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, Public Facilities Authority, 
1.7 	and the Department of Iron Range Resources and Rehabilitation; making policy 
1.8 	and housekeeping changes to labor and industry provisions; making policy changes 
1.9 	to employment, economic development, and workforce development provisions; 
1.10 	making policy changes to the Department of Iron Range Resources and 
1.11 	Rehabilitation; making policy, housekeeping, and technical changes regarding 
1.12 	unemployment insurance; making changes to commerce, telecommunications, and 
1.13 	energy policy; making other miscellaneous policy changes; allocating workforce 
1.14 	housing tax-exempt bonds; modifying fees; modifying rulemaking procedures; 
1.15 	modifying criminal penalties; requiring reports;amending Minnesota Statutes 
1.16 	2016, sections 3.732, subdivision 1; 3.736, subdivision 3; 3.8851, subdivision 1; 
1.17 	15.01; 15.38, subdivision 7; 15A.0815, subdivision 3; 16B.323; 43A.02, subdivision 
1.18 	22; 45.013; 45.0135, subdivision 6; 65B.84, subdivision 1; 85.0146, subdivision 
1.19 	1; 116.03, by adding a subdivision; 116C.779, subdivision 1, by adding a 
1.20 	subdivision; 116C.7792; 116D.04, subdivision 1a; 116J.01, subdivision 5; 116J.013; 
1.21 	116J.423, subdivision 2; 116J.424; 116J.994, subdivisions 3, 5, 7; 116L.17, 
1.22 	subdivision 1; 175.45; 216A.03, subdivision 1, by adding a subdivision; 216B.03; 
1.23 	216B.16, subdivisions 1a, 6; 216B.161, subdivision 1; 216B.1691, subdivision 2f; 
1.24 	216B.1694, subdivision 1; 216B.241, subdivisions 1b, 1c, 2, 5, 5d, 7; 216B.2422, 
1.25 	subdivisions 2, 3, 4; 216B.243, subdivision 8; 216C.05, subdivision 2; 216C.41, 
1.26 	subdivisions 2, 5a; 216C.435, by adding a subdivision; 216E.03, subdivisions 3, 
1.27 	9; 216E.04, subdivision 7; 216F.01, subdivision 2; 216F.011; 216F.04; 216H.03, 
1.28 	subdivisions 3, 4, 7; 237.01, by adding subdivisions; 268.031, subdivision 1; 
1.29 	268.035, subdivisions 15, 20, 21d, 23, 30; 268.042, subdivision 1; 268.046, 
1.30 	subdivision 3; 268.051, subdivisions 1, 9; 268.065, subdivision 2; 268.07, 
1.31 	subdivisions 2, 3a, 3b; 268.085, subdivisions 1, 6, 7, 12, 13, 13a; 268.0865, 
1.32 	subdivision 5; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.105, 
1.33 	subdivision 2; 268.131; 268.18, subdivisions 2, 2b, 5; 268.182; 268.184; 268.194, 
1.34 	subdivisions 1, 4; 276A.01, subdivisions 8, 17; 276A.06, subdivision 8; 282.38, 
1.35 	subdivisions 1, 3; 297I.11, subdivision 2; 298.001, subdivision 8, by adding a 
1.36 	subdivision; 298.018, subdivision 1; 298.17; 298.22, subdivisions 1, 1a, 5a, 6, 10, 
1.37 	11, by adding subdivisions; 298.221; 298.2211, subdivisions 3, 6; 298.2212; 
1.38 	298.2214, subdivision 2; 298.223; 298.227; 298.27; 298.28, subdivisions 7, 7a, 
1.39 	9c, 9d, 11; 298.292, subdivision 2; 298.296; 298.2961; 298.297; 298.46, 
2.1 	subdivisions 2, 5, 6; 325J.06; 326B.092, subdivision 7; 326B.153, subdivision 1; 
2.2 	326B.37, by adding subdivisions; 326B.435, subdivision 2; 326B.50, subdivision 
2.3 	3, by adding subdivisions; 326B.55, subdivisions 2, 4; 326B.805, subdivision 3; 
2.4 	326B.89, subdivisions 1, 5; 345.42, subdivision 1, by adding a subdivision; 345.49; 
2.5 	462.355, subdivision 4; 462A.201, subdivision 2; 462A.204, subdivision 8; 466.03, 
2.6 	subdivision 6c; 469.310, subdivision 9; 473.145; 473.254, subdivisions 2, 3a; 
2.7 	474A.02, subdivision 21; Laws 2010, chapter 389, article 5, section 7; Laws 2014, 
2.8 	chapter 211, section 13, as amended; Laws 2014, chapter 312, article 2, section 
2.9 	14, as amended; Laws 2015, First Special Session chapter 1, article 1, sections 2, 
2.10 	subdivision 6; 5, subdivision 2; Laws 2016, chapter 189, article 7, section 46; 
2.11 	proposing coding for new law in Minnesota Statutes, chapters 14; 116C; 116J; 
2.12 	175; 216B; 216C; 216G; 237; 239; 326B; 462A; 462C; 471; 474A; repealing 
2.13 	Minnesota Statutes 2016, sections 3.8852; 116C.779, subdivision 3; 116J.549; 
2.14 	174.187; 216B.8109; 216B.811; 216B.812; 216B.813; 216B.815; 216C.29; 
2.15 	216C.411; 216C.412; 216C.413; 216C.414; 216C.415; 216C.416; 298.22, 
2.16 	subdivision 8; 298.2213; 298.298; 326B.89, subdivision 14; Laws 2005, chapter 
2.17 	112, article 1, section 14; Laws 2013, chapter 85, article 6, section 11.
2.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.19 	ARTICLE 1
2.20 	APPROPRIATIONS

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

2.31				APPROPRIATIONS
	
2.32				Available for the Year
	
2.33				Ending June 30
	
2.34					2018
		2019

2.35
2.36	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.37	Subdivision 1.Total Appropriation
 	$
	128,211,000
	$
	111,024,000

2.38	Appropriations by Fund
	
2.39		2018
	2019
	
3.1	General
	93,997,000
	84,160,000
	
3.2	Remediation
	700,000
	700,000
	
3.3
3.4	Workforce 
Development
	26,164,000
	26,164,000
	
3.5	Special Revenue
	7,350,000
	0
	
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
 		48,084,000
		38,834,000

3.34	Appropriations by Fund
	
3.35	General
	39,134,000
	37,234,000
	
4.1	Remediation
	700,000
	700,000
	
4.2
4.3	Workforce 
Development
	900,000
	900,000
	
4.4	Special Revenue
	7,350,000
	0
	
4.5 	(a) Of the amounts appropriated in this 
4.6 	subdivision, no more than $4,154,000 in fiscal 
4.7 	year 2018 and $4,219,000 in fiscal year 2019 
4.8 	may be expended on full-time equivalent 
4.9 	positions, totaling no more than 40.2 full-time 
4.10 	equivalent positions in fiscal year 2018 and 
4.11 	40.2 full-time equivalent positions in fiscal 
4.12 	year 2019.
4.13 	(b)(1) $12,000,000 the first year and 
4.14 	$11,000,000 the second year are for the 
4.15 	Minnesota investment fund under Minnesota 
4.16 	Statutes, section 116J.8731. Of this amount, 
4.17 	the commissioner of employment and 
4.18 	economic development may use up to three 
4.19 	percent for administrative expenses and 
4.20 	technology upgrades. This appropriation is 
4.21 	available until June 30, 2021.
4.22 	(2) Of the amount appropriated in fiscal year 
4.23 	2018, $4,000,000 is for a loan to construct and 
4.24 	equip a wholesale electronic component 
4.25 	distribution center investing a minimum of 
4.26 	$200,000,000 and constructing a facility at 
4.27 	least 700,000 square feet in size. Loan funds 
4.28 	may be used for purchases of materials, 
4.29 	supplies, and equipment for the construction 
4.30 	of the facility and are available from July 1, 
4.31 	2017, to June 30, 2021. The commissioner of 
4.32 	employment and economic development shall 
4.33 	forgive the loan after verification that the 
4.34 	project has satisfied performance goals and 
4.35 	contractual obligations as required under 
4.36 	Minnesota Statutes, section 116J.8731.
5.1 	(3) Of the amount appropriated in fiscal year 
5.2 	2018, $700,000 is for a loan to extend an 
5.3 	effluent pipe that will deliver wastewater to 
5.4 	an innovative waste-to-biofuel project 
5.5 	investing a minimum of $150,000,000 and 
5.6 	constructing a facility that is designed to 
5.7 	process approximately 400,000 tons of waste 
5.8 	annually. Loan funds are available until June 
5.9 	30, 2021.
5.10 	(c) $5,000,000 each year is for the Minnesota 
5.11 	job creation fund under Minnesota Statutes, 
5.12 	section 116J.8748. Of this amount, the 
5.13 	commissioner of employment and economic 
5.14 	development may use up to three percent for 
5.15 	administrative expenses. This appropriation 
5.16 	is available until expended.
5.17 	(d) $1,272,000 in fiscal year 2018 and 
5.18 	$2,272,000 in fiscal year 2019 are for 
5.19 	contaminated site cleanup and development 
5.20 	grants under Minnesota Statutes, sections 
5.21 	116J.551 to 116J.558. This appropriation is 
5.22 	available until expended. In fiscal year 2020 
5.23 	and beyond, the base amount is $1,272,000.
5.24 	(e) $1,425,000 each year is for the business 
5.25 	development competitive grant program. Of 
5.26 	this amount, up to five percent is for 
5.27 	administration and monitoring of the business 
5.28 	development competitive grant program. All 
5.29 	grant awards shall be for two consecutive 
5.30 	years. Grants shall be awarded in the first year.
5.31 	(f) $4,195,000 each year is for the Minnesota 
5.32 	job skills partnership program under 
5.33 	Minnesota Statutes, sections 116L.01 to 
5.34 	116L.17. If the appropriation for either year 
5.35 	is insufficient, the appropriation for the other 
6.1 	year is available. This appropriation is 
6.2 	available until June 30, 2021.
6.3 	(g) $163,000 each year is for the Minnesota 
6.4 	Film and TV Board. The appropriation in each 
6.5 	year is available only upon receipt by the 
6.6 	board of $1 in matching contributions of 
6.7 	money or in-kind contributions from nonstate 
6.8 	sources for every $3 provided by this 
6.9 	appropriation, except that each year up to 
6.10 	$50,000 is available on July 1 even if the 
6.11 	required matching contribution has not been 
6.12 	received by that date.
6.13 	(h) $750,000 each year is for a grant to the 
6.14 	Minnesota Film and TV Board for the film 
6.15 	production jobs program under Minnesota 
6.16 	Statutes, section 116U.26. This appropriation 
6.17 	is available until June 30, 2021.
6.18 	(i) $875,000 each year is for the Host 
6.19 	Community Economic Development Program 
6.20 	established in Minnesota Statutes, section 
6.21 	116J.548.
6.22 	(j) $300,000 each year is for grants to the 
6.23 	Rural Policy and Development Center under 
6.24 	Minnesota Statutes, section 116J.421.
6.25 	(k)(1) $2,300,000 the first year and $1,300,000 
6.26 	the second year are for the greater Minnesota 
6.27 	business development public infrastructure 
6.28 	grant program under Minnesota Statutes, 
6.29 	section 116J.431. This appropriation is 
6.30 	available until spent. Funds available under 
6.31 	this paragraph may be used for site preparation 
6.32 	of property owned and to be used by private 
6.33 	entities.
7.1 	(2) Of the amount appropriated in fiscal year 
7.2 	2018, $1,000,000 is for a grant to the city of 
7.3 	Thief River Falls to support utility extensions, 
7.4 	roads, and other public improvements related 
7.5 	to the construction of a wholesale electronic 
7.6 	component distribution center at least 700,000 
7.7 	square feet in size and investing a minimum 
7.8 	of $200,000,000. Notwithstanding Minnesota 
7.9 	Statutes, section 116J.431, a local match is 
7.10 	not required. Grant funds are available from 
7.11 	July 1, 2017, to June 30, 2021.
7.12 	(l)(1) $500,000 in fiscal year 2018 is for grants 
7.13 	to local communities to increase the supply of 
7.14 	quality child care providers in order to support 
7.15 	economic development. At least 60 percent of 
7.16 	grant funds must go to communities located 
7.17 	outside of the seven-county metropolitan area, 
7.18 	as defined under Minnesota Statutes, section 
7.19 	473.121, subdivision 2. Grant recipients must 
7.20 	obtain a 50 percent nonstate match to grant 
7.21 	funds in either cash or in-kind contributions. 
7.22 	Grant funds available under this paragraph 
7.23 	must be used to implement solutions to reduce 
7.24 	the child care shortage in the state, including 
7.25 	but not limited to funding for child care 
7.26 	business start-ups or expansion, training, 
7.27 	facility modifications or improvements 
7.28 	required for licensing, and assistance with 
7.29 	licensing and other regulatory requirements. 
7.30 	In awarding grants, the commissioner must 
7.31 	give priority to communities that have 
7.32 	documented a shortage of child care providers 
7.33 	in the area.
7.34 	(2) Within one year of receiving grant funds, 
7.35 	grant recipients must report to the 
8.1 	commissioner on the outcomes of the grant 
8.2 	program, including but not limited to the 
8.3 	number of new providers, the number of 
8.4 	additional child care provider jobs created, the 
8.5 	number of additional child care slots, and the 
8.6 	amount of local funds invested.
8.7 	(3) By January 1 of each year, starting in 2019, 
8.8 	the commissioner must report to the standing 
8.9 	committees of the legislature having 
8.10 	jurisdiction over child care and economic 
8.11 	development on the outcomes of the program 
8.12 	to date.
8.13 	(m) $750,000 each year is for grants to the 
8.14 	Neighborhood Development Center for small 
8.15 	business programs.
8.16 	(n) $1,175,000 each year is for grants to the 
8.17 	Metropolitan Economic Development 
8.18 	Association (MEDA) for statewide business 
8.19 	development and assistance services, including 
8.20 	services to entrepreneurs with businesses that 
8.21 	have the potential to create job opportunities 
8.22 	for unemployed and underemployed people, 
8.23 	with an emphasis on minority-owned 
8.24 	businesses.
8.25 	(o) $125,000 each year is for grants to the 
8.26 	White Earth Nation for the White Earth Nation 
8.27 	Integrated Business Development System to 
8.28 	provide business assistance with workforce 
8.29 	development, outreach, technical assistance, 
8.30 	infrastructure and operational support, 
8.31 	financing, and other business development 
8.32 	activities.
9.1 	(p) $1,375,000 in fiscal year 2018 and 
9.2 	$1,575,000 in fiscal year 2019 are for grants 
9.3 	to Enterprise Minnesota, Inc.
9.4 	(q) $250,000 in fiscal year 2018 is for a grant 
9.5 	to the Minnesota Design Center at the 
9.6 	University of Minnesota for the greater 
9.7 	Minnesota community design pilot project.
9.8 	(r) $225,000 in fiscal year 2018 is for a grant 
9.9 	to WomenVenture to provide business 
9.10 	training, mentoring, technical assistance, and 
9.11 	loans in order to establish two pilot 
9.12 	women-run cooperative child care businesses 
9.13 	in low-income urban areas. The commissioner 
9.14 	shall report data on outcomes and 
9.15 	recommendations for replication of this pilot 
9.16 	program throughout Minnesota to the governor 
9.17 	and the legislative committees with 
9.18 	jurisdiction over child care by January 31, 
9.19 	2020. Funds are available until June 30, 2019.
9.20 	(s) $125,000 in fiscal year 2018 is for a grant 
9.21 	to WomenVenture to operate a business 
9.22 	training program for child care providers and 
9.23 	to create materials that could be used, free of 
9.24 	charge, for start-up, expansion, and operation 
9.25 	of child care businesses statewide, with the 
9.26 	goal of helping new and existing child care 
9.27 	businesses in underserved areas of the state 
9.28 	become profitable and sustainable. The 
9.29 	commissioner shall report data on outcomes 
9.30 	and recommendations for replication of this 
9.31 	training program throughout Minnesota to the 
9.32 	governor and the committees of the house of 
9.33 	representatives and the senate with jurisdiction 
9.34 	over child care by December 15, 2019. Funds 
9.35 	are available until June 30, 2019.
10.1 	(t)(1) $125,000 each year is for small business 
10.2 	development center (SBDC) services to 
10.3 	support business transition planning. In fiscal 
10.4 	year 2020 and beyond, the base amount is $0. 
10.5 	For purposes of this paragraph, business 
10.6 	transition planning includes, but is not limited 
10.7 	to:
10.8 	(i) succession planning for next generation 
10.9 	proprietors. For purposes of this item, next 
10.10 	generation proprietors do not include 
10.11 	immediate family members of the current 
10.12 	business owner;
10.13 	(ii) providing business owners seeking to sell 
10.14 	existing businesses and aspiring business 
10.15 	owners with a venue and opportunity to 
10.16 	exchange information. Such services under 
10.17 	this clause may be targeted to small businesses 
10.18 	located in economically disadvantaged 
10.19 	communities or areas of declining population. 
10.20 	For purposes of this item, "economically 
10.21 	disadvantaged communities" means 
10.22 	communities in which average household 
10.23 	income is less than 80 percent of statewide 
10.24 	median household income as measured by the 
10.25 	United States Census Bureau; or communities 
10.26 	that contain two or more contiguous census 
10.27 	tracts in which average household income is 
10.28 	less than 80 percent of the statewide median 
10.29 	household income as measured by the United 
10.30 	States Census Bureau; and
10.31 	(iii) providing information and counseling 
10.32 	services to business owners, prospective 
10.33 	owners, and others regarding the importance 
10.34 	of business transition and succession planning, 
10.35 	the transition and succession process, and 
11.1 	financing options and requirements related to 
11.2 	the business transition and succession process.
11.3 	(2) Funds available under this paragraph may 
11.4 	be used to:
11.5 	(i) provide the necessary information and 
11.6 	services under clause (1);
11.7 	(ii) build small business development center 
11.8 	staff capacity to provide business transition 
11.9 	and succession planning services; and
11.10 	(iii) match funds under the federal Small 
11.11 	Business Development Center Program under 
11.12 	United States Code, title 15, section 648, and 
11.13 	other federal, state, or local funds available 
11.14 	for the purposes of this paragraph.
11.15 	(u) $350,000 in fiscal year 2018 is for a grant 
11.16 	to the Hallie Q. Brown Community Center, 
11.17 	Inc., for youth intervention services through 
11.18 	the community ambassadors and youth 
11.19 	employment program.
11.20 	(v)(1) $500,000 in fiscal year 2018 is for a 
11.21 	grant to East Side Enterprise Center (ESEC) 
11.22 	to expand culturally tailored resources that 
11.23 	address small business growth and job 
11.24 	creation. This appropriation is onetime and is 
11.25 	available until June 30, 2021. The 
11.26 	appropriation shall fund the work of African 
11.27 	Economic Development Solutions, the Asian 
11.28 	Economic Development Association, the 
11.29 	Dayton's Bluff Community Council, and the 
11.30 	Latino Economic Development Center in a 
11.31 	collaborative approach to economic 
11.32 	development that is effective with smaller, 
11.33 	culturally diverse communities that seek to 
11.34 	increase the productivity and success of new 
12.1 	immigrant and minority populations living 
12.2 	and working in the community. Programs shall 
12.3 	provide minority business growth and capacity 
12.4 	building that generate wealth and jobs creation 
12.5 	for local residents and business owners on the 
12.6 	East Side of St. Paul.
12.7 	(2) In fiscal year 2019 ESEC shall use funds 
12.8 	to share its integrated service model and 
12.9 	evolving collaboration principles with civic 
12.10 	and economic development leaders in greater 
12.11 	Minnesota communities which have diverse 
12.12 	populations similar to the East Side of St. Paul. 
12.13 	ESEC shall submit a report of activities and 
12.14 	program outcomes, including quantifiable 
12.15 	measures of success, annually to the house of 
12.16 	representatives and senate committees with 
12.17 	jurisdiction over economic development.
12.18 	(w) $100,000 in fiscal year 2018 is for a grant 
12.19 	to the city of Virginia to be used for grants to 
12.20 	city businesses for infrastructure revitalization 
12.21 	and code compliance. In making grants, the 
12.22 	city must give preference to projects that 
12.23 	promote economic development and that 
12.24 	include private dollar contributions.
12.25 	(x) $50,000 in fiscal year 2018 is from the 
12.26 	workforce development fund for a grant to 
12.27 	Fighting Chance for behavioral intervention 
12.28 	programs for at-risk youth.
12.29 	(y) $1,000,000 each year is for the central 
12.30 	Minnesota opportunity grant program 
12.31 	established under Minnesota Statutes, section 
12.32 	116J.9922. These appropriations are available 
12.33 	until June 30, 2022. Starting in fiscal year 
12.34 	2020, the base amount for this program shall 
12.35 	be $0.
13.1 	(z) $75,000 each year is for grants to the state's 
13.2 	recipient of funding from the Federal and State 
13.3 	Technology (FAST) Partnership Program to 
13.4 	strengthen the technological competitiveness 
13.5 	of small businesses.
13.6 	(aa) $900,000 each year is from the workforce 
13.7 	development fund and $461,000 in fiscal year 
13.8 	2018 and $1,461,000 in fiscal year 2019 are 
13.9 	for job training grants under Minnesota 
13.10 	Statutes, section 116L.42.
13.11 	(bb) $700,000 each year is from the 
13.12 	remediation fund for contaminated site cleanup 
13.13 	and development grants under Minnesota 
13.14 	Statutes, sections 116J.551 to 116J.558. This 
13.15 	appropriation is available until June 30, 2021.
13.16 	(cc) $350,000 in fiscal year 2018 is from the 
13.17 	energy fund account in the special revenue 
13.18 	fund established in Minnesota Statutes, section 
13.19 	116C.779, subdivision 1, for a grant to the 
13.20 	East Phillips Improvement Coalition to create 
13.21 	the East Phillips Neighborhood Institute 
13.22 	(EPNI) to expand culturally tailored resources 
13.23 	that address small business growth and job 
13.24 	creation. The grant shall fund the collaborative 
13.25 	work of Tamales y Bicicletas, Little Earth of 
13.26 	the United Tribes, a nonprofit serving East 
13.27 	Africans, and other coalition members towards 
13.28 	developing EPNI as a community space to 
13.29 	host activities including, but not limited to, 
13.30 	creation and expansion of small businesses, 
13.31 	culturally specific entrepreneurial activities, 
13.32 	indoor urban farming, job training, education, 
13.33 	and skills development. Eligible uses for grant 
13.34 	funds include, but are not limited to, planning 
13.35 	and start-up costs, staff and consultant costs, 
14.1 	building improvements, rent, supplies, utilities, 
14.2 	vehicles, marketing, and program activities. 
14.3 	The commissioner shall submit a report on 
14.4 	grant activities and quantifiable outcomes to 
14.5 	the committees of the house of representatives 
14.6 	and the senate with jurisdiction over economic 
14.7 	development by December 15, 2020. Funds 
14.8 	are available until June 30, 2020.
14.9 	(dd) $2,000,000 in fiscal year 2018 is from 
14.10 	the energy fund account in the special revenue 
14.11 	fund established in Minnesota Statutes, section 
14.12 	116C.779, subdivision 1, for a grant to the city 
14.13 	of Duluth to upgrade the municipal district 
14.14 	heating facility and systems, including 
14.15 	conversion of the distribution system along 
14.16 	Superior Street from steam with no condensate 
14.17 	return to closed-loop hot water. This 
14.18 	appropriation is for one or more of the project 
14.19 	elements or phases: predesign, design, 
14.20 	engineering, renovation, construction, 
14.21 	furnishing, and equipping the facility, systems, 
14.22 	and infrastructure.
14.23 	(ee) $5,000,000 in fiscal year 2018 is from the 
14.24 	energy fund account in the special revenue 
14.25 	fund established in Minnesota Statutes, section 
14.26 	116C.779, subdivision 1, for a grant to Dakota 
14.27 	County under Minnesota Statutes, sections 
14.28 	103G.511 and 103G.515, to design and 
14.29 	construct capital improvements to the 
14.30 	hydroelectric generating facility, including 
14.31 	replacement of obsolete turbines, at the 
14.32 	Byllesby Dam, located on the Cannon River.

14.33	Subd. 3.Workforce Development
 		31,829,000
		30,829,000

14.34	Appropriations by Fund
	
14.35	General
	14,412,000
	13,475,000
	
15.1
15.2	Workforce 
Development
	17,417,000
	17,417,000
	
15.3 	(a) Of the amounts appropriated in this 
15.4 	subdivision, no more than $773,000 in fiscal 
15.5 	year 2018 and $780,000 in fiscal year 2019 
15.6 	may be expended on full-time equivalent 
15.7 	positions, totaling no more than 16.1 full-time 
15.8 	equivalent positions in fiscal year 2018 and 
15.9 	16.1 full-time equivalent positions in fiscal 
15.10 	year 2019.
15.11 	(b) $600,000 each year is for performance 
15.12 	grants under Minnesota Statutes, section 
15.13 	116J.8747, to Twin Cities R!SE to provide 
15.14 	training to hard-to-train individuals.
15.15 	(c) $250,000 each year is for pilot programs 
15.16 	in the workforce service areas to combine 
15.17 	career and higher education advising.
15.18 	(d) $500,000 each year is for rural career 
15.19 	counseling coordinator positions in the 
15.20 	workforce service areas and for the purposes 
15.21 	specified in Minnesota Statutes, section 
15.22 	116L.667. The commissioner of employment 
15.23 	and economic development, in consultation 
15.24 	with local workforce investment boards and 
15.25 	local elected officials in each of the service 
15.26 	areas receiving funds, shall develop a method 
15.27 	of distributing funds to provide equitable 
15.28 	services across workforce service areas.
15.29 	(e) $1,000,000 each year is for grants to the 
15.30 	Construction Careers Foundation for the 
15.31 	construction career pathway initiative to 
15.32 	provide year-round educational and 
15.33 	experiential learning opportunities for teens 
15.34 	and young adults under the age of 21 that lead 
16.1 	to careers in the construction industry. Grant 
16.2 	funds must be used to:
16.3 	(1) increase construction industry exposure 
16.4 	activities for middle school and high school 
16.5 	youth, parents, and counselors to reach a more 
16.6 	diverse demographic and broader statewide 
16.7 	audience. This requirement includes, but is 
16.8 	not limited to, an expansion of programs to 
16.9 	provide experience in different crafts to youth 
16.10 	and young adults throughout the state;
16.11 	(2) increase the number of high schools in 
16.12 	Minnesota offering construction classes during 
16.13 	the academic year that utilize a multicraft 
16.14 	curriculum;
16.15 	(3) increase the number of summer internship 
16.16 	opportunities;
16.17 	(4) enhance activities to support graduating 
16.18 	seniors in their efforts to obtain employment 
16.19 	in the construction industry;
16.20 	(5) increase the number of young adults 
16.21 	employed in the construction industry and 
16.22 	ensure that they reflect Minnesota's diverse 
16.23 	workforce; and
16.24 	(6) enhance an industrywide marketing 
16.25 	campaign targeted to youth and young adults 
16.26 	about the depth and breadth of careers within 
16.27 	the construction industry.
16.28 	Programs and services supported by grant 
16.29 	funds must give priority to individuals and 
16.30 	groups that are economically disadvantaged 
16.31 	or historically underrepresented in the 
16.32 	construction industry, including but not limited 
16.33 	to women, veterans, and members of minority 
16.34 	and immigrant groups.
17.1 	(f) $5,000,000 each year is from the general 
17.2 	fund and $4,604,000 each year is from the 
17.3 	workforce development fund for the Pathways 
17.4 	to Prosperity adult workforce development 
17.5 	competitive grant program. Of this amount, 
17.6 	up to three percent is for administration and 
17.7 	monitoring of the program. When awarding 
17.8 	grants under this paragraph, the commissioner 
17.9 	of employment and economic development 
17.10 	may give preference to any previous grantee 
17.11 	with demonstrated success in job training and 
17.12 	placement for hard-to-train individuals. Grants 
17.13 	may be used for:
17.14 	(1) grants under the FastTRAC - Adult Career 
17.15 	Pathways Program;
17.16 	(2) competitive grants to organizations 
17.17 	providing services to relieve economic 
17.18 	disparities in the Southeast Asian community 
17.19 	through workforce recruitment, development, 
17.20 	job creation, assistance of smaller 
17.21 	organizations to increase capacity, and 
17.22 	outreach;
17.23 	(3) the high-wage, high-demand, 
17.24 	nontraditional jobs grant program under 
17.25 	Minnesota Statutes, section 116L.99;
17.26 	(4) the youth-at-work competitive grant 
17.27 	program under Minnesota Statutes, section 
17.28 	116L.562, subdivision 3;
17.29 	(5) the Minnesota emerging entrepreneur 
17.30 	program under Minnesota Statutes, section 
17.31 	116M.18;
17.32 	(6) the capacity building grant program to 
17.33 	assist nonprofit organizations offering or 
18.1 	seeking to offer workforce development and 
18.2 	economic development programming; and
18.3 	(7) competitive grants to organizations that 
18.4 	provide support services for individuals, such 
18.5 	as job training, employment preparation, 
18.6 	internships, job assistance to fathers, financial 
18.7 	literacy, academic and behavioral interventions 
18.8 	for low-performing students, and youth 
18.9 	intervention. Grants made under this clause 
18.10 	must focus on low-income communities, 
18.11 	young adults from families with a history of 
18.12 	intergenerational poverty, and communities 
18.13 	of color.
18.14 	(g) $250,000 each year is for grants to YWCA 
18.15 	St. Paul to provide job training services and 
18.16 	workforce development programs and 
18.17 	services, including job skills training and 
18.18 	counseling.
18.19 	(h) $1,000,000 each year is for grants to 
18.20 	EMERGE Community Development, in 
18.21 	collaboration with community partners, for 
18.22 	services targeting Minnesota communities 
18.23 	with the highest concentrations of African and 
18.24 	African-American joblessness, based on the 
18.25 	most recent census tract data, to provide 
18.26 	employment readiness training, credentialed 
18.27 	training placement, job placement and 
18.28 	retention services, supportive services for 
18.29 	hard-to-employ individuals, and a general 
18.30 	education development fast track and adult 
18.31 	diploma program.
18.32 	(i) $1,000,000 each year is for grants to the 
18.33 	Minneapolis Foundation for a strategic 
18.34 	intervention program designed to target and 
19.1 	connect program participants to meaningful, 
19.2 	sustainable living-wage employment.
19.3 	(j) $750,000 each year is for grants to Latino 
19.4 	Communities United in Service (CLUES) to 
19.5 	expand culturally tailored programs that 
19.6 	address employment and education skill gaps 
19.7 	for working parents and underserved youth by 
19.8 	providing new job skills training to stimulate 
19.9 	higher wages for low-income people, family 
19.10 	support systems designed to reduce 
19.11 	intergenerational poverty, and youth 
19.12 	programming to promote educational 
19.13 	advancement and career pathways. At least 
19.14 	50 percent of this amount must be used for 
19.15 	programming targeted at greater Minnesota.
19.16 	(k) $250,000 each year is for grants to the 
19.17 	American Indian Opportunities and 
19.18 	Industrialization Center, in collaboration with 
19.19 	the Northwest Indian Community 
19.20 	Development Center, to reduce academic 
19.21 	disparities for American Indian students and 
19.22 	adults. The grant funds may be used to 
19.23 	provide:
19.24 	(1) student tutoring and testing support 
19.25 	services;
19.26 	(2) training in information technology;
19.27 	(3) assistance in obtaining a GED;
19.28 	(4) remedial training leading to enrollment in 
19.29 	a postsecondary higher education institution;
19.30 	(5) real-time work experience in information 
19.31 	technology fields; and
19.32 	(6) contextualized adult basic education.
20.1 	After notification to the legislature, the 
20.2 	commissioner may transfer this appropriation 
20.3 	to the commissioner of education.
20.4 	(l) $600,000 each year is for grants to Ujamaa 
20.5 	Place for job training, employment 
20.6 	preparation, internships, education, training 
20.7 	in the construction trades, housing, and 
20.8 	organizational capacity building.
20.9 	(m) $375,000 each year is for grants to the 
20.10 	YWCA of Minneapolis to provide 
20.11 	economically challenged individuals the job 
20.12 	skills training, career counseling, and job 
20.13 	placement assistance necessary to secure a 
20.14 	child development associate credential and to 
20.15 	have a career path in early childhood 
20.16 	education.
20.17 	(n) $250,000 in fiscal year 2018 is for a grant 
20.18 	to the Bois Forte Tribal Employment Rights 
20.19 	Office for an American Indian workforce 
20.20 	development training pilot project.
20.21 	(o) $750,000 each year is for grants to Summit 
20.22 	Academy OIC to expand their contextualized 
20.23 	GED and employment placement program.
20.24 	(p) $600,000 in fiscal year 2018 and $750,000 
20.25 	in fiscal year 2019 are for grants to Goodwill 
20.26 	Easter Seals Minnesota and its partners. The 
20.27 	grant shall be used to continue the FATHER 
20.28 	Project in Rochester, Park Rapids, St. Cloud, 
20.29 	Minneapolis, and the surrounding areas to 
20.30 	assist fathers in overcoming barriers that 
20.31 	prevent fathers from supporting their children 
20.32 	economically and emotionally.
20.33 	(q) $200,000 each year is for displaced 
20.34 	homemaker programs under Minnesota 
21.1 	Statutes, section 116L.96. The commissioner, 
21.2 	through the adult career pathways program, 
21.3 	shall distribute the funds to existing nonprofit 
21.4 	and state displaced homemaker programs. In 
21.5 	fiscal year 2020 and beyond, the base amount 
21.6 	is $0.
21.7 	(r) $190,000 in fiscal year 2018 is for transfer 
21.8 	to the Cook County Higher Education Board 
21.9 	to provide educational programming and 
21.10 	academic support services to remote regions 
21.11 	in northeastern Minnesota. This amount is in 
21.12 	addition to other funds previously transferred 
21.13 	by the commissioner.
21.14 	(s)(1) $150,000 in fiscal year 2018 is for a 
21.15 	grant to Anoka County to develop and 
21.16 	implement a pilot program to increase 
21.17 	competitive employment opportunities for 
21.18 	transition-age youth ages 18 to 21.
21.19 	(2) The competitive employment for 
21.20 	transition-age youth pilot program shall 
21.21 	include career guidance components, including 
21.22 	health and life skills, to encourage, train, and 
21.23 	assist transition-age youth in job-seeking 
21.24 	skills, workplace orientation, and job site 
21.25 	knowledge.
21.26 	(3) In operating the pilot program, Anoka 
21.27 	County shall collaborate with schools, 
21.28 	disability providers, jobs and training 
21.29 	organizations, vocational rehabilitation 
21.30 	providers, and employers to build upon 
21.31 	opportunities and services, to prepare 
21.32 	transition-age youth for competitive 
21.33 	employment, and to enhance employer 
21.34 	connections that lead to employment for the 
21.35 	individuals served.
22.1 	(4) Grant funds may be used to create an 
22.2 	on-the-job training incentive to encourage 
22.3 	employers to hire and train qualifying 
22.4 	individuals. A participating employer may 
22.5 	receive up to 50 percent of the wages paid to 
22.6 	the employee as a cost reimbursement for 
22.7 	on-the-job training provided.
22.8 	(t) $497,000 in fiscal year 2018 is for grants 
22.9 	to Twin Cities R!SE, in collaboration with 
22.10 	Metro Transit and Hennepin Technical College 
22.11 	for the Metro Transit technician training 
22.12 	program. Funds are available until June 30, 
22.13 	2020.
22.14 	(u) $200,000 each year is for grants to the 
22.15 	Minnesota Alliance of Boys and Girls Clubs 
22.16 	to administer a statewide project of youth job 
22.17 	skills and career development. This project, 
22.18 	which may have career guidance components 
22.19 	including health and life skills, is designed to 
22.20 	encourage, train, and assist youth in early 
22.21 	access to education and job-seeking skills, 
22.22 	work-based learning experience including 
22.23 	career pathways in STEM learning, career 
22.24 	exploration and matching, and first job 
22.25 	placement through local community 
22.26 	partnerships and on-site job opportunities. This 
22.27 	grant requires a 25 percent match from 
22.28 	nonstate resources. In fiscal year 2020 and 
22.29 	beyond, the base amount is $0.
22.30 	(v) $150,000 each year is from the workforce 
22.31 	development fund for grants to the YWCA of 
22.32 	Minneapolis to provide economically 
22.33 	challenged individuals the job skills training, 
22.34 	career counseling, and job placement 
22.35 	assistance necessary to secure a child 
23.1 	development associate credential and to have 
23.2 	a career path in early childhood education.
23.3 	(w) $4,050,000 each year is from the 
23.4 	workforce development fund for the 
23.5 	Minnesota youth program under Minnesota 
23.6 	Statutes, sections 116L.56 and 116L.561, to 
23.7 	provide employment and career advising to 
23.8 	youth, including career guidance in secondary 
23.9 	schools, to address the youth career advising 
23.10 	deficiency, to carry out activities outlined in 
23.11 	Minnesota Statutes, section 116L.561, to 
23.12 	provide support services, and to provide work 
23.13 	experience to youth in the workforce service 
23.14 	areas. The funds in this paragraph may be used 
23.15 	for expansion of the pilot program combining 
23.16 	career and higher education advising in Laws 
23.17 	2013, chapter 85, article 3, section 27. 
23.18 	Activities in workforce services areas under 
23.19 	this paragraph may serve all youth up to age 
23.20 	24.
23.21 	(x) $1,000,000 each year is from the 
23.22 	workforce development fund for the 
23.23 	youthbuild program under Minnesota Statutes, 
23.24 	sections 116L.361 to 116L.366.
23.25 	(y) $450,000 each year is from the workforce 
23.26 	development fund for grants to Minnesota 
23.27 	Diversified Industries, Inc., to provide 
23.28 	progressive development and employment 
23.29 	opportunities for people with disabilities.
23.30 	(z) $3,348,000 each year is from the workforce 
23.31 	development fund for the "Youth at Work" 
23.32 	youth workforce development competitive 
23.33 	grant program. Of this amount, up to five 
23.34 	percent is for administration and monitoring 
23.35 	of the youth workforce development 
24.1 	competitive grant program. All grant awards 
24.2 	shall be for two consecutive years. Grants shall 
24.3 	be awarded in the first year.
24.4 	(aa) $500,000 each year is from the workforce 
24.5 	development fund for the Opportunities 
24.6 	Industrialization Center programs.
24.7 	(bb) $750,000 each year is from the workforce 
24.8 	development fund for grants to the Minnesota 
24.9 	Alliance of Boys and Girls Clubs to administer 
24.10 	a statewide project of youth job skills 
24.11 	development. This project, which may have 
24.12 	career guidance components, including health 
24.13 	and life skills, is to encourage, train, and assist 
24.14 	youth in job-seeking skills, workplace 
24.15 	orientation, and job-site knowledge through 
24.16 	coaching. This grant requires a 25 percent 
24.17 	match from nonstate resources.
24.18 	(cc) $215,000 each year is from the workforce 
24.19 	development fund for grants to Big Brothers, 
24.20 	Big Sisters of the Greater Twin Cities for 
24.21 	workforce readiness, employment exploration, 
24.22 	and skills development for youth ages 12 to 
24.23 	21. The grant must serve youth in the Twin 
24.24 	Cities, Central Minnesota, and Southern 
24.25 	Minnesota Big Brothers, Big Sisters chapters.
24.26 	(dd) $1,350,000 each year is from the 
24.27 	workforce development fund for grants to the 
24.28 	Minnesota High Tech Association to support 
24.29 	SciTechsperience, a program that supports 
24.30 	science, technology, engineering, and math 
24.31 	(STEM) internship opportunities for two- and 
24.32 	four-year college students and graduate 
24.33 	students in their field of study. The internship 
24.34 	opportunities must match students with paid 
24.35 	internships within STEM disciplines at small, 
25.1 	for-profit companies located in Minnesota, 
25.2 	having fewer than 250 employees worldwide. 
25.3 	At least 300 students must be matched in the 
25.4 	first year and at least 350 students must be 
25.5 	matched in the second year. No more than 15 
25.6 	percent of the hires may be graduate students. 
25.7 	Selected hiring companies shall receive from 
25.8 	the grant 50 percent of the wages paid to the 
25.9 	intern, capped at $2,500 per intern. The 
25.10 	program must work toward increasing the 
25.11 	participation among women or other 
25.12 	underserved populations.
25.13 	(ee) $500,000 each year is from the workforce 
25.14 	development fund for grants to Resource, Inc. 
25.15 	to provide low-income individuals career 
25.16 	education and job skills training that are fully 
25.17 	integrated with chemical and mental health 
25.18 	services.
25.19 	(ff) $500,000 each year is from the workforce 
25.20 	development fund for rural career counseling 
25.21 	coordinator positions in the workforce service 
25.22 	areas and for the purposes specified in 
25.23 	Minnesota Statutes, section 116L.667. The 
25.24 	commissioner of employment and economic 
25.25 	development, in consultation with local 
25.26 	workforce investment boards and local elected 
25.27 	officials in each of the service areas receiving 
25.28 	funds, shall develop a method of distributing 
25.29 	funds to provide equitable services across 
25.30 	workforce service areas.

25.31	Subd. 4.General Support Services
 		2,670,000
		2,670,000

25.32	Appropriations by Fund
	
25.33	General Fund
	2,653,000
	2,653,000
	
25.34
25.35	Workforce 
Development
	17,000
	17,000
	
26.1 	(a) Of the amounts appropriated in this 
26.2 	subdivision, no more than $1,027,000 in fiscal 
26.3 	year 2018 and $1,027,000 in fiscal year 2019 
26.4 	may be expended on full-time equivalent 
26.5 	positions, totaling no more than 9.7 full-time 
26.6 	equivalent positions in fiscal year 2018 and 
26.7 	9.7 full-time equivalent positions in fiscal year 
26.8 	2019.
26.9 	(b) $1,269,000 each year is for operating the 
26.10 	Olmstead Implementation Office.

26.11	Subd. 5.Minnesota Trade Office
 		1,762,000
		1,762,000
	
26.12 	(a) Of the amounts appropriated in this 
26.13 	subdivision, no more than $1,319,000 in fiscal 
26.14 	year 2018 and $1,332,000 in fiscal year 2019 
26.15 	may be expended on full-time equivalent 
26.16 	positions, totaling no more than 12.9 full-time 
26.17 	equivalent positions in fiscal year 2018 and 
26.18 	12.9 full-time equivalent positions in fiscal 
26.19 	year 2019.
26.20 	(b) $300,000 each year is for the STEP grants 
26.21 	in Minnesota Statutes, section 116J.979.

26.22	Subd. 6.Vocational Rehabilitation
 		30,191,000
		30,191,000

26.23	Appropriations by Fund
	
26.24	General
	22,361,000
	22,361,000
	
26.25
26.26	Workforce 
Development
	7,830,000
	7,830,000
	
26.27 	(a) Of the amounts appropriated in this 
26.28 	subdivision, no more than $524,000 in fiscal 
26.29 	year 2018 and $524,000 in fiscal year 2019 
26.30 	may be expended on full-time equivalent 
26.31 	positions, totaling no more than 5.1 full-time 
26.32 	equivalent positions in fiscal year 2018 and 
26.33 	5.1 full-time equivalent positions in fiscal year 
26.34 	2019.
27.1 	(b) $10,800,000 each year is for the state's 
27.2 	vocational rehabilitation program under 
27.3 	Minnesota Statutes, chapter 268A.
27.4 	(c) $3,011,000 each year is for grants to 
27.5 	centers for independent living under 
27.6 	Minnesota Statutes, section 268A.11.
27.7 	(d) $2,555,000 each year is for grants to 
27.8 	programs that provide employment support 
27.9 	services to persons with mental illness under 
27.10 	Minnesota Statutes, sections 268A.13 and 
27.11 	268A.14.
27.12 	(e) $5,995,000 each year from the general fund 
27.13 	and $6,830,000 each year from the workforce 
27.14 	development fund are for extended 
27.15 	employment services for persons with severe 
27.16 	disabilities under Minnesota Statutes, section 
27.17 	268A.15.
27.18 	(f) $1,000,000 each year is from the workforce 
27.19 	development fund for grants under Minnesota 
27.20 	Statutes, section 268A.16, for employment 
27.21 	services for persons, including transition-age 
27.22 	youth, who are deaf, deafblind, or 
27.23 	hard-of-hearing. If the amount in the first year 
27.24 	is insufficient, the amount in the second year 
27.25 	is available in the first year.

27.26	Subd. 7.Competitive Grant Limitations
 					
27.27 	An organization that receives a direct 
27.28 	appropriation under this section is not eligible 
27.29 	to participate in competitive grant programs 
27.30 	under this section, either directly or by 
27.31 	receiving funds from a third party that received 
27.32 	a competitive grant under this section, during 
27.33 	the fiscal years in which the direct 
27.34 	appropriations are received.

28.1	Subd. 8.Services for the Blind
 		6,425,000
		6,425,000
	
28.2 	Of the amounts appropriated in this 
28.3 	subdivision, no more than $3,209,000 in fiscal 
28.4 	year 2018 and $3,224,000 in fiscal year 2019 
28.5 	may be expended on full-time equivalent 
28.6 	positions, totaling no more than 45 full-time 
28.7 	equivalent positions in fiscal year 2018 and 
28.8 	45 full-time equivalent positions in fiscal year 
28.9 	2019.

28.10	Subd. 9.Broadband Development
 		7,250,000
		250,000
	
28.11 	(a) Of the amounts appropriated in this 
28.12 	subdivision, no more than $174,000 in fiscal 
28.13 	year 2018 and $177,000 in fiscal year 2019 
28.14 	may be expended on full-time equivalent 
28.15 	positions, totaling no more than 1.5 full-time 
28.16 	equivalent positions in fiscal year 2018 and 
28.17 	1.5 full-time equivalent positions in fiscal year 
28.18 	2019.
28.19 	(b) $250,000 each year is for the Broadband 
28.20 	Development Office.
28.21 	(c) $7,000,000 in fiscal year 2018 is for 
28.22 	deposit in the border-to-border broadband fund 
28.23 	account in the special revenue fund established 
28.24 	under Minnesota Statutes, section 116J.396.

28.25	Sec. 3. HOUSING FINANCE AGENCY

28.26	Subdivision 1.Total Appropriation
 	$
	56,798,000
	$
	39,873,000
	
28.27 	The amounts that may be spent for each 
28.28 	purpose are specified in the following 
28.29 	subdivisions.
28.30 	Unless otherwise specified, this appropriation 
28.31 	is for transfer to the housing development fund 
28.32 	for the programs specified in this section. 
29.1 	Except as otherwise indicated, this transfer is 
29.2 	part of the agency's permanent budget base.

29.3	Subd. 2.Challenge Program
 		18,925,000
		2,000,000
	
29.4 	(a) Beginning in fiscal year 2020, the base 
29.5 	amount for the challenge program is 
29.6 	$11,717,000.
29.7 	(b) This appropriation is for the economic 
29.8 	development and housing challenge program 
29.9 	under Minnesota Statutes, section 462A.33. 
29.10 	The agency must continue to strengthen its 
29.11 	efforts to address the disparity rate between 
29.12 	white households and indigenous American 
29.13 	Indians and communities of color. Of this 
29.14 	amount, $1,208,000 in fiscal year 2018 shall 
29.15 	be made available during the first 11 months 
29.16 	of the fiscal year exclusively for housing 
29.17 	projects for American Indians. Any funds not 
29.18 	committed to housing projects for American 
29.19 	Indians in the first 11 months of fiscal year 
29.20 	2018 shall be available for any eligible activity 
29.21 	under Minnesota Statutes, section 462A.33. 
29.22 	In fiscal year 2020 and beyond, the base 
29.23 	amount is $1,208,000.
29.24 	(c) $4,000,000 in fiscal year 2018 is for the 
29.25 	purposes of the workforce housing 
29.26 	development program under Minnesota 
29.27 	Statutes, section 462A.39. Notwithstanding 
29.28 	article 11, section 13, the commissioner of 
29.29 	housing finance may hire staff sufficient for 
29.30 	the purposes of this paragraph. In fiscal year 
29.31 	2020 and beyond, the base amount is $0.
29.32 	(d) $250,000 each year is for grants to 
29.33 	programs under Minnesota Statutes, section 
29.34 	462A.204, subdivision 8. In fiscal year 2020 
29.35 	and beyond, the base amount is $250,000.
30.1 	(e) $1,750,000 each year is to the housing trust 
30.2 	fund for the rental assistance to highly mobile 
30.3 	students program under Minnesota Statutes, 
30.4 	section 462A.201, subdivision 2, paragraph 
30.5 	(a), clause (4). In fiscal year 2020 and beyond, 
30.6 	the base amount is $1,750,000.

30.7	Subd. 3.Housing Trust Fund
 		11,471,000
		11,471,000
	
30.8 	This appropriation is for deposit in the housing 
30.9 	fund account created under Minnesota 
30.10 	Statutes, section 462A.201, and may be used 
30.11 	for the purposes provided in that section.

30.12	Subd. 4.Rental Assistance for Mentally Ill
 		4,088,000
		4,088,000
	
30.13 	This appropriation is for the rental housing 
30.14 	assistance program under Minnesota Statutes, 
30.15 	section 462A.2097. Among comparable 
30.16 	proposals, the agency shall prioritize those 
30.17 	proposals that target, in part, eligible persons 
30.18 	who desire to move to more integrated, 
30.19 	community-based settings.

30.20	Subd. 5.Family Homeless Prevention
 		8,519,000
		8,519,000
	
30.21 	This appropriation is for the family homeless 
30.22 	prevention and assistance programs under 
30.23 	Minnesota Statutes, section 462A.204.

30.24	Subd. 6.Home Ownership Assistance Fund
 		885,000
		885,000
	
30.25 	This appropriation is for the home ownership 
30.26 	assistance program under Minnesota Statutes, 
30.27 	section 462A.21, subdivision 8. The agency 
30.28 	shall continue to strengthen its efforts to 
30.29 	address the disparity gap in the 
30.30 	homeownership rate between white 
30.31 	households and indigenous American Indians 
30.32 	and communities of color.

30.33	Subd. 7.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
31.1 	(a) This appropriation is for the affordable 
31.2 	rental investment fund program under 
31.3 	Minnesota Statutes, section 462A.21, 
31.4 	subdivision 8b, to finance the acquisition, 
31.5 	rehabilitation, and debt restructuring of 
31.6 	federally assisted rental property and for 
31.7 	making equity take-out loans under Minnesota 
31.8 	Statutes, section 462A.05, subdivision 39.
31.9 	(b) The owner of federally assisted rental 
31.10 	property must agree to participate in the 
31.11 	applicable federally assisted housing program 
31.12 	and to extend any existing low-income 
31.13 	affordability restrictions on the housing for 
31.14 	the maximum term permitted. The owner must 
31.15 	also enter into an agreement that gives local 
31.16 	units of government, housing and 
31.17 	redevelopment authorities, and nonprofit 
31.18 	housing organizations the right of first refusal 
31.19 	if the rental property is offered for sale. 
31.20 	Priority must be given among comparable 
31.21 	federally assisted rental properties to 
31.22 	properties with the longest remaining term 
31.23 	under an agreement for federal assistance. 
31.24 	Priority must also be given among comparable 
31.25 	rental housing developments to developments 
31.26 	that are or will be owned by local government 
31.27 	units, a housing and redevelopment authority, 
31.28 	or a nonprofit housing organization.
31.29 	(c) The appropriation also may be used to 
31.30 	finance the acquisition, rehabilitation, and debt 
31.31 	restructuring of existing supportive housing 
31.32 	properties. For purposes of this subdivision, 
31.33 	"supportive housing" means affordable rental 
31.34 	housing with links to services necessary for 
32.1 	individuals, youth, and families with children 
32.2 	to maintain housing stability.

32.3	Subd. 8.Housing Rehabilitation
 		6,515,000
		6,515,000
	
32.4 	This appropriation is for the housing 
32.5 	rehabilitation program under Minnesota 
32.6 	Statutes, section 462A.05, subdivision 14. Of 
32.7 	this amount, $2,772,000 each year is for the 
32.8 	rehabilitation of owner-occupied housing, 
32.9 	$3,743,000 each year is for the rehabilitation 
32.10 	of eligible rental housing, and $1,000,000 in 
32.11 	fiscal year 2018 is prioritized to complete 
32.12 	interim controls or lead abatement measures 
32.13 	to reduce the risk of lead exposure in rental 
32.14 	housing statewide. Any funds not committed 
32.15 	in the first 11 months of 2018 shall be 
32.16 	available for any eligible activity under this 
32.17 	section. In administering a rehabilitation 
32.18 	program for rental housing, the agency may 
32.19 	apply the processes and priorities adopted for 
32.20 	administration of the economic development 
32.21 	and housing challenge program under 
32.22 	Minnesota Statutes, section 462A.33.

32.23
32.24	Subd. 9.Homeownership Education, Counseling, 
and Training
 		857,000
		857,000
	
32.25 	This appropriation is for the homeownership 
32.26 	education, counseling, and training program 
32.27 	under Minnesota Statutes, section 462A.209. 
32.28 	Priority may be given to funding programs 
32.29 	that are aimed at culturally specific groups 
32.30 	who are providing services to members of their 
32.31 	communities.

32.32	Subd. 10.Capacity Building Grants
 		875,000
		875,000
	
32.33 	This appropriation is for nonprofit capacity 
32.34 	building grants under Minnesota Statutes, 
33.1 	section 462A.21, subdivision 3b. Of this 
33.2 	amount:
33.3 	(1) $125,000 each year is for support of the 
33.4 	Homeless Management Information System 
33.5 	(HMIS); and
33.6 	(2) $500,000 each year is for grants to Build 
33.7 	Wealth MN to provide a family stabilization 
33.8 	plan program including program outreach, 
33.9 	financial literacy education, and budget and 
33.10 	debt counseling.

33.11
33.12	Sec. 4. DEPARTMENT OF LABOR AND 
INDUSTRY

33.13	Subdivision 1.Total Appropriation
 	$
	27,934,000
	$
	27,934,000

33.14	Appropriations by Fund
	
33.15		2018
	2019
	
33.16	General
	1,652,000
	1,652,000
	
33.17
33.18	Workers' 
Compensation
	24,975,000
	24,975,000
	
33.19
33.20	Workforce 
Development
	1,307,000
	1,307,000
	
33.21 	(a) The amounts that may be spent for each 
33.22 	purpose are specified in the following 
33.23 	subdivisions.
33.24 	(b) Notwithstanding Minnesota Statutes, 
33.25 	section 16A.285, the commissioner of labor 
33.26 	and industry must not allow transfers of 
33.27 	money appropriated in this section between 
33.28 	divisions or programs of the Department of 
33.29 	Labor and Industry.
33.30 	(c) Notwithstanding Minnesota Statutes, 
33.31 	section 16B.37, subdivision 4, the 
33.32 	commissioner of labor and industry must not 
33.33 	allow billing between divisions or programs 
33.34 	of amounts appropriated within the 
34.1 	Department of Labor and Industry, or 
34.2 	otherwise use any "Internal Billing 
34.3 	Expenditures" of amounts appropriated.
34.4 	(d) Notwithstanding Minnesota Statutes, 
34.5 	sections 16B.37, subdivision 4, and 471.59, 
34.6 	except for work performed by MN.IT under 
34.7 	Minnesota Statutes, chapter 16E, the 
34.8 	commissioner of labor and industry must not 
34.9 	allow billing or transfers between other 
34.10 	executive branch agencies or departments and 
34.11 	the Department of Labor and Industry.

34.12	Subd. 2.Workers' Compensation
 		14,782,000
		14,782,000
	
34.13 	(a) This appropriation is from the workers' 
34.14 	compensation fund. Of the amount 
34.15 	appropriated in this subdivision, and any fees 
34.16 	collected, no more than $10,791,000 in fiscal 
34.17 	year 2018 and $10,797,000 in fiscal year 2019 
34.18 	may be expended on full-time equivalent 
34.19 	positions, totaling no more than 109.6 
34.20 	full-time equivalent positions in fiscal year 
34.21 	2018 and 109.6 full-time equivalent positions 
34.22 	in fiscal year 2019.
34.23 	(b)(1) $3,000,000 each year is for workers' 
34.24 	compensation system upgrades. This amount 
34.25 	is available until June 30, 2021. The base 
34.26 	amount for fiscal year 2020 and beyond is $0.
34.27 	(2) This appropriation includes funds for 
34.28 	information technology project services and 
34.29 	support subject to the provisions of Minnesota 
34.30 	Statutes, section 16E.0466. Any ongoing 
34.31 	information technology costs must be 
34.32 	incorporated into the service level agreement 
34.33 	and must be paid to the Office of MN.IT 
34.34 	Services by the commissioner of labor and 
35.1 	industry under the rates and mechanism 
35.2 	specified in that agreement.

35.3	Subd. 3.Labor Standards and Apprenticeship
 		2,759,000
		2,759,000

35.4	Appropriations by Fund
	
35.5	General
	1,452,000
	1,452,000
	
35.6
35.7	Workforce 
Development
	1,307,000
	1,307,000
	
35.8 	(a) Of the amounts appropriated in this 
35.9 	subdivision, and any fees collected, no more 
35.10 	than $2,304,000 in fiscal year 2018 and 
35.11 	$2,238,000 in fiscal year 2019 may be 
35.12 	expended on full-time equivalent positions, 
35.13 	totaling no more than 21.7 full-time equivalent 
35.14 	positions in fiscal year 2018 and 19.7 full-time 
35.15 	equivalent positions in fiscal year 2019.
35.16 	(b) $1,202,000 each year is from the general 
35.17 	fund for the labor standards and apprenticeship 
35.18 	program.
35.19 	(c) $125,000 each year is from the general 
35.20 	fund for wage theft prevention under the 
35.21 	division of labor standards.
35.22 	(d) $1,029,000 each year is from the 
35.23 	workforce development fund for the 
35.24 	apprenticeship program under Minnesota 
35.25 	Statutes, chapter 178.
35.26 	(e) $100,000 each year is from the workforce 
35.27 	development fund for labor education and 
35.28 	advancement program grants under Minnesota 
35.29 	Statutes, section 178.11, to expand and 
35.30 	promote registered apprenticeship training for 
35.31 	minorities and women.
35.32 	(f) $150,000 each year is from the workforce 
35.33 	development fund for prevailing wage 
35.34 	enforcement.

36.1	Subd. 4.Workplace Safety
 		4,154,000
		4,154,000
	
36.2 	This appropriation is from the workers' 
36.3 	compensation fund. Of the amount 
36.4 	appropriated, and any fees collected, not more 
36.5 	than $3,970,000 in fiscal year 2018 and 
36.6 	$3,970,000 in fiscal year 2019 may be 
36.7 	expended on full-time equivalent positions, 
36.8 	totaling no more than 82.6 full-time equivalent 
36.9 	positions in fiscal year 2018 and 82.6 full-time 
36.10 	equivalent positions in fiscal year 2019.

36.11	Subd. 5.General Support
 		6,239,000
		6,239,000

36.12	Appropriations by Fund
	
36.13	General Fund
	200,000
	200,000
	
36.14
36.15	Workers' 
Compensation
	6,039,000
	6,039,000
	
36.16 	(a) Of the amount appropriated in this 
36.17 	subdivision, and any fees collected, no more 
36.18 	than $5,875,000 in fiscal year 2018 and 
36.19 	$6,039,000 in fiscal year 2019 may be 
36.20 	expended on full-time equivalent positions, 
36.21 	totaling no more than 57.1 full-time equivalent 
36.22 	positions in fiscal year 2018 and 57.1 full-time 
36.23 	equivalent positions in fiscal year 2019.
36.24 	(b) Except as provided in paragraph (c), this 
36.25 	appropriation is from the workers' 
36.26 	compensation fund.
36.27 	(c) $200,000 each year is from the general 
36.28 	fund for grants to the Construction Careers 
36.29 	Foundation Inc. for the Helmets to Hardhats 
36.30 	Minnesota Initiative. Grant funds must be used 
36.31 	to recruit, retain, assist, and support National 
36.32 	Guard, reserve, active duty military members, 
36.33 	and veteran's participation into apprenticeship 
36.34 	programs registered with the Department of 
36.35 	Labor and Industry and connect them with 
37.1 	career training and employment in the building 
37.2 	and construction industry. The recruitment, 
37.3 	selection, employment, and training must be 
37.4 	without discrimination due to race, color, 
37.5 	creed, religion, national origin, sex, sexual 
37.6 	orientation, marital status, physical or mental 
37.7 	disability, receipt of public assistance, or age.

37.8	Sec. 5. BUREAU OF MEDIATION SERVICES
 	$
	1,853,000
	$
	1,853,000
	
37.9 	(a) Notwithstanding Minnesota Statutes, 
37.10 	section 16A.285, the commissioner of 
37.11 	mediation services must not allow transfers 
37.12 	of money appropriated in this section between 
37.13 	divisions or programs of the Bureau of 
37.14 	Mediation Services.
37.15 	(b) Notwithstanding Minnesota Statutes, 
37.16 	section 16B.37, subdivision 4, the 
37.17 	commissioner of mediation services must not 
37.18 	allow billing between divisions or programs 
37.19 	within the Bureau of Mediation Services, or 
37.20 	otherwise use any "Internal Billing 
37.21 	Expenditures."
37.22 	(c) Notwithstanding Minnesota Statutes, 
37.23 	section 16B.37, subdivision 4, and Minnesota 
37.24 	Statutes, section 471.59, except for work 
37.25 	performed by MN.IT under Minnesota 
37.26 	Statutes, chapter 16E, the commissioner of 
37.27 	mediation services must not allow billing or 
37.28 	transfers between other executive branch 
37.29 	agencies or departments and the Bureau of 
37.30 	Mediation Services.
37.31 	(d) Of the amounts appropriated in this 
37.32 	section, no more than $1,639,000 in fiscal year 
37.33 	2018 and $1,639,000 in fiscal year 2019 may 
37.34 	be expended on full-time equivalent positions, 
38.1 	totaling no more than 15.1 full-time equivalent 
38.2 	positions in fiscal year 2018 and 15.1 full-time 
38.3 	equivalent positions in fiscal year 2019.
38.4 	(e) $68,0000 each year is from the general 
38.5 	fund for grants to area labor management 
38.6 	committees. Grants may be awarded for a 
38.7 	12-month period beginning July 1 each year. 
38.8 	Any unencumbered balance remaining at the 
38.9 	end of the first year does not cancel but is 
38.10 	available for the second year.

38.11
38.12	Sec. 6. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,913,000
	$
	1,913,000
	
38.13 	(a) This appropriation is from the workers' 
38.14 	compensation fund.
38.15 	(b) Of the amounts appropriated in this 
38.16 	section, no more than $1,683,000 in fiscal year 
38.17 	2018 and $1,683,000 in fiscal year 2019 may 
38.18 	be expended on full-time equivalent positions, 
38.19 	totaling no more than 12 full-time equivalent 
38.20 	positions in fiscal year 2018 and 12 full-time 
38.21 	equivalent positions in fiscal year 2019.

38.22	Sec. 7. DEPARTMENT OF COMMERCE

38.23	Subdivision 1.Total Appropriation
 	$
	30,795,000
	$
	30,601,000

38.24	Appropriations by Fund
	
38.25	General
	27,032,000
	26,838,000
	
38.26	Special Revenue
	1,960,000
	1,960,000
	
38.27	Petroleum Tank
	1,052,000
	1,052,000
	
38.28
38.29	Workers' 
Compensation
	751,000
	751,000
	
38.30 	(a) The amounts that may be spent for each 
38.31 	purpose are specified in the following 
38.32 	subdivisions.
39.1 	(b) Notwithstanding Minnesota Statutes, 
39.2 	section 16A.285, the commissioner of 
39.3 	commerce must not allow transfers of money 
39.4 	appropriated in this section between divisions 
39.5 	or programs of the Department of Commerce.
39.6 	(c) Notwithstanding Minnesota Statutes, 
39.7 	section 16B.37, subdivision 4, the 
39.8 	commissioner of commerce must not allow 
39.9 	billing between divisions or programs within 
39.10 	the Department of Commerce, or otherwise 
39.11 	use any "Internal Billing Expenditures."
39.12 	(d) Notwithstanding Minnesota Statutes, 
39.13 	section 16B.37, subdivision 4, and Minnesota 
39.14 	Statutes, section 471.59, except for work 
39.15 	performed by MN.IT under Minnesota 
39.16 	Statutes, chapter 16E, the commissioner of 
39.17 	commerce must not allow billing or transfers 
39.18 	between other executive branch agencies or 
39.19 	departments and the Department of 
39.20 	Commerce.

39.21	Subd. 2.Financial Institutions
 		5,285,000
		5,410,000
	
39.22 	(a) Of the amounts appropriated in this 
39.23 	subdivision, no more than $4,343,000 in fiscal 
39.24 	year 2018 and $4,343,000 in fiscal year 2019 
39.25 	may be expended on full-time equivalent 
39.26 	positions, totaling no more than 45.3 full-time 
39.27 	equivalent positions in fiscal year 2018 and 
39.28 	45.3 full-time equivalent positions in fiscal 
39.29 	year 2019.
39.30 	(b) $400,000 each year is for grants to Prepare 
39.31 	and Prosper for purposes of developing, 
39.32 	marketing, evaluating, and distributing a 
39.33 	financial services inclusion program that will 
39.34 	assist low-income and financially underserved 
39.35 	populations build savings, strengthen credit, 
40.1 	and provide services to assist them in being 
40.2 	more financially stable and secure. Grants in 
40.3 	fiscal year 2018 must be matched by nonstate 
40.4 	contributions. Money remaining after the first 
40.5 	year is available for the second year.

40.6
40.7	Subd. 3.Petroleum Tank Release Compensation 
Board
 		1,052,000
		1,052,000
	
40.8 	(a) This appropriation is from the petroleum 
40.9 	tank fund.
40.10 	(b) Of the amounts appropriated in this 
40.11 	subdivision, no more than $710,000 in fiscal 
40.12 	year 2018 and $710,000 in fiscal year 2019 
40.13 	may be expended on full-time equivalent 
40.14 	positions, totaling no more than 6.9 full-time 
40.15 	equivalent positions in fiscal year 2018 and 
40.16 	6.9 full-time equivalent positions in fiscal year 
40.17 	2019.

40.18	Subd. 4.Administrative Services
 		7,603,000
		7,353,000

40.19	Appropriations by Fund
	
40.20	General
	7,353,000
	7,103,000
	
40.21	Special Revenue
	250,000
	250,000
	
40.22 	(a) Of the amounts appropriated in this 
40.23 	subdivision, no more than $4,709,000 in fiscal 
40.24 	year 2018 and $4,709,000 in fiscal year 2019 
40.25 	may be expended on full-time equivalent 
40.26 	positions, totaling no more than 49.9 full-time 
40.27 	equivalent positions in fiscal year 2018 and 
40.28 	49.9 full-time equivalent positions in fiscal 
40.29 	year 2019.
40.30 	(b) $625,000 in fiscal year 2018 and $375,000 
40.31 	in fiscal year 2019 are to fund Minnesota 
40.32 	Statutes, section 345.42, subdivision 1a, 
40.33 	paragraph (b).
41.1 	(c) $33,000 each year is for rulemaking and 
41.2 	administration under Minnesota Statutes, 
41.3 	section 80A.461.
41.4 	(d) $250,000 each year is from the energy fund 
41.5 	account in the special revenue fund established 
41.6 	in Minnesota Statutes, section 116C.779, 
41.7 	subdivision 1, for transfer to the Board of 
41.8 	Regents of the University of Minnesota for 
41.9 	operations and maintenance of the Natural 
41.10 	Resources Research Institute at the University 
41.11 	of Minnesota Duluth. The funds shall be used 
41.12 	for operations, maintenance, research, and 
41.13 	staff support to strengthen applied research 
41.14 	activities and accelerate innovation and 
41.15 	economic development in key areas such as 
41.16 	minerals, mining and water, energy and the 
41.17 	environment, and forest products and 
41.18 	bioeconomy. In fiscal year 2020 and beyond, 
41.19 	the base amount is $0.

41.20	Subd. 5.Telecommunications
 		2,589,000
		2,520,000

41.21	Appropriations by Fund
	
41.22	General
	979,000
	910,000
	
41.23	Special Revenue
	1,610,000
	1,610,000
	
41.24 	(a) For the general fund appropriations under 
41.25 	this subdivision, the base amount in fiscal year 
41.26 	2020 is $546,000, and the base amount in 
41.27 	fiscal year 2021 is $431,000.
41.28 	(b) Of the amounts appropriated in this 
41.29 	subdivision, no more than $759,000 in fiscal 
41.30 	year 2018 and $759,000 in fiscal year 2019 
41.31 	may be expended on full-time equivalent 
41.32 	positions, totaling no more than seven 
41.33 	full-time equivalent positions in fiscal year 
41.34 	2018 and seven full-time equivalent positions 
41.35 	in fiscal year 2019.
42.1 	(c) $1,610,000 each year is from the 
42.2 	telecommunication access Minnesota fund 
42.3 	account in the special revenue fund for the 
42.4 	following transfers. This appropriation is 
42.5 	added to the department's base.
42.6 	(1) $1,170,000 each year is to the 
42.7 	commissioner of human services to 
42.8 	supplement the ongoing operational expenses 
42.9 	of the Commission of Deaf, DeafBlind, and 
42.10 	Hard-of-Hearing Minnesotans;
42.11 	(2) $290,000 each year is to the chief 
42.12 	information officer for the purpose of 
42.13 	coordinating technology accessibility and 
42.14 	usability;
42.15 	(3) $100,000 each year is to the Legislative 
42.16 	Coordinating Commission for captioning of 
42.17 	legislative coverage. This transfer is subject 
42.18 	to Minnesota Statutes, section 16A.281; and
42.19 	(4) $50,000 each year is to the Office of 
42.20 	MN.IT Services for a consolidated access fund 
42.21 	to provide grants to other state agencies related 
42.22 	to accessibility of their Web-based services.

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

42.24	Appropriations by Fund
	
42.25	General
	5,101,000
	4,901,000
	
42.26
42.27	Workers' 
Compensation
	198,000
	198,000
	
42.28 	(a) Of the amounts appropriated in this 
42.29 	subdivision, no more than $4,732,000 in fiscal 
42.30 	year 2018 and $4,732,000 in fiscal year 2019 
42.31 	may be expended on full-time equivalent 
42.32 	positions, totaling no more than 48.5 full-time 
42.33 	equivalent positions in fiscal year 2018 and 
42.34 	48.5 full-time equivalent positions in fiscal 
42.35 	year 2019.
43.1 	(b) $279,000 each year is for health care 
43.2 	enforcement.
43.3 	(c)(1) $200,000 in fiscal year 2018 is to create 
43.4 	and execute a statewide education and 
43.5 	outreach campaign to protect seniors, meaning 
43.6 	those 60 years of age or older, vulnerable 
43.7 	adults, as defined in Minnesota Statutes, 
43.8 	section 626.5572, subdivision 21, and their 
43.9 	caregivers from financial fraud and 
43.10 	exploitation.
43.11 	(2) The education and outreach campaign must 
43.12 	be statewide, and must include, but is not 
43.13 	limited to, the dissemination of information 
43.14 	through television, print, or other media, 
43.15 	training and outreach to senior living facilities, 
43.16 	and the creation of a senior fraud toolkit.
43.17 	(3) The commissioner of commerce shall 
43.18 	report by January 15, 2018, to the chairs and 
43.19 	ranking minority members of the committees 
43.20 	of the house of representatives and senate 
43.21 	having jurisdiction over commerce issues 
43.22 	regarding the results of the statewide education 
43.23 	and outreach campaign, and recommendations 
43.24 	for supporting ongoing efforts to prevent 
43.25 	financial fraud from occurring to, and the 
43.26 	financial exploitation of, seniors, vulnerable 
43.27 	adults, and their caregivers.

43.28	Subd. 7.Energy Resources
 		4,099,000
		4,299,000

43.29	Appropriations by Fund
	
43.30	General
	3,999,000
	4,199,000
	
43.31	Special Revenue
	100,000
	100,000
	
43.32 	(a) Of the amounts appropriated in this 
43.33 	subdivision, no more than $3,689,000 in fiscal 
43.34 	year 2018 and $3,689,000 in fiscal year 2019 
44.1 	may be expended on full-time equivalent 
44.2 	positions, totaling no more than 26.8 full-time 
44.3 	equivalent positions in fiscal year 2018 and 
44.4 	26.8 full-time equivalent positions in fiscal 
44.5 	year 2019.
44.6 	(b) $832,000 each year is for energy regulation 
44.7 	and planning unit staff.
44.8 	(c) $200,000 in fiscal year 2019 is to remediate 
44.9 	insulation from households that are eligible 
44.10 	for weatherization assistance under 
44.11 	Minnesota's weatherization assistance program 
44.12 	state plan under Minnesota Statutes, section 
44.13 	216C.264. Remediation must be done in 
44.14 	conjunction with federal weatherization 
44.15 	assistance program services. This is a onetime 
44.16 	appropriation.
44.17 	(d) $100,000 each year is from the energy fund 
44.18 	account in the special revenue fund established 
44.19 	in Minnesota Statutes, section 116C.779, 
44.20 	subdivision 1, to administer the "Made in 
44.21 	Minnesota" solar energy production incentive 
44.22 	program in Minnesota Statutes, section 
44.23 	216C.417. Any remaining unspent funds 
44.24 	cancel back to the energy fund account at the 
44.25 	end of the biennium.

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

44.27	Appropriations by Fund
	
44.28	General
	4,315,000
	4,315,000
	
44.29
44.30	Workers' 
Compensation
	553,000
	553,000
	
44.31 	(a) Of the amounts appropriated in this 
44.32 	subdivision, no more than $4,431,000 in fiscal 
44.33 	year 2018 and $4,431,000 in fiscal year 2019 
44.34 	may be expended on full-time equivalent 
44.35 	positions, totaling no more than 37.3 full-time 
45.1 	equivalent positions in fiscal year 2018 and 
45.2 	37.3 full-time equivalent positions in fiscal 
45.3 	year 2019.
45.4 	(b) $642,000 each year is for health insurance 
45.5 	rate review staffing.
45.6 	(c) $412,000 each year is for actuarial work 
45.7 	to prepare for implementation of 
45.8 	principle-based reserves.

45.9	Sec. 8. PUBLIC UTILITIES COMMISSION
 	$
	7,242,000
	$
	7,030,000
	
45.10 	(a) For the general fund appropriations under 
45.11 	this section, the base amount in fiscal year 
45.12 	2020 is $6,774,000, and the base amount in 
45.13 	fiscal year 2021 is $6,649,000.
45.14 	(b) Notwithstanding Minnesota Statutes, 
45.15 	section 16A.285, the Public Utilities 
45.16 	Commission and its members must not allow 
45.17 	transfers of money appropriated in this section 
45.18 	between divisions or programs of the Public 
45.19 	Utilities Commission.
45.20 	(c) Notwithstanding Minnesota Statutes, 
45.21 	section 16B.37, subdivision 4, the Public 
45.22 	Utilities Commission and its members must 
45.23 	not allow billing between divisions or 
45.24 	programs within the Public Utilities 
45.25 	Commission, or otherwise use any "Internal 
45.26 	Billing Expenditures."
45.27 	(d) Notwithstanding Minnesota Statutes, 
45.28 	section 16B.37, subdivision 4, and section 
45.29 	471.59, or any other law to the contrary, 
45.30 	except for work performed by MN.IT, under 
45.31 	Minnesota Statutes, chapter 16E, the Public 
45.32 	Utilities Commission and its members must 
45.33 	not allow billing or transfers between other 
46.1 	executive branch agencies or departments and 
46.2 	the Public Utilities Commission.
46.3 	(e) Of the amount appropriated in this section, 
46.4 	no more than $6,072,000 in fiscal year 2018 
46.5 	and $6,072,000 in fiscal year 2019 may be 
46.6 	expended on full-time equivalent positions, 
46.7 	totaling no more than 55 full-time equivalent 
46.8 	positions in fiscal year 2018 and 55 full-time 
46.9 	equivalent positions in fiscal year 2019.
46.10 	(f) $21,000 each year is for the purposes of 
46.11 	Minnesota Statutes, section 237.045.

46.12	Sec. 9. PUBLIC FACILITIES AUTHORITY
 	$
	7,450,000
	$
	0
	
46.13 	(a) $300,000 in fiscal year 2018 is for a grant 
46.14 	to the city of New Trier to replace water 
46.15 	infrastructure under Hogan Avenue, including 
46.16 	related road reconstruction, and to acquire land 
46.17 	for predesign, design, and construction of a 
46.18 	storm water pond that will be colocated with 
46.19 	the pond of the new subdivision. This 
46.20 	appropriation does not require a nonstate 
46.21 	contribution.
46.22 	(b) $3,500,000 in fiscal year 2018 is for a 
46.23 	grant for land acquisition, design, engineering, 
46.24 	and construction of facilities and infrastructure 
46.25 	necessary for Phase 3 of the Lewis and Clark 
46.26 	Regional Water System project. Phase 3 
46.27 	includes extension of the project from the 
46.28 	Lincoln-Pipestone Rural Water System 
46.29 	connection near Adrian to Worthington, 
46.30 	construction of a reservoir in Nobles County 
46.31 	and a meter building in Worthington, and 
46.32 	acquisition and installation of a supervisory 
46.33 	control and data acquisition system.
47.1 	(c) $1,200,000 in fiscal year 2018 is for a grant 
47.2 	to the Clear Lake-Clearwater Sewer Authority 
47.3 	to remove and replace the existing wastewater 
47.4 	treatment facility. This project is intended to 
47.5 	prevent the discharge of phosphorus into the 
47.6 	Mississippi River. This appropriation is not 
47.7 	available until the commissioner of 
47.8 	management and budget determines that at 
47.9 	least $200,000 is committed to the project 
47.10 	from nonstate sources and the authority has 
47.11 	applied for at least two grants to offset the 
47.12 	cost. An amount equal to any grant money 
47.13 	received by the authority must be returned to 
47.14 	the general fund.
47.15 	(d) $1,200,000 in fiscal year 2018 is for a 
47.16 	grant to the Ramsey/Washington Recycling 
47.17 	and Energy Board to design, construct, and 
47.18 	equip capital improvements to the 
47.19 	Ramsey/Washington Recycling and Energy 
47.20 	Center in Newport.
47.21 	(e) $750,000 in fiscal year 2018 is for a grant 
47.22 	to the city of Cold Spring to acquire land, 
47.23 	predesign, design, engineer, construct, furnish, 
47.24 	and equip water infrastructure, including 
47.25 	drilling new wells, a water treatment plant, 
47.26 	and piping for water distribution.
47.27 	(f) $500,000 in fiscal year 2018 is for a grant 
47.28 	to the Big Lake Area Sanitary District to 
47.29 	construct a pressure sewer system and force 
47.30 	main to convey sewage to the Western Lake 
47.31 	Superior Sanitary District connection in the 
47.32 	city of Cloquet. This appropriation is in 
47.33 	addition to the appropriation in Laws 2014, 
47.34 	chapter 294, article 1, section 22, subdivision 
47.35 	4.

48.1
48.2	Sec. 10. DEPARTMENT OF IRON RANGE 
RESOURCES AND REHABILITATION.
 	$
	1,500,000
	$
	0
	
48.3 	This appropriation is from the energy fund 
48.4 	account in the special revenue fund established 
48.5 	in Minnesota Statutes, section 116C.779, 
48.6 	subdivision 1, for grants for innovative energy 
48.7 	solutions on the Iron Range.

48.8 	Sec. 11. GENERAL FUND TRANSFER TO ENERGY FUND ACCOUNT.
 48.9 	The commissioner of management and budget must transfer $500,000 in fiscal year 
48.10 	2018 and $3,500,000 in fiscal year 2019 from the general fund to the energy fund account 
48.11 	in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision 
48.12 	1. In fiscal year 2020 and beyond, the base amount is $4,000,000.

48.13 	Sec. 12. MINNESOTA FILM AND TV BOARD APPROPRIATION 
48.14 	CANCELLATION.
 48.15 	All unspent funds, estimated to be $350,000, appropriated for the film production jobs 
48.16 	program under Minnesota Statutes, section 116U.26, under Laws 2016, chapter 189, article 
48.17 	7, section 2, subdivision 2, are canceled to the general fund the day following final enactment 
48.18 	of this section.

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

48.20 	ARTICLE 2
48.21 	DEPARTMENT OF LABOR AND INDUSTRY POLICY

48.22 	Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
48.23 	175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.
48.24 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall convene 
48.25 	industry representatives, identify occupational competency standards for dual training, and 
48.26 	provide technical assistance to develop dual-training programs. The goal of dual training 
48.27 	is to provide employees of an employer with training to acquire competencies that the 
48.28 	employer requires. The competency standards shall be identified for employment in 
48.29 	occupations in advanced manufacturing, health care services, information technology, and 
48.30 	agriculture. Competency standards are not rules and are exempt from the rulemaking 
49.1 	provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do 
49.2 	not apply.
49.3 		Subd. 2.Definition; competency standards Definitions. For purposes of this section, 
49.4 	the following terms have the meanings given them:
49.5 	(1) "competency standards" means the specific knowledge and skills necessary for a 
49.6 	particular occupation.; and
49.7 	(2) "dual-training program" means an employment-based earn-as-you-learn program 
49.8 	where the trainee is employed by a participating employer and receives structured on-the-job 
49.9 	training and technical instruction in accordance with the competency standards.
49.10 		Subd. 3.Competency standards identification process. In identifying competency 
49.11 	standards, the commissioner shall consult with the commissioner of the Office of Higher 
49.12 	Education and the commissioner of employment and economic development and convene 
49.13 	recognized industry experts, representative employers, higher education institutions, 
49.14 	representatives of the disabled community, and representatives of labor to assist in identifying 
49.15 	credible competency standards. Competency standards must be consistent with, to the extent 
49.16 	available and practical, recognized international and national standards.
49.17 		Subd. 4.Duties. The commissioner shall:
49.18 	(1) convene industry representatives to identify, develop, and implement dual-training 
49.19 	programs;
49.20 	(2) identify competency standards for entry level entry-level and higher skill levels;
49.21 	(2) (3) verify the competency standards and skill levels and their transferability by subject 
49.22 	matter expert representatives of each respective industry;
49.23 	(3) (4) develop models for Minnesota educational institutions to engage in providing 
49.24 	education and training to meet the competency standards established;
49.25 	(4) (5) encourage participation by employers and labor in the competency standard 
49.26 	identification process for occupations in their industry; and
49.27 	(5) (6) align dual training competency standards dual-training programs with other 
49.28 	workforce initiatives.; and
49.29 	(7) provide technical assistance to develop dual-training programs.
49.30 		Subd. 5.Notification. The commissioner must communicate identified competency 
49.31 	standards to the commissioner of the Office of Higher Education for the purpose of the dual 
49.32 	training dual-training competency grant program under section 136A.246. The commissioner 
50.1 	of labor and industry shall maintain the competency standards on the department's Web 
50.2 	site.

50.3 	Sec. 2. [175.46] YOUTH SKILLS TRAINING PROGRAM.
50.4 		Subdivision 1.Program established; grants authorized. The commissioner shall 
50.5 	approve youth skills training programs established for the purpose of providing work-based 
50.6 	skills training for student learners ages 16 and older.
50.7 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
50.8 	the meanings given.
50.9 	(b) "School district" means a school district or charter school.
50.10 	(c) "Local partnership" means a school district, nonpublic school, intermediate school 
50.11 	district, or postsecondary institution, in partnership with other school districts, nonpublic 
50.12 	schools, intermediate school districts, postsecondary institutions, workforce development 
50.13 	authorities, economic development authorities, nonprofit organizations, labor unions, or 
50.14 	individuals who have an agreement with one or more local employers to be responsible for 
50.15 	implementing and coordinating a local youth skills training program.
50.16 	(d) "Student learner" means a student who is both enrolled in a course of study at a public 
50.17 	or nonpublic school to obtain related instruction for academic credit and is employed under 
50.18 	a written agreement to obtain on-the-job skills training under a youth skills training program 
50.19 	approved under this section.
50.20 	(e) "Commissioner" means the commissioner of labor and industry.
50.21 		Subd. 3.Duties. (a) The commissioner shall:
50.22 	(1) approve youth skills training programs in high growth, high demand occupations 
50.23 	that provide:
50.24 	(i) that the work of the student learner in the occupations declared particularly hazardous 
50.25 	shall be incidental to the training;
50.26 	(ii) that the work shall be intermittent and for short periods of time, and under the direct 
50.27 	and close supervision of a qualified and experienced person;
50.28 	(iii) that safety instruction shall be provided to the student learner and may be given by 
50.29 	the school and correlated by the employer with on-the-job training;
50.30 	(iv) a schedule of organized and progressive work processes to be performed on the job;
50.31 	(v) a schedule of wage rates in compliance with section 177.24; and
51.1 	(vi) whether the student learner will obtain secondary school academic credit, 
51.2 	postsecondary credit, or both, for the training program;
51.3 	(2) approve occupations and maintain a list of approved occupations for programs under 
51.4 	this section;
51.5 	(3) work with individuals representing industry and labor to develop new youth skills 
51.6 	training programs;
51.7 	(4) develop model program guides;
51.8 	(5) monitor youth skills training programs;
51.9 	(6) provide technical assistance to local partnership grantees;
51.10 	(7) work with providers to identify paths for receiving postsecondary credit for 
51.11 	participation in the youth skills training program; and
51.12 	(8) approve other activities as necessary to implement the program.
51.13 	(b) The commissioner shall collaborate with stakeholders, including, but not limited to, 
51.14 	representatives of secondary school institutions, career and technical education instructors, 
51.15 	postsecondary institutions, businesses, and labor, in developing youth skills training 
51.16 	programs, and identifying and approving occupations and competencies for youth skills 
51.17 	training programs.
51.18 		Subd. 4.Training agreement. Each student learner shall sign a written training agreement 
51.19 	on a form prescribed by the commissioner. Each agreement shall contain the name of the 
51.20 	student learner, and be signed by the employer, the school coordinator or administrator, and 
51.21 	the student learner, or if the student learner is a minor, by the student's parent or legal 
51.22 	guardian. Copies of each agreement shall be kept on file by both the school and the employer.
51.23 		Subd. 5.Program approval. The commissioner may grant exemptions from the 
51.24 	provisions of chapter 181A for student learners participating in youth skills training programs 
51.25 	approved by the commissioner under this section. The approval of a youth skills training 
51.26 	program will be reviewed annually. The approval of a youth skills training program may 
51.27 	be revoked at any time if the commissioner finds that:
51.28 	(1) all provisions of subdivision 3 have not been met in the previous year; or
51.29 	(2) reasonable precautions have not been observed for the safety of minors.
51.30 	The commissioner shall maintain and annually update a list of occupations and tasks suitable 
51.31 	for student learners in compliance with federal law.
52.1 		Subd. 6.Interactions with education finance. (a) For the purpose of computing state 
52.2 	aids for the enrolling school district, the hours a student learner participates in a youth skills 
52.3 	training program under this section must be counted in the student's hours of average daily 
52.4 	membership under section 126C.05.
52.5 	(b) Educational expenses for a participating student learner must be included in the 
52.6 	enrolling district's career and technical revenue as provided under section 124D.4531.
52.7 		Subd. 7.Academic credit. A school district may grant academic credit to student learners 
52.8 	participating in youth skills training programs under this section in accordance with local 
52.9 	requirements.
52.10 		Subd. 8.Postsecondary credit. A postsecondary institution may award postsecondary 
52.11 	credit to a student learner who successfully completes a youth skills training program.
52.12 		Subd. 9.Work-based learning program. A youth skills training program shall qualify 
52.13 	as a work-based learning program if it meets requirements for a career and technical education 
52.14 	program and is supervised by a qualified teacher with appropriate licensure for a work-based 
52.15 	learning teacher-coordinator.
52.16 		Subd. 10.School coordinator. Unless otherwise required for a work-based learning 
52.17 	program, a youth skills training program may be supervised by a qualified teacher or by an 
52.18 	administrator as determined by the school district.
52.19 		Subd. 11.Other apprenticeship programs. (a) This section shall not affect programs 
52.20 	under section 124D.47.
52.21 	(b) A registered apprenticeship program governed by chapter 178 may grant credit 
52.22 	toward the completion of a registered apprenticeship for the successful completion of a 
52.23 	youth skills training program under this section.
52.24 		Subd. 12.Outcomes. The following outcomes are expected of a local youth skills training 
52.25 	program:
52.26 	(1) at least 80 percent of the student learners who participate in a youth skills training 
52.27 	program receive a high school diploma when eligible on completion of the training program; 
52.28 	and
52.29 	(2) at least 60 percent of the student learners who participate in a youth skills training 
52.30 	program receive a recognized credential on completion of the training program.
52.31 		Subd. 13.Reporting. (a) By February 1, 2019, and annually thereafter, the commissioner 
52.32 	shall report on the activity and outcomes of the program for the preceding fiscal year to the 
53.1 	chairs of the legislative committees with jurisdiction over jobs and economic growth policy 
53.2 	and finance. At a minimum, the report must include:
53.3 	(1) the number of student learners who commenced the training program and the number 
53.4 	who completed the training program; and
53.5 	(2) recommendations, if any, for changes to the program.
53.6 	(b) The initial report shall include a detailed description of the differences between the 
53.7 	state and federal systems in child safety standards.

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

53.18		License Classification
	License Duration
		
53.19			1 year
	2 years
	
53.20		Entry level
	$10
	$20
	
53.21		Journeyworker
	$20
	$40
	
53.22		Master
	$40
	$80
	
53.23		Business
		$180
	
53.24 	(d) If there is a continuing education requirement for renewal of the license, then a 
53.25 	continuing education fee must be included in the renewal license fee. The continuing 
53.26 	education fee for all license classifications shall be: $10 if the renewal license duration is 
53.27 	one year; and $20 if the renewal license duration is two years.
53.28 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, 
53.29 	then a board fee must be included in the license fee and the renewal license fee. The board 
53.30 	fee for all license classifications shall be: $4 if the license duration is one year; and $8 if 
53.31 	the license duration is two years.
54.1 	(f) If the application is for the renewal of a license issued under sections 326B.802 to 
54.2 	326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 
54.3 	3, and any additional assessment required under section 326B.89, subdivision 16, must be 
54.4 	included in the license renewal fee.
54.5 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
54.6 	July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:

54.7		License Classification
	License Duration
		
54.8			1 year
	2 years
	
54.9		Entry level
	$10
	$20
	
54.1154.10
		Journeyworker
	$15
	$35
$30
	
54.1354.12
		Master
	$30
	$75
$60
	
54.1554.14
		Business
		$160
$120
	
54.16 	If there is a continuing education requirement for renewal of the license, then a continuing 
54.17 	education fee must be included in the renewal license fee. The continuing education fee for 
54.18 	all license classifications shall be $5.

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

54.31 	Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
54.32 		Subdivision 1.Building permits. (a) Fees for building permits submitted as required 
54.33 	in section 326B.106 326B.107 include:
55.1 	(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; 
55.2 	and
55.3 	(2) the surcharge required by section 326B.148.
55.4 	(b) The total valuation and fee schedule is:
55.5 	(1) $1 to $500, $29.50 $21;
55.6 	(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100 
55.7 	or fraction thereof, to and including $2,000;
55.8 	(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each 
55.9 	additional $1,000 or fraction thereof, to and including $25,000;
55.10 	(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each 
55.11 	additional $1,000 or fraction thereof, to and including $50,000;
55.12 	(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for 
55.13 	each additional $1,000 or fraction thereof, to and including $100,000;
55.14 	(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for 
55.15 	each additional $1,000 or fraction thereof, to and including $500,000;
55.16 	(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
55.17 	for each additional $1,000 or fraction thereof, to and including $1,000,000; and
55.18 	(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
55.19 	for each additional $1,000 or fraction thereof.
55.20 	(c) Other inspections and fees are:
55.21 	(1) inspections outside of normal business hours (minimum charge two hours), $63.25 
55.22 	per hour;
55.23 	(2) reinspection fees, $63.25 per hour;
55.24 	(3) inspections for which no fee is specifically indicated (minimum charge one-half 
55.25 	hour), $63.25 per hour; and
55.26 	(4) additional plan review required by changes, additions, or revisions to approved plans 
55.27 	(minimum charge one-half hour), $63.25 per hour.
55.28 	(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, 
55.29 	then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, 
55.30 	hourly wages, and fringe benefits of the employees involved.

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

56.3 	Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
56.4 	read:
56.5 		Subd. 16.Wind electric systems. (a) The inspection fee for the installation of a wind 
56.6 	turbine is:
56.7 	(1) zero watts to and including 100,000 watts, $80;
56.8 	(2) 100,001 watts to and including 500,000 watts, $105;
56.9 	(3) 500,001 watts to and including 1,000,000 watts, $120;
56.10 	(4) 1,000,001 watts to and including 1,500,000 watts, $125;
56.11 	(5) 1,500,001 watts to and including 2,000,000 watts, $130;
56.12 	(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
56.13 	(7) 3,000,001 watts and larger, $160.
56.14 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
56.15 	current energy output of one individual wind turbine.

56.16 	Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to 
56.17 	read:
56.18 		Subd. 17.Solar photovoltaic systems. (a) The inspection fee for the installation of a 
56.19 	solar photovoltaic system is:
56.20 	(1) zero watts to and including 5,000 watts, $60;
56.21 	(2) 5,001 watts to and including 10,000 watts, $100;
56.22 	(3) 10,001 watts to and including 20,000 watts, $150;
56.23 	(4) 20,001 watts to and including 30,000 watts, $200;
56.24 	(5) 30,001 watts to and including 40,000 watts, $250;
56.25 	(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional 
56.26 	10,000 watts over 40,000 watts;
56.27 	(7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts 
56.28 	over 1,000,000 watts; and
57.1 	(8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over 
57.2 	5,000,000 watts.
57.3 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
57.4 	current energy output of the solar photovoltaic system.

57.5 	Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:
57.6 		Subd. 2.Powers; duties; administrative support. (a) The board shall have the power 
57.7 	to:
57.8 	(1) elect its chair, vice-chair, and secretary;
57.9 	(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board, 
57.10 	and containing such other provisions as may be useful and necessary for the efficient conduct 
57.11 	of the business of the board;
57.12 	(3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code 
57.13 	amendments thereto. The Plumbing Code shall include the minimum standards described 
57.14 	in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the 
57.15 	Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in 
57.16 	subdivision 6, paragraphs (b), (c), and (d);
57.17 	(4) review requests for final interpretations and issue final interpretations as provided 
57.18 	in section 326B.127, subdivision 5;
57.19 	(5) adopt rules that regulate the licensure, certification, or registration of plumbing 
57.20 	contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers, 
57.21 	restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and 
57.22 	testers, water conditioning contractors, and water conditioning installers, and other persons 
57.23 	engaged in the design, installation, and alteration of plumbing systems or engaged in or 
57.24 	working at the business of water conditioning installation or service, or engaged in or 
57.25 	working at the business of medical gas system installation, maintenance, or repair, except 
57.26 	for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall 
57.27 	adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) 
57.28 	and (f);
57.29 	(6) adopt rules that regulate continuing education for individuals licensed as master 
57.30 	plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers, 
57.31 	registered unlicensed individuals, water conditioning contractors masters, and water 
57.32 	conditioning installers journeymen, and for individuals certified under sections 326B.437
58.1 	and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in 
58.2 	subdivision 6, paragraphs (e) and (f);
58.3 	(7) refer complaints or other communications to the commissioner, whether oral or 
58.4 	written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or 
58.5 	order that the commissioner has the authority to enforce pertaining to code compliance, 
58.6 	licensure, or an offering to perform or performance of unlicensed plumbing services;
58.7 	(8) approve per diem and expenses deemed necessary for its members as provided in 
58.8 	subdivision 3;
58.9 	(9) approve license reciprocity agreements;
58.10 	(10) select from its members individuals to serve on any other state advisory council, 
58.11 	board, or committee; and
58.12 	(11) recommend the fees for licenses, registrations, and certifications.
58.13 	Except for the powers granted to the Plumbing Board, the Board of Electricity, and the 
58.14 	Board of High Pressure Piping Systems, the commissioner of labor and industry shall 
58.15 	administer and enforce the provisions of this chapter and any rules promulgated pursuant 
58.16 	thereto.
58.17 	(b) The board shall comply with section 15.0597, subdivisions 2 and 4.
58.18 	(c) The commissioner shall coordinate the board's rulemaking and recommendations 
58.19 	with the recommendations and rulemaking conducted by the other boards created pursuant 
58.20 	to this chapter. The commissioner shall provide staff support to the board. The support 
58.21 	includes professional, legal, technical, and clerical staff necessary to perform rulemaking 
58.22 	and other duties assigned to the board. The commissioner of labor and industry shall supply 
58.23 	necessary office space and supplies to assist the board in its duties.

58.24 	Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:
58.25 		Subd. 3.Water conditioning installation. "Water conditioning installation" means the 
58.26 	installation of appliances, appurtenances, and fixtures designed to treat water so as to alter, 
58.27 	modify, add or remove mineral, chemical or bacterial content, said installation to be made 
58.28 	in a water distribution system serving:
58.29 	(1) a single family residential unit, which has been initially established by a licensed 
58.30 	plumber, and does not involve a direct connection without an air gap to a soil or waste pipe.; 
58.31 	or
59.1 	(2) a multifamily or nonresidential building, where the plumbing installation has been 
59.2 	initially established by a licensed plumber. Isolation valves shall be required for all water 
59.3 	conditioning installations and shall be readily accessible. Water conditioning installation 
59.4 	does not include:
59.5 	(i) a valve that allows isolation of the water conditioning installation;
59.6 	(ii) piping greater than two-inch nominal pipe size; or
59.7 	(iii) a direct connection without an air gap to a soil or waste pipe.

59.8 	Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
59.9 	to read:
59.10 		Subd. 5.Direct supervision. "Direct supervision," with respect to direct supervision of 
59.11 	a registered unlicensed individual, means that:
59.12 	(1) at all times while the registered unlicensed individual is performing water conditioning 
59.13 	installation work, a direct supervisor is present at the location where the registered unlicensed 
59.14 	individual is working;
59.15 	(2) the direct supervisor is physically present and immediately available to the registered 
59.16 	unlicensed individual at all times for assistance and direction;
59.17 	(3) any form of electronic supervision does not meet the requirement of being physically 
59.18 	present;
59.19 	(4) the direct supervisor reviews the water conditioning installation work performed by 
59.20 	the registered unlicensed individual before the water conditioning installation is operated; 
59.21 	and
59.22 	(5) the direct supervisor determines that all water conditioning installation work 
59.23 	performed by the registered unlicensed individual is performed in compliance with sections 
59.24 	326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, 
59.25 	and all orders issued under section 326B.082.

59.26 	Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision 
59.27 	to read:
59.28 		Subd. 6.Direct supervisor. "Direct supervisor" means a master plumber, journeyman 
59.29 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
59.30 	master, or water conditioning journeyman responsible for providing direct supervision of 
59.31 	a registered unlicensed individual.

60.1 	Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:
60.2 		Subd. 2.Qualifications for licensing. (a) A water conditioning master license shall be 
60.3 	issued only to an individual who has demonstrated skill in planning, superintending, and
60.4 	servicing, and installing water conditioning installations, and has successfully passed the 
60.5 	examination for water conditioning masters. A water conditioning journeyman license shall 
60.6 	only be issued to an individual other than a water conditioning master who has demonstrated 
60.7 	practical knowledge of water conditioning installation, and has successfully passed the 
60.8 	examination for water conditioning journeymen. A water conditioning journeyman must 
60.9 	successfully pass the examination for water conditioning masters before being licensed as 
60.10 	a water conditioning master.
60.11 	(b) Each water conditioning contractor must designate a responsible licensed master 
60.12 	plumber or a responsible licensed water conditioning master, who shall be responsible for 
60.13 	the performance of all water conditioning installation and servicing in accordance with the 
60.14 	requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 
60.15 	326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If 
60.16 	the water conditioning contractor is an individual or sole proprietorship, the responsible 
60.17 	licensed master must be the individual, proprietor, or managing employee. If the water 
60.18 	conditioning contractor is a partnership, the responsible licensed master must be a general 
60.19 	partner or managing employee. If the water conditioning contractor is a limited liability 
60.20 	company, the responsible licensed master must be a chief manager or managing employee. 
60.21 	If the water conditioning contractor is a corporation, the responsible licensed master must 
60.22 	be an officer or managing employee. If the responsible licensed master is a managing 
60.23 	employee, the responsible licensed master must be actively engaged in performing water 
60.24 	conditioning work on behalf of the water conditioning contractor and cannot be employed 
60.25 	in any capacity as a water conditioning master or water conditioning journeyman for any 
60.26 	other water conditioning contractor. An individual must not be the responsible licensed 
60.27 	master for more than one water conditioning contractor.
60.28 	(c) All applications and renewals for water conditioning contractor licenses shall include 
60.29 	a verified statement that the applicant or licensee has complied with paragraph (b).
60.30 	(d) Each application and renewal for a water conditioning master license, water 
60.31 	conditioning journeyman license, or a water conditioning contractor license shall be 
60.32 	accompanied by all fees required by section 326B.092.

61.1 	Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:
61.2 		Subd. 4.Plumber's apprentices. (a) A plumber's apprentice who is registered under 
61.3 	section 326B.47 is authorized to assist in water conditioning installation and water 
61.4 	conditioning servicing only while under the direct supervision of a master plumber, 
61.5 	journeyman plumber, restricted master plumber, restricted journeyman plumber, water 
61.6 	conditioning master, or water conditioning journeyman. The master or journeyman is 
61.7 	responsible for ensuring that all water conditioning work performed by the plumber's 
61.8 	apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 
61.9 	326B.59. The supervising master or journeyman must be licensed and must be employed 
61.10 	by the same employer as the plumber's apprentice. Licensed individuals shall not permit 
61.11 	plumber's apprentices to perform water conditioning work except under the direct supervision 
61.12 	of an individual actually licensed to perform such work. Plumber's apprentices shall not 
61.13 	supervise the performance of plumbing work or make assignments of plumbing work to 
61.14 	unlicensed individuals.
61.15 	(b) Water conditioning contractors employing plumber's apprentices to perform water 
61.16 	conditioning work shall maintain records establishing compliance with this subdivision that 
61.17 	shall identify all plumber's apprentices performing water conditioning work, and shall permit 
61.18 	the department to examine and copy all such records.

61.19 	Sec. 14. [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
61.20 		Subdivision 1.Registration; supervision; records. (a) All unlicensed individuals 
61.21 	engaged in water conditioning installation must be registered under subdivision 3.
61.22 	(b) A registered unlicensed individual is authorized to assist in water conditioning 
61.23 	installations in a single family residential unit only when a master plumber, journeyman 
61.24 	plumber, restricted master plumber, restricted journeyman plumber, water conditioning 
61.25 	master, or water conditioning journeyman is available and responsible for ensuring that all 
61.26 	water conditioning installation work performed by the unlicensed individual complies with 
61.27 	the applicable provisions of the plumbing and water conditioning codes and rules adopted 
61.28 	pursuant to such codes. For all other water conditioning installation work, the registered 
61.29 	unlicensed individual must be under the direct supervision of a responsible licensed water 
61.30 	conditioning master.
61.31 	(c) Water conditioning contractors employing registered unlicensed individuals to perform 
61.32 	water conditioning installation work shall maintain records establishing compliance with 
61.33 	this subdivision that shall identify all unlicensed individuals performing water conditioning 
61.34 	installations, and shall permit the department to examine and copy all such records.
62.1 		Subd. 2.Journeyman exam. A registered unlicensed individual who has completed 
62.2 	875 hours of practical water conditioning installation, servicing, and training is eligible to 
62.3 	take the water conditioning journeyman examination. Up to 100 hours of practical water 
62.4 	conditioning installation and servicing experience prior to becoming a registered unlicensed 
62.5 	individual may be applied to the practical experience requirement. However, none of this 
62.6 	practical experience may be applied if the unlicensed individual did not have any practical 
62.7 	experience in the 12-month period immediately prior to becoming a registered unlicensed 
62.8 	individual.
62.9 		Subd. 3.Registration, renewals, and fees. An unlicensed individual may register by 
62.10 	completing and submitting to the commissioner an application form provided by the 
62.11 	commissioner, with all fees required by section 326B.58. A completed application form 
62.12 	must state the date, the individual's age, schooling, previous experience and employer, and 
62.13 	other information required by the commissioner. The plumbing board may prescribe rules, 
62.14 	not inconsistent with this section, for the registration of unlicensed individuals. Applications 
62.15 	for initial registration may be submitted at any time. Registration must be renewed annually 
62.16 	and shall be for the period from July 1 of each year to June 30 of the following year.

62.17 	Sec. 15. Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:
62.18 		Subd. 3.Prohibition. Except as provided in subdivision 6, no persons required to be 
62.19 	licensed by subdivision 1 may act or hold themselves out as a residential building contractor, 
62.20 	residential remodeler, residential roofer, or manufactured home installer for compensation 
62.21 	without a license issued by the commissioner. Unlicensed residential building contractor, 
62.22 	residential remodeler, or residential roofer activity is a gross misdemeanor.

62.23 	Sec. 16. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
62.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
62.25 	the meanings given them.
62.26 	(b) "Gross annual receipts" means the total amount derived from residential contracting 
62.27 	or residential remodeling activities, regardless of where the activities are performed, and 
62.28 	must not be reduced by costs of goods sold, expenses, losses, or any other amount.
62.29 	(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
62.30 	(d) "Residential real estate" means a new or existing building constructed for habitation 
62.31 	by one to four families, and includes detached garages intended for storage of vehicles 
62.32 	associated with the residential real estate.
63.1 	(e) "Fund" means the contractor recovery fund.
63.2 	(f) "Owner" when used in connection with real property, means a person who has any 
63.3 	legal or equitable interest in real property and includes a condominium or townhome 
63.4 	association that owns common property located in a condominium building or townhome 
63.5 	building or an associated detached garage. Owner does not include any real estate developer 
63.6 	or any owner using, or intending to use, the property for a business purpose and not as 
63.7 	owner-occupied residential real estate.

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

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

63.18	Subd. 2.Workers' Compensation
 		15,226,000
		17,782,000
	
63.19 	This appropriation is from the workers' 
63.20 	compensation fund.
63.21 	$4,000,000 in fiscal year 2016 and $6,000,000 
63.22 	in fiscal year 2017 are for workers' 
63.23 	compensation system upgrades and are 
63.24 	available through June 30, 2021. The base 
63.25 	appropriation for this purpose is $3,000,000 
63.26 	in fiscal year 2018 and $3,000,000 in fiscal 
63.27 	year 2019. The base appropriation for fiscal 
63.28 	year 2020 and beyond is zero.
63.29 	This appropriation includes funds for 
63.30 	information technology project services and 
63.31 	support subject to the provisions of Minnesota 
63.32 	Statutes, section 16E.0466. Any ongoing 
63.33 	information technology costs will be 
64.1 	incorporated into the service level agreement 
64.2 	and will be paid to the Office of MN.IT 
64.3 	Services by the commissioner of labor and 
64.4 	industry under the rates and mechanism 
64.5 	specified in that agreement.

64.6 	Sec. 19. RULEMAKING.
 64.7 	The commissioner of labor and industry shall amend Minnesota Rules, part 1309.0313, 
64.8 	IRC sections R313.1 to R313.3, to establish that one- and two-family dwellings and two-unit 
64.9 	townhouses are not required to have installed automatic fire sprinkler systems. The 
64.10 	commissioner may use the exempt provisions of Minnesota Statutes, section 14.386, except 
64.11 	that paragraph (b) shall not apply.

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

64.13 	Sec. 20. REPEALER.
 64.14 	Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

64.15 	ARTICLE 3
64.16 	EMPLOYMENT, ECONOMIC DEVELOPMENT, AND WORKFORCE 
64.17 	DEVELOPMENT POLICY

64.18 	Section 1. Minnesota Statutes 2016, section 116J.01, subdivision 5, is amended to read:
64.19 		Subd. 5.Departmental organization. (a) The commissioner shall organize the 
64.20 	department as provided in section 15.06.
64.21 	(b) The commissioner may establish divisions and offices within the department. The 
64.22 	commissioner may employ four one deputy commissioners commissioner in the unclassified 
64.23 	service.
64.24 	(c) The commissioner shall:
64.25 	(1) employ assistants and other officers, employees, and agents that the commissioner 
64.26 	considers necessary to discharge the functions of the commissioner's office;
64.27 	(2) define the duties of the officers, employees, and agents, and delegate to them any of 
64.28 	the commissioner's powers, duties, and responsibilities, subject to the commissioner's control 
64.29 	and under conditions prescribed by the commissioner.
65.1 	(d) The commissioner shall ensure that there are at least three employment and economic 
65.2 	development officers in state offices in nonmetropolitan areas of the state who will work 
65.3 	with local units of government on developing local employment and economic development.

65.4 	Sec. 2. Minnesota Statutes 2016, section 116J.013, is amended to read:
65.5 	116J.013 COST-OF-LIVING STUDY; ANNUAL REPORT.
65.6 	(a) The commissioner shall conduct an annual cost-of-living study in Minnesota. The 
65.7 	study shall include:
65.8 	(1) a calculation of the statewide basic needs cost of living, including reasonable 
65.9 	retirement and long-term care savings, adjusted for family size;
65.10 	(2) a calculation of the basic needs cost of living, including reasonable retirement and 
65.11 	long-term care savings, adjusted for family size, for each county;
65.12 	(3) an analysis of statewide and county cost-of-living data, employment data, and job 
65.13 	vacancy data; and
65.14 	(4) recommendations to aid in the assessment of employment and economic development 
65.15 	planning needs throughout the state.
65.16 	(b) The commissioner shall report on the cost-of-living study and recommendations by 
65.17 	February 1 of each year to the governor and to the chairs of the standing committees of the 
65.18 	house of representatives and the senate having jurisdiction over employment and economic 
65.19 	development issues.

65.20 	Sec. 3. [116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND.
65.21 	(a) A rural policy and development center fund is established as an account in the special 
65.22 	revenue fund in the state treasury. The commissioner of management and budget shall credit 
65.23 	to the account the amounts authorized under this section and appropriations and transfers 
65.24 	to the account. The State Board of Investment shall ensure that account money is invested 
65.25 	under section 11A.24. All money earned by the account must be credited to the account. 
65.26 	The principal of the account and any unexpended earnings must be invested and reinvested 
65.27 	by the State Board of Investment.
65.28 	(b) Gifts and donations, including land or interests in land, may be made to the account. 
65.29 	Noncash gifts and donations must be disposed of for cash as soon as the board prudently 
65.30 	can maximize the value of the gift or donation. Gifts and donations of marketable securities 
65.31 	may be held or be disposed of for cash at the option of the board. The cash receipts of gifts 
66.1 	and donations of cash or capital assets and marketable securities disposed of for cash must 
66.2 	be credited immediately to the principal of the account. The value of marketable securities 
66.3 	at the time the gift or donation is made must be credited to the principal of the account and 
66.4 	any earnings from the marketable securities are earnings of the account. The earnings in 
66.5 	the account are annually appropriated to the board of the Center for Rural Policy and 
66.6 	Development to carry out the duties of the center.

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

66.8 	Sec. 4. [116J.9922] CENTRAL MINNESOTA OPPORTUNITY GRANT PROGRAM.
66.9 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
66.10 	the meanings given.
66.11 	(b) "Commissioner" means the commissioner of employment and economic development.
66.12 	(c) "Community initiative" means a nonprofit organization which provides services to 
66.13 	central Minnesota communities of color in one or more of the program areas listed in 
66.14 	subdivision 4, paragraph (a).
66.15 	(d) "Foundation" means the Central Minnesota Community Foundation.
66.16 		Subd. 2.Establishment. The commissioner shall establish a central Minnesota 
66.17 	opportunity grant program, administered by the foundation, to identify and support 
66.18 	community initiatives in central and west central Minnesota that enhance long-term economic 
66.19 	self-sufficiency by improving education, housing, and economic outcomes for central and 
66.20 	west central Minnesota communities of color.
66.21 		Subd. 3.Grant to the Central Minnesota Community Foundation. The commissioner 
66.22 	shall award all grant funds to the foundation, which shall administer the central Minnesota 
66.23 	opportunity grant program. The foundation may use up to five percent of grant funds for 
66.24 	administrative costs.
66.25 		Subd. 4.Grants to community initiatives. (a) The foundation must award funds through 
66.26 	a competitive grant process to community initiatives that will provide services, either alone 
66.27 	or in partnership with another nonprofit organization, in one or more of the following areas:
66.28 	(1) economic development, including but not limited to programs to foster 
66.29 	entrepreneurship or small business development;
66.30 	(2) education, including but not limited to programs to encourage civic engagement or 
66.31 	provide youth after-school or recreation programs; or
67.1 	(3) housing, including but not limited to programs to prevent and respond to homelessness 
67.2 	or to provide access to loans or grants for housing stability and affordability.
67.3 	(b) To receive grant funds, a community initiative must submit a written application to 
67.4 	the foundation, using a form developed by the foundation. This grant application must 
67.5 	include:
67.6 	(1) a description of the activities that will be funded by the grant;
67.7 	(2) an estimate of the cost of each grant activity;
67.8 	(3) the total cost of the project;
67.9 	(4) the sources and amounts of nonstate funds supplementing the grant;
67.10 	(5) how the project aims to achieve stated outcomes in areas including improved job 
67.11 	training; workforce development; small business support; early childhood, kindergarten 
67.12 	through grade 12, and higher education achievement; and access to housing, including loans; 
67.13 	and
67.14 	(6) any additional information requested by the foundation.
67.15 	(c) In awarding grants under this subdivision, the foundation shall give weight to 
67.16 	applications from organizations that demonstrate:
67.17 	(1) a history of successful provision of the services listed in paragraph (a); and
67.18 	(2) a history of successful fund-raising from private sources for such services.
67.19 	(d) In evaluating grant applications, the foundation shall not consider the composition 
67.20 	of a community initiative's governing board.
67.21 	(e) Grant funds may be used by a community initiative for the following purposes:
67.22 	(1) operating costs, including but not limited to staff, office space, computers, software, 
67.23 	and Web development and maintenance services;
67.24 	(2) program costs;
67.25 	(3) travel within Minnesota;
67.26 	(4) consultants directly related to and necessary for delivering services listed in paragraph 
67.27 	(a); and
67.28 	(5) capacity building.
67.29 		Subd. 5.Reports to the legislature. By January 15, 2019, and each January 15 thereafter 
67.30 	through 2022, the commissioner must submit a report to the chairs and ranking minority 
68.1 	members of the house of representatives and the senate committees with jurisdiction over 
68.2 	economic development that details the use of grant funds. This report must include data on 
68.3 	the number of individuals served and, to the extent practical, measures of progress toward 
68.4 	achieving the outcomes stated in subdivision 4, paragraph (b), clause (5).

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

69.19 	Sec. 6. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter 
69.20 	189, article 7, section 8, is amended to read:
69.21 	Sec. 14. ASSIGNED RISK TRANSFER.
 69.22 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
69.23 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
69.24 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
69.25 	amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer 
69.26 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
69.27 	paragraph (a), clause (1). This is a onetime transfer.
69.28 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
69.29 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
69.30 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
69.31 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, 
69.32 	to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. 
69.33 	This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, 
70.1 	subdivision 1, paragraph (a), clause (1), but after the transfer transfers authorized in paragraph
70.2 	paragraphs (a) and (f). The total amount authorized for all transfers under this paragraph 
70.3 	must not exceed $24,100,000. This paragraph expires the day following the transfer in which 
70.4 	the total amount transferred under this paragraph to the Minnesota minerals 21st century 
70.5 	fund equals $24,100,000.
70.6 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
70.7 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
70.8 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
70.9 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
70.10 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
70.11 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a 
70.12 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
70.13 	fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 
70.14 	15. Both the transfer and appropriation under this paragraph are onetime.
70.15 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an 
70.16 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
70.17 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
70.18 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
70.19 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
70.20 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a 
70.21 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
70.22 	fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 
70.23 	15. Both the transfer and appropriation under this paragraph are onetime.
70.24 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 
70.25 	management and budget shall transfer to the general fund, any unencumbered or unexpended 
70.26 	balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or 
70.27 	the date the commissioner of commerce determines that an excess surplus in the assigned 
70.28 	risk plan does not exist, whichever occurs earlier.
70.29 	(f) By June 30, 2017, and each year thereafter, if the commissioner of commerce 
70.30 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
70.31 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
70.32 	budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each year, 
70.33 	to the rural policy and development center fund under Minnesota Statutes, section 116J.4221. 
70.34 	This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes, 
70.35 	section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all 
71.1 	transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day 
71.2 	following the transfer in which the total amount transferred under this paragraph to the rural 
71.3 	policy and development center fund equals $2,000,000.

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

71.5 	Sec. 7. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is 
71.6 	amended to read:

71.7	Subd. 6.Vocational Rehabilitation

71.8	Appropriations by Fund
	
71.9	General
	22,611,000
	21,611,000
	
71.10
71.11	Workforce 
Development
	7,830,000
	7,830,000
	
71.12 	(a) $10,800,000 each year is from the general 
71.13 	fund for the state's vocational rehabilitation 
71.14 	program under Minnesota Statutes, chapter 
71.15 	268A.
71.16 	(b) $2,261,000 each year is from the general 
71.17 	fund for grants to centers for independent 
71.18 	living under Minnesota Statutes, section 
71.19 	268A.11.
71.20 	(c) $5,745,000 each year from the general fund 
71.21 	and $6,830,000 each year from the workforce 
71.22 	development fund are for extended 
71.23 	employment services for persons with severe 
71.24 	disabilities under Minnesota Statutes, section 
71.25 	268A.15.
71.26 	(d) $250,000 in fiscal year 2016 and $250,000 
71.27 	in fiscal year 2017 are for rate increases to 
71.28 	providers of extended employment services 
71.29 	for persons with severe disabilities under 
71.30 	Minnesota Statutes, section 268A.15. This 
71.31 	appropriation is added to the agency's base.
71.32 	(e) $2,555,000 each year is from the general 
71.33 	fund for grants to programs that provide 
72.1 	employment support services to persons with 
72.2 	mental illness under Minnesota Statutes, 
72.3 	sections 268A.13 and 268A.14.
72.4 	(f) $1,000,000 each year is from the workforce 
72.5 	development fund for grants under Minnesota 
72.6 	Statutes, section 268A.16, for employment 
72.7 	services for persons, including transition-aged 
72.8 	youth, who are deaf, deafblind, or 
72.9 	hard-of-hearing. If the amount in the first year 
72.10 	is insufficient, the amount in the second year 
72.11 	is available in the first year.
72.12 	(g) $1,000,000 in fiscal year 2016 is for a 
72.13 	grant to Assistive Technology of Minnesota, 
72.14 	a statewide nonprofit organization that is 
72.15 	exclusively dedicated to the issues of access 
72.16 	to and the acquisition of assistive technology. 
72.17 	The purpose of the grant is to acquire assistive 
72.18 	technology and to work in tandem with 
72.19 	individuals using this technology to create 
72.20 	career paths Assistive Technology of 
72.21 	Minnesota must use the funds to provide 
72.22 	low-interest loans to individuals of all ages 
72.23 	and types of disabilities to purchase assistive 
72.24 	technology and employment-related 
72.25 	equipment. This is a onetime appropriation.
72.26 	(h) For purposes of this subdivision, 
72.27 	Minnesota Diversified Industries, Inc. is an 
72.28 	eligible provider of services for persons with 
72.29 	severe disabilities under Minnesota Statutes, 
72.30 	section 268A.15.

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

72.32 	Sec. 8. Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read:
72.33 		Subd. 3.Qualification requirements. To qualify for assistance under this section, a 
72.34 	business must:
73.1 	(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
73.2 	(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of 
73.3 	Roosevelt;
73.4 	(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of 
73.5 	Malmo, or township of Lakeside; or
73.6 	(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of 
73.7 	East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
73.8 	(2) document a reduction of at least ten five percent in gross receipts in any two-year 
73.9 	period since 2010; and
73.10 	(3) be a business in one of the following industries, as defined within the North American 
73.11 	Industry Classification System: accommodation, restaurants, bars, amusement and recreation, 
73.12 	food and beverages retail, sporting goods, miscellaneous retail, general retail, museums, 
73.13 	historical sites, health and personal care, gas station, general merchandise, business and 
73.14 	professional membership, movies, or nonstore retailer, as determined by Mille Lacs County 
73.15 	in consultation with the commissioner of employment and economic development.

73.16 	Sec. 9. Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to 
73.17 	read:

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

73.21 	Sec. 10. GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.
 73.22 		Subdivision 1.Creation. The Minnesota Design Center at the University of Minnesota 
73.23 	shall partner with relevant organizations in selected communities within greater Minnesota 
73.24 	to establish a pilot project for community design. The pilot project shall identify current 
73.25 	and future opportunities for rural development, create designs, seek funding from existing 
73.26 	sources, and assist with the implementation of economically, environmentally, and culturally 
73.27 	sensitive projects that respond to current community conditions, needs, capabilities, and 
73.28 	aspirations in support of the selected communities. For the purposes of this section, "greater 
73.29 	Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault, 
73.30 	Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley, 
73.31 	Steele, Wabasha, Waseca, Watonwan, and Winona.
74.1 		Subd. 2.Community selection. In order to be considered for inclusion in the pilot 
74.2 	project, communities with fewer than 12,000 residents within the counties listed in 
74.3 	subdivision 1 must submit a letter of interest to the Minnesota Design Center. The Minnesota 
74.4 	Design Center may choose up to ten communities for participation in the pilot project.
74.5 		Subd. 3.Pilot project activities. Among other activities, the Minnesota Design Center, 
74.6 	in partnership with relevant organizations within the selected communities, shall:
74.7 	(1) assess community capacity to engage in design, development, and implementation;
74.8 	(2) create community and project designs that respond to a community's culture and 
74.9 	needs, reinforce its identity as a special place, and support its future aspirations;
74.10 	(3) create an implementation strategy; and
74.11 	(4) build capacity to implement design work by identifying potential funding strategies 
74.12 	and sources and assisting in grant writing to secure funding.

74.13 	Sec. 11. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT; 
74.14 	MANDATED REPORT HOLIDAY.
 74.15 	(a) Notwithstanding any law to the contrary, any report required by state law from the 
74.16 	Department of Employment and Economic Development that is due in fiscal year 2018 or 
74.17 	2019 is optional. The commissioner of employment and economic development may produce 
74.18 	any reports at the commissioner's discretion or as may be required by federal law.
74.19 	(b) This section does not apply to workforce programs outcomes reporting under 
74.20 	Minnesota Statutes, section 116L.98.

74.21 	Sec. 12. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA 
74.22 	INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 74.23 	Notwithstanding Minnesota Statutes, section 116J.8731, subdivision 2, a home rule 
74.24 	charter or statutory city, county, or town that has uncommitted money received from 
74.25 	repayment of funds awarded under Minnesota Statutes, section 116J.8731, may choose to 
74.26 	transfer 20 percent of the balance of that money to the state general fund before June 30, 
74.27 	2018. A home rule charter or statutory city, county, or town that does so may then use the 
74.28 	remaining 80 percent of the uncommitted money for any purposes not otherwise forbidden 
74.29 	by law other than Minnesota Statutes, section 116J.8731, but must submit a report by January 
74.30 	20, 2020, to the chairs and ranking minority members of the house of representatives and 
74.31 	the senate committees with jurisdiction over economic development that details how the 
74.32 	money was used.

75.1 	Sec. 13. EXISTING DEPUTY COMMISSIONERS MAY SERVE UNTIL JANUARY 
75.2 	1, 2019.
 75.3 	All existing deputy commissioners under Minnesota Statutes, section 116J.01, may serve 
75.4 	until January 1, 2019. Vacancies that occur in these positions before January 1, 2019, must 
75.5 	not be filled.

75.6 	Sec. 14. REPEALER.
 75.7 	Minnesota Statutes 2016, section 116J.549, is repealed.

75.8 	ARTICLE 4
75.9 	IRON RANGE RESOURCES AND REHABILITATION POLICY

75.10 	Section 1. Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:
75.11 		Subdivision 1.Definitions. As used in this section and section 3.736 the terms defined 
75.12 	in this section have the meanings given them.
75.13 	(1) "State" includes each of the departments, boards, agencies, commissions, courts, and 
75.14 	officers in the executive, legislative, and judicial branches of the state of Minnesota and 
75.15 	includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher 
75.16 	Education, the Higher Education Facilities Authority, the Health Technology Advisory 
75.17 	Committee, the Armory Building Commission, the Zoological Board, the Department of 
75.18 	Iron Range Resources and Rehabilitation Board, the Minnesota Historical Society, the State 
75.19 	Agricultural Society, the University of Minnesota, the Minnesota State Colleges and 
75.20 	Universities, state hospitals, and state penal institutions. It does not include a city, town, 
75.21 	county, school district, or other local governmental body corporate and politic.
75.22 	(2) "Employee of the state" means all present or former officers, members, directors, or 
75.23 	employees of the state, members of the Minnesota National Guard, members of a bomb 
75.24 	disposal unit approved by the commissioner of public safety and employed by a municipality 
75.25 	defined in section 466.01 when engaged in the disposal or neutralization of bombs or other 
75.26 	similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the 
75.27 	municipality but within the state, or persons acting on behalf of the state in an official 
75.28 	capacity, temporarily or permanently, with or without compensation. It does not include 
75.29 	either an independent contractor except, for purposes of this section and section 3.736 only, 
75.30 	a guardian ad litem acting under court appointment, or members of the Minnesota National 
75.31 	Guard while engaged in training or duty under United States Code, title 10, or title 32, 
75.32 	section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding 
76.1 	sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee 
76.2 	of the state" includes a district public defender or assistant district public defender in the 
76.3 	Second or Fourth Judicial District, a member of the Health Technology Advisory Committee, 
76.4 	and any officer, agent, or employee of the state of Wisconsin performing work for the state 
76.5 	of Minnesota pursuant to a joint state initiative.
76.6 	(3) "Scope of office or employment" means that the employee was acting on behalf of 
76.7 	the state in the performance of duties or tasks lawfully assigned by competent authority.
76.8 	(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

76.9 	Sec. 2. Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:
76.10 		Subd. 3.Exclusions. Without intent to preclude the courts from finding additional cases 
76.11 	where the state and its employees should not, in equity and good conscience, pay 
76.12 	compensation for personal injuries or property losses, the legislature declares that the state 
76.13 	and its employees are not liable for the following losses:
76.14 	(a) a loss caused by an act or omission of a state employee exercising due care in the 
76.15 	execution of a valid or invalid statute or rule;
76.16 	(b) a loss caused by the performance or failure to perform a discretionary duty, whether 
76.17 	or not the discretion is abused;
76.18 	(c) a loss in connection with the assessment and collection of taxes;
76.19 	(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does 
76.20 	not abut a publicly owned building or a publicly owned parking lot, except when the condition 
76.21 	is affirmatively caused by the negligent acts of a state employee;
76.22 	(e) a loss caused by wild animals in their natural state, except as provided in section 
76.23 	3.7371;
76.24 	(f) a loss other than injury to or loss of property or personal injury or death;
76.25 	(g) a loss caused by the condition of unimproved real property owned by the state, which 
76.26 	means land that the state has not improved, state land that contains idled or abandoned mine 
76.27 	pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither 
76.28 	affixed nor improved;
76.29 	(h) a loss involving or arising out of the use or operation of a recreational motor vehicle, 
76.30 	as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as 
76.31 	defined in section 160.02, except that the state is liable for conduct that would entitle a 
76.32 	trespasser to damages against a private person;
77.1 	(i) a loss incurred by a user arising from the construction, operation, or maintenance of 
77.2 	the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the 
77.3 	construction, operation, maintenance, or administration of grants-in-aid trails as defined in 
77.4 	section 85.018, or for a loss arising from the construction, operation, or maintenance of a 
77.5 	water access site created by the Department of Iron Range Resources and Rehabilitation 
77.6 	Board, except that the state is liable for conduct that would entitle a trespasser to damages 
77.7 	against a private person. For the purposes of this clause, a water access site, as defined in 
77.8 	section 86A.04 or created by the commissioner of Iron Range resources and rehabilitation 
77.9 	Board, that provides access to an idled, water filled mine pit, also includes the entire water 
77.10 	filled area of the pit and, further, includes losses caused by the caving or slumping of the 
77.11 	mine pit walls;
77.12 	(j) a loss of benefits or compensation due under a program of public assistance or public 
77.13 	welfare, except if state compensation for loss is expressly required by federal law in order 
77.14 	for the state to receive federal grants-in-aid;
77.15 	(k) a loss based on the failure of a person to meet the standards needed for a license, 
77.16 	permit, or other authorization issued by the state or its agents;
77.17 	(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person 
77.18 	at a state hospital or state corrections facility where reasonable use of available appropriations 
77.19 	has been made to provide care;
77.20 	(m) loss, damage, or destruction of property of a patient or inmate of a state institution 
77.21 	except as provided under section 3.7381;
77.22 	(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;
77.23 	(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to 
77.24 	increase dissolved oxygen or maintain open water on the ice of public waters, that is operated 
77.25 	under a permit issued by the commissioner of natural resources;
77.26 	(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state 
77.27 	is liable for conduct that would entitle a trespasser to damages against a private person;
77.28 	(q) a loss arising out of a person's use of a logging road on public land that is maintained 
77.29 	exclusively to provide access to timber on that land by harvesters of the timber, and is not 
77.30 	signed or otherwise held out to the public as a public highway; and
77.31 	(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the 
77.32 	Minnesota National Guard or the Department of Military Affairs, except that the state is 
77.33 	liable for conduct that would entitle a trespasser to damages against a private person.
78.1 	The state will not pay punitive damages.

78.2 	Sec. 3. Minnesota Statutes 2016, section 15.01, is amended to read:
78.3 	15.01 DEPARTMENTS OF THE STATE.
78.4 	The following agencies are designated as the departments of the state government: the 
78.5 	Department of Administration; the Department of Agriculture; the Department of Commerce; 
78.6 	the Department of Corrections; the Department of Education; the Department of Employment 
78.7 	and Economic Development; the Department of Health; the Department of Human Rights;
78.8 	the Department of Iron Range Resources and Rehabilitation; the Department of Labor and 
78.9 	Industry; the Department of Management and Budget; the Department of Military Affairs; 
78.10 	the Department of Natural Resources; the Department of Public Safety; the Department of 
78.11 	Human Services; the Department of Revenue; the Department of Transportation; the 
78.12 	Department of Veterans Affairs; and their successor departments.

78.13 	Sec. 4. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
78.14 		Subd. 7.Department of Iron Range Resources and Rehabilitation Board. After 
78.15 	seeking a recommendation from the Legislative Commission on Iron Range Resources and 
78.16 	Rehabilitation, the commissioner of Iron Range resources and rehabilitation Board may 
78.17 	purchase insurance it considersthe commissioner deems necessary and appropriate to insure 
78.18 	facilities operated by the board commissioner.

78.19 	Sec. 5. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
78.20 		Subd. 3.Group II salary limits. The salary for a position listed in this subdivision shall 
78.21 	not exceed 120 percent of the salary of the governor. This limit must be adjusted annually 
78.22 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
78.23 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
78.24 	second prior year to October of the immediately prior year. The commissioner of management 
78.25 	and budget must publish the limit on the department's Web site. This subdivision applies 
78.26 	to the following positions:
78.27 	Executive director of Gambling Control Board;
78.28 	Commissioner, of Iron Range resources and rehabilitation Board;
78.29 	Commissioner, Bureau of Mediation Services;
78.30 	Ombudsman for Mental Health and Developmental Disabilities;
78.31 	Chair, Metropolitan Council;
79.1 	School trust lands director;
79.2 	Executive director of pari-mutuel racing; and
79.3 	Commissioner, Public Utilities Commission.

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

79.16 	Sec. 7. Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:
79.17 		Subdivision 1.Advisory council created. The Cuyuna Country State Recreation Area 
79.18 	Citizens Advisory Council is established. Membership on the advisory council shall include:
79.19 	(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;
79.20 	(2) a representative of the Croft Mine Historical Park Joint Powers Board;
79.21 	(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked 
79.22 	as a miner in the local area;
79.23 	(4) a representative of the Crow Wing County Board;
79.24 	(5) an elected state official;
79.25 	(6) a representative of the Grand Rapids regional office of the Department of Natural 
79.26 	Resources;
79.27 	(7) a designee of the commissioner of Iron Range resources and rehabilitation Board;
79.28 	(8) a designee of the local business community selected by the area chambers of 
79.29 	commerce;
80.1 	(9) a designee of the local environmental community selected by the Crow Wing County 
80.2 	District 5 commissioner;
80.3 	(10) a designee of a local education organization selected by the Crosby-Ironton School 
80.4 	Board;
80.5 	(11) a designee of one of the recreation area user groups selected by the Cuyuna Range 
80.6 	Chamber of Commerce; and
80.7 	(12) a member of the Cuyuna Country Heritage Preservation Society.

80.8 	Sec. 8. Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:
80.9 		Subd. 1a.Definitions. For the purposes of this chapter, the following terms have the 
80.10 	meanings given to them in this subdivision.
80.11 	(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.
80.12 	(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02, 
80.13 	subdivision 5.
80.14 	(c) "Environmental assessment worksheet" means a brief document which is designed 
80.15 	to set out the basic facts necessary to determine whether an environmental impact statement 
80.16 	is required for a proposed action.
80.17 	(d) "Governmental action" means activities, including projects wholly or partially 
80.18 	conducted, permitted, assisted, financed, regulated, or approved by units of government 
80.19 	including the federal government.
80.20 	(e) "Governmental unit" means any state agency and any general or special purpose unit 
80.21 	of government in the state including, but not limited to, watershed districts organized under 
80.22 	chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic 
80.23 	development authorities established under sections 469.090 to 469.108, but not including 
80.24 	courts, school districts, the Department of Iron Range Resources and Rehabilitation, and 
80.25 	regional development commissions other than the Metropolitan Council.

80.26 	Sec. 9. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:
80.27 		Subd. 2.Use of fund. The commissioner shall use money in the fund to make loans or 
80.28 	equity investments in mineral, steel, or any other industry processing, production, 
80.29 	manufacturing, or technology project that would enhance the economic diversification and 
80.30 	that is located within the taconite relief tax relief area as defined under section 273.134. 
80.31 	The commissioner must, prior to making any loans or equity investments and after 
81.1 	consultation with industry and public officials, develop a strategy for making loans and 
81.2 	equity investments that assists the taconite relief area in retaining and enhancing its economic 
81.3 	competitiveness. Money in the fund may also be used to pay for the costs of carrying out 
81.4 	the commissioner's due diligence duties under this section.

81.5 	Sec. 10. Minnesota Statutes 2016, section 116J.424, is amended to read:
81.6 	116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
81.7 	CONTRIBUTION.
81.8 	The commissioner of the Iron Range resources and rehabilitation Board with approval 
81.9 	by the board, after consultation with the Legislative Commission on Iron Range Resources 
81.10 	and Rehabilitation and complying with the requirements for expenditures under section 
81.11 	298.22, may provide an equal match for any loan or equity investment made for a project 
81.12 	located in the tax relief area defined in section 273.134, paragraph (b), by the Minnesota 
81.13 	21st century fund created by section 116J.423. The match may be in the form of a loan or 
81.14 	equity investment, notwithstanding whether the fund makes a loan or equity investment. 
81.15 	The state shall not acquire an equity interest because of an equity investment or loan by the 
81.16 	board and the board at its sole discretion shall commissioner of Iron Range resources and 
81.17 	rehabilitation and the commissioner, after consultation with the commission, shall have sole 
81.18 	discretion to decide what interest itthe fund acquires in a project. The commissioner of 
81.19 	employment and economic development may require a commitment from the board
81.20 	commissioner of Iron Range resources and rehabilitation to make the match prior to 
81.21 	disbursing money from the fund.

81.22 	Sec. 11. Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:
81.23 		Subd. 3.Subsidy agreement. (a) A recipient must enter into a subsidy agreement with 
81.24 	the grantor of the subsidy that includes:
81.25 	(1) a description of the subsidy, including the amount and type of subsidy, and type of 
81.26 	district if the subsidy is tax increment financing;
81.27 	(2) a statement of the public purposes for the subsidy;
81.28 	(3) measurable, specific, and tangible goals for the subsidy;
81.29 	(4) a description of the financial obligation of the recipient if the goals are not met;
81.30 	(5) a statement of why the subsidy is needed;
82.1 	(6) a commitment to continue operations in the jurisdiction where the subsidy is used 
82.2 	for at least five years after the benefit date;
82.3 	(7) the name and address of the parent corporation of the recipient, if any; and
82.4 	(8) a list of all financial assistance by all grantors for the project.
82.5 	(b) Business subsidies in the form of grants must be structured as forgivable loans. For 
82.6 	other types of business subsidies, the agreement must state the fair market value of the 
82.7 	subsidy to the recipient, including the value of conveying property at less than a fair market 
82.8 	price, or other in-kind benefits to the recipient.
82.9 	(c) If a business subsidy benefits more than one recipient, the grantor must assign a 
82.10 	proportion of the business subsidy to each recipient that signs a subsidy agreement. The 
82.11 	proportion assessed to each recipient must reflect a reasonable estimate of the recipient's 
82.12 	share of the total benefits of the project.
82.13 	(d) The state or local government agency and the recipient must both sign the subsidy 
82.14 	agreement and, if the grantor is a local government agency, the agreement must be approved 
82.15 	by the local elected governing body, except for the St. Paul Port Authority and a seaway 
82.16 	port authority.
82.17 	(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be 
82.18 	authorized to move from the jurisdiction where the subsidy is used within the five-year 
82.19 	period after the benefit date if, after a public hearing, the grantor approves the recipient's 
82.20 	request to move. For the purpose of this paragraph, if the grantor is a state government 
82.21 	agency other than the Department of Iron Range Resources and Rehabilitation Board, 
82.22 	"jurisdiction" means a city or township.

82.23 	Sec. 12. Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:
82.24 		Subd. 5.Public notice and hearing. (a) Before granting a business subsidy that exceeds 
82.25 	$500,000 for a state government grantor and $150,000 for a local government grantor, the 
82.26 	grantor must provide public notice and a hearing on the subsidy. A public hearing and notice 
82.27 	under this subdivision is not required if a hearing and notice on the subsidy is otherwise 
82.28 	required by law.
82.29 	(b) Public notice of a proposed business subsidy under this subdivision by a state 
82.30 	government grantor, other than the commissioner of Iron Range resources and rehabilitation 
82.31 	Board, must be published in the State Register. Public notice of a proposed business subsidy 
82.32 	under this subdivision by a local government grantor or the commissioner of Iron Range 
82.33 	resources and rehabilitation Board must be published in a local newspaper of general 
83.1 	circulation. The public notice must identify the location at which information about the 
83.2 	business subsidy, including a summary of the terms of the subsidy, is available. Published 
83.3 	notice should be sufficiently conspicuous in size and placement to distinguish the notice 
83.4 	from the surrounding text. The grantor must make the information available in printed paper 
83.5 	copies and, if possible, on the Internet. The government agency must provide at least a 
83.6 	ten-day notice for the public hearing.
83.7 	(c) The public notice must include the date, time, and place of the hearing.
83.8 	(d) The public hearing by a state government grantor other than the commissioner of 
83.9 	Iron Range resources and rehabilitation Board must be held in St. Paul.
83.10 	(e) If more than one nonstate grantor provides a business subsidy to the same recipient, 
83.11 	the nonstate grantors may designate one nonstate grantor to hold a single public hearing 
83.12 	regarding the business subsidies provided by all nonstate grantors. For the purposes of this 
83.13 	paragraph, "nonstate grantor" includes the commissioner of Iron Range resources and 
83.14 	rehabilitation Board.
83.15 	(f) The public notice of any public meeting about a business subsidy agreement, including 
83.16 	those required by this subdivision and by subdivision 4, must include notice that a person 
83.17 	with residence in or the owner of taxable property in the granting jurisdiction may file a 
83.18 	written complaint with the grantor if the grantor fails to comply with sections 116J.993 to 
83.19 	116J.995, and that no action may be filed against the grantor for the failure to comply unless 
83.20 	a written complaint is filed.

83.21 	Sec. 13. Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:
83.22 		Subd. 7.Reports by recipients to grantors. (a) A business subsidy grantor must monitor 
83.23 	the progress by the recipient in achieving agreement goals.
83.24 	(b) A recipient must provide information regarding goals and results for two years after 
83.25 	the benefit date or until the goals are met, whichever is later. If the goals are not met, the 
83.26 	recipient must continue to provide information on the subsidy until the subsidy is repaid. 
83.27 	The information must be filed on forms developed by the commissioner in cooperation with 
83.28 	representatives of local government. Copies of the completed forms must be sent to the 
83.29 	local government agency that provided the subsidy or to the commissioner if the grantor is 
83.30 	a state agency. If the commissioner of Iron Range resources and rehabilitation Board is the 
83.31 	grantor, the copies must be sent to the board. The report must include:
83.32 	(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy 
83.33 	is tax increment financing;
84.1 	(2) the hourly wage of each job created with separate bands of wages;
84.2 	(3) the sum of the hourly wages and cost of health insurance provided by the employer 
84.3 	with separate bands of wages;
84.4 	(4) the date the job and wage goals will be reached;
84.5 	(5) a statement of goals identified in the subsidy agreement and an update on achievement 
84.6 	of those goals;
84.7 	(6) the location of the recipient prior to receiving the business subsidy;
84.8 	(7) the number of employees who ceased to be employed by the recipient when the 
84.9 	recipient relocated to become eligible for the business subsidy;
84.10 	(8) why the recipient did not complete the project outlined in the subsidy agreement at 
84.11 	their previous location, if the recipient was previously located at another site in Minnesota;
84.12 	(9) the name and address of the parent corporation of the recipient, if any;
84.13 	(10) a list of all financial assistance by all grantors for the project; and
84.14 	(11) other information the commissioner may request.
84.15 	A report must be filed no later than March 1 of each year for the previous year. The local 
84.16 	agency and the commissioner of Iron Range resources and rehabilitation Board must forward 
84.17 	copies of the reports received by recipients to the commissioner by April 1.
84.18 	(c) Financial assistance that is excluded from the definition of "business subsidy" by 
84.19 	section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting 
84.20 	requirements of this subdivision, except that the report of the recipient must include instead:
84.21 	(1) the type, public purpose, and amount of the financial assistance, and type of district 
84.22 	if the assistance is tax increment financing;
84.23 	(2) progress towards meeting goals stated in the assistance agreement and the public 
84.24 	purpose of the assistance;
84.25 	(3) if the agreement includes job creation, the hourly wage of each job created with 
84.26 	separate bands of wages;
84.27 	(4) if the agreement includes job creation, the sum of the hourly wages and cost of health 
84.28 	insurance provided by the employer with separate bands of wages;
84.29 	(5) the location of the recipient prior to receiving the assistance; and
84.30 	(6) other information the grantor requests.
85.1 	(d) If the recipient does not submit its report, the local government agency must mail 
85.2 	the recipient a warning within one week of the required filing date. If, after 14 days of the 
85.3 	postmarked date of the warning, the recipient fails to provide a report, the recipient must 
85.4 	pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The 
85.5 	maximum penalty shall not exceed $1,000.

85.6 	Sec. 14. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
85.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
85.8 	the meanings given them in this subdivision.
85.9 	(b) "Area development rate" means a rate schedule established by a utility that provides 
85.10 	customers within an area development zone service under a base utility rate schedule, except 
85.11 	that charges may be reduced from the base rate as agreed upon by the utility and the customer 
85.12 	consistent with this section.
85.13 	(c) "Area development zone" means a contiguous or noncontiguous area designated by 
85.14 	an authority or municipality for development or redevelopment and within which one of 
85.15 	the following conditions exists:
85.16 	(1) obsolete buildings not suitable for improvement or conversion or other identified 
85.17 	hazards to the health, safety, and general well-being of the community;
85.18 	(2) buildings in need of substantial rehabilitation or in substandard condition; or
85.19 	(3) low values and damaged investments.
85.20 	(d) "Authority" means a rural development financing authority established under sections 
85.21 	469.142 to 469.151; a housing and redevelopment authority established under sections 
85.22 	469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an 
85.23 	economic development authority established under sections 469.090 to 469.108; a 
85.24 	redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron 
85.25 	Range resources and rehabilitation Board established under section 298.22; a municipality 
85.26 	that is administering a development district created under sections 469.124 to 469.133 or 
85.27 	any special law; a municipality that undertakes a project under sections 469.152 to 469.165, 
85.28 	except a town located outside the metropolitan area as defined in section 473.121, subdivision 
85.29 	2, or with a population of 5,000 persons or less; or a municipality that exercises the powers 
85.30 	of a port authority under any general or special law.
85.31 	(e) "Municipality" means a city, however organized, and, with respect to a project 
85.32 	undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 
85.33 	sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
86.1 	to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, 
86.2 	also includes any county.

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

86.17 	Sec. 16. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
86.18 		Subd. 8.Municipality. "Municipality" means a city, town, or township located in whole 
86.19 	or part within the area. If a municipality is located partly within and partly without the area, 
86.20 	the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to 
86.21 	taxation or taxing jurisdiction within the municipality are to the property or portion thereof 
86.22 	that is located in that portion of the municipality within the area, except that the fiscal 
86.23 	capacity of the municipality must be computed upon the basis of the valuation and population 
86.24 	of the entire municipality. A municipality shall be excluded from the area if its municipal 
86.25 	comprehensive zoning and planning policies conscientiously exclude most 
86.26 	commercial-industrial development, for reasons other than preserving an agricultural use. 
86.27 	The commissioner of Iron Range resources and rehabilitation Board and the commissioner 
86.28 	of revenue shall jointly make this determination annually and shall notify those municipalities 
86.29 	that are ineligible to participate in the tax base sharing program provided in this chapter for 
86.30 	the following year. Before making the determination, the commissioner of Iron Range 
86.31 	resources and rehabilitation must consult the Legislative Commission on Iron Range 
86.32 	Resources and Rehabilitation.

87.1 	Sec. 17. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
87.2 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
87.3 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
87.4 	rehabilitation Board, after consultation with the Legislative Commission on Iron Range 
87.5 	Resources and Rehabilitation, to be used for the purposes of the Iron Range school 
87.6 	consolidation and cooperatively operated school account under section 298.28, subdivision 
87.7 	7a.
87.8 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
87.9 	Iron Range resources and rehabilitation Board, after consultation with the Legislative 
87.10 	Commission on Iron Range Resources and Rehabilitation, has certified by June 30 that the 
87.11 	Iron Range school consolidation and cooperatively operated account has insufficient funds 
87.12 	to make payments as authorized under section 298.28, subdivision 7a.

87.13 	Sec. 18. Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:
87.14 		Subd. 8.Certification of values; payment. The administrative auditor shall determine 
87.15 	for each county the difference between the total levy on distribution value pursuant to 
87.16 	subdivision 3, clause (1), including the school fund allocation within the county and the 
87.17 	total tax on contribution value pursuant to subdivision 7, within the county. On or before 
87.18 	May 16 of each year, the administrative auditor shall certify the differences so determined 
87.19 	and the county's portion of the school fund allocation to each county auditor. In addition, 
87.20 	the administrative auditor shall certify to those county auditors for whose county the total 
87.21 	tax on contribution value exceeds the total levy on distribution value the settlement the 
87.22 	county is to make to the other counties of the excess of the total tax on contribution value 
87.23 	over the total levy on distribution value in the county. On or before June 15 and November 
87.24 	15 of each year, each county treasurer in a county having a total tax on contribution value 
87.25 	in excess of the total levy on distribution value shall pay one-half of the excess to the other 
87.26 	counties in accordance with the administrative auditor's certification. On or before June 15 
87.27 	and November 15 of each year, each county treasurer shall pay to the administrative auditor 
87.28 	that county's share of the school fund allocation. On or before December 1 of each year, 
87.29 	the administrative auditor shall pay the school fund allocation to the commissioner of Iron 
87.30 	Range resources and rehabilitation Board for deposit in the Iron Range school consolidation 
87.31 	and cooperatively operated account.

88.1 	Sec. 19. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
88.2 		Subdivision 1.Development. In any county where the county board by proper resolution 
88.3 	sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or 
88.4 	section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 
88.5 	with the approval of the board, after consultation with the Legislative Commission on Iron 
88.6 	Range Resources and Rehabilitation, may upon request of the county board assist said 
88.7 	county in carrying out any project for the long range development of its forest resources 
88.8 	through matching of funds or otherwise.

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

88.14 	Sec. 21. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
88.15 		Subd. 8.Commissioner. "Commissioner" means the commissioner of revenue of the 
88.16 	state of Minnesota, except that when used in sections 298.22 to 298.227 and 298.291 to 
88.17 	298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.

88.18 	Sec. 22. Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision 
88.19 	to read:
88.20 		Subd. 11.Commission. "Commission" means the Legislative Commission on Iron 
88.21 	Range Resources and Rehabilitation, as established under section 298.22.

88.22 	Sec. 23. Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:
88.23 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
88.24 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
88.25 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
88.26 	(1) five percent to the city or town within which the minerals or energy resources are 
88.27 	mined or extracted, or within which the concentrate was produced. If the mining and 
88.28 	concentration, or different steps in either process, are carried on in more than one taxing 
88.29 	district, the commissioner shall apportion equitably the proceeds among the cities and towns 
88.30 	by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction, 
88.31 	and the remainder to the concentrating plant and to the processes of concentration, and with 
89.1 	respect to each thereof giving due consideration to the relative extent of the respective 
89.2 	operations performed in each taxing district;
89.3 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
89.4 	section 298.282;
89.5 	(3) ten percent to the school district within which the minerals or energy resources are 
89.6 	mined or extracted, or within which the concentrate was produced. If the mining and 
89.7 	concentration, or different steps in either process, are carried on in more than one school 
89.8 	district, distribution among the school districts must be based on the apportionment formula 
89.9 	prescribed in clause (1);
89.10 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
89.11 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
89.12 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
89.13 	district indexes as follows: for each school district, its pupil units determined under section 
89.14 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
89.15 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
89.16 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
89.17 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
89.18 	portion of the distribution which its index bears to the sum of the indices for all school 
89.19 	districts that receive the distributions;
89.20 	(5) 20 percent to the county within which the minerals or energy resources are mined 
89.21 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
89.22 	or different steps in either process, are carried on in more than one county, distribution 
89.23 	among the counties must be based on the apportionment formula prescribed in clause (1), 
89.24 	provided that any county receiving distributions under this clause shall pay one percent of 
89.25 	its proceeds to the Range Association of Municipalities and Schools;
89.26 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed 
89.27 	as provided in sections 273.134 to 273.136;
89.28 	(7) five percent to the commissioner of Iron Range resources and rehabilitation Board
89.29 	for the purposes of section 298.22;
89.30 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
89.31 	(9) seven percent to the taconite environmental protection fund.
89.32 	The proceeds of the tax shall be distributed on July 15 each year.

90.1 	Sec. 24. Minnesota Statutes 2016, section 298.17, is amended to read:
90.2 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
90.3 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
90.4 	companies, corporations, and associations, however or for whatever purpose organized, 
90.5 	engaged in the business of mining or producing iron ore or other ores, when collected shall 
90.6 	be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 
90.7 	article X, section 3, in the manner following: 90 percent shall be deposited in the state 
90.8 	treasury and credited to the general fund of which four-ninths shall be used for the support 
90.9 	of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 
90.10 	by this section shall be deposited in the state treasury and credited to the general fund for 
90.11 	the general support of the university.
90.12 	(b) Of the money apportioned to the general fund by this section: (1) there is annually 
90.13 	appropriated and credited to the mining environmental and regulatory account in the special 
90.14 	revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax 
90.15 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
90.16 	Money in the mining environmental and regulatory account is appropriated annually to the 
90.17 	commissioner of natural resources to fund agency staff to work on environmental issues 
90.18 	and provide regulatory services for ferrous and nonferrous mining operations in this state. 
90.19 	Payment to the mining environmental and regulatory account shall be made by July 1 
90.20 	annually. The commissioner of natural resources shall execute an interagency agreement 
90.21 	with the Pollution Control Agency to assist with the provision of environmental regulatory 
90.22 	services such as monitoring and permitting required for ferrous and nonferrous mining 
90.23 	operations; (2) there is annually appropriated and credited to the Iron Range resources and 
90.24 	rehabilitation Board account in the special revenue fund an amount equal to that which 
90.25 	would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable 
90.26 	ton produced in the preceding calendar year, to be expended for the purposes of section 
90.27 	298.22; and (3) there is annually appropriated and credited to the Iron Range resources and 
90.28 	rehabilitation Board account in the special revenue fund for transfer to the Iron Range school 
90.29 	consolidation and cooperatively operated school account under section 298.28, subdivision 
90.30 	7a, an amount equal to that which would have been generated by a six cent tax imposed by 
90.31 	section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the 
90.32 	Iron Range resources and rehabilitation Board account shall be made by May 15 annually.
90.33 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
90.34 	provide environmental development grants to local governments located within any county 
90.35 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
91.1 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
91.2 	(b), or (ii) to provide economic development loans or grants to businesses located within 
91.3 	any such county, provided that the county board or an advisory group appointed by the 
91.4 	county board to provide recommendations on economic development shall make 
91.5 	recommendations to the commissioner of Iron Range resources and rehabilitation Board
91.6 	regarding the loans. Payment to the Iron Range resources and rehabilitation Board account 
91.7 	shall be made by May 15 annually.
91.8 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
91.9 	Koochiching County Economic Development Commission.

91.10 	Sec. 25. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
91.11 		Subdivision 1.The Office of Commissioner Department of Iron Range Resources 
91.12 	and Rehabilitation. (a) The Office of the Commissioner Department of Iron Range 
91.13 	Resources and Rehabilitation is created as an agency in the executive branch of state 
91.14 	government. The governor shall appoint the commissioner of Iron Range resources and 
91.15 	rehabilitation under section 15.06.
91.16 	(b) The commissioner may hold other positions or appointments that are not incompatible 
91.17 	with duties as commissioner of Iron Range resources and rehabilitation. The commissioner 
91.18 	may appoint a deputy commissioner. All expenses of the commissioner, including the 
91.19 	payment of staff and other assistance as may be necessary, must be paid out of the amounts 
91.20 	appropriated by section 298.28 or otherwise made available by law to the commissioner. 
91.21 	Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting 
91.22 	options available under section 471.345 when the commissioner determines it is in the best 
91.23 	interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.
91.24 	(c) When the commissioner determines that distress and unemployment exists or may 
91.25 	exist in the future in any county by reason of the removal of natural resources or a possibly 
91.26 	limited use of natural resources in the future and any resulting decrease in employment, the 
91.27 	commissioner may use whatever amounts of the appropriation made to the commissioner 
91.28 	of revenue in section 298.28 that are determined to be necessary and proper in the 
91.29 	development of the remaining resources of the county and in the vocational training and 
91.30 	rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 
91.31 	to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in 
91.32 	effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 
91.33 	section, "development of remaining resources" includes, but is not limited to, the promotion 
91.34 	of tourism.
92.1 	(d) The commissioner shall annually submit a budget proposal to the Legislative 
92.2 	Commission on Iron Range Resources and Rehabilitation. The commission must review 
92.3 	and make recommendations on the commissioner's budget proposal and the governor must 
92.4 	approve the commissioner's budget proposal as provided in subdivisions 1b, 1c, and 11. 
92.5 	This paragraph applies to transfers and expenditures from the following funds or accounts:
92.6 	(1) the taconite area environmental protection fund under section 298.223, including 
92.7 	grants under section 298.2961;
92.8 	(2) the Douglas J. Johnson economic protection trust fund under sections 298.291 to 
92.9 	298.298, including grants under section 298.2961;
92.10 	(3) the Iron Range resources and rehabilitation account in the special revenue fund;
92.11 	(4) the Iron Range school consolidation and cooperatively operated school account under 
92.12 	section 298.28, subdivision 7a, except as provided under paragraph (e);
92.13 	(5) the Minnesota 21st century fund match requirements under section 116J.424; and
92.14 	(6) the Iron Range higher education account under section 298.28, subdivision 9d.
92.15 	(e) Paragraph (d) does not apply to expenditures for:
92.16 	(1) the commissioner's obligations under sections 298.221; 298.2211, subdivision 4; 
92.17 	298.225, subdivision 2; and 298.292, subdivision 2, clause (3);
92.18 	(2) payments of amounts authorized under section 298.28, subdivisions 2, 3, 4, 5, 6, 7a, 
92.19 	clause (4), and 9a; or
92.20 	(3) other expenditures required to pay bonds or binding contracts entered into prior to 
92.21 	the effective date of this section.

92.22 	Sec. 26. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
92.23 		Subd. 1a.Legislative Commission on Iron Range Resources and Rehabilitation 
92.24 	Board. (a) The Legislative Commission on Iron Range Resources and Rehabilitation Board
92.25 	is created in the legislative branch. The commissioner shall consult the commission before 
92.26 	making expenditures or undertaking projects authorized under this chapter. The commission
92.27 	consists of the state senators and representatives elected from state senatorial or legislative 
92.28 	districts in which one-third or more of the residents reside in a taconite assistance area as 
92.29 	defined in section 273.1341. One additional state senator shall also be appointed by the 
92.30 	senate Subcommittee on Committees of the Committee on Rules and Administration. All 
92.31 	expenditures and projects made by the commissioner shall first be submitted to the board 
92.32 	for approval. The expenses of the board shall be paid by the state from the funds raised 
93.1 	pursuant to this section. Members of the board may be reimbursed for expenses in the 
93.2 	manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per diem 
93.3 	payments during the interims between legislative sessions in the manner provided in section 
93.4 	3.099, subdivision 1.
93.5 	The members shall be appointed in January of every odd-numbered year, and shall serve 
93.6 	until January of the next odd-numbered year. Vacancies on the board shall be filled in the 
93.7 	same manner as original members were chosen.
93.8 	(b) The most senior legislator will serve as temporary chair for the purposes of convening 
93.9 	the first meeting, at which members shall develop procedures to elect a chair. The chair 
93.10 	shall preside and convene meetings as often as necessary to conduct duties prescribed by 
93.11 	this chapter. The commission must meet at least quarterly to review the actions of the 
93.12 	commissioner.
93.13 	(c) The appointed legislative member shall serve on the commission for a two-year term, 
93.14 	beginning January 1 of each odd-numbered year. The appointed legislative member serves 
93.15 	until their successor is appointed and qualified.

93.16 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
93.17 	additional state senator shall be appointed under this section no later than July 1, 2018.

93.18 	Sec. 27. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
93.19 	read:
93.20 		Subd. 1b.Evaluation of proposed budgets and projects. (a) In evaluating budgets 
93.21 	proposed by the commissioner, the commission must consider factors including but not 
93.22 	limited to the extent to which the proposed budget:
93.23 	(1) contributes to increasing the effectiveness of promoting or managing Iron Range 
93.24 	economic and workforce development, community development, minerals and natural 
93.25 	resources development, and any other issue as determined by the commission; and
93.26 	(2) advances the strategic plan adopted under subdivision 1c.
93.27 	(b) In evaluating projects proposed by the commissioner, the commission must consider 
93.28 	factors including but not limited to:
93.29 	(1) whether, and the extent to which, an applicant could complete the proposed project 
93.30 	without funding from the commissioner;
93.31 	(2) job creation or retention goals for the proposed project, including but not limited to 
93.32 	wages and benefits; whether the jobs created are full time, part time, temporary, or permanent; 
94.1 	and whether the stated job creation or retention goals in the proposal can be adequately 
94.2 	measured using methods established by the commissioner;
94.3 	(3) how and to what extent the proposed project is expected to impact the economic 
94.4 	climate of the Iron Range resources and rehabilitation services area;
94.5 	(4) how the proposed project would meet match requirements, if any; and
94.6 	(5) whether the proposed project meets the written objectives, priorities, and policies 
94.7 	established by the commissioner.

94.8 	Sec. 28. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
94.9 	read:
94.10 		Subd. 1c.Strategic plan required. The commissioner, in consultation with the 
94.11 	commission, shall adopt a strategic plan for making expenditures including identifying the 
94.12 	priority areas for funding for the next six years. The strategic plan must be reviewed every 
94.13 	two years. The strategic plan must have clearly stated short- and long-term goals and 
94.14 	strategies for expenditures, provide measurable outcomes for expenditures, and determine 
94.15 	areas of emphasis for funding.

94.16 	Sec. 29. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
94.17 	read:
94.18 		Subd. 1d.Administrative and staff assistance. The Legislative Coordinating 
94.19 	Commission shall provide administrative and staff support to the commission. The 
94.20 	commissioner shall provide additional information and research assistance to the commission, 
94.21 	as requested by the commission.

94.22 	Sec. 30. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
94.23 	read:
94.24 		Subd. 1e.Expenses of the commission. All expenses of the commission, including the 
94.25 	payment of per diems and expenses under subdivision 1a must be paid out of the amounts 
94.26 	appropriated by section 298.28 or otherwise made available by law to the commissioner.

94.27 	Sec. 31. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
94.28 		Subd. 5a.Forest trust. The commissioner, upon approval by the board after consultation 
94.29 	with the commission, may purchase forest lands in the taconite assistance area defined in
94.30 	under section 273.1341 with funds specifically authorized for the purchase. The acquired 
95.1 	forest lands must be held in trust for the benefit of the citizens of the taconite assistance 
95.2 	area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed 
95.3 	and developed for recreation and economic development purposes. The commissioner, upon 
95.4 	approval by the board after consultation with the commission, may sell forest lands purchased 
95.5 	under this subdivision if the board findscommissioner determines that the sale advances 
95.6 	the purposes of the trust. Proceeds derived from the management or sale of the lands and 
95.7 	from the sale of timber or removal of gravel or other minerals from these forest lands shall 
95.8 	be deposited into an Iron Range Miners' Memorial Forest account that is established within 
95.9 	the state financial accounts. Funds may be expended from the account upon approval by 
95.10 	the board by the commissioner, after consultation with the commission, to purchase, manage, 
95.11 	administer, convey interests in, and improve the forest lands. With approval by the board,
95.12 	After consultation with the commission, the commissioner may transfer money in the Iron 
95.13 	Range Miners' Memorial Forest account may be transferred into the corpus of the Douglas 
95.14 	J. Johnson economic protection trust fund established under sections 298.291 to 298.294. 
95.15 	The property acquired under the authority granted by this subdivision and income derived 
95.16 	from the property or the operation or management of the property are exempt from taxation 
95.17 	by the state or its political subdivisions while held by the forest trust. The commissioner's 
95.18 	actions under this subdivision must at all times comply with the requirements for expenditures 
95.19 	under subdivisions 1, 1b, 1c, and 11.

95.20 	Sec. 32. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
95.21 		Subd. 6.Private entity participation. The boardcommissioner, after consultation with 
95.22 	the commission, may acquire an equity interest in any project for which it the commissioner
95.23 	provides funding. The commissioner may, after consultation with the commission, establish, 
95.24 	participate in the management of, and dispose of the assets of charitable foundations, 
95.25 	nonprofit limited liability companies, and nonprofit corporations associated with any project 
95.26 	for which it the commissioner provides funding, including specifically, but without limitation, 
95.27 	a corporation within the meaning of section 317A.011, subdivision 6. The commissioner's 
95.28 	actions under this subdivision must at all times comply with the requirements for expenditures 
95.29 	under subdivisions 1, 1b, 1c, and 11.

95.30 	Sec. 33. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
95.31 		Subd. 10.Sale or privatization of functions. The commissioner of Iron Range resources 
95.32 	and rehabilitation may not sell or privatize the Ironworld Discovery Center or Giants Ridge 
95.33 	Golf and Ski Resort without prior approval by the board first seeking the recommendation 
95.34 	of the commission.

96.1 	Sec. 34. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
96.2 		Subd. 11.Budgeting. The commissioner of Iron Range resources and rehabilitation 
96.3 	shall annually prepare a budget for operational expenditures, programs, and projects, and 
96.4 	submit it to the Iron Range Resources and Rehabilitation Board commission. After the 
96.5 	commission has been consulted, its recommendations and the commissioner's budget shall 
96.6 	be submitted to the governor. Once the budget is approved by the board and the governor, 
96.7 	the commissioner may spend money in accordance with the approved budget. If unanticipated 
96.8 	needs for funds arise outside of the annual budget process, the commissioner must consult 
96.9 	the commission and receive the governor's approval before spending the funds.

96.10 	Sec. 35. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
96.11 	read:
96.12 		Subd. 13.Grants and loans; requirements. (a) Prior to awarding any grants or approving 
96.13 	loans from any fund or account from which the commissioner has the authority under law 
96.14 	to expend money, the commissioner must evaluate applications based on criteria including, 
96.15 	but not limited to:
96.16 	(1) whether, and the extent to which, an applicant could complete a project without 
96.17 	funding from the commissioner;
96.18 	(2) job creation or retention goals for the project, including but not limited to wages and 
96.19 	benefits, and whether the jobs created are full time, part time, temporary, or permanent;
96.20 	(3) whether the applicant's stated job creation or retention goals can be adequately 
96.21 	measured using methods established by the commissioner;
96.22 	(4) how and to what extent the project proposed by the applicant is expected to impact 
96.23 	the economic climate of the Iron Range resources and rehabilitation services area;
96.24 	(5) how the applicant would meet match requirements, if any; and
96.25 	(6) whether the project for which a grant or loan application has been submitted meets 
96.26 	the written objectives, priorities, and policies established by the commissioner.
96.27 	(b) The commissioner, if appropriate, must include incentives in loan and grant award 
96.28 	agreements to promote and assist grant recipients in achieving the stated job creation and 
96.29 	retention objectives established by the commissioner.
96.30 	(c) For all loans and grants awarded from funds under the commissioner's authority 
96.31 	pursuant to this chapter, the commissioner must:
96.32 	(1) create and maintain a database for tracking loan and grant awards;
97.1 	(2) create and maintain an objective mechanism for measuring job creation and retention;
97.2 	(3) verify achievement of job creation and retention goals by grant and loan recipients;
97.3 	(4) monitor grant and loan awards to ensure that projects comply with applicable Iron 
97.4 	Range resources and rehabilitation policies; and
97.5 	(5) verify that grant or loan recipients have met applicable matching fund requirements.

97.6 	Sec. 36. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
97.7 	read:
97.8 		Subd. 14.Expenditures; taconite assistance area. Expenditures subject to the 
97.9 	requirements of this section may be expended only within or for the benefit of the taconite 
97.10 	assistance area defined in section 273.1341.

97.11 	Sec. 37. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to 
97.12 	read:
97.13 		Subd. 15.Reports to the legislature. The commissioner shall submit to the chairs and 
97.14 	ranking minority members of the senate and house of representatives committees with 
97.15 	primary jurisdiction over economic development policy an annual report of expenditures 
97.16 	under this section.

97.17 	Sec. 38. Minnesota Statutes 2016, section 298.221, is amended to read:
97.18 	298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
97.19 	(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant 
97.20 	to the terms of any contract entered into by the state under authority of section 298.22 and 
97.21 	any fees which may, in the discretion of the commissioner of Iron Range resources and 
97.22 	rehabilitation, be charged in connection with any project pursuant to that section as amended, 
97.23 	shall be deposited in the state treasury to the credit of the Iron Range resources and 
97.24 	rehabilitation Board account in the special revenue fund and are hereby appropriated for 
97.25 	the purposes of section 298.22.
97.26 	(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner 
97.27 	of the Iron Range resources and rehabilitation Board for payment of advertising contracts 
97.28 	if the commissioner determines that the merchandise can be used for special event prizes 
97.29 	or mementos at facilities operated by the board commissioner. Nothing in this paragraph 
97.30 	authorizes the commissioner or a member of the board commission to receive merchandise 
97.31 	for personal use.
98.1 	(c) All fees charged by the commissioner in connection with public use of the state-owned 
98.2 	ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived 
98.3 	by the commissioner from the operation or lease of those facilities and from the lease, sale, 
98.4 	or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be 
98.5 	deposited into an Iron Range resources and rehabilitation Board account that is created 
98.6 	within the state enterprise fund. All funds deposited in the enterprise fund account are 
98.7 	appropriated to the commissioner to be expended, subject to approval by the board, and 
98.8 	may only be used, as follows:
98.9 	(1) to pay costs associated with the construction, equipping, operation, repair, or 
98.10 	improvement of the Giants Ridge Recreation Area facilities or lands;
98.11 	(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs 
98.12 	associated with the financing of the facilities; and
98.13 	(3) to pay the costs of any other project authorized under section 298.22.

98.14 	Sec. 39. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
98.15 		Subd. 3.Project approval. All projects authorized by this section shall be submitted 
98.16 	by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 
98.17 	by the board To get approval of a project under this section, the commissioner must comply 
98.18 	with all the requirements for expenditures under section 298.22. Prior to the commencement 
98.19 	of a project involving the exercise by the commissioner of any authority of sections 469.174
98.20 	to 469.179, the governing body of each municipality in which any part of the project is 
98.21 	located and the county board of any county containing portions of the project not located 
98.22 	in an incorporated area shall by majority vote approve or disapprove the project. Any project 
98.23 	approved by the board and the applicable governing bodies, if any, together with detailed 
98.24 	information concerning the project, its costs, the sources of its funding, and the amount of 
98.25 	any bonded indebtedness to be incurred in connection with the project, shall be transmitted 
98.26 	to the governor, who shall approve, disapprove, or return the proposal for additional 
98.27 	consideration within 30 days of receipt. No project authorized under this section shall be 
98.28 	undertaken, and no obligations shall be issued and no tax increments shall be expended for 
98.29 	a project authorized under this section until the project has been approved by the governor.

98.30 	Sec. 40. Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:
98.31 		Subd. 6.Fee setting. Fees for admission to or use of facilities operated by the 
98.32 	commissioner of Iron Range resources and rehabilitation Board that have been established 
99.1 	according to prevailing market conditions and to recover operating costs need not be set by 
99.2 	rule.

99.3 	Sec. 41. Minnesota Statutes 2016, section 298.2212, is amended to read:
99.4 	298.2212 INVESTMENT OF FUNDS.
99.5 	All funds credited to the Iron Range resources and rehabilitation Board account in the 
99.6 	special revenue fund for the purposes of section 298.22 must be invested pursuant to law. 
99.7 	The net interest and dividends from the investments are included and become part of the 
99.8 	funds available for purposes of section 298.22.

99.9 	Sec. 42. Minnesota Statutes 2016, section 298.2214, subdivision 2, is amended to read:
99.10 		Subd. 2.Iron Range Higher Education Committee; membership. The members of 
99.11 	the committee shall consist of:
99.12 	(1) one member appointed by the governor;
99.13 	(2) one member appointed by the president of the University of Minnesota;
99.14 	(3) four members of the Legislative Commission on Iron Range Resources and 
99.15 	Rehabilitation Board appointed by the chair;
99.16 	(4) the commissioner of Iron Range resources and rehabilitation; and
99.17 	(5) the president of the Northeast Higher Education District or its successor.

99.18 	Sec. 43. Minnesota Statutes 2016, section 298.223, is amended to read:
99.19 	298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
99.20 		Subdivision 1.Creation; purposes. A fund called the taconite environmental protection 
99.21 	fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast 
99.22 	Minnesota located within the taconite assistance area defined in section 273.1341, that are 
99.23 	adversely affected by the environmentally damaging operations involved in mining taconite 
99.24 	and iron ore and producing iron ore concentrate and for the purpose of promoting the 
99.25 	economic development of northeast Minnesota. The taconite environmental protection fund 
99.26 	shall be used for the following purposes:
99.27 	(1) to initiate investigations into matters the commissioner of Iron Range resources and 
99.28 	rehabilitation Board determines are in need of study and which will determine the 
99.29 	environmental problems requiring remedial action;
100.1 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for 
100.2 	by state law;
100.3 	(3) local economic development projects but only if those projects are approved by the 
100.4 	board, and public works, including construction of sewer and water systems located within 
100.5 	the taconite assistance area defined in section 273.1341;
100.6 	(4) monitoring of mineral industry related health problems among mining employees; 
100.7 	and
100.8 	(5) local public works projects under section 298.227, paragraph (c).
100.9 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall be 
100.10 	administered by the commissioner of the Iron Range resources and rehabilitation Board. 
100.11 	The commissioner shall by September 1 of each year submit to the board a list of projects 
100.12 	to be funded from the taconite area environmental protection fund, with such supporting 
100.13 	information including description of the projects, plans, and cost estimates as may be 
100.14 	necessary. in compliance with the requirements for expenditures under section 298.22.
100.15 	(b) Each year no less than one-half of the amounts deposited into the taconite 
100.16 	environmental protection fund must be used for public works projects, including construction 
100.17 	of sewer and water systems, as specified under subdivision 1, clause (3). The Iron Range 
100.18 	Resources and Rehabilitation Board may waive the requirements of this paragraph.
100.19 	(c) Upon approval by the board, the list of projects approved under this subdivision shall 
100.20 	be submitted to the governor by November 1 of each year. By December 1 of each year, 
100.21 	the governor shall approve or disapprove, or return for further consideration, each project. 
100.22 	Funds for a project may be expended only upon approval of the project by the board and 
100.23 	the governor. The commissioner may submit supplemental projects to the board and governor 
100.24 	for approval at any time.
100.25 		Subd. 3.Appropriation. There is annually appropriated to the commissioner of Iron 
100.26 	Range resources and rehabilitation taconite area environmental protection funds necessary 
100.27 	to carry out approved projects and programs and the funds necessary for administration of 
100.28 	this section. Annual administrative costs, not including detailed engineering expenses for 
100.29 	the projects, shall not exceed five percent of the amount annually expended from the fund.
100.30 	Funds for the purposes of this section are provided by section 298.28, subdivision 11, 
100.31 	relating to the taconite area environmental protection fund.

101.1 	Sec. 44. Minnesota Statutes 2016, section 298.227, is amended to read:
101.2 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
101.3 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
101.4 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
101.5 	commissioner of Iron Range resources and rehabilitation Board in a separate taconite 
101.6 	economic development fund for each taconite and direct reduced ore producer. Money from 
101.7 	the fund for each producer shall be released by the commissioner after review by a joint 
101.8 	committee consisting of an equal number of representatives of the salaried employees and 
101.9 	the nonsalaried production and maintenance employees of that producer. The District 11 
101.10 	director of the United States Steelworkers of America, on advice of each local employee 
101.11 	president, shall select the employee members. In nonorganized operations, the employee 
101.12 	committee shall be elected by the nonsalaried production and maintenance employees. The 
101.13 	review must be completed no later than six months after the producer presents a proposal 
101.14 	for expenditure of the funds to the committee. The funds held pursuant to this section may 
101.15 	be released only for workforce development and associated public facility improvement, 
101.16 	or for acquisition of plant and stationary mining equipment and facilities for the producer 
101.17 	or for research and development in Minnesota on new mining, or taconite, iron, or steel 
101.18 	production technology, but only if the producer provides a matching expenditure equal to 
101.19 	the amount of the distribution to be used for the same purpose beginning with distributions 
101.20 	in 2014. Effective for proposals for expenditures of money from the fund beginning May 
101.21 	26, 2007, the commissioner may not release the funds before the next scheduled meeting 
101.22 	of the board. If a proposed expenditure is not approved by the board under the requirements 
101.23 	for expenditures under section 298.22, the funds must be deposited in the Taconite 
101.24 	Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money 
101.25 	which has been released from the fund prior to May 26, 2007 to procure haulage trucks, 
101.26 	mobile equipment, or mining shovels, and the producer removes the piece of equipment 
101.27 	from the taconite tax relief area defined in section 273.134 within ten years from the date 
101.28 	of receipt of the money from the fund, a portion of the money granted from the fund must 
101.29 	be repaid to the taconite economic development fund. The portion of the money to be repaid 
101.30 	is 100 percent of the grant if the equipment is removed from the taconite tax relief area 
101.31 	within 12 months after receipt of the money from the fund, declining by ten percent for 
101.32 	each of the subsequent nine years during which the equipment remains within the taconite 
101.33 	tax relief area. If a taconite production facility is sold after operations at the facility had 
101.34 	ceased, any money remaining in the fund for the former producer may be released to the 
101.35 	purchaser of the facility on the terms otherwise applicable to the former producer under this 
102.1 	section. If a producer fails to provide matching funds for a proposed expenditure within six 
102.2 	months after the commissioner approves release of the funds, the funds are available for 
102.3 	release to another producer in proportion to the distribution provided and under the conditions 
102.4 	of this section. Any portion of the fund which is not released by the commissioner within 
102.5 	one year of its deposit in the fund shall be divided between the taconite environmental 
102.6 	protection fund created in section 298.223 and the Douglas J. Johnson economic protection 
102.7 	trust fund created in section 298.292 for placement in their respective special accounts. 
102.8 	Two-thirds of the unreleased funds shall be distributed to the taconite environmental 
102.9 	protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
102.10 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
102.11 	distributions and the review process, an amount equal to ten cents per taxable ton of 
102.12 	production in 2007, for distribution in 2008 only, that would otherwise be distributed under 
102.13 	paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 
102.14 	wood product facility located in the taconite tax relief area and in a county that contains a 
102.15 	city of the first class. This amount must be deducted from the distribution under paragraph 
102.16 	(a) for which a matching expenditure by the producer is not required. The granting of the 
102.17 	loan or grant is subject to approval by the board. If the money is provided as a loan, interest 
102.18 	must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 
102.19 	Repayments of the loan and interest, if any, must be deposited in the taconite environment 
102.20 	protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 
102.21 	paragraph by July 1, 2012, the amount that had been made available for the loan under this 
102.22 	paragraph must be transferred to the taconite environment protection fund under sections 
102.23 	298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 
102.24 	that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 
102.25 	pro rata basis.
102.26 	(c) Repayment or transfer of money to the taconite environmental protection fund under 
102.27 	paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation 
102.28 	Board for public works projects in house legislative districts in the same proportion as 
102.29 	taxable tonnage of production in 2007 in each house legislative district, for distribution in 
102.30 	2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 
102.31 	Notwithstanding any other law to the contrary, expenditures under this paragraph do not 
102.32 	require approval by the governor. For purposes of this paragraph, "house legislative districts" 
102.33 	means the legislative districts in existence on May 15, 2009.

103.1 	Sec. 45. Minnesota Statutes 2016, section 298.27, is amended to read:
103.2 	298.27 COLLECTION AND PAYMENT OF TAX.
103.3 	The taxes provided by section 298.24 shall be paid directly to each eligible county and 
103.4 	the commissioner of Iron Range resources and rehabilitation Board. The commissioner of 
103.5 	revenue shall notify each producer of the amount to be paid each recipient prior to February 
103.6 	15. Every person subject to taxes imposed by section 298.24 shall file a correct report 
103.7 	covering the preceding year. The report must contain the information required by the 
103.8 	commissioner of revenue. The report shall be filed by each producer on or before February 
103.9 	1. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be 
103.10 	paid on or before February 24. A remittance equal to the remaining total tax required to be 
103.11 	paid hereunder shall be paid on or before August 24. On or before February 25 and August 
103.12 	25, the county auditor shall make distribution of the payments previously received by the 
103.13 	county in the manner provided by section 298.28. Reports shall be made and hearings held 
103.14 	upon the determination of the tax in accordance with procedures established by the 
103.15 	commissioner of revenue. The commissioner of revenue shall have authority to make 
103.16 	reasonable rules as to the form and manner of filing reports necessary for the determination 
103.17 	of the tax hereunder, and by such rules may require the production of such information as 
103.18 	may be reasonably necessary or convenient for the determination and apportionment of the 
103.19 	tax. All the provisions of the occupation tax law with reference to the assessment and 
103.20 	determination of the occupation tax, including all provisions for appeals from or review of 
103.21 	the orders of the commissioner of revenue relative thereto, but not including provisions for 
103.22 	refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent 
103.23 	herewith. If any person subject to section 298.24 shall fail to make the report provided for 
103.24 	in this section at the time and in the manner herein provided, the commissioner of revenue 
103.25 	shall in such case, upon information possessed or obtained, ascertain the kind and amount 
103.26 	of ore mined or produced and thereon find and determine the amount of the tax due from 
103.27 	such person. There shall be added to the amount of tax due a penalty for failure to report 
103.28 	on or before February 1, which penalty shall equal ten percent of the tax imposed and be 
103.29 	treated as a part thereof.
103.30 	If any person responsible for making a tax payment at the time and in the manner herein 
103.31 	provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount 
103.32 	so due, which penalty shall be treated as part of the tax due.
103.33 	In the case of any underpayment of the tax payment required herein, there may be added 
103.34 	and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.
104.1 	A person having a liability of $120,000 or more during a calendar year must remit all 
104.2 	liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The 
104.3 	funds transfer payment date, as defined in section 336.4A-401, must be on or before the 
104.4 	date the tax is due. If the date the tax is due is not a funds transfer business day, as defined 
104.5 	in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the 
104.6 	funds transfer business day next following the date the tax is due.

104.7 	Sec. 46. Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:
104.8 		Subd. 7.Iron Range resources and rehabilitation Board account. For the 1998 
104.9 	distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and 
104.10 	rehabilitation Board account for the purposes of section 298.22. That amount shall be 
104.11 	increased for distribution years 1999 through 2014 and for distribution in 2018 and 
104.12 	subsequent years in the same proportion as the increase in the implicit price deflator as 
104.13 	provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision 
104.14 	shall be expended within or for the benefit of the taconite assistance area defined in section 
104.15 	273.1341 and in compliance with the requirements for expenditures under section 298.22.
104.16 	No part of the fund provided in this subdivision may be used to provide loans for the 
104.17 	operation of private business unless the loan is approved by the governor.

104.18 	Sec. 47. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
104.19 		Subd. 7a.Iron Range school consolidation and cooperatively operated school account.
 104.20 	(a) The following amounts must be allocated to the Iron Range resources and rehabilitation
104.21 	Board account to be deposited in the Iron Range school consolidation and cooperatively 
104.22 	operated school account that is hereby created:
104.23 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 
104.24 	under section 298.24; and
104.25 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
104.26 	under section 298.24;
104.27 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
104.28 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
104.29 	proceeds attributable to the increase in the implicit price deflator as provided in section 
104.30 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
104.31 	Johnson economic protection trust fund;
105.1 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 
105.2 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
105.3 	298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third 
105.4 	to be distributed to the Douglas J. Johnson economic protection trust fund; and
105.5 	(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased 
105.6 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
105.7 	298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining 
105.8 	one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
105.9 	(4) any other amount as provided by law.
105.10 	(b) Expenditures from this account shall be made only to provide disbursements to assist 
105.11 	school districts with the payment of bonds that were issued for qualified school projects, 
105.12 	or for any other school disbursement as approved by the commissioner of Iron Range 
105.13 	resources and rehabilitation Board, after consultation with the commission. For purposes 
105.14 	of this section, "qualified school projects" means school projects within the taconite assistance 
105.15 	area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 
105.16 	2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
105.17 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
105.18 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
105.19 	any reduction in debt service equalization aid that the school district qualifies for in that 
105.20 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
105.21 	qualified for in fiscal year 2018.
105.22 	(d) No expenditure under this section shall be made unless approved by seven members 
105.23 	of the Iron Range Resources and Rehabilitation Board the commissioner has complied with 
105.24 	the requirements for expenditures under section 298.22.

105.25 	Sec. 48. Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:
105.26 		Subd. 9c. Distribution; city of Eveleth. 0.20 cent per taxable ton must be paid to the 
105.27 	city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the 
105.28 	Hockey Hall of Fame, provided that it continues to operate in that city, and provided that 
105.29 	the city of Eveleth certifies to the St. Louis County auditor that it has received donations 
105.30 	for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame 
105.31 	ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and 
105.32 	the governing body of the city determines that it is unlikely to resume operation there within 
106.1 	a six-month period, the distribution under this subdivision shall be made to the commissioner 
106.2 	of Iron Range resources and rehabilitation Board.

106.3 	Sec. 49. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
106.4 		Subd. 9d.Iron Range higher education account. Five cents per taxable ton must be 
106.5 	allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron 
106.6 	Range higher education account that is hereby created, to be used for higher education 
106.7 	programs conducted at educational institutions in the taconite assistance area defined in 
106.8 	section 273.1341. The Iron Range Higher Education committee under section 298.2214,
106.9 	and the commissioner of Iron Range resources and rehabilitation Board, after complying 
106.10 	with all the requirements for expenditures under section 298.22, must approve all 
106.11 	expenditures from the account.

106.12 	Sec. 50. Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:
106.13 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24 which 
106.14 	remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 
106.15 	commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 
106.16 	interest earned on all money distributed under this section prior to distribution, shall be 
106.17 	divided between the taconite environmental protection fund created in section 298.223 and 
106.18 	the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows: 
106.19 	Two-thirds to the taconite environmental protection fund and one-third to the Douglas J. 
106.20 	Johnson economic protection trust fund. The proceeds shall be placed in the respective 
106.21 	special accounts.
106.22 	(b) There shall be distributed to each city, town, and county the amount that it received 
106.23 	under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however, 
106.24 	that the amount distributed in 1981 to the unorganized territory number 2 of Lake County 
106.25 	and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company 
106.26 	will be distributed in 1982 and subsequent years to the unorganized territory number 2 of 
106.27 	Lake County and the towns of Beaver Bay and Stony River based on the miles of track of 
106.28 	Erie Mining Company in each taxing district.
106.29 	(c) There shall be distributed to the Iron Range resources and rehabilitation Board account
106.30 	the amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount 
106.31 	distributed under this paragraph shall be expended within or for the benefit of the taconite 
106.32 	assistance area defined in section 273.1341.
107.1 	(d) There shall be distributed to each school district 62 percent of the amount that it 
107.2 	received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

107.3 	Sec. 51. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
107.4 		Subd. 2.Use of money. Money in the Douglas J. Johnson economic protection trust 
107.5 	fund may be used for the following purposes:
107.6 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
107.7 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
107.8 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
107.9 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
107.10 	percent or an interest rate three percentage points less than a full faith and credit obligation 
107.11 	of the United States government of comparable maturity, at the time that the loan is approved;
107.12 	(2) to fund reserve accounts established to secure the payment when due of the principal 
107.13 	of and interest on bonds issued pursuant to section 298.2211;
107.14 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
107.15 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
107.16 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
107.17 	alternative energy sources;
107.18 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
107.19 	entities that are engaging in, or that will engage in, projects or programs that have the 
107.20 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
107.21 	or enterprise unless at least two other unrelated investors make investments of at least 
107.22 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
107.23 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
107.24 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
107.25 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
107.26 	which the investment is made or to any individual who owns more than 40 percent of the 
107.27 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
107.28 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
107.29 	interests in it. For purposes of determining the limitations under this clause, the amount of 
107.30 	investments made by an investor other than the Douglas J. Johnson economic protection 
107.31 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
107.32 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
107.33 	economic protection trust fund; and
108.1 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
108.2 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
108.3 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
108.4 	commissioner upon approval by the board, after consultation with the commission. The net 
108.5 	proceeds must be deposited in the trust fund for the purposes and uses of this section.
108.6 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
108.7 	assistance area defined in section 273.1341.

108.8 	Sec. 52. Minnesota Statutes 2016, section 298.296, is amended to read:
108.9 	298.296 OPERATION OF FUND.
108.10 		Subdivision 1.Project approval. The board and commissioner shall by August 1 of 
108.11 	each year prepare a list of projects to be funded from the Douglas J. Johnson economic 
108.12 	protection trust with necessary supporting information including description of the projects, 
108.13 	plans, and cost estimates must comply with the requirements for expenditures under section 
108.14 	298.22. These Projects shall be consistent with the priorities established in section 298.292
108.15 	and shall not be approved by the board unless it proposed by the commissioner unless the 
108.16 	commissioner finds that:
108.17 	(a) the project will materially assist, directly or indirectly, the creation of additional 
108.18 	long-term employment opportunities;
108.19 	(b) the prospective benefits of the expenditure exceed the anticipated costs; and
108.20 	(c) in the case of assistance to private enterprise, the project will serve a sound business 
108.21 	purpose.
108.22 	Each project must be approved by over one-half of all of the members of the board and 
108.23 	the commissioner of Iron Range resources and rehabilitation. The list of projects shall be 
108.24 	submitted to the governor, who shall, by November 15 of each year, approve or disapprove, 
108.25 	or return for further consideration, each project. The money for a project may be expended 
108.26 	only upon approval of the project by the governor. The board may submit supplemental 
108.27 	projects for approval at any time.
108.28 		Subd. 2.Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 
108.29 	projects and for administration of the trust fund only from the net interest, earnings, and 
108.30 	dividends arising from the investment of the trust at any time, including net interest, earnings, 
108.31 	and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for 
108.32 	use in fiscal year 1983, except that any amount required to be paid out of the trust fund to 
108.33 	provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and 
109.1 	to make school bond payments and payments to recipients of taconite production tax proceeds 
109.2 	pursuant to section 298.225, may be taken from the corpus of the trust.
109.3 	(b) Additionally, upon recommendation by the board, the commissioner, after consulting 
109.4 	the commission, may choose to make up to $13,000,000 from the corpus of the trust may 
109.5 	be made available for use as provided in subdivision 4, and up to $10,000,000 from the 
109.6 	corpus of the trust may be made available for use as provided in section 298.2961.
109.7 	(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 
109.8 	on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 
109.9 	made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 
109.10 	section 17, may be expended on projects. Funds The commissioner may be expended expend 
109.11 	funds for projects under this paragraph only if the project:
109.12 	(1) the project is for the purposes established under section 298.292, subdivision 1, 
109.13 	clause (1) or (2); and
109.14 	(2) is approved by two-thirds of all of the members of the board the commissioner 
109.15 	complied with the requirements for expenditures under section 298.22.
109.16 	No money made available under this paragraph or paragraph (d) can be used for 
109.17 	administrative or operating expenses of the Department of Iron Range resources and 
109.18 	rehabilitation Board or expenses relating to any facilities owned or operated by the board
109.19 	commissioner on May 18, 2002.
109.20 	(d) Upon recommendation by a unanimous vote of all members of the board, The 
109.21 	commissioner may spend amounts in addition to those authorized under paragraphs (a), (b), 
109.22 	and (c) may be expended on projects described in section 298.292, subdivision 1, if the 
109.23 	commissioner complies with the requirements for expenditures under section 298.22.
109.24 	(e) Annual administrative costs, not including detailed engineering expenses for the 
109.25 	projects, shall not exceed five percent of the net interest, dividends, and earnings arising 
109.26 	from the trust in the preceding fiscal year.
109.27 	(f) Principal and interest received in repayment of loans made pursuant to this section, 
109.28 	and earnings on other investments made under section 298.292, subdivision 2, clause (4), 
109.29 	shall be deposited in the state treasury and credited to the trust. These receipts are 
109.30 	appropriated to the board for the purposes of sections 298.291 to 298.298.
109.31 	(g) Additionally, notwithstanding section 298.293, upon the approval of the board if the 
109.32 	commissioner complies with the requirements for expenditures under section 298.22, money 
109.33 	from the corpus of the trust may be expanded to purchase forest lands within the taconite 
110.1 	assistance area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, 
110.2 	clause (5).
110.3 		Subd. 3.Administration. The commissioner and staff of the Iron Range resources and 
110.4 	rehabilitation Board shall administer the program under which funds are expended pursuant 
110.5 	to sections 298.292 to 298.298.
110.6 		Subd. 4.Temporary loan authority. (a) The board may recommend thatIf the 
110.7 	commissioner complies with the requirements for expenditures under section 298.22, the 
110.8 	commissioner may use up to $7,500,000 from the corpus of the trust may be used for loans, 
110.9 	loan guarantees, grants, or equity investments as provided in this subdivision. The money 
110.10 	would be available for loans for construction and equipping of facilities constituting (1) a 
110.11 	value added iron products plant, which may be either a new plant or a facility incorporated 
110.12 	into an existing plant that produces iron upgraded to a minimum of 75 percent iron content 
110.13 	or any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or 
110.14 	minerals processing plant for any mineral subject to the net proceeds tax imposed under 
110.15 	section 298.015. A loan or loan guarantee under this paragraph may not exceed $5,000,000 
110.16 	for any facility.
110.17 	(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends, 
110.18 	and earnings arising from the investment of the trust after June 30, 1996, to be used must 
110.19 	be reserved for grants, loans, loan guarantees, or equity investments for the purposes set 
110.20 	forth in paragraph (a). This amount must be reserved until it is used as described in this 
110.21 	subdivision.
110.22 	(c) Additionally, the board may recommend that up to $5,500,000 from the corpus of 
110.23 	the trust may be used for additional grants, loans, loan guarantees, or equity investments 
110.24 	for the purposes set forth in paragraph (a).
110.25 	(d) The board commissioner, after consultation with the commission, may require that
110.26 	it the fund receive an equity percentage in any project to which it contributes under this 
110.27 	section.

110.28 	Sec. 53. Minnesota Statutes 2016, section 298.2961, is amended to read:
110.29 	298.2961 PRODUCER GRANTS.
110.30 		Subdivision 1.Appropriation. (a) $10,000,000 is appropriated from the Douglas J. 
110.31 	Johnson economic protection trust fund to a special account in the taconite area environmental 
110.32 	protection fund for grants to producers on a project-by-project basis as provided in this 
110.33 	section.
111.1 	(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are 
111.2 	appropriated for grants to producers on a project-by-project basis as provided in this section.
111.3 		Subd. 2.Projects; approval. (a) Projects funded must be for:
111.4 	(1) environmentally unique reclamation projects; or
111.5 	(2) pit or plant repairs, expansions, or modernizations other than for a value added iron 
111.6 	products plant.
111.7 	(b) To be proposed by the board, a project must be approved by the board. The money 
111.8 	for a project may be spent only upon approval of the project by the governor. The board 
111.9 	may submit supplemental projects for approval at any time For all such projects, the 
111.10 	commissioner must comply with the requirements for expenditures under section 298.22.
111.11 	(c) The board commissioner, after consultation with the commission, may require that 
111.12 	it the fund receive an equity percentage in any project to which it contributes under this 
111.13 	section.
111.14 		Subd. 3.Redistribution. (a) If a taconite production facility is sold after operations at 
111.15 	the facility had ceased, any money remaining in the taconite environmental fund for the 
111.16 	former producer may be released to the purchaser of the facility on the terms otherwise 
111.17 	applicable to the former producer under this section.
111.18 	(b) Any portion of the taconite environmental fund that is not released by the 
111.19 	commissioner within three years of its deposit in the taconite environmental fund shall be 
111.20 	divided between the taconite environmental protection fund created in section 298.223 and 
111.21 	the Douglas J. Johnson economic protection trust fund created in section 298.292 for 
111.22 	placement in their respective special accounts. Two-thirds of the unreleased funds must be 
111.23 	distributed to the taconite environmental protection fund and one-third to the Douglas J. 
111.24 	Johnson economic protection trust fund.
111.25 		Subd. 4.Grant and loan fund. (a) A fund is established to receive distributions under 
111.26 	section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 
111.27 	Any grant or loan made under this subdivision must be approved by the board, established 
111.28 	under section 298.22 comply with the requirements for expenditures under section 298.22.
111.29 	(b) All distributions received in 2009 and subsequent years are allocated for projects 
111.30 	under section 298.223, subdivision 1.

111.31 	Sec. 54. Minnesota Statutes 2016, section 298.297, is amended to read:
111.32 	298.297 ADVISORY COMMITTEES.
112.1 	Before submission of a project to the board commission, the commissioner of Iron Range 
112.2 	resources and rehabilitation shall appoint a technical advisory committee consisting of one 
112.3 	or more persons who are knowledgeable in areas related to the objectives of the proposal. 
112.4 	Members of the committees shall be compensated as provided in section 15.059, subdivision 
112.5 	3. The board shall not act commission shall not make recommendations on a proposal until 
112.6 	it has received the evaluation and recommendations of the technical advisory committee or 
112.7 	until 15 days have elapsed since the proposal was transmitted to the advisory committee, 
112.8 	whichever occurs first.

112.9 	Sec. 55. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
112.10 		Subd. 2.Unmined iron ore; valuation petition. When in the opinion of the duly 
112.11 	constituted authorities of a taxing district there are in existence reserves of unmined iron 
112.12 	ore located in such district, these authorities may petition the commissioner of Iron Range 
112.13 	resources and rehabilitation Board for authority to petition the county assessor to verify the 
112.14 	existence of such reserves and to ascertain the value thereof by drilling in a manner consistent 
112.15 	with established engineering and geological exploration methods, in order that such taxing 
112.16 	district may be able to forecast in a proper manner its future economic and fiscal potentials.
112.17 	The commissioner may grant the authority to petition only after consultation with the 
112.18 	commission.

112.19 	Sec. 56. Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:
112.20 		Subd. 5.Payment of costs; reimbursement. The cost of such exploration or drilling 
112.21 	plus any damages to the property which may be assessed by the district court shall be paid 
112.22 	by the commissioner of Iron Range resources and rehabilitation Board from amounts 
112.23 	appropriated to that board the commissioner under section 298.22. The commissioner of 
112.24 	Iron Range resources and rehabilitation Board shall be reimbursed for one-half of the 
112.25 	amounts thus expended. Such reimbursement shall be made by the taxing districts in the 
112.26 	proportion that each such taxing district's levy on the property involved bears to the total 
112.27 	levy on such property. Such reimbursement shall be made to the commissioner of Iron 
112.28 	Range resources and rehabilitation Board in the manner provided by section 298.221.

112.29 	Sec. 57. Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:
112.30 		Subd. 6.Refusal to reimburse; reduction of other payments. If any taxing district 
112.31 	refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor 
112.32 	is hereby authorized to reduce payments required to be made by the county to such taxing 
112.33 	district under other provisions of law. Thereafter the auditor shall draw a warrant, which 
113.1 	shall be deposited with the state treasury in accordance with section 298.221, to the credit 
113.2 	of the commissioner of Iron Range resources and rehabilitation Board.

113.3 	Sec. 58. Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:
113.4 		Subd. 6c.Water access sites. Any claim based upon the construction, operation, or 
113.5 	maintenance by a municipality of a water access site created by the commissioner of Iron 
113.6 	Range resources and rehabilitation Board. A water access site under this subdivision that 
113.7 	provides access to an idled, water filled mine pit also includes the entire water filled area 
113.8 	of the pit, and, further, claims related to a mine pit water access site under this subdivision 
113.9 	include those based upon the caving or slumping of mine pit walls.

113.10 	Sec. 59. Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:
113.11 		Subd. 9.Local government unit. "Local government unit" means a statutory or home 
113.12 	rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation 
113.13 	agency, regional development commission, or a federally designated economic development 
113.14 	district.

113.15 	Sec. 60. Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:
113.16 		Subd. 21.Preliminary resolution. "Preliminary resolution" means a resolution adopted 
113.17 	by the governing body or board of the issuer, or in the case of theby the commissioner of 
113.18 	Iron Range resources and rehabilitation Board by the commissioner. The resolution must 
113.19 	express a preliminary intention of the issuer to issue obligations for a specific project, 
113.20 	identify the proposed project, and disclose the proposed amount of qualified bonds to be 
113.21 	issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify 
113.22 	a specific project.

113.23 	Sec. 61. Laws 2010, chapter 389, article 5, section 7, is amended to read:
113.24 	Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.
 113.25 		Subdivision 1.Additional taxes authorized. Notwithstanding Minnesota Statutes, 
113.26 	section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city 
113.27 	of Biwabik, upon approval both by its governing body and by the vote of at least seven 
113.28 	members of the Iron Range Resources and Rehabilitation Board, may impose any or all of 
113.29 	the taxes described in this section.
113.30 		Subd. 2.Use of proceeds. The proceeds of any taxes imposed under this section, less 
113.31 	refunds and costs of collection, must be deposited into the Iron Range Resources and 
114.1 	Rehabilitation Board account enterprise fund created under the provisions of Minnesota 
114.2 	Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the 
114.3 	commissioner of the Iron Range resources and rehabilitation Board, upon approval by the 
114.4 	vote of at least seven members of after consultation with the Legislative Commission on 
114.5 	Iron Range Resources and Rehabilitation Board, to pay costs for the construction, renovation, 
114.6 	improvement, expansion, and maintenance of public recreational facilities located in those 
114.7 	portions of the city within the Giants Ridge Recreation Area as defined in Minnesota Statutes, 
114.8 	section 298.22, subdivision 7, or to pay any principal, interest, or premium on any bond 
114.9 	issued to finance the construction, renovation, improvement, or expansion of such public 
114.10 	recreational facilities.
114.11 		Subd. 3.Lodging tax. (a) The city of Biwabik, upon approval both by its governing 
114.12 	body and by the vote of at least seven members of the Iron Range Resources and 
114.13 	Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the 
114.14 	gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This 
114.15 	tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may 
114.16 	be imposed only on gross lodging receipts generated within the Giants Ridge Recreation 
114.17 	Area as defined in Minnesota Statutes, section 298.22, subdivision 7.
114.18 	(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax 
114.19 	imposed under paragraph (a), the change must be approved by both the governing body of 
114.20 	the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after 
114.21 	the commissioner consults with the Legislative Commission on Iron Range Resources and 
114.22 	Rehabilitation.
114.23 		Subd. 4.Admissions and recreation tax. (a) The city of Biwabik, upon approval both 
114.24 	by its governing body and by the vote of at least seven members of the Iron Range Resources 
114.25 	and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent 
114.26 	on admission receipts to entertainment and recreational facilities and on receipts from the 
114.27 	rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined 
114.28 	in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes, 
114.29 	section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration, 
114.30 	collection, and enforcement of the tax authorized in this subdivision.
114.31 	(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an 
114.32 	exemption for purchases of season tickets or passes.
114.33 	(c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax 
114.34 	imposed under paragraph (a), the change must be approved by both the governing body of 
115.1 	the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after 
115.2 	the commissioner consults with the Legislative Commission on Iron Range Resources and 
115.3 	Rehabilitation.
115.4 		Subd. 5.Food and beverage tax. (a) The city of Biwabik, upon approval both by its 
115.5 	governing body and by the vote of at least seven members of the Iron Range Resources and 
115.6 	Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than 
115.7 	one percent on gross receipts of food and beverages sold whether it is consumed on or off 
115.8 	the premises by restaurants and places of refreshment as defined by resolution of the city 
115.9 	within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, 
115.10 	subdivision 7. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions 
115.11 	2 and 3, govern the imposition, administration, collection, and enforcement of the tax 
115.12 	authorized in this subdivision.
115.13 	(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax 
115.14 	imposed under paragraph (a), the change must be approved by both the governing body of 
115.15 	the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after 
115.16 	the commissioner consults with the Legislative Commission on Iron Range Resources and 
115.17 	Rehabilitation.

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

115.20 	Sec. 62. REVISOR'S INSTRUCTION.
 115.21 	The revisor of statutes, with cooperation from the House Research Department and the 
115.22 	Office of Senate Counsel, Research, and Fiscal Analysis, shall prepare legislation that makes 
115.23 	conforming changes in accordance with the provisions of this article. The revisor shall 
115.24 	submit the proposal, in a form ready for introduction, during the 2018 regular legislative 
115.25 	session to the chairs and ranking minority members of the senate and house of representatives 
115.26 	committees with jurisdiction over taxes.

115.27 	Sec. 63. REPEALER.
 115.28 	Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, are 
115.29 	repealed.

116.1 	ARTICLE 5
116.2 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
116.3 	POLICY

116.4 	Section 1. Minnesota Statutes 2016, section 268.046, subdivision 3, is amended to read:
116.5 		Subd. 3.Penalties; application. (a) Any person that violates the requirements of this 
116.6 	section and any taxpaying employer that violates subdivision 1, paragraph (b), or any 
116.7 	nonprofit or government employer that violates subdivision 2, paragraph (b), is subject to 
116.8 	the penalties under section 268.184, subdivision 1a. Penalties are credited to the trust fund.
116.9 	(b) Section 268.051, subdivision 4, does not apply to contracts under this section. This 
116.10 	section does not limit or prevent the application of section 268.051, subdivision 4, to any 
116.11 	other transactions or acquisitions involving the taxpaying employer. This section does not 
116.12 	limit or prevent the application of section 268.051, subdivision 4a.
116.13 	(c) An assignment of an account upon the execution of a contract under this section and 
116.14 	a termination of a contract with the corresponding assignment of the account is not considered
116.15 	a separation from employment of any worker covered by the contract. Nothing under this 
116.16 	subdivision causes the person to be liable for any amounts past due under this chapter from 
116.17 	the taxpaying employer or the nonprofit or government employer.
116.18 	(d) This section applies to, but is not limited to, persons registered under section 79.255, 
116.19 	but does not apply to persons that obtain An exemption from registration under section 
116.20 	79.255, subdivision 9, does not determine the application of this section.

116.21 	Sec. 2. Minnesota Statutes 2016, section 268.065, subdivision 2, is amended to read:
116.22 		Subd. 2.Employee leasing company, professional employer organization, or similar 
116.23 	person. (a) A person whose work force consists of 50 percent or more of workers provided 
116.24 	by an employee leasing company, professional employer organization, or similar person 
116.25 	for a fee, is jointly and severally liable for the unpaid amounts that are due under this chapter 
116.26 	or section 116L.20 on the wages paid on the contract with the employee leasing company, 
116.27 	professional employer organization, or similar person.
116.28 	(b) This subdivision applies to, but is not limited to, persons registered under section 
116.29 	79.255, but does not apply to agreements with persons that obtain An exemption from 
116.30 	registration under section 79.255, subdivision 9, does not determine the application of this 
116.31 	section.

117.1 	Sec. 3. Minnesota Statutes 2016, section 268.085, subdivision 13, is amended to read:
117.2 		Subd. 13.Suspension from employment. (a) An applicant who has been suspended 
117.3 	from employment without pay for 30 calendar days or less, as a result of employment 
117.4 	misconduct or aggravated employment misconduct as defined under section 268.095, 
117.5 	subdivision 6,is ineligible for unemployment benefits beginning the Sunday of the week 
117.6 	that the applicant was suspended and continuing for the duration of the suspension.
117.7 	(b) A suspension from employment without pay that is of indefinite duration or is for 
117.8 	more than 30 calendar days is considered, at the time the suspension begins, a discharge 
117.9 	from employment under subject to section 268.095, subdivision 5.
117.10 	(c) A suspension from employment with pay, regardless of duration, is not considered
117.11 	a separation from employment and the applicant is ineligible for unemployment benefits 
117.12 	for the duration of the suspension with pay.

117.13 	Sec. 4. Minnesota Statutes 2016, section 268.095, subdivision 5, is amended to read:
117.14 		Subd. 5.Discharge defined. (a) A discharge from employment occurs when any words 
117.15 	or actions by an employer would lead a reasonable employee to believe that the employer 
117.16 	will no longer allow the employee to work for the employer in any capacity. A layoff because 
117.17 	of lack of work is a discharge.
117.18 	(b) A suspension from employment without pay that is of an indefinite duration or is 
117.19 	for more than 30 calendar days is considered a discharge at the time the suspension begins.
117.20 	(b) (c) When determining if an applicant was discharged, the theory of a constructive 
117.21 	discharge does not apply.
117.22 	(c) (d) An employee who gives notice of intention to quit the employment and is not 
117.23 	allowed by the employer to work the entire notice period is discharged from the employment 
117.24 	as of the date the employer will no longer allow the employee to work. If the discharge 
117.25 	occurs within 30 calendar days before the intended date of quitting, then, as of the intended 
117.26 	date of quitting, the separation from employment is a quit from employment subject to 
117.27 	subdivision 1.
117.28 	(d) (e) The end of a job assignment with the client of a staffing service is a discharge 
117.29 	from employment with the staffing service unless subdivision 2, paragraph (e), applies.

118.1 	Sec. 5. Minnesota Statutes 2016, section 268.101, subdivision 2, is amended to read:
118.2 		Subd. 2.Determination. (a) The commissioner must determine any issue of ineligibility 
118.3 	raised by information required from an applicant under subdivision 1, paragraph (a) or (c), 
118.4 	and send to the applicant and any involved employer, by mail or electronic transmission, a 
118.5 	document titled a determination of eligibility or a determination of ineligibility, as is 
118.6 	appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge 
118.7 	of the applicant must state the effect on the employer under section 268.047. A determination 
118.8 	must be made in accordance with this paragraph even if a notified employer has not raised 
118.9 	the issue of ineligibility.
118.10 	(b) The commissioner must determine any issue of ineligibility raised by an employer 
118.11 	and send to the applicant and that employer, by mail or electronic transmission, a document 
118.12 	titled a determination of eligibility or a determination of ineligibility as is appropriate. The 
118.13 	determination on an issue of ineligibility as a result of a quit or discharge of the applicant 
118.14 	must state the effect on the employer under section 268.047.
118.15 	If a base period employer:
118.16 	(1) was not the applicant's most recent employer before the application for unemployment 
118.17 	benefits;
118.18 	(2) did not employ the applicant during the six calendar months before the application 
118.19 	for unemployment benefits; and
118.20 	(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant 
118.21 	within ten calendar days of notification under subdivision 1, paragraph (b);
118.22 	then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two 
118.23 	weeks following the week that the issue of ineligibility as a result of a quit or discharge of 
118.24 	the applicant was raised by the employer.
118.25 	A communication from an employer must specifically set out why the applicant should 
118.26 	be determined ineligible for unemployment benefits for that communication to be considered 
118.27 	to have raised an issue of ineligibility for purposes of this section. A statement of "protest" 
118.28 	or a similar term without more information does not constitute raising an issue of ineligibility 
118.29 	for purposes of this section.
118.30 	(c) Subject to section 268.031, an issue of ineligibility is determined based upon that 
118.31 	information required of an applicant, any information that may be obtained from an applicant 
118.32 	or employer, and information from any other source.
119.1 	(d) Regardless of the requirements of this subdivision, the commissioner is not required 
119.2 	to send to an applicant a copy of the determination where the applicant has satisfied a period 
119.3 	of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
119.4 	(e) The commissioner may department is authorized to issue a determination on an issue 
119.5 	of ineligibility within 24 months from the establishment of a benefit account based upon 
119.6 	information from any source, even if the issue of ineligibility was not raised by the applicant 
119.7 	or an employer.
119.8 	If an applicant obtained unemployment benefits through fraud misrepresentation under 
119.9 	section 268.18, subdivision 2, the department is authorized to issue a determination of 
119.10 	ineligibility may be issued within 48 months of the establishment of the benefit account.
119.11 	If the department has filed an intervention in a worker's compensation matter under 
119.12 	section 176.361, the department is authorized to issue a determination of ineligibility within 
119.13 	48 months of the establishment of the benefit account.
119.14 	(f) A determination of eligibility or determination of ineligibility is final unless an appeal 
119.15 	is filed by the applicant or employer within 20 calendar days after sending. The determination 
119.16 	must contain a prominent statement indicating the consequences of not appealing. 
119.17 	Proceedings on the appeal are conducted in accordance with section 268.105.
119.18 	(g) An issue of ineligibility required to be determined under this section includes any 
119.19 	question regarding the denial or allowing of unemployment benefits under this chapter 
119.20 	except for issues under section 268.07. An issue of ineligibility for purposes of this section 
119.21 	includes any question of effect on an employer under section 268.047.

119.22 	ARTICLE 6
119.23 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
119.24 	HOUSEKEEPING

119.25 	Section 1. Minnesota Statutes 2016, section 268.035, subdivision 20, is amended to read:
119.26 		Subd. 20.Noncovered employment. "Noncovered employment" means:
119.27 	(1) employment for the United States government or an instrumentality thereof, including 
119.28 	military service;
119.29 	(2) employment for a state, other than Minnesota, or a political subdivision or 
119.30 	instrumentality thereof;
119.31 	(3) employment for a foreign government;
119.32 	(4) employment covered under the federal Railroad Unemployment Insurance Act;
120.1 	(5) employment for a church or convention or association of churches, or a nonprofit 
120.2 	organization operated primarily for religious purposes that is operated, supervised, controlled, 
120.3 	or principally supported by a church or convention or association of churches;
120.4 	(6) employment for an elementary or secondary school with a curriculum that includes 
120.5 	religious education that is operated by a church, a convention or association of churches, 
120.6 	or a nonprofit organization that is operated, supervised, controlled, or principally supported 
120.7 	by a church or convention or association of churches;
120.8 	(6) (7) employment for Minnesota or a political subdivision, or a nonprofit organization, 
120.9 	of a duly ordained or licensed minister of a church in the exercise of a ministry or by a 
120.10 	member of a religious order in the exercise of duties required by the order;
120.11 	(7) (8) employment for Minnesota or a political subdivision, or a nonprofit organization, 
120.12 	of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the 
120.13 	purpose of carrying out a program of rehabilitation for individuals whose earning capacity 
120.14 	is impaired by age or physical or mental deficiency or injury or a program providing 
120.15 	"sheltered" work for individuals who because of an impaired physical or mental capacity 
120.16 	cannot be readily absorbed in the competitive labor market. This clause applies only to 
120.17 	services performed in a facility certified by the Rehabilitation Services Branch of the 
120.18 	department or in a day training or habilitation program licensed by the Department of Human 
120.19 	Services;
120.20 	(8) (9) employment for Minnesota or a political subdivision, or a nonprofit organization, 
120.21 	of an individual receiving work relief or work training as part of an unemployment work 
120.22 	relief or work training program assisted or financed in whole or in part by any federal agency 
120.23 	or an agency of a state or political subdivision thereof. This clause does not apply to programs 
120.24 	that require unemployment benefit coverage for the participants;
120.25 	(9) (10) employment for Minnesota or a political subdivision, as an elected official, a 
120.26 	member of a legislative body, or a member of the judiciary;
120.27 	(10) (11) employment as a member of the Minnesota National Guard or Air National 
120.28 	Guard;
120.29 	(11) (12) employment for Minnesota or a political subdivision, or instrumentality thereof, 
120.30 	of an individual serving on a temporary basis in case of fire, flood, tornado, or similar 
120.31 	emergency;
121.1 	(12) (13) employment as an election official or election worker for Minnesota or a 
121.2 	political subdivision, if the compensation for that employment was less than $1,000 in a 
121.3 	calendar year;
121.4 	(13) (14) employment for Minnesota that is a major policy-making or advisory position 
121.5 	in the unclassified service;
121.6 	(14) (15) employment for Minnesota in an unclassified position established under section 
121.7 	43A.08, subdivision 1a;
121.8 	(15) (16) employment for a political subdivision of Minnesota that is a nontenured major 
121.9 	policy making or advisory position;
121.10 	(16) (17) domestic employment in a private household, local college club, or local chapter 
121.11 	of a college fraternity or sorority, if the wages paid in any calendar quarter in either the 
121.12 	current or prior calendar year to all individuals in domestic employment totaled less than 
121.13 	$1,000.
121.14 	"Domestic employment" includes all service in the operation and maintenance of a 
121.15 	private household, for a local college club, or local chapter of a college fraternity or sorority 
121.16 	as distinguished from service as an employee in the pursuit of an employer's trade or business;
121.17 	(17) (18) employment of an individual by a son, daughter, or spouse, and employment 
121.18 	of a child under the age of 18 by the child's father or mother;
121.19 	(18) (19) employment of an inmate of a custodial or penal institution;
121.20 	(19) (20) employment for a school, college, or university, by a student who is enrolled 
121.21 	and whose primary relation to the school, college, or university is as a student. This does 
121.22 	not include an individual whose primary relation to the school, college, or university is as 
121.23 	an employee who also takes courses;
121.24 	(20) (21) employment of an individual who is enrolled as a student in a full-time program 
121.25 	at a nonprofit or public educational institution that maintains a regular faculty and curriculum 
121.26 	and has a regularly organized body of students in attendance at the place where its educational 
121.27 	activities are carried on, taken for credit at the institution, that combines academic instruction 
121.28 	with work experience, if the employment is an integral part of the program, and the institution 
121.29 	has so certified to the employer, except that this clause does not apply to employment in a 
121.30 	program established for or on behalf of an employer or group of employers;
121.31 	(21) (22) employment of university, college, or professional school students in an 
121.32 	internship or other training program with the city of St. Paul or the city of Minneapolis 
121.33 	under Laws 1990, chapter 570, article 6, section 3;
122.1 	(22) (23) employment for a hospital by a patient of the hospital. "Hospital" means an 
122.2 	institution that has been licensed by the Department of Health as a hospital;
122.3 	(23) (24) employment as a student nurse for a hospital or a nurses' training school by 
122.4 	an individual who is enrolled and is regularly attending classes in an accredited nurses' 
122.5 	training school;
122.6 	(24) (25) employment as an intern for a hospital by an individual who has completed a 
122.7 	four-year course in an accredited medical school;
122.8 	(25) (26) employment as an insurance salesperson, by other than a corporate officer, if 
122.9 	all the wages from the employment is solely by way of commission. The word "insurance" 
122.10 	includes an annuity and an optional annuity;
122.11 	(26) (27) employment as an officer of a township mutual insurance company or farmer's 
122.12 	mutual insurance company under chapter 67A;
122.13 	(27) (28) employment of a corporate officer, if the officer directly or indirectly, including 
122.14 	through a subsidiary or holding company, owns 25 percent or more of the employer 
122.15 	corporation, and employment of a member of a limited liability company, if the member 
122.16 	directly or indirectly, including through a subsidiary or holding company, owns 25 percent 
122.17 	or more of the employer limited liability company;
122.18 	(28) (29) employment as a real estate salesperson, other than a corporate officer, if all 
122.19 	the wages from the employment is solely by way of commission;
122.20 	(29) (30) employment as a direct seller as defined in United States Code, title 26, section 
122.21 	3508;
122.22 	(30) (31) employment of an individual under the age of 18 in the delivery or distribution 
122.23 	of newspapers or shopping news, not including delivery or distribution to any point for 
122.24 	subsequent delivery or distribution;
122.25 	(31) (32) casual employment performed for an individual, other than domestic 
122.26 	employment under clause (16) (17), that does not promote or advance that employer's trade 
122.27 	or business;
122.28 	(32) (33) employment in "agricultural employment" unless it is "covered agricultural 
122.29 	employment" under subdivision 11; or
122.30 	(33) (34) if employment during one-half or more of any pay period was covered 
122.31 	employment, all the employment for the pay period is covered employment; but if during 
122.32 	more than one-half of any pay period the employment was noncovered employment, then 
123.1 	all of the employment for the pay period is noncovered employment. "Pay period" means 
123.2 	a period of not more than a calendar month for which a payment or compensation is ordinarily 
123.3 	made to the employee by the employer.

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

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

123.14 	Sec. 4. Minnesota Statutes 2016, section 268.07, subdivision 3b, is amended to read:
123.15 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
123.16 	unemployment benefits is effective the Sunday of the calendar week that the application 
123.17 	was filed. An application for unemployment benefits may be backdated one calendar week 
123.18 	before the Sunday of the week the application was actually filed if the applicant requests 
123.19 	the backdating within seven calendar days of the date the application is filed. An application 
123.20 	may be backdated only if the applicant was unemployed during the period of the backdating. 
123.21 	If an individual attempted to file an application for unemployment benefits, but was prevented 
123.22 	from filing an application by the department, the application is effective the Sunday of the 
123.23 	calendar week the individual first attempted to file an application.
123.24 	(b) A benefit account established under subdivision 2 is effective the date the application 
123.25 	for unemployment benefits was effective.
123.26 	(c) A benefit account, once established, may later be withdrawn only if:
123.27 	(1) the applicant has not been paid any unemployment benefits on that benefit account; 
123.28 	and
123.29 	(2) a new application for unemployment benefits is filed and a new benefit account is 
123.30 	established at the time of the withdrawal.
124.1 	A benefit account may be withdrawn after the expiration of the benefit year, and the 
124.2 	new work requirements of subdivision 2, paragraph (b), do not apply if the applicant was 
124.3 	not paid any unemployment benefits on the benefit account that is being withdrawn.
124.4 	A determination or amended determination of eligibility or ineligibility issued under 
124.5 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
124.6 	effect and is not voided by the withdrawal of the benefit account.
124.7 	(d) An application for unemployment benefits is not allowed before the Sunday following 
124.8 	the expiration of the benefit year on a prior benefit account. Except as allowed under 
124.9 	paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks. 
124.10 	This paragraph applies to benefit accounts established under any federal law or the law of 
124.11 	any other state.

124.12 	Sec. 5. Minnesota Statutes 2016, section 268.085, subdivision 1, is amended to read:
124.13 		Subdivision 1.Eligibility conditions. An applicant may be eligible to receive 
124.14 	unemployment benefits for any week if:
124.15 	(1) the applicant has filed a continued request for unemployment benefits for that week 
124.16 	under section 268.0865;
124.17 	(2) the week for which unemployment benefits are requested is in the applicant's benefit 
124.18 	year;
124.19 	(3) the applicant was unemployed as defined in section 268.035, subdivision 26;
124.20 	(4) the applicant was available for suitable employment as defined in subdivision 15. 
124.21 	The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the 
124.22 	applicant is unavailable for suitable employment. This clause does not apply to an applicant 
124.23 	who is in reemployment assistance training, or each day the applicant is on jury duty or 
124.24 	serving as an election judge;
124.25 	(5) the applicant was actively seeking suitable employment as defined in subdivision 
124.26 	16. This clause does not apply to an applicant who is in reemployment assistance training 
124.27 	or who was on jury duty throughout the week;
124.28 	(6) the applicant has served a nonpayable period of one week that the applicant is 
124.29 	otherwise eligible for some amount of unemployment benefits. This clause does not apply 
124.30 	if the applicant would have been eligible for federal disaster unemployment assistance 
124.31 	because of a disaster in Minnesota, but for the applicant's establishment of a benefit account 
124.32 	under section 268.07; and
125.1 	(7) the applicant has been participating in reemployment assistance services, such as 
125.2 	development of, and adherence to, a work search plan, if the applicant has been directed to 
125.3 	participate by the commissioner. This clause does not apply if the applicant has good cause 
125.4 	for failing to participate. "Good cause" is a reason that would have prevented a reasonable 
125.5 	person acting with due diligence from participating.

125.6 	Sec. 6. Minnesota Statutes 2016, section 268.085, subdivision 13a, is amended to read:
125.7 		Subd. 13a.Leave of absence. (a) An applicant on a voluntary leave of absence is 
125.8 	ineligible for unemployment benefits for the duration of the leave of absence. An applicant 
125.9 	on an involuntary leave of absence is not ineligible under this subdivision.
125.10 	A leave of absence is voluntary when work that the applicant can then perform is available 
125.11 	with the applicant's employer but the applicant chooses not to work. A medical leave of 
125.12 	absence is not presumed to be voluntary.
125.13 	(b) A period of vacation requested by the applicant, paid or unpaid, is considered a 
125.14 	voluntary leave of absence. A vacation period assigned by an employer under: (1) a uniform 
125.15 	vacation shutdown; (2) a collective bargaining agreement; or (3) an established employer 
125.16 	policy, is considered an involuntary leave of absence.
125.17 	(c) A leave of absence is a temporary stopping of work that has been approved by the 
125.18 	employer. A voluntary leave of absence is not considered a quit and an involuntary leave 
125.19 	of absence is not considered a discharge from employment for purposes of section 268.095.
125.20 	(d) An applicant who is on a paid leave of absence, whether the leave of absence is 
125.21 	voluntary or involuntary, is ineligible for unemployment benefits for the duration of the 
125.22 	leave.
125.23 	(e) This subdivision applies to a leave of absence from a base period employer, an 
125.24 	employer during the period between the end of the base period and the effective date of the 
125.25 	benefit account, or an employer during the benefit year.

125.26 	Sec. 7. Minnesota Statutes 2016, section 268.105, subdivision 2, is amended to read:
125.27 		Subd. 2.Request for reconsideration. (a) Any party, or the commissioner, may within 
125.28 	20 calendar days of the sending of the unemployment law judge's decision under subdivision 
125.29 	1a, file a request for reconsideration asking the judge to reconsider that decision.
125.30 	(b) Upon a request for reconsideration having been filed, the chief unemployment law 
125.31 	judge must send a notice, by mail or electronic transmission, to all parties that a request for 
125.32 	reconsideration has been filed. The notice must inform the parties:
126.1 	(1) that reconsideration is the procedure for the unemployment law judge to correct any 
126.2 	factual or legal mistake in the decision, or to order an additional hearing when appropriate;
126.3 	(2) of the opportunity to provide comment on the request for reconsideration, and the 
126.4 	right under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered 
126.5 	or received into evidence at the hearing;
126.6 	(3) that providing specific comments as to a perceived factual or legal mistake in the 
126.7 	decision, or a perceived mistake in procedure during the hearing, will assist the 
126.8 	unemployment law judge in deciding the request for reconsideration;
126.9 	(4) of the right to obtain any comments and submissions provided by any other party 
126.10 	regarding the request for reconsideration; and
126.11 	(5) of the provisions of paragraph (c) regarding additional evidence.
126.12 	This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not 
126.13 	mean the unemployment law judge has decided the request for reconsideration was timely 
126.14 	filed.
126.15 	(c) In deciding a request for reconsideration, the unemployment law judge must not 
126.16 	consider any evidence that was not submitted at the hearing, except for purposes of 
126.17 	determining whether to order an additional hearing.
126.18 	The unemployment law judge must order an additional hearing if a party shows that 
126.19 	evidence which was not submitted at the hearing:
126.20 	(1) would likely change the outcome of the decision and there was good cause for not 
126.21 	having previously submitted that evidence; or
126.22 	(2) would show that the evidence that was submitted at the hearing was likely false and 
126.23 	that the likely false evidence had an effect on the outcome of the decision.
126.24 	"Good cause" for purposes of this paragraph is a reason that would have prevented a 
126.25 	reasonable person acting with due diligence from submitting the evidence.
126.26 	(d) If the party who filed the request for reconsideration failed to participate in the 
126.27 	hearing, the unemployment law judge must issue an order setting aside the decision and 
126.28 	ordering an additional hearing if the party who failed to participate had good cause for 
126.29 	failing to do so. The party who failed to participate in the hearing must be informed of the 
126.30 	requirement to show good cause for failing to participate. If the unemployment law judge 
126.31 	determines that good cause for failure to participate has not been shown, the judge must 
126.32 	state that in the decision issued under paragraph (f).
127.1 	Submission of a written statement at the hearing does not constitute participation for 
127.2 	purposes of this paragraph.
127.3 	"Good cause" for purposes of this paragraph is a reason that would have prevented a 
127.4 	reasonable person acting with due diligence from participating in the hearing.
127.5 	(e) A request for reconsideration must be decided by the unemployment law judge who 
127.6 	issued the decision under subdivision 1a unless that judge:
127.7 	(1) is no longer employed by the department;
127.8 	(2) is on an extended or indefinite leave; or
127.9 	(3) has been removed from the proceedings by the chief unemployment law judge.
127.10 	(f) If a request for reconsideration is timely filed, the unemployment law judge must 
127.11 	issue:
127.12 	(1) a decision affirming the findings of fact, reasons for decision, and decision issued 
127.13 	under subdivision 1a;
127.14 	(2) a decision modifying the findings of fact, reasons for decision, and decision under 
127.15 	subdivision 1a; or
127.16 	(3) an order setting aside the findings of fact, reasons for decision, and decision issued 
127.17 	under subdivision 1a, and ordering an additional hearing.
127.18 	The unemployment law judge must issue a decision dismissing the request for 
127.19 	reconsideration as untimely if the judge decides the request for reconsideration was not 
127.20 	filed within 20 calendar days after the sending of the decision under subdivision 1a.
127.21 	The unemployment law judge must send to all parties, by mail or electronic transmission, 
127.22 	the decision or order issued under this subdivision. A decision affirming or modifying the 
127.23 	previously issued findings of fact, reasons for decision, and decision, or a decision dismissing 
127.24 	the request for reconsideration as untimely, is the final decision on the matter and is binding 
127.25 	on the parties unless judicial review is sought under subdivision 7.

127.26 	ARTICLE 7
127.27 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
127.28 	TECHNICAL

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

128.1 	Sec. 2. Minnesota Statutes 2016, section 268.035, subdivision 15, is amended to read:
128.2 		Subd. 15.Employment. (a) "Employment" means service performed by:
128.3 	(1) an individual who is considered an employee under the common law of 
128.4 	employer-employee and not considered an independent contractor;
128.5 	(2) an officer of a corporation;
128.6 	(3) a member of a limited liability company who is considered an employee under the 
128.7 	common law of employer-employee; or
128.8 	(4) product demonstrators in retail stores or other locations to aid in the sale of products. 
128.9 	The person that pays the wages is considered the employer; or.
128.10 	(5) an individual who performs services for a person for compensation, as:
128.11 	(i) an agent-driver or commission-driver engaged in distributing meat products, vegetable 
128.12 	products, fruit products, beverages, or laundry or dry cleaning services; or
128.13 	(ii) a traveling or city salesperson, other than as an agent-driver or commission-driver, 
128.14 	engaged full-time in the solicitation on behalf of the person, of orders from wholesalers, 
128.15 	retailers, contractors, or operators of hotels, restaurants, or other similar establishments for 
128.16 	merchandise for resale or supplies for use in their business operations.
128.17 	This clause applies only if the contract of service provides that substantially all of the 
128.18 	services are to be performed personally by the individual, and the services are part of a 
128.19 	continuing relationship with the person for whom the services are performed, and the 
128.20 	individual does not have a substantial investment in facilities used in connection with the 
128.21 	performance of the services, other than facilities for transportation.
128.22 	(b) Employment does not include service as a juror.
128.23 	(c) Construction industry employment is defined in subdivision 9a. Trucking and 
128.24 	messenger/courier industry employment is defined in subdivision 25b. Rules on determining 
128.25 	worker employment status are described under Minnesota Rules, chapter 3315.

128.26 	Sec. 3. Minnesota Statutes 2016, section 268.035, subdivision 23, is amended to read:
128.27 		Subd. 23.State's average annual and average weekly wage. (a) On or before June 30 
128.28 	of each year, the commissioner must calculate, from wage detail reports under section 
128.29 	268.044, the state's average annual wage and the state's average weekly wage in the following 
128.30 	manner:
129.1 	(1) the sum of the total monthly covered employment reported by all employers for the 
129.2 	prior calendar year is divided by 12 to calculate the average monthly covered employment.;
129.3 	(2) the sum of the total wages paid for all covered employment reported by all employers 
129.4 	for the prior calendar year is divided by the average monthly covered employment to calculate 
129.5 	the state's average annual wage.; and
129.6 	(3) the state's average annual wage is divided by 52 to calculate the state's average weekly 
129.7 	wage.
129.8 	(b) For purposes of calculating the amount of taxable wages under subdivision 24, the 
129.9 	state's average annual wage applies to the calendar year following the calculation.
129.10 	(c) For purposes of calculating (1) the state's maximum weekly unemployment benefit 
129.11 	amount available on any benefit account under section 268.07, subdivision 2a, and (2) the 
129.12 	state's average weekly wage applies to the one-year period beginning the last Sunday in 
129.13 	October of the calendar year of the calculation.
129.14 	(d) For purposes of calculating the wage credits necessary to establish a benefit account 
129.15 	under section 268.07, subdivision 2, the state's average weekly wage applies to the one-year 
129.16 	period beginning the last Sunday in October of the calendar year of the calculation.

129.17 	Sec. 4. Minnesota Statutes 2016, section 268.035, subdivision 30, is amended to read:
129.18 		Subd. 30.Wages paid. (a) "Wages paid" means the amount of wages:
129.19 	(1) that have been actually paid; or
129.20 	(2) that have been credited to or set apart so that payment and disposition is under the 
129.21 	control of the employee.
129.22 	(b) Wage payments delayed beyond the regularly scheduled pay date are considered
129.23 	"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date of 
129.24 	actual payment. Any wages earned but not paid with no scheduled date of payment is 
129.25 	considered are "wages paid" on the last day of employment.
129.26 	(c) Wages paid does not include wages earned but not paid except as provided for in 
129.27 	this subdivision.

129.28 	Sec. 5. Minnesota Statutes 2016, section 268.042, subdivision 1, is amended to read:
129.29 		Subdivision 1.Employer registration. (a) Each employer must, upon or before the 
129.30 	submission of its first wage detail report under section 268.044, register with the 
129.31 	commissioner for a tax account or a reimbursable account, by electronic transmission in a 
130.1 	format prescribed by the commissioner. The employer must provide all required information 
130.2 	for registration, including the actual physical street and city address of the employer.
130.3 	(b) Within 30 calendar days, each employer must notify the commissioner by electronic 
130.4 	transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or 
130.5 	acquisition of a business conducted in Minnesota, in whole or in part, if the transaction 
130.6 	results in the creation of a new or different employer or affects the establishment of employer 
130.7 	accounts, the assignment of tax rates, or the transfer of experience rating history.
130.8 	(c) Except as provided in subdivision 3, any person that is or becomes an employer 
130.9 	subject to the Minnesota Unemployment Insurance Law with covered employment within 
130.10 	any calendar year is considered to be subject to this chapter the entire calendar year.
130.11 	(d) Within 30 calendar days of the termination of business, an employer that has been 
130.12 	assigned a tax account or reimbursable account must notify the commissioner by electronic 
130.13 	transmission, in a format prescribed by the commissioner, if that employer does not intend 
130.14 	or expect to pay wages to any employees in covered employment during the current or the 
130.15 	next calendar year. Upon notification, the employer is no longer required to file wage detail 
130.16 	reports under section 268.044, subdivision 1, paragraph (d), and the employer's account 
130.17 	must be terminated.
130.18 	(e) An employer that has its account terminated regains its previous tax account under 
130.19 	section 268.045, with the experience rating history of that account, if the employer again 
130.20 	commences business and again pays wages in covered employment if:
130.21 	(1) less than 14 calendar quarters have elapsed in which no wages were paid for covered 
130.22 	employment;
130.23 	(2) the experience rating history regained contains taxable wages; and
130.24 	(3) the experience rating history has not been transferred to a successor under section 
130.25 	268.051, subdivision 4.

130.26 	Sec. 6. Minnesota Statutes 2016, section 268.051, subdivision 1, is amended to read:
130.27 		Subdivision 1.Payments. (a) Unemployment insurance taxes and any special 
130.28 	assessments, fees, or surcharges accrue and become payable by each employer for each 
130.29 	calendar year on the taxable wages that the employer paid to employees in covered 
130.30 	employment, except for:
130.31 	(1) nonprofit organizations that elect to make reimbursements as provided in section 
130.32 	268.053; and
131.1 	(2) the state of Minnesota and political subdivisions that make reimbursements, unless 
131.2 	they elect to pay taxes as provided in section 268.052.
131.3 	Each employer must pay taxes quarterly, at the employer's assigned tax rate under 
131.4 	subdivision 6, on the taxable wages paid to each employee. The commissioner must compute 
131.5 	the tax due from the wage detail report required under section 268.044 and notify the 
131.6 	employer of the tax due. The taxes and any special assessments, fees, or surcharges must 
131.7 	be paid to the trust fund and must be received by the department on or before the last day 
131.8 	of the month following the end of the calendar quarter.
131.9 	(b) If for any reason the wages on the wage detail report under section 268.044 are 
131.10 	adjusted for any quarter, the commissioner must recompute the taxes due for that quarter 
131.11 	and assess the employer for any amount due or credit the employer as appropriate.

131.12 	Sec. 7. Minnesota Statutes 2016, section 268.07, subdivision 2, is amended to read:
131.13 		Subd. 2.Benefit account requirements. (a) Unless paragraph (b) applies, to establish 
131.14 	a benefit account an applicant must have total wage credits in the applicant's four quarter 
131.15 	base period of at least 5.3 percent of the state's average annual wage rounded down to the 
131.16 	next lower $100.
131.17 	(b) To establish a new benefit account following the expiration of the benefit year on a 
131.18 	prior benefit account, an applicant must have performed actual work in subsequent covered 
131.19 	employment and have been paid wages in one or more completed calendar quarters that 
131.20 	started after the effective date of the prior benefit account. The wages paid for that 
131.21 	employment must be at least enough to meet the requirements of paragraph (a). A benefit 
131.22 	account under this paragraph may not be established effective earlier than the Sunday 
131.23 	following the end of the most recent completed calendar quarter in which the requirements 
131.24 	of paragraph (a) were met. An applicant may not establish a second benefit account as a 
131.25 	result of one loss of employment.

131.26 	Sec. 8. Minnesota Statutes 2016, section 268.07, subdivision 3a, is amended to read:
131.27 		Subd. 3a.Right of appeal. (a) A determination or amended determination of benefit 
131.28 	account is final unless an applicant or base period employer within 20 calendar days after 
131.29 	the sending of the determination or amended determination files an appeal. Every 
131.30 	determination or amended determination of benefit account must contain a prominent 
131.31 	statement indicating in clear language the consequences of not appealing. Proceedings on 
131.32 	the appeal are conducted in accordance with section 268.105.
132.1 	(b) Any applicant or base period employer may appeal from a determination or amended 
132.2 	determination of benefit account on the issue of whether services performed constitute 
132.3 	employment, whether the employment is considered covered employment, and whether 
132.4 	money paid constitutes wages. Proceedings on the appeal are conducted in accordance with 
132.5 	section 268.105.

132.6 	Sec. 9. Minnesota Statutes 2016, section 268.085, subdivision 6, is amended to read:
132.7 		Subd. 6.Receipt of back pay. (a) Back pay received by an applicant within 24 months 
132.8 	of the establishment of the benefit account with respect to any week must be deducted from 
132.9 	unemployment benefits paid for that week, and the applicant is considered to have been
132.10 	overpaid the unemployment benefits under section 268.18, subdivision 1.
132.11 	If the back pay is not paid with respect to a specific period, the back pay must be applied 
132.12 	to the period immediately following the last day of employment.
132.13 	(b) If the back pay is reduced by the amount of unemployment benefits that have been 
132.14 	paid, the amount of back pay withheld and not paid the applicant must be:
132.15 	(1) paid by the taxpaying or reimbursing employer to the trust fund within 30 calendar 
132.16 	days and is subject to the same collection procedures that apply to past due taxes and 
132.17 	reimbursements; and
132.18 	(2) when received by the trust fund:
132.19 	(i) an overpayment of unemployment benefits must be created which, under section 
132.20 	268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account of any 
132.21 	effect; and
132.22 	(ii) the back pay must then be applied to the unemployment benefit overpayment, 
132.23 	eliminating any effect on the applicant.
132.24 	(c) The following must result when applying paragraph (b):
132.25 	(1) an employer neither overpays nor underpays the employer's proper portion of the 
132.26 	unemployment benefit costs; and
132.27 	(2) the applicant is placed in the same position as never having been paid the 
132.28 	unemployment benefits.
132.29 	(d) This subdivision applies to payments labeled front pay, settlement pay, and other 
132.30 	terms describing or dealing with wage loss.

133.1 	Sec. 10. Minnesota Statutes 2016, section 268.085, subdivision 7, is amended to read:
133.2 		Subd. 7.School employees; between terms denial. (a) No Wage credits in any amount
133.3 	from any employment with any an educational institution or institutions earned in any 
133.4 	capacity may not be used for unemployment benefit purposes for any week during the period 
133.5 	between two successive academic years or terms if:
133.6 	(1) the applicant had employment for any an educational institution or institutions in the 
133.7 	prior academic year or term; and
133.8 	(2) there is a reasonable assurance that the applicant will have employment for any an
133.9 	educational institution or institutions in the following academic year or term, unless that.
133.10 	This paragraph applies to a vacation period or holiday recess if the applicant was 
133.11 	employed immediately before the vacation period or holiday recess, and there is a reasonable 
133.12 	assurance that the applicant will be employed immediately following the vacation period 
133.13 	or holiday recess. This paragraph also applies to the period between two regular but not 
133.14 	successive terms if there is an agreement for that schedule between the applicant and the 
133.15 	educational institution.
133.16 	This paragraph does not apply if the subsequent employment is substantially less 
133.17 	favorable than the employment of the prior academic year or term, or the employment prior 
133.18 	to the vacation period or holiday recess.
133.19 	(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic 
133.20 	year or term, had an agreement for a definite period of employment between academic years 
133.21 	or terms in other than an instructional, research, or principal administrative capacity and 
133.22 	the educational institution or institutions failed to provide that employment.
133.23 	(c) If unemployment benefits are denied to any applicant under paragraph (a) who was 
133.24 	employed in the prior academic year or term in other than an instructional, research, or 
133.25 	principal administrative capacity and who was not offered an opportunity to perform the 
133.26 	employment in the following academic year or term, the applicant is entitled to retroactive 
133.27 	unemployment benefits for each week during the period between academic years or terms 
133.28 	that the applicant filed a timely continued request for unemployment benefits, but 
133.29 	unemployment benefits were denied solely because of paragraph (a).
133.30 	(d) An educational assistant is not considered to be in an instructional, research, or 
133.31 	principal administrative capacity.
133.32 	(e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was 
133.33 	employed immediately before the vacation period or holiday recess, and there is a reasonable 
134.1 	assurance that the applicant will be employed immediately following the vacation period 
134.2 	or holiday recess.
134.3 	(f) (d) This subdivision applies to employment with an educational service agency if the 
134.4 	applicant performed the services at an educational institution or institutions. "Educational 
134.5 	service agency" means a governmental agency or entity established and operated exclusively
134.6 	for the purpose of providing services to one or more educational institutions.
134.7 	(e) This subdivision also applies to employment with Minnesota or, a political 
134.8 	subdivision, or a nonprofit organization, if the services are provided to or on behalf of an 
134.9 	educational institution or institutions.
134.10 	(g) Paragraphs (a) and (e) apply (f) Paragraph (a) applies beginning the Sunday of the 
134.11 	week that there is a reasonable assurance of employment.
134.12 	(h) (g) Employment and a reasonable assurance with multiple education institutions 
134.13 	must be aggregated for purposes of application of this subdivision.
134.14 	(i) (h) If all of the applicant's employment with any educational institution or institutions 
134.15 	during the prior academic year or term consisted of on-call employment, and the applicant 
134.16 	has a reasonable assurance of any on-call employment with any educational institution or 
134.17 	institutions for the following academic year or term, it is not considered substantially less 
134.18 	favorable employment.
134.19 	(j) Paragraph (a) also applies to the period between two regular but not successive terms.
134.20 	(k) (i) A "reasonable assurance" may be written, oral, implied, or established by custom 
134.21 	or practice.
134.22 	(l) (j) An "educational institution" is an a school, college, university, or other educational 
134.23 	entity operated by Minnesota or, a political subdivision or an instrumentality thereof, or an 
134.24 	educational a nonprofit organization described in United States Code, title 26, section 
134.25 	501(c)(3) of the federal Internal Revenue Code, and exempt from income tax under section 
134.26 	501(a).
134.27 	(k) An "instructional, research, or principal administrative capacity" does not include 
134.28 	an educational assistant.

134.29 	Sec. 11. Minnesota Statutes 2016, section 268.085, subdivision 12, is amended to read:
134.30 		Subd. 12.Aliens. (a) An alien is ineligible for unemployment benefits for any week the 
134.31 	alien is not authorized to work in the United States under federal law. Information from the 
134.32 	Bureau of Citizenship and Immigration Services is considered conclusive, absent specific 
135.1 	evidence that the information was erroneous. Under the existing agreement between the 
135.2 	United States and Canada, this paragraph does not apply to an applicant who is a Canadian 
135.3 	citizen and has returned to and is living in Canada each week unemployment benefits are 
135.4 	requested.
135.5 	(b) Unemployment benefits must not be paid on the basis of An alien's wage credits 
135.6 	earned by an alien may not be used for unemployment benefit purposes unless the alien
135.7 	was:
135.8 	(1) was lawfully admitted for permanent residence at the time of the employment,;
135.9 	(2) was lawfully present for the purposes of the employment,; or
135.10 	(3) was permanently residing in the United States under color of law at the time of the 
135.11 	employment.
135.12 	(c) Any Information required of applicants applying for unemployment benefits to 
135.13 	determine eligibility because of their alien status must be required from of all applicants.

135.14 	Sec. 12. Minnesota Statutes 2016, section 268.0865, subdivision 5, is amended to read:
135.15 		Subd. 5.Good cause defined. (a) "Good cause" for purposes of this section is a 
135.16 	compelling substantial reason that would have prevented a reasonable person acting with 
135.17 	due diligence from filing a continued request for unemployment benefits within the time 
135.18 	periods required.
135.19 	(b) "Good cause" does not include forgetfulness, loss of the continued request form if 
135.20 	filing by mail, having returned to work, having an appeal pending, or inability to file a 
135.21 	continued request for unemployment benefits by the method designated if the applicant was 
135.22 	aware of the inability and did not make diligent effort to have the method of filing a continued 
135.23 	request changed by the commissioner. "Good cause" does not include having previously 
135.24 	made an attempt to file a continued request for unemployment benefits but where the 
135.25 	communication was not considered a continued request because the applicant failed to 
135.26 	submit all required information.

135.27 	Sec. 13. Minnesota Statutes 2016, section 268.095, subdivision 1, is amended to read:
135.28 		Subdivision 1.Quit. An applicant who quit employment is ineligible for all 
135.29 	unemployment benefits according to subdivision 10 except when:
135.30 	(1) the applicant quit the employment because of a good reason caused by the employer 
135.31 	as defined in subdivision 3;
136.1 	(2) the applicant quit the employment to accept other covered employment that provided 
136.2 	equal to or better terms and conditions of employment, but the applicant did not work long 
136.3 	enough at the second employment to have sufficient subsequent wages paid to satisfy the 
136.4 	period of ineligibility that would otherwise be imposed under subdivision 10 for quitting 
136.5 	the first employment;
136.6 	(3) the applicant quit the employment within 30 calendar days of beginning the 
136.7 	employment and the employment was unsuitable;
136.8 	(4) the employment was unsuitable and the applicant quit to enter reemployment 
136.9 	assistance training;
136.10 	(5) the employment was part time and the applicant also had full-time employment in 
136.11 	the base period, from which full-time employment the applicant separated because of reasons 
136.12 	for which the applicant is would not be ineligible, and the wage credits from the full-time 
136.13 	employment are sufficient to meet the minimum requirements to establish a benefit account 
136.14 	under section 268.07;
136.15 	(6) the applicant quit because the employer notified the applicant that the applicant was 
136.16 	going to be laid off because of lack of work within 30 calendar days. An applicant who quit 
136.17 	employment within 30 calendar days of a notified date of layoff because of lack of work is 
136.18 	ineligible for unemployment benefits through the end of the week that includes the scheduled 
136.19 	date of layoff;
136.20 	(7) the applicant quit the employment (i) because the applicant's serious illness or injury 
136.21 	made it medically necessary that the applicant quit; or (ii) in order to provide necessary care 
136.22 	because of the illness, injury, or disability of an immediate family member of the applicant. 
136.23 	This exception only applies if the applicant informs the employer of the medical problem 
136.24 	and requests accommodation and no reasonable accommodation is made available.
136.25 	If the applicant's serious illness is chemical dependency, this exception does not apply 
136.26 	if the applicant was previously diagnosed as chemically dependent or had treatment for 
136.27 	chemical dependency, and since that diagnosis or treatment has failed to make consistent 
136.28 	efforts to control the chemical dependency.
136.29 	This exception raises an issue of the applicant's being available for suitable employment 
136.30 	under section 268.085, subdivision 1, that the commissioner must determine;
136.31 	(8) the applicant's loss of child care for the applicant's minor child caused the applicant 
136.32 	to quit the employment, provided the applicant made reasonable effort to obtain other child 
137.1 	care and requested time off or other accommodation from the employer and no reasonable 
137.2 	accommodation is available.
137.3 	This exception raises an issue of the applicant's being available for suitable employment 
137.4 	under section 268.085, subdivision 1, that the commissioner must determine;
137.5 	(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant 
137.6 	or an immediate family member of the applicant, necessitated the applicant's quitting the 
137.7 	employment.
137.8 	For purposes of this subdivision:
137.9 	(i) "domestic abuse" has the meaning given in section 518B.01;
137.10 	(ii) "sexual assault" means an act that would constitute a violation of sections 609.342
137.11 	to 609.3453 or 609.352; and
137.12 	(iii) "stalking" means an act that would constitute a violation of section 609.749; or
137.13 	(10) the applicant quit in order to relocate to accompany a spouse:
137.14 	(1) (i) who is in the military; or
137.15 	(2) (ii) whose job was transferred by the spouse's employer to a new location making it 
137.16 	impractical for the applicant to commute.

137.17 	Sec. 14. Minnesota Statutes 2016, section 268.095, subdivision 2, is amended to read:
137.18 		Subd. 2.Quit defined. (a) A quit from employment occurs when the decision to end 
137.19 	the employment was, at the time the employment ended, the employee's.
137.20 	(b) When determining if an applicant quit, the theory of a constructive quit does not 
137.21 	apply.
137.22 	(c) An employee who has been notified that the employee will be discharged in the 
137.23 	future, who chooses to end the employment while employment in any capacity is still 
137.24 	available, has quit the employment.
137.25 	(d) A notice of quitting in the future does not constitute a quit at the time the notice is 
137.26 	given. An employee who seeks to withdraw a previously submitted notice of quitting in the 
137.27 	future has quit the employment, as of the intended date of quitting, if the employer does not 
137.28 	agree that the notice may be withdrawn.
137.29 	(e) An applicant has quit employment with a staffing service if, within five calendar 
137.30 	days after completion of a suitable job assignment from a staffing service, the applicant:
138.1 	(1) fails without good cause to affirmatively request an additional suitable job assignment;
138.2 	(2) refuses without good cause an additional suitable job assignment offered; or
138.3 	(3) accepts employment with the client of the staffing service. Accepting employment 
138.4 	with the client of the staffing service meets the requirements of the exception to ineligibility 
138.5 	under subdivision 1, clause (2).
138.6 	This paragraph applies only if, at the time of beginning of employment with the staffing 
138.7 	service, the applicant signed and was provided a copy of a separate document written in 
138.8 	clear and concise language that informed the applicant of this paragraph and that 
138.9 	unemployment benefits may be affected.
138.10 	For purposes of this paragraph, "good cause" is a reason that would compel an average, 
138.11 	reasonable worker, who would otherwise want an additional suitable job assignment with 
138.12 	the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered 
138.13 	assignment.

138.14 	Sec. 15. Minnesota Statutes 2016, section 268.131, is amended to read:
138.15 	268.131 RECIPROCAL UNEMPLOYMENT BENEFIT COMBINED WAGE
138.16 	ARRANGEMENTS FOR WORK IN MULTIPLE STATES.
138.17 		Subdivision 1.Cooperation with other states on combining wages. (a) In accordance 
138.18 	with the requirements of United States Code, title 26, section 3304(a)(9)(B), the Federal 
138.19 	Unemployment Tax Act, the commissioner must participate in reciprocal arrangements with 
138.20 	other states for the payment of unemployment benefits on the basis of combining an 
138.21 	applicant's wages from multiple states for the purposes of collecting unemployment benefits 
138.22 	from a single state. The reciprocal agreement must include provisions for applying the base 
138.23 	period of a single state law to a benefit account involving the combining of an applicant's 
138.24 	wages and employment and avoiding the duplicate use of wages by reason of such combining.
138.25 	The commissioner may not enter into any reciprocal arrangement unless it contains provisions 
138.26 	for only pay unemployment benefits from the trust fund under this section if:
138.27 	(1) there are reimbursements to the trust fund, by the other state, for unemployment 
138.28 	benefits paid from the trust fund to applicants based upon wages and employment covered 
138.29 	under the laws of the other state.; and
138.30 	(b) The commissioner is authorized to pay unemployment benefits based upon an 
138.31 	applicant's wages paid in covered employment in another state only if (2) the applicant is 
138.32 	combining Minnesota wage credits with the wages paid in covered employment from another 
138.33 	state or states.
139.1 	(c) Section 268.23 does not apply to this subdivision.
139.2 	(d) On any reciprocal arrangement, (b) Under this section, the wages paid an applicant 
139.3 	from employment covered under an unemployment insurance program of another state are 
139.4 	considered wages from covered employment for the purpose of determining the applicant's 
139.5 	rights to unemployment benefits under the Minnesota Unemployment Insurance Law.
139.6 		Subd. 2.Cooperation with foreign governments. The commissioner is authorized to 
139.7 	enter into or cooperate in arrangements whereby facilities and services provided under the 
139.8 	Minnesota Unemployment Insurance Law and facilities and services provided under the 
139.9 	unemployment insurance program of any foreign government, may be used for the taking 
139.10 	of applications for unemployment benefits and continued requests and the payment of 
139.11 	unemployment benefits under this law or under a similar law of a foreign government.

139.12 	Sec. 16. Minnesota Statutes 2016, section 268.18, subdivision 2, is amended to read:
139.13 		Subd. 2.Overpayment because of fraud misrepresentation. (a) An applicant has 
139.14 	committed fraud misrepresentation if the applicant is overpaid unemployment benefits by:
139.15 	(1) knowingly misrepresenting, misstating, or failing to disclose any material fact; or
139.16 	(2) making a false statement or representation without a good faith belief as to the 
139.17 	correctness of the statement or representation.
139.18 	After the discovery of facts indicating fraud misrepresentation, the commissioner must 
139.19 	issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the 
139.20 	amount overpaid. This penalty is in addition to penalties under section 268.182.
139.21 	(b) Unless the applicant files an appeal within 20 calendar days after the sending of a 
139.22 	determination of overpayment penalty to the applicant by mail or electronic transmission, 
139.23 	the determination is final. Proceedings on the appeal are conducted in accordance with 
139.24 	section 268.105.
139.25 	(c) A determination of overpayment penalty must state the methods of collection the 
139.26 	commissioner may use to recover the overpayment, penalty, and interest assessed. Money 
139.27 	received in repayment of overpaid unemployment benefits, penalties, and interest is first 
139.28 	applied to the benefits overpaid, then to the penalty amount due, then to any interest due. 
139.29 	62.5 percent of the payments made toward the penalty are credited to the contingent account 
139.30 	and 37.5 percent credited to the trust fund.
140.1 	(d) The department is authorized to issue a determination of overpayment penalty under 
140.2 	this subdivision may be issued within 48 months of the establishment of the benefit account 
140.3 	upon which the unemployment benefits were obtained through fraud misrepresentation.

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

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

140.20 	Sec. 19. Minnesota Statutes 2016, section 268.182, is amended to read:
140.21 	268.182 APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF 
140.22 	FACTS FRAUD; CRIMINAL PENALTY.
140.23 		Subdivision 1.Criminal penalties. WhoeverAn individual has committed fraud and is 
140.24 	guilty of theft and must be sentenced under section 609.52 if the individual obtains, or 
140.25 	attempts to obtain, or aids or abets any other individual to obtain, by means of an intentional 
140.26 	false statement or representation, by intentional concealment of a material fact, or by 
140.27 	impersonation or other fraudulent means, unemployment benefits that the individual is not 
140.28 	entitled or unemployment benefits greater than the individual is entitled to under this chapter, 
140.29 	or under the federal law of any state or of the federal government, either personally or for 
140.30 	any other individual, is guilty of theft and must be sentenced under section 609.52.
140.31 		Subd. 2.Administrative penalties. (a) Any applicant who knowingly makes a false 
140.32 	statement or representation, who knowingly fails to disclose a material fact, or who makes 
141.1 	a false statement or representation without a good faith belief as to the correctness of the 
141.2 	statement or representation, in order to obtain or in an attempt to obtain unemployment 
141.3 	benefits may be assessed, in addition to any other penalties, an administrative penalty of 
141.4 	being ineligible for unemployment benefits for 13 to 104 weeks.
141.5 	(b) A determination of ineligibility setting out the weeks the applicant is ineligible must 
141.6 	be sent to the applicant by mail or electronic transmission. The department is authorized to 
141.7 	issue a determination of ineligibility under this subdivision may be issued within 48 months 
141.8 	of the establishment of the benefit account upon which the unemployment benefits were 
141.9 	obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of 
141.10 	sending, the determination is final. Proceedings on the appeal are conducted in accordance 
141.11 	with section 268.105.

141.12 	Sec. 20. Minnesota Statutes 2016, section 268.184, is amended to read:
141.13 	268.184 EMPLOYER MISCONDUCT; PENALTY MISREPRESENTATION AND 
141.14 	MISREPORTING; ADMINISTRATIVE PENALTIES.
141.15 		Subdivision 1.Misrepresentation; administrative penalties. (a) The commissioner 
141.16 	must penalize an employer if that employer or any employee, officer, or agent of that 
141.17 	employer, is in collusion with any applicant for the purpose of assisting the applicant to 
141.18 	receive unemployment benefits fraudulently. The penalty is $500 or the amount of 
141.19 	unemployment benefits determined to be overpaid, whichever is greater.
141.20 	(b) The commissioner must penalize an employer if that employer or any employee, 
141.21 	officer, or agent of that employer: (1) made a false statement or representation knowing it 
141.22 	to be false; (2) made a false statement or representation without a good faith belief as to 
141.23 	correctness of the statement or representation; (3) or knowingly failed to disclose a material 
141.24 	fact; or (4) made an offer of employment to an applicant when, in fact, the employer had 
141.25 	no employment available. in order to:
141.26 	(1) assist an applicant to receive unemployment benefits to which the applicant is not 
141.27 	entitled;
141.28 	(2) prevent or reduce the payment of unemployment benefits to an applicant; or
141.29 	(3) avoid or reduce any payment required from an employer under this chapter or section 
141.30 	116L.20.
141.31 	The penalty is the greater of $500 or 50 percent of the following resulting from the employer's 
141.32 	action:
142.1 	(i) the amount of any overpaid unemployment benefits to an applicant;
142.2 	(ii) the amount of unemployment benefits not paid to an applicant that would otherwise 
142.3 	have been paid; or
142.4 	(iii) the amount of any payment required from the employer under this chapter or section 
142.5 	116L.20 that was not paid.
142.6 	(c) (b) The commissioner must penalize an employer if that employer failed or refused 
142.7 	to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of 
142.8 	enforcing the subpoena, including attorney fees.
142.9 	(d) (c) Penalties under this subdivision and under section 268.047, subdivision 4, 
142.10 	paragraph (b), are in addition to any other penalties and subject to the same collection 
142.11 	procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of 
142.12 	issuance of the determination of penalty and credited to the trust fund.
142.13 	(e) (d) The determination of penalty is final unless the employer files an appeal within 
142.14 	20 calendar days after the sending of the determination of penalty to the employer by mail 
142.15 	or electronic transmission. Proceedings on the appeal are conducted in accordance with 
142.16 	section 268.105.
142.17 		Subd. 1a.Notification and misreporting penalties. (a) If the commissioner finds that 
142.18 	any employer or agent of an employer failed to meet the notification requirements of section 
142.19 	268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two percent 
142.20 	of the first full quarterly payroll acquired, whichever is higher. Payroll is wages paid as 
142.21 	defined in section 268.035, subdivision 30. The penalty under this paragraph must be 
142.22 	canceled if the commissioner determines that the failure occurred because of ignorance or 
142.23 	inadvertence.
142.24 	(b) If the commissioner finds that any individual advised an employer to violate the 
142.25 	employer's notification requirements under section 268.051, subdivision 4, the individual, 
142.26 	and that individual's employer, must each be assessed the penalty in paragraph (a).
142.27 	(c) If the commissioner finds that any person or agent of a person violated the reporting 
142.28 	requirements of section 268.046, the person must be assessed a penalty of $5,000 or two 
142.29 	percent of the quarterly payroll reported in violation of section 268.046, whichever is higher. 
142.30 	Payroll is wages paid as defined in section 268.035, subdivision 30.
142.31 	(d) Penalties under this subdivision are in addition to any other penalties and subject to 
142.32 	the same collection procedures that apply to past due amounts from an employer. Penalties 
143.1 	must be paid within 30 calendar days after sending of the determination of penalty and 
143.2 	credited to the trust fund.
143.3 	(e) The determination of penalty is final unless the person assessed files an appeal within 
143.4 	20 calendar days after sending of the determination of penalty by mail or electronic 
143.5 	transmission. Proceedings on the appeal are conducted in accordance with section 268.105.
143.6 		Subd. 2.Criminal penalties. Any employer or any officer or agent of an employer or 
143.7 	any other individual who has committed fraud and is guilty of a crime, if in order to avoid 
143.8 	or reduce any payment required from an employer under this chapter or section 116L.20, 
143.9 	or to prevent or reduce the payment of unemployment benefits to an applicant:
143.10 	(1) makes a false statement or representation knowing it to be false;
143.11 	(2) knowingly fails to disclose a material fact, including notification required under 
143.12 	section 268.051, subdivision 4; or
143.13 	(3) knowingly advises or assists an employer in violating clause (1) or (2), to avoid or 
143.14 	reduce any payment required from an employer under this chapter or section 116L.20, or 
143.15 	to prevent or reduce the payment of unemployment benefits to any applicant,.
143.16 	The individual is guilty of a gross misdemeanor unless if the underpayment exceeds is $500, 
143.17 	in that case or less. The individual is guilty of a felony if the underpayment exceeds $500.

143.18 	Sec. 21. Minnesota Statutes 2016, section 268.194, subdivision 1, is amended to read:
143.19 		Subdivision 1.Establishment. There is established as a special state trust fund, separate 
143.20 	and apart from all other public money or funds of this state, an unemployment insurance 
143.21 	trust fund, that is administered by the commissioner exclusively for the payment of 
143.22 	unemployment benefits. This trust fund consists of:
143.23 	(1) all taxes collected;
143.24 	(2) interest earned upon any money in the trust fund;
143.25 	(3) reimbursements paid by nonprofit organizations, and the state and political 
143.26 	subdivisions;
143.27 	(4) tax rate buydown payments under section 268.051, subdivision 7;
143.28 	(5) any money received as a loan from the federal unemployment trust fund in accordance 
143.29 	with United States Code, title 42, section 1321, of the Social Security Act;
143.30 	(6) any other money received under a reciprocal unemployment benefit combined wage
143.31 	arrangement with the federal government or any other state;
144.1 	(7) money received from the federal government for unemployment benefits paid under 
144.2 	a federal program;
144.3 	(7) (8) money recovered on overpaid unemployment benefits;
144.4 	(8) (9) all money credited to the account under this chapter;
144.5 	(9) (10) all money credited to the account of Minnesota in the federal unemployment 
144.6 	trust fund under United States Code, title 42, section 1103, of the Social Security Act, also 
144.7 	known as the Reed Act; and
144.8 	(10) (11) all money received for the trust fund from any other source.

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

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

144.21 	Sec. 24. REVISOR'S INSTRUCTION.
 144.22 	(a) In Minnesota Statutes, section 268.18, the revisor of statutes shall change the term 
144.23 	"fraud" to "misrepresentation" and "nonfraud" to "nonmisrepresentation."
144.24 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 268.184, 
144.25 	subdivision 2, as Minnesota Statutes, section 268.182, subdivision 1, paragraph (b).
144.26 	(c) The revisor of statutes shall renumber Minnesota Statutes, section 268.182, subdivision 
144.27 	2, as Minnesota Statutes, section 268.183.
144.28 	(d) The revisor of statutes shall make cross-reference changes needed arising out of the 
144.29 	renumbering in Minnesota Statutes, section 268.032, subdivision 20.

145.1 	Sec. 25. REPEALER.
 145.2 	Laws 2005, chapter 112, article 1, section 14, is repealed.

145.3 	ARTICLE 8
145.4 	COMMERCE POLICY

145.5 	Section 1. Minnesota Statutes 2016, section 45.013, is amended to read:
145.6 	45.013 POWER TO APPOINT STAFF.
145.7 	The commissioner of commerce may appoint four one deputy commissioners
145.8 	commissioner, four assistant commissioners, and an assistant to the commissioner. Those 
145.9 	positions, as well as that of a confidential secretary, are unclassified. The commissioner 
145.10 	may appoint other employees necessary to carry out the duties and responsibilities entrusted 
145.11 	to the commissioner.

145.12 	Sec. 2. Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:
145.13 		Subd. 6.Insurance fraud prevention account. The insurance fraud prevention account 
145.14 	is created in the state treasury. Money received from assessments under subdivision 7 and 
145.15 	transferred from the automobile theft prevention account in section sections65B.84, 
145.16 	subdivision 1, and 297I.11, subdivision 2, is deposited in the account. Money in this fund 
145.17 	is appropriated to the commissioner of commerce for the purposes specified in this section 
145.18 	and sections 60A.951 to 60A.956.

145.19 	EFFECTIVE DATE. This section is effective July 1, 2018.

145.20 	Sec. 3. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:
145.21 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) The 
145.22 	commissioner of commerce shall:
145.23 	(1) develop and sponsor the implementation of statewide plans, programs, and strategies 
145.24 	to combat automobile theft, improve the administration of the automobile theft laws, and 
145.25 	provide a forum for identification of critical problems for those persons dealing with 
145.26 	automobile theft;
145.27 	(2) coordinate the development, adoption, and implementation of plans, programs, and 
145.28 	strategies relating to interagency and intergovernmental cooperation with respect to 
145.29 	automobile theft enforcement;
146.1 	(3) annually audit the plans and programs that have been funded in whole or in part to 
146.2 	evaluate the effectiveness of the plans and programs and withdraw funding should the 
146.3 	commissioner determine that a plan or program is ineffective or is no longer in need of 
146.4 	further financial support from the fund;
146.5 	(4) develop a plan of operation including:
146.6 	(i) an assessment of the scope of the problem of automobile theft, including areas of the 
146.7 	state where the problem is greatest;
146.8 	(ii) an analysis of various methods of combating the problem of automobile theft;
146.9 	(iii) a plan for providing financial support to combat automobile theft;
146.10 	(iv) a plan for eliminating car hijacking; and
146.11 	(v) an estimate of the funds required to implement the plan; and
146.12 	(5) distribute money, in consultation with the commissioner of public safety, pursuant 
146.13 	to subdivision 3 from the automobile theft prevention special revenue account for automobile 
146.14 	theft prevention activities, including:
146.15 	(i) paying the administrative costs of the program;
146.16 	(ii) providing financial support to the State Patrol and local law enforcement agencies 
146.17 	for automobile theft enforcement teams;
146.18 	(iii) providing financial support to state or local law enforcement agencies for programs 
146.19 	designed to reduce the incidence of automobile theft and for improved equipment and 
146.20 	techniques for responding to automobile thefts;
146.21 	(iv) providing financial support to local prosecutors for programs designed to reduce 
146.22 	the incidence of automobile theft;
146.23 	(v) providing financial support to judicial agencies for programs designed to reduce the 
146.24 	incidence of automobile theft;
146.25 	(vi) providing financial support for neighborhood or community organizations or business 
146.26 	organizations for programs designed to reduce the incidence of automobile theft and to 
146.27 	educate people about the common methods of automobile theft, the models of automobiles 
146.28 	most likely to be stolen, and the times and places automobile theft is most likely to occur; 
146.29 	and
147.1 	(vii) providing financial support for automobile theft educational and training programs 
147.2 	for state and local law enforcement officials, driver and vehicle services exam and inspections 
147.3 	staff, and members of the judiciary.
147.4 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
147.5 	money in the fund for the program's administrative and operating costs. The commissioner 
147.6 	is annually appropriated and must distribute the amount of the proceeds credited to the 
147.7 	automobile theft prevention special revenue account each year, less the transfer of $1,300,000 
147.8 	each year to the general fund insurance fraud prevention account described in section 297I.11, 
147.9 	subdivision 2.
147.10 	(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances 
147.11 	in the auto theft prevention account to the insurance fraud prevention account under section 
147.12 	45.0135, subdivision 6.

147.13 	EFFECTIVE DATE. This section is effective July 1, 2018.

147.14 	Sec. 4. [239.7511] GAS TAX SIGN ON PETROLEUM DISPENSER.
147.15 	(a) The director must ensure that signs having 12-point font or greater are affixed on 
147.16 	retail petroleum dispensers as follows:
147.17 	(1) for regular or premium gasoline, a sign that reads: "The price for each gallon of 
147.18 	gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline 
147.19 	tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and 
147.20 	bridges, according to the Minnesota Constitution."; and
147.21 	(2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes 
147.22 	the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents 
147.23 	per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according 
147.24 	to the Minnesota Constitution."
147.25 	(b) The director must distribute the signs under this section to the owner or operator of 
147.26 	retail petroleum dispensers. To the extent possible, the director must coordinate the 
147.27 	distribution of signs with other duties the director may have involving retail petroleum 
147.28 	dispensers.
147.29 	(c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2), 
147.30 	changes, the director must distribute revised signs to reflect the updated gasoline tax amounts 
147.31 	within 12 calendar months of the change.
148.1 	(d) The director is prohibited from assessing any penalty, fine, or fee on the owner or 
148.2 	operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise 
148.3 	damaged gas tax sign.

148.4 	Sec. 5. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:
148.5 		Subd. 2.Automobile theft prevention account. A special revenue account in the state 
148.6 	treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1. 
148.7 	Of the revenue in the account, $1,300,000 each year must be transferred to the general fund
148.8 	insurance fraud prevention account under section 45.0135, subdivision 6. Revenues in excess 
148.9 	of $1,300,000 each year may be used only for the automobile theft prevention program 
148.10 	described in section 65B.84.

148.11 	EFFECTIVE DATE. This section is effective July 1, 2018.

148.12 	Sec. 6. Minnesota Statutes 2016, section 325J.06, is amended to read:
148.13 	325J.06 EFFECT OF NONREDEMPTION.
148.14 	(a) A pledgor shall have no obligation to redeem pledged goods or make any payment 
148.15 	on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of 
148.16 	the pawn transaction, renewal, or extension shall automatically be forfeited to the 
148.17 	pawnbroker, and qualified right, title, and interest in and to the goods shall automatically 
148.18 	vest in the pawnbroker.
148.19 	(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a) 
148.20 	is qualified only by the pledgor's right, while the pledged goods remain in possession of the 
148.21 	pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees 
148.22 	and/or interest accrued up to the date of redemption.
148.23 	(c) A pawn transaction that involves holding only the title to property is subject to chapter 
148.24 	168A or 336.

148.25 	Sec. 7. Minnesota Statutes 2016, section 345.42, subdivision 1, is amended to read:
148.26 		Subdivision 1.Commissioner's duty. Within the calendar year next following the year 
148.27 	in which abandoned property has been paid or delivered to the commissioner, the 
148.28 	commissioner shall provide public notice of the abandoned property in the manner described 
148.29 	in subdivision 1a and frequency otherwise as the commissioner determines to be most 
148.30 	effective and efficient in communicating to the persons appearing to be owners of this 
148.31 	property. Public notice may include the use of print, broadcast, or electronic media. The 
149.1 	commissioner shall, at a minimum, expend 15 percent of the funds allocated by the legislature 
149.2 	to the operations of the unclaimed property division, to comply with the public notice 
149.3 	requirements of this subdivision section and shall report to the legislature annually on how 
149.4 	those funds are expended. Public notice must include public outreach efforts including the 
149.5 	use of newspapers and other mass media, but must not include costs incurred by the 
149.6 	commissioner to develop, maintain, or improve the Department of Commerce Web site.

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

149.8 	Sec. 8. Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to 
149.9 	read:
149.10 		Subd. 1a.Public notice. (a) Public notice provided by the commissioner shall include 
149.11 	the following:
149.12 	(1) posting on the Department of Commerce Web site a list of all persons appearing to 
149.13 	be owners of abandoned property. The list shall be arranged in alphabetical order by the 
149.14 	last name of the person and further organized by county. The list of persons must be updated 
149.15 	at least three times per year and must remain on the Department of Commerce Web site at 
149.16 	all times;
149.17 	(2) publication in a qualified newspaper of a list of persons appearing to be owners of 
149.18 	abandoned property having a value of $500 or more. The list must be published in a qualified 
149.19 	newspaper of general circulation in each county, and must include the names of all persons 
149.20 	whose last known address is within the county. The list must be published at least once per 
149.21 	year. The commissioner may stagger publication of the entire list of owners by publishing 
149.22 	a partial list at least twice, but no more than three times per year. Each qualified newspaper 
149.23 	that publishes the list shall, at no additional charge to the commissioner, also post the list 
149.24 	on its Web site or on a central Web site that can be accessed directly from the qualified 
149.25 	newspaper's Web site. The list must be accessible on the Web site for not less than 180 days 
149.26 	and at no cost to the public. The qualified newspaper must include in its publication of the 
149.27 	list a reference to its Web site or a central Web site; and
149.28 	(3) dissemination of information to persons appearing to be owners of abandoned property 
149.29 	through other means and media, including broadcast media, the Internet, and social media.
149.30 	(b) Beginning July 1, 2017, and annually thereafter, the commissioner shall provide to 
149.31 	each member of the legislature a list of all persons appearing to be owners of abandoned 
149.32 	property whose last known address is located in the legislator's respective legislative district.

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

150.1 	Sec. 9. Minnesota Statutes 2016, section 345.49, is amended to read:
150.2 	345.49 CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED.
150.3 		Subdivision 1.Filing. (a) Any person claiming an interest in any property delivered to 
150.4 	the state under sections 345.31 to 345.60 may file a claim thereto or to the proceeds from 
150.5 	the sale thereof on the form prescribed by the commissioner.
150.6 	(b) Any person claiming an interest in property evidenced by a will or trust document, 
150.7 	or court order, may submit to the commissioner only such portions of the document or order 
150.8 	necessary to establish a claim.
150.9 		Subd. 2.Appropriation. There is hereby appropriated to the persons entitled to a refund, 
150.10 	from the fund in the state treasury to which the money was credited, an amount sufficient 
150.11 	to make the refund and payment.
150.12 		Subd. 3.Data. Government data received by the commissioner pursuant to this section 
150.13 	is nonpublic data or private data on individuals, as defined in section 13.02, subdivisions 9 
150.14 	and 12.

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

150.16 	Sec. 10. [471.9998] MERCHANT BAGS.
150.17 		Subdivision 1.Merchant option. All merchants, itinerant vendors, and peddlers doing 
150.18 	business in this state shall have the option to provide customers a paper, plastic, or reusable 
150.19 	bag for the packaging of any item or good purchased, provided such purchase is of a size 
150.20 	and manner commensurate with the use of paper, plastic, or reusable bags.
150.21 		Subd. 2.Prohibition; bag ban. Notwithstanding any other provision of law, no political 
150.22 	subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for 
150.23 	packaging of any item or good purchased from a merchant, itinerant vendor, or peddler.

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

150.27 	Sec. 11. EXISTING DEPUTY COMMISSIONERS MAY SERVE UNTIL JANUARY 
150.28 	1, 2019.
 150.29 	All existing deputy commissioners under Minnesota Statutes, section 45.013, may serve 
150.30 	until January 1, 2019. Vacancies that occur in these positions before January 1, 2019, must 
150.31 	not be filled.

151.1 	Sec. 12. REPORT ON UNCLAIMED PROPERTY DIVISION.
 151.2 	The commissioner shall report by February 15, 2018, to the chairs and ranking minority 
151.3 	members of the standing committees of the house of representatives and senate having 
151.4 	jurisdiction over commerce regarding the process owners of abandoned property must 
151.5 	comply with in order to file an allowed claim under Minnesota Statutes, chapter 345. The 
151.6 	report shall include information regarding the documentation and identification necessary 
151.7 	for owners of each type of abandoned property under Minnesota Statutes, chapter 345, to 
151.8 	file an allowed claim.

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

151.10 	ARTICLE 9
151.11 	TELECOMMUNICATIONS POLICY

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

151.20 	Sec. 2. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision to 
151.21 	read:
151.22 		Subd. 11.Internet protocol-enabled service. "Internet protocol-enabled service" or 
151.23 	"IP-enabled service" means any service, capability, functionality, or application provided 
151.24 	using Internet protocol, or any successor protocol, that enables an end user to send or receive 
151.25 	a communication in Internet protocol format or any successor format, regardless of whether 
151.26 	that communication is voice, data, or video.

151.27 	Sec. 3. [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND 
151.28 	INTERNET PROTOCOL-ENABLED SERVICE.
151.29 		Subdivision 1.Regulation prohibited. Except as provided in this section, no state 
151.30 	agency, including the commission and the Department of Commerce, or political subdivision 
151.31 	of this state shall by rule, order, or other means directly or indirectly regulate the entry, 
152.1 	rates, terms, quality of service, availability, classification, or any other aspect of VoIP service 
152.2 	or IP-enabled service.
152.3 		Subd. 2.VoIP regulation. (a) To the extent permitted by federal law, VoIP service is 
152.4 	subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to 
152.5 	the collection and remittance of the surcharges governed by those sections.
152.6 	(b) A provider of VoIP service must comply with the requirements of chapter 403 
152.7 	applicable to the provision of access to 911 service by service providers, except to the extent 
152.8 	those requirements conflict with federal requirements for the provision of 911 service by 
152.9 	VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP provider is 
152.10 	entitled to the benefit of the limitation of liability provisions of section 403.07, subdivision 
152.11 	5. Beginning June 1, 2017, and continuing each June 1 thereafter, each VoIP provider shall 
152.12 	file a plan with the commission describing how it will comply with the requirements of this 
152.13 	paragraph. After its initial filing under this paragraph, a VoIP provider shall file with the 
152.14 	commission either an update of the plan or a statement certifying that the plan and personnel 
152.15 	contact information previously filed is still current.
152.16 		Subd. 3.Relation to other law. Nothing in this section restricts, creates, expands, or 
152.17 	otherwise affects or modifies:
152.18 	(1) the commission's authority under the Federal Communications Act of 1934, United 
152.19 	States Code, title 47, sections 251 and 252;
152.20 	(2) any applicable wholesale tariff or any commission authority related to wholesale 
152.21 	services;
152.22 	(3) any commission jurisdiction over (i) intrastate switched access rates, terms, and 
152.23 	conditions, including the implementation of federal law with respect to intercarrier 
152.24 	compensation, or (ii) existing commission authority to address or affect the resolution of 
152.25 	disputes regarding intercarrier compensation;
152.26 	(4) the rights of any entity, or the authority of the commission and local government 
152.27 	authorities, with respect to the use and regulation of public rights-of-way under sections 
152.28 	237.162 and 237.163;
152.29 	(5) the establishment or enforcement of standards, requirements or procedures in 
152.30 	procurement policies, internal operational policies, or work rules of any state agency or 
152.31 	political subdivision of the state relating to the protection of intellectual property; or
153.1 	(6) the authority of the attorney general to apply and enforce chapters 325C to 325G, 
153.2 	325K to 325M, and other laws of general applicability governing consumer protection and 
153.3 	trade practices.
153.4 		Subd. 4.Exemption. The following services delivered by IP-enabled service are not 
153.5 	regulated under this chapter:
153.6 	(1) video services provided by a cable communications system, as defined in section 
153.7 	238.02, subdivision 3;
153.8 	(2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
153.9 	(3) any other IP-enabled video service.
153.10 		Subd. 5.Preservation of existing landline telephone service.  Nothing in this section 
153.11 	restricts, creates, expands, or otherwise affects or modifies the obligations of a telephone 
153.12 	company under this chapter to offer landline telephone service that is not Voice-over-Internet 
153.13 	protocol service.

153.14 	Sec. 4. [237.417] PERSONAL INFORMATION; PROHIBITION.
153.15 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
153.16 	the meanings given them.
153.17 	(b) "Covered entity" means an entity, including a search engine service, social media, 
153.18 	or other Web-based application, that collects personally identifiable information from a 
153.19 	consumer by means of the Internet.
153.20 	(c) "Express approval" means an affirmative act of the consumer provided in writing or 
153.21 	by electronic means. The affirmative act providing express approval must be made in a 
153.22 	separate document or form that contains no approval by a consumer of any other contractual 
153.23 	provision.
153.24 	(d) "Internet service provider" has the meaning given in section 325M.01, subdivision 
153.25 	3.
153.26 	(e) "Minnesota facilities" means the facilities of a telecommunications or Internet service 
153.27 	provider covered by or subject to a franchise agreement, right-of-way agreement, or other 
153.28 	contract with the state of Minnesota or a political subdivision.
153.29 	(f) "Personally identifiable information" means information that identifies:
153.30 	(1) a consumer by physical or electronic address or telephone number;
154.1 	(2) a consumer as having requested or obtained specific materials or services from an 
154.2 	Internet service provider;
154.3 	(3) Internet or online sites visited by a consumer; or
154.4 	(4) any of the contents of a consumer's data-storage devices.
154.5 	(g) "Telecommunications service provider" has the meaning given in section 237.01, 
154.6 	subdivision 6b.
154.7 		Subd. 2.Service provider; prohibition. A telecommunications or Internet service 
154.8 	provider that has entered into a franchise agreement, right-of-way agreement, or other 
154.9 	contract with the state of Minnesota or a political subdivision may not sell, share, or otherwise 
154.10 	distribute personally identifiable information from a consumer, or use such information for 
154.11 	direct advertising or other content, without express approval from the consumer.
154.12 		Subd. 3.Covered entity; prohibition. A covered entity may not sell, share, or otherwise 
154.13 	distribute personally identifiable information from any Minnesota consumer, or use such 
154.14 	information for direct advertising, without express approval of the consumer if the covered 
154.15 	entity used Minnesota facilities to obtain personally identifiable information from any 
154.16 	Minnesota consumer, even if the covered entity was not a party to a contract with the state 
154.17 	of Minnesota at the time the personally identifiable information was obtained. This provision 
154.18 	applies to personally identifiable information obtained from any Minnesota consumer, even 
154.19 	if the personally identifiable information was not obtained through the use of Minnesota 
154.20 	facilities.

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

154.22 	Sec. 5. [237.418] DIGITAL DEVICE MICROPHONE; CONDITIONS FOR REMOTE 
154.23 	ACCESS.
154.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
154.25 	subdivision have the meanings given them.
154.26 	(b) "Digital device" means a smartphone, tablet, television, computer, car, toy, home 
154.27 	appliance, or any other device that contains a microphone that can be activated remotely 
154.28 	by a private entity without the knowledge of the user and can transmit sound from the 
154.29 	location of the digital device to a remote location where it can be recorded and stored.
154.30 	(c) "Private entity" means any individual, partnership, corporation, limited liability 
154.31 	company, association, or other group, however organized. "Private entity" does not include 
154.32 	a state or local government agency.
155.1 	(d) "User" means a person who purchases, leases, or otherwise regularly uses a digital 
155.2 	device.
155.3 		Subd. 2.Digital device microphone; requirements for access. No private entity may 
155.4 	activate or enable, cause to be activated or enabled, or otherwise use a digital device's 
155.5 	microphone to listen to, transmit, store, or disclose information unless it first:
155.6 	(1) informs the user in writing that the microphone in the user's digital device will be 
155.7 	activated, enabled, or used by the private entity;
155.8 	(2) informs the user in writing of the frequency and length of time the microphone will 
155.9 	be activated, enabled, or used by the private entity;
155.10 	(3) informs the user in writing of the specific categories of information the microphone 
155.11 	will be listening for, transmitting, and storing;
155.12 	(4) informs the user in writing of the specific purpose for which the information will be 
155.13 	collected, used, or stored, and to whom it may be disclosed; and
155.14 	(5) receives the informed, written consent  of the user, including through electronic 
155.15 	means, or the user's authorized agent, representative, or guardian, that:
155.16 	(i) is in a form distinct and separate from any form setting forth other legal or financial 
155.17 	obligations of the user;
155.18 	(ii) is given in advance of the time the microphone is activated, enabled, or used; and
155.19 	(iii) runs for a specified period of time or until consent is withdrawn by the user, 
155.20 	whichever is sooner.
155.21 		Subd. 3.Prohibitions. The provisions of this section may not be waived by a user or 
155.22 	private entity. Any agreement that does not comply with the applicable provisions of this 
155.23 	section is void and unenforceable.

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

155.25 	ARTICLE 10
155.26 	ENERGY POLICY

155.27 	Section 1. Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read:
155.28 		Subdivision 1.Establishment. (a) There is established a Legislative Energy Commission 
155.29 	to study and to make recommendations for legislation concerning issues related to its duties 
155.30 	under subdivision 3.
156.1 	(b) The commission consists of:
156.2 	(1) ten five members of the house of representatives, three of whom are appointed by 
156.3 	the speaker of the house, four and two of whom must be from are appointed by the leader 
156.4 	of the minority caucus, and including the chair of the committee with primary jurisdiction 
156.5 	over energy policy; the chair or another member of each of the committees with primary 
156.6 	jurisdiction over environmental policy, agricultural policy, and transportation policy; and
156.7 	(2) ten five members of the senate to be, three of whom are appointed by the 
156.8 	Subcommittee on Committees leader of the majority caucus, four and two of whom must 
156.9 	be from are appointed by the leader of the minority caucus, and including the chair of the 
156.10 	committee with primary jurisdiction over energy policy; and the chair or another member 
156.11 	of each of the committees with primary jurisdiction over environmental policy, agricultural 
156.12 	policy, and transportation policy.
156.13 	(c) The commission may employ full-time and part-time staff, contract for consulting 
156.14 	services, and may reimburse the expenses of persons requested to assist it in its duties. The 
156.15 	director of the Legislative Coordinating Commission shall assist the commission in 
156.16 	administrative matters. The commission shall elect cochairs, one member of the house of 
156.17 	representatives and one member of the senate from among the committee and subcommittee 
156.18 	chairs named to the commission. The commission members from the house of representatives 
156.19 	shall elect the house of representatives cochair, and the commission members from the 
156.20 	senate shall elect the senate cochair.

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

156.22 	Sec. 2. Minnesota Statutes 2016, section 16B.323, is amended to read:
156.23 	16B.323 SOLAR ENERGY IN STATE BUILDINGS.
156.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
156.25 	the meanings given.
156.26 	(b) "Made in Minnesota" means the manufacture in this state of:
156.27 	(1) components of a solar thermal system certified by the Solar Rating and Certification 
156.28 	Corporation; or
156.29 	(2) solar photovoltaic modules that:
156.30 	(i) are manufactured at a manufacturing facility in Minnesota that is registered and 
156.31 	authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory, 
156.32 	CSA International, Intertek, or an equivalent independent testing agency;
157.1 	(ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek, 
157.2 	or an equivalent independent testing agency; and
157.3 	(iii) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), clauses 
157.4 	(1), (5), and (6).
157.5 	For the purposes of clause (2), "manufactured" has the meaning given in section 
157.6 	116C.7791, subdivision 1, paragraph (b), clauses (1) and (2).
157.7 	(c) (b) "Major renovation" means a substantial addition to an existing building, or a 
157.8 	substantial change to the interior configuration or the energy system of an existing building.
157.9 	(d) (c) "Solar energy system" means solar photovoltaic modules devices alone or installed 
157.10 	in conjunction with a solar thermal system.
157.11 	(e) "Solar Photovoltaic module (d) "Photovoltaic device" has the meaning given in 
157.12 	section 116C.7791, subdivision 1, paragraph (e) 216C.06, subdivision 16.
157.13 	(f) (e) "Solar thermal system" has the meaning given "qualifying solar thermal project" 
157.14 	in section 216B.2411, subdivision 2, paragraph (e).
157.15 	(g) (f) "State building" means a building whose construction or renovation is paid wholly 
157.16 	or in part by the state from the bond proceeds fund.
157.17 		Subd. 2.Solar energy system. (a) As provided in paragraphs (b) and (c), a project for 
157.18 	the construction or major renovation of a state building, after the completion of a cost-benefit 
157.19 	analysis, may include installation of "Made in Minnesota" solar energy systems of up to 40 
157.20 	kilowatts capacity on, adjacent, or in proximity to the state building.
157.21 	(b) The capacity of a solar energy system must be less than 40 kilowatts to the extent 
157.22 	necessary to match the electrical load of the building or to the extent necessary to keep the 
157.23 	costs for the installation below the five percent maximum set by paragraph (c).
157.24 	(c) The cost of the solar energy system must not exceed five percent of the appropriations 
157.25 	from the bond proceeds fund for the construction or renovation of the state building. Purchase 
157.26 	and installation of a solar thermal system may account for no more than 25 percent of the 
157.27 	cost of a solar energy system installation.
157.28 	(d) A project subject to this section is ineligible to receive a rebate for the installation 
157.29 	of a solar energy system under section 116C.7791 or from any utility.

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

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

158.8 	Sec. 4. Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read:
158.9 		Subdivision 1.Renewable development Energy fund account. (a) The energy fund 
158.10 	account is established as a separate account in the special revenue fund in the state treasury. 
158.11 	Appropriations and transfers to the account are credited to the account. Earnings, such as 
158.12 	interest, dividends, and any other earnings arising from assets of the account, are credited 
158.13 	to the account. Funds remaining in the account at the end of a fiscal year do not cancel to 
158.14 	the general fund, but remain in the account until expended.
158.15 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
158.16 	plant must transfer all funds in the renewable development account previously established 
158.17 	under this subdivision and managed by the public utility to the energy fund account 
158.18 	established in paragraph (a). Funds awarded to grantees in previous grant cycles that have 
158.19 	not yet been expended and unencumbered funds required to be paid in calendar year 2017 
158.20 	under sections 116C.7791, 116C.7792, and 216C.41 are not subject to transfer under this 
158.21 	paragraph.
158.22 	(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
158.23 	each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating 
158.24 	plant must transfer to a renewable development the energy fund account $500,000 each 
158.25 	year for each dry cask containing spent fuel that is located at the Prairie Island power plant 
158.26 	for each year the plant is in operation, and $7,500,000 each year the plant is not in operation 
158.27 	if ordered by the commission pursuant to paragraph (c) (f). The fund transfer must be made 
158.28 	if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie 
158.29 	Island for any part of a year.
158.30 	(b) (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
158.31 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
158.32 	plant must transfer to the renewable development energy fund account $350,000 each year 
158.33 	for each dry cask containing spent fuel that is located at the Monticello nuclear power plant 
158.34 	for each year the plant is in operation, and $5,250,000 each year the plant is not in operation 
159.1 	if ordered by the commission pursuant to paragraph (c) (f). The fund transfer must be made 
159.2 	if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at 
159.3 	Monticello for any part of a year.
159.4 	(e) Each year, the public utility must withhold from the funds transferred to the energy 
159.5 	fund account under paragraphs (c) and (d) the amount necessary to pay its obligations under 
159.6 	sections 116C.7791, 116C.7792, and 216C.41 for that calendar year.
159.7 	(c) (f) After discontinuation of operation of the Prairie Island nuclear plant or the 
159.8 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
159.9 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
159.10 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
159.11 	facility for any year in which the commission finds, by the preponderance of the evidence, 
159.12 	that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 
159.13 	at the facility to a permanent or interim storage site out of the state. This determination shall 
159.14 	be made at least every two years.
159.15 	(g) Funds in the account may only be expended to support projects that:
159.16 	(1) result in lower rates for Xcel's Minnesota retail electricity customers;
159.17 	(2) result in reduced air emissions from Xcel's Minnesota electric generating facilities; 
159.18 	and
159.19 	(3) provide incentives for the development of new energy technologies that meet the 
159.20 	conditions of clause (1) or (2).
159.21 	Except as provided in section 116C.7793, subdivision 7, expenditures from the fund must 
159.22 	only benefit Minnesota ratepayers receiving electric service from the utility that owns a 
159.23 	nuclear-powered electric generating plant in this state or the Prairie Island Indian community 
159.24 	or its members.
159.25 	(d) Funds in the account may be expended only for any of the following purposes:
159.26 	(1) to increase the market penetration within the state of renewable electric energy 
159.27 	resources at reasonable costs;
159.28 	(2) to promote the start-up, expansion, and attraction of renewable electric energy projects 
159.29 	and companies within the state;
159.30 	(3) to stimulate research and development within the state into renewable electric energy 
159.31 	technologies; and
160.1 	(4) to develop near-commercial and demonstration scale renewable electric projects or 
160.2 	near-commercial and demonstration scale electric infrastructure delivery projects if those 
160.3 	delivery projects enhance the delivery of renewable electric energy.
160.4 	The utility that owns a nuclear generating plant is eligible to apply for renewable development 
160.5 	account grants.
160.6 	(e) Expenditures authorized by this subdivision from the account may be made only 
160.7 	after approval by order of the Public Utilities Commission upon a petition by the public 
160.8 	utility. The commission may approve proposed expenditures, may disapprove proposed 
160.9 	expenditures that it finds to be not in compliance with this subdivision or otherwise not in 
160.10 	the public interest, and may, if agreed to by the public utility, modify proposed expenditures. 
160.11 	The commission may approve reasonable and necessary expenditures for administering the 
160.12 	account in an amount not to exceed five percent of expenditures. Commission approval is 
160.13 	not required for expenditures required under subdivisions 2 and 3, section 116C.7791, or 
160.14 	other law.
160.15 	(f) The account shall be managed by the public utility but the public utility must consult 
160.16 	about account expenditures with an advisory group that includes, among others, 
160.17 	representatives of its ratepayers. The commission may require that other interests be 
160.18 	represented on the advisory group. The advisory group must be consulted with respect to 
160.19 	the general scope of expenditures in designing a request for proposal and in evaluating 
160.20 	projects submitted in response to a request for proposals. In addition to consulting with the 
160.21 	advisory group, the public utility must utilize an independent third-party expert to evaluate 
160.22 	proposals submitted in response to a request for proposal, including all proposals made by 
160.23 	the public utility. A request for proposal for research and development under paragraph (d), 
160.24 	clause (3), may be limited to or include a request to higher education institutions located in 
160.25 	Minnesota for multiple projects authorized under paragraph (d), clause (3). The request for 
160.26 	multiple projects may include a provision that exempts the projects from the third-party 
160.27 	expert review and instead provides for project evaluation and selection by a merit peer 
160.28 	review grant system. The utility should attempt to reach agreement with the advisory group 
160.29 	after consulting with it but the utility has full and sole authority to determine which 
160.30 	expenditures shall be submitted to the commission for commission approval. In the process 
160.31 	of determining request for proposal scope and subject and in evaluating responses to request 
160.32 	for proposals, the public utility must strongly consider, where reasonable, potential benefit 
160.33 	to Minnesota citizens and businesses and the utility's ratepayers.
161.1 	(g) Funds in the account may not be directly appropriated by the legislature by a law 
161.2 	enacted after January 1, 2012, and unless appropriated by a law enacted prior to that date 
161.3 	may be expended only pursuant to an order of the commission according to this subdivision.
161.4 	(h) A request for proposal for renewable energy generation projects must, when feasible 
161.5 	and reasonable, give preference to projects that are most cost-effective for a particular energy 
161.6 	source.
161.7 	(i) The public utility must annually, by February 15, report to the chairs and ranking 
161.8 	minority members of the legislative committees with jurisdiction over energy policy on 
161.9 	projects funded by the account for the prior year and all previous years. The report must, 
161.10 	to the extent possible and reasonable, itemize the actual and projected financial benefit to 
161.11 	the public utility's ratepayers of each project.
161.12 	(j) A project receiving funds from the account must produce a written final report that 
161.13 	includes sufficient detail for technical readers and a clearly written summary for nontechnical 
161.14 	readers. The report must include an evaluation of the project's financial, environmental, and 
161.15 	other benefits to the state and the public utility's ratepayers.
161.16 	(k) Final reports, any mid-project status reports, and renewable development account 
161.17 	financial reports must be posted online on a public Web site designated by the commission.
161.18 	(l) All final reports must acknowledge that the project was made possible in whole or 
161.19 	part by the Minnesota renewable development fund, noting that the fund is financed by the 
161.20 	public utility's ratepayers.

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

161.22 	Sec. 5. Minnesota Statutes 2016, section 116C.779, is amended by adding a subdivision 
161.23 	to read:
161.24 		Subd. 1a.Payment termination. (a) The commissioner shall track the cumulative 
161.25 	transfers made to the account and its predecessor, the renewable development account, each 
161.26 	year since 1999 for each dry cask containing spent fuel that is stored at an independent 
161.27 	spent-fuel storage facility at Prairie Island or Monticello. During the time when state law 
161.28 	required the public utility to transfer a specific amount of funds to the account for all the 
161.29 	casks stored, the per-cask allocation shall be calculated by dividing the total amount 
161.30 	transferred by the number of casks stored that year.
161.31 	(b) When the commissioner determines that the cumulative transfers calculated under 
161.32 	paragraph (a) for a specific cask reach $10,000,000, the commissioner shall notify the public 
161.33 	utility that no additional transfers to the account for that cask shall be made.
162.1 	(c) This subdivision does not affect any provisions of subdivision 1, paragraph (c) or 
162.2 	(d), with respect to transfers to the account made after a plant has ceased operation.

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

162.4 	Sec. 6. Minnesota Statutes 2016, section 116C.7792, is amended to read:
162.5 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
162.6 	The utility subject to section 116C.779 shall operate a program to provide solar energy 
162.7 	production incentives for solar energy systems of no more than a total nameplate capacity 
162.8 	of 20 kilowatts direct current. The program shall be operated for five consecutive calendar 
162.9 	years commencing in 2014. $5,000,000 shall be allocated for each of the five years from 
162.10 	the renewable development energy fund account established in section 116C.779 to a separate 
162.11 	account for the purpose of the solar production incentive program. The solar system must 
162.12 	be sized to less than 120 percent of the customer's on-site annual energy consumption. The 
162.13 	production incentive must be paid for ten years commencing with the commissioning of 
162.14 	the system. The utility must file a plan to operate the program with the commissioner of 
162.15 	commerce. The utility may not operate the program until it is approved by the commissioner.

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

162.17 	Sec. 7. [116C.7793] LEGISLATIVE RENEWABLE ENERGY COUNCIL.
162.18 		Subdivision 1.Establishment. (a) The Legislative Renewable Energy Council of 11 
162.19 	members is established in the legislative branch, consisting of:
162.20 	(1) five members of the house of representatives appointed by the speaker of the house, 
162.21 	three of whom are from the majority caucus and two of whom are from the minority caucus; 
162.22 	and
162.23 	(2) five members of the senate appointed by the Subcommittee on Committees of the 
162.24 	Committee on Rules and Administration, three of whom are from the majority caucus and 
162.25 	two of whom are from the minority caucus; and
162.26 	(3) one representative of the Prairie Island Indian Community appointed by that 
162.27 	community's tribal council.
162.28 	(b) Eight legislative members appointed to the council must represent legislative districts 
162.29 	in which at least 60 percent of residents receive electric service from the utility that owns 
162.30 	a nuclear powered electric generating plant in this state. No member may be appointed to 
162.31 	the council from a legislative district that does not contain any electric retail customers of 
163.1 	the utility that owns a nuclear powered electric generating plant in this state. Council 
163.2 	members must be geographically balanced to represent the entire electric service area of 
163.3 	that utility.
163.4 	(c) Council members shall elect a chair, a vice-chair, and other officers as determined 
163.5 	by the council. The chair may convene meetings as necessary to conduct the duties prescribed 
163.6 	by this section.
163.7 	(d) The Legislative Coordinating Commission may appoint nonpartisan staff and contract 
163.8 	with consultants as necessary to support the functions of the council. The council has final 
163.9 	approval authority to hire an executive director. Up to one-half of one percent of the money 
163.10 	appropriated from the fund may be used to pay for the council's administrative expenses.
163.11 		Subd. 2.Council recommendations. (a) The council must make recommendations to 
163.12 	the legislature on appropriations from the energy fund account established under section 
163.13 	116C.779 that are consistent with that section and state law. The council's recommendations 
163.14 	must be submitted no later than December 15 each year. The council must present its 
163.15 	recommendations to the senate and house of representatives committees with jurisdiction 
163.16 	over energy policy and finance by February 15 in odd-numbered years, and within the first 
163.17 	four weeks of the legislative session in even-numbered years.
163.18 	(b) Recommendations of the council, including approval of recommendations for 
163.19 	expenditures from the energy fund account, require an affirmative vote of at least eight 
163.20 	members of the council.
163.21 	(c) The council must develop and implement a decision-making process that ensures 
163.22 	citizens and potential recipients of funds are included at each stage of the process. The 
163.23 	process must include a fair, equitable, and thorough method to review funding requests, 
163.24 	and a clear and easily understood process to rank projects.
163.25 		Subd. 3.Conflict of interest. (a) A council member may not be an advocate for or 
163.26 	against a council action or vote on any action that may be a conflict of interest. A conflict 
163.27 	of interest must be disclosed as soon as it is discovered. The council must follow the policies 
163.28 	and requirements related to conflicts of interest developed by the Office of Grants 
163.29 	Management under section 16B.98.
163.30 	(b) For the purposes of this section, a conflict of interest exists when a person has an 
163.31 	organizational conflict of interest or a direct financial conflict of interest, and the conflict 
163.32 	of interest presents the appearance that it will be difficult for the person to impartially fulfill 
163.33 	the person's duties as a member of the council. An organizational conflict of interest exists 
163.34 	when a person has an affiliation with an organization subject to council activities that presents 
164.1 	the appearance of a conflict between organizational interests and the council member's 
164.2 	duties under this section. An organizational conflict of interest does not exist if the person's 
164.3 	only affiliation with an organization is being a member of the organization.
164.4 		Subd. 4.Audit. The legislative auditor must audit energy fund account expenditures 
164.5 	recommended by the council, including administrative and staffing expenditures, to ensure 
164.6 	the money is spent in compliance with all applicable laws.
164.7 		Subd. 5.Recipient requirements. (a) A recipient of a direct appropriation from the 
164.8 	energy fund account recommended by the council must compile and submit all information 
164.9 	for funded projects or programs, including proposed measurable outcomes required by the 
164.10 	council.
164.11 	(b) A recipient's future eligibility to receive funds from the energy fund account is 
164.12 	contingent upon the recipient satisfying all applicable requirements under this section, as 
164.13 	well as any additional requirements contained in applicable law. If the Office of the 
164.14 	Legislative Auditor, in the course of an audit or investigation, publicly reports that a recipient 
164.15 	of funds from the energy fund account has not complied with the laws, rules, or regulations 
164.16 	under this section or other laws applicable to the recipient, the recipient is not eligible for 
164.17 	future funding from the energy fund account until the recipient demonstrates compliance 
164.18 	to the legislative auditor.
164.19 	(c) A recipient of a direct appropriation from the energy fund account pursuant to a 
164.20 	recommendation by the council may not receive funds from another direct appropriation 
164.21 	from the council until four years after completion of the project funded by the prior direct 
164.22 	appropriation.
164.23 		Subd. 6.Accomplishment plans. As a condition of accepting funds appropriated from 
164.24 	the energy fund account on the council's recommendation, a recipient must agree to submit 
164.25 	an accomplishment plan and periodic accomplishment reports to the council in the form 
164.26 	determined by the council. The accomplishment plan must identify the project manager 
164.27 	responsible for expending the appropriation and the final product. The accomplishment plan 
164.28 	must account for the use of the appropriation, identify outcomes of the expenditure, and 
164.29 	include an evaluation of results.
164.30 		Subd. 7.Expenditures. (a) The council's recommendations regarding expenditures from 
164.31 	the energy fund account may include but are not limited to research and development 
164.32 	projects, demonstration projects, and statewide programs and financial incentives.
164.33 	(b) If general fund money is transferred to the energy fund account, the council may 
164.34 	recommend the expenditure of, and the legislature may appropriate, funds from the account 
165.1 	up to the amount of general fund money present in the account for purposes that do not 
165.2 	exclusively benefit Minnesota ratepayers receiving electric service from the utility that owns 
165.3 	a nuclear powered generating plant in this state.
165.4 		Subd. 8.Administration. The council shall develop administrative procedures for the 
165.5 	submission and review of proposals seeking funding from the council.

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

165.7 	Sec. 8. Minnesota Statutes 2016, section 216A.03, subdivision 1, is amended to read:
165.8 		Subdivision 1.Members. (a) The Public Utilities Commission shall consist of five 
165.9 	members. The terms of members shall be six years and until their successors have been 
165.10 	appointed and qualified. Each commissioner shall be appointed by the governor by and with 
165.11 	the advice and consent of the senate. Not more than three commissioners shall belong to 
165.12 	the same political party. At least one commissioner must have been domiciled at the time 
165.13 	of appointment outside the seven-county metropolitan area. If the membership of the 
165.14 	commission after July 31, 1986, does not consist of at least one member domiciled at the 
165.15 	time of appointment outside the seven-county metropolitan area, the membership shall 
165.16 	conform to this requirement following normal attrition of the present commissioners. The 
165.17 	governor When selecting commissioners, the appropriating authorities under paragraph (c)
165.18 	shall give consideration to persons learned in the law or persons who have engaged in the 
165.19 	profession of engineering, public accounting, property and utility valuation, finance, physical 
165.20 	or natural sciences, production agriculture, or natural resources as well as being representative 
165.21 	of the general public.
165.22 	(b) For purposes of this subdivision, "seven-county metropolitan area" means Anoka, 
165.23 	Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties.
165.24 	(c) The legislature and the governor shall appoint members of the commission as follows:
165.25 	(1) the speaker of the house of representatives shall appoint one member;
165.26 	(2) the leader of the majority caucus in the senate shall appoint one member;
165.27 	(3) the leader of the minority caucus in the house of representatives shall appoint one 
165.28 	member;
165.29 	(4) the leader of the minority caucus in the senate shall appoint one member; and
165.30 	(5) the governor shall appoint one member.

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

166.1 	Sec. 9. Minnesota Statutes 2016, section 216A.03, is amended by adding a subdivision to 
166.2 	read:
166.3 		Subd. 1b.Transition. (a) This subdivision governs the membership of the commission 
166.4 	between July 1, 2017, and July 1, 2019.
166.5 	(b) On or before July 1, 2017, the leaders of the senate majority and minority caucuses 
166.6 	shall each appoint one commissioner to serve a term ending July 1, 2023, to replace 
166.7 	commissioners whose terms expire in 2022 and 2023.
166.8 	(c) On or before February 1, 2019, the governor shall appoint a commissioner to serve 
166.9 	a term ending July 1, 2025, to replace a commissioner whose term ends in 2021.
166.10 	(d) On or before July 1, 2019, the leaders of the house majority and minority caucuses 
166.11 	shall each appoint one commissioner to serve a term ending July 1, 2025, to replace 
166.12 	commissioners whose terms expire in 2019 and 2020.

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

166.14 	Sec. 10. Minnesota Statutes 2016, section 216B.03, is amended to read:
166.15 	216B.03 REASONABLE RATE.
166.16 	Every rate made, demanded, or received by any public utility, or by any two or more 
166.17 	public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably 
166.18 	preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable, 
166.19 	and consistent in application to a class of consumers. To the maximum reasonable extent, 
166.20 	the commission shall set rates to encourage economic growth, job retention, energy 
166.21 	conservation and, renewable energy use, and to further the goals of sections 216B.164, 
166.22 	216B.1696, 216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in 
166.23 	favor of the consumer. For rate-making purposes a public utility may treat two or more 
166.24 	municipalities served by it as a single class wherever the populations are comparable in size 
166.25 	or the conditions of service are similar.

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

166.28 	Sec. 11. Minnesota Statutes 2016, section 216B.16, subdivision 1a, is amended to read:
166.29 		Subd. 1a.Settlement. (a) When a public utility submits a general rate filing, the Office 
166.30 	of Administrative Hearings, before conducting a contested case hearing, shall convene a 
166.31 	settlement conference including all of the parties for the purpose of encouraging settlement 
167.1 	of any or all of the issues in the contested case. If a stipulated settlement is not reached 
167.2 	before the contested case hearing, the Office of Administrative Hearings may reconvene 
167.3 	the settlement conference during or after completion of the contested case hearing at its 
167.4 	discretion or a party's request. The Office of Administrative Hearings or the commission 
167.5 	may, upon the request of any party and the public utility, extend the procedural schedule 
167.6 	of the contested case in order to permit the parties to engage in settlement discussions. An 
167.7 	extension must be for a definite period of time not to exceed 60 days.
167.8 	(b) If the applicant and all intervening parties agree to a stipulated settlement of the case 
167.9 	or parts of the case, the settlement must be submitted to the commission. The commission 
167.10 	shall accept or reject the settlement in its entirety and, at any time until its final order is 
167.11 	issued in the case, may require the Office of Administrative Hearings to conduct a contested 
167.12 	case hearing. The commission may accept the settlement on finding that to do so the 
167.13 	settlement is supported by substantial evidence and approving the settlement is in the public 
167.14 	interest and is supported by substantial evidence. The analysis must consider the impact of 
167.15 	the proposed settlement on the economy, job growth, and job retention. If the commission 
167.16 	does not accept the settlement, it may issue an order modifying the settlement subject to 
167.17 	the approval of the parties. Each party shall have ten days in which to reject the proposed 
167.18 	modification. If no party rejects the proposed modification, the commission's order becomes 
167.19 	final. If the commission rejects the settlement, or a party rejects the commission's proposed 
167.20 	modification, a contested case hearing must be completed.

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

167.23 	Sec. 12. Minnesota Statutes 2016, section 216B.16, subdivision 6, is amended to read:
167.24 		Subd. 6.Factors considered, generally. The commission, in the exercise of its powers 
167.25 	under this chapter to determine just and reasonable rates for public utilities, shall give due 
167.26 	consideration to the public need for adequate, efficient, and reasonable service, as well as 
167.27 	the need for competitive electric rates, job preservation, and economic growth, and to the 
167.28 	need of the public utility for revenue sufficient to enable it to meet the cost of furnishing 
167.29 	the service, including adequate provision for depreciation of its utility property used and 
167.30 	useful in rendering service to the public, and to earn a fair and reasonable return upon the 
167.31 	investment in such property. In determining the rate base upon which the utility is to be 
167.32 	allowed to earn a fair rate of return, the commission shall give due consideration to evidence 
167.33 	of the cost of the property when first devoted to public use, to prudent acquisition cost to 
167.34 	the public utility less appropriate depreciation on each, to construction work in progress, to 
168.1 	offsets in the nature of capital provided by sources other than the investors, and to other 
168.2 	expenses of a capital nature. For purposes of determining rate base, the commission shall 
168.3 	consider the original cost of utility property included in the base and shall make no allowance 
168.4 	for its estimated current replacement value. If the commission orders a generating facility 
168.5 	to terminate its operations before the end of the facility's physical life in order to comply 
168.6 	with a specific state or federal energy statute or policy, the commission may allow the public 
168.7 	utility to recover any positive net book value of the facility as determined by the commission.

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

168.10 	Sec. 13. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:
168.11 		Subd. 2f.Solar energy standard. (a) In addition to the requirements of subdivisions 2a 
168.12 	and 2b, each public utility shall generate or procure sufficient electricity generated by solar 
168.13 	energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at 
168.14 	least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is 
168.15 	generated by solar energy.
168.16 	(b) For a public utility with more than 200,000 retail electric customers, at least ten 
168.17 	percent of the 1.5 percent goal must be met by solar energy generated by or procured from 
168.18 	solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less.
168.19 	(c) A public utility with between 50,000 and 200,000 retail electric customers:
168.20 	(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by 
168.21 	or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or 
168.22 	less; and
168.23 	(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions 
168.24 	of 40 kilowatts or less to a community solar garden program operated by the public utility 
168.25 	that has been approved by the commission.
168.26 	(b) (d) The solar energy standard established in this subdivision is subject to all the 
168.27 	provisions of this section governing a utility's standard obligation under subdivision 2a.
168.28 	(c) (e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the 
168.29 	retail electric sales in Minnesota be generated by solar energy.
168.30 	(d) (f) For the purposes of calculating the total retail electric sales of a public utility 
168.31 	under this subdivision, there shall be excluded retail electric sales to customers that are:
169.1 	(1) an iron mining extraction and processing facility, including a scram mining facility 
169.2 	as defined in Minnesota Rules, part 6130.0100, subpart 16; or
169.3 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
169.4 	manufacturer.
169.5 	Those customers may not have included in the rates charged to them by the public utility 
169.6 	any costs of satisfying the solar standard specified by this subdivision.
169.7 	(e) (g) A public utility may not use energy used to satisfy the solar energy standard under 
169.8 	this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may 
169.9 	not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the 
169.10 	solar standard under this subdivision.
169.11 	(f) (h) Notwithstanding any law to the contrary, a solar renewable energy credit associated 
169.12 	with a solar photovoltaic device installed and generating electricity in Minnesota after 
169.13 	August 1, 2013, but before 2020 may be used to meet the solar energy standard established 
169.14 	under this subdivision.
169.15 	(g) (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall 
169.16 	file a report with the commission reporting its progress in achieving the solar energy standard 
169.17 	established under this subdivision.

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

169.19 	Sec. 14. [216B.1697] STATE-MANDATED ENERGY PURCHASES; PUBLIC 
169.20 	INFORMATION.
169.21 	A utility serving Minnesota customers at retail must, within 30 days of entering into an 
169.22 	agreement to purchase energy that is used to meet a requirement under state law to purchase 
169.23 	or generate certain amounts and types of energy, including, but not limited to, requirements 
169.24 	in sections 216B.1691, 216B.2423, and 216B.2424, post the following information contained 
169.25 	in the agreement on the utility's Web site:
169.26 	(1) the wholesale price per unit of energy over the term of the agreement, including any 
169.27 	escalator clauses or inflation factors; and
169.28 	(2) the amount of energy to be purchased each year by the utility over the term of the 
169.29 	agreement.

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

170.1 	Sec. 15. Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read:
170.2 		Subd. 1b.Conservation improvement by cooperative association or municipality.
 170.3 	(a) This subdivision applies to:
170.4 	(1) a cooperative electric association that provides retail service to its more than 5,000
170.5 	members;
170.6 	(2) a municipality that provides electric service to more than 1,000 retail customers; and
170.7 	(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales 
170.8 	to natural gas to retail customers.
170.9 	(b) Each cooperative electric association and municipality subject to this subdivision 
170.10 	shall spend and invest for energy conservation improvements under this subdivision the 
170.11 	following amounts:
170.12 	(1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas 
170.13 	and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross 
170.14 	operating revenues from electric and gas service provided in the state to large electric 
170.15 	customer facilities; and
170.16 	(2) for a cooperative electric association, 1.5 percent of its gross operating revenues 
170.17 	from service provided in the state, excluding gross operating revenues from service provided 
170.18 	in the state to large electric customer facilities indirectly through a distribution cooperative 
170.19 	electric association.
170.20 	(c) Each municipality and cooperative electric association subject to this subdivision 
170.21 	shall identify and implement energy conservation improvement spending and investments 
170.22 	that are appropriate for the municipality or association, except that a municipality or 
170.23 	association may not spend or invest for energy conservation improvements that directly 
170.24 	benefit a large energy facility or a large electric customer facility for which the commissioner 
170.25 	has issued an exemption under subdivision 1a, paragraph (b).
170.26 	(d) Each municipality and cooperative electric association subject to this subdivision 
170.27 	may spend and invest annually up to ten percent of the total amount required to be spent 
170.28 	and invested on energy conservation improvements under this subdivision on research and 
170.29 	development projects that meet the definition of energy conservation improvement in 
170.30 	subdivision 1 and that are funded directly by the municipality or cooperative electric 
170.31 	association.
170.32 	(e) Load-management activities may be used to meet 50 percent of the conservation 
170.33 	investment and spending requirements of this subdivision.
171.1 	(f) A generation and transmission cooperative electric association that provides energy 
171.2 	services to cooperative electric associations that provide electric service at retail to consumers 
171.3 	may invest in energy conservation improvements on behalf of the associations it serves and 
171.4 	may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate 
171.5 	basis. A municipal power agency or other not-for-profit entity that provides energy service 
171.6 	to municipal utilities that provide electric service at retail may invest in energy conservation 
171.7 	improvements on behalf of the municipal utilities it serves and may fulfill the conservation, 
171.8 	spending, reporting, and energy-savings goals on an aggregate basis, under an agreement 
171.9 	between the municipal power agency or not-for-profit entity and each municipal utility for 
171.10 	funding the investments.
171.11 	(g) Each municipality or cooperative shall file energy conservation improvement plans 
171.12 	by June 1 on a schedule determined by order of the commissioner, but at least every three 
171.13 	years. Plans received by June 1 must be approved or approved as modified by the 
171.14 	commissioner by December 1 of the same year. The municipality or cooperative shall 
171.15 	provide an evaluation to the commissioner detailing its energy conservation improvement 
171.16 	spending and investments for the previous period. The evaluation must briefly describe 
171.17 	each conservation program and must specify the energy savings or increased efficiency in 
171.18 	the use of energy within the service territory of the utility or association that is the result of 
171.19 	the spending and investments. The evaluation must analyze the cost-effectiveness of the 
171.20 	utility's or association's conservation programs, using a list of baseline energy and capacity 
171.21 	savings assumptions developed in consultation with the department. The commissioner 
171.22 	shall review each evaluation and make recommendations, where appropriate, to the 
171.23 	municipality or association to increase the effectiveness of conservation improvement 
171.24 	activities.
171.25 	(h) MS 2010 [Expired, 1Sp2003 c 11 art 3 s 4; 2007 c 136 art 2 s 5]
171.26 	(i) (h) The commissioner shall consider and may require a utility, association, or other 
171.27 	entity providing energy efficiency and conservation services under this section to undertake 
171.28 	a program suggested by an outside source, including a political subdivision, nonprofit 
171.29 	corporation, or community organization.

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

171.31 	Sec. 16. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:
171.32 		Subd. 1c.Energy-saving goals. (a) The commissioner shall establish energy-saving 
171.33 	goals for energy conservation improvement expenditures and shall evaluate an energy 
171.34 	conservation improvement program on how well it meets the goals set.
172.1 	(b) Each individual utility and association shall have an annual energy-savings goal 
172.2 	equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 
172.3 	commissioner under paragraph (d). The savings goals must be calculated based on the most 
172.4 	recent three-year weather-normalized average. A utility or association may elect to carry 
172.5 	forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar 
172.6 	years, except that savings from electric utility infrastructure projects allowed under paragraph 
172.7 	(d) may be carried forward for five years. A particular energy savings can be used only for 
172.8 	one year's goal.
172.9 	(c) The commissioner must adopt a filing schedule that is designed to have all utilities 
172.10 	and associations operating under an energy-savings plan by calendar year 2010.
172.11 	(d) In its energy conservation improvement plan filing, a utility or association may 
172.12 	request the commissioner to adjust its annual energy-savings percentage goal based on its 
172.13 	historical conservation investment experience, customer class makeup, load growth, a 
172.14 	conservation potential study, or other factors the commissioner determines warrants an 
172.15 	adjustment. The commissioner may not approve a plan of a public utility that provides for 
172.16 	an annual energy-savings goal of less than one percent of gross annual retail energy sales 
172.17 	from energy conservation improvements.
172.18 	A utility or association may include in its energy conservation plan energy savings from 
172.19 	electric utility infrastructure projects approved by the commission under section 216B.1636
172.20 	or waste heat recovery converted into electricity projects that may count as energy savings 
172.21 	in addition to a minimum energy-savings goal of at least one percent for energy conservation 
172.22 	improvements. Energy savings from electric utility infrastructure projects, as defined in 
172.23 	section 216B.1636, may be included in the energy conservation plan of a municipal utility 
172.24 	or cooperative electric association. Electric utility infrastructure projects must result in 
172.25 	increased energy efficiency greater than that which would have occurred through normal 
172.26 	maintenance activity.
172.27 	(e) An energy-savings goal is not satisfied by attaining the revenue expenditure 
172.28 	requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 
172.29 	energy-savings goal established in this subdivision.
172.30 	(f) An association or utility is not required to make energy conservation investments to 
172.31 	attain the energy-savings goals of this subdivision that are not cost-effective even if the 
172.32 	investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, 
172.33 	in determining cost-effectiveness, the commissioner shall consider the costs and benefits 
172.34 	to ratepayers, the utility, participants, and society. In addition, the commissioner shall 
173.1 	consider the rate at which an association or municipal utility is increasing its energy savings 
173.2 	and its expenditures on energy conservation.
173.3 	(g) On an annual basis, the commissioner shall produce and make publicly available a 
173.4 	report on the annual energy savings and estimated carbon dioxide reductions achieved by 
173.5 	the energy conservation improvement programs for the two most recent years for which 
173.6 	data is available. The commissioner shall report on program performance both in the 
173.7 	aggregate and for each entity filing an energy conservation improvement plan for approval 
173.8 	or review by the commissioner.
173.9 	(h) By January 15, 2010, the commissioner shall report to the legislature whether the 
173.10 	spending requirements under subdivisions 1a and 1b are necessary to achieve the 
173.11 	energy-savings goals established in this subdivision.
173.12 	(i) This subdivision does not apply to:
173.13 	(1) a cooperative electric association with fewer than 5,000 members;
173.14 	(2) a municipal utility with fewer than 1,000 retail electric customers; or
173.15 	(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales 
173.16 	to retail natural gas customers.

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

173.18 	Sec. 17. Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read:
173.19 		Subd. 2.Programs. (a) The commissioner may require public utilities to make 
173.20 	investments and expenditures in energy conservation improvements, explicitly setting forth 
173.21 	the interest rates, prices, and terms under which the improvements must be offered to the 
173.22 	customers. The required programs must cover no more than a three-year period. Public 
173.23 	utilities shall file conservation improvement plans by June 1, on a schedule determined by 
173.24 	order of the commissioner, but at least every three years. Plans received by a public utility 
173.25 	by June 1 must be approved or approved as modified by the commissioner by December 1 
173.26 	of that same year. The commissioner shall evaluate the program on the basis of 
173.27 	cost-effectiveness and the reliability of technologies employed. The commissioner's order 
173.28 	must provide to the extent practicable for a free choice, by consumers participating in the 
173.29 	program, of the device, method, material, or project constituting the energy conservation 
173.30 	improvement and for a free choice of the seller, installer, or contractor of the energy 
173.31 	conservation improvement, provided that the device, method, material, or project seller, 
173.32 	installer, or contractor is duly licensed, certified, approved, or qualified, including under 
173.33 	the residential conservation services program, where applicable.
174.1 	(b) The commissioner may require a utility subject to subdivision 1c to make an energy 
174.2 	conservation improvement investment or expenditure whenever the commissioner finds 
174.3 	that the improvement will result in energy savings at a total cost to the utility less than the 
174.4 	cost to the utility to produce or purchase an equivalent amount of new supply of energy. 
174.5 	The commissioner shall nevertheless ensure that every public utility operate one or more 
174.6 	programs under periodic review by the department.
174.7 	(c) Each public utility subject to subdivision 1a may spend and invest annually up to ten 
174.8 	percent of the total amount required to be spent and invested on energy conservation 
174.9 	improvements under this section by the utility on research and development projects that 
174.10 	meet the definition of energy conservation improvement in subdivision 1 and that are funded 
174.11 	directly by the public utility.
174.12 	(d) A public utility may not spend for or invest in energy conservation improvements 
174.13 	that directly benefit a large energy facility or a large electric customer facility for which the 
174.14 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 
174.15 	commissioner shall consider and may require a utility to undertake a program suggested by 
174.16 	an outside source, including a political subdivision, a nonprofit corporation, or community 
174.17 	organization.
174.18 	(e) A utility, a political subdivision, or a nonprofit or community organization that has 
174.19 	suggested a program, the attorney general acting on behalf of consumers and small business 
174.20 	interests, or a utility customer that has suggested a program and is not represented by the 
174.21 	attorney general under section 8.33 may petition the commission to modify or revoke a 
174.22 	department decision under this section, and the commission may do so if it determines that 
174.23 	the program is not cost-effective, does not adequately address the residential conservation 
174.24 	improvement needs of low-income persons, has a long-range negative effect on one or more 
174.25 	classes of customers, or is otherwise not in the public interest. The commission shall reject 
174.26 	a petition that, on its face, fails to make a reasonable argument that a program is not in the 
174.27 	public interest.
174.28 	(f) The commissioner may order a public utility to include, with the filing of the utility's 
174.29 	annual status report, the results of an independent audit of the utility's conservation 
174.30 	improvement programs and expenditures performed by the department or an auditor with 
174.31 	experience in the provision of energy conservation and energy efficiency services approved 
174.32 	by the commissioner and chosen by the utility. The audit must specify the energy savings 
174.33 	or increased efficiency in the use of energy within the service territory of the utility that is 
174.34 	the result of the spending and investments. The audit must evaluate the cost-effectiveness 
174.35 	of the utility's conservation programs.
175.1 	(g) A gas utility may not spend for or invest in energy conservation improvements that 
175.2 	directly benefit a large customer facility or commercial gas customer facility for which the 
175.3 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or 
175.4 	(e). The commissioner shall consider and may require a utility to undertake a program 
175.5 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
175.6 	or a community organization.

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

175.8 	Sec. 18. Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read:
175.9 		Subd. 5.Efficient lighting program. (a) Each public utility, cooperative electric 
175.10 	association, and municipal utility that provides electric service to retail customers and is 
175.11 	subject to subdivision 1c shall include as part of its conservation improvement activities a 
175.12 	program to strongly encourage the use of fluorescent and high-intensity discharge lamps. 
175.13 	The program must include at least a public information campaign to encourage use of the 
175.14 	lamps and proper management of spent lamps by all customer classifications.
175.15 	(b) A public utility that provides electric service at retail to 200,000 or more customers 
175.16 	shall establish, either directly or through contracts with other persons, including lamp 
175.17 	manufacturers, distributors, wholesalers, and retailers and local government units, a system 
175.18 	to collect for delivery to a reclamation or recycling facility spent fluorescent and 
175.19 	high-intensity discharge lamps from households and from small businesses as defined in 
175.20 	section 645.445 that generate an average of fewer than ten spent lamps per year.
175.21 	(c) A collection system must include establishing reasonably convenient locations for 
175.22 	collecting spent lamps from households and financial incentives sufficient to encourage 
175.23 	spent lamp generators to take the lamps to the collection locations. Financial incentives may 
175.24 	include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash 
175.25 	back system, or any other financial incentive or group of incentives designed to collect the 
175.26 	maximum number of spent lamps from households and small businesses that is reasonably 
175.27 	feasible.
175.28 	(d) A public utility that provides electric service at retail to fewer than 200,000 customers, 
175.29 	a cooperative electric association, or a municipal utility that provides electric service at 
175.30 	retail to customers may establish a collection system under paragraphs (b) and (c) as part 
175.31 	of conservation improvement activities required under this section.
175.32 	(e) The commissioner of the Pollution Control Agency may not, unless clearly required 
175.33 	by federal law, require a public utility, cooperative electric association, or municipality that 
176.1 	establishes a household fluorescent and high-intensity discharge lamp collection system 
176.2 	under this section to manage the lamps as hazardous waste as long as the lamps are managed 
176.3 	to avoid breakage and are delivered to a recycling or reclamation facility that removes 
176.4 	mercury and other toxic materials contained in the lamps prior to placement of the lamps 
176.5 	in solid waste.
176.6 	(f) If a public utility, cooperative electric association, or municipal utility contracts with 
176.7 	a local government unit to provide a collection system under this subdivision, the contract 
176.8 	must provide for payment to the local government unit of all the unit's incremental costs of 
176.9 	collecting and managing spent lamps.
176.10 	(g) All the costs incurred by a public utility, cooperative electric association, or municipal 
176.11 	utility for promotion and collection of fluorescent and high-intensity discharge lamps under 
176.12 	this subdivision are conservation improvement spending under this section.

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

176.14 	Sec. 19. Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read:
176.15 		Subd. 5d.On-bill repayment programs. (a) For the purposes of this subdivision:
176.16 	(1) "utility" means a public utility, municipal utility, or cooperative electric association
176.17 	subject to subdivision 1c that provides electric or natural gas service to retail customers; 
176.18 	and
176.19 	(2) "on-bill repayment program" means a program in which a utility collects on a 
176.20 	customer's bill repayment of a loan to the customer by an eligible lender to finance the 
176.21 	customer's investment in eligible energy conservation or renewable energy projects, and 
176.22 	remits loan repayments to the lender.
176.23 	(b) A utility may include as part of its conservation improvement plan an on-bill 
176.24 	repayment program to enable a customer to finance eligible projects with installment loans 
176.25 	originated by an eligible lender. An eligible project is one that is either an energy conservation 
176.26 	improvement, or a project installed on the customer's site that uses an eligible renewable 
176.27 	energy source as that term is defined in section 216B.2411, subdivision 2, paragraph (b), 
176.28 	but does not include mixed municipal solid waste or refuse-derived fuel from mixed 
176.29 	municipal solid waste. An eligible renewable energy source also includes solar thermal 
176.30 	technology that collects the sun's radiant energy and uses that energy to heat or cool air or 
176.31 	water, and meets the requirements of section 216C.25. To be an eligible lender, a lender 
176.32 	must:
176.33 	(1) have a federal or state charter and be eligible for federal deposit insurance;
177.1 	(2) be a government entity, including an entity established under chapter 469, that has 
177.2 	authority to provide financial assistance for energy efficiency and renewable energy projects;
177.3 	(3) be a joint venture by utilities established under section 452.25; or
177.4 	(4) be licensed, certified, or otherwise have its lending activities overseen by a state or 
177.5 	federal government agency.
177.6 	The commissioner must allow a utility broad discretion in designing and implementing an 
177.7 	on-bill repayment program, provided that the program complies with this subdivision.
177.8 	(c) A utility may establish an on-bill repayment program for all customer classes or for 
177.9 	a specific customer class.
177.10 	(d) A public utility that implements an on-bill repayment program under this subdivision 
177.11 	must enter into a contract with one or more eligible lenders that complies with the 
177.12 	requirements of this subdivision and contains provisions addressing capital commitments, 
177.13 	loan origination, transfer of loans to the public utility for on-bill repayment, and acceptance 
177.14 	of loans returned due to delinquency or default.
177.15 	(e) A public utility's contract with a lender must require the lender to comply with all 
177.16 	applicable federal and state laws, rules, and regulations related to lending practices and 
177.17 	consumer protection; to conform to reasonable and prudent lending standards; and to provide 
177.18 	businesses that sell, maintain, and install eligible projects the ability to participate in an 
177.19 	on-bill repayment program under this subdivision on a nondiscriminatory basis.
177.20 	(f) A public utility's contract with a lender may provide:
177.21 	(1) for the public utility to purchase loans from the lender with a condition that the lender 
177.22 	must purchase back loans in delinquency or default; or
177.23 	(2) for the lender to retain ownership of loans with the public utility servicing the loans 
177.24 	through on-bill repayment as long as payments are current.
177.25 	The risk of default must remain with the lender. The lender shall not have recourse against 
177.26 	the public utility except in the event of negligence or breach of contract by the utility.
177.27 	(g) If a public utility customer makes a partial payment on a utility bill that includes a 
177.28 	loan installment, the partial payment must be credited first to the amount owed for utility 
177.29 	service, including taxes and fees. A public utility may not suspend or terminate a customer's 
177.30 	utility service for delinquency or default on a loan that is being serviced through the public 
177.31 	utility's on-bill repayment program.
178.1 	(h) An outstanding balance on a loan being repaid under this subdivision is a financial 
178.2 	obligation only of the customer who is signatory to the loan, and not to any subsequent 
178.3 	customer occupying the property associated with the loan. If the public utility purchases 
178.4 	loans from the lender as authorized under paragraph (f), clause (1), the public utility must 
178.5 	return to the lender a loan not repaid when a customer borrower no longer occupies the 
178.6 	property.
178.7 	(i) Costs incurred by a public utility under this subdivision are recoverable as provided 
178.8 	in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs 
178.9 	for billing system modifications necessary to implement and operate an on-bill repayment 
178.10 	program and for ongoing costs to operate the program. Costs in a plan approved by the 
178.11 	commissioner may be counted toward a utility's conservation spending requirements under 
178.12 	subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting 
178.13 	from this section may be counted toward satisfying a utility's energy-savings goals under 
178.14 	subdivision 1c.
178.15 	(j) This subdivision does not require a utility to terminate or modify an existing financing 
178.16 	program and does not prohibit a utility from establishing an on-bill financing program in 
178.17 	which the utility provides the financing capital.
178.18 	(k) A municipal utility or cooperative electric association that implements an on-bill 
178.19 	repayment program shall design the program to address the issues identified in paragraphs 
178.20 	(d) through (h) as determined by the governing board of the utility or association.

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

178.22 	Sec. 20. Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read:
178.23 		Subd. 7.Low-income programs. (a) The commissioner shall ensure that each utility 
178.24 	and association subject to subdivision 1c provides low-income programs. When approving 
178.25 	spending and energy-savings goals for low-income programs, the commissioner shall 
178.26 	consider historic spending and participation levels, energy savings for low-income programs, 
178.27 	and the number of low-income persons residing in the utility's service territory. A municipal 
178.28 	utility that furnishes gas service must spend at least 0.2 percent, and a public utility furnishing 
178.29 	gas service must spend at least 0.4 percent, of its most recent three-year average gross 
178.30 	operating revenue from residential customers in the state on low-income programs. A utility 
178.31 	or association that furnishes electric service must spend at least 0.1 percent of its gross 
178.32 	operating revenue from residential customers in the state on low-income programs. For a 
178.33 	generation and transmission cooperative association, this requirement shall apply to each 
178.34 	association's members' aggregate gross operating revenue from sale of electricity to residential 
179.1 	customers in the state. Beginning in 2010, a utility or association that furnishes electric 
179.2 	service must spend 0.2 percent of its gross operating revenue from residential customers in 
179.3 	the state on low-income programs.
179.4 	(b) To meet the requirements of paragraph (a), a utility or association may contribute 
179.5 	money to the energy and conservation account. An energy conservation improvement plan 
179.6 	must state the amount, if any, of low-income energy conservation improvement funds the 
179.7 	utility or association will contribute to the energy and conservation account. Contributions 
179.8 	must be remitted to the commissioner by February 1 of each year.
179.9 	(c) The commissioner shall establish low-income programs to utilize money contributed 
179.10 	to the energy and conservation account under paragraph (b). In establishing low-income 
179.11 	programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and 
179.12 	community organizations, especially organizations engaged in providing energy and 
179.13 	weatherization assistance to low-income persons. Money contributed to the energy and 
179.14 	conservation account under paragraph (b) must provide programs for low-income persons, 
179.15 	including low-income renters, in the service territory of the utility or association providing 
179.16 	the money. The commissioner shall record and report expenditures and energy savings 
179.17 	achieved as a result of low-income programs funded through the energy and conservation 
179.18 	account in the report required under subdivision 1c, paragraph (g). The commissioner may 
179.19 	contract with a political subdivision, nonprofit or community organization, public utility, 
179.20 	municipality, or cooperative electric association to implement low-income programs funded 
179.21 	through the energy and conservation account.
179.22 	(d) A utility or association may petition the commissioner to modify its required spending 
179.23 	under paragraph (a) if the utility or association and the commissioner have been unable to 
179.24 	expend the amount required under paragraph (a) for three consecutive years.
179.25 	(e) The costs and benefits associated with any approved low-income gas or electric 
179.26 	conservation improvement program that is not cost-effective when considering the costs 
179.27 	and benefits to the utility may, at the discretion of the utility, be excluded from the calculation 
179.28 	of net economic benefits for purposes of calculating the financial incentive to the utility. 
179.29 	The energy and demand savings may, at the discretion of the utility, be applied toward the 
179.30 	calculation of overall portfolio energy and demand savings for purposes of determining 
179.31 	progress toward annual goals and in the financial incentive mechanism.

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

180.1 	Sec. 21. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:
180.2 		Subd. 2.Resource plan filing and approval. (a) A utility shall file a resource plan with 
180.3 	the commission periodically in accordance with rules adopted by the commission. The 
180.4 	commission shall approve, reject, or modify the plan of a public utility, as defined in section 
180.5 	216B.02, subdivision 4, consistent with the public interest. The analysis must consider the 
180.6 	economy, job growth, and job retention.
180.7 	(b) In the resource plan proceedings of all other utilities, the commission's order shall 
180.8 	be advisory and the order's findings and conclusions shall constitute prima facie evidence 
180.9 	which may be rebutted by substantial evidence in all other proceedings. With respect to 
180.10 	utilities other than those defined in section 216B.02, subdivision 4, the commission shall 
180.11 	consider the filing requirements and decisions in any comparable proceedings in another 
180.12 	jurisdiction.
180.13 	(c) As a part of its resource plan filing, a utility shall include the least cost plan for 
180.14 	meeting 50 and 75 percent of all energy needs from both new and refurbished capacity 
180.15 	needs generating facilities through a combination of conservation and renewable energy 
180.16 	resources.

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

180.20 	Sec. 22. Minnesota Statutes 2016, section 216B.2422, subdivision 3, is amended to read:
180.21 		Subd. 3.Environmental costs. (a) The commission shall, to the extent practicable, 
180.22 	quantify and establish a range of environmental costs associated with each method of 
180.23 	electricity generation, including, but not limited to, the costs of air emissions and water 
180.24 	degradation. A utility shall use the values established by the commission in conjunction 
180.25 	with other external factors, including socioeconomic costs, when evaluating and selecting 
180.26 	resource options in all proceedings before the commission, including resource plan and 
180.27 	certificate of need proceedings. As part of the resource options and socioeconomic cost 
180.28 	analysis under this section, the utility must calculate the impact of resource options on 
180.29 	customers' bills and utility rates. Any doubt regarding the various resource options before 
180.30 	the commission must be resolved in favor of supporting the economy, job growth, and job 
180.31 	retention.
181.1 	(b) The commission shall establish interim environmental cost values associated with 
181.2 	each method of electricity generation by March 1, 1994. These values expire on the date 
181.3 	the commission establishes environmental cost values under paragraph (a).

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

181.6 	Sec. 23. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:
181.7 		Subd. 4.Preference for renewable energy facility. The commission shall not approve 
181.8 	a new or refurbished nonrenewable energy facility in an integrated resource plan or a 
181.9 	certificate of need, pursuant to section 216B.243, nor shall the commission allow rate 
181.10 	recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the 
181.11 	utility has demonstrated that a renewable energy facility is not in the public interest. When 
181.12 	making the public interest determination, the commission must include consider:
181.13 	(1) whether the resource plan helps the utility achieve the greenhouse gas reduction 
181.14 	goals under section 216H.02, the renewable energy standard under section 216B.1691, or 
181.15 	the solar energy standard under section 216B.1691, subdivision 2f.;
181.16 	(2) impacts on local and regional grid reliability;
181.17 	(3) utility and ratepayer impacts resulting from the intermittent nature of renewable 
181.18 	energy facilities, including but not limited to the costs of purchasing wholesale electricity 
181.19 	in the market and the costs of providing ancillary services; and
181.20 	(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, 
181.21 	changes in transmission costs, portfolio diversification, and environmental compliance 
181.22 	costs.

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

181.24 	Sec. 24. Minnesota Statutes 2016, section 216B.243, subdivision 8, is amended to read:
181.25 		Subd. 8.Exemptions. (a) This section does not apply to:
181.26 	(1) cogeneration or small power production facilities as defined in the Federal Power 
181.27 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
181.28 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
181.29 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
181.30 	any case where the commission has determined after being advised by the attorney general 
181.31 	that its application has been preempted by federal law;
182.1 	(2) a high-voltage transmission line proposed primarily to distribute electricity to serve 
182.2 	the demand of a single customer at a single location, unless the applicant opts to request 
182.3 	that the commission determine need under this section or section 216B.2425;
182.4 	(3) the upgrade to a higher voltage of an existing transmission line that serves the demand 
182.5 	of a single customer that primarily uses existing rights-of-way, unless the applicant opts to 
182.6 	request that the commission determine need under this section or section 216B.2425;
182.7 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
182.8 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
182.9 	(5) conversion of the fuel source of an existing electric generating plant to using natural 
182.10 	gas;
182.11 	(6) the modification of an existing electric generating plant to increase efficiency, as 
182.12 	long as the capacity of the plant is not increased more than ten percent or more than 100 
182.13 	megawatts, whichever is greater;
182.14 	(7) a wind energy conversion system or solar electric generation facility if the system 
182.15 	or facility is owned and operated by an independent power producer and the electric output 
182.16 	of the system or facility is not sold to an entity that provides retail service in Minnesota or 
182.17 	wholesale electric service to another entity in Minnesota other than an entity that is a federally 
182.18 	recognized regional transmission organization or independent system operator; or
182.19 	(8) a large wind energy conversion system, as defined in section 216F.01, subdivision 
182.20 	2, or a solar energy generating large energy facility, as defined in section 216B.2421, 
182.21 	subdivision 2 216E.01, subdivision 9a, engaging in a repowering project that:
182.22 	(i) will not result in the facility exceeding the nameplate capacity under its most recent 
182.23 	interconnection agreement; or
182.24 	(ii) will result in the facility exceeding the nameplate capacity under its most recent 
182.25 	interconnection agreement, provided that the Midcontinent Independent System Operator 
182.26 	has provided a signed generator interconnection agreement that reflects the expected net 
182.27 	power increase.;
182.28 	(9) a large wind energy conversion system, as defined in section 216F.01, subdivision 
182.29 	2;
182.30 	(10) a solar energy generating system, as defined in section 216E.01, subdivision 9a, 
182.31 	with a capacity of five megawatts or more;
182.32 	(11) a pipeline transporting crude oil or refined petroleum products;
183.1 	(12) a pipeline transporting natural gas or propane; or
183.2 	(13) a replacement pipeline.
183.3 	(b) For the purpose of this subdivision, the following terms have the meanings given:
183.4 	(1) "repowering project" means:
183.5 	(1) (i) modifying a large wind energy conversion system or a solar energy generating 
183.6 	large energy facility to increase its efficiency without increasing its nameplate capacity;
183.7 	(2) (ii) replacing turbines in a large wind energy conversion system without increasing 
183.8 	the nameplate capacity of the system; or
183.9 	(3) (iii) increasing the nameplate capacity of a large wind energy conversion system; 
183.10 	and
183.11 	(2) "replacement pipeline" means a pipeline constructed in a new or existing right-of-way 
183.12 	that replaces service provided by an existing pipeline that will be permanently removed 
183.13 	from service within 180 days of the date of initial service of the replacement pipeline.

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

183.15 	Sec. 25. Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read:
183.16 		Subd. 2.Energy policy goals. It is the energy policy of the state of Minnesota that:
183.17 	(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of 
183.18 	electricity and natural gas be achieved through cost-effective energy efficiency;
183.19 	(2) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the 
183.20 	year 2015, through increased reliance on energy efficiency and renewable energy alternatives; 
183.21 	and
183.22 	(3) 25 percent of the total energy used in the state be derived from renewable energy 
183.23 	resources by the year 2025.; and
183.24 	(4) retail electricity rates be at least ten percent below the national average for commercial 
183.25 	customers and at least five percent below the national average for all other customer classes.

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

183.27 	Sec. 26. Minnesota Statutes 2016, section 216C.41, subdivision 2, is amended to read:
183.28 		Subd. 2.Incentive payment; appropriation. (a) Incentive payments must be made 
183.29 	according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner 
184.1 	or operator of a qualified hydropower facility or qualified wind energy conversion facility 
184.2 	for electric energy generated and sold by the facility, (3) a publicly owned hydropower 
184.3 	facility for electric energy that is generated by the facility and used by the owner of the 
184.4 	facility outside the facility, or (4) the owner of a publicly owned dam that is in need of 
184.5 	substantial repair, for electric energy that is generated by a hydropower facility at the dam 
184.6 	and the annual incentive payments will be used to fund the structural repairs and replacement 
184.7 	of structural components of the dam, or to retire debt incurred to fund those repairs.
184.8 	(b) Payment may only be made upon receipt by the commissioner of commerce of an 
184.9 	incentive payment application that establishes that the applicant is eligible to receive an 
184.10 	incentive payment and that satisfies other requirements the commissioner deems necessary. 
184.11 	The application must be in a form and submitted at a time the commissioner establishes.
184.12 	(c) There is annually appropriated from the renewable development energy fund account 
184.13 	established under section 116C.779 to the commissioner of commerce sums sufficient to 
184.14 	make the payments required under this section, in addition to the amounts funded by the 
184.15 	renewable development energy fund account as specified in subdivision 5a.

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

184.17 	Sec. 27. Minnesota Statutes 2016, section 216C.41, subdivision 5a, is amended to read:
184.18 		Subd. 5a.Renewable development account Payment authorization. The Department 
184.19 	of Commerce shall authorize payment of the renewable energy production incentive to wind 
184.20 	energy conversion systems that are eligible under this section or Laws 2005, chapter 40, to 
184.21 	on-farm biogas recovery facilities, and to hydroelectric facilities. Payment of the incentive 
184.22 	shall be made from the renewable energy development fund account as provided  under 
184.23 	section 116C.779, subdivision 2.

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

184.25 	Sec. 28. [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" 
184.26 	SOLAR ENERGY PRODUCTION INCENTIVES.
184.27 		Subdivision 1.General provisions. Payment of a "Made in Minnesota" solar energy 
184.28 	production incentive to an owner whose application was approved by the commissioner of 
184.29 	commerce under section 216C.415 prior to the effective date of this section must be 
184.30 	administered under the provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 
184.31 	216C.414, subdivisions 1 to 3 and 5; and 216C.415. No incentive payments may be made 
185.1 	under this section to an owner whose application was approved by the commissioner after 
185.2 	the effective date of this section.
185.3 		Subd. 2.Appropriation. (a) Unspent money remaining in the account established under 
185.4 	Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the 
185.5 	energy fund account in the special revenue fund established under section 116C.779, 
185.6 	subdivision 1.
185.7 	(b) There is annually appropriated from the energy fund account in the special revenue 
185.8 	fund established in section 116C.779 to the commissioner of commerce money sufficient 
185.9 	to make the incentive payments required under Minnesota Statutes 2016, section 216C.415.
185.10 	(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of 
185.11 	this appropriation may be used for administrative costs.
185.12 		Subd. 3.Eligibility window; payment duration. (a) Payments may be made under this 
185.13 	subdivision only for solar photovoltaic module installations that meet the requirements of 
185.14 	subdivision 1 and that first begin generating electricity between January 1, 2014, and 
185.15 	December 31, 2017.
185.16 	(b) The payment eligibility window of the incentive begins and runs consecutively from 
185.17 	the date the solar photovoltaic module first begins generating electricity.
185.18 	(c) An owner of solar photovoltaic modules may receive payments under this section 
185.19 	for a particular module for a period of ten years, provided that sufficient funds are available 
185.20 	in the account.
185.21 	(d) No payment may be made under this section for electricity generated after December 
185.22 	31, 2027.

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

185.24 	Sec. 29. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision 
185.25 	to read:
185.26 		Subd. 7a.Multifamily residential dwelling. "Multifamily residential dwelling" means 
185.27 	a residential dwelling containing five or more units intended for use as a residence by tenants 
185.28 	or lessees of the owner.

185.29 	Sec. 30. Minnesota Statutes 2016, section 216E.03, subdivision 3, is amended to read:
185.30 		Subd. 3.Application. Any person seeking to construct a large electric power generating 
185.31 	plant or a high-voltage transmission line must apply to the commission for a site or route 
186.1 	permit. The application shall contain such information as the commission may require. The 
186.2 	applicant shallmay propose at least two sites for a large electric power generating plant and 
186.3 	two routes for a high-voltage transmission line. Neither of the two proposed routes may be 
186.4 	designated as a preferred route and all proposed routes must be numbered and designated 
186.5 	as alternatives. The commission shall determine whether an application is complete and 
186.6 	advise the applicant of any deficiencies within ten days of receipt. An application is not 
186.7 	incomplete if information not in the application can be obtained from the applicant during 
186.8 	the first phase of the process and that information is not essential for notice and initial public 
186.9 	meetings.

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

186.11 	Sec. 31. Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:
186.12 		Subd. 9.Timing. The commission shall make a final decision on an application within 
186.13 	60 days after receipt of the report of the administrative law judge. A final decision on the 
186.14 	request for a site permit or route permit shall be made within one year after the commission's 
186.15 	determination that an application is complete. The commission may extend this time limit 
186.16 	for up to three months30 days for just cause or upon agreement of the applicant.

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

186.18 	Sec. 32. Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:
186.19 		Subd. 7.Timing. The commission shall make a final decision on an application within 
186.20 	60 days after completion of the public hearing. A final decision on the request for a site 
186.21 	permit or route permit under this section shall be made within six months after the 
186.22 	commission's determination that an application is complete. The commission may extend 
186.23 	this time limit for up to three months30 days for just cause or upon agreement of the 
186.24 	applicant.

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

186.26 	Sec. 33. Minnesota Statutes 2016, section 216F.01, subdivision 2, is amended to read:
186.27 		Subd. 2.Large wind energy conversion system or LWECS. "Large wind energy 
186.28 	conversion system" or "LWECS" means any combination of WECS with a combined 
186.29 	nameplate capacity of 5,000 kilowatts or more and transmission lines directly associated 
186.30 	with the LWECS that are necessary to interconnect the LWECS to the transmission system.

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

187.1 	Sec. 34. Minnesota Statutes 2016, section 216F.011, is amended to read:
187.2 	216F.011 SIZE DETERMINATION.
187.3 	(a) The total size of a combination of wind energy conversion systems for the purpose 
187.4 	of determining what jurisdiction has siting authority under this chapter must be determined 
187.5 	according to this section. The nameplate capacity of one wind energy conversion system 
187.6 	must be combined with the nameplate capacity of any other wind energy conversion system 
187.7 	that:
187.8 	(1) is located within five miles of the wind energy conversion system;
187.9 	(2) is constructed within the same 12-month period as the wind energy conversion 
187.10 	system; and
187.11 	(3) exhibits characteristics of being a single development, including, but not limited to, 
187.12 	ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing 
187.13 	arrangements, and common debt or equity financing.
187.14 	(b) The commissioner shall provide forms and assistance for project developers to make 
187.15 	a request for a size determination. Upon written request of a project developer, the 
187.16 	commissioner of commerce shall provide a written size determination within 30 days of 
187.17 	receipt of the request and of any information needed to complete the size determination that 
187.18 	has been requested by the commissioner. In the case of a dispute, the chair of the Public 
187.19 	Utilities Commission shall make the final size determination.
187.20 	(c) An application to a county for a permit under this chapter for a wind energy conversion 
187.21 	system is not complete without a size determination made under this section.

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

187.23 	Sec. 35. Minnesota Statutes 2016, section 216F.04, is amended to read:
187.24 	216F.04 SITE PERMIT.
187.25 	(a) No person may construct an LWECS without a site permit issued by the Public 
187.26 	Utilities Commission.
187.27 	(b) Any person seeking to construct an LWECS shall submit an application to the 
187.28 	commission for a site permit in accordance with this chapter and any rules adopted by the 
187.29 	commission. The permitted site need not be contiguous land.
187.30 	(c) The commission shall make a final decision on an application for a site permit for 
187.31 	an LWECS within 180 days after acceptance of a complete application by the commission. 
188.1 	The commission may extend this deadline for cause if the proposer agrees to an extension 
188.2 	in writing.
188.3 	(d) The commission may place conditions in a permit and may deny, modify, suspend, 
188.4 	or revoke a permit.

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

188.6 	Sec. 36. [216G.025] ALTERNATIVE PIPELINE ROUTES; RESTRICTION.
188.7 	Notwithstanding section 116D.04, subdivisions 2a and 6, and any other law or rule, no 
188.8 	environmental analysis of alternative routes for a pipeline seeking a routing permit may 
188.9 	include an alternative route that does not connect the pipeline's termini as proposed by the 
188.10 	applicant.

188.11 	Sec. 37. Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read:
188.12 		Subd. 3.Long-term increased emissions from power plants prohibited. Unless 
188.13 	preempted by federal law, until a comprehensive and enforceable state law or rule pertaining 
188.14 	to greenhouse gases that directly limits and substantially reduces, over time, statewide power 
188.15 	sector carbon dioxide emissions is enacted and in effect, and except as allowed in 
188.16 	subdivisions 4 to 7, on and after August 1, 2009, no person shall:
188.17 	(1) construct within the state a new large energy facility that would contribute to statewide 
188.18 	power sector carbon dioxide emissions;.
188.19 	(2) import or commit to import from outside the state power from a new large energy 
188.20 	facility that would contribute to statewide power sector carbon dioxide emissions; or
188.21 	(3) enter into a new long-term power purchase agreement that would increase statewide 
188.22 	power sector carbon dioxide emissions. For purposes of this section, a long-term power 
188.23 	purchase agreement means an agreement to purchase 50 megawatts of capacity or more for 
188.24 	a term exceeding five years.

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

188.26 	Sec. 38. Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read:
188.27 		Subd. 4.Exception for facilities that offset emissions. (a) The prohibitions in prohibition 
188.28 	under subdivision 3 do does not apply if the project proponent demonstrates to the Public 
188.29 	Utilities Commission's satisfaction that it will offset the new contribution to statewide power 
188.30 	sector carbon dioxide emissions with a carbon dioxide reduction project identified in 
188.31 	paragraph (b) and in compliance with paragraph (c).
189.1 	(b) A project proponent may offset in an amount equal to or greater than the proposed 
189.2 	new contribution to statewide power sector carbon dioxide emissions in either, or a 
189.3 	combination of both, of the following ways:
189.4 	(1) by reducing an existing facility's contribution to statewide power sector carbon 
189.5 	dioxide emissions; or
189.6 	(2) by purchasing carbon dioxide allowances from a state or group of states that has a 
189.7 	carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
189.8 	(c) The Public Utilities Commission shall not find that a proposed carbon dioxide 
189.9 	reduction project identified in paragraph (b) acceptably offsets a new contribution to statewide 
189.10 	power sector carbon dioxide emissions unless the proposed offsets are permanent, 
189.11 	quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section 
189.12 	does not exempt emissions that have been offset under this subdivision and emissions 
189.13 	exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state.

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

189.15 	Sec. 39. Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read:
189.16 		Subd. 7.Other exemptions. The prohibitions in prohibition under subdivision 3 do does
189.17 	not apply to:
189.18 	(1) a new large energy facility under consideration by the Public Utilities Commission 
189.19 	pursuant to proposals or applications filed with the Public Utilities Commission before April 
189.20 	1, 2007, or to any power purchase agreement related to a facility described in this clause. 
189.21 	The exclusion of pending proposals and applications from the prohibitions in subdivision 
189.22 	3 does not limit the applicability of any other law and is not an expression of legislative 
189.23 	intent regarding whether any pending proposal or application should be approved or denied;
189.24 	(2) a contract not subject to commission approval that was entered into prior to April 1, 
189.25 	2007, to purchase power from a new large energy facility that was approved by a comparable 
189.26 	authority in another state prior to that date, for which municipal or public power district 
189.27 	bonds have been issued, and on which construction has begun;
189.28 	(3) a new large energy facility or a power purchase agreement between a Minnesota 
189.29 	utility and a new large energy facility located outside within Minnesota that the Public 
189.30 	Utilities Commission has determined is essential to ensure the long-term reliability of 
189.31 	Minnesota's electric system, to allow electric service for increased industrial demand, or to 
189.32 	avoid placing a substantial financial burden on Minnesota ratepayers. An order of the 
189.33 	commission granting an exemption under this clause is stayed until the June 1 following 
190.1 	the next regular or annual session of the legislature that begins after the date of the 
190.2 	commission's final order; or
190.3 	(4) a new large energy facility with a combined electric generating capacity of less than 
190.4 	100 megawatts, which did not require a Minnesota certificate of need, which received an 
190.5 	air pollution control permit to construct from an adjoining state before January 1, 2008, and 
190.6 	on which construction began before July 1, 2008, or to any power purchase agreement 
190.7 	related to a facility described in this clause.

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

190.9 	Sec. 40. RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK 
190.10 	FORCE PROGRAMS.
 190.11 		Subdivision 1.Establishment. The Residential PACE Consumer Protection Legislation 
190.12 	Task Force shall develop recommendations for consumer protection legislation for any 
190.13 	energy improvements financing program implemented under Minnesota Statutes, sections 
190.14 	216C.435 to 216C.436, for single-family residential dwellings. For purposes of this section, 
190.15 	"residential PACE" or "PACE" means energy improvement financing programs for 
190.16 	single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435 
190.17 	to 216C.436.
190.18 		Subd. 2.Task force. (a) The task force consists of 16 members as follows:
190.19 	(1) one member appointed by the Minnesota Association of Realtors;
190.20 	(2) one member appointed by the Center for Energy and Environment;
190.21 	(3) one member appointed by the Minnesota Bankers Association;
190.22 	(4) one member appointed by the Legal Services Advocacy Project;
190.23 	(5) one member appointed by the Minnesota Credit Union Network;
190.24 	(6) one member appointed by the Minnesota Solar Energy Industry Association;
190.25 	(7) one member appointed by the St. Paul Port Authority;
190.26 	(8) one member appointed by the League of Minnesota Cities;
190.27 	(9) one member appointed by the Association of Minnesota Counties;
190.28 	(10) one member appointed by AARP Minnesota;
190.29 	(11) one member appointed by Fresh Energy;
190.30 	(12) one member appointed by the Citizens Utility Board of Minnesota;
191.1 	(13) one member appointed by Clean Energy Economy Minnesota;
191.2 	(14) one member appointed by the Minnesota Land Title Association;
191.3 	(15) one member appointed by an organization with experience implementing residential 
191.4 	PACE programs in other states; and
191.5 	(16) the commissioner of commerce or a designee.
191.6 	(b) Any public member can designate a substitute from the same organization to replace 
191.7 	that member at a meeting of the task force.
191.8 		Subd. 3.Duties. The task force must develop recommendations to:
191.9 	(1) address concerns regarding the possible constraints on free alienation of residential 
191.10 	property caused by existence and amount of the PACE liens;
191.11 	(2) reduce and minimize any point-of-sale confusion in transactions involving 
191.12 	PACE-encumbered homes;
191.13 	(3) ensure conspicuous and meaningful disclosure of, among other things:
191.14 	(i) all costs and fees of a residential PACE loan; and
191.15 	(ii) the risks, such as foreclosure and higher costs, that may be associated with residential 
191.16 	PACE loans relative to other financing mechanisms;
191.17 	(4) ensure that the ability to repay standard uses commonly accepted underwriting 
191.18 	principles;
191.19 	(5) ensure that consumer provisions required of and protections that apply to conventional 
191.20 	loans and other financing options, including but not limited to the Truth in Lending Act and 
191.21 	the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
191.22 	(6) address any unique protections necessary for elderly, low-income homeowners and 
191.23 	other financially vulnerable homeowners;
191.24 	(7) establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy 
191.25 	improvements; and
191.26 	(8) address any other issues the task force identifies that are necessary to protect 
191.27 	consumers.
191.28 		Subd. 4.Administrative support. The commissioner of commerce shall provide 
191.29 	administrative support and meeting space for the task force.
192.1 		Subd. 5.Compensation. Members serve without compensation and shall not be 
192.2 	reimbursed for expenses.
192.3 		Subd. 6.Chair. The commissioner of commerce or the commissioner's designee shall 
192.4 	serve as chair.
192.5 		Subd. 7.Meetings. The task force shall meet regularly, at the call of the chair. Meetings 
192.6 	of the task force are subject to Minnesota Statutes, chapter 13D.
192.7 		Subd. 8.Appointments; first meeting. Appointments must be made by June 1, 2017. 
192.8 	The commissioner of commerce must convene the first meeting by July 15, 2017.
192.9 		Subd. 9.Report to legislature. By January 15, 2018, the commissioner shall submit a 
192.10 	report detailing the task force's findings and recommendations to the chairs and ranking 
192.11 	minority members of the senate and house of representatives committees with jurisdiction 
192.12 	over energy and consumer protection policy and finance. The report must include any draft 
192.13 	legislation necessary to implement the recommendations of the task force.
192.14 		Subd. 10.Suspension of residential PACE. Until legislation is enacted establishing 
192.15 	consumer protections that address, but are not limited to, the concerns identified in 
192.16 	subdivision 3, no programs for the financing of energy improvements on a single-family 
192.17 	residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436, 
192.18 	may be operated after the effective date of this section.
192.19 		Subd. 11.Expiration. The task force expires January 15, 2018, or after submitting the 
192.20 	report required in this section, whichever is earlier.

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

192.22 	Sec. 41. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
192.23 	THERMAL REBATES.
 192.24 	(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner 
192.25 	of a solar thermal system whose application was approved by the commissioner of commerce 
192.26 	after the effective date of this section.
192.27 	(b) Unspent money remaining in the account established under Minnesota Statutes 2014, 
192.28 	section 216C.416, as of July 2, 2017, must be transferred to the energy fund account 
192.29 	established under Minnesota Statutes 2016, section 116C.779, subdivision 1.

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

193.1 	Sec. 42. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF 
193.2 	UNEXPENDED GRANT FUNDS.
 193.3 	(a) No later than 30 days after the effective date of this section, the utility subject to 
193.4 	Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person 
193.5 	who received a grant funded from the renewable development account previously established 
193.6 	under that subdivision:
193.7 	(1) after January 1, 2012; and
193.8 	(2) before January 1, 2012, if the funded project remains incomplete as of the effective 
193.9 	date of this section.
193.10 	The notice must contain the provisions of this section and instructions directing grant 
193.11 	recipients how unexpended funds can be transferred to the energy fund account.
193.12 	(b) A recipient of a grant from the renewable development account previously established 
193.13 	under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after 
193.14 	receiving the notice required under paragraph (a), transfer any grant funds that remain 
193.15 	unexpended as of the effective date of this section to the energy fund account if, by that 
193.16 	effective date, all of the following conditions are met:
193.17 	(1) the grant was awarded more than five years before the effective date of this section;
193.18 	(2) the grant recipient has failed to obtain control of the site on which the project is to 
193.19 	be constructed;
193.20 	(3) the grant recipient has failed to secure all necessary permits or approvals from any 
193.21 	unit of government with respect to the project; and
193.22 	(4) construction of the project has not begun.
193.23 	(c) A recipient of a grant from the renewable development account previously established 
193.24 	under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds 
193.25 	that remain unexpended five years after the grant funds are received by the grant recipient 
193.26 	if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant 
193.27 	recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary 
193.28 	of the receipt of the grant funds.
193.29 	(d) A person who transfers funds to the energy fund account under this section is eligible 
193.30 	to apply for funding from the Legislative Renewable Energy Council under Minnesota 
193.31 	Statutes, section 116C.7793.

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

194.1 	Sec. 43. PIPELINE REPLACEMENT PROJECT; ROUTE.
 194.2 	Notwithstanding Minnesota Statutes, section 216G.02, and Minnesota Rules, chapter 
194.3 	7852, an applicant may, at its sole discretion, construct, after July 1, 2017, own, and operate 
194.4 	a 36-inch diameter, approximately 340 mile-long replacement pipeline, as defined in 
194.5 	Minnesota Statutes, section 216B.243, subdivision 8, and associated facilities along the 
194.6 	preferred route the applicant proposed to the Public Utilities Commission in Docket No. 
194.7 	PL-9/PPL-15-137.

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

194.9 	Sec. 44. REPEALER.
 194.10 	(a) Laws 2013, chapter 85, article 6, section 11, is repealed.
194.11 	(b) Minnesota Statutes 2016, sections 216B.8109; 216B.811; 216B.812; 216B.813; and 
194.12 	216B.815, are repealed.
194.13 	(c) Minnesota Statutes 2016, sections 3.8852; 116C.779, subdivision 3; and 216C.29,
194.14 	are repealed.
194.15 	(d) Minnesota Statutes 2016, sections 174.187; 216C.411; 216C.412; 216C.413; 
194.16 	216C.414; 216C.415; and 216C.416, are repealed.

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

194.18 	ARTICLE 11
194.19 	MISCELLANEOUS

194.20 	Section 1. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
194.21 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
194.22 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
194.23 	new construction or remodeling of any building subject to the Minnesota Residential Code.
194.24 		Subd. 2.Impact on housing cost; agency determination. An agency must determine 
194.25 	if implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
194.26 	increase the cost of residential construction or remodeling by $1,000 or more per unit. The 
194.27 	agency must make this determination before the close of the hearing record, or before the 
194.28 	agency submits the record to the administrative law judge if there is no hearing. The 
194.29 	administrative law judge must review and approve or disapprove an agency's determination 
194.30 	under this subdivision.
195.1 		Subd. 3.Notice to legislature; legislative approval. (a) If the agency determines that 
195.2 	the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 
195.3 	2, or if the administrative law judge disapproves the agency's determination that the impact 
195.4 	does not meet or exceed that threshold, the agency must notify, in writing, the chairs and 
195.5 	ranking minority members of the policy committees of the house of representatives and the 
195.6 	senate with jurisdiction over the subject matter of the proposed rule within ten days of the 
195.7 	determination or disapproval.
195.8 	(b) If a committee of either the house of representatives or senate with jurisdiction over 
195.9 	the subject matter of the proposed rule votes to advise an agency that the rule should not 
195.10 	be adopted as proposed, the agency may not adopt the rule unless the rule is approved by 
195.11 	a law enacted after the vote of the committee. Section 14.126, subdivision 2, applies to a 
195.12 	vote of a committee under this subdivision.
195.13 		Subd. 4.Severability. If the agency or an administrative law judge determines that part 
195.14 	of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a 
195.15 	severable portion of the proposed rule does not meet or exceed that threshold, the agency 
195.16 	may proceed to adopt the severable portions of the proposed rule regardless of whether a 
195.17 	legislative committee vote is conducted under subdivision 3.

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

195.20 	Sec. 2. Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read:
195.21 		Subd. 4.Interim ordinance. (a) If a municipality is conducting studies or has authorized 
195.22 	a study to be conducted or has held or has scheduled a hearing for the purpose of considering 
195.23 	adoption or amendment of a comprehensive plan or official controls as defined in section 
195.24 	462.352, subdivision 15, or if new territory for which plans or controls have not been adopted 
195.25 	is annexed to a municipality, the governing body of the municipality may adopt an interim 
195.26 	ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning 
195.27 	process and the health, safety and welfare of its citizens. The interim ordinance may regulate, 
195.28 	restrict, or prohibit any use, development, or subdivision within the jurisdiction or a portion 
195.29 	thereof for a period not to exceed one year from the date it is effective.
195.30 	(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities 
195.31 	relating to livestock production, a public hearing must be held following a ten-day notice 
195.32 	given by publication in a newspaper of general circulation in the municipality before the 
195.33 	interim ordinance takes effect.
196.1 	(c)(1) A statutory or home rule charter city may adopt an interim ordinance that regulates, 
196.2 	restricts, or prohibits a housing proposal only if the ordinance is approved by at least 
196.3 	two-thirds of city council members present.
196.4 	(2) Before adopting the interim ordinance, the city council must hold a public hearing 
196.5 	after providing written notice to any person who has submitted a housing proposal, has a 
196.6 	pending housing proposal, or has provided a written request to be notified of interim 
196.7 	ordinances related to housing proposals. The written notice must be provided at least three 
196.8 	business days before the public hearing. Notice also must be posted on the city's official 
196.9 	Web site, if the city has an official Web site.
196.10 	(3) The date of the public hearing shall be the earlier of the next regularly scheduled 
196.11 	city council meeting after the notice period or within ten days of the notice.
196.12 	(4) The activities proposed to be restricted by the proposed interim ordinance may not 
196.13 	be undertaken before the public hearing.
196.14 	(5) For the purposes of this paragraph, "housing proposal" means a written request for 
196.15 	city approval of a project intended primarily to provide residential dwellings, either single 
196.16 	family or multi-family, and involves the subdivision or development of land or the 
196.17 	demolition, construction, reconstruction, alteration, repair, or occupancy of residential 
196.18 	dwellings.
196.19 	(c) (d) The period of an interim ordinance applicable to an area that is affected by a city's 
196.20 	master plan for a municipal airport may be extended for such additional periods as the 
196.21 	municipality may deem appropriate, not exceeding a total additional period of 18 months. 
196.22 	In all other cases, no interim ordinance may halt, delay, or impede a subdivision that has 
196.23 	been given preliminary approval, nor may any interim ordinance extend the time deadline 
196.24 	for agency action set forth in section 15.99 with respect to any application filed prior to the 
196.25 	effective date of the interim ordinance. The governing body of the municipality may extend 
196.26 	the interim ordinance after a public hearing and written findings have been adopted based 
196.27 	upon one or more of the conditions in clause (1), (2), or (3). The public hearing must be 
196.28 	held at least 15 days but not more than 30 days before the expiration of the interim ordinance, 
196.29 	and notice of the hearing must be published at least ten days before the hearing. The interim 
196.30 	ordinance may be extended for the following conditions and durations, but, except as 
196.31 	provided in clause (3), an interim ordinance may not be extended more than an additional 
196.32 	18 months:
196.33 	(1) up to an additional 120 days following the receipt of the final approval or review by 
196.34 	a federal, state, or metropolitan agency when the approval is required by law and the review 
197.1 	or approval has not been completed and received by the municipality at least 30 days before 
197.2 	the expiration of the interim ordinance;
197.3 	(2) up to an additional 120 days following the completion of any other process required 
197.4 	by a state statute, federal law, or court order, when the process is not completed at least 30 
197.5 	days before the expiration of the interim ordinance; or
197.6 	(3) up to an additional one year if the municipality has not adopted a comprehensive 
197.7 	plan under this section at the time the interim ordinance is enacted.

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

197.10 	Sec. 3. Minnesota Statutes 2016, section 462A.201, subdivision 2, is amended to read:
197.11 		Subd. 2.Low-income housing. (a) The agency may use money from the housing trust 
197.12 	fund account to provide loans or grants for:
197.13 	(1) projects for the development, construction, acquisition, preservation, and rehabilitation 
197.14 	of low-income rental and limited equity cooperative housing units, including temporary 
197.15 	and transitional housing;
197.16 	(2) the costs of operating rental housing, as determined by the agency, that are unique 
197.17 	to the operation of low-income rental housing or supportive housing; and
197.18 	(3) rental assistance, either project-based or tenant-based; and
197.19 	(4) rental assistance to secure stable housing for families with children, or unaccompanied 
197.20 	homeless youth, eligible for enrollment in a prekindergarten through grade 12 academic 
197.21 	program.
197.22 	For purposes of this section, "transitional housing" has the meaning given by the United 
197.23 	States Department of Housing and Urban Development. Loans or grants for residential 
197.24 	housing for migrant farmworkers may be made under this section.
197.25 	(b) The housing trust fund account must be used for the benefit of persons and families 
197.26 	whose income, at the time of initial occupancy, does not exceed 60 percent of median income 
197.27 	as determined by the United States Department of Housing and Urban Development for the 
197.28 	metropolitan area. At least 75 percent of the funds in the housing trust fund account must 
197.29 	be used for the benefit of persons and families whose income, at the time of initial occupancy, 
197.30 	does not exceed 30 percent of the median family income for the metropolitan area as defined 
197.31 	in section 473.121, subdivision 2. For purposes of this section, a household with a housing 
198.1 	assistance voucher under Section 8 of the United States Housing Act of 1937, as amended, 
198.2 	is deemed to meet the income requirements of this section.
198.3 	The median family income may be adjusted for families of five or more.
198.4 	(c) Rental assistance under this section must be provided by governmental units which 
198.5 	administer housing assistance supplements or by for-profit or nonprofit organizations 
198.6 	experienced in housing management. Rental assistance shall be limited to households whose 
198.7 	income at the time of initial receipt of rental assistance does not exceed 60 percent of median 
198.8 	income, as determined by the United States Department of Housing and Urban Development 
198.9 	for the metropolitan area. Priority among comparable applications for tenant-based rental 
198.10 	assistance will be given to proposals that will serve households whose income at the time 
198.11 	of initial application for rental assistance does not exceed 30 percent of median income, as 
198.12 	determined by the United States Department of Housing and Urban Development for the 
198.13 	metropolitan area. Rental assistance must be terminated when it is determined that 30 percent 
198.14 	of a household's monthly income for four consecutive months equals or exceeds the market 
198.15 	rent for the unit in which the household resides plus utilities for which the tenant is 
198.16 	responsible. Rental assistance may only be used for rental housing units that meet the housing 
198.17 	maintenance code of the local unit of government in which the unit is located, if such a code 
198.18 	has been adopted, or the housing quality standards adopted by the United States Department 
198.19 	of Housing and Urban Development, if no local housing maintenance code has been adopted.
198.20 	(d) In making the loans or grants, the agency shall determine the terms and conditions 
198.21 	of repayment and the appropriate security, if any, should repayment be required. To promote 
198.22 	the geographic distribution of grants and loans, the agency may designate a portion of the 
198.23 	grant or loan awards to be set aside for projects located in specified congressional districts 
198.24 	or other geographical regions specified by the agency. The agency may adopt rules for 
198.25 	awarding grants and loans under this subdivision.

198.26 	Sec. 4. Minnesota Statutes 2016, section 462A.204, subdivision 8, is amended to read:
198.27 		Subd. 8.School stability. (a) The agency in consultation with the Interagency Task 
198.28 	Force Council on Homelessness may establish a school stability project under the family 
198.29 	homeless prevention and assistance program. The purpose of the project is to secure stable 
198.30 	housing for families with school-age children who have moved frequently and for 
198.31 	unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors 
198.32 	who are leaving foster care or juvenile correctional facilities, or minors who meet the 
198.33 	definition of a child in need of services or protection under section 260C.007, subdivision 
198.34 	6, but for whom no court finding has been made pursuant to that statute.
199.1 	(b) The agency shall make grants to family homeless prevention and assistance projects 
199.2 	in communities with a school or schools that have a significant degree of student mobility.
199.3 	(c) Each project must be designed to reduce school absenteeism; stabilize children in 
199.4 	one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each 
199.5 	project must include plans for the following:
199.6 	(1) targeting of families with children under age 12 who, in the last 12 months have 
199.7 	either: changed schools or homes at least once or been absent from school at least 15 percent 
199.8 	of the school year and who have either been evicted from their housing; who are eligible 
199.9 	for a prekindergarten through grade 12 academic program and are living in overcrowded 
199.10 	conditions in their current housing; or who are paying more than 50 percent of their income 
199.11 	for rent; or who lack a fixed, regular, and adequate nighttime residence;
199.12 	(2) targeting of unaccompanied youth in need of an alternative residential setting;
199.13 	(3) connecting families with the social services necessary to maintain the families' 
199.14 	stability in their home; and
199.15 	(4) one or more of the following:
199.16 	(i) provision of rental assistance for a specified period of time, which may exceed 24 
199.17 	months; or
199.18 	(ii) development of permanent supportive housing or transitional housing provision of 
199.19 	support and case management services to improve housing stability, including but not limited 
199.20 	to housing navigation and family outreach.
199.21 	(d) Notwithstanding subdivision 2, grants under this section may be used to acquire, 
199.22 	rehabilitate, or construct transitional or permanent housing In selecting projects for funding 
199.23 	under this subdivision, preference shall be given to organizations granted funding under 
199.24 	section 462A.201, subdivision 2, paragraph (a), clause (4), and groups working in 
199.25 	collaboration with such organizations.
199.26 	(e) Each grantee under the project must include representatives of the local school district 
199.27 	or targeted schools, or both, and of the local community correction agencies on its advisory 
199.28 	committee No grantee under this subdivision is required to have an advisory committee as 
199.29 	described in subdivision 6.

200.1 	Sec. 5. [462A.39] WORKFORCE HOUSING DEVELOPMENT PROGRAM.
200.2 		Subdivision 1.Establishment. The commissioner of Minnesota housing finance shall 
200.3 	establish a workforce housing development program to award grants or deferred loans to 
200.4 	eligible project areas to be used for qualified expenditures.
200.5 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
200.6 	meanings given.
200.7 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
200.8 	of the metropolitan area as defined in section 473.121, subdivision 2, with a population 
200.9 	exceeding 500; a community that has a combined population of 1,500 residents located 
200.10 	within 15 miles of a home rule charter or statutory city located outside the metropolitan 
200.11 	area as defined in section 473.121, subdivision 2; or an area served by a joint county-city 
200.12 	economic development authority.
200.13 	(c) "Joint county-city economic development authority" means an economic development 
200.14 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
200.15 	a city and county and excluding those established by the county only.
200.16 	(d) "Market rate residential rental properties" means properties that are rented at market 
200.17 	value, including new modular homes, new manufactured homes, and new manufactured 
200.18 	homes on leased land or in a manufactured home park, and excludes:
200.19 	(1) properties constructed with financial assistance requiring the property to be occupied 
200.20 	by residents that meet income limits under federal or state law of initial occupancy; and
200.21 	(2) properties constructed with federal, state, or local flood recovery assistance, regardless 
200.22 	of whether that assistance imposed income limits as a condition of receiving assistance.
200.23 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
200.24 	properties including acquisition of property; construction of improvements; and provisions 
200.25 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
200.26 	costs.
200.27 		Subd. 3.Application. The commissioner shall develop forms and procedures for soliciting 
200.28 	and reviewing application for grants or deferred loans under this section. At a minimum, a 
200.29 	city must include in its application a resolution of its governing body certifying that the 
200.30 	matching amount as required under this section is available and committed.
200.31 		Subd. 4.Program requirements. (a) The commissioner must not award a grant or 
200.32 	deferred loans to an eligible project area under this section until the following determinations 
200.33 	are made:
201.1 	(1) the average vacancy rate for rental housing located in the eligible project area, and 
201.2 	in any other city located within 15 miles or less of the boundaries of the area, has been five 
201.3 	percent or less for at least the prior two-year period;
201.4 	(2) one or more businesses located in the eligible project area, or within 25 miles of the 
201.5 	area, that employs a minimum of 20 full-time equivalent employees in aggregate have 
201.6 	provided a written statement to the eligible project area indicating that the lack of available 
201.7 	rental housing has impeded their ability to recruit and hire employees; and
201.8 	(3) the eligible project area has certified that the grants or deferred loans will be used 
201.9 	for qualified expenditures for the development of rental housing to serve employees of 
201.10 	businesses located in the eligible project area or surrounding area.
201.11 	(b) Preference for grants or deferred loans awarded under this section shall be given to 
201.12 	eligible project areas with less than 18,000 people.
201.13 		Subd. 5.Allocation. The amount of a grant or deferred loans may not exceed 25 percent 
201.14 	of the rental housing development project cost. The commissioner shall not award a grant 
201.15 	or deferred loans to a city without certification by the city that the amount of the grant or 
201.16 	deferred loans shall be matched by a local unit of government, business, or nonprofit 
201.17 	organization with $1 for every $2 provided in grant or deferred loans funds.
201.18 		Subd. 6.Report. Beginning January 15, 2018, the commissioner must annually submit 
201.19 	a report to the chairs and ranking minority members of the senate and house of representatives 
201.20 	committees having jurisdiction over taxes and workforce development specifying the projects 
201.21 	that received grants or deferred loans under this section and the specific purposes for which 
201.22 	the grant funds were used.

201.23 	Sec. 6. [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING 
201.24 	DEVELOPMENT.
201.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
201.26 	the meanings given to them.
201.27 	(b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
201.28 	(c) "Fund" means a local housing trust fund or a regional housing trust fund.
201.29 	(d) "Local government" means any statutory or home rule charter city or a county.
201.30 	(e) "Local housing trust fund" means a fund established by a local government with one 
201.31 	or more dedicated sources of public revenue for housing.
202.1 	(f) "Regional housing trust fund" means a fund established and administered under a 
202.2 	joint powers agreement entered into by two or more local governments with one or more 
202.3 	dedicated sources of public revenue for housing.
202.4 		Subd. 2.Creation and administration. (a) A local government may establish a local 
202.5 	housing trust fund by ordinance or participate in a joint powers agreement to establish a 
202.6 	regional housing trust fund.
202.7 	(b) A local or regional housing trust fund may be, but is not required to be, administered 
202.8 	through a nonprofit organization. If administered through a nonprofit organization, that 
202.9 	organization shall encourage private charitable donations to the fund.
202.10 		Subd. 3.Authorized expenditures. Money in a local or regional housing trust fund may 
202.11 	be used only to:
202.12 	(1) pay for administrative expenses, but not more than ten percent of the balance of the 
202.13 	fund may be spent on administration;
202.14 	(2) make grants, loans, and loan guarantees for the development, rehabilitation, or 
202.15 	financing of housing;
202.16 	(3) match other funds from federal, state, or private resources for housing projects; or
202.17 	(4) provide down payment assistance, rental assistance, and homebuyer counseling 
202.18 	services.
202.19 		Subd. 4.Funding. (a) A local government may finance its local or regional housing 
202.20 	trust fund with any money available to the local government, unless expressly prohibited 
202.21 	by state law. Sources of these funds include, but are not limited to:
202.22 	(1) donations;
202.23 	(2) bond proceeds;
202.24 	(3) grants and loans from a state, federal, or private source;
202.25 	(4) appropriations by a local government to the fund;
202.26 	(5) investment earnings of the fund; and
202.27 	(6) housing and redevelopment authority levies.
202.28 	(b) The local government may alter a source of funding for the local or regional housing 
202.29 	trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts 
202.30 	or expenditures authorized by the fund in its budget.
203.1 		Subd. 5.Reports. A local or regional housing trust fund established under this section 
203.2 	must report annually to the local government that created the fund. The local government 
203.3 	or governments must post this report on its public Web site.
203.4 		Subd. 6.Effect of legislation on existing local or regional housing trust funds. A 
203.5 	local or regional housing trust fund existing on the effective date of this section is not 
203.6 	required to alter the existing terms of its governing documents or take any additional 
203.7 	authorizing actions required by subdivision 2.

203.8 	Sec. 7. Minnesota Statutes 2016, section 473.145, is amended to read:
203.9 	473.145 DEVELOPMENT GUIDE.
203.10 	The Metropolitan Council shall prepare and adopt, after appropriate study and such 
203.11 	public hearings as may be necessary, a comprehensive development guide for the 
203.12 	metropolitan area. It shall consist of a compilation of policy statements, goals, standards, 
203.13 	programs, and maps prescribing guides for the orderly and economical development, public 
203.14 	and private, of the metropolitan area. The comprehensive development guide shall recognize 
203.15 	and encompass physical, social, or economic needs of the metropolitan area and those future 
203.16 	developments which will have an impact on the entire area including but not limited to such 
203.17 	matters as land use, parks and open space land needs, the necessity for and location of 
203.18 	airports, highways, transit facilities, public hospitals, libraries, schools, and other public 
203.19 	buildings. Notwithstanding any council action to adopt it, a plan or plan element relating 
203.20 	to housing does not take effect until a law is enacted approving the plan.

203.21 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
203.22 	final enactment and applies to plans adopted before, on, or after that date. This section 
203.23 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

203.24 	Sec. 8. Minnesota Statutes 2016, section 473.254, subdivision 2, is amended to read:
203.25 		Subd. 2.Affordable, life-cycle goals. The council shall negotiate with each municipality 
203.26 	to establish affordable and life-cycle housing goals for that municipality that are consistent 
203.27 	with and promote the policies of the Metropolitan Council as provided in the adopted 
203.28 	Metropolitan Development Guide. The council shall adopt, by resolution after a public 
203.29 	hearing, the negotiated affordable and life-cycle housing goals for each municipality by 
203.30 	January 15, 1996, and by January 15 in each succeeding year for each municipality newly 
203.31 	electing to participate in the program or for each municipality with which new housing 
203.32 	goals have been negotiated. By June 30, 1996, and by June 30 in each succeeding year for 
203.33 	each municipality newly electing to participate in the program or for each municipality with 
204.1 	which new housing goals have been negotiated, each municipality shall identify to the 
204.2 	council the actions it plans to take to meet the established housing goals.
204.3 	Beginning in 2018, the negotiated affordable and life-cycle housing goals for each 
204.4 	municipality must be submitted by January 15 each year to the chairs and ranking minority 
204.5 	members of the legislative committees with jurisdiction over the Metropolitan Council and 
204.6 	housing policy and finance, and may be adopted by the council only after a law is enacted 
204.7 	approving them or the legislature has adjourned its regular session for that calendar year 
204.8 	without taking any action on the matter.

204.9 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
204.10 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
204.11 	Scott, and Washington.

204.12 	Sec. 9. Minnesota Statutes 2016, section 473.254, subdivision 3a, is amended to read:
204.13 		Subd. 3a.Affordable, life-cycle housing opportunities amount. (a) Each municipality's 
204.14 	"affordable and life-cycle housing opportunities amount" for that year must be determined 
204.15 	annually by the council using the method in this subdivision. The affordable and life-cycle 
204.16 	housing opportunities amount must be determined for each calendar year for all municipalities 
204.17 	in the metropolitan area.
204.18 	(b) The council must allocate to each municipality its portion of the $1,000,000 of the 
204.19 	revenue generated by the levy authorized in section 473.249 which is credited to the local 
204.20 	housing incentives account pursuant to subdivision 5, paragraph (b). The allocation must 
204.21 	be made by determining the amount levied for and payable in each municipality in the 
204.22 	previous calendar year pursuant to the council levy in section 473.249 divided by the total 
204.23 	amount levied for and payable in the metropolitan area in the previous calendar year pursuant 
204.24 	to such levy and multiplying that result by $1,000,000.
204.25 	(c) The council must also determine the amount levied for and payable in each 
204.26 	municipality in the previous calendar year pursuant to the council levy in section 473.253, 
204.27 	subdivision 1.
204.28 	(d) A municipality's affordable and life-cycle housing opportunities amount for the 
204.29 	calendar year is the sum of the amounts determined under paragraphs (b) and (c).
204.30 	(e) The council must report to the chairs and ranking minority members of the legislative 
204.31 	committees with jurisdiction over the Metropolitan Council and housing policy and finance 
204.32 	by March 15 each year the council's estimated amount under paragraph (d). The legislature 
204.33 	may approve, modify, or reject the amounts the council will use in paragraph (f). If no law 
205.1 	is enacted to approve, modify, or reject the amounts during the regular legislative session 
205.2 	for that calendar year, the council may proceed with its proposed amounts.
205.3 	(e) (f) By August 1 of each year, the council must notify each municipality of its 
205.4 	affordable and life-cycle housing opportunities amount for the following calendar year 
205.5 	determined by the method in this subdivision.

205.6 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
205.7 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
205.8 	Scott, and Washington.

205.9 	Sec. 10. [474A.22] WORKFORCE HOUSING, TAX-EXEMPT BONDING 
205.10 	ALLOCATION.
205.11 		Subdivision 1.Definitions. In addition to the definitions in section 474A.02, for the 
205.12 	purposes of this section, the following terms have the meanings given them:
205.13 	(1) "aggregate bond limitation" means 55 percent of the reasonably expected aggregate 
205.14 	basis of the project and the land on which the project is located;
205.15 	(2) "AMI" means the area median income as published by the Department of Housing 
205.16 	and Urban Development, adjusted for household size; and
205.17 	(3) "workforce housing" means a multifamily housing project in which, for a period of 
205.18 	at least 15 years following completion, at least 80 percent of rental units are occupied or 
205.19 	held for occupancy by persons or families whose adjusted income does not exceed 60 percent 
205.20 	of AMI and at least 80 percent of rental units in the project are rent restricted in an amount 
205.21 	of 30 percent to 60 percent of AMI.
205.22 		Subd. 2.No single-family set aside for two years. Notwithstanding section 474A.03, 
205.23 	subdivision 1, clause (2), the commissioner of management and budget shall not set aside 
205.24 	any of the housing pool for single-family housing programs prior to December 31, 2019.
205.25 		Subd. 3.Additional application requirements. In addition to any other application 
205.26 	requirements for an allocation under sections 474A.061, subdivision 1, and 474A.091, 
205.27 	subdivision 2, for a residential rental project, an applicant must provide a statement as to:
205.28 	(1) whether the project owner intends to apply for and receive low-income housing tax 
205.29 	credits for the project under section 42 of the Internal Revenue Code of 1986, as amended, 
205.30 	from the applicable allocating agency;
205.31 	(2) whether the proposed residential rental project meets the definition of workforce 
205.32 	housing; and
206.1 	(3) whether the aggregate of the amount of tax-exempt bonds previously allocated to a 
206.2 	project under section 474A.061 or 474A.091, if any, and the amount of bonds requested in 
206.3 	the application for that same project exceeds the aggregate bond limitation.
206.4 		Subd. 4.Re-prioritized housing pool allocations. Notwithstanding section 474A.061, 
206.5 	subdivision 2a, paragraph (a), commencing on the second Tuesday in January and continuing 
206.6 	on each Monday through July 15, the commissioner shall allocate available bonding authority 
206.7 	from the housing pool to applications received on or before the Monday of the preceding 
206.8 	week for residential rental projects that meet the eligibility criteria under section 474A.047, 
206.9 	and after the second Tuesday in January through July 15, for single-family housing programs. 
206.10 	Allocations of available bonding authority from the housing pool for eligible uses shall be 
206.11 	awarded in the following order of priority:
206.12 	(1) residential rental projects that preserve existing federally subsidized housing and the 
206.13 	aggregate amount of bonds requested in the application and any previous allocation of bonds 
206.14 	do not exceed the aggregate bond limitation;
206.15 	(2) residential rental projects that:
206.16 	(i) intend to apply for and receive low-income housing tax credits under section 42 of 
206.17 	the Internal Revenue Code and meet the definition of workforce housing; and
206.18 	(ii) the aggregate amount of bonds requested in the application and any previous allocation 
206.19 	of bonds to the project do not exceed the aggregate bond limitation;
206.20 	(3) other residential rental projects that intend to apply for and receive low-income 
206.21 	housing tax credits under section 42 of the Internal Revenue Code;
206.22 	(4) single-family housing programs described in section 474A.061, subdivision 2a, 
206.23 	paragraph (b); and
206.24 	(5) other residential rental projects.
206.25 	If there are two or more applications for residential rental projects from the housing pool 
206.26 	with equal priority and there is insufficient bonding authority to provide allocations for all 
206.27 	residential rental projects in any one allocation period, the available bonding authority shall 
206.28 	be awarded by lot including a partial allocation until all remaining bonding authority is 
206.29 	allocated unless otherwise agreed to by the respective issuers. If a residential rental project 
206.30 	receives some, but less than the requested amount of allocation contained in its application, 
206.31 	and the project applies in the future to the housing pool for additional allocation of bonds, 
206.32 	the project shall be fully funded up to its original application request for bonding authority 
206.33 	before any new project, applying in the same allocation period, that has an equal priority 
207.1 	shall receive bonding authority. If an issuer that receives an allocation under this paragraph 
207.2 	does not issue obligations equal to all or a portion of the allocation received within 120 days 
207.3 	of the allocation or returns the allocation to the commissioner, the amount of the allocation 
207.4 	is canceled and returned for reallocation through the housing pool or to the unified pool 
207.5 	after July 15.
207.6 	(b) Subject to paragraph (a), the commissioner shall otherwise follow the provisions of 
207.7 	section 474A.061.
207.8 		Subd. 5.Re-prioritized unified pool allocation. (a) Notwithstanding section 474A.091, 
207.9 	subdivision 3, paragraph (f), if there are two or more applications for residential rental 
207.10 	projects from the unified pool and there is insufficient bonding authority to provide 
207.11 	allocations for all residential rental projects in any one allocation period, the available 
207.12 	bonding authority shall be awarded in the following order of priority:
207.13 	(1) residential rental projects that preserve existing federally subsidized housing and the 
207.14 	aggregate amount of bonds requested in the application and any previous allocation of bonds 
207.15 	do not exceed the aggregate bond limitation;
207.16 	(2) residential rental projects that:
207.17 	(i) intend to apply for and receive low-income housing tax credits under section 42 of 
207.18 	the Internal Revenue Code and meet the definition of workforce housing; and
207.19 	(ii) the aggregate amount of bonds requested in the application and any previous allocation 
207.20 	of bonds to that same project do not exceed the aggregate bond limitation;
207.21 	(3) other residential rental projects that intend to apply for and receive low-income 
207.22 	housing tax credits under section 42 of the Internal Revenue Code; and
207.23 	(4) other residential rental projects.
207.24 	If there are two or more applications for residential rental projects from the unified pool 
207.25 	with equal priority and there is insufficient bonding authority to provide allocations for all 
207.26 	residential rental projects in any one allocation period, the available bonding authority shall 
207.27 	be awarded by lot including a partial allocation until all remaining bonding authority is 
207.28 	allocated unless otherwise agreed to by the respective issuers. If a residential rental project 
207.29 	receives some, but less than the requested amount of allocation contained in its application, 
207.30 	and the project applies in the future to the unified pool for additional allocation of bonds, 
207.31 	the project shall be fully funded up to its original application request for bonding authority 
207.32 	before any new residential project, applying in the same allocation period, that has an equal 
207.33 	priority shall receive bonding authority.
208.1 	(b) Notwithstanding section 474A.091, subdivision 3, paragraph (g), the reservation 
208.2 	within the unified pool for small issue bonds is from the first Monday in August through 
208.3 	the last Monday in October.
208.4 		Subd. 6.Mortgage bonds. Notwithstanding section 474A.091, subdivision 3a, paragraph 
208.5 	(a), bonding authority remaining in the unified pool on October 1 is available for 
208.6 	single-family housing programs only for cities that applied in January and received an 
208.7 	allocation under section 474A.061, subdivision 2a, in the same calendar year. The Minnesota 
208.8 	Housing Finance Agency shall receive an allocation for mortgage bonds pursuant to this 
208.9 	section, minus any amounts for a city or consortium that intends to issue bonds on its own 
208.10 	behalf under paragraph (c).
208.11 		Subd. 7.Unified pool allocation plan. (a) By January 15 of each year, the commissioner 
208.12 	of the Minnesota Housing Finance Agency shall annually prepare a tax-exempt bond 
208.13 	allocation plan that identifies:
208.14 	(1) the amount of tax-exempt bonds allocated to the Minnesota Housing Finance Agency 
208.15 	during the previous calendar year;
208.16 	(2) whether or not the Minnesota Housing Finance Agency intends to carry forward 
208.17 	such bonds not otherwise allocated in the previous year as qualified residential rental bonds 
208.18 	or qualified mortgage bonds or mortgage credit certificates consistent with the requirements 
208.19 	of Internal Revenue Service Form 8328; and
208.20 	(3) the carryforward balance of any tax-exempt bonds allocated to the Minnesota Housing 
208.21 	Finance Agency including those bonds carried forward as qualified residential rental bonds 
208.22 	and qualified mortgage bonds or mortgage credit certificates.
208.23 	(b) Prior to January 15 of each year, the Minnesota Housing Finance Agency must post 
208.24 	on its official Web site the plan under paragraph (a) and invite public comment until February 
208.25 	1. The Minnesota Housing Finance Agency shall not file the Internal Revenue Service Form 
208.26 	8328 until the public comment period has closed on February 1 unless otherwise required 
208.27 	by federal law.

208.28 	EFFECTIVE DATE. This section is effective July 1, 2017, and subdivision 2 expires 
208.29 	December 31, 2019.

208.30 	Sec. 11. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special 
208.31 	Session chapter 1, article 7, section 1, and Laws 2016, chapter 189, article 7, section 42, is 
208.32 	amended to read:
208.33 	Sec. 13. EFFECTIVE DATE.
 209.1 	Sections 1 to 3 and 6 to 11 are effective July 1, 2017 2036. Sections 4, 5, and 12 are 
209.2 	effective July 1, 2014.

209.3 	Sec. 12. AGENCY ACTIVITY AND EXPENDITURE REPORTS.
 209.4 	(a) The commissioners of employment and economic development, housing finance, 
209.5 	labor and industry, and commerce, as well as the Public Utilities Commission, must each 
209.6 	submit a report, as described in paragraph (b), to the chairs and ranking minority members 
209.7 	of the house of representatives and senate committees and divisions with jurisdiction over 
209.8 	their budget appropriations by October 15, 2018.
209.9 	(b) The reports must include:
209.10 	(1) the number of employees in each operational division and descriptions of the work 
209.11 	of each employee;
209.12 	(2) a description of the responsibilities that fall under each operational division;
209.13 	(3) a detailed list of the source of all revenue, including any fees, taxes, or other revenues 
209.14 	collected, as well as details of base budgets, including all prior appropriation riders;
209.15 	(4) how much of each budgetary division appropriation passes through as grants, as well 
209.16 	as the costs related to each grant program;
209.17 	(5) a detailed description of the costs related to each budgetary division, as well as the 
209.18 	statutory authority under which those costs are allocated; and
209.19 	(6) the statutory authority for all expenditures.

209.20 	Sec. 13. HOUSING FINANCE AGENCY ADMINISTRATIVE COSTS.
 209.21 	The cost of administering programs operated by the Housing Finance Agency that are 
209.22 	funded by the general fund or other resources, including bonds and federal funding, must 
209.23 	not be higher than the amount expended for direct or indirect administrative costs in fiscal 
209.24 	year 2017. The Housing Finance Agency must not have more full-time equivalent positions 
209.25 	than the number of full-time equivalent positions at the Housing Finance Agency on June 
209.26 	30, 2017.

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

APPENDIX 

Repealed Minnesota Statutes: UES1937-2 

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: UES1937-2 

Laws 2005, chapter 112, article 1, section 14
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
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).