesota" means the manufacture in this state of solar photovoltaic modules: 

(1) at a manufacturing facility located in Minnesota that is registered and authorized to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved independent certification agency; 

(2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or an equivalent UL-approved independent certification agency, which must be physically applied to the modules at a manufacturing facility described in clause (1); and 

(3) that are manufactured in Minnesota: 

(i) by manufacturing processes that must include tabbing, stringing, and lamination; or 

(ii) by interconnecting low-voltage direct current photovoltaic elements that produce the final useful photovoltaic output of the modules. 

A solar photovoltaic module that is manufactured by attaching microinverters, direct current optimizers, or other power electronics to a laminate or solar photovoltaic module that has received UL 1703 certification marks outside Minnesota from UL, CSA International, Intertek, or an equivalent UL-approved independent certification agency is not "Made in Minnesota" under this paragraph. 

(b) "Solar photovoltaic module" has the meaning given in section 116C.7791, subdivision 1, paragraph (e). 

216C.412 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE ACCOUNT.Subdivision 1.Account established; account management. 
A "Made in Minnesota" solar energy production incentive account is established as a separate account in the special revenue fund in the state treasury. Earnings, such as interest, dividends, and any other earnings arising from account assets, must be credited to the account. Funds remaining in the account at the end of a fiscal year do not cancel to the general fund but remain in the account. There is annually appropriated from the account to the commissioner of commerce money sufficient to make the incentive payments under section 216C.415, the transfers under section 216C.416, and to administer sections 216C.412 to 216C.415. 

Subd. 2.Payments from public utilities. 
(a) Beginning January 1, 2014, and each January 1 thereafter, through 2023, for a total of ten years, each electric public utility subject to section 216B.241 must annually pay to the commissioner of commerce five percent of the minimum amount it is required to spend on energy conservation improvements under section 216B.241, subdivision 1a. Payments under this subdivision must be included in the calculation of whether a utility's other spending on generation exceeds the limits authorized for spending on generation under section 216B.2411, subdivision 1, for investments proposed for commissioner of commerce approval after July 1, 2013. The limits on spending in section 216B.2411 do not limit or apply to payments required by this subdivision. Payments made under this paragraph count toward satisfying expenditure obligations of a public utility under section 216B.241, subdivision 1a. The commissioner shall, upon receipt of the funds, deposit them in the account established in subdivision 1. A public utility subject to this paragraph must be credited energy savings for the purpose of satisfying its energy savings requirement under section 216B.241, subdivision 1c, based on its payment to the commissioner. 

(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning January 1, 2014, and continuing through January 1, 2023, for a total of ten years, the public utility that manages the account under section 116C.779 must annually pay from that account to the commissioner an amount that, when added to the total amount paid to the commissioner of commerce under paragraph (a), totals $15,000,000 annually. The commissioner shall, upon receipt of the payment, deposit it in the account established in subdivision 1. 

216C.413 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE; QUALIFICATION.Subdivision 1.Application. 
A manufacturer of solar photovoltaic modules seeking to qualify those modules as eligible to receive the "Made in Minnesota" solar energy production incentive must submit an application to the commissioner of commerce on a form prescribed by the commissioner. The application must contain: 

(1) a technical description of the solar photovoltaic module and the processes used to manufacture it, excluding proprietary details; 

(2) documentation that the solar photovoltaic module meets all the required applicable parts of the "Made in Minnesota" definition in section 216C.411, including evidence of the UL 1703 right to mark for all solar photovoltaic modules seeking to qualify as "Made in Minnesota"; 

(3) any additional nonproprietary information requested by the commissioner of commerce; and 

(4) certification signed by the chief executive officer of the manufacturing company attesting to the truthfulness of the contents of the application and supporting materials under penalty of perjury. 

Subd. 2.Certification. 
If the commissioner determines that a manufacturer's solar photovoltaic module meets the definition of "Made in Minnesota" in section 216C.411, the commissioner shall issue the manufacturer a "Made in Minnesota" certificate containing the name and model numbers of the certified solar photovoltaic modules and the date of certification. The commissioner must issue or deny the issuance of a certificate within 90 days of receipt of a completed application. A copy of the certificate must be provided to each purchaser of the solar photovoltaic module. 

Subd. 3.Revocation of certification. 
The commissioner may revoke a certification of a module as "Made in Minnesota" if the commissioner finds that the module no longer meets the requirements to be certified. The revocation does not affect incentive payments awarded prior to the revocation. 

216C.414 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE.Subdivision 1.Setting incentive. 
Within 90 days of a module being certified as "Made in Minnesota" the commissioner of commerce shall set a solar energy production incentive amount for that solar photovoltaic module for the purpose of the incentive payment under section 216C.415. The incentive is a performance-based financial incentive expressed as a per kilowatt-hour amount. The amount shall be used for incentive applications approved in the year to which the incentive amount is applicable for the ten-year duration of the incentive payments. An incentive amount must be calculated for each module for each calendar year through 2023. 

Subd. 2.Criteria for determining incentive amount.  
(a) The commissioner shall set the incentive payment amount by determining the average amount of incentive payment required to allow an average owner of installed solar photovoltaic modules a reasonable return on their investment. In setting the incentive amount the commissioner shall consider: 

(1) an estimate of the installed cost per kilowatt-direct current, based on the cost data supplied by the manufacturer in the application submitted under section 216C.413, and an estimate of the average installation cost based on a representative sample of Minnesota solar photovoltaic installed projects; 

(2) the average insolation rate in Minnesota; 

(3) an estimate of the decline in the generation efficiency of the solar photovoltaic modules over time; 

(4) the rate paid by public utilities to owners of solar photovoltaic modules under section 216B.164 or other law; 

(5) applicable federal tax incentives for installing solar photovoltaic modules; and 

(6) the estimated levelized cost per kilowatt-hour generated. 

(b) The commissioner shall annually, for incentive applications received in a year, revise each incentive amount based on the factors in paragraph (a), clauses (1) to (6), general market conditions, and the availability of other incentives. In no case shall the "Made in Minnesota" incentive amount result in the "Made in Minnesota" incentives paid exceeding 40 percent, net of average applicable taxes on the ten-year incentive payments, of the average historic installation cost per kilowatt. The commissioner may exceed the 40 percent cap if the commissioner determines it is necessary to fully expend funds available for incentive payments in a particular year. 

Subd. 3.Metering of production. 
A public utility must, at the expense of a customer, provide a meter to measure the production of a solar photovoltaic module system that is approved to receive incentive payments. The public utility must furnish the commissioner with information sufficient for the commissioner to determine the incentive payment. The information must be provided on a calendar year basis by no later than March 1. The commissioner shall provide a public utility with forms to use to provide the production information. A customer must attest to the accuracy of the production information. 

Subd. 4.Payment due date. 
Payments must be made no later than July 1 following the year of production. 

Subd. 5.Renewable energy credits. 
Renewable energy credits associated with energy provided to a public utility for which an incentive payment is made belong to the utility. 

216C.415 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE; PAYMENT.Subdivision 1.Incentive payment. 
Incentive payments may be made under this section only to an owner of grid-connected solar photovoltaic modules with a total nameplate capacity below 40 kilowatts direct current who: 

(1) has submitted to the commissioner, on a form established by the commissioner, an application to receive the incentive that has been approved by the commissioner; 

(2) has received a "Made in Minnesota" certificate under section 216C.413 for the module; and 

(3) has installed on residential or commercial property solar photovoltaic modules that are generating electricity and has received a "Made in Minnesota" certificate under section 216C.413. 

Subd. 2.Application process. 
Applications for an incentive payment must be received by the commissioner between January 1 and February 28. The commissioner shall by a random method approve the number of applications the commissioner reasonably determines will exhaust the funds available for payment for the ten-year period of incentive payments. Applications for residential and commercial installations shall be separately randomly approved. 

Subd. 3.Commissioner approval of incentive application. 
The commissioner must approve an application for an incentive for an owner to be eligible for incentive payments. The commissioner must not approve an application in a calendar year if the commissioner determines there will not be sufficient funding available to pay an incentive to the applicant for any portion of the ten-year duration of payment. The commissioner shall annually establish a cap on the cumulative capacity for a program year based on funds available and historic average installation costs. Receipt of an incentive is not an entitlement and payment need only be made from available funds in the "Made in Minnesota" solar production incentive account. 

Subd. 4.Eligibility window; payment duration. 
(a) Payments may be made under this section only for electricity generated from new solar photovoltaic module installations that are commissioned between January 1, 2014, and December 31, 2023. 

(b) The payment eligibility window of the incentive begins and runs consecutively from the date the solar system is commissioned. 

(c) An owner of solar photovoltaic modules may receive payments under this section for a particular module for a period of ten years provided that sufficient funds are available in the account. 

(d) No payment may be made under this section for electricity generated after December 31, 2033. 

(e) An owner of solar photovoltaic modules may not first begin to receive payments under this section after December 31, 2024. 

Subd. 5.Allocation of payments. 
(a) If there are sufficient applications, approximately 50 percent of the incentive payment shall be for owners of eligible solar photovoltaic modules installed on residential property, and approximately 50 percent shall be for owners of eligible solar photovoltaic modules installed on commercial property. 

(b) The commissioner shall endeavor to distribute incentives paid under this section to owners of solar photovoltaic modules installed in a manner so that the amount of payments received in an area of the state reasonably approximates the amount of payments made by a utility serving that area. 

(c) For purposes of this subdivision: 

(1) "residential property" means residential real estate that is occupied and used as a homestead by its owner or by a renter and includes "multifamily housing development" as defined in section 462C.02, subdivision 5, except that residential property on which solar photovoltaic modules (i) whose capacity exceeds 10 kilowatts is installed; or (ii) connected to a utility's distribution system and whose electricity is purchased by several residents, each of whom own a share of the electricity generated, shall be deemed commercial property; and 

(2) "commercial property" means real property on which is located a business, government, or nonprofit establishment. 

Subd. 6.Limitation. 
An owner receiving an incentive payment under this section may not receive a rebate under section 116C.7791 for the same solar photovoltaic modules. 

216C.416 SOLAR THERMAL REBATES.Subdivision 1.Rebate program created. 
The commissioner of commerce shall operate a program to provide rebates for the installation of "Made in Minnesota" solar thermal systems in the state. "Solar thermal system" means a flat plate or evacuated tube that meets the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant energy and transfers it to a storage medium for distribution as energy to heat or cool air or water. A solar thermal system is "Made in Minnesota" if components of the system are manufactured in Minnesota and the solar thermal system is certified by the Solar Rating and Certification Corporation. The solar thermal system may be installed in residential and commercial facilities for, among other purposes, hot water, space heating, or pool heating purposes. 

Subd. 2.Account; funding. 
(a) The solar thermal system rebate account is created as a separate account in the special revenue fund in the state treasury. Earnings, such as interest, dividends, and any other earnings arising from account assets, must be credited to the account. Funds in the account are appropriated to the commissioner of commerce for the purpose of making the rebate payments under this section and administering this section. 

(b) Beginning January 1, 2014, and each January 1 thereafter to January 1, 2023, the commissioner of commerce shall annually transfer $250,000 from the account created in section 216C.412 for deposit in the account created in this subdivision. 

(c) To the extent there are sufficient applications, the commissioner shall annually spend for rebates under this section from 2014 to 2023, for a total of ten years, approximately $250,000 per year. If sufficient applications are not received to spend the money available for rebates in a year under this section, the unspent money must be returned to the account from which it was transferred, provided that funds available for 2014 applications shall remain available for 2015 applications. 

Subd. 3.Individual incentives. 
The maximum rebate for a single family residential dwelling installation is the lesser of 25 percent of the installed cost of a complete system or $2,500. The maximum rebate for a multiple family residential dwelling installation is the lesser of 25 percent of the installed cost of a complete system or $5,000. The maximum rebate for a commercial installation is the lesser of 25 percent of the installation cost of the complete system or $25,000. The system must be installed by a factory authorized installer. The commissioner shall allocate approximately 50 percent of the rebates in each year to solar thermal hot water and 50 percent to solar thermal air projects if sufficient applications are made for each. 

Subd. 4.Application process. 
Applications for incentives must be made to the commissioner of commerce on forms provided by the commissioner. The commissioner shall use a random process for the selection of recipients of incentives except to the extent necessary to allocate rebates as required by this section. 

298.22 IRON RANGE RESOURCES AND REHABILITATION.Subd. 8.Spending priority. 
In making or approving any expenditures on programs or projects, the commissioner and the board shall give the highest priority to programs and projects that target relief to those areas of the taconite assistance area as defined in section 273.1341, that have the largest percentages of job losses and population losses directly attributable to the economic downturn in the taconite industry since the 1980s. The commissioner and the board shall compare the 1980 population and employment figures with the 2000 population and employment figures, and shall specifically consider the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company, in making or approving expenditures consistent with this subdivision, as well as the areas of residence of persons who suffered job loss for which relief is to be targeted under this subdivision. The commissioner may lease, for a term not exceeding 50 years and upon the terms determined by the commissioner and approved by the board, surface and mineral interests owned or acquired by the state of Minnesota acting by and through the office of the commissioner of Iron Range resources and rehabilitation within those portions of the taconite assistance area affected by the closure of the LTV Steel Mining Company facility near Hoyt Lakes. The payments and royalties from these leases must be deposited into the fund established in section 298.292. This subdivision supersedes any other conflicting provisions of law and does not preclude the commissioner and the board from making expenditures for programs and projects in other areas. 

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.Subdivision 1.Appropriation. 
$4,000,000 is appropriated from the general fund to the commissioner of Iron Range resources and rehabilitation. $300,000 of this appropriation must be used in the same manner as money appropriated under section 298.17. 

Subd. 2.Purpose of expenditures. 
The money appropriated in this section may be used for projects and programs for which technological and economic feasibility have been demonstrated and that have the following purposes: 

(1) creating and maintaining productive, permanent, skilled employment, including employment in technologically innovative businesses; and 

(2) encouraging diversification of the economy and promoting the development of minerals, alternative energy sources utilizing indigenous fuels, forestry, small business, and tourism. 

Subd. 3.Use of money. 
The money appropriated under this section may be used to provide loans, loan guarantees, interest buy-downs, and other forms of participation with private sources of financing, provided that a loan to a private enterprise must be for a principal amount not to exceed one-half of the cost of the project for which financing is sought, and the rate of interest on a loan must be no less than the lesser of eight percent or the rate of interest that is three percentage points less than a full faith and credit obligation of the United States government of comparable maturity, at the time that the loan is approved. 

Money appropriated in this section must be expended only in or for the benefit of the taconite assistance area defined in section 273.1341, and as otherwise provided in this section. 

Subd. 4.Project approval. 
The board and commissioner shall by August 1 each year prepare a list of projects to be funded from the money appropriated in this section with necessary supporting information including descriptions of the projects, plans, and cost estimates. A project must not be approved by the board unless it finds that: 

(1) the project will materially assist, directly or indirectly, the creation of additional long-term employment opportunities; 

(2) the prospective benefits of the expenditure exceed the anticipated costs; and 

(3) in the case of assistance to private enterprise, the project will serve a sound business purpose. 

Each project must be approved by the board and the commissioner of Iron Range resources and rehabilitation. The list of projects must be submitted to the governor, who shall, by November 15 of each year, approve, disapprove, or return for further consideration, each project. The money for a project may be spent only upon approval of the project by the governor. The board may submit supplemental projects for approval at any time. 

Subd. 5.Advisory committees. 
Before submission to the board of a proposal for a project for expenditure of money appropriated under this section, the commissioner of Iron Range resources and rehabilitation shall appoint a technical advisory committee consisting of at least seven persons who are knowledgeable in areas related to the objectives of the proposal. If the project involves investment in a scientific research proposal, at least four of the committee members must be knowledgeable in the specific scientific research area relating to the project. Members of the committees must be compensated as provided in section 15.059, subdivision 3. The board shall not act on a proposal until it has received the evaluation and recommendations of the technical advisory committee. 

Subd. 6.Use of repayments and earnings. 
Principal and interest received in repayment of loans made under this section must be deposited in the state treasury and are appropriated to the board for the purposes of this section. 

298.298 LONG-RANGE PLAN.
Consistent with the policy established in sections 298.291 to 298.298, the Iron Range Resources and Rehabilitation Board shall prepare and present to the governor and the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. Johnson economic protection trust fund for the economic development and diversification of the taconite assistance area defined in section 273.1341. No project shall be approved by the Iron Range Resources and Rehabilitation Board which is not consistent with the goals and objectives established in the long-range plan. 

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. 

Repealed Minnesota Session Laws: SF1937-4 

Laws 2005, chapter 112, article 1, section 14 by Laws 2017, chapter 35, article 3, section 25
Sec. 14. MANDATORY FEDERAL IMPLEMENTATION REQUIREMENT. 
The commissioner must implement systems and processes to detect, investigate, and enforce section 268.051, subdivisions 4 and 4a. 

Laws 2013, chapter 85, article 6, section 11 by Laws 2017, chapter 94, article 10, section 30
Sec. 11. SOLAR PHOTOVOLTAIC MODULES. 
No solar photovoltaic module may be installed that is financed directly or indirectly, wholly or in part, with money appropriated in this act, unless the solar photovoltaic module is made in Minnesota as defined in Minnesota Statutes, section 16B.323, subdivision 1, paragraph (b). 

4355.0100
[Repealed, L 2017 c 94 art 6 s 28] 

4355.0200
[Repealed, L 2017 c 94 art 6 s 28] 

4355.0300
[Repealed, L 2017 c 94 art 6 s 28] 

4355.0400
[Repealed, L 2017 c 94 art 6 s 28] 

4355.0500
[Repealed, L 2017 c 94 art 6 s 28]