1.1 	A bill for an act
1.2 	relating to state government; making policy and technical changes to various 
1.3 	agriculture-related provisions including provisions related to agriculture finance; 
1.4 	establishing a rural energy feasibility loan program; requiring approval of certain 
1.5 	proposed rules; authorizing the sale of certain bonds; modifying environmental, 
1.6 	natural resource, and game and fish provisions; modifying Water Law; modifying 
1.7 	Clean Water Legacy Act; modifying solid waste provisions; modifying certain 
1.8 	penalties; modifying requirements for fencing abandoned mines; creating accounts; 
1.9 	providing for disposition of certain receipts; requiring rulemaking; making changes 
1.10 	to energy provisions; authorizing carbon reduction facilities; modifying the 
1.11 	renewable development account; establishing grant programs; regulating modular 
1.12 	and manufactured homes; requiring legislative review of certain rules; modifying 
1.13 	housing bond allocation; modifying the minimum wage for employees receiving 
1.14 	gratuities; making OSHA federal conformity changes; authorizing management 
1.15 	of Lake Winona; modifying the taconite economic development fund; increasing 
1.16 	certain local government borrowing limits; approving transfers of money from 
1.17 	certain accounts; requiring enhanced cybersecurity; establishing principles for 
1.18 	districting; establishing the Legislative Budget Office Oversight Commission; 
1.19 	establishing provisions for the Legislative Budget Office; modifying provisions 
1.20 	for the operations of state government; modifying provisions for the state auditor, 
1.21 	governor's office, Office of Administrative Hearings, Metropolitan Council, and 
1.22 	attorney general; establishing emergency operations and continuity of government 
1.23 	plans; establishing an office to receive and investigate harassment, misconduct, 
1.24 	and discrimination claims; establishing Fort Snelling National Landmark 
1.25 	Redevelopment bonding authority; transferring certain duties of Minnesota 
1.26 	Management and Budget to the Legislative Budget Office; transferring duties for 
1.27 	data practices and open meeting law from the Department of Administration to 
1.28 	the Office of Administrative Hearings; requiring a report on valuation method of 
1.29 	pipeline operating property; establishing certain pension amounts for volunteer 
1.30 	firefighters relief association; approving submission of a bid to host a Nordic World 
1.31 	Cup Ski Championship; approving construction of additional veterans homes; 
1.32 	changing administrative rulemaking provisions; changing campaign finance 
1.33 	provisions; modifying provisions for Minnesota Sports Facilities Authority; 
1.34 	requiring reports; making technical changes; appropriating money for certain 
1.35 	agencies and reducing appropriations for certain agencies;amending Minnesota 
1.36 	Statutes 2016, sections 1.26, subdivisions 1, 2; 3.303, by adding a subdivision; 
1.37 	3.8841, subdivision 9; 8.065; 10A.01, subdivision 35; 10A.02, subdivisions 7, 13; 
1.38 	10A.31, subdivisions 1, 3, 4, 5, 7, 10, 10b; 10A.315; 10A.321, subdivision 1; 
1.39 	12.09, subdivision 2; 12.21, subdivision 3; 13.02, by adding subdivisions; 13.072; 
2.1 	13.08, subdivision 4; 13.085, subdivisions 2, 3, 4, 5, 6, by adding a subdivision; 
2.2 	13.55, subdivisions 1, 2; 13.64, by adding a subdivision; 13.685; 13D.06, 
2.3 	subdivision 4; 14.03, subdivision 3; 14.127, subdivision 4; 14.381, by adding a 
2.4 	subdivision; 16A.013, by adding a subdivision; 16A.11, subdivision 1, by adding 
2.5 	a subdivision; 16A.965, by adding a subdivision; 16D.09; 16E.016; 16E.03, 
2.6 	subdivisions 4, 7, by adding a subdivision; 18C.425, subdivision 6; 18C.80, 
2.7 	subdivision 2; 28A.16; 41A.15, subdivision 10, by adding a subdivision; 41A.16, 
2.8 	subdivisions 1, 2; 41A.17, subdivision 1; 41A.18, subdivision 1; 41B.056, 
2.9 	subdivision 2; 41B.06; 84.0895, subdivision 2; 84.775, subdivision 1; 84.83, 
2.10 	subdivision 3; 84.86, subdivision 1; 84.928, subdivision 2; 86B.005, subdivision 
2.11 	8a; 86B.532, subdivision 1; 88.10, by adding a subdivision; 88.75, subdivision 1; 
2.12 	89.551; 97A.051, subdivision 2; 97A.433, subdivisions 4, 5; 97A.56, subdivision 
2.13 	2; 97B.015, subdivision 6; 97B.081, subdivision 3; 97B.1055; 97C.345, subdivision 
2.14 	3a; 103B.3369, subdivisions 5, 9, by adding a subdivision; 103B.801, subdivisions 
2.15 	2, 5; 103E.021, subdivision 6; 103E.071; 103G.2242, subdivision 14; 103G.287, 
2.16 	by adding a subdivision; 103H.275, subdivision 1; 114D.15, subdivisions 7, 11, 
2.17 	13, by adding subdivisions; 114D.20, subdivisions 2, 3, 5, 7, by adding 
2.18 	subdivisions; 114D.26; 114D.35, subdivisions 1, 3; 115.03, subdivisions 1, 5; 
2.19 	115.035; 115.77, subdivision 1; 115.84, subdivisions 2, 3; 115A.51; 115A.94, 
2.20 	subdivisions 2, 4a, 4b, 4c, 4d, 5, by adding subdivisions; 116.07, by adding a 
2.21 	subdivision; 116.155, subdivision 1, by adding subdivisions; 116.993, subdivisions 
2.22 	2, 6; 116J.394; 116J.395, subdivisions 2, 5, 7; 155A.23, subdivision 8; 155A.25, 
2.23 	subdivision 1a; 155A.28, by adding a subdivision; 155A.29, subdivisions 1, 6; 
2.24 	177.24, subdivision 1; 180.03, subdivisions 2, 3, 4; 180.10; 182.666, subdivisions 
2.25 	1, 2, 3, 4, 5, by adding a subdivision; 216A.03, by adding a subdivision; 216B.16, 
2.26 	by adding a subdivision; 216E.03, subdivision 9; 216E.04, subdivision 7; 240.01, 
2.27 	by adding a subdivision; 240.02, subdivision 6; 240.08, subdivision 5; 240.131, 
2.28 	subdivision 7; 240.22; 270C.13, subdivision 1; 290.06, subdivision 23; 297A.994, 
2.29 	subdivision 4; 297E.021, subdivisions 3, 4; 298.28, subdivision 9a; 299D.085, by 
2.30 	adding a subdivision; 326B.805, subdivision 3; 326B.815, subdivision 1; 327.31, 
2.31 	by adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12, 13, by adding 
2.32 	a subdivision; 340A.404, subdivision 1; 340A.412, by adding a subdivision; 
2.33 	349A.06, subdivision 11; 352.01, subdivision 2a; 424B.20, subdivision 4; 444.075, 
2.34 	subdivision 1a; 462A.222, subdivision 3; 465.73; 473.121, subdivision 5a; 473.123, 
2.35 	subdivisions 1, 2a, 3a, 4, by adding subdivisions; 473.146, subdivisions 3, 4; 
2.36 	473.164; 473.565, subdivision 1; 473.755, subdivision 4; 473.763, subdivision 2; 
2.37 	473.8441, subdivision 4; 473J.03, by adding a subdivision; 473J.07, subdivisions 
2.38 	2, 3, 4, 7, 8, 9, by adding subdivisions; 473J.09, subdivision 13, by adding 
2.39 	subdivisions; 473J.13, subdivisions 2, 3; 473J.25, subdivision 3; 473J.27, 
2.40 	subdivision 2; 474A.02, by adding subdivisions; 474A.03, subdivision 1; 474A.04, 
2.41 	subdivision 1a; 474A.047, subdivisions 1, 2; 474A.061; 474A.062; 474A.091; 
2.42 	474A.131; 474A.14; 480.15, by adding a subdivision; Minnesota Statutes 2017 
2.43 	Supplement, sections 3.8853, subdivisions 1, 2, by adding subdivisions; 3.98, 
2.44 	subdivision 1; 6.481, subdivision 3; 15A.0815, subdivision 3; 16A.152, subdivision 
2.45 	2; 18C.70, subdivision 5; 18C.71, subdivision 4; 84.01, subdivision 6; 84.91, 
2.46 	subdivision 1; 84.925, subdivision 1; 84.9256, subdivision 1; 84D.03, subdivisions 
2.47 	3, 4; 84D.108, subdivisions 2b, 2c; 85.0146, subdivision 1; 97A.075, subdivision 
2.48 	1; 103G.271, subdivision 7; 116.07, subdivision 4d; 116.0714; 116C.779, 
2.49 	subdivision 1; 116C.7792; 169A.07; 216B.164, subdivision 5; 216B.1691, 
2.50 	subdivision 2f; 298.227; 477A.03, subdivision 2b; Laws 2010, chapter 361, article 
2.51 	4, section 78; Laws 2014, chapter 312, article 2, section 14, as amended; Laws 
2.52 	2015, First Special Session chapter 4, article 4, section 136, as amended; Laws 
2.53 	2016, chapter 189, article 3, sections 3, subdivision 5; 4; 48; Laws 2017, chapter 
2.54 	2, article 1, section 7, as amended; Laws 2017, chapter 88, article 1, section 2, 
2.55 	subdivisions 1, 2, 4, 5; Laws 2017, chapter 93, article 1, sections 3, subdivision 
2.56 	6; 4; article 2, sections 155, subdivision 5; 163; Laws 2017, chapter 94, article 1, 
2.57 	sections 2, subdivisions 2, as amended, 3; 4, subdivisions 3, 5; article 10, sections 
2.58 	28; 29; Laws 2017, First Special Session chapter 4, article 2, sections 1; 3; 58; 
3.1 	proposing coding for new law in Minnesota Statutes, chapters 2; 4; 5; 12; 13; 14; 
3.2 	41B; 43A; 84; 97A; 103G; 115; 115B; 116; 116C; 216B; 216C; 327; 383A; 473J; 
3.3 	474A; repealing Minnesota Statutes 2016, sections 3.93; 3.94; 3.95; 3.96; 8.10; 
3.4 	10A.30, subdivision 2; 10A.31, subdivisions 3a, 5a, 6, 6a; 13.02, subdivision 2; 
3.5 	14.381, subdivision 3; 137.50, subdivision 5; 155A.28, subdivisions 1, 3, 4; 177.24, 
3.6 	subdivision 2; 216B.2423; 471.9996, subdivision 2; 473.123, subdivision 3; 
3.7 	473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 
3.8 	473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 473.561; 
3.9 	473.564, subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; 473.595; 
3.10 	473.598; 473.599; 473.76; 473J.09, subdivision 14; Minnesota Statutes 2017 
3.11 	Supplement, section 3.98, subdivision 4; Laws 1994, chapter 628, article 1, section 
3.12 	8; Laws 2017, First Special Session chapter 4, article 2, section 59.
3.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.14 	ARTICLE 1
3.15 	AGRICULTURE APPROPRIATIONS

3.16 	Section 1. Laws 2017, chapter 88, article 1, section 2, subdivision 1, is amended to read:

3.183.17
	Subdivision 1.Total Appropriation
 	$
	53,096,000
	$
	53,148,000
53,395,000

3.19	Appropriations by Fund
	
3.20		2018
	2019
	
3.223.21
	General
	52,703,000
	52,751,000
52,998,000
	
3.23	Remediation
	393,000
	397,000
	
3.24 	The amounts that may be spent for each 
3.25 	purpose are specified in the following 
3.26 	subdivisions.

3.27 	Sec. 2. Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:

3.28	Subd. 2.Protection Services
 		17,821,000
		17,825,000

3.29	Appropriations by Fund
	
3.30		2018
	2019
	
3.31	General
	17,428,000
	17,428,000
	
3.32	Remediation
	393,000
	397,000
	
3.33 	(a) $25,000 the first year and $25,000 the 
3.34 	second year are to develop and maintain 
3.35 	cottage food license exemption outreach and 
3.36 	training materials.
3.37 	(b) $75,000 the first year and $75,000 the 
3.38 	second year are to coordinate the correctional 
4.1 	facility vocational training program and to 
4.2 	assist entities that have explored the feasibility 
4.3 	of establishing a USDA-certified or state 
4.4 	"equal to" food processing facility within 30 
4.5 	miles of the Northeast Regional Corrections 
4.6 	Center.
4.7 	(c) $125,000 the first year and $125,000 the 
4.8 	second year are for additional funding for the 
4.9 	noxious weed and invasive plant program. 
4.10 	These are onetime appropriations.
4.11 	(d) $250,000 the first year and $250,000 the 
4.12 	second year are for transfer to the pollinator 
4.13 	habitat and research account in the agricultural 
4.14 	fund. These are onetime transfers.
4.15 	(e) $393,000 the first year and $397,000 the 
4.16 	second year are from the remediation fund for 
4.17 	administrative funding for the voluntary 
4.18 	cleanup program.
4.19 	(f) $200,000 the first year and $200,000 the 
4.20 	second year are for the industrial hemp pilot 
4.21 	program under Minnesota Statutes, section 
4.22 	18K.09. These are onetime appropriations.
4.23 	(g) $175,000 the first year and $175,000 the 
4.24 	second year are for compensation for 
4.25 	destroyed or crippled livestock under 
4.26 	Minnesota Statutes, section 3.737. This 
4.27 	appropriation may be spent to compensate for 
4.28 	livestock that were destroyed or crippled 
4.29 	during fiscal year 2017. If the amount in the 
4.30 	first year is insufficient, the amount in the 
4.31 	second year is available in the first year. The 
4.32 	commissioner may use up to $5,000 of this 
4.33 	appropriation each year to reimburse expenses 
4.34 	incurred by university extension educators to 
5.1 	provide fair market values of destroyed or 
5.2 	crippled livestock.
5.3 	(h) $155,000 the first year and $155,000 the 
5.4 	second year are for compensation for crop 
5.5 	damage under Minnesota Statutes, section 
5.6 	3.7371. If the amount in the first year is 
5.7 	insufficient, the amount in the second year is 
5.8 	available in the first year. The commissioner 
5.9 	may use up to $30,000 of the appropriation 
5.10 	each year to reimburse expenses incurred by 
5.11 	the commissioner or the commissioner's 
5.12 	approved agent to investigate and resolve 
5.13 	claims.
5.14 	If the commissioner determines that claims 
5.15 	made under Minnesota Statutes, section 3.737
5.16 	or 3.7371, are unusually high, amounts 
5.17 	appropriated for either program may be 
5.18 	transferred to the appropriation for the other 
5.19 	program.
5.20 	(i) $250,000 the first year and $250,000 the 
5.21 	second year are to expand current capabilities 
5.22 	for rapid detection, identification, containment, 
5.23 	control, and management of high priority plant 
5.24 	pests and pathogens. These are onetime 
5.25 	appropriations.
5.26 	(j) $300,000 the first year and $300,000 the 
5.27 	second year are for transfer to the noxious 
5.28 	weed and invasive plant species assistance 
5.29 	account in the agricultural fund to award 
5.30 	grants to local units of government under 
5.31 	Minnesota Statutes, section 18.90, with 
5.32 	preference given to local units of government 
5.33 	responding to Palmer amaranth or other weeds 
5.34 	on the eradicate list. These are onetime 
5.35 	transfers.
6.1 	(k) $120,000 the first year and $120,000 the 
6.2 	second year are for wolf-livestock conflict 
6.3 	prevention grants under article 2, section 89. 
6.4 	The commissioner must submit a report to the 
6.5 	chairs and ranking minority members of the 
6.6 	legislative committees with jurisdiction over 
6.7 	agriculture policy and finance by January 15, 
6.8 	2020, on the outcomes of the wolf-livestock 
6.9 	conflict prevention grants and whether 
6.10 	livestock compensation claims were reduced 
6.11 	in the areas that grants were awarded. These 
6.12 	are onetime appropriations.

6.13 	Sec. 3. Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:

6.14
6.15	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		22,581,000
		22,636,000
	
6.16 	(a) $9,300,000 the first year and $9,300,000 
6.17 	the second year are for transfer to the 
6.18 	agriculture research, education, extension, and 
6.19 	technology transfer account under Minnesota 
6.20 	Statutes, section 41A.14, subdivision 3. Of 
6.21 	these amounts: at least $600,000 the first year 
6.22 	and $600,000 the second year are for the 
6.23 	Minnesota Agricultural Experiment Station's 
6.24 	agriculture rapid response fund under 
6.25 	Minnesota Statutes, section 41A.14, 
6.26 	subdivision 1, clause (2); $2,000,000 the first 
6.27 	year and $2,000,000 the second year are for 
6.28 	grants to the Minnesota Agriculture Education 
6.29 	Leadership Council to enhance agricultural 
6.30 	education with priority given to Farm Business 
6.31 	Management challenge grants; $350,000 the 
6.32 	first year and $350,000 the second year are 
6.33 	for potato breeding; and $450,000 the first 
6.34 	year and $450,000 the second year are for the 
6.35 	cultivated wild rice breeding project at the 
7.1 	North Central Research and Outreach Center 
7.2 	to include a tenure track/research associate 
7.3 	plant breeder. The commissioner shall transfer 
7.4 	the remaining funds in this appropriation each 
7.5 	year to the Board of Regents of the University 
7.6 	of Minnesota for purposes of Minnesota 
7.7 	Statutes, section 41A.14. Of the amount 
7.8 	transferred to the Board of Regents, up to 
7.9 	$1,000,000 each year is for research on avian 
7.10 	influenza, including prevention measures that 
7.11 	can be taken.
7.12 	To the extent practicable, funds expended 
7.13 	under Minnesota Statutes, section 41A.14, 
7.14 	subdivision 1, clauses (1) and (2), must 
7.15 	supplement and not supplant existing sources 
7.16 	and levels of funding. The commissioner may 
7.17 	use up to one percent of this appropriation for 
7.18 	costs incurred to administer the program.
7.19 	(b) $13,256,000 the first year and $13,311,000 
7.20 	the second year are for the agricultural growth, 
7.21 	research, and innovation program in 
7.22 	Minnesota Statutes, section 41A.12. Except 
7.23 	as provided below, the commissioner may 
7.24 	allocate the appropriation each year among 
7.25 	the following areas: facilitating the start-up, 
7.26 	modernization, or expansion of livestock 
7.27 	operations including beginning and 
7.28 	transitioning livestock operations; developing 
7.29 	new markets for Minnesota farmers by 
7.30 	providing more fruits, vegetables, meat, grain, 
7.31 	and dairy for Minnesota school children; 
7.32 	assisting value-added agricultural businesses 
7.33 	to begin or expand, access new markets, or 
7.34 	diversify; providing funding not to exceed 
7.35 	$250,000 each year for urban youth 
8.1 	agricultural education or urban agriculture 
8.2 	community development; providing funding 
8.3 	not to exceed $250,000 each year for the good 
8.4 	food access program under Minnesota 
8.5 	Statutes, section 17.1017; facilitating the 
8.6 	start-up, modernization, or expansion of other 
8.7 	beginning and transitioning farms including 
8.8 	by providing loans under Minnesota Statutes, 
8.9 	section 41B.056; sustainable agriculture 
8.10 	on-farm research and demonstration; 
8.11 	development or expansion of food hubs and 
8.12 	other alternative community-based food 
8.13 	distribution systems; enhancing renewable 
8.14 	energy infrastructure and use; crop research; 
8.15 	Farm Business Management tuition assistance; 
8.16 	good agricultural practices/good handling 
8.17 	practices certification assistance; establishing 
8.18 	and supporting farmer-led water management 
8.19 	councils; and implementing farmer-led water 
8.20 	quality improvement practices. The 
8.21 	commissioner may use up to 6.5 percent of 
8.22 	this appropriation for costs incurred to 
8.23 	administer the program.
8.24 	Of the amount appropriated for the agricultural 
8.25 	growth, research, and innovation program in 
8.26 	Minnesota Statutes, section 41A.12:
8.27 	(1) $1,000,000 the first year and $1,000,000 
8.28 	the second year are for distribution in equal 
8.29 	amounts to each of the state's county fairs to 
8.30 	preserve and promote Minnesota agriculture; 
8.31 	and
8.32 	(2) $1,500,000 the first year and $1,500,000 
8.33 	the second year are for incentive payments 
8.34 	under Minnesota Statutes, sections 41A.16, 
8.35 	41A.17, and 41A.18. Notwithstanding 
9.1 	Minnesota Statutes, section 16A.28, the first 
9.2 	year appropriation is available until June 30, 
9.3 	2019, and the second year appropriation is 
9.4 	available until June 30, 2020. If this 
9.5 	appropriation exceeds the total amount for 
9.6 	which all producers are eligible in a fiscal 
9.7 	year, the balance of the appropriation is 
9.8 	available for the agricultural growth, research, 
9.9 	and innovation program.; however, the 
9.10 	commissioner must first issue incentive 
9.11 	payments under Minnesota Statutes, section 
9.12 	41A.17, to facilities that otherwise satisfy the 
9.13 	criteria and requirements in that section but 
9.14 	began producing renewable chemical from 
9.15 	forestry biomass between January 1, 2013, 
9.16 	and January 1, 2015.
9.17 	The commissioner may use funds appropriated 
9.18 	under this subdivision to award up to two 
9.19 	value-added agriculture grants per year of up 
9.20 	to $1,000,000 per grant for new or expanding 
9.21 	agricultural production or processing facilities 
9.22 	that provide significant economic impact to 
9.23 	the region. The commissioner may use funds 
9.24 	appropriated under this subdivision for 
9.25 	additional value-added agriculture grants for 
9.26 	awards between $1,000 and $200,000 per 
9.27 	grant.
9.28 	Appropriations in clauses (1) and (2) are 
9.29 	onetime. Any unencumbered balance does not 
9.30 	cancel at the end of the first year and is 
9.31 	available for the second year. Notwithstanding 
9.32 	Minnesota Statutes, section 16A.28, 
9.33 	appropriations encumbered under contract on 
9.34 	or before June 30, 2019, for agricultural 
10.1 	growth, research, and innovation grants are 
10.2 	available until June 30, 20212022.
10.3 	The base budget for the agricultural growth, 
10.4 	research, and innovation program is 
10.5 	$14,275,000 for fiscal years 2020 and 2021 
10.6 	and includes funding for incentive payments 
10.7 	under Minnesota Statutes, sections 41A.16, 
10.8 	41A.17, 41A.18, and 41A.20.
10.9 	The commissioner must develop additional 
10.10 	innovative production incentive programs to 
10.11 	be funded by the agricultural growth, research, 
10.12 	and innovation program.
10.13 	The commissioner must consult with the 
10.14 	commissioner of transportation, the 
10.15 	commissioner of administration, and local 
10.16 	units of government to identify parcels of 
10.17 	publicly owned land that are suitable for urban 
10.18 	agriculture.
10.19 	(c) $25,000 the first year and $25,000 the 
10.20 	second year are for grants to the Southern 
10.21 	Minnesota Initiative Foundation to promote 
10.22 	local foods through an annual event that raises 
10.23 	public awareness of local foods and connects 
10.24 	local food producers and processors with 
10.25 	potential buyers.

10.26 	Sec. 4. Laws 2017, chapter 88, article 1, section 2, subdivision 5, is amended to read:

10.2810.27
	Subd. 5.Administration and Financial Assistance
 		8,698,000
		8,691,000
8,938,000
	
10.29 	(a) $474,000 the first year and $474,000 the 
10.30 	second year are for payments to county and 
10.31 	district agricultural societies and associations 
10.32 	under Minnesota Statutes, section 38.02, 
10.33 	subdivision 1. Aid payments to county and 
10.34 	district agricultural societies and associations 
11.1 	shall be disbursed no later than July 15 of each 
11.2 	year. These payments are the amount of aid 
11.3 	from the state for an annual fair held in the 
11.4 	previous calendar year.
11.5 	(b) $1,000 the first year and $1,000 the second 
11.6 	year are for grants to the Minnesota State 
11.7 	Poultry Association.
11.8 	(c) $18,000 the first year and $18,000 the 
11.9 	second year are for grants to the Minnesota 
11.10 	Livestock Breeders Association.
11.11 	(d) $47,000 the first year and $47,000 the 
11.12 	second year are for the Northern Crops 
11.13 	Institute. These appropriations may be spent 
11.14 	to purchase equipment.
11.15 	(e) $220,000 the first year and $220,000
11.16 	$250,000 the second year are for farm 
11.17 	advocate services.
11.18 	(f) $17,000 the first year and $17,000 the 
11.19 	second year are for grants to the Minnesota 
11.20 	Horticultural Society.
11.21 	(g) $108,000 the first year and $108,000 the 
11.22 	second year are for annual grants to the 
11.23 	Minnesota Turf Seed Council for basic and 
11.24 	applied research on: (1) the improved 
11.25 	production of forage and turf seed related to 
11.26 	new and improved varieties; and (2) native 
11.27 	plants, including plant breeding, nutrient 
11.28 	management, pest management, disease 
11.29 	management, yield, and viability. The grant 
11.30 	recipient may subcontract with a qualified 
11.31 	third party for some or all of the basic or 
11.32 	applied research. Any unencumbered balance 
11.33 	does not cancel at the end of the first year and 
12.1 	is available for the second year. These are 
12.2 	onetime appropriations.
12.3 	(h) $113,000 the first year and $113,000
12.4 	$330,000 the second year are for transfer to 
12.5 	the Board of Trustees of the Minnesota State 
12.6 	Colleges and Universities for statewide mental 
12.7 	health counseling support to farm families and 
12.8 	business operators through the Minnesota State 
12.9 	Agricultural Centers of Excellence. South 
12.10 	Central College and Central Lakes College
12.11 	shall serve as the fiscal agentagents.
12.12 	(i) $550,000 the first year and $550,000 the 
12.13 	second year are for grants to Second Harvest 
12.14 	Heartland on behalf of Minnesota's six 
12.15 	Feeding America food banks for the purchase 
12.16 	of milk for distribution to Minnesota's food 
12.17 	shelves and other charitable organizations that 
12.18 	are eligible to receive food from the food 
12.19 	banks. Milk purchased under the grants must 
12.20 	be acquired from Minnesota milk processors 
12.21 	and based on low-cost bids. The milk must be 
12.22 	allocated to each Feeding America food bank 
12.23 	serving Minnesota according to the formula 
12.24 	used in the distribution of United States 
12.25 	Department of Agriculture commodities under 
12.26 	The Emergency Food Assistance Program 
12.27 	(TEFAP). Second Harvest Heartland must 
12.28 	submit quarterly reports to the commissioner 
12.29 	on forms prescribed by the commissioner. The 
12.30 	reports must include, but are not limited to, 
12.31 	information on the expenditure of funds, the 
12.32 	amount of milk purchased, and the 
12.33 	organizations to which the milk was 
12.34 	distributed. Second Harvest Heartland may 
12.35 	enter into contracts or agreements with food 
13.1 	banks for shared funding or reimbursement of 
13.2 	the direct purchase of milk. Each food bank 
13.3 	receiving money from this appropriation may 
13.4 	use up to two percent of the grant for 
13.5 	administrative expenses. Any unencumbered 
13.6 	balance does not cancel at the end of the first 
13.7 	year and is available for the second year.
13.8 	(j) $1,100,000 the first year and $1,100,000 
13.9 	the second year are for grants to Second 
13.10 	Harvest Heartland on behalf of the six Feeding 
13.11 	America food banks that serve Minnesota to 
13.12 	compensate agricultural producers and 
13.13 	processors for costs incurred to harvest and 
13.14 	package for transfer surplus fruits, vegetables, 
13.15 	and other agricultural commodities that would 
13.16 	otherwise go unharvested, be discarded, or 
13.17 	sold in a secondary market. Surplus 
13.18 	commodities must be distributed statewide to 
13.19 	food shelves and other charitable organizations 
13.20 	that are eligible to receive food from the food 
13.21 	banks. Surplus food acquired under this 
13.22 	appropriation must be from Minnesota 
13.23 	producers and processors. Second Harvest 
13.24 	Heartland must report in the form prescribed 
13.25 	by the commissioner. Second Harvest 
13.26 	Heartland may use up to 15 percent of each 
13.27 	grant for matching administrative and 
13.28 	transportation expenses. Any unencumbered 
13.29 	balance does not cancel at the end of the first 
13.30 	year and is available for the second year.
13.31 	(k) $150,000 the first year and $150,000 the 
13.32 	second year are for grants to the Center for 
13.33 	Rural Policy and Development.
13.34 	(l) $235,000 the first year and $235,000 the 
13.35 	second year are for grants to the Minnesota 
14.1 	Agricultural Education and Leadership 
14.2 	Council for programs of the council under 
14.3 	Minnesota Statutes, chapter 41D.
14.4 	(m) $600,000 the first year and $600,000 the 
14.5 	second year are for grants to the Board of 
14.6 	Regents of the University of Minnesota to 
14.7 	develop, in consultation with the 
14.8 	commissioner of agriculture and the Board of 
14.9 	Animal Health, a software tool or application 
14.10 	through the Veterinary Diagnostic Laboratory 
14.11 	that empowers veterinarians and producers to 
14.12 	understand the movement of unique pathogen 
14.13 	strains in livestock and poultry production 
14.14 	systems, monitor antibiotic resistance, and 
14.15 	implement effective biosecurity measures that 
14.16 	promote animal health and limit production 
14.17 	losses. These are onetime appropriations.
14.18 	(n) $150,000 the first year is for the tractor 
14.19 	rollover protection pilot program under 
14.20 	Minnesota Statutes, section 17.119. This is a 
14.21 	onetime appropriation and is available until 
14.22 	June 30, 2019.
14.23 	(o) $400,000 the first year is for a grant to the 
14.24 	Board of Trustees of the Minnesota State 
14.25 	Colleges and Universities to expand and 
14.26 	renovate the GROW-IT Center at Metropolitan 
14.27 	State University. This is a onetime 
14.28 	appropriation.
14.29 	By January 15, 2018, the commissioner shall 
14.30 	submit a report to the chairs and ranking 
14.31 	minority members of the legislative 
14.32 	committees with jurisdiction over agricultural 
14.33 	policy and finance with a list of inspections 
14.34 	the department conducts at more frequent 
14.35 	intervals than federal law requires, an 
15.1 	explanation of why the additional inspections 
15.2 	are necessary, and provide recommendations 
15.3 	for eliminating any unnecessary inspections.

15.4 	Sec. 5. RURAL FINANCE AUTHORITY.
 15.5 		Subdivision 1.Appropriation. $35,000,000 is appropriated from the bond proceeds 
15.6 	fund to the Rural Finance Authority for the purposes set forth in the Minnesota Constitution, 
15.7 	article XI, section 5, paragraph (h), to purchase participation interests in or to make direct 
15.8 	agricultural loans to farmers under Minnesota Statutes, chapter 41B. This appropriation is 
15.9 	from the bond proceeds account in the rural finance administration fund and is for the 
15.10 	beginning farmer program under Minnesota Statutes, section 41B.039; the loan restructuring 
15.11 	program under Minnesota Statutes, section 41B.04; the seller-sponsored program under 
15.12 	Minnesota Statutes, section 41B.042; the agricultural improvement loan program under 
15.13 	Minnesota Statutes, section 41B.043; and the livestock expansion loan program under 
15.14 	Minnesota Statutes, section 41B.045. All debt service on bond proceeds used to finance 
15.15 	this appropriation must be repaid by the Rural Finance Authority under Minnesota Statutes, 
15.16 	section 16A.643. Loan participations must be priced to provide full interest and principal 
15.17 	coverage and a reserve for potential losses. Priority for loans must be given first to basic 
15.18 	beginning farmer loans, second to seller-sponsored loans, and third to agricultural 
15.19 	improvement loans.
15.20 		Subd. 2.Bond sale expenses. $35,000 is appropriated from the bond proceeds fund to 
15.21 	the commissioner of management and budget for bond sale expenses under Minnesota 
15.22 	Statutes, section 16A.641, subdivision 8.
15.23 		Subd. 3.Bond sale. To provide the money appropriated in this section from the bond 
15.24 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
15.25 	the state in an amount up to $35,035,000 in the manner, upon the terms, and with the effect 
15.26 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
15.27 	Constitution, article XI, sections 4 to 7.

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

15.29 	ARTICLE 2
15.30 	AGRICULTURE STATUTORY CHANGES

15.31 	Section 1. Minnesota Statutes 2016, section 18C.425, subdivision 6, is amended to read:
16.1 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
16.2 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
16.3 	pay the inspection fee to the commissioner.
16.4 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
16.5 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
16.6 	exempted under section 18C.421, subdivision 1, paragraph (b).
16.7 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
16.8 	amendments, or plant amendments sold and used in this state must pay an inspection fee of 
16.9 	39 cents per ton, and until June 30, 2019 2029, an additional 40 cents per ton, of fertilizer, 
16.10 	soil amendment, and plant amendment sold or distributed in this state, with a minimum of 
16.11 	$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit 
16.12 	all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and 
16.13 	education account in section 18C.80. Products sold or distributed to manufacturers or 
16.14 	exchanged between them are exempt from the inspection fee imposed by this subdivision 
16.15 	if the products are used exclusively for manufacturing purposes.
16.16 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
16.17 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
16.18 	of three years.

16.19 	Sec. 2. Minnesota Statutes 2017 Supplement, section 18C.70, subdivision 5, is amended 
16.20 	to read:
16.21 		Subd. 5.Expiration. This section expires June 30, 2020 2030.

16.22 	Sec. 3. Minnesota Statutes 2017 Supplement, section 18C.71, subdivision 4, is amended 
16.23 	to read:
16.24 		Subd. 4.Expiration. This section expires June 30, 2020 2030.

16.25 	Sec. 4. Minnesota Statutes 2016, section 18C.80, subdivision 2, is amended to read:
16.26 		Subd. 2.Expiration. This section expires June 30, 2020 2030.

16.27 	Sec. 5. Minnesota Statutes 2016, section 28A.16, is amended to read:
16.28 	28A.16 PERSONS SELLING LIQUOR.
16.29 	(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
16.30 	to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent 
17.1 	malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell 
17.2 	intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, 
17.3 	provided that these persons sell only ice manufactured and packaged by another, or bottled 
17.4 	or canned soft drinks and prepacked candy at retail.
17.5 	(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner 
17.6 	must exclude all gross sales of off-sale alcoholic beverages when determining the applicable 
17.7 	license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive 
17.8 	liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.

17.9 	Sec. 6. Minnesota Statutes 2016, section 41A.15, is amended by adding a subdivision to 
17.10 	read:
17.11 		Subd. 2e.Biomass. "Biomass" means any organic matter that is available on a renewable 
17.12 	or recurring basis, including agricultural crops and trees, wood and wood waste and residues, 
17.13 	plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic 
17.14 	portion of solid wastes.

17.15 	Sec. 7. Minnesota Statutes 2016, section 41A.15, subdivision 10, is amended to read:
17.16 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with biobased 
17.17 	content., polymer, monomer, plastic, or composite material that is entirely produced from 
17.18 	biomass.

17.19 	Sec. 8. Minnesota Statutes 2016, section 41A.16, subdivision 1, is amended to read:
17.20 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
17.21 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
17.22 	used to produce an advanced biofuel, except that, if a facility is sited 50 miles or less from 
17.23 	the state border, raw materials biomass used to produce an advanced biofuel may be sourced 
17.24 	from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from 
17.25 	within a 100-mile radius of the facility or from within Minnesota. Raw materials must be 
17.26 	from agricultural or forestry sources or from solid waste. The facility must be located in 
17.27 	Minnesota, must begin production at a specific location by June 30, 2025, and must not 
17.28 	begin operating above 23,750 MMbtu of quarterly advanced biofuel production before July 
17.29 	1, 2015. Eligible facilities include existing companies and facilities that are adding advanced 
17.30 	biofuel production capacity, or retrofitting existing capacity, as well as new companies and 
17.31 	facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible. 
18.1 	Eligible advanced biofuel facilities must produce at least 23,750 1,500 MMbtu of advanced 
18.2 	biofuel quarterly.
18.3 	(b) No payments shall be made for advanced biofuel production that occurs after June 
18.4 	30, 2035, for those eligible biofuel producers under paragraph (a).
18.5 	(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility 
18.6 	for payments under this section to an advanced biofuel facility at a different location.
18.7 	(d) A producer that ceases production for any reason is ineligible to receive payments 
18.8 	under this section until the producer resumes production.
18.9 	(e) Renewable chemical production for which payment has been received under section 
18.10 	41A.17, and biomass thermal production for which payment has been received under section 
18.11 	41A.18, are not eligible for payment under this section.
18.12 	(f) Biobutanol is eligible under this section.

18.13 	Sec. 9. Minnesota Statutes 2016, section 41A.16, subdivision 2, is amended to read:
18.14 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments to 
18.15 	eligible producers of advanced biofuel. The amount of the payment for each eligible 
18.16 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
18.17 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or,
18.18 	starch, oil, or animal fat at a specific location for ten years after the start of production.
18.19 	(b) Total payments under this section to an eligible biofuel producer in a fiscal year may 
18.20 	not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments 
18.21 	under this section to all eligible biofuel producers in a fiscal year may not exceed the amount 
18.22 	necessary for 17,100,000 MMbtu of biofuel production. The commissioner shall award 
18.23 	payments on a first-come, first-served basis within the limits of available funding.
18.24 	(c) For purposes of this section, an entity that holds a controlling interest in more than 
18.25 	one advanced biofuel facility is considered a single eligible producer.

18.26 	Sec. 10. Minnesota Statutes 2016, section 41A.17, subdivision 1, is amended to read:
18.27 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program section
18.28 	must source from Minnesota at least 80 percent biobased content from Minnesota. of the 
18.29 	biomass used to produce a renewable chemical, except that, if a facility is sited 50 miles or 
18.30 	less from the state border, biobased content mustbiomass used to produce a renewable 
18.31 	chemical may be sourced from outside of Minnesota, but only if at least 80 percent of the 
19.1 	biomass is sourced from within a 100-mile radius of the facility or from within Minnesota. 
19.2 	Biobased content must be from agricultural or forestry sources or from solid waste. The 
19.3 	facility must be located in Minnesota, must begin production at a specific location by June 
19.4 	30, 2025, and must not begin production of 750,000 250,000 pounds of chemicals quarterly 
19.5 	before January 1, 2015. Eligible facilities include existing companies and facilities that are 
19.6 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
19.7 	facilities. Eligible renewable chemical facilities must produce at least 750,000 250,000
19.8 	pounds of renewable chemicals quarterly. Renewable chemicals produced through processes 
19.9 	that are fully commercial before January 1, 2000, are not eligible.
19.10 	(b) No payments shall be made for renewable chemical production that occurs after June 
19.11 	30, 2035, for those eligible renewable chemical producers under paragraph (a).
19.12 	(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility 
19.13 	for payments under this section to a renewable chemical facility at a different location.
19.14 	(d) A producer that ceases production for any reason is ineligible to receive payments 
19.15 	under this section until the producer resumes production.
19.16 	(e) Advanced biofuel production for which payment has been received under section 
19.17 	41A.16, and biomass thermal production for which payment has been received under section 
19.18 	41A.18, are not eligible for payment under this section.

19.19 	Sec. 11. Minnesota Statutes 2016, section 41A.18, subdivision 1, is amended to read:
19.20 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
19.21 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
19.22 	used for biomass thermal production, except that, if a facility is sited 50 miles or less from 
19.23 	the state border, raw materials shouldbiomass used for biomass thermal production may 
19.24 	be sourced from outside of Minnesota, but only if at least 80 percent of the biomass is 
19.25 	sourced from within a 100-mile radius of the facility, or from within Minnesota. Raw 
19.26 	materials Biomass must be from agricultural or forestry sources. The facility must be located 
19.27 	in Minnesota, must have begun production at a specific location by June 30, 2025, and must 
19.28 	not begin before July 1, 2015. Eligible facilities include existing companies and facilities 
19.29 	that are adding production capacity, or retrofitting existing capacity, as well as new 
19.30 	companies and facilities. Eligible biomass thermal production facilities must produce at 
19.31 	least 250 MMbtu of biomass thermal quarterly.
19.32 	(b) No payments shall be made for biomass thermal production that occurs after June 
19.33 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
20.1 	(c) An eligible producer of biomass thermal production shall not transfer the producer's 
20.2 	eligibility for payments under this section to a biomass thermal production facility at a 
20.3 	different location.
20.4 	(d) A producer that ceases production for any reason is ineligible to receive payments 
20.5 	under this section until the producer resumes production.
20.6 	(e) Biofuel production for which payment has been received under section 41A.16, and 
20.7 	renewable chemical production for which payment has been received under section 41A.17, 
20.8 	are not eligible for payment under this section.

20.9 	Sec. 12. Minnesota Statutes 2016, section 41B.056, subdivision 2, is amended to read:
20.10 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
20.11 	(b) "Intermediary" means any lending institution or other organization of a for-profit or 
20.12 	nonprofit nature that is in good standing with the state of Minnesota that has the appropriate 
20.13 	business structure and trained personnel suitable to providing efficient disbursement of loan 
20.14 	funds and the servicing and collection of loans.
20.15 	(c) "Specialty crops" means crops produced in an aquaculture system and agricultural 
20.16 	crops, such as annuals, flowers, perennials, and other horticultural products, that are 
20.17 	intensively cultivated.
20.18 	(d) "Eligible livestock" means fish produced in an aquaculture system, beef cattle, dairy 
20.19 	cattle, swine, poultry, goats, mules, farmed Cervidae, Ratitae, bison, sheep, horses, and 
20.20 	llamas.

20.21 	Sec. 13. [41B.058] RURAL ENERGY FEASIBILITY PROGRAM.
20.22 		Subdivision 1.Establishment. The authority must establish a rural energy feasibility 
20.23 	loan program to provide feasibility study loans to farmers, local units of government, 
20.24 	municipalities, and nonprofit entities to explore feasibility of renewable energy projects.
20.25 		Subd. 2.Loan criteria. (a) The authority may impose a reasonable, nonrefundable 
20.26 	application fee for a rural energy feasibility loan. The authority may review the fee annually 
20.27 	and make adjustments as necessary. The initial application fee is $50. Application fees 
20.28 	received by the authority must be deposited in the Rural Finance Authority administrative 
20.29 	account established in section 41B.03.
20.30 	(b) Standards for loan amortization must be set by the authority and must not exceed 
20.31 	five years.
21.1 	(c) The borrower must demonstrate ability to repay the loan.
21.2 	(d) Loans under this program must be made using money in the revolving loan account 
21.3 	established in section 41B.06.
21.4 		Subd. 3.Loan participation. The authority may participate in a rural energy feasibility 
21.5 	loan with an eligible lender, as defined in section 41B.02, subdivision 8. Participation is 
21.6 	limited to 90 percent of the principal amount of the loan or $50,000 per project, whichever 
21.7 	is less.

21.8 	Sec. 14. Minnesota Statutes 2016, section 41B.06, is amended to read:
21.9 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
21.10 	There is established in the rural finance administration fund a Rural Finance Authority 
21.11 	revolving loan account that is eligible to receive appropriations and the transfer of loan 
21.12 	funds from other programs. All repayments of financial assistance granted from this account, 
21.13 	including principal and interest, must be deposited into this account. Interest earned on 
21.14 	money in the account accrues to the account, and the money in the account is appropriated 
21.15 	to the commissioner of agriculture for purposes of the Rural Finance Authority livestock 
21.16 	equipment, methane digester, disaster recovery, value-added agricultural product, 
21.17 	agroforestry, agricultural microloan, and farm opportunity loan, and rural energy feasibility
21.18 	programs, including costs incurred by the authority to establish and administer the programs.

21.19 	Sec. 15. Minnesota Statutes 2016, section 103H.275, subdivision 1, is amended to read:
21.20 		Subdivision 1.Areas where groundwater pollution is detected. (a) If groundwater 
21.21 	pollution is detected, a state agency or political subdivision that regulates an activity causing 
21.22 	or potentially causing a contribution to the pollution identified shall promote implementation 
21.23 	of best management practices to prevent or minimize the source of pollution to the extent 
21.24 	practicable.
21.25 	(b) The Pollution Control Agency, or for agricultural chemicals and practices, the 
21.26 	commissioner of agriculture may adopt water source protection requirements under 
21.27 	subdivision 2 that are consistent with the goal of section 103H.001 and are commensurate 
21.28 	with the groundwater pollution if the implementation of best management practices has 
21.29 	proven to be ineffective.
21.30 	(c) The water resources protection requirements must be:
21.31 	(1) designed to prevent and minimize the pollution to the extent practicable;
22.1 	(2) designed to prevent the pollution from exceeding the health risk limits; and
22.2 	(3) submitted to the house of representatives and senate committees with jurisdiction 
22.3 	over the environment, natural resources, and agriculture.
22.4 	(d) The commissioner of agriculture shall not adopt water resource protection 
22.5 	requirements under subdivision 2 for nitrogen fertilizer unless the water resource protection 
22.6 	requirements are specifically approved by law.

22.7 	ARTICLE 3
22.8 	ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

22.9	Section 1. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
 	
22.10 	(a) The sums shown in the columns marked "Appropriations" are added to the 
22.11 	appropriations in Laws 2017, chapter 93, article 1, to the agencies and for the purposes 
22.12 	specified in this article. The appropriations are from the general fund, or another named 
22.13 	fund, and are available for the fiscal years indicated for each purpose. The figures "2018" 
22.14 	and "2019" used in this article mean that the appropriations listed under them are available 
22.15 	for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first year" is 
22.16 	fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is fiscal years 2018 
22.17 	and 2019. Appropriations for the fiscal year ending June 30, 2018, are effective the day 
22.18 	following final enactment.
22.19 	(b) If an appropriation in this article is enacted more than once in the 2018 legislative 
22.20 	session, the appropriation must be given effect only once.

22.21				APPROPRIATIONS
	
22.22				Available for the Year
	
22.23				Ending June 30
	
22.24					2018
		2019

22.25	Sec. 2. POLLUTION CONTROL AGENCY
 	$
	-0-
	$
	199,000
	
22.26 	$199,000 the second year is from the 
22.27 	environmental fund for the voluntary 
22.28 	certification program for deicer applicators 
22.29 	under Minnesota Statutes, section 116.2025. 
22.30 	The base for fiscal year 2020 and later is 
22.31 	$184,000.

22.32	Sec. 3. NATURAL RESOURCES

23.1	Subdivision 1.Total Appropriation
 	$
	50,000
	$
	2,552,000

23.2	Appropriations by Fund
	
23.3		2018
	2019
	
23.4	General
	-0-
	750,000
	
23.5	Natural Resources
	-0-
	1,802,000
	
23.6	Game and Fish
	50,000
	-0-
	
23.7 	The amounts that may be spent for each 
23.8 	purpose are specified in the following 
23.9 	subdivisions.

23.10
23.11	Subd. 2.Land and Mineral Resources 
Management
 		-0-
		347,000
	
23.12 	$319,000 the second year is from the mineral 
23.13 	management account in the natural resources 
23.14 	fund for environmental research relating to 
23.15 	mine permitting, in consultation with the 
23.16 	Mineral Coordinating Committee.
23.17 	$28,000 the second year is from the land 
23.18 	acquisition account in the natural resources 
23.19 	fund to compensate the permanent school fund 
23.20 	for a road easement on school trust lands in 
23.21 	Sand Dunes State Forest. This appropriation 
23.22 	must be matched with nonstate money by 20 
23.23 	percent of the total cost of the easement. This 
23.24 	is a onetime appropriation.

23.25	Subd. 3.Ecological and Water Resources
 		$50,000
		-0-
	
23.26 	$50,000 the first year is from the heritage 
23.27 	enhancement account in the game and fish 
23.28 	fund to prepare a report on the actions 
23.29 	necessary to protect, restore, and enhance the 
23.30 	naturally occurring wild rice in the public 
23.31 	waters of Minnesota as required under this act. 
23.32 	This is a onetime appropriation and is 
23.33 	available until June 30, 2019.

23.34	Subd. 4.Parks and Trails Management
 		-0-
		1,415,000
	
24.1 	(a) $315,000 the second year is from the 
24.2 	natural resources fund for a grant to St. Louis 
24.3 	County to be used as a match to a state 
24.4 	bonding grant for trail and bridge construction 
24.5 	and for a maintenance fund for a five-mile 
24.6 	segment of the Voyageur Country ATV trail 
24.7 	system, including a multiuse bridge over the 
24.8 	Vermilion River that would serve ATVs, 
24.9 	snowmobiles, off-road vehicles, off-highway 
24.10 	motorcycles, and emergency vehicles in St. 
24.11 	Louis County. Of this amount, $285,000 is 
24.12 	from the all-terrain vehicle account, $15,000 
24.13 	is from the off-road vehicle account, and 
24.14 	$15,000 is from the off-highway motorcycle 
24.15 	account. This is a onetime appropriation and 
24.16 	is available until June 30, 2021.
24.17 	(b) $300,000 the second year is from the 
24.18 	natural resources fund for a grant to Lake 
24.19 	County to match other funding sources to 
24.20 	develop the Prospectors Loop trail system. Of 
24.21 	this amount, $270,000 is from the all-terrain 
24.22 	vehicle account, $15,000 is from the 
24.23 	off-highway motorcycle account, and $15,000 
24.24 	is from the off-road vehicle account. This is 
24.25 	a onetime appropriation and is available until 
24.26 	June 30, 2021.
24.27 	(c) $100,000 the second year is from the 
24.28 	all-terrain vehicle account in the natural 
24.29 	resources fund for wetland delineation and 
24.30 	work on an environmental assessment 
24.31 	worksheet for the Taconite State Trail from 
24.32 	Ely to Tower consistent with the 2017 
24.33 	Taconite State Trail Master Plan. This is a 
24.34 	onetime appropriation and is available until 
24.35 	June 30, 2021.
25.1 	(d) $100,000 the second year is from the 
25.2 	all-terrain vehicle account in the natural 
25.3 	resources fund for a grant to the city of 
25.4 	Virginia to develop, in cooperation with the 
25.5 	Quad Cities ATV Club, an all-terrain vehicle 
25.6 	trail system in the cities of Virginia, Eveleth, 
25.7 	Gilbert, and Mountain Iron and surrounding 
25.8 	areas. This is a onetime appropriation and is 
25.9 	available until June 30, 2021.
25.10 	(e) $200,000 the second year is from the 
25.11 	off-road vehicle account in the natural 
25.12 	resources fund for a contract with a project 
25.13 	administrator to assist the commissioner in 
25.14 	planning, designing, and providing a system 
25.15 	of state touring routes for off-road vehicles by 
25.16 	identifying sustainable, legal routes suitable 
25.17 	for licensed four-wheel drive vehicles and a 
25.18 	system of recreational trails for registered 
25.19 	off-road vehicles. This is a onetime 
25.20 	appropriation.
25.21 	(f) $200,000 the second year is appropriated 
25.22 	from the off-road vehicle account in the 
25.23 	natural resources fund for a contract to prepare 
25.24 	a comprehensive, statewide, strategic master 
25.25 	plan for trails for off-road vehicles. This is a 
25.26 	onetime appropriation. At a minimum, the 
25.27 	plan must:
25.28 	(1) identify opportunities to develop new, 
25.29 	high-quality, comprehensive trails for off-road 
25.30 	vehicles in a system that serves regional and 
25.31 	tourist destinations;
25.32 	(2) enhance connectivity with trails for 
25.33 	off-road vehicles, trails and parks for other 
25.34 	off-highway vehicles, and trails and parks for 
25.35 	other types of vehicles;
26.1 	(3) provide opportunities for new exposure 
26.2 	and economic development in greater 
26.3 	Minnesota;
26.4 	(4) help people connect with the outdoors in 
26.5 	a safe and environmentally sustainable 
26.6 	manner;
26.7 	(5) create new and support existing 
26.8 	opportunities for social, economic, and cultural 
26.9 	benefits and meaningful and mutually 
26.10 	beneficial relationships for users of off-road 
26.11 	vehicles and the communities that host trails 
26.12 	for off-road vehicles; and
26.13 	(6) require the commissioner to cooperate with 
26.14 	local governments, organizations, and other 
26.15 	interested partners.
26.16 	(g) $200,000 the second year is from the 
26.17 	off-road vehicle account in the natural 
26.18 	resources fund to reimburse federal, county, 
26.19 	and township entities for additional needs on 
26.20 	forest roads when the needs are a result of 
26.21 	increased use by off-road vehicles and are 
26.22 	attributable to a border-to-border touring route 
26.23 	established by the commissioner. This 
26.24 	paragraph does apply to roads that are operated 
26.25 	by a public road authority as defined in 
26.26 	Minnesota Statutes, section 160.02, 
26.27 	subdivision 25. This is a onetime appropriation 
26.28 	and is available until June 30, 2023. To be 
26.29 	eligible for reimbursement under this 
26.30 	paragraph, the claimant must demonstrate that 
26.31 	the needs result from additional traffic 
26.32 	generated by the border-to-border touring 
26.33 	route.

26.34	Subd. 5.Fish and Wildlife Management
 		-0-
		650,000
	
27.1 	(a) $650,000 the second year is for wildlife 
27.2 	disease surveillance and response. This is a 
27.3 	onetime appropriation.
27.4 	(b) The commissioner may use up to $7,000 
27.5 	of the amount appropriated from the general 
27.6 	fund in Laws 2017, chapter 93, article 1, 
27.7 	section 3, subdivision 8, to cover the cost of: 
27.8 	(1) the redesign of the printed and digital 
27.9 	versions of fishing regulations and hunting 
27.10 	and trapping regulations; and (2) the 
27.11 	reprogramming of the electronic licensing 
27.12 	system, to conform to the requirements of 
27.13 	providing voter registration information under 
27.14 	Minnesota Statutes, section 97A.409.

27.15	Subd. 6.Enforcement
 		-0-
		140,000
	
27.16 	(a) $100,000 the second year is for responding 
27.17 	to escaped animals from Cervidae farms, 
27.18 	including inspection of farmed Cervidae, 
27.19 	farmed Cervidae facilities, and farmed 
27.20 	Cervidae records when the commissioner has 
27.21 	reasonable suspicion that laws protecting 
27.22 	native wild animals have been violated. This 
27.23 	is a onetime appropriation.
27.24 	(b) $40,000 the second year is from the 
27.25 	all-terrain vehicle account in the natural 
27.26 	resources fund to develop a voluntary online 
27.27 	youth all-terrain vehicle training program 
27.28 	under Minnesota Statutes, section 84.925, 
27.29 	subdivision 1. This is a onetime appropriation.

27.30
27.31	Sec. 4. NATURAL RESOURCES DAMAGES 
ACCOUNT TRANSFER
 					
27.32 	By June 30, 2018, any money in the general 
27.33 	portion of the remediation fund dedicated for 
27.34 	the purposes of the natural resources damages 
28.1 	account must be transferred to the natural 
28.2 	resources damages account.

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

28.4 	Sec. 5. Laws 2010, chapter 361, article 4, section 78, is amended to read:
28.5 	Sec. 78. APPROPRIATION; MOOSE TRAIL.
 28.6 	$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources 
28.7 	from the all-terrain vehicle account in the natural resources fund for a grant to the city of 
28.8 	Hoyt Lakes to convert the Moose Trail snowmobile trail to for a dual usage trail, so that it 
28.9 	may also be used as an off-highway vehicle trail connecting the city of Biwabik to the Iron 
28.10 	Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation and is available 
28.11 	until spent June 30, 2020.

28.12 	Sec. 6. Laws 2016, chapter 189, article 3, section 3, subdivision 5, is amended to read:

28.13	Subd. 5.Parks and Trails Management
 		-0-
		6,459,000

28.14	Appropriations by Fund
	
28.15		2016
	2017
	
28.16	General
	-0-
	2,929,000
	
28.17	Natural Resources
	-0-
	3,530,000
	
28.18 	$2,800,000 the second year is a onetime 
28.19 	appropriation.
28.20 	$2,300,000 the second year is from the state 
28.21 	parks account in the natural resources fund. 
28.22 	Of this amount, $1,300,000 is onetime, of 
28.23 	which $1,150,000 is for strategic park 
28.24 	acquisition.
28.25 	$20,000 the second year is from the natural 
28.26 	resources fund to design and erect signs 
28.27 	marking the David Dill trail designated in this 
28.28 	act. Of this amount, $10,000 is from the 
28.29 	snowmobile trails and enforcement account 
28.30 	and $10,000 is from the all-terrain vehicle 
28.31 	account. This is a onetime appropriation.
29.1 	$100,000 the second year is for the 
29.2 	improvement of the infrastructure for sanitary 
29.3 	sewer service at the Woodenfrog Campground 
29.4 	in Kabetogama State Forest. This is a onetime 
29.5 	appropriation.
29.6 	$29,000 the second year is for computer 
29.7 	programming related to the transfer-on-death 
29.8 	title changes for watercraft. This is a onetime 
29.9 	appropriation.
29.10 	$210,000 the first year is from the water 
29.11 	recreation account in the natural resources 
29.12 	fund for implementation of Minnesota 
29.13 	Statutes, section 86B.532, established in this 
29.14 	act. This is a onetime appropriation. The 
29.15 	commissioner of natural resources shall seek 
29.16 	federal and other nonstate funds to reimburse 
29.17 	the department for the initial costs of 
29.18 	producing and distributing carbon monoxide 
29.19 	boat warning labels. All amounts collected 
29.20 	under this paragraph shall be deposited into 
29.21 	the water recreation account.
29.22 	$1,000,000 the second year is from the natural 
29.23 	resources fund for a grant to Lake County for 
29.24 	construction, including bridges, of the 
29.25 	Prospectors ATV Trail System linking the 
29.26 	communities of Ely, Babbitt, Embarrass, and 
29.27 	Tower; Bear Head Lake and Lake 
29.28 	Vermilion-Soudan Underground Mine State 
29.29 	Parks; the Taconite State Trail; and the Lake 
29.30 	County Regional ATV Trail System. Of this 
29.31 	amount, $900,000 is from the all-terrain 
29.32 	vehicle account, $50,000 is from the 
29.33 	off-highway motorcycle account, and $50,000 
29.34 	is from the off-road vehicle account. This is 
30.1 	a onetime appropriation and is available until 
30.2 	June 30, 2019.

30.3 	Sec. 7. Laws 2016, chapter 189, article 3, section 4, is amended to read:

30.4
30.5	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	-0-
	$
	479,000
	
30.6 	$479,000 the second year is for the 
30.7 	development of a detailed plan to implement 
30.8 	a working lands watershed restoration program 
30.9 	to incentivize the establishment and 
30.10 	maintenance of perennial crops that includes 
30.11 	the following:
30.12 	(1) a process for selecting pilot watersheds 
30.13 	that are expected to result in the greatest water 
30.14 	quality improvements and exhibit readiness 
30.15 	to participate in the program;
30.16 	(2) an assessment of the quantity of 
30.17 	agricultural land that is expected to be eligible 
30.18 	for the program in each watershed;
30.19 	(3) an assessment of landowner interest in 
30.20 	participating in the program;
30.21 	(4) an assessment of the contract terms and 
30.22 	any recommendations for changes to the terms, 
30.23 	including consideration of variable payment 
30.24 	rates for lands of different priority or type;
30.25 	(5) an assessment of the opportunity to 
30.26 	leverage federal funds through the program 
30.27 	and recommendations on how to maximize 
30.28 	the use of federal funds for assistance to 
30.29 	establish perennial crops;
30.30 	(6) an assessment of how other state programs 
30.31 	could complement the program;
31.1 	(7) an estimate of water quality improvements 
31.2 	expected to result from implementation in pilot 
31.3 	watersheds;
31.4 	(8) an assessment of how to best integrate 
31.5 	program implementation with existing 
31.6 	conservation requirements and develop 
31.7 	recommendations on harvest practices and 
31.8 	timing to benefit wildlife production;
31.9 	(9) an assessment of the potential viability and 
31.10 	water quality benefit of cover crops used in 
31.11 	biomass processing facilities;
31.12 	(10) a timeline for implementation, 
31.13 	coordinated to the extent possible with 
31.14 	proposed biomass processing facilities; and
31.15 	(11) a projection of funding sources needed 
31.16 	to complete implementation.;
31.17 	(12) outreach to local governments, interest 
31.18 	groups, and individual farmers on the 
31.19 	economic and environmental benefits of 
31.20 	perennial and cover crops;
31.21 	(13) establishment of detailed criteria to target 
31.22 	the location of perennial and cover crops on 
31.23 	a watershed basis to maximize the 
31.24 	environmental benefit at the lowest cost; and
31.25 	(14) development of model contracts to 
31.26 	include payment rates, duration, type of crops, 
31.27 	harvest standards, and monitoring procedures 
31.28 	for use in future program implementation.
31.29 	This is a onetime appropriation and is 
31.30 	available until June 30, 2018 2019.
31.31 	The board shall coordinate development of 
31.32 	the working lands watershed restoration plan 
31.33 	with stakeholders and the commissioners of 
32.1 	natural resources, agriculture, and the 
32.2 	Pollution Control Agency. The board must 
32.3 	submit an interim report by October 15, 2017
32.4 	2018, and the feasibility study and program 
32.5 	plan by February 1, 2018 2019, to the chairs 
32.6 	and ranking minority members of the 
32.7 	legislative committees and divisions with 
32.8 	jurisdiction over agriculture, natural resources, 
32.9 	and environment policy and finance and to the 
32.10 	Clean Water Council.

32.11 	Sec. 8. Laws 2017, chapter 93, article 1, section 3, subdivision 6, is amended to read:

32.1332.12
	Subd. 6.Fish and Wildlife Management
 		68,207,000
		67,750,000
69,210,000

32.14	Appropriations by Fund
	
32.15		2018
	2019
	
32.16	Natural Resources
	1,912,000
	1,912,000
	
32.1832.17
	Game and Fish
	66,295,000
	65,838,000
67,298,000
	
32.19 	(a) $8,283,000 the first year and $8,386,000 
32.20 	the second year are from the heritage 
32.21 	enhancement account in the game and fish 
32.22 	fund only for activities specified in Minnesota 
32.23 	Statutes, section 297A.94, paragraph (e), 
32.24 	clause (1). Notwithstanding Minnesota 
32.25 	Statutes, section 297A.94, five percent of this 
32.26 	appropriation may be used for expanding 
32.27 	hunter and angler recruitment and retention.
32.28 	(b) Notwithstanding Minnesota Statutes, 
32.29 	section 297A.94, $30,000 the first year is from 
32.30 	the heritage enhancement account in the game 
32.31 	and fish fund for the commissioner of natural 
32.32 	resources to contract with a private entity to 
32.33 	search for a site to construct a world-class 
32.34 	shooting range and club house for use by the 
32.35 	Minnesota State High School League and for 
33.1 	other regional, statewide, national, and 
33.2 	international shooting events. The 
33.3 	commissioner must provide public notice of 
33.4 	the search, including making the public aware 
33.5 	of the process through the Department of 
33.6 	Natural Resources' media outlets, and solicit 
33.7 	input on the location and building options for 
33.8 	the facility. The siting search process must 
33.9 	include a public process to determine if any 
33.10 	business or individual is interested in donating 
33.11 	land for the facility, anticipated to be at least 
33.12 	500 acres. The site search team must meet 
33.13 	with interested third parties affected by or 
33.14 	interested in the facility. The commissioner 
33.15 	must submit a report with the results of the 
33.16 	site search to the chairs and ranking minority 
33.17 	members of the legislative committees and 
33.18 	divisions with jurisdiction over environment 
33.19 	and natural resources by March 1, 2018. This 
33.20 	is a onetime appropriation.
33.21 	(c) Notwithstanding Minnesota Statutes, 
33.22 	section 297A.94, $30,000 the first year is from 
33.23 	the heritage enhancement account in the game 
33.24 	and fish fund for a study of lead shot 
33.25 	deposition on state lands. By March 1, 2018, 
33.26 	the commissioner shall provide a report of the 
33.27 	study to the chairs and ranking minority 
33.28 	members of the legislative committees with 
33.29 	jurisdiction over natural resources policy and 
33.30 	finance. This is a onetime appropriation.
33.31 	(d) Notwithstanding Minnesota Statutes, 
33.32 	section 297A.94, $500,000 the first year is 
33.33 	from the heritage enhancement account in the 
33.34 	game and fish fund for planning and 
33.35 	emergency response to disease outbreaks in 
34.1 	wildlife. This is a onetime appropriation and 
34.2 	is available until June 30, 2019.
34.3 	(e) $8,606,000 the second year is from the 
34.4 	deer management account in the game and 
34.5 	fish fund for the purposes specified under 
34.6 	Minnesota Statutes, section 97A.075, 
34.7 	subdivision 1, paragraph (b).

34.8 	Sec. 9. Laws 2017, chapter 93, article 1, section 4, is amended to read:

34.934.10
	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	14,311,000
	$
	14,164,000
	
34.11 	(a) $3,423,000 the first year and $3,423,000 
34.12 	the second year are for natural resources block 
34.13 	grants to local governments. Grants must be 
34.14 	matched with a combination of local cash or 
34.15 	in-kind contributions. The base grant portion 
34.16 	related to water planning must be matched by 
34.17 	an amount as specified by Minnesota Statutes, 
34.18 	section 103B.3369. The board may reduce the 
34.19 	amount of the natural resources block grant 
34.20 	to a county by an amount equal to any 
34.21 	reduction in the county's general services 
34.22 	allocation to a soil and water conservation 
34.23 	district from the county's previous year 
34.24 	allocation when the board determines that the 
34.25 	reduction was disproportionate.
34.26 	(b) $3,116,000 the first year and $3,116,000 
34.27 	the second year are for grants to soil and water 
34.28 	conservation districts for the purposes of 
34.29 	Minnesota Statutes, sections 103C.321 and 
34.30 	103C.331, and for general purposes, nonpoint 
34.31 	engineering, and implementation and 
34.32 	stewardship of the reinvest in Minnesota 
34.33 	reserve program. Expenditures may be made 
34.34 	from these appropriations for supplies and 
35.1 	services benefiting soil and water conservation 
35.2 	districts. Any district receiving a payment 
35.3 	under this paragraph shall maintain a Web 
35.4 	page that publishes, at a minimum, its annual 
35.5 	report, annual audit, annual budget, and 
35.6 	meeting notices.
35.7 	(c) $260,000 the first year and $260,000 the 
35.8 	second year are for feedlot water quality cost 
35.9 	share grants for feedlots under 300 animal 
35.10 	units and nutrient and manure management 
35.11 	projects in watersheds where there are 
35.12 	impaired waters.
35.13 	(d) $1,200,000 the first year and $1,200,000 
35.14 	the second year are for soil and water 
35.15 	conservation district cost-sharing contracts for 
35.16 	perennially vegetated riparian buffers, erosion 
35.17 	control, water retention and treatment, and 
35.18 	other high-priority conservation practices.
35.19 	(e) $100,000 the first year and $100,000 the 
35.20 	second year are for county cooperative weed 
35.21 	management cost-share programs and to 
35.22 	restore native plants in selected invasive 
35.23 	species management sites.
35.24 	(f) $761,000 the first year and $761,000 the 
35.25 	second year are for implementation, 
35.26 	enforcement, and oversight of the Wetland 
35.27 	Conservation Act, including administration of 
35.28 	the wetland banking program and in-lieu fee 
35.29 	mechanism.
35.30 	(g) $300,000 the first year is for improving 
35.31 	the efficiency and effectiveness of Minnesota's 
35.32 	wetland regulatory programs through 
35.33 	continued examination of United States Clean 
35.34 	Water Act section 404 assumption including 
36.1 	negotiation of draft agreements with the 
36.2 	United States Environmental Protection 
36.3 	Agency and the United States Army Corps of 
36.4 	Engineers, planning for an online permitting 
36.5 	system, upgrading the existing wetland 
36.6 	banking database, and developing an in-lieu 
36.7 	fee wetland banking program as authorized 
36.8 	by statute. This is a onetime appropriation and 
36.9 	is available until June 30, 2019.
36.10 	(h) $166,000 the first year and $166,000 the 
36.11 	second year are to provide technical assistance 
36.12 	to local drainage management officials and 
36.13 	for the costs of the Drainage Work Group. The 
36.14 	Board of Water and Soil Resources must 
36.15 	coordinate the stakeholder drainage work 
36.16 	group in accordance with Minnesota Statutes, 
36.17 	section 103B.101, subdivision 13, to evaluate 
36.18 	and make recommendations to accelerate 
36.19 	drainage system acquisition and establishment 
36.20 	of ditch buffer strips under Minnesota Statutes, 
36.21 	chapter 103E, or compatible alternative 
36.22 	practices required by Minnesota Statutes, 
36.23 	section 103F.48. The evaluation and 
36.24 	recommendations must be submitted in a 
36.25 	report to the senate and house of 
36.26 	representatives committees with jurisdiction 
36.27 	over agriculture and environment policy by 
36.28 	February 1, 2018.
36.29 	(i) $100,000 the first year and $100,000 the 
36.30 	second year are for a grant to the Red River 
36.31 	Basin Commission for water quality and 
36.32 	floodplain management, including 
36.33 	administration of programs. This appropriation 
36.34 	must be matched by nonstate funds. If the 
36.35 	appropriation in either year is insufficient, the 
37.1 	appropriation in the other year is available for 
37.2 	it.
37.3 	(j) $140,000 the first year and $140,000 the 
37.4 	second year are for grants to Area II 
37.5 	Minnesota River Basin Projects for floodplain 
37.6 	management.
37.7 	(k) $125,000 the first year and $125,000 the 
37.8 	second year are for conservation easement 
37.9 	stewardship.
37.10 	(l) $240,000 the first year and $240,000 the 
37.11 	second year are for a grant to the Lower 
37.12 	Minnesota River Watershed District to defray 
37.13 	the annual cost of operating and maintaining 
37.14 	sites for dredge spoil to sustain the state, 
37.15 	national, and international commercial and 
37.16 	recreational navigation on the lower Minnesota 
37.17 	River.
37.18 	(m) $4,380,000 the first year and $4,533,000 
37.19 	the second year are for Board of Water and 
37.20 	Soil Resources agency administration and 
37.21 	operations.
37.22 	(n) Notwithstanding Minnesota Statutes, 
37.23 	section 103C.501, the board may shift 
37.24 	cost-share funds in this section and may adjust 
37.25 	the technical and administrative assistance 
37.26 	portion of the grant funds to leverage federal 
37.27 	or other nonstate funds or to address 
37.28 	high-priority needs identified in local water 
37.29 	management plans or comprehensive water 
37.30 	management plans.
37.31 	(o) The appropriations for grants in this section 
37.32 	are available until June 30, 2021, except 
37.33 	returned grants are available for two years 
37.34 	after they are returned. If an appropriation for 
38.1 	grants in either year is insufficient, the 
38.2 	appropriation in the other year is available for 
38.3 	it.
38.4 	(p) Notwithstanding Minnesota Statutes, 
38.5 	section 16B.97, the appropriations for grants 
38.6 	in this section are exempt from Department 
38.7 	of Administration, Office of Grants 
38.8 	Management Policy 08-08 Grant Payments 
38.9 	and 08-10 Grant Monitoring.

38.10 	ARTICLE 4
38.11 	ENVIRONMENT AND NATURAL RESOURCES POLICY

38.12 	Section 1. Minnesota Statutes 2017 Supplement, section 84.01, subdivision 6, is amended 
38.13 	to read:
38.14 		Subd. 6.Legal counsel. The commissioner of natural resources may appoint attorneys 
38.15 	or outside counsel to render title opinions, represent the department in severed mineral 
38.16 	interest forfeiture actions brought pursuant to section 93.55, and, notwithstanding any statute 
38.17 	to the contrary, represent the state in quiet title or title registration actions affecting land or 
38.18 	interests in land administered by the commissioner and in all proceedings relating to road 
38.19 	vacations.

38.20 	Sec. 2. Minnesota Statutes 2016, section 84.0895, subdivision 2, is amended to read:
38.21 		Subd. 2.Application. (a) Subdivision 1 does not apply to:
38.22 	(1) plants on land classified for property tax purposes as class 2a or 2c agricultural land 
38.23 	under section 273.13, or on ditches and roadways a ditch, or on an existing public road 
38.24 	right-of-way as defined in section 84.92, subdivision 6a, except for ground not previously 
38.25 	disturbed by construction or maintenance; and
38.26 	(2) noxious weeds designated pursuant to sections 18.76 to 18.88 or to weeds otherwise 
38.27 	designated as troublesome by the Department of Agriculture.
38.28 	(b) If control of noxious weeds is necessary, it takes priority over the protection of 
38.29 	endangered plant species, as long as a reasonable effort is taken to preserve the endangered 
38.30 	plant species first.
38.31 	(c) The taking or killing of an endangered plant species on land adjacent to class 3 or 
38.32 	3b agricultural land as a result of the application of pesticides or other agricultural chemical 
39.1 	on the class 3 or 3b land is not a violation of subdivision 1, if reasonable care is taken in 
39.2 	the application of the pesticide or other chemical to avoid impact on adjacent lands. For the 
39.3 	purpose of this paragraph, class 3 or 3b agricultural land does not include timber land, waste 
39.4 	land, or other land for which the owner receives a state paid wetlands or native prairie tax 
39.5 	credit.
39.6 	(d) The accidental taking of an endangered plant, where the existence of the plant is not 
39.7 	known at the time of the taking, is not a violation of subdivision 1.

39.8 	Sec. 3. Minnesota Statutes 2016, section 84.775, subdivision 1, is amended to read:
39.9 		Subdivision 1.Civil citation; authority to issue. (a) A conservation officer or other 
39.10 	licensed peace officer may issue a civil citation to a person who operates:
39.11 	(1) an off-highway motorcycle in violation of sections 84.773, subdivision 1 or 2, clause 
39.12 	(1); 84.777; 84.788 to 84.795; or 84.90;
39.13 	(2) an off-road vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1); 
39.14 	84.777; 84.798 to 84.804; or 84.90; or
39.15 	(3) an all-terrain vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1); 
39.16 	84.777; 84.90; or 84.922 to 84.928.
39.17 	(b) A civil citation under paragraph (a) shall require restitution for public and private 
39.18 	property damage and impose a penalty of:
39.19 	(1) $100 for the first offense;
39.20 	(2) $200 for the second offense; and
39.21 	(3) $500 for third and subsequent offenses.
39.22 	(c) A conservation officer or other licensed peace officer may issue a civil citation to a 
39.23 	person who operates an off-highway motorcycle, off-road vehicle, or all-terrain vehicle in 
39.24 	violation of section 84.773, subdivision 2, clause (2) or (3). A civil citation under this 
39.25 	paragraph shall require restitution for damage to wetlands and impose a penalty of:
39.26 	(1) $100 for the first offense;
39.27 	(2) $500 for the second offense; and
39.28 	(3) $1,000 for third and subsequent offenses.
39.29 	(d) If the peace officer determines that there is damage to property requiring restitution, 
39.30 	the commissioner must send a written explanation of the extent of the damage and the cost 
40.1 	of the repair by first class mail to the address provided by the person receiving the citation 
40.2 	within 15 days of the date of the citation.
40.3 	(e) An off-road vehicle or all-terrain vehicle that is equipped with a snorkel device and 
40.4 	receives a civil citation under this section is subject to twice the penalty amounts in 
40.5 	paragraphs (b) and (c).

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

40.7 	Sec. 4. Minnesota Statutes 2016, section 84.83, subdivision 3, is amended to read:
40.8 		Subd. 3.Purposes for the account; allocation. (a) The money deposited in the account 
40.9 	and interest earned on that money may be expended only as appropriated by law for the 
40.10 	following purposes:
40.11 	(1) for a grant-in-aid program to counties and municipalities for construction and 
40.12 	maintenance of snowmobile trails, including maintenance of trails on lands and waters of 
40.13 	Voyageurs National Park; on Lake of the Woods; on Rainy Lake; on the following lakes in 
40.14 	St. Louis County: Burntside, Crane, Little Long, Mud, Pelican, Shagawa, and Vermilion; 
40.15 	and on the following lakes in Cook County: Devil Track and Hungry Jack;
40.16 	(2) for acquisition, development, and maintenance of state recreational snowmobile 
40.17 	trails;
40.18 	(3) for snowmobile safety programs; and
40.19 	(4) for the administration and enforcement of sections 84.81 to 84.91 and appropriated 
40.20 	grants to local law enforcement agencies.
40.21 	(b) No less than 60 percent of revenue collected from snowmobile registration and 
40.22 	snowmobile state trail sticker fees deposited in the snowmobile trails and enforcement 
40.23 	account must be expended for grants-in-aid to develop, maintain, and groom trails and 
40.24 	acquire easements.

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

40.26 	Sec. 5. Minnesota Statutes 2016, section 84.86, subdivision 1, is amended to read:
40.27 		Subdivision 1.Required rules. With a view of achieving maximum use of snowmobiles 
40.28 	consistent with protection of the environment the commissioner of natural resources shall 
40.29 	adopt rules in the manner provided by chapter 14, for the following purposes:
40.30 	(1) Registration of snowmobiles and display of registration numbers.
41.1 	(2) Use of snowmobiles insofar as game and fish resources are affected.
41.2 	(3) Use of snowmobiles on public lands and waters, or on grant-in-aid trails.
41.3 	(4) Uniform signs to be used by the state, counties, and cities, which are necessary or 
41.4 	desirable to control, direct, or regulate the operation and use of snowmobiles.
41.5 	(5) Specifications relating to snowmobile mufflers.
41.6 	(6) A comprehensive snowmobile information and safety education and training program, 
41.7 	including but not limited to the preparation and dissemination of snowmobile information 
41.8 	and safety advice to the public, the training of snowmobile operators, and the issuance of 
41.9 	snowmobile safety certificates to snowmobile operators who successfully complete the 
41.10 	snowmobile safety education and training course. For the purpose of administering such 
41.11 	program and to defray expenses of training and certifying snowmobile operators, the 
41.12 	commissioner shall collect a fee from each person who receives the youth or adult training. 
41.13 	The commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for 
41.14 	issuing a duplicate snowmobile safety certificate. The commissioner shall establish both 
41.15 	fees in a manner that neither significantly overrecovers nor underrecovers costs, including 
41.16 	overhead costs, involved in providing the services. The fees are not subject to the rulemaking 
41.17 	provisions of chapter 14 and section 14.386 does not apply. The fees may be established 
41.18 	by the commissioner notwithstanding section 16A.1283. The fees, except for the issuing 
41.19 	fee for licensing agents under this subdivision, shall be deposited in the snowmobile trails 
41.20 	and enforcement account in the natural resources fund and the amount thereof, except for 
41.21 	the electronic licensing system commission established by the commissioner under section 
41.22 	84.027, subdivision 15, and issuing fees collected by the commissioner, is appropriated 
41.23 	annually to the Enforcement Division of the Department of Natural Resources for the 
41.24 	administration of such programs. In addition to the fee established by the commissioner, 
41.25 	instructors may charge each person any fee paid by the instructor for the person's online 
41.26 	training course and up to the established fee amount for class materials and expenses. The 
41.27 	commissioner shall cooperate with private organizations and associations, private and public 
41.28 	corporations, and local governmental units in furtherance of the program established under 
41.29 	this clause. School districts may cooperate with the commissioner and volunteer instructors 
41.30 	to provide space for the classroom portion of the training. The commissioner shall consult 
41.31 	with the commissioner of public safety in regard to training program subject matter and 
41.32 	performance testing that leads to the certification of snowmobile operators.
41.33 	(7) The operator of any snowmobile involved in an accident resulting in injury requiring 
41.34 	medical attention or hospitalization to or death of any person or total damage to an extent 
42.1 	of $500 or more, shall forward a written report of the accident to the commissioner on such 
42.2 	form as the commissioner shall prescribe. If the operator is killed or is unable to file a report 
42.3 	due to incapacitation, any peace officer investigating the accident shall file the accident 
42.4 	report within ten business days.

42.5 	Sec. 6. Minnesota Statutes 2017 Supplement, section 84.91, subdivision 1, is amended to 
42.6 	read:
42.7 		Subdivision 1.Acts prohibited. (a) No owner or other person having charge or control 
42.8 	of any snowmobile or all-terrain vehicle shall authorize or permit any individual the person 
42.9 	knows or has reason to believe is under the influence of alcohol or a controlled substance 
42.10 	or other substance to operate the snowmobile or all-terrain vehicle anywhere in this state 
42.11 	or on the ice of any boundary water of this state.
42.12 	(b) No owner or other person having charge or control of any snowmobile or all-terrain 
42.13 	vehicle shall knowingly authorize or permit any person, who by reason of any physical or 
42.14 	mental disability is incapable of operating the vehicle, to operate the snowmobile or all-terrain 
42.15 	vehicle anywhere in this state or on the ice of any boundary water of this state.
42.16 	(c) A person who operates or is in physical control of a snowmobile or all-terrain vehicle 
42.17 	anywhere in this state or on the ice of any boundary water of this state is subject to chapter 
42.18 	169A. In addition to the applicable sanctions under chapter 169A, a person who is convicted 
42.19 	of violating section 169A.20 or an ordinance in conformity with it while operating a 
42.20 	snowmobile or all-terrain vehicle, or who refuses to comply with a lawful request to submit 
42.21 	to testing under sections 169A.50 to 169A.53 or 171.177, or an ordinance in conformity 
42.22 	with it, shall be prohibited from operating a snowmobile or all-terrain vehicle for a period 
42.23 	of one year. The commissioner shall notify the person of the time period during which the 
42.24 	person is prohibited from operating a snowmobile or all-terrain vehicle.
42.25 	(d) Administrative and judicial review of the operating privileges prohibition is governed 
42.26 	by section 97B.066, subdivisions 7 to 9, if the person does not have a prior impaired driving 
42.27 	conviction or prior license revocation, as defined in section 169A.03. Otherwise, 
42.28 	administrative and judicial review of the prohibition is governed by section 169A.53 or 
42.29 	171.177.
42.30 	(e) The court shall promptly forward to the commissioner and the Department of Public 
42.31 	Safety copies of all convictions and criminal and civil sanctions imposed under:
42.32 	(1) this section and chapters;
42.33 	(2) chapter 169 and relating to snowmobiles and all-terrain vehicles;
43.1 	(3) chapter 169A relating to snowmobiles and all-terrain vehicles.; and
43.2 	(4) section 171.177.
43.3 	(f) A person who violates paragraph (a) or (b), or an ordinance in conformity with either 
43.4 	of them, is guilty of a misdemeanor. A person who operates a snowmobile or all-terrain 
43.5 	vehicle during the time period the person is prohibited from operating a vehicle under 
43.6 	paragraph (c) is guilty of a misdemeanor.

43.7 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to violations 
43.8 	committed on or after that date.

43.9 	Sec. 7. Minnesota Statutes 2017 Supplement, section 84.925, subdivision 1, is amended 
43.10 	to read:
43.11 		Subdivision 1.Program Training and certification programs established. (a) The 
43.12 	commissioner shall establish:
43.13 	(1) a comprehensive all-terrain vehicle environmental and safety education and training 
43.14 	certification program, including the preparation and dissemination of vehicle information 
43.15 	and safety advice to the public, the training of all-terrain vehicle operators, and the issuance 
43.16 	of all-terrain vehicle safety certificates to vehicle operators over the age of 12 years who 
43.17 	successfully complete the all-terrain vehicle environmental and safety education and training 
43.18 	course.; and
43.19 	(2) a voluntary all-terrain vehicle online training program for youth and a parent or 
43.20 	guardian, offered at no charge for operators at least six years of age but younger than ten 
43.21 	years of age.
43.22 	(b) A parent or guardian must be present at the hands-on a training portion of the program 
43.23 	for when the youth who are six through ten is under ten years of age.
43.24 	(b) (c) For the purpose of administering the program and to defray the expenses of 
43.25 	training and certifying vehicle operators, the commissioner shall collect a fee from each 
43.26 	person who receives the training for certification under paragraph (a), clause (1). The 
43.27 	commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for issuing 
43.28 	a duplicate all-terrain vehicle safety certificate. The commissioner shall establish both fees 
43.29 	in a manner that neither significantly overrecovers nor underrecovers costs, including 
43.30 	overhead costs, involved in providing the services. The fees are not subject to the rulemaking 
43.31 	provisions of chapter 14 and section 14.386 does not apply. The fees may be established 
43.32 	by the commissioner notwithstanding section 16A.1283. Fee proceeds, except for the issuing 
43.33 	fee for licensing agents under this subdivision, shall be deposited in the all-terrain vehicle 
44.1 	account in the natural resources fund and the amount thereof, except for the electronic 
44.2 	licensing system commission established by the commissioner under section 84.027, 
44.3 	subdivision 15, and issuing fees collected by the commissioner, is appropriated annually to 
44.4 	the Enforcement Division of the Department of Natural Resources for the administration 
44.5 	of the programs. In addition to the fee established by the commissioner, instructors may 
44.6 	charge each person up to the established fee amount for class materials and expenses.
44.7 	(c) (d) The commissioner shall cooperate with private organizations and associations, 
44.8 	private and public corporations, and local governmental units in furtherance of the program
44.9 	programs established under this section. School districts may cooperate with the 
44.10 	commissioner and volunteer instructors to provide space for the classroom portion of the 
44.11 	training. The commissioner shall consult with the commissioner of public safety in regard 
44.12 	to training program the subject matter of the training programs and performance testing that 
44.13 	leads to the certification of vehicle operators. The commissioner shall incorporate a riding 
44.14 	component in the safety education and training program programs established under this 
44.15 	section.

44.16 	Sec. 8. Minnesota Statutes 2017 Supplement, section 84.9256, subdivision 1, is amended 
44.17 	to read:
44.18 		Subdivision 1.Prohibitions on youthful operators. (a) Except for operation on public 
44.19 	road rights-of-way that is permitted under section 84.928 and as provided under paragraph 
44.20 	(j), a driver's license issued by the state or another state is required to operate an all-terrain 
44.21 	vehicle along or on a public road right-of-way.
44.22 	(b) A person under 12 years of age shall not:
44.23 	(1) make a direct crossing of a public road right-of-way;
44.24 	(2) operate an all-terrain vehicle on a public road right-of-way in the state; or
44.25 	(3) operate an all-terrain vehicle on public lands or waters, except as provided in 
44.26 	paragraph (f).
44.27 	(c) Except for public road rights-of-way of interstate highways, a person 12 years of age 
44.28 	but less than 16 years may make a direct crossing of a public road right-of-way of a trunk, 
44.29 	county state-aid, or county highway or operate on public lands and waters or state or 
44.30 	grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety certificate 
44.31 	issued by the commissioner and is accompanied by a person 18 years of age or older who 
44.32 	holds a valid driver's license.
45.1 	(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years old, 
45.2 	but less than 16 years old, must:
45.3 	(1) successfully complete the safety education and training program under section 84.925, 
45.4 	subdivision 1, including a riding component; and
45.5 	(2) be able to properly reach and control the handle bars and reach the foot pegs while 
45.6 	sitting upright on the seat of the all-terrain vehicle.
45.7 	(e) A person at least six ten years of age may take the safety education and training 
45.8 	program and may receive an all-terrain vehicle safety certificate under paragraph (d), but 
45.9 	the certificate is not valid until the person reaches age 12.
45.10 	(f) A person at least ten years of age but under 12 years of age may operate an all-terrain 
45.11 	vehicle with an engine capacity up to 110cc if the vehicle is a class 1 all-terrain vehicle with 
45.12 	straddle-style seating or up to 170cc if the vehicle is a class 1 all-terrain vehicle with 
45.13 	side-by-side-style seating on public lands or waters if accompanied by a parent or legal 
45.14 	guardian.
45.15 	(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
45.16 	(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands 
45.17 	or waters or on state or grant-in-aid trails if the person cannot properly reach and control:
45.18 	(1) the handle bars and reach the foot pegs while sitting upright on the seat of the 
45.19 	all-terrain vehicle with straddle-style seating; or
45.20 	(2) the steering wheel and foot controls of a class 1 all-terrain vehicle with 
45.21 	side-by-side-style seating while sitting upright in the seat with the seat belt fully engaged.
45.22 	(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 16 
45.23 	years old, may make a direct crossing of a public road right-of-way of a trunk, county 
45.24 	state-aid, or county highway or operate an all-terrain vehicle on public lands and waters or 
45.25 	state or grant-in-aid trails if:
45.26 	(1) the nonresident youth has in possession evidence of completing an all-terrain safety 
45.27 	course offered by the ATV Safety Institute or another state as provided in section 84.925, 
45.28 	subdivision 3; and
45.29 	(2) the nonresident youth is accompanied by a person 18 years of age or older who holds 
45.30 	a valid driver's license.
46.1 	(j) A person 12 years of age but less than 16 years of age may operate an all-terrain 
46.2 	vehicle on the roadway, bank, slope, or ditch of a public road right-of-way as permitted 
46.3 	under section 84.928 if the person:
46.4 	(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner; 
46.5 	and
46.6 	(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

46.7 	Sec. 9. [84.9258] ALL-TERRAIN VEHICLE PILOT PROJECT; HAYES LAKE 
46.8 	STATE PARK.
46.9 	(a) A person may operate an all-terrain vehicle in campground areas at Hayes Lake State 
46.10 	Park designated by the commissioner of natural resources under this section. The all-terrain 
46.11 	vehicle must have a valid state park permit. The commissioner must issue an annual permit 
46.12 	for an all-terrain vehicle at the same fee and in the same manner as an annual motorcycle 
46.13 	state park permit, unless the all-terrain vehicle is being permitted annually as a second or 
46.14 	subsequent vehicle. The person operating the all-terrain vehicle must display the state park 
46.15 	permit on the all-terrain vehicle or carry the state park permit while operating the vehicle.
46.16 	(b) By August 1, 2018, the commissioner of natural resources, in cooperation with 
46.17 	Roseau County and the Friends of Hayes Lake State Park, must designate campground areas 
46.18 	at Hayes Lake State Park and access routes to those campgrounds from nearby all-terrain 
46.19 	vehicle trails as accessible to all-terrain vehicles. The campground areas and access routes 
46.20 	designated must have been previously open to motorized vehicle use.
46.21 	(c) Designations made under this section are not subject to the rulemaking provisions 
46.22 	of chapter 14, and section 14.386 does not apply.
46.23 	(d) This section expires January 1, 2021.

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

46.25 	Sec. 10. Minnesota Statutes 2016, section 84.928, subdivision 2, is amended to read:
46.26 		Subd. 2.Operation generally. A person may not drive or operate an all-terrain vehicle:
46.27 	(1) at a rate of speed greater than reasonable or proper under the surrounding 
46.28 	circumstances;
46.29 	(2) in a careless, reckless, or negligent manner so as to endanger or to cause injury or 
46.30 	damage to the person or property of another;
47.1 	(3) without headlight and taillight lighted at all times if the vehicle is equipped with 
47.2 	headlight and taillight;
47.3 	(4) without a functioning stoplight if so equipped;
47.4 	(5) in a tree nursery or planting in a manner that damages or destroys growing stock;
47.5 	(6) without a brake operational by either hand or foot;
47.6 	(7) with more than one person on the vehicle, except as allowed under section 84.9257;
47.7 	(8) at a speed exceeding ten miles per hour on the frozen surface of public waters within 
47.8 	100 feet of a person not on an all-terrain vehicle or within 100 feet of a fishing shelter; or
47.9 	(9) with a snorkel device that has a raised air intake six inches or more above the vehicle 
47.10 	manufacturer's original air intake, except within the Iron Range Off-Highway Vehicle 
47.11 	Recreation Area as described in section 85.013, subdivision 12a, or other public off-highway 
47.12 	vehicle recreation areas; or
47.13 	(10) (9) in a manner that violates operation rules adopted by the commissioner.

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

47.15 	Sec. 11. Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 3, is amended 
47.16 	to read:
47.17 		Subd. 3.Bait harvest from infested waters. (a) Taking wild animals from infested 
47.18 	waters for bait or aquatic farm purposes is prohibited except as provided in paragraph (b), 
47.19 	(c), or (d) and section 97C.341.
47.20 	(b) In waters that are listed as infested waters, except those listed as infested with 
47.21 	prohibited invasive species of fish or certifiable diseases of fish, as defined under section 
47.22 	17.4982, subdivision 6, taking wild animals may be permitted for:
47.23 	(1) commercial taking of wild animals for bait and aquatic farm purposes as provided 
47.24 	in a permit issued under section 84D.11, subject to rules adopted by the commissioner; and
47.25 	(2) bait purposes for noncommercial personal use in waters that contain Eurasian 
47.26 	watermilfoil, when the infested waters are listed solely because they contain Eurasian 
47.27 	watermilfoil and if the equipment for taking is limited to cylindrical minnow traps not 
47.28 	exceeding 16 inches in diameter and 32 inches in length.
47.29 	(c) In streams or rivers that are listed as infested waters, except those listed as infested 
47.30 	with certifiable diseases of fish, as defined under section 17.4982, subdivision 6, the harvest 
48.1 	of bullheads, goldeyes, mooneyes, sheepshead (freshwater drum), and suckers for bait by 
48.2 	hook and line for noncommercial personal use is allowed as follows:
48.3 	(1) fish taken under this paragraph must be used on the same body of water where caught 
48.4 	and while still on that water body. Where the river or stream is divided by barriers such as 
48.5 	dams, the fish must be caught and used on the same section of the river or stream;
48.6 	(2) fish taken under this paragraph may not be transported live from or off the water 
48.7 	body;
48.8 	(3) fish harvested under this paragraph may only be used in accordance with this section;
48.9 	(4) any other use of wild animals used for bait from infested waters is prohibited;
48.10 	(5) fish taken under this paragraph must meet all other size restrictions and requirements 
48.11 	as established in rules; and
48.12 	(6) all species listed under this paragraph shall be included in the person's daily limit as 
48.13 	established in rules, if applicable.
48.14 	(d) In the Minnesota River downstream of Granite Falls, the Mississippi River 
48.15 	downstream of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors 
48.16 	Falls, including portions described as Minnesota-Wisconsin boundary waters in Minnesota 
48.17 	Rules, part 6266.0500, subpart 1, items A and B, the harvest of gizzard shad by cast net for 
48.18 	noncommercial personal use as bait for angling, as provided in a permit issued under section 
48.19 	84D.11, is allowed as follows:
48.20 	(1) nontarget species must immediately be returned to the water;
48.21 	(2) gizzard shad taken under this paragraph must be used on the same body of water 
48.22 	where caught and while still on that water body. Where the river is divided by barriers such 
48.23 	as dams, the gizzard shad must be caught and used on the same section of the river;
48.24 	(3) gizzard shad taken under this paragraph may not be transported off the water body; 
48.25 	and
48.26 	(4) gizzard shad harvested under this paragraph may only be used in accordance with 
48.27 	this section.
48.28 	This paragraph expires December 1, 2017.
48.29 	(e) Equipment authorized for minnow harvest in a listed infested water by permit issued 
48.30 	under paragraph (b) may not be transported to, or used in, any waters other than waters 
48.31 	specified in the permit.
49.1 	(f) Bait intended for sale may not be held in infested water after taking and before sale, 
49.2 	unless authorized under a license or permit according to Minnesota Rules, part 6216.0500.

49.3 	EFFECTIVE DATE. This section is effective retroactively from December 1, 2017.

49.4 	Sec. 12. Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 4, is amended 
49.5 	to read:
49.6 		Subd. 4.Restrictions in infested and noninfested waters; commercial fishing and 
49.7 	turtle, frog, and crayfish harvesting. (a) All nets, traps, buoys, anchors, stakes, and lines 
49.8 	used for commercial fishing or turtle, frog, or crayfish harvesting in an infested water that 
49.9 	is listed because it contains invasive fish, invertebrates, aquatic plants or aquatic macrophytes 
49.10 	other than Eurasian watermilfoil, or certifiable diseases, as defined in section 17.4982, must 
49.11 	be tagged with tags provided by the commissioner, as specified in the commercial licensee's 
49.12 	license or permit. Tagged gear must not be used in water bodies other than those specified 
49.13 	in the license or permit. The license or permit may authorize department staff to remove 
49.14 	tags after the from gear is that has been decontaminated according to a protocol specified 
49.15 	by the commissioner if use of the decontaminated gear in other water bodies would not pose 
49.16 	an unreasonable risk of harm to natural resources or the use of natural resources in the state. 
49.17 	This tagging requirement does not apply to commercial fishing equipment used in Lake 
49.18 	Superior.
49.19 	(b) All nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle, 
49.20 	frog, or crayfish harvesting in an infested water that is listed solely because it contains 
49.21 	Eurasian watermilfoil must be dried for a minimum of ten days or frozen for a minimum 
49.22 	of two days before they are used in any other waters, except as provided in this paragraph. 
49.23 	Commercial licensees must notify the department's regional or area fisheries office or a 
49.24 	conservation officer before removing nets or equipment from an infested water listed solely 
49.25 	because it contains Eurasian watermilfoil and before resetting those nets or equipment in 
49.26 	any other waters. Upon notification, the commissioner may authorize a commercial licensee 
49.27 	to move nets or equipment to another water without freezing or drying, if that water is listed 
49.28 	as infested solely because it contains Eurasian watermilfoil.
49.29 	(c) A commercial licensee must remove all aquatic macrophytes from nets and other 
49.30 	equipment before placing the equipment into waters of the state.
49.31 	(d) The commissioner shall provide a commercial licensee with a current listing of listed 
49.32 	infested waters at the time that a license or permit is issued.

50.1 	Sec. 13. Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2b, is amended 
50.2 	to read:
50.3 		Subd. 2b.Gull Lake pilot study. (a) The commissioner may include an additional 
50.4 	targeted pilot study to include water-related equipment with zebra mussels attached for the 
50.5 	Gull Narrows State Water Access Site, Government Point State Water Access Site, and 
50.6 	Gull East State water access Site sites on Gull Lake (DNR Division of Waters number 
50.7 	11-0305) in Cass and Crow Wing Counties using the same authorities, general procedures, 
50.8 	and requirements provided for the Lake Minnetonka pilot project in subdivision 2a. Lake 
50.9 	service providers participating in the Gull Lake targeted pilot study place of business must 
50.10 	be located in Cass or Crow Wing County.
50.11 	(b) If an additional targeted pilot project for Gull Lake is implemented under this section, 
50.12 	the report to the chairs and ranking minority members of the senate and house of 
50.13 	representatives committees having jurisdiction over natural resources required under Laws 
50.14 	2016, chapter 189, article 3, section 48, must also include the Gull Lake targeted pilot study 
50.15 	recommendations and assessments.
50.16 	(c) This subdivision expires December 1, 2019.

50.17 	Sec. 14. Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2c, is amended 
50.18 	to read:
50.19 		Subd. 2c.Cross Lake pilot study. (a) The commissioner may include an additional 
50.20 	targeted pilot study to include water-related equipment with zebra mussels attached for the 
50.21 	Cross Lake #1 State water access Site sites on Cross Lake (DNR Division of Waters number 
50.22 	18-0312) in Crow Wing County using the same authorities, general procedures, and 
50.23 	requirements provided for the Lake Minnetonka pilot project in subdivision 2a. The place 
50.24 	of business of lake service providers participating in the Cross Lake targeted pilot study 
50.25 	must be located in Cass or Crow Wing County.
50.26 	(b) If an additional targeted pilot project for Cross Lake is implemented under this 
50.27 	section, the report to the chairs and ranking minority members of the senate and house of 
50.28 	representatives committees having jurisdiction over natural resources required under Laws 
50.29 	2016, chapter 189, article 3, section 48, must also include the Cross Lake targeted pilot 
50.30 	study recommendations and assessments.
50.31 	(c) This subdivision expires December 1, 2019.

51.1 	Sec. 15. Minnesota Statutes 2017 Supplement, section 85.0146, subdivision 1, is amended 
51.2 	to read:
51.3 		Subdivision 1.Advisory council created. The Cuyuna Country State Recreation Area 
51.4 	Citizens Advisory Council is established. Membership on the advisory council shall include:
51.5 	(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board
51.6 	Cuyuna Range Economic Development Inc.;
51.7 	(2) a representative of for the Croft Mine Historical Park Joint Powers Board;
51.8 	(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked 
51.9 	as a miner in the local area member at large appointed by the members of the council;
51.10 	(4) a representative of the Crow Wing County Board;
51.11 	(5) an elected state official the state senator representing the state recreation area;
51.12 	(6) the member from the state house of representatives representing the state recreation 
51.13 	area;
51.14 	(7) a representative of the Grand Rapids regional office of the Department of Natural 
51.15 	Resources;
51.16 	(7) (8) a designee of the commissioner of Iron Range resources and rehabilitation;
51.17 	(8) (9) a designee of the local business community selected by the area chambers of 
51.18 	commerce;
51.19 	(9) (10) a designee of the local environmental community selected by the Crow Wing 
51.20 	County District 5 commissioner;
51.21 	(10) (11) a designee of a local education organization selected by the Crosby-Ironton 
51.22 	School Board;
51.23 	(11) (12) a designee of one of the recreation area user groups selected by the Cuyuna 
51.24 	Range Chamber of Commerce; and
51.25 	(12) (13) a member of the Cuyuna Country Heritage Preservation Society.

51.26 	Sec. 16. Minnesota Statutes 2016, section 86B.005, subdivision 8a, is amended to read:
51.27 		Subd. 8a.Marine carbon monoxide detection system. "Marine carbon monoxide 
51.28 	detection system" means a device or system that meets the requirements of the American 
51.29 	Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems.
52.1 	for detecting carbon monoxide that is certified by a nationally recognized testing laboratory 
52.2 	to conform to current UL Standards for use on recreational boats.

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

52.4 	Sec. 17. Minnesota Statutes 2016, section 86B.532, subdivision 1, is amended to read:
52.5 		Subdivision 1.Requirements; installation. (a) No motorboat that has an enclosed 
52.6 	accommodation compartment may be operated on any waters of the state unless the motorboat 
52.7 	is equipped with a functioning marine carbon monoxide detection system installed according 
52.8 	to the manufacturer's instructions and this subdivision.
52.9 	(b) After May 1, 2017, No new motorboat that has an enclosed accommodation 
52.10 	compartment may be sold or offered for sale in Minnesota unless the motorboat is equipped 
52.11 	with a new functioning marine carbon monoxide detection system installed according to 
52.12 	the manufacturer's instructions and this subdivision.
52.13 	(c) A marine carbon monoxide detection system must be located:
52.14 	(1) to monitor the atmosphere of the enclosed accommodation compartment; and
52.15 	(2) within ten feet or 3.048 meters of any designated sleeping accommodations.
52.16 	(d) A marine carbon monoxide detection system, including a sensor, must not be located 
52.17 	within five feet or 1.52 meters of any cooking appliance.

52.18 	EFFECTIVE DATE. This section is effective May 1, 2018.

52.19 	Sec. 18. Minnesota Statutes 2016, section 88.10, is amended by adding a subdivision to 
52.20 	read:
52.21 		Subd. 3.Wildland firefighters; training and licensing. Forest officers and all 
52.22 	individuals employed as wildland firefighters under this chapter are not subject to the 
52.23 	requirements of chapter 299N.

52.24 	Sec. 19. Minnesota Statutes 2016, section 88.75, subdivision 1, is amended to read:
52.25 		Subdivision 1.Misdemeanor offenses; damages; injunctive relief. (a) Any person 
52.26 	who violates any of the provisions of sections 88.03 to 88.22 for which no specific penalty 
52.27 	is therein prescribed shall be guilty of a misdemeanor and be punished accordingly.
52.28 	(b) Failure by any person to comply with any provision or requirement of sections 88.03
52.29 	to 88.22 to which such person is subject shall be deemed a violation thereof.
53.1 	(c) Any person who violates any provisions of sections 88.03 to 88.22, in addition to 
53.2 	any penalties therein prescribed, or hereinbefore in this section prescribed, for such violation, 
53.3 	shall also be liable in full damages to any and every person suffering loss or injury by reason 
53.4 	of such violation, including liability to the state, and any of its political subdivisions, for 
53.5 	all expenses incurred in fighting or preventing the spread of, or extinguishing, any fire 
53.6 	caused by, or resulting from, any violation of these sections. Notwithstanding any statute 
53.7 	to the contrary, an attorney who is licensed to practice law in Minnesota and is an employee 
53.8 	of the Department of Natural Resources may represent the commissioner in proceedings 
53.9 	under this subdivision that are removed to district court from conciliation court. All expenses 
53.10 	so collected by the state shall be deposited in the general fund. When a fire set by any person 
53.11 	spreads to and damages or destroys property belonging to another, the setting of the fire 
53.12 	shall be prima facie evidence of negligence in setting and allowing the same to spread.
53.13 	(d) At any time the state, or any political subdivision thereof, either of its own motion, 
53.14 	or at the suggestion or request of the director, may bring an action in any court of competent 
53.15 	jurisdiction to restrain, enjoin, or otherwise prohibit any violation of sections 88.03 to 88.22, 
53.16 	whether therein described as a crime or not, and likewise to restrain, enjoin, or prohibit any 
53.17 	person from proceeding further in, with, or at any timber cutting or other operations without 
53.18 	complying with the provisions of those sections, or the requirements of the director pursuant 
53.19 	thereto; and the court may grant such relief, or any other appropriate relief, whenever it 
53.20 	shall appear that the same may prevent loss of life or property by fire, or may otherwise aid 
53.21 	in accomplishing the purposes of sections 88.03 to 88.22.

53.22 	Sec. 20. Minnesota Statutes 2016, section 89.551, is amended to read:
53.23 	89.551 APPROVED FIREWOOD REQUIRED.
53.24 	(a) After the commissioner issues an order under paragraph (b), a person may not possess 
53.25 	firewood on land administered by the commissioner of natural resources unless the firewood:
53.26 	(1) was obtained from a firewood distribution facility located on land administered by 
53.27 	the commissioner;
53.28 	(2) was obtained from a firewood dealer who is selling firewood that is approved by the 
53.29 	commissioner under paragraph (b); or
53.30 	(3) has been approved by the commissioner of natural resources under paragraph (b).
53.31 	(b) The commissioner of natural resources shall, by written order published in the State 
53.32 	Register, approve firewood for possession on lands administered by the commissioner. The 
54.1 	order is not subject to the rulemaking provisions of chapter 14, and section 14.386 does not 
54.2 	apply.
54.3 	(c) A violation under this section is subject to confiscation of firewood and after May 
54.4 	1, 2008, confiscation and a $100 penalty. A firewood dealer shall be subject to confiscation 
54.5 	and assessed a $100 penalty for each sale of firewood not approved under the provisions 
54.6 	of this section and sold for use on land administered by the commissioner.
54.7 	(d) For the purposes of this section, "firewood" means any wood that is intended for use 
54.8 	in a campfire, as defined in section 88.01, subdivision 25.

54.9 	Sec. 21. Minnesota Statutes 2016, section 97A.051, subdivision 2, is amended to read:
54.10 		Subd. 2.Summary of fish and game laws. (a) The commissioner shall prepare a 
54.11 	summary of the hunting and fishing laws and rules and deliver a sufficient supply to license 
54.12 	vendors to furnish one copy to each person obtaining a hunting, fishing, or trapping license.
54.13 	(b) At the beginning of the summary, under the heading "Trespass," the commissioner 
54.14 	shall summarize the trespass provisions under sections 97B.001 to 97B.945, state that 
54.15 	conservation officers and peace officers must enforce the trespass laws, and state the penalties 
54.16 	for trespassing.
54.17 	(c) In the summary the commissioner shall, under the heading "Duty to Render Aid," 
54.18 	summarize the requirements under section 609.662 and state the penalties for failure to 
54.19 	render aid to a person injured by gunshot.

54.20 	Sec. 22. Minnesota Statutes 2017 Supplement, section 97A.075, subdivision 1, is amended 
54.21 	to read:
54.22 		Subdivision 1.Deer, bear, and lifetime licenses. (a) For purposes of this subdivision, 
54.23 	"deer license" means a license issued under section 97A.475, subdivisions 2, clauses (5), 
54.24 	(6), (7), (13), (14), and (15); 3, paragraph (a), clauses (2), (3), (4), (10), (11), and (12); and 
54.25 	8, paragraph (b), and licenses issued under section 97B.301, subdivision 4.
54.26 	(b) $16 from each annual deer license issued under section 97A.475, subdivisions 2, 
54.27 	clauses (5), (6), and (7); 3, paragraph (a), clauses (2), (3), and (4); and 8, paragraph (b); $2 
54.28 	from each annual deer license and $2 issued under sections 97A.475, subdivisions 2, clauses 
54.29 	(13), (14), and (15); and 3, paragraph (a), clauses (10), (11), and (12); and 97B.301, 
54.30 	subdivision 4; $16 annually from the lifetime fish and wildlife trust fund, established in 
54.31 	section 97A.4742, for each license issued to a person 18 years of age or older under section 
54.32 	97A.473, subdivision 4,; and $2 annually from the lifetime fish and wildlife trust fund for 
55.1 	each license issued to a person under 18 years of age under section 97A.473, subdivision 
55.2 	4, shall be credited to the deer management account and is appropriated to the commissioner 
55.3 	for deer habitat improvement or deer management programs. The deer management account 
55.4 	is established as an account in the game and fish fund and may be used only for deer habitat 
55.5 	improvement or deer management programs.
55.6 	(c) $1 from each annual deer license and each bear license and $1 annually from the 
55.7 	lifetime fish and wildlife trust fund, established in section 97A.4742, for each license issued 
55.8 	under section 97A.473, subdivision 4, shall be credited to the deer and bear management 
55.9 	account and is appropriated to the commissioner for deer- and bear-management programs, 
55.10 	including a computerized licensing system.
55.11 	(d) Fifty cents from each deer license is credited to the emergency deer feeding and wild 
55.12 	Cervidae health-management account and is appropriated for emergency deer feeding and 
55.13 	wild Cervidae health management. Money appropriated for emergency deer feeding and 
55.14 	wild Cervidae health management is available until expended.
55.15 	When the unencumbered balance in the appropriation for emergency deer feeding and 
55.16 	wild Cervidae health management exceeds $2,500,000 at the end of a fiscal year, the 
55.17 	unencumbered balance in excess of $2,500,000 is canceled and available for deer- and 
55.18 	bear-management programs and computerized licensing.

55.19 	Sec. 23. [97A.409] VOTER REGISTRATION INFORMATION.
55.20 	(a) On the Department of Natural Resources online license sales Web site for purchasing 
55.21 	a resident license to hunt or fish that is required under the game and fish laws, the 
55.22 	commissioner must include the voter registration eligibility requirements and a description 
55.23 	of how to register to vote before or on election day. On the Web page where an individual 
55.24 	has the option to print a license to hunt or fish, the commissioner must include a direct link 
55.25 	to the secretary of state's online voter registration Web page.
55.26 	(b) In the printed and digital versions of fishing regulations and hunting and trapping 
55.27 	regulations, the commissioner must include the voter registration eligibility requirements, 
55.28 	a description of how to register to vote before or on election day, and a link to the secretary 
55.29 	of state's online voter registration Web page. In addition, the commissioner must include a 
55.30 	voter registration application in the printed and digital versions of fishing regulations and 
55.31 	hunting and trapping regulations.
56.1 	(c) The secretary of state must provide the required voter registration information to the 
56.2 	commissioner. The secretary of state must prepare and approve an alternate form of the 
56.3 	voter registration application to be used in the regulations.

56.4 	EFFECTIVE DATE. Paragraph (a) is effective August 1, 2018, and applies to licenses 
56.5 	issued on or after March 1, 2019. Paragraph (b) is effective August 1, 2018, and applies to 
56.6 	printed and digital versions of regulations updated on or after that date.

56.7 	Sec. 24. Minnesota Statutes 2016, section 97A.433, subdivision 4, is amended to read:
56.8 		Subd. 4.Discretionary separate selection; eligibility. (a) The commissioner may 
56.9 	conduct a separate selection for up to 20 percent of the elk licenses to be issued for an area. 
56.10 	Only owners of, and tenants living on, at least 160 acres of agricultural or grazing land in 
56.11 	the area, and their family members, are eligible for the separate selection. Persons that are 
56.12 	unsuccessful in a separate selection must be included in the selection for the remaining 
56.13 	licenses. Persons who obtain an elk license in a separate selection must allow public elk 
56.14 	hunting on their land during the elk season for which the license is valid may sell the license 
56.15 	to any Minnesota resident eligible to hunt big game for no more than the original cost of 
56.16 	the license.
56.17 	(b) The commissioner may by rule establish criteria for determining eligible family 
56.18 	members under this subdivision.

56.19 	Sec. 25. Minnesota Statutes 2016, section 97A.433, subdivision 5, is amended to read:
56.20 		Subd. 5.Mandatory separate selection. The commissioner must conduct a separate 
56.21 	selection for 20 percent of the elk licenses to be issued each year. Only individuals who 
56.22 	have applied at least ten times for an elk license and who have never received a license are 
56.23 	eligible for this separate selection. A person who is unsuccessful in a separate selection 
56.24 	under this subdivision must be included in the selection for the remaining licenses.

56.25 	Sec. 26. Minnesota Statutes 2016, section 97A.56, subdivision 2, is amended to read:
56.26 		Subd. 2.Prohibited actions; penalty. (a) A person may not possess or release feral 
56.27 	swine or swine that were feral during any part of the swine's lifetime or allow feral swine 
56.28 	to run at large. Except as provided under paragraph (b), a person may not possess feral 
56.29 	swine or swine that were feral during any part of the swine's lifetime.
56.30 	(b) A person may not hunt or trap feral swine, except as authorized by the commissioner 
56.31 	for feral swine control or eradication. It is not a violation of this section if a person shoots 
56.32 	a feral swine and reports the taking to the commissioner within 24 hours. All swine taken 
57.1 	in this manner must be surrendered to the commissioner unless the commissioner authorizes 
57.2 	the person to keep the swine.
57.3 	(c) A person who violates this subdivision is guilty of a misdemeanor.

57.4 	Sec. 27. Minnesota Statutes 2016, section 97B.015, subdivision 6, is amended to read:
57.5 		Subd. 6.Provisional certificate for persons with permanent physical or 
57.6 	developmental disability. Upon the recommendation of a course instructor, the 
57.7 	commissioner may issue a provisional firearms safety certificate to a person who satisfactorily 
57.8 	completes the classroom portion of the firearms safety course but is unable to pass the 
57.9 	written or an alternate format exam portion of the course because of a permanent physical 
57.10 	disability or developmental disability as defined in section 97B.1055, subdivision 1. The 
57.11 	certificate is valid only when used according to section 97B.1055.

57.12 	Sec. 28. Minnesota Statutes 2016, section 97B.081, subdivision 3, is amended to read:
57.13 		Subd. 3.Exceptions. (a) It is not a violation of this section for a person to:
57.14 	(1) cast the rays of a spotlight, headlight, or other artificial light to take raccoons 
57.15 	according to section 97B.621, subdivision 3, or tend traps according to section 97B.931;
57.16 	(2) hunt fox or coyote from January 1 to March 15 while using a handheld an artificial 
57.17 	light, provided that the person is:
57.18 	(i) on foot;
57.19 	(ii) using a shotgun;
57.20 	(iii) not within a public road right-of-way;
57.21 	(iv) using a handheld or electronic calling device; and
57.22 	(v) not within 200 feet of a motor vehicle; or
57.23 	(3) cast the rays of a handheld artificial light to retrieve wounded or dead big game 
57.24 	animals, provided that the person is:
57.25 	(i) on foot; and
57.26 	(ii) not in possession of a firearm or bow.
57.27 	(b) It is not a violation of subdivision 2 for a person to cast the rays of a spotlight, 
57.28 	headlight, or other artificial light to:
58.1 	(1) carry out any agricultural, safety, emergency response, normal vehicle operation, or 
58.2 	occupation-related activities that do not involve taking wild animals; or
58.3 	(2) carry out outdoor recreation as defined in section 97B.001 that is not related to 
58.4 	spotting, locating, or taking a wild animal.
58.5 	(c) Except as otherwise provided by the game and fish laws, it is not a violation of this 
58.6 	section for a person to use an electronic range finder device from one-half hour before 
58.7 	sunrise until one-half hour after sunset while lawfully hunting wild animals.
58.8 	(d) It is not a violation of this section for a licensed bear hunter to cast the rays of a 
58.9 	handheld artificial light to track or retrieve a wounded or dead bear while possessing a 
58.10 	firearm, provided that the person:
58.11 	(1) has the person's valid bear-hunting license in possession;
58.12 	(2) is on foot; and
58.13 	(3) is following the blood trail of a bear that was shot during legal shooting hours.

58.14 	Sec. 29. Minnesota Statutes 2016, section 97B.1055, is amended to read:
58.15 	97B.1055 HUNTING BY PERSONS WITH A PERMANENT PHYSICAL OR 
58.16 	DEVELOPMENTAL DISABILITY.
58.17 		Subdivision 1.Definitions. For purposes of this section and section 97B.015, subdivision 
58.18 	6,:
58.19 	(1) "person with developmental disability" means a person who has been diagnosed as 
58.20 	having substantial limitations in present functioning, manifested as significantly subaverage 
58.21 	intellectual functioning, existing concurrently with demonstrated deficits in adaptive behavior, 
58.22 	and who manifests these conditions before the person's 22nd birthday.;
58.23 	A(2) "person with a related condition" means a person who meets the diagnostic 
58.24 	definition under section 252.27, subdivision 1a.; and
58.25 	(3) "person with a permanent physical disability" means a person who has a physical 
58.26 	disability that prevents them from being able to navigate natural terrain or hold a firearm 
58.27 	for the purpose of a required field component for the firearms safety training program under 
58.28 	section 97B.020.
58.29 		Subd. 2.Obtaining a license. (a) Notwithstanding section 97B.020, a person with a 
58.30 	permanent physical disability or developmental disability may obtain a firearms hunting 
59.1 	license with a provisional firearms safety certificate issued under section 97B.015, 
59.2 	subdivision 6.
59.3 	(b) Any person accompanying or assisting a person with a permanent physical disability 
59.4 	or developmental disability under this section must possess a valid firearms safety certificate 
59.5 	issued by the commissioner.
59.6 		Subd. 3.Assistance required. A person who obtains a firearms hunting license under 
59.7 	subdivision 2 must be accompanied and assisted by a parent, guardian, or other adult person 
59.8 	designated by a parent or guardian when hunting. A person who is not hunting but is solely 
59.9 	accompanying and assisting a person with a permanent physical disability or developmental 
59.10 	disability need not obtain a hunting license.
59.11 		Subd. 4.Prohibited activities. (a) This section does not entitle a person to possess a 
59.12 	firearm if the person is otherwise prohibited from possessing a firearm under state or federal 
59.13 	law or a court order.
59.14 	(b) No person shall knowingly authorize or permit a person, who by reason of a permanent 
59.15 	physical disability or developmental disability is incapable of safely possessing a firearm, 
59.16 	to possess a firearm to hunt in the state or on any boundary water of the state.

59.17 	Sec. 30. Minnesota Statutes 2016, section 97C.345, subdivision 3a, is amended to read:
59.18 		Subd. 3a.Cast nets for gizzard shad. (a) Cast nets may be used only to take gizzard 
59.19 	shad for use as bait for angling:
59.20 	(1) from July 1 to November 30; and
59.21 	(2) from the Minnesota River downstream of Granite Falls, Mississippi River downstream 
59.22 	of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors Falls, 
59.23 	including portions described as Minnesota-Wisconsin boundary waters in Minnesota Rules, 
59.24 	part 6266.0500, subpart 1, items A and B, that are listed as infested waters as allowed under 
59.25 	section 84D.03, subdivision 3.
59.26 	(b) Cast nets used under this subdivision must be monofilament and may not exceed 
59.27 	seven five feet in diameter radius, and mesh size must be from three-eighths to five-eighths 
59.28 	inch bar measure. No more than two cast nets may be used at one time.
59.29 	(c) This subdivision expires December 1, 2017. The commissioner must report to the 
59.30 	chairs and ranking minority members of the house of representatives and senate committees 
59.31 	with jurisdiction over environment and natural resources by March 1, 2018, on the number 
60.1 	of permits issued, conservation impacts from the use of cast nets, and recommendations for 
60.2 	any necessary changes in statutes or rules.

60.3 	EFFECTIVE DATE. This section is effective retroactively from December 1, 2017.

60.4 	Sec. 31. Minnesota Statutes 2016, section 103B.3369, subdivision 5, is amended to read:
60.5 		Subd. 5.Financial assistance. A base grant, contract, or payment may be awarded to a 
60.6 	county or other local unit of government that provides a match utilizing a water 
60.7 	implementation tax or other local source. A water implementation tax that a county or other 
60.8 	local unit of government intends to use as a match to the base grant must be levied at a rate 
60.9 	sufficient to generate a minimum amount determined by the board. The board may award 
60.10 	performance-based or watershed-based grants, contracts, or payments to local units of 
60.11 	government that are responsible for implementing elements of applicable portions of 
60.12 	watershed management plans, comprehensive plans, local water management plans, or 
60.13 	comprehensive watershed management plans, developed or amended, adopted and approved, 
60.14 	according to chapter 103B, 103C, or 103D. Upon request by a local government unit, the 
60.15 	board may also award performance-based grants to local units of government to carry out 
60.16 	TMDL implementation plans as provided in chapter 114D, if the TMDL implementation 
60.17 	plan has been incorporated into the local water management plan according to the procedures 
60.18 	for approving comprehensive plans, watershed management plans, local water management 
60.19 	plans, or comprehensive watershed management plans under chapter 103B, 103C, or 103D, 
60.20 	or if the TMDL implementation plan has undergone a public review process. Notwithstanding 
60.21 	section 16A.41, the board may award performance-based grants, contracts, or payments on 
60.22 	an advanced basis. The fee authorized in section 40A.152 may be used as a local match or 
60.23 	as a supplement to state funding to accomplish implementation of comprehensive plans, 
60.24 	watershed management plans, local water management plans, or comprehensive watershed 
60.25 	management plans under this chapter and chapter 103C or 103D.

60.26 	Sec. 32. Minnesota Statutes 2016, section 103B.3369, subdivision 9, is amended to read:
60.27 		Subd. 9.Performance-based Criteria. (a) The board shall must develop and utilize 
60.28 	performance-based criteria for local water resources restoration, protection, and management 
60.29 	programs and projects. The criteria may include but are not limited to science-based 
60.30 	assessments, organizational capacity, priority resource issues, community outreach and 
60.31 	support, partnership potential, potential for multiple benefits, and program and project 
60.32 	delivery efficiency and effectiveness.
61.1 	(b) Notwithstanding paragraph (a), the board may develop and utilize eligibility criteria 
61.2 	for base amounts of state funding to local governments.

61.3 	Sec. 33. Minnesota Statutes 2016, section 103B.3369, is amended by adding a subdivision 
61.4 	to read:
61.5 		Subd. 10.Red River Basin Commission. (a) The board may provide information and 
61.6 	technical or financial support to the Red River Basin Commission in furtherance of the 
61.7 	watershed management policy under section 103A.212.
61.8 	(b) For the purposes of this subdivision, "Red River Basin Commission" means a Red 
61.9 	River of the North transboundary, nonprofit corporation organized under section 501(c)(3) 
61.10 	of the Internal Revenue Code and respective bylaws with the purpose of facilitating 
61.11 	transboundary and basin-wide dialogue; consulting with citizens, land users, organizations, 
61.12 	and governments; and coordinating basin-wide interstate and international efforts on water 
61.13 	management including but not limited to flood mitigation, water quality, water supply, 
61.14 	drainage, aquatic health, and recreation.

61.15 	Sec. 34. Minnesota Statutes 2016, section 103B.801, subdivision 2, is amended to read:
61.16 		Subd. 2.Program purposes. The purposes of the comprehensive watershed management 
61.17 	plan program under section 103B.101, subdivision 14, paragraph (a), are to:
61.18 	(1) align local water planning purposes and procedures under this chapter and chapters 
61.19 	103C and 103D on watershed boundaries to create a systematic, watershed-wide, 
61.20 	science-based approach to watershed management;
61.21 	(2) acknowledge and build off existing local government structure, water plan services, 
61.22 	and local capacity;
61.23 	(3) incorporate and make use of data and information, including watershed restoration 
61.24 	and protection strategies under section 114D.26, which may serve to fulfill all or some of 
61.25 	the requirements under chapter 114D;
61.26 	(4) solicit input and engage experts from agencies, citizens, and stakeholder groups;
61.27 	(5) focus on implementation of prioritized and targeted actions capable of achieving 
61.28 	measurable progress; and
61.29 	(6) serve as a substitute for a comprehensive plan, local water management plan, or 
61.30 	watershed management plan developed or amended, approved, and adopted, according to 
61.31 	this chapter or chapter 103C or 103D.

62.1 	Sec. 35. Minnesota Statutes 2016, section 103B.801, subdivision 5, is amended to read:
62.2 		Subd. 5.Timelines; administration. (a) The board shall develop and adopt, by June 
62.3 	30, 2016, a transition plan for development, approval, adoption, and coordination of plans 
62.4 	consistent with section 103A.212. The transition plan must include a goal of completing 
62.5 	statewide transition to comprehensive watershed management plans by 2025. The 
62.6 	metropolitan area may be considered for inclusion in the transition plan. The board may 
62.7 	amend the transition plan no more often than once every two years.
62.8 	(b) The board may use the authority under section 103B.3369, subdivision 9, to support 
62.9 	development or implementation of a comprehensive watershed management plan under this 
62.10 	section.

62.11 	Sec. 36. Minnesota Statutes 2016, section 103E.021, subdivision 6, is amended to read:
62.12 		Subd. 6.Incremental implementation establishment of vegetated ditch buffer strips 
62.13 	and side inlet controls. (a) Notwithstanding other provisions of this chapter requiring 
62.14 	appointment of viewers and redetermination of benefits and damages, a drainage authority 
62.15 	may implement make findings and order the establishment of permanent buffer strips of 
62.16 	perennial vegetation approved by the drainage authority or side inlet controls, or both, 
62.17 	adjacent to a public drainage ditch, where necessary to control erosion and sedimentation, 
62.18 	improve water quality, or maintain the efficiency of the drainage system. The drainage 
62.19 	authority's finding that the establishment of permanent buffer strips of perennial vegetation 
62.20 	or side inlet controls is necessary to control erosion and sedimentation, improve water 
62.21 	quality, or maintain the efficiency of the drainage system is sufficient to confer jurisdiction 
62.22 	under this subdivision. Preference should be given to planting native species of a local 
62.23 	ecotype. The approved perennial vegetation shall not impede future maintenance of the 
62.24 	ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width measured 
62.25 	outward from the top edge of the existing constructed channel. Drainage system rights-of-way 
62.26 	for the acreage and additional property required for the permanent strips must be acquired 
62.27 	by the authority having jurisdiction.
62.28 	(b) A project under this subdivision shall be implemented as a repair according to section 
62.29 	103E.705, except that the drainage authority may appoint an engineer to examine the drainage 
62.30 	system and prepare an engineer's repair report for the project.
62.31 	(c) Damages shall be determined by the drainage authority, or viewers, appointed by 
62.32 	the drainage authority, according to section 103E.315, subdivision 8. A damages statement 
62.33 	shall be prepared, including an explanation of how the damages were determined for each 
62.34 	property affected by the project, and filed with the auditor or watershed district. Within 30 
63.1 	days after the damages statement is filed, the auditor or watershed district shall prepare 
63.2 	property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), (6), 
63.3 	(7), and (8), and mail a copy of the property owner's report and damages statement to each 
63.4 	owner of property affected by the proposed project.
63.5 	(d) After a damages statement is filed, the drainage authority shall set a time, by order, 
63.6 	not more than 30 days after the date of the order, for a hearing on the project. At least ten 
63.7 	days before the hearing, the auditor or watershed district shall give notice by mail of the 
63.8 	time and location of the hearing to the owners of property and political subdivisions likely 
63.9 	to be affected by the project.
63.10 	(e) The drainage authority shall make findings and order the repairs to be made if the 
63.11 	drainage authority determines from the evidence presented at the hearing and by the viewers 
63.12 	and engineer, if appointed, that the repairs are necessary for the drainage system and the 
63.13 	costs of the repairs are within the limitations of section 103E.705.

63.14 	Sec. 37. Minnesota Statutes 2016, section 103E.071, is amended to read:
63.15 	103E.071 COUNTY ATTORNEY.
63.16 	The county attorney shall represent the county in all drainage proceedings and related 
63.17 	matters without special compensation, except as provided in section 388.09, subdivision 1. 
63.18 	A county attorney, the county attorney's assistant, or any attorney associated with the county 
63.19 	attorney in business, may not otherwise appear in any drainage proceeding for any interested 
63.20 	person.

63.21 	Sec. 38. Minnesota Statutes 2016, section 103G.2242, subdivision 14, is amended to read:
63.22 		Subd. 14.Fees established. (a) Fees must be assessed for managing wetland bank 
63.23 	accounts and transactions as follows:
63.24 	(1) account maintenance annual fee: one percent of the value of credits not to exceed 
63.25 	$500;
63.26 	(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not to 
63.27 	exceed $1,000 per establishment, deposit, or transfer; and
63.28 	(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.
63.29 	(b) The board may must establish fees at or based on costs to the agency below the 
63.30 	amounts in paragraph (a) for single-user or other dedicated wetland banking accounts.
64.1 	(c) Fees for single-user or other dedicated wetland banking accounts established pursuant 
64.2 	to section 103G.005, subdivision 10i, clause (4), are limited to establishment of a wetland 
64.3 	banking account and are assessed at the rate of 6.5 percent of the value of the credits not to 
64.4 	exceed $1,000.
64.5 	(d) The board may assess a fee to pay the costs associated with establishing conservation 
64.6 	easements, or other long-term protection mechanisms prescribed in the rules adopted under 
64.7 	subdivision 1, on property used for wetland replacement.

64.8 	Sec. 39. Minnesota Statutes 2017 Supplement, section 103G.271, subdivision 7, is amended 
64.9 	to read:
64.10 		Subd. 7.Transfer of permit. A water-use permit may be transferred to a successive 
64.11 	owner of real property if the permittee conveys the real property where the source of water 
64.12 	is located. The new owner must notify the commissioner immediately after the conveyance 
64.13 	and request transfer of the permit. The commissioner must not deny the transfer of a permit 
64.14 	if the permittee is in compliance with all permit conditions and the permit meets the 
64.15 	requirements of sections 103G.255 to 103G.301. The commissioner may not require 
64.16 	additional conditions or require additional testing when transferring a permit.

64.17 	Sec. 40. [103G.276] IRRIGATION TEST WELLS.
64.18 	If the commissioner requires installation of a test well for a water appropriation permit 
64.19 	for irrigation and denies the permit, the commissioner must pay the costs of the well.

64.20 	Sec. 41. Minnesota Statutes 2016, section 103G.287, is amended by adding a subdivision 
64.21 	to read:
64.22 		Subd. 6.Management plans. (a) Before the commissioner approves a management plan 
64.23 	or modification to a management plan for appropriating groundwater that restricts water 
64.24 	usage in the area, the commissioner must demonstrate to affected permit holders that any 
64.25 	data used to make the decision to restrict the usage supports or verifies the decision.
64.26 	(b) Before the commissioner approves a management plan or modification to a 
64.27 	management plan for appropriating groundwater, the commissioner must consider the 
64.28 	economic impact of the plan or modification.

65.1 	Sec. 42. Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision 
65.2 	to read:
65.3 		Subd. 3a.Comprehensive local water management plan. "Comprehensive local water 
65.4 	management plan" has the meaning given under section 103B.3363, subdivision 3.

65.5 	Sec. 43. Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision 
65.6 	to read:
65.7 		Subd. 3b.Comprehensive watershed management plan. "Comprehensive watershed 
65.8 	management plan" has the meaning given under section 103B.3363, subdivision 3a.

65.9 	Sec. 44. Minnesota Statutes 2016, section 114D.15, subdivision 7, is amended to read:
65.10 		Subd. 7.Restoration. "Restoration" means actions, including effectiveness monitoring, 
65.11 	that are taken to pursue, achieve, and maintain water quality standards for impaired waters 
65.12 	in accordance with a TMDL that has been approved by the United States Environmental 
65.13 	Protection Agency under federal TMDL requirements.

65.14 	Sec. 45. Minnesota Statutes 2016, section 114D.15, subdivision 11, is amended to read:
65.15 		Subd. 11.TMDL implementation plan. "TMDL implementation plan" means:
65.16 	(1) a document detailing restoration activities needed to meet the approved TMDL's 
65.17 	pollutant load allocations for point and nonpoint sources.; or
65.18 	(2) one of the following that the commissioner of the Pollution Control Agency 
65.19 	determines to be, in whole or part, sufficient to meet applicable water quality standards:
65.20 	(i) a comprehensive watershed management plan;
65.21 	(ii) a comprehensive local water management plan; or
65.22 	(iii) an existing statewide or regional strategy published by the Pollution Control Agency.

65.23 	Sec. 46. Minnesota Statutes 2016, section 114D.15, subdivision 13, is amended to read:
65.24 		Subd. 13.Watershed restoration and protection strategy or WRAPS. "Watershed 
65.25 	restoration and protection strategy" or "WRAPS" means a document summarizing scientific 
65.26 	studies of a major watershed no larger than at approximately a hydrologic unit code 8 scale
65.27 	including the physical, chemical, and biological assessment of the water quality of the 
65.28 	watershed; identification of impairments and water bodies in need of protection; identification 
65.29 	of biotic stressors and sources of pollution, both point and nonpoint; TMDL's for the 
66.1 	impairments; and an implementation table containing information to support strategies and 
66.2 	actions designed to achieve and maintain water quality standards and goals.

66.3 	Sec. 47. Minnesota Statutes 2016, section 114D.20, subdivision 2, is amended to read:
66.4 		Subd. 2.Goals for implementation. The following goals must guide the implementation 
66.5 	of this chapter:
66.6 	(1) to identify impaired waters in accordance with federal TMDL requirements within 
66.7 	ten years after May 23, 2006, and thereafter to ensure continuing evaluation of surface 
66.8 	waters for impairments;
66.9 	(2) to submit TMDL's to the United States Environmental Protection Agency for all 
66.10 	impaired waters in a timely manner in accordance with federal TMDL requirements;
66.11 	(3) to set a reasonable time inform and support strategies for implementing restoration 
66.12 	of each identified impaired water and protection activities in a reasonable time period;
66.13 	(4) to systematically evaluate waters, to provide assistance and incentives to prevent 
66.14 	waters from becoming impaired, and to improve the quality of waters that are listed as 
66.15 	impaired but do not have an approved TMDL addressing the impairment;
66.16 	(5) to promptly seek the delisting of waters from the impaired waters list when those 
66.17 	waters are shown to achieve the designated uses applicable to the waters;
66.18 	(6) to achieve compliance with federal Clean Water Act requirements in Minnesota;
66.19 	(7) to support effective measures to prevent the degradation of groundwater according 
66.20 	to the groundwater degradation prevention goal under section 103H.001; and
66.21 	(8) to support effective measures to restore degraded groundwater.

66.22 	Sec. 48. Minnesota Statutes 2016, section 114D.20, subdivision 3, is amended to read:
66.23 		Subd. 3.Implementation policies. The following policies must guide the implementation 
66.24 	of this chapter:
66.25 	(1) develop regional and, multiple pollutant, or watershed TMDL's and TMDL 
66.26 	implementation plans, and TMDL's and TMDL implementation plans for multiple pollutants
66.27 	or WRAPSs, where reasonable and feasible;
66.28 	(2) maximize use of available organizational, technical, and financial resources to perform 
66.29 	sampling, monitoring, and other activities to identify degraded groundwater and impaired 
66.30 	waters, including use of citizen monitoring and citizen monitoring data used by the Pollution 
67.1 	Control Agency in assessing water quality that meets the requirements in Appendix D of 
67.2 	the Volunteer Surface Water Monitoring Guide, Minnesotaestablished by the commissioner 
67.3 	of the Pollution Control Agency (2003);
67.4 	(3) maximize opportunities for restoration of degraded groundwater and impaired waters, 
67.5 	by prioritizing and targeting of available programmatic, financial, and technical resources 
67.6 	and by providing additional state resources to complement and leverage available resources;
67.7 	(4) use existing regulatory authorities to achieve restoration for point and nonpoint 
67.8 	sources of pollution where applicable, and promote the development and use of effective 
67.9 	nonregulatory measures to address pollution sources for which regulations are not applicable;
67.10 	(5) use restoration methods that have a demonstrated effectiveness in reducing 
67.11 	impairments and provide the greatest long-term positive impact on water quality protection 
67.12 	and improvement and related conservation benefits while incorporating innovative approaches 
67.13 	on a case-by-case basis;
67.14 	(6) identify for the legislature any innovative approaches that may strengthen or 
67.15 	complement existing programs;
67.16 	(7) identify and encourage implementation of measures to prevent surface waters from 
67.17 	becoming impaired and to improve the quality of waters that are listed as impaired but have 
67.18 	no approved TMDL addressing the impairment using the best available data and technology, 
67.19 	and establish and report outcome-based performance measures that monitor the progress 
67.20 	and effectiveness of protection and restoration measures;
67.21 	(8) monitor and enforce cost-sharing contracts and impose monetary damages in an 
67.22 	amount up to 150 percent of the financial assistance received for failure to comply; and
67.23 	(9) identify and encourage implementation of measures to prevent groundwater from 
67.24 	becoming degraded and measures that restore groundwater resources.

67.25 	Sec. 49. Minnesota Statutes 2016, section 114D.20, subdivision 5, is amended to read:
67.26 		Subd. 5.Priorities for preparing WRAPSs AND TMDL's. In consultation with the 
67.27 	Clean Water Council shall recommend, the commissioner of the Pollution Control Agency 
67.28 	must coordinate with the commissioners of natural resources, health, and agriculture, the 
67.29 	Board of Water and Soil Resources, and, when applicable, the Minnesota Forest Resources 
67.30 	Council to establish priorities for scheduling and preparing WRAPSs and TMDL's and 
67.31 	TMDL implementation plans, taking into account, considering the severity and causes of 
67.32 	the impairment impairments, the designated uses of those the waters, and other applicable 
67.33 	federal TMDL requirements. In recommending priorities, the council shall also give 
68.1 	Consideration to, groundwater and high-quality waters and watersheds watershed protection, 
68.2 	waters and watersheds with declining water quality trends, waters used as drinking water 
68.3 	sources, and waters and watersheds:
68.4 	(1) with impairments that pose the greatest potential risk to human health;
68.5 	(2) with impairments that pose the greatest potential risk to threatened or endangered 
68.6 	species;
68.7 	(3) with impairments that pose the greatest potential risk to aquatic health;
68.8 	(4) where other public agencies and participating organizations and individuals, especially 
68.9 	local, basinwide basin-wide, watershed, or regional agencies or organizations, have 
68.10 	demonstrated readiness to assist in carrying out the responsibilities, including availability 
68.11 	and organization of human, technical, and financial resources necessary to undertake the 
68.12 	work; and
68.13 	(5) where there is demonstrated coordination and cooperation among cities, counties, 
68.14 	watershed districts, and soil and water conservation districts in planning and implementation 
68.15 	of activities that will assist in carrying out the responsibilities.

68.16 	Sec. 50. Minnesota Statutes 2016, section 114D.20, subdivision 7, is amended to read:
68.17 		Subd. 7.Priorities for funding prevention actions. The Clean Water Council shall 
68.18 	apply the priorities applicable under subdivision 6, as far as practicable, when recommending 
68.19 	priorities for funding actions to prevent groundwater and surface waters from becoming 
68.20 	degraded or impaired and to improve the quality of surface waters that are listed as impaired 
68.21 	but do not have an approved TMDL.

68.22 	Sec. 51. Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision 
68.23 	to read:
68.24 		Subd. 8.Alternatives; TMDL, TMDL implementation plan, or WRAPS. (a) If the 
68.25 	commissioner of the Pollution Control Agency determines that a comprehensive watershed 
68.26 	management plan or comprehensive local water management plan contains information that 
68.27 	is sufficient and consistent with guidance from the United States Environmental Protection 
68.28 	Agency, including the recommended structure for category 4b demonstrations or its 
68.29 	replacement under section 303(d) of the federal Clean Water Act, the commissioner may 
68.30 	submit the plan to the Environmental Protection Agency according to federal TMDL 
68.31 	requirements as an alternative to developing a TMDL.
69.1 	(b) A TMDL implementation plan or a WRAPS, or portions thereof, are not needed for 
69.2 	waters or watersheds when the commissioner of the Pollution Control Agency determines 
69.3 	that a comprehensive watershed management plan, a comprehensive local water management 
69.4 	plan, or a statewide or regional strategy published by the Pollution Control Agency meets 
69.5 	the definition in section 114D.15, subdivision 11 or 13.
69.6 	(c) The commissioner of the Pollution Control Agency may request that the Board of 
69.7 	Water and Soil Resources conduct an evaluation of the implementation efforts under a 
69.8 	comprehensive watershed management plan or comprehensive local water management 
69.9 	plan when the commissioner makes a determination under paragraph (b). The board must 
69.10 	conduct the evaluation in accordance with section 103B.102.
69.11 	(d) The commissioner of the Pollution Control Agency may amend or revoke a 
69.12 	determination made under paragraph (a) or (b) after considering the evaluation conducted 
69.13 	under paragraph (c).

69.14 	Sec. 52. Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision 
69.15 	to read:
69.16 		Subd. 9.Coordinating municipal and local water quality activities. A project, practice, 
69.17 	or program for water quality improvement or protection that is conducted by a watershed 
69.18 	management organization or a local government unit with a comprehensive watershed 
69.19 	management plan or other water management plan approved according to chapter 103B, 
69.20 	103C, or 103D may be considered as contributing to the requirements of a storm water 
69.21 	pollution prevention plan (SWPPP) for a municipal separate storm sewer systems (MS4) 
69.22 	permit unless the project, practice, or program was previously documented as contributing 
69.23 	to a different SWPPP for an MS4 permit.

69.24 	Sec. 53. Minnesota Statutes 2016, section 114D.26, is amended to read:
69.25 	114D.26 WATERSHED RESTORATION AND PROTECTION STRATEGIES.
69.26 		Subdivision 1.Contents. (a) The commissioner of the Pollution Control Agency shall
69.27 	must develop watershed restoration and protection strategies. for:
69.28 	(1) quantifying impairments and risks to water quality;
69.29 	(2) describing the causes of impairments and pollution sources;
69.30 	(3) consolidating TMDLs in a major watershed; and
70.1 	(4) informing comprehensive local water management plans and comprehensive 
70.2 	watershed management plans.
70.3 	(b) To ensure effectiveness, efficiency, and accountability in meeting the goals of this 
70.4 	chapter, the commissioner of the Pollution Control Agency and the Board of Water and 
70.5 	Soil Resources must coordinate the schedule, budget, scope, and use of a WRAPS and 
70.6 	related documents and processes in consultation with local government units and, when 
70.7 	applicable, the Minnesota Forest Resources Council in consideration of section 114D.20, 
70.8 	subdivision 8. Each WRAPS shall must:
70.9 	(1) identify impaired waters and waters in need of protection;
70.10 	(2) identify biotic stressors causing impairments or threats to water quality;
70.11 	(3) summarize watershed modeling outputs and resulting pollution load allocations, and
70.12 	wasteload allocations, and priority areas for targeting actions to improve water quality and 
70.13 	identify areas with high pollutant-loading rates;
70.14 	(4) identify point sources of pollution for which a national pollutant discharge elimination 
70.15 	system permit is required under section 115.03;
70.16 	(5) identify nonpoint sources of pollution for which a national pollutant discharge 
70.17 	elimination system permit is not required under section 115.03, with sufficient specificity 
70.18 	to prioritize and geographically locate inform watershed restoration and protection actions
70.19 	strategies;
70.20 	(6) describe the current pollution loading and load reduction needed for each source or 
70.21 	source category to meet water quality standards and goals, including wasteload and load 
70.22 	allocations from TMDL's;
70.23 	(7) contain a plan for ongoing identify water quality monitoring needed to fill data gaps, 
70.24 	determine changing conditions, and or gauge implementation effectiveness; and
70.25 	(8) contain an implementation table of strategies and actions that are capable of 
70.26 	cumulatively achieving needed pollution load reductions for point and nonpoint sources, 
70.27 	including identifying:
70.28 	(i) water quality parameters of concern;
70.29 	(ii) current water quality conditions;
70.30 	(iii) water quality goals and targets by parameter of concern; and
71.1 	(iv) strategies and actions by parameter of concern and an example of the scale of 
71.2 	adoptions needed for each; with a timeline to meet the water quality restoration or protection 
71.3 	goals of this chapter.
71.4 	(v) a timeline for achievement of water quality targets;
71.5 	(vi) the governmental units with primary responsibility for implementing each watershed 
71.6 	restoration or protection strategy; and
71.7 	(vii) a timeline and interim milestones for achievement of watershed restoration or 
71.8 	protection implementation actions within ten years of strategy adoption.
71.9 		Subd. 2.Reporting. Beginning July 1, 2016, and every other year thereafter, The 
71.10 	commissioner of the Pollution Control Agency must periodically report on its the agency's
71.11 	Web site the progress toward implementation milestones and water quality goals for all 
71.12 	adopted TMDL's and, where available, WRAPS's.
71.13 		Subd. 3.Timelines; administration. Each year, (a) The commissioner of the Pollution 
71.14 	Control Agency must complete WRAPS's for at least ten percent of watershed restoration 
71.15 	and protection strategies for the state's major watersheds. WRAPS shall be by June 30, 
71.16 	2023, unless the commissioner determines that a comprehensive watershed management 
71.17 	plan or comprehensive local water management plan, in whole or part, meets the definition 
71.18 	in section 114D.15, subdivision 11 or 13. As needed, the commissioner must update the 
71.19 	strategies, in whole or part, after consultation with the Board of Water and Soil Resources 
71.20 	and local government units.
71.21 	(b) Watershed restoration and protection strategies are governed by the procedures for 
71.22 	approval and notice in section 114D.25, subdivisions 2 and 4, except that WRAPS the 
71.23 	strategies need not be submitted to the United States Environmental Protection Agency.

71.24 	Sec. 54. Minnesota Statutes 2016, section 114D.35, subdivision 1, is amended to read:
71.25 		Subdivision 1.Public and stakeholder participation. (a) Public agencies and private 
71.26 	entities involved in the implementation of implementing this chapter shall must encourage 
71.27 	participation by the public and stakeholders, including local citizens, landowners and, land
71.28 	managers, and public and private organizations, in identifying impaired waters, in developing 
71.29 	TMDL's, in planning, priority setting, and implementing restoration of impaired waters, in 
71.30 	identifying degraded groundwater, and in protecting and restoring groundwater resources.
71.31 	(b) In particular, the commissioner of the Pollution Control Agency shall must make 
71.32 	reasonable efforts to provide timely information to the public and to stakeholders about 
71.33 	impaired waters that have been identified by the agency. The agency shall seek broad and 
72.1 	early public and stakeholder participation in scoping the activities necessary to develop a 
72.2 	TMDL, including the scientific models, methods, and approaches to be used in TMDL 
72.3 	development, and to implement restoration pursuant to section 114D.15, subdivision 7. and 
72.4 	to inform and consult with the public and stakeholders in developing a WRAPS or TMDL.
72.5 	(c) Public agencies and private entities involved in implementing restoration and 
72.6 	protection identified in a comprehensive watershed management plan or comprehensive 
72.7 	local water management plan must make efforts to inform, consult, and involve the public 
72.8 	and stakeholders.
72.9 	(d) The commissioner of the Pollution Control Agency and the Board of Water and Soil 
72.10 	Resources must coordinate public and stakeholder participation in consultation with local 
72.11 	government units. To the extent practicable, implementation of this chapter must be 
72.12 	accomplished in cooperation with local, state, federal, and tribal governments and private 
72.13 	sector organizations.

72.14 	Sec. 55. Minnesota Statutes 2016, section 114D.35, subdivision 3, is amended to read:
72.15 		Subd. 3.Education. The Clean Water Council shall develop strategies for informing, 
72.16 	educating, and encouraging the participation of citizens, stakeholders, and others regarding 
72.17 	the identification of impaired waters, development of TMDL's, development of TMDL 
72.18 	implementation plans, implementation of restoration for impaired waters, identification of 
72.19 	degraded groundwater, and protection and restoration of groundwater resources this chapter. 
72.20 	Public agencies shall be are responsible for implementing the strategies.

72.21 	Sec. 56. Minnesota Statutes 2016, section 115.03, subdivision 1, is amended to read:
72.22 		Subdivision 1.Generally. The agency is hereby given and charged with the following 
72.23 	powers and duties:
72.24 	(a) to administer and enforce all laws relating to the pollution of any of the waters of 
72.25 	the state;
72.26 	(b) to investigate the extent, character, and effect of the pollution of the waters of this 
72.27 	state and to gather data and information necessary or desirable in the administration or 
72.28 	enforcement of pollution laws, and to make such classification of the waters of the state as 
72.29 	it may deem advisable;
72.30 	(c) to establish and alter such reasonable pollution standards for any waters of the state 
72.31 	in relation to the public use to which they are or may be put as it shall deem necessary for 
73.1 	the purposes of this chapter and, with respect to the pollution of waters of the state, chapter 
73.2 	116;
73.3 	(d) to encourage waste treatment, including advanced waste treatment, instead of stream 
73.4 	low-flow augmentation for dilution purposes to control and prevent pollution;
73.5 	(e) to adopt, issue, reissue, modify, deny, or revoke, enter into or enforce reasonable 
73.6 	orders, permits, variances, standards, rules, schedules of compliance, and stipulation 
73.7 	agreements, under such conditions as it may prescribe, in order to prevent, control or abate 
73.8 	water pollution, or for the installation or operation of disposal systems or parts thereof, or 
73.9 	for other equipment and facilities:
73.10 	(1) requiring the discontinuance of the discharge of sewage, industrial waste or other 
73.11 	wastes into any waters of the state resulting in pollution in excess of the applicable pollution 
73.12 	standard established under this chapter;
73.13 	(2) prohibiting or directing the abatement of any discharge of sewage, industrial waste, 
73.14 	or other wastes, into any waters of the state or the deposit thereof or the discharge into any 
73.15 	municipal disposal system where the same is likely to get into any waters of the state in 
73.16 	violation of this chapter and, with respect to the pollution of waters of the state, chapter 
73.17 	116, or standards or rules promulgated or permits issued pursuant thereto, and specifying 
73.18 	the schedule of compliance within which such prohibition or abatement must be 
73.19 	accomplished;
73.20 	(3) prohibiting the storage of any liquid or solid substance or other pollutant in a manner 
73.21 	which does not reasonably assure proper retention against entry into any waters of the state 
73.22 	that would be likely to pollute any waters of the state;
73.23 	(4) requiring the construction, installation, maintenance, and operation by any person 
73.24 	of any disposal system or any part thereof, or other equipment and facilities, or the 
73.25 	reconstruction, alteration, or enlargement of its existing disposal system or any part thereof, 
73.26 	or the adoption of other remedial measures to prevent, control or abate any discharge or 
73.27 	deposit of sewage, industrial waste or other wastes by any person;
73.28 	(5) establishing, and from time to time revising, standards of performance for new sources 
73.29 	taking into consideration, among other things, classes, types, sizes, and categories of sources, 
73.30 	processes, pollution control technology, cost of achieving such effluent reduction, and any 
73.31 	nonwater quality environmental impact and energy requirements. Said standards of 
73.32 	performance for new sources shall encompass those standards for the control of the discharge 
73.33 	of pollutants which reflect the greatest degree of effluent reduction which the agency 
73.34 	determines to be achievable through application of the best available demonstrated control 
74.1 	technology, processes, operating methods, or other alternatives, including, where practicable, 
74.2 	a standard permitting no discharge of pollutants. New sources shall encompass buildings, 
74.3 	structures, facilities, or installations from which there is or may be the discharge of pollutants, 
74.4 	the construction of which is commenced after the publication by the agency of proposed 
74.5 	rules prescribing a standard of performance which will be applicable to such source. 
74.6 	Notwithstanding any other provision of the law of this state, any point source the construction 
74.7 	of which is commenced after May 20, 1973, and which is so constructed as to meet all 
74.8 	applicable standards of performance for new sources shall, consistent with and subject to 
74.9 	the provisions of section 306(d) of the Amendments of 1972 to the Federal Water Pollution 
74.10 	Control Act, not be subject to any more stringent standard of performance for new sources 
74.11 	during a ten-year period beginning on the date of completion of such construction or during 
74.12 	the period of depreciation or amortization of such facility for the purposes of section 167 
74.13 	or 169, or both, of the Federal Internal Revenue Code of 1954, whichever period ends first. 
74.14 	Construction shall encompass any placement, assembly, or installation of facilities or 
74.15 	equipment, including contractual obligations to purchase such facilities or equipment, at 
74.16 	the premises where such equipment will be used, including preparation work at such 
74.17 	premises;
74.18 	(6) establishing and revising pretreatment standards to prevent or abate the discharge of 
74.19 	any pollutant into any publicly owned disposal system, which pollutant interferes with, 
74.20 	passes through, or otherwise is incompatible with such disposal system;
74.21 	(7) requiring the owner or operator of any disposal system or any point source to establish 
74.22 	and maintain such records, make such reports, install, use, and maintain such monitoring 
74.23 	equipment or methods, including where appropriate biological monitoring methods, sample 
74.24 	such effluents in accordance with such methods, at such locations, at such intervals, and in 
74.25 	such a manner as the agency shall prescribe, and providing such other information as the 
74.26 	agency may reasonably require;
74.27 	(8) notwithstanding any other provision of this chapter, and with respect to the pollution 
74.28 	of waters of the state, chapter 116, requiring the achievement of more stringent limitations 
74.29 	than otherwise imposed by effluent limitations in order to meet any applicable water quality 
74.30 	standard by establishing new effluent limitations, based upon section 115.01, subdivision 
74.31 	13, clause (b), including alternative effluent control strategies for any point source or group 
74.32 	of point sources to insure the integrity of water quality classifications, whenever the agency 
74.33 	determines that discharges of pollutants from such point source or sources, with the 
74.34 	application of effluent limitations required to comply with any standard of best available 
74.35 	technology, would interfere with the attainment or maintenance of the water quality 
75.1 	classification in a specific portion of the waters of the state. Prior to establishment of any 
75.2 	such effluent limitation, the agency shall hold a public hearing to determine the relationship 
75.3 	of the economic and social costs of achieving such limitation or limitations, including any 
75.4 	economic or social dislocation in the affected community or communities, to the social and 
75.5 	economic benefits to be obtained and to determine whether or not such effluent limitation 
75.6 	can be implemented with available technology or other alternative control strategies. If a 
75.7 	person affected by such limitation demonstrates at such hearing that, whether or not such 
75.8 	technology or other alternative control strategies are available, there is no reasonable 
75.9 	relationship between the economic and social costs and the benefits to be obtained, such 
75.10 	limitation shall not become effective and shall be adjusted as it applies to such person;
75.11 	(9) modifying, in its discretion, any requirement or limitation based upon best available 
75.12 	technology with respect to any point source for which a permit application is filed after July 
75.13 	1, 1977, upon a showing by the owner or operator of such point source satisfactory to the 
75.14 	agency that such modified requirements will represent the maximum use of technology 
75.15 	within the economic capability of the owner or operator and will result in reasonable further 
75.16 	progress toward the elimination of the discharge of pollutants; and
75.17 	(10) requiring that applicants for wastewater discharge permits evaluate in their 
75.18 	applications the potential reuses of the discharged wastewater;
75.19 	(f) to require to be submitted and to approve plans and specifications for disposal systems 
75.20 	or point sources, or any part thereof and to inspect the construction thereof for compliance 
75.21 	with the approved plans and specifications thereof;
75.22 	(g) to prescribe and alter rules, not inconsistent with law, for the conduct of the agency 
75.23 	and other matters within the scope of the powers granted to and imposed upon it by this 
75.24 	chapter and, with respect to pollution of waters of the state, in chapter 116, provided that 
75.25 	every rule affecting any other department or agency of the state or any person other than a 
75.26 	member or employee of the agency shall be filed with the secretary of state;
75.27 	(h) to conduct such investigations, issue such notices, public and otherwise, and hold 
75.28 	such hearings as are necessary or which it may deem advisable for the discharge of its duties 
75.29 	under this chapter and, with respect to the pollution of waters of the state, under chapter 
75.30 	116, including, but not limited to, the issuance of permits, and to authorize any member, 
75.31 	employee, or agent appointed by it to conduct such investigations or, issue such notices and 
75.32 	hold such hearings;
75.33 	(i) for the purpose of water pollution control planning by the state and pursuant to the 
75.34 	Federal Water Pollution Control Act, as amended, to establish and revise planning areas, 
76.1 	adopt plans and programs and continuing planning processes, including, but not limited to, 
76.2 	basin plans and areawide waste treatment management plans, and to provide for the 
76.3 	implementation of any such plans by means of, including, but not limited to, standards, plan 
76.4 	elements, procedures for revision, intergovernmental cooperation, residual treatment process 
76.5 	waste controls, and needs inventory and ranking for construction of disposal systems;
76.6 	(j) to train water pollution control personnel, and charge such fees therefor as are 
76.7 	necessary to cover the agency's costs. The fees under this paragraph are subject to legislative 
76.8 	approval under section 16A.1283. All such fees received shall be paid into the state treasury 
76.9 	and credited to the Pollution Control Agency training account;
76.10 	(k) to impose as additional conditions in permits to publicly owned disposal systems 
76.11 	appropriate measures to insure compliance by industrial and other users with any pretreatment 
76.12 	standard, including, but not limited to, those related to toxic pollutants, and any system of 
76.13 	user charges ratably as is hereby required under state law or said Federal Water Pollution 
76.14 	Control Act, as amended, or any regulations or guidelines promulgated thereunder;
76.15 	(l) to set a period not to exceed five years for the duration of any national pollutant 
76.16 	discharge elimination system permit or not to exceed ten years for any permit issued as a 
76.17 	state disposal system permit only;
76.18 	(m) to require each governmental subdivision identified as a permittee for a wastewater 
76.19 	treatment works to evaluate in every odd-numbered year the condition of its existing system 
76.20 	and identify future capital improvements that will be needed to attain or maintain compliance 
76.21 	with a national pollutant discharge elimination system or state disposal system permit; and
76.22 	(n) to train subsurface sewage treatment system personnel, including persons who design, 
76.23 	construct, install, inspect, service, and operate subsurface sewage treatment systems, and 
76.24 	charge fees as necessary to pay the agency's costs. The fees under this paragraph are subject 
76.25 	to legislative approval under section 16A.1283. All fees received must be paid into the state 
76.26 	treasury and credited to the agency's training account. Money in the account is appropriated 
76.27 	to the agency to pay expenses related to training.
76.28 	The information required in clause (m) must be submitted in every odd-numbered year to 
76.29 	the commissioner on a form provided by the commissioner. The commissioner shall provide 
76.30 	technical assistance if requested by the governmental subdivision.
76.31 	The powers and duties given the agency in this subdivision also apply to permits issued 
76.32 	under chapter 114C.

77.1 	Sec. 57. Minnesota Statutes 2016, section 115.03, subdivision 5, is amended to read:
77.2 		Subd. 5.Agency authority; national pollutant discharge elimination system. (a) 
77.3 	Notwithstanding any other provisions prescribed in or pursuant to this chapter and, with 
77.4 	respect to the pollution of waters of the state, in chapter 116, or otherwise, the agency shall 
77.5 	have the authority to perform any and all acts minimally necessary including, but not limited 
77.6 	to, the establishment and application of standards, procedures, rules, orders, variances, 
77.7 	stipulation agreements, schedules of compliance, and permit conditions, consistent with 
77.8 	and, therefore not less stringent than the provisions of the Federal Water Pollution Control 
77.9 	Act, as amended, applicable to the participation by the state of Minnesota in the national 
77.10 	pollutant discharge elimination system (NPDES); provided that this provision shall not be 
77.11 	construed as a limitation on any powers or duties otherwise residing with the agency pursuant 
77.12 	to any provision of law.
77.13 	(b) An activity that conveys or connects waters of the state without subjecting the 
77.14 	transferred water to intervening industrial, municipal, or commercial use does not require 
77.15 	a national pollutant discharge elimination system permit. This exemption does not apply to 
77.16 	pollutants introduced by the activity itself to the water being transferred.

77.17 	Sec. 58. Minnesota Statutes 2016, section 115.035, is amended to read:
77.18 	115.035 EXTERNAL PEER REVIEW OF WATER QUALITY STANDARDS.
77.19 	(a) When the commissioner convenes an external peer review panel during the 
77.20 	promulgation or amendment of water quality standards, the commissioner must provide 
77.21 	notice and take public comment on the charge questions for the external peer review panel 
77.22 	and must allow written and oral public comment as part of the external peer review panel 
77.23 	process. Every new or revised numeric water quality standard must be supported by a 
77.24 	technical support document that provides the scientific basis for the proposed standard and 
77.25 	that has undergone external, scientific peer review. Numeric water quality standards in 
77.26 	which the agency is adopting, without change, a United States Environmental Protection 
77.27 	Agency criterion that has been through peer review are not subject to this paragraph.
77.28 	Documentation of the external peer review panel, including the name or names of the peer 
77.29 	reviewer or reviewers, must be included in the statement of need and reasonableness for 
77.30 	the water quality standard. If the commissioner does not convene an external peer review 
77.31 	panel during the promulgation or amendment of water quality standards, the commissioner 
77.32 	must state the reason an external peer review panel will not be convened in the statement 
77.33 	of need and reasonableness.
78.1 	(b) Every technical support document developed by the agency must be released in draft 
78.2 	form for public comment before peer review and before finalizing the technical support 
78.3 	document.
78.4 	(c) The commissioner must provide public notice and information about the external 
78.5 	peer review through the request for comments published at the beginning of the rulemaking 
78.6 	process for the numeric water quality standard, and:
78.7 	(1) the request for comments must identify the draft technical support document and 
78.8 	where the document can be found;
78.9 	(2) the request for comments must include a proposed charge for the external peer review 
78.10 	and request comments on the charge;
78.11 	(3) all comments received during the public comment period must be made available to 
78.12 	the external peer reviewers; and
78.13 	(4) if the agency is not soliciting external peer review because the agency is adopting a 
78.14 	United States Environmental Protection Agency criterion without change, that must be 
78.15 	noted in the request for comments.
78.16 	(d) The purpose of the external peer review is to evaluate whether the technical support 
78.17 	document and proposed standard are based on sound scientific knowledge, methods, and 
78.18 	practices. The external peer review must be conducted according to the guidance in the 
78.19 	most recent edition of the United States Environmental Protection Agency's Peer Review 
78.20 	Handbook. Peer reviewers must not have participated in developing the scientific basis of 
78.21 	the standard.
78.22 	(e) The type of review and the number of peer reviewers depends on the nature of the 
78.23 	science underlying the standard. When the agency is developing significant new science or 
78.24 	science that expands significantly beyond current documented scientific practices or 
78.25 	principles, a panel review must be used.
78.26 	(f) In response to the findings of the external peer review, the draft technical support 
78.27 	document must be revised as appropriate. The findings of the external peer review must be 
78.28 	documented and attached to the final technical support document, which must be an exhibit 
78.29 	as part of the statement of need and reasonableness in the rulemaking to adopt the new or 
78.30 	revised numeric water quality standard. The final technical support document must note 
78.31 	changes made in response to the external peer review.
78.32 	(b) (g) By December 15 each year, the commissioner shall post on the agency's Web 
78.33 	site a report identifying the water quality standards development work in progress or 
79.1 	completed in the past year, the lead agency scientist for each development effort, and 
79.2 	opportunities for public input.

79.3 	Sec. 59. [115.455] EFFLUENT LIMITATIONS; COMPLIANCE.
79.4 	To the extent allowable under federal law, for a municipality that constructs a publicly 
79.5 	owned treatment works facility or for an industrial national pollutant discharge elimination 
79.6 	system and state disposal system permit holder that constructs a treatment works facility to 
79.7 	comply with a new or modified effluent limitation, compliance with any new or modified 
79.8 	effluent limitation adopted after construction begins that would require additional capital 
79.9 	investment is required no sooner than 16 years after the date the facility begins operating.

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

79.11 	Sec. 60. Minnesota Statutes 2016, section 115.77, subdivision 1, is amended to read:
79.12 		Subdivision 1.Fees. The agency shall collect fees in amounts necessary, but no greater 
79.13 	than the amounts necessary, to cover the reasonable costs of reviewing applications and 
79.14 	issuing certifications. The fees under this subdivision are subject to legislative approval 
79.15 	under section 16A.1283.

79.16 	Sec. 61. Minnesota Statutes 2016, section 115.84, subdivision 2, is amended to read:
79.17 		Subd. 2.Rules. The agency may adopt rules to govern certification of laboratories 
79.18 	according to this section. Notwithstanding section 16A.1283, the agency may adopt rules 
79.19 	establishing fees.

79.20 	Sec. 62. Minnesota Statutes 2016, section 115.84, subdivision 3, is amended to read:
79.21 		Subd. 3.Fees. (a) Until the agency adopts a rule establishing fees for certification, the 
79.22 	agency shall collect fees from laboratories registering with the agency, but not accredited 
79.23 	by the commissioner of health under sections 144.97 to 144.99, in amounts necessary to 
79.24 	cover the reasonable costs of the certification program, including reviewing applications, 
79.25 	issuing certifications, and conducting audits and compliance assistance. The fees under this 
79.26 	paragraph are subject to legislative approval under section 16A.1283.
79.27 	(b) Fees under this section must be based on the number, type, and complexity of 
79.28 	analytical methods that laboratories are certified to perform.
79.29 	(c) Revenue from fees charged by the agency for certification shall be credited to the 
79.30 	environmental fund.

80.1 	Sec. 63. Minnesota Statutes 2016, section 115A.51, is amended to read:
80.2 	115A.51 APPLICATION REQUIREMENTS.
80.3 	(a) Applications for assistance under the program shall must demonstrate:
80.4 	(a) (1) that the project is conceptually and technically feasible;
80.5 	(b) (2) that affected political subdivisions are committed to implement the project, to 
80.6 	provide necessary local financing, and to accept and exercise the government powers 
80.7 	necessary to the project;
80.8 	(c) (3) that operating revenues from the project, considering the availability and security 
80.9 	of sources of solid waste and of markets for recovered resources, together with any proposed 
80.10 	federal, state, or local financial assistance, will be sufficient to pay all costs over the projected 
80.11 	life of the project;
80.12 	(d) (4) that the applicant has evaluated the feasible and prudent alternatives to disposal, 
80.13 	including the use of existing solid waste management facilities with reasonably available 
80.14 	capacity sufficient to accomplish the goals of the proposed project and has compared and 
80.15 	evaluated the costs of the alternatives, including capital and operating costs, and the effects 
80.16 	of the alternatives on the cost to generators.;
80.17 	(5) that the applicant has identified waste management objectives in applicable county 
80.18 	and regional solid waste management plans consistent with sections 115A.46, subdivision 
80.19 	2, paragraphs (e) and (f), and 473.149, subdivision 1, and other solid waste facilities identified 
80.20 	in the county and regional plans; and
80.21 	(6) that the applicant has conducted a comparative analysis of the project against existing 
80.22 	public and private solid waste facilities, including an analysis of potential displacement of 
80.23 	facilities to determine whether the project is the most appropriate alternative to achieve the 
80.24 	identified waste management objectives that considers:
80.25 	(i) conformity with approved county or regional solid waste management plans;
80.26 	(ii) consistency with the state's solid waste hierarchy and sections 115A.46, subdivision 
80.27 	2, paragraphs (e) and (f), and 473.149, subdivisions 1; and
80.28 	(iii) environmental standards related to public health, air, surface water, and groundwater.
80.29 	(b) The commissioner may require completion of a comprehensive solid waste 
80.30 	management plan conforming to the requirements of section 115A.46, before accepting an 
80.31 	application. Within five days of filing an application with the agency, the applicant must 
81.1 	submit a copy of the application to each solid waste management facility mentioned in the 
81.2 	portion of the application addressing the requirements of paragraph (a), clauses (5) and (6).

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

81.4 	Sec. 64. Minnesota Statutes 2016, section 115A.94, subdivision 2, is amended to read:
81.5 		Subd. 2.Local authority. A city or town may organize collection, after public notification 
81.6 	and hearing as required in subdivisions 4a to 4d 4f. A county may organize collection as 
81.7 	provided in subdivision 5. A city or town that has organized collection as of May 1, 2013, 
81.8 	is exempt from subdivisions 4a to 4d 4f.

81.9 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
81.10 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
81.11 	that date.

81.12 	Sec. 65. Minnesota Statutes 2016, section 115A.94, subdivision 4a, is amended to read:
81.13 		Subd. 4a.Committee establishment. (a) Before implementing an ordinance, franchise, 
81.14 	license, contract, or other means of organizing collection, a city or town, by resolution of 
81.15 	the governing body, must establish an organizeda solid waste collection options committee 
81.16 	to identify, examine, and evaluate various methods of organized solid waste collection. The 
81.17 	governing body shall appoint the committee members.
81.18 	(b) The organized solid waste collection options committee is subject to chapter 13D.

81.19 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
81.20 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
81.21 	that date.

81.22 	Sec. 66. Minnesota Statutes 2016, section 115A.94, subdivision 4b, is amended to read:
81.23 		Subd. 4b.Committee duties. The committee established under subdivision 4a shall:
81.24 	(1) determine which methods of organized solid waste collection to examine, which 
81.25 	must include:
81.26 	(i) the existing system of collection;
81.27 	(i) (ii) a system in which a single collector collects solid waste from all sections of a 
81.28 	city or town; and
81.29 	(ii) (iii) a system in which multiple collectors, either singly or as members of an 
81.30 	organization of collectors, collect solid waste from different sections of a city or town;
82.1 	(2) establish a list of criteria on which the organized solid waste collection methods 
82.2 	selected for examination will be evaluated, which may include: costs to residential 
82.3 	subscribers, impacts on residential subscribers' ability to choose a provider of solid waste 
82.4 	service based on the desired level of service, costs and other factors, the impact of miles 
82.5 	driven by collection vehicles on city streets and alleys and the incremental impact of miles 
82.6 	driven by collection vehicles, initial and operating costs to the city of implementing the 
82.7 	organized solid waste collection system, providing incentives for waste reduction, impacts 
82.8 	on solid waste collectors, and other physical, economic, fiscal, social, environmental, and 
82.9 	aesthetic impacts;
82.10 	(3) collect information regarding the operation and efficacy of existing methods of 
82.11 	organized solid waste collection in other cities and towns;
82.12 	(4) seek input from, at a minimum:
82.13 	(i) the governing body of the city or town;
82.14 	(ii) the local official of the city or town responsible for solid waste issues;
82.15 	(iii) persons currently licensed to operate solid waste collection and recycling services 
82.16 	in the city or town; and
82.17 	(iv) residents of the city or town who currently pay for residential solid waste collection 
82.18 	services; and
82.19 	(5) issue a report on the committee's research, findings, and any recommendations to 
82.20 	the governing body of the city or town.

82.21 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
82.22 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
82.23 	that date.

82.24 	Sec. 67. Minnesota Statutes 2016, section 115A.94, subdivision 4c, is amended to read:
82.25 		Subd. 4c.Governing body; implementation. The governing body of the city or town 
82.26 	shall consider the report and recommendations of the organized solid waste collection 
82.27 	options committee. The governing body must provide public notice and hold at least one 
82.28 	public hearing before deciding whether to implement organized collection. Organized 
82.29 	collection may begin no sooner than six months after the effective date of the decision of 
82.30 	the governing body of the city or town to implement organized collection.

83.1 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
83.2 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
83.3 	that date.

83.4 	Sec. 68. Minnesota Statutes 2016, section 115A.94, subdivision 4d, is amended to read:
83.5 		Subd. 4d.Participating collectors proposal requirement. Prior to Before establishing 
83.6 	a committee under subdivision 4a to consider organizing residential solid waste collection, 
83.7 	a city or town with more than one licensed collector must notify the public and all licensed 
83.8 	collectors in the community. The city or town must provide a 60-day period of at least 60 
83.9 	days in which meetings and negotiations shall occur exclusively between licensed collectors 
83.10 	and the city or town to develop a proposal in which interested licensed collectors, as members 
83.11 	of an organization of collectors, collect solid waste from designated sections of the city or 
83.12 	town. The proposal shall include identified city or town priorities, including issues related 
83.13 	to zone creation, traffic, safety, environmental performance, service provided, and price, 
83.14 	and shall reflect existing haulers maintaining their respective market share of business as 
83.15 	determined by each hauler's average customer count during the six months prior to the 
83.16 	commencement of the 60-day exclusive negotiation period. If an existing hauler opts to be 
83.17 	excluded from the proposal, the city may allocate their customers proportionally based on 
83.18 	market share to the participating collectors who choose to negotiate. The initial organized 
83.19 	collection agreement executed under this subdivision must be for a period of three to seven 
83.20 	years. Upon execution of an agreement between the participating licensed collectors and 
83.21 	city or town, the city or town shall establish organized collection through appropriate local 
83.22 	controls and is not required to fulfill the requirements of subdivisions 4a, 4b, and 4c, except 
83.23 	that the governing body must provide the public notification and hearing required under 
83.24 	subdivision 4c.

83.25 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
83.26 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
83.27 	that date.

83.28 	Sec. 69. Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision 
83.29 	to read:
83.30 		Subd. 4e.Parties to meet and confer. Before the exclusive meetings and negotiations 
83.31 	under subdivision 4d, participating licensed collectors and elected officials of the city or 
83.32 	town must meet and confer regarding waste collection issues, including but not limited to 
84.1 	road deterioration, public safety, pricing mechanisms, and contractual considerations unique 
84.2 	to organized collection.

84.3 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
84.4 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
84.5 	that date.

84.6 	Sec. 70. Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision 
84.7 	to read:
84.8 		Subd. 4f.Joint liability limited. Notwithstanding section 604.02, an organized collection 
84.9 	agreement must not obligate a participating licensed collector for damages to third parties 
84.10 	solely caused by another participating licensed collector. The organized collection agreement 
84.11 	may include joint obligations for actions that are undertaken by all the participating licensed 
84.12 	collectors under this section.

84.13 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
84.14 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
84.15 	that date.

84.16 	Sec. 71. Minnesota Statutes 2016, section 115A.94, subdivision 5, is amended to read:
84.17 		Subd. 5.County organized collection. (a) A county may by ordinance require cities 
84.18 	and towns within the county to organize collection. Organized collection ordinances of 
84.19 	counties may:
84.20 	(1) require cities and towns to require the separation and separate collection of recyclable 
84.21 	materials;
84.22 	(2) specify the material to be separated; and
84.23 	(3) require cities and towns to meet any performance standards for source separation 
84.24 	that are contained in the county solid waste plan.
84.25 	(b) A county may itself organize collection under subdivisions 4a to 4d 4f in any city 
84.26 	or town that does not comply with a county organized collection ordinance adopted under 
84.27 	this subdivision, and the county may implement, as part of its organized collection, the 
84.28 	source separation program and performance standards required by its organized collection 
84.29 	ordinance.

85.1 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
85.2 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
85.3 	that date.

85.4 	Sec. 72. [115B.171] TESTING FOR PRIVATE WELLS; EAST METROPOLITAN 
85.5 	AREA.
85.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
85.7 	the meanings given.
85.8 	(b) "East metropolitan area" means:
85.9 	(1) the cities of Afton, Cottage Grove, Lake Elmo, Newport, Oakdale, St. Paul Park, 
85.10 	and Woodbury;
85.11 	(2) the townships of Denmark, Grey Cloud Island, and Lakeland; and
85.12 	(3) other areas added by the commissioner that have a potential for significant 
85.13 	groundwater pollution from PFCs.
85.14 	(c) "PFCs" means per- and poly-fluorinated chemicals.
85.15 		Subd. 2.Testing required for private wells. At the request of the owner or occupier 
85.16 	of land in the east metropolitan area containing a private well for water, the commissioner 
85.17 	must use money in the remediation fund under section 116.155 to provide timely testing 
85.18 	for PFCs for the well if the commissioner has not previously tested the well for PFCs. If 
85.19 	the test of the private well measures a contamination at or above 50 percent of a health-based 
85.20 	advisory value or health risk limit for PFCs, the commissioner must provide for additional 
85.21 	well tests based on a schedule to ensure that the groundwater is safe for consumption.
85.22 		Subd. 3.Test reporting. (a) By January 15 each year, the commissioner must report to 
85.23 	each community in the east metropolitan area a summary of the results of the testing for 
85.24 	private wells in the community. The report must include information on the number of wells 
85.25 	tested and trends of PFC contamination in private wells in the community. Reports to 
85.26 	communities under this section must also be published on the agency's Web site.
85.27 	(b) By January 15 each year, the commissioner must report to the legislature, as provided 
85.28 	in section 3.195, on the testing for private wells conducted in the east metropolitan area, 
85.29 	including copies of the community reports required in paragraph (a), the number of requests 
85.30 	for well testing in each community, and the total amount spent for testing private wells in 
85.31 	each community.

86.1 	Sec. 73. [115B.172] NATURAL RESOURCES DAMAGES ACCOUNT.
86.2 		Subdivision 1.Establishment. The natural resources damages account is established as 
86.3 	an account in the remediation fund.
86.4 		Subd. 2.Revenues. The account consists of money from the following sources:
86.5 	(1) revenues from actions taken by the attorney general on behalf of the commissioner 
86.6 	of the Pollution Control Agency and commissioner of natural resources under section 
86.7 	115B.17, subdivisions 6 and 7, unless otherwise specified by the attorney general or 
86.8 	settlement agreement;
86.9 	(2) appropriations and transfers to the account as provided by law;
86.10 	(3) interest earned on the account; and
86.11 	(4) money received by the commissioner of the Pollution Control Agency or the 
86.12 	commissioner of natural resources for deposit in the account in the form of a gift or a grant.
86.13 		Subd. 3.Expenditures. (a) Money in the account is appropriated to the commissioner 
86.14 	of natural resources for the purposes authorized in section 115B.20, subdivision 2, clause 
86.15 	(4).
86.16 	(b) The commissioner of management and budget must allocate the amounts available 
86.17 	in any biennium to the commissioner of natural resources for the purposes of this section 
86.18 	based upon work plans submitted by the commissioner of natural resources and may adjust 
86.19 	those allocations upon submittal of revised work plans. Copies of the work plans must be 
86.20 	submitted to the chairs of the house of representatives and senate committees and divisions 
86.21 	having jurisdiction over environment and natural resources finance.
86.22 		Subd. 4.Report. By November 1 each year, the commissioner of natural resources must 
86.23 	submit a report to the chairs and ranking minority members of the house of representatives 
86.24 	and senate committees and divisions with jurisdiction over environment and natural resources 
86.25 	policy and finance on expenditures from the natural resources damages account during the 
86.26 	previous fiscal year.

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

86.28 	Sec. 74. [115B.52] WATER QUALITY AND SUSTAINABILITY ACCOUNT.
86.29 		Subdivision 1.Definition. For purposes of this section and section 115B.53, the term 
86.30 	"settlement" means the agreement and order entered on February 20, 2018, settling litigation 
86.31 	commenced by the state against the 3M Company under section 115B.17, subdivision 7.
87.1 		Subd. 2.Establishment. The water quality and sustainability account is established as 
87.2 	an account in the remediation fund. The account consists of revenue deposited in the account 
87.3 	under the terms of the settlement and earnings on the investment of money in the account. 
87.4 	Money in the account may be invested through the State Board of Investment to ensure 
87.5 	sufficient clean drinking water supplies are available to residents and businesses in the east 
87.6 	metropolitan area to meet their current and future water needs.
87.7 		Subd. 3.Priorities. The commissioners of the Pollution Control Agency and natural 
87.8 	resources must give priority to projects that:
87.9 	(1) ensure clean drinking water in sufficient supply to residents and businesses in the 
87.10 	east metropolitan area to meet their current and future water needs, with priority given to 
87.11 	projects that address drinking water supplies where health-based values or health risk limits 
87.12 	for perfluorinated and polyfluorinated chemicals have been exceeded; and
87.13 	(2) provide water treatment and groundwater recharge to enhance existing municipal 
87.14 	water supplies and provide connections to municipal drinking water supplies.
87.15 		Subd. 4.Expenditures. (a) Money in the account is appropriated to the commissioner 
87.16 	of the Pollution Control Agency and to the commissioner of natural resources for the purposes 
87.17 	authorized under the settlement.
87.18 	(b) The commissioners must ensure that money in the account is spent:
87.19 	(1) to enhance the quality, quantity, and sustainability of the drinking water in the east 
87.20 	metropolitan area, which includes but is not limited to, the cities of Woodbury, Oakdale, 
87.21 	Lake Elmo, Cottage Grove, St. Paul Park, Afton, and Newport and the townships of West 
87.22 	Lakeland and Grey Cloud Island;
87.23 	(2) only on projects that are technically feasible; and
87.24 	(3) in a manner that ensures the priorities identified under subdivision 3 are met and that 
87.25 	money in the account is sufficient for the long-term operation and maintenance of projects 
87.26 	meeting the priority established under subdivision 3, clause (1), including ensuring there 
87.27 	are adequate reserves.
87.28 		Subd. 5.Limitations. No more than eight percent of the money in the account may be 
87.29 	spent on state and local administrative expenses and no more than ten percent may be spent 
87.30 	on studies.
87.31 		Subd. 6.Reporting. The commissioner of the Pollution Control Agency and the 
87.32 	commissioner of natural resources must jointly submit:
88.1 	(1) by March 1 and November 1 each year, a biannual report to the chairs and ranking 
88.2 	minority members of the legislative policy and finance committees with jurisdiction over 
88.3 	environment and natural resources on expenditures from the water quality and sustainability 
88.4 	account during the previous six months; and
88.5 	(2) by November 1 each year, a report to the legislature on expenditures from the water 
88.6 	quality and sustainability account during the previous fiscal year and a spending plan for 
88.7 	anticipated expenditures from the account during the current fiscal year.
88.8 		Subd. 7.State authority. Nothing in this section grants authority to the commissioner 
88.9 	of the Pollution Control Agency or commissioner of natural resources to assume control or 
88.10 	otherwise operate existing municipal water supply operations in the east metropolitan area.

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

88.12 	Sec. 75. [115B.53] WATER QUALITY AND SUSTAINABILITY STAKEHOLDERS.
88.13 	The commissioner of the Pollution Control Agency and the commissioner of natural 
88.14 	resources must work with stakeholders to identify and recommend projects to receive funding 
88.15 	from the water quality and sustainability account under the settlement. Stakeholders include, 
88.16 	at a minimum, representatives of the agency, the Department of Natural Resources, east 
88.17 	metropolitan area municipalities, and the 3M Company. The commissioners must establish 
88.18 	a process to solicit and evaluate the recommendations from each of the cities of Woodbury, 
88.19 	Oakdale, Lake Elmo, Cottage Grove, St. Paul Park, Afton, and Newport and the townships 
88.20 	of West Lakeland and Grey Cloud Island.

88.21 	Sec. 76. Minnesota Statutes 2016, section 116.07, is amended by adding a subdivision to 
88.22 	read:
88.23 		Subd. 2c.Exemption from standards for temporary storage facilities subject to 
88.24 	control. (a) A temporary storage facility located at a commodity facility that is required to 
88.25 	be controlled under Minnesota Rules, part 7011.1005, subpart 3, is not subject to Minnesota 
88.26 	Rules, parts 7011.1000 to 7011.1015. For all portable equipment and fugitive dust emissions 
88.27 	directly associated with the temporary storage facility, it is determined that there is no 
88.28 	applicable specific standard of performance.
88.29 	(b) For the purposes of this subdivision, the following terms have the meanings given 
88.30 	them:
88.31 	(1) "temporary storage facility" means a facility storing grain that:
88.32 	(i) uses an asphalt, concrete, or comparable base material;
89.1 	(ii) has rigid, self-supporting sidewalls;
89.2 	(iii) provides adequate aeration; and
89.3 	(iv) provides an acceptable covering; and
89.4 	(2) "portable equipment" means equipment that is not fixed at any one spot and can be 
89.5 	moved, including but not limited to portable receiving pits, portable augers and conveyors, 
89.6 	and portable reclaim equipment directly associated with the temporary storage facility.

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

89.8 	Sec. 77. Minnesota Statutes 2017 Supplement, section 116.07, subdivision 4d, is amended 
89.9 	to read:
89.10 		Subd. 4d.Permit fees. (a) The agency may collect permit fees in amounts not greater 
89.11 	than those necessary to cover the reasonable costs of developing, reviewing, and acting 
89.12 	upon applications for agency permits and implementing and enforcing the conditions of the 
89.13 	permits pursuant to agency rules. Permit fees shall not include the costs of litigation. The 
89.14 	fee schedule must reflect reasonable and routine direct and indirect costs associated with 
89.15 	permitting, implementation, and enforcement. The agency may impose an additional 
89.16 	enforcement fee to be collected for a period of up to two years to cover the reasonable costs 
89.17 	of implementing and enforcing the conditions of a permit under the rules of the agency. 
89.18 	Water fees under this paragraph are subject to legislative approval under section 16A.1283. 
89.19 	Any money collected under this paragraph shall be deposited in the environmental fund.
89.20 	(b) Notwithstanding paragraph (a), the agency shall collect an annual fee from the owner 
89.21 	or operator of all stationary sources, emission facilities, emissions units, air contaminant 
89.22 	treatment facilities, treatment facilities, potential air contaminant storage facilities, or storage 
89.23 	facilities subject to a notification, permit, or license requirement under this chapter, 
89.24 	subchapters I and V of the federal Clean Air Act, United States Code, title 42, section 7401 
89.25 	et seq., or rules adopted thereunder. The annual fee shall be used to pay for all direct and 
89.26 	indirect reasonable costs, including legal costs, required to develop and administer the 
89.27 	notification, permit, or license program requirements of this chapter, subchapters I and V 
89.28 	of the federal Clean Air Act, United States Code, title 42, section 7401 et seq., or rules 
89.29 	adopted thereunder. Those costs include the reasonable costs of reviewing and acting upon 
89.30 	an application for a permit; implementing and enforcing statutes, rules, and the terms and 
89.31 	conditions of a permit; emissions, ambient, and deposition monitoring; preparing generally 
89.32 	applicable regulations; responding to federal guidance; modeling, analyses, and 
90.1 	demonstrations; preparing inventories and tracking emissions; and providing information 
90.2 	to the public about these activities.
90.3 	(c) The agency shall set fees that:
90.4 	(1) will result in the collection, in the aggregate, from the sources listed in paragraph 
90.5 	(b), of an amount not less than $25 per ton of each volatile organic compound; pollutant 
90.6 	regulated under United States Code, title 42, section 7411 or 7412 (section 111 or 112 of 
90.7 	the federal Clean Air Act); and each pollutant, except carbon monoxide, for which a national 
90.8 	primary ambient air quality standard has been promulgated;
90.9 	(2) may result in the collection, in the aggregate, from the sources listed in paragraph 
90.10 	(b), of an amount not less than $25 per ton of each pollutant not listed in clause (1) that is 
90.11 	regulated under this chapter or air quality rules adopted under this chapter; and
90.12 	(3) shall collect, in the aggregate, from the sources listed in paragraph (b), the amount 
90.13 	needed to match grant funds received by the state under United States Code, title 42, section 
90.14 	7405 (section 105 of the federal Clean Air Act).
90.15 	The agency must not include in the calculation of the aggregate amount to be collected 
90.16 	under clauses (1) and (2) any amount in excess of 4,000 tons per year of each air pollutant 
90.17 	from a source. The increase in air permit fees to match federal grant funds shall be a surcharge 
90.18 	on existing fees. The commissioner may not collect the surcharge after the grant funds 
90.19 	become unavailable. In addition, the commissioner shall use nonfee funds to the extent 
90.20 	practical to match the grant funds so that the fee surcharge is minimized.
90.21 	(d) To cover the reasonable costs described in paragraph (b), the agency shall provide 
90.22 	in the rules promulgated under paragraph (c) for an increase in the fee collected in each 
90.23 	year by the percentage, if any, by which the Consumer Price Index for the most recent 
90.24 	calendar year ending before the beginning of the year the fee is collected exceeds the 
90.25 	Consumer Price Index for the calendar year 1989. For purposes of this paragraph the 
90.26 	Consumer Price Index for any calendar year is the average of the Consumer Price Index for 
90.27 	all-urban consumers published by the United States Department of Labor, as of the close 
90.28 	of the 12-month period ending on August 31 of each calendar year. The revision of the 
90.29 	Consumer Price Index that is most consistent with the Consumer Price Index for calendar 
90.30 	year 1989 shall be used.
90.31 	(e) Any money collected under paragraphs (b) to (d) must be deposited in the 
90.32 	environmental fund and must be used solely for the activities listed in paragraph (b).
91.1 	(f) Permit applicants who wish to construct, reconstruct, or modify a project may offer 
91.2 	to reimburse the agency for the costs of staff time or consultant services needed to expedite 
91.3 	the preapplication process and permit development process through the final decision on 
91.4 	the permit, including the analysis of environmental review documents. The reimbursement 
91.5 	shall be in addition to permit application fees imposed by law. When the agency determines 
91.6 	that it needs additional resources to develop the permit application in an expedited manner, 
91.7 	and that expediting the development is consistent with permitting program priorities, the 
91.8 	agency may accept the reimbursement. The commissioner must give the applicant an estimate 
91.9 	of costs to be incurred by the commissioner. The estimate must include a brief description 
91.10 	of the tasks to be performed, a schedule for completing the tasks, and the estimated cost for 
91.11 	each task. The applicant and the commissioner must enter into a written agreement detailing 
91.12 	the estimated costs for the expedited permit decision-making process to be incurred by the 
91.13 	agency. The agreement must also identify staff anticipated to be assigned to the project. 
91.14 	The commissioner must not issue a permit until the applicant has paid all fees in full. The 
91.15 	commissioner must refund any unobligated balance of fees paid. Reimbursements accepted 
91.16 	by the agency are appropriated to the agency for the purpose of developing the permit or 
91.17 	analyzing environmental review documents. Reimbursement by a permit applicant shall 
91.18 	precede and not be contingent upon issuance of a permit; shall not affect the agency's decision 
91.19 	on whether to issue or deny a permit, what conditions are included in a permit, or the 
91.20 	application of state and federal statutes and rules governing permit determinations; and shall 
91.21 	not affect final decisions regarding environmental review.
91.22 	(g) The fees under this subdivision are exempt from section 16A.1285.

91.23 	Sec. 78. Minnesota Statutes 2017 Supplement, section 116.0714, is amended to read:
91.24 	116.0714 NEW OPEN-AIR SWINE BASINS.
91.25 	(a) The commissioner of the Pollution Control Agency or a county board shall not 
91.26 	approve any permits for the construction of new open-air swine basins, except that existing 
91.27 	facilities may use one basin of less than 1,000,000 gallons as part of a permitted waste 
91.28 	treatment program for resolving pollution problems or to allow conversion of an existing 
91.29 	basin of less than 1,000,000 gallons to a different animal type, provided all standards are 
91.30 	met. This section expires June 30, 2022.
91.31 	(b) This section does not apply to a storage basin for effluent basins used solely for 
91.32 	wastewater from a truck-washing facility.

92.1 	Sec. 79. Minnesota Statutes 2016, section 116.155, subdivision 1, is amended to read:
92.2 		Subdivision 1.Creation. The remediation fund is created as a special revenue fund in 
92.3 	the state treasury to provide a reliable source of public money for response and corrective 
92.4 	actions to address releases of hazardous substances, pollutants or contaminants, agricultural 
92.5 	chemicals, and petroleum, and for environmental response actions at qualified landfill 
92.6 	facilities for which the agency has assumed such responsibility, including perpetual care of 
92.7 	such facilities. The specific purposes for which the general portion of the fund may be spent 
92.8 	are provided in subdivision 2. In addition to the general portion of the fund, the fund contains 
92.9 	two four accounts described in subdivisions 4 and 5 to 5b.

92.10 	Sec. 80. Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision 
92.11 	to read:
92.12 		Subd. 5a.Water quality and sustainability account. The water quality and sustainability 
92.13 	account is as described in section 115B.52.

92.14 	Sec. 81. Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision 
92.15 	to read:
92.16 		Subd. 5b.Natural resources damages account. The natural resources damages account 
92.17 	is as described in section 115B.172.

92.18 	Sec. 82. [116.2025] DEICER APPLICATORS; VOLUNTARY CERTIFICATION 
92.19 	PROGRAM.
92.20 		Subdivision 1.Definitions. For the purpose of this section, the following terms have 
92.21 	the meanings given:
92.22 	(1) "certified commercial applicator" means an individual who applies deicer and has 
92.23 	completed training approved by the commissioner on removing snow and ice and applying 
92.24 	deicer and passed an examination after completing the training;
92.25 	(2) "commercial applicator" means an individual or a company and its employees that 
92.26 	apply deicer for hire, but does not include a municipal, state, or other government employee;
92.27 	(3) "deicer" means any substance used to melt snow and ice, or used for its anti-icing 
92.28 	effects, on privately owned surfaces traveled by pedestrians and vehicles; and
92.29 	(4) "owner" means a person that owns, leases, or manages real estate and the person's 
92.30 	employees that contract in writing with a certified commercial applicator.
93.1 		Subd. 2.Voluntary certification program; best management practices. (a) The 
93.2 	commissioner of the Pollution Control Agency must develop a training program that promotes 
93.3 	best management practices for removing snow and ice and applying deicer and must allow 
93.4 	individuals who are commercial applicators to obtain certification as a water-friendly 
93.5 	applicator. The commissioner must certify an individual who is a commercial applicator as 
93.6 	a water-friendly applicator if the individual successfully completes the program and passes 
93.7 	the examination.
93.8 	(b) The commissioner must provide additional training under this subdivision for certified 
93.9 	commercial applicators renewing certification after their initial training and certification.
93.10 	(c) The commissioner must provide the training and testing module at locations statewide 
93.11 	and may make the recertification training available online.
93.12 	(d) The commissioner must annually post the best management practices and a list of 
93.13 	certified commercial applicators on the agency's Web site.
93.14 	(e) The commissioner may charge a fee of no more than $250 per certified commercial 
93.15 	applicator for the training or recertification under this subdivision. Fees collected under this 
93.16 	subdivision must be deposited in the environmental fund.
93.17 		Subd. 3.Liability. (a) A commercial applicator certified under this section; the owner, 
93.18 	occupant, or lessee of real property maintained by a certified commercial applicator; or an 
93.19 	employee of that owner, occupant, or lessee who is certified under this section is not civilly 
93.20 	liable for any claim based on a snow or ice condition arising out of the implementation of 
93.21 	the best management practices developed by the commissioner under this section even if 
93.22 	there is actual notice of the snow or ice condition, except when the snow or ice condition 
93.23 	is affirmatively caused by the willful or reckless acts of the certified commercial applicator 
93.24 	or the employee of the owner, occupant, or lessee who is certified under this section. 
93.25 	Commercial applicators certified under this section; the owner, occupants, or lessees of land 
93.26 	maintained by a certified commercial applicator; and an employee of that owner, occupant, 
93.27 	or lessee who is certified under this section are presumed to be acting pursuant to the best 
93.28 	management practices developed by the commissioner under this section.
93.29 	(b) To receive the immunity protection under paragraph (a), and not for any other purpose, 
93.30 	the commercial applicator, or the employee of the owner, occupant, or lessee, must have a 
93.31 	current certification, pass an exam, complete the winter maintenance assessment tool 
93.32 	requirements developed by the commissioner, and keep a written record describing the road, 
93.33 	parking lot, and property maintenance practices used. The written record must include the 
93.34 	type and rate of application of deicing materials used, the dates of treatment, and the weather 
94.1 	conditions for each event requiring deicing. The records must be kept for a minimum of six 
94.2 	years.
94.3 	(c) The liability of a commercial applicator who applies deicer but is not certified under 
94.4 	this section may not be determined under the standards provided in this subdivision.
94.5 		Subd. 4.Record keeping. (a) A certified commercial applicator or a company employing 
94.6 	one or more certified commercial applicators must maintain the following records as part 
94.7 	of the best management practices approved by the commissioner:
94.8 	(1) a copy of the applicator's certification approved by the commissioner and any 
94.9 	recertification;
94.10 	(2) evidence of passing the examination approved by the commissioner;
94.11 	(3) copies of the assessment tool requirements for winter maintenance developed by the 
94.12 	commissioner; and
94.13 	(4) a written record describing the practices used for road, parking lot, and property 
94.14 	maintenance.
94.15 	(b) The written record under paragraph (a), clause (4), must include the type and rate of 
94.16 	application of deicing materials used, the dates of treatment, and the weather conditions for 
94.17 	each event requiring deicing.
94.18 	(c) Records required under this subdivision must be kept for at least six years.
94.19 		Subd. 5.Penalty. The commissioner may revoke or decline to renew the certification 
94.20 	of a certified commercial applicator that violates this section or rules adopted under this 
94.21 	section.
94.22 		Subd. 6.Relation to other law. Nothing in this section affects municipal liability under 
94.23 	section 466.03.

94.24 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to claims 
94.25 	arising on or after that date.

94.26 	Sec. 83. Minnesota Statutes 2016, section 116.993, subdivision 2, is amended to read:
94.27 		Subd. 2.Eligible borrower. To be eligible for a loan under this section, a borrower 
94.28 	must:
94.29 	(1) be a small business corporation, sole proprietorship, partnership, or association;
94.30 	(2) be a potential emitter of pollutants to the air, ground, or water;
95.1 	(3) need capital for equipment purchases that will meet or exceed environmental 
95.2 	regulations or need capital for site investigation and cleanup;
95.3 	(4) have less fewer than 50 100 full-time equivalent employees; and
95.4 	(5) have an after tax after-tax profit of less than $500,000; and.
95.5 	(6) have a net worth of less than $1,000,000.

95.6 	Sec. 84. Minnesota Statutes 2016, section 116.993, subdivision 6, is amended to read:
95.7 		Subd. 6.Loan conditions. A loan made under this section must include:
95.8 	(1) an interest rate that is four percent or at or below one-half the prime rate, whichever 
95.9 	is greater not to exceed five percent;
95.10 	(2) a term of payment of not more than seven years; and
95.11 	(3) an amount not less than $1,000 or exceeding $50,000 $75,000.

95.12 	Sec. 85. Minnesota Statutes 2017 Supplement, section 169A.07, is amended to read:
95.13 	169A.07 FIRST-TIME DWI VIOLATOR; OFF-ROAD VEHICLE OR BOAT.
95.14 	A person who violates section 169A.20 (driving while impaired) while using an off-road 
95.15 	recreational vehicle or motorboat and who does not have a qualified prior impaired driving 
95.16 	incident is subject only to the criminal penalty provided in section 169A.25 (second-degree 
95.17 	driving while impaired), 169A.26 (third-degree driving while impaired), or 169A.27
95.18 	(fourth-degree driving while impaired); and loss of operating privileges as provided in 
95.19 	section 84.91, subdivision 1 (operation of snowmobiles or all-terrain vehicles by persons 
95.20 	under the influence of alcohol or controlled substances), or 86B.331, subdivision 1 (operation 
95.21 	of motorboats while using alcohol or with a physical or mental disability), whichever is 
95.22 	applicable. The person is not subject to the provisions of section 169A.275, subdivision 5
95.23 	(submission to the level of care recommended in chemical use assessment for repeat offenders 
95.24 	and offenders with alcohol concentration of 0.16 or more); 169A.277 (long-term monitoring); 
95.25 	169A.285 (penalty assessment); 169A.44 (conditional release); 169A.54 (impaired driving 
95.26 	convictions and adjudications; administrative penalties); or 169A.54, subdivision 11
95.27 	(chemical use assessment); the license revocation sanctions of sections 169A.50 to 169A.53
95.28 	(implied consent law) or 171.177 (revocation; search warrant); or the plate impoundment 
95.29 	provisions of section 169A.60 (administrative impoundment of plates).

95.30 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to violations 
95.31 	committed on or after that date.

96.1 	Sec. 86. Minnesota Statutes 2016, section 180.03, subdivision 2, is amended to read:
96.2 		Subd. 2.Fences. Every person, firm, or corporation that is or has been engaged in the 
96.3 	business of mining or removing iron ore, taconite, semitaconite or other minerals except 
96.4 	sand, crushed rock, and gravel shall erect and maintain, as a minimum, a three strand wire 
96.5 	fence along the outside perimeter of the excavation, open pit, or shaft of any mine in which 
96.6 	mining operations have ceased for a period of six consecutive months or longer. Based upon 
96.7 	local site conditions that may exist at shafts, caves, or open pits, the county mine inspector 
96.8 	may require more secure fencing such as barbed wire or mesh fence, or may require barriers, 
96.9 	appropriate signs, or any combination of the above, to reduce the possibility of accidental 
96.10 	falls. The county mine inspector may grant exemptions under subdivision 4. Where mining 
96.11 	operations have ceased and not resumed, the fence, barrier, signs, or combination of them
96.12 	required by this section shall be erected within two years from the date when the county 
96.13 	mine inspector directs the erection of fences, barriers, signs, or combination of them.

96.14 	Sec. 87. Minnesota Statutes 2016, section 180.03, subdivision 3, is amended to read:
96.15 		Subd. 3.Abandoned mines. Except as described in subdivision 4, when a mine is idle 
96.16 	or abandoned it is the duty of the inspector of mines to notify the person, firm, or corporation 
96.17 	that is or has been engaged in the business of mining to erect and maintain around all the 
96.18 	shafts, caves, and open pits of such mines a fence, barrier, appropriate signs, or combination 
96.19 	of them, suitable to warn of the presence of shafts, caves, or open pits and reduce the 
96.20 	possibility of accidentally falling into these shafts, caves, or open pits. If the mine has been 
96.21 	idled or abandoned, or if the person, firm, or corporation that has been engaged in the 
96.22 	business of mining no longer exists, the fee owner shall erect and maintain the fence, barrier, 
96.23 	or signs required by this section. If the fee owner fails to act, the county in which the mining 
96.24 	operation is located may, in addition to any other remedies available, abate the nuisance by 
96.25 	erecting or maintaining the fence, barrier, or signs and assessing the costs and related 
96.26 	expenses pursuant to section 429.101.

96.27 	Sec. 88. Minnesota Statutes 2016, section 180.03, subdivision 4, is amended to read:
96.28 		Subd. 4.Exemptions. (a) The portion of an excavation, cave, open or water-filled pit, 
96.29 	or shaft is exempt from the requirements of this section if:
96.30 	(1) it is located on property owned, leased, or administered by the Office of the 
96.31 	Commissioner of Iron Range Resources and Rehabilitation;
96.32 	(2) it is for the construction, operation, maintenance, or administration of:
97.1 	(i) grants-in-aid trails as defined in section 85.018;
97.2 	(ii) property owned or leased by a municipality, as defined in section 466.01, subdivision 
97.3 	1, that is intended or permitted to be used as a park, an open area for recreational purposes, 
97.4 	or for the provision of recreational services, including the creation of trails or paths without 
97.5 	artificial surfaces; or
97.6 	(iii) recreational use, as defined in section 604A.21, subdivisions 5 and 6, provided the 
97.7 	use is administered by a municipality, as defined in section 466.01, subdivision 1;
97.8 	(3) it is for economic development purposes under chapter 469; or
97.9 	(4) upon written application by the property owner, the county mine inspector may 
97.10 	exempt from the requirements of subdivision 2, any abandoned excavation, open pit, or 
97.11 	shaft whichdetermines that it is provided with fencing, barriers, appropriate signs, or 
97.12 	combinations of them, in a manner that is reasonably similar to the standards in subdivision 
97.13 	2, or which if, in the inspector's judgment, it does not constitute a safety hazard.
97.14 	(b) Where an exemption applies, there shall be, at a minimum, appropriate signs posted 
97.15 	by the recipient of the exemption consistent with section 97B.001, subdivision 4:
97.16 	(1) at each location of public access to the mining area restricting access to designated 
97.17 	areas and warning of possible dangers due to the presence of excavations, shafts, caves, or 
97.18 	open or water-filled pits;
97.19 	(2) prohibiting public access beyond the boundaries of the designated public access area; 
97.20 	and
97.21 	(3) identifying those areas where the property on which public access is allowed abuts 
97.22 	private property.
97.23 	(c) Where an exemption applies, to reduce the possibility of inadvertent access beyond 
97.24 	the boundaries of the designated public access area, any new fencing erected by the recipient 
97.25 	of the exemption in accordance with subdivision 2 or 3 shall be maintained by the recipient 
97.26 	of the exemption.
97.27 	(d) Notwithstanding section 180.10, limited openings in preexisting fencing may be 
97.28 	created and maintained by the recipient of the exemption or its agent to provide public 
97.29 	access to the designated public access area.
97.30 	(e) The county mine inspector has the authority to enter, examine, and inspect any and 
97.31 	all property exempted under this section at all reasonable times by day or by night, and, in 
98.1 	addition to enforcing the provisions of this chapter, may make recommendations regarding 
98.2 	the erection of fences, barriers, signs, or a combination of them.

98.3 	Sec. 89. Minnesota Statutes 2016, section 180.10, is amended to read:
98.4 	180.10 REMOVAL OF FENCE; GUARD.
98.5 	A worker, employee, or other person who opens, removes, or disturbs any fence, guard, 
98.6 	barrier, sign, or rail required by section 180.03 and fails to close or replace or have the same 
98.7 	closed or replaced again around or in front of any mine shaft, pit, chute, excavation, cave, 
98.8 	or land liable to cave, injure, or destroy, whether by accident, injury, or damage results, 
98.9 	either to the mine or those at work therein, or to any other person, shall be guilty of a 
98.10 	misdemeanor. A worker, employee, or other person who, in regard to any fence, guard, 
98.11 	barrier, sign, or rail, does any of the acts prohibited by section 609.52, commits theft of the 
98.12 	fence, guard, barrier, sign, or rail may be sentenced as provided in section 609.52.

98.13 	Sec. 90. [383A.606] DISCONTINUANCE OF RAMSEY SOIL AND WATER 
98.14 	CONSERVATION DISTRICT; TRANSFER OF DUTIES.
98.15 		Subdivision 1.Discontinuance. Notwithstanding section 103C.225, the Ramsey Soil 
98.16 	and Water Conservation District is discontinued effective July 1, 2018, and its duties and 
98.17 	authorities are transferred to the Ramsey County Board of Commissioners.
98.18 		Subd. 2.Transfer of duties and authorities. The Ramsey County Board of 
98.19 	Commissioners has the duties and authorities of a soil and water conservation district. All 
98.20 	contracts in effect on the date of the discontinuance of the district to which Ramsey Soil 
98.21 	and Water Conservation District is a party remain in force and effect for the period provided 
98.22 	in the contracts. The Ramsey County Board of Commissioners shall be substituted for the 
98.23 	Ramsey Soil and Water Conservation District as party to the contracts and succeed to the 
98.24 	district's rights and duties.
98.25 		Subd. 3.Transfer of assets. The Ramsey Soil and Water Conservation District Board 
98.26 	of Supervisors shall transfer the assets of the district to the Ramsey County Board of 
98.27 	Commissioners. The Ramsey County Board of Commissioners shall use the transferred 
98.28 	assets for the purposes of implementing the transferred duties and authorities.
98.29 		Subd. 4.Reestablishment. The Ramsey County Board of Commissioners may petition 
98.30 	the Minnesota Board of Water and Soil Resources to reestablish the Ramsey Soil and Water 
98.31 	Conservation District. Alternatively, the Minnesota Board of Water and Soil Resources 
98.32 	under its authority in section 103C.201, and after giving notice of corrective actions and 
99.1 	time to implement the corrective actions, may reestablish the Ramsey Soil and Water 
99.2 	Conservation District if it determines the goals established in section 103C.005 are not 
99.3 	being achieved. The Minnesota Board of Water and Soil Resources may reestablish the 
99.4 	Ramsey Soil and Water Conservation District under this subdivision without a referendum.

99.5 	EFFECTIVE DATE. This section is effective the day after the governing body of 
99.6 	Ramsey County and its chief clerical officer timely complete their compliance with Minnesota 
99.7 	Statutes, section 645.021, subdivisions 2 and 3.

99.8 	Sec. 91. Minnesota Statutes 2016, section 444.075, subdivision 1a, is amended to read:
99.9 		Subd. 1a.Authorization. Any municipality may build, construct, reconstruct, repair, 
99.10 	enlarge, improve, or in any other manner obtain facilities, and maintain and operate the 
99.11 	facilities inside or outside its corporate limits, and acquire by gift, purchase, lease, 
99.12 	condemnation, or otherwise any and all land and easements required for that purpose. The 
99.13 	authority hereby granted is in addition to all other powers with reference to the facilities 
99.14 	otherwise granted by the laws of this state or by the charter of any municipality. The authority 
99.15 	regarding storm sewers granted to municipalities which have territory within a watershed 
99.16 	which has adopted a watershed plan pursuant to section 103B.231 shall be exercised, with 
99.17 	respect to facilities acquired following the adoption of the watershed plan, only for facilities 
99.18 	which are not inconsistent with the watershed plan. The authority regarding storm sewers 
99.19 	granted to municipalities which have adopted local water management plans pursuant to 
99.20 	section 103B.235 shall be exercised, with respect to facilities acquired following the adoption 
99.21 	of a local plan, only for facilities which are not inconsistent with the local plan. Counties, 
99.22 	except counties in the seven-county metropolitan area, shall have the same authority granted 
99.23 	to municipalities by this subdivision except for areas of the county organized into cities and 
99.24 	areas of the county incorporated within a sanitary district established by special act of the 
99.25 	legislature.

99.26 	Sec. 92. Minnesota Statutes 2016, section 473.8441, subdivision 4, is amended to read:
99.27 		Subd. 4.Grant conditions. The commissioner shall administer grants so that the 
99.28 	following conditions are met:
99.29 	(a) A county must apply for a grant in the manner determined by the commissioner. The 
99.30 	application must describe the activities for which the grant will be used.
99.31 	(b) The activities funded must be consistent with the metropolitan policy plan and the 
99.32 	county master plan.
100.1 	(c) A grant must be matched by equal county local expenditures for the activities for 
100.2 	which the grant is made. A local expenditure may include, but is not limited to, an 
100.3 	expenditure by a local unit of government, tribal government, or private sector or nonprofit 
100.4 	organization.
100.5 	(d) All grant funds must be used for new activities or to enhance or increase the 
100.6 	effectiveness of existing activities in the county. Grant funds must not be used for research 
100.7 	or development of a product that would be patented, copyrighted, or a subject of trade 
100.8 	secrets.
100.9 	(e) Counties shall provide support to maintain effective municipal recycling where it is 
100.10 	already established.

100.11 	Sec. 93. Laws 2015, First Special Session chapter 4, article 4, section 136, as amended 
100.12 	by Laws 2017, chapter 93, article 2, section 149, is amended to read:
100.13 	Sec. 136. WILD RICE WATER QUALITY STANDARDS.
 100.14 	(a) Until the commissioner of the Pollution Control Agency amends rules refining the 
100.15 	wild rice water quality standard in Minnesota Rules, part 7050.0224, subpart 2, to consider 
100.16 	all independent research and publicly funded research and to include criteria for identifying 
100.17 	waters and a list of waters subject to the standard, implementation of the wild rice water 
100.18 	quality standard in Minnesota Rules, part 7050.0224, subpart 2, shall be limited to the 
100.19 	following, unless the permittee requests additional conditions:
100.20 	(1) when issuing, modifying, or renewing national pollutant discharge elimination system 
100.21 	(NPDES) or state disposal system (SDS) permits, the agency shall endeavor to protect wild 
100.22 	rice, and in doing so shall be limited by the following conditions:
100.23 	(i) the agency shall not require permittees to expend money for design or implementation 
100.24 	of sulfate treatment technologies or other forms of sulfate mitigation; and
100.25 	(ii) the agency may require sulfate minimization plans in permits; and
100.26 	(2) the agency shall not list waters containing natural beds of wild rice as impaired for 
100.27 	sulfate under section 303(d) of the federal Clean Water Act, United States Code, title 33, 
100.28 	section 1313, until the rulemaking described in this paragraph takes effect.
100.29 	(b) Upon the rule described in paragraph (a) taking effect, the agency may reopen permits 
100.30 	issued or reissued after the effective date of this section as needed to include numeric permit 
100.31 	limits based on the wild rice water quality standard.
101.1 	(c) The commissioner shall complete the rulemaking described in paragraph (a) by 
101.2 	January 15, 2019.

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

101.4 	Sec. 94. Laws 2016, chapter 189, article 3, section 48, is amended to read:
101.5 	Sec. 48. LAKE SERVICE PROVIDER FEASIBILITY REPORT.
 101.6 	The commissioner of natural resources shall report to the chairs of the house of 
101.7 	representatives and senate committees with jurisdiction over natural resources by January 
101.8 	15, 2019 2020, regarding the feasibility of expanding permitting to service providers as 
101.9 	described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in 
101.10 	the state. The report must:
101.11 	(1) include recommendations for state and local resources needed to implement the 
101.12 	program;
101.13 	(2) assess local government inspection roles under Minnesota Statutes, section 84D.105, 
101.14 	subdivision 2, paragraph (g); and
101.15 	(3) assess whether mechanisms to ensure that water-related equipment placed back into 
101.16 	the same body of water from which it was removed can adequately protect other water 
101.17 	bodies.

101.18 	Sec. 95. Laws 2017, chapter 93, article 2, section 155, subdivision 5, is amended to read:
101.19 		Subd. 5.Sunset. This section expires two six years from the day following final 
101.20 	enactment.

101.21 	Sec. 96. Laws 2017, chapter 93, article 2, section 163, is amended to read:
101.22 	Sec. 163. ACTION TO OBTAIN ACCESS PROHIBITED; CLEARWATER 
101.23 	COUNTY.
 101.24 	Before July 1, 2018, The commissioner of natural resources must not initiate a civil 
101.25 	action to obtain access to Island Lake FMHA Wildlife Management Area in Clearwater 
101.26 	County.

101.27 	Sec. 97. APPLICATION OF STORM WATER RULES TO TOWNSHIPS.
 101.28 	Until the Pollution Control Agency amends rules for storm water, Minnesota Rules, part 
101.29 	7090.1010, subpart 1, item B, subitem (1), only applies to the portions of the city or township 
102.1 	that are designated as urbanized under Code of Federal Regulations, title 40, section 122.26 
102.2 	(a)(9)(i)(A), and other platted areas within that jurisdiction.

102.3 	Sec. 98. RULEMAKING; DISPOSAL FACILITY CERTIFICATES.
 102.4 	(a) The commissioner of the Pollution Control Agency must amend Minnesota Rules, 
102.5 	part 7048.1000, subpart 4, item D, to require six contact hours of required training to renew 
102.6 	a type IV disposal facility certificate.
102.7 	(b) The commissioner may use the good cause exemption under Minnesota Statutes, 
102.8 	section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota 
102.9 	Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes, 
102.10 	section 14.388.

102.11 	Sec. 99. RECREATIONAL TRAILS; ENVIRONMENTAL REVIEW; 
102.12 	RULEMAKING.
 102.13 	(a) The Environmental Quality Board must amend Minnesota Rules, chapter 4410, to 
102.14 	be consistent with this section, including amending Minnesota Rules, part 4410.4300, subpart 
102.15 	37, as follows:
102.16 	(1) item A must be amended to read: "Constructing a trail at least 25 miles long on 
102.17 	forested or other naturally vegetated land for a recreational use unless exempted by part 
102.18 	4410.4600, subpart 14, item D. In applying this item, if a proposed trail will contain segments 
102.19 	of newly constructed trail and segments that will follow an existing trail but be designated 
102.20 	for a new motorized use, an EAW must be prepared if the sum of the quotients obtained by 
102.21 	dividing the length of the new construction by 25 miles and length of the existing but newly 
102.22 	designated trail by 25 miles equals or exceeds one. Additions and designations under items 
102.23 	C and D do not apply to this formula.";
102.24 	(2) item B must be amended to read: "Designating at least 25 miles of an existing trail 
102.25 	for a new motorized recreational use other than snowmobiling. In applying this item, if a 
102.26 	proposed trail will contain segments of newly constructed trail and segments that will follow 
102.27 	an existing trail but be designated for a new motorized use, an EAW must be prepared if 
102.28 	the sum of the quotients obtained by dividing the length of the new construction by 25 miles 
102.29 	and the length of the existing but newly designated trail by 25 miles equals or exceeds one. 
102.30 	Additions and designations under items C and D do not apply to this formula.";
102.31 	(3) a new item C must be adopted to read: "When adding a new motorized recreational 
102.32 	use or seasonal motorized recreational use to an existing motorized recreational trail if the 
103.1 	treadway width is not expanded as a result of the added use, a mandatory EAW is not 
103.2 	required."; and
103.3 	(4) a new item D must be adopted to read: "When designating an existing, legally 
103.4 	constructed route for motorized recreational use, a mandatory EAW is not required."
103.5 	(b) The board may use the good cause exemption rulemaking procedure under Minnesota 
103.6 	Statutes, section 14.388, subdivision 1, clause (3), to adopt rules under this section, and 
103.7 	Minnesota Statutes, section 14.386, does not apply except as provided under Minnesota 
103.8 	Statutes, section 14.388.

103.9 	Sec. 100. WETLAND REPLACEMENT; FRAMEWORKS FOR IN-LIEU FEE 
103.10 	PROGRAM.
 103.11 	The Board of Water and Soil Resources, in cooperation with the United States Army 
103.12 	Corps of Engineers, may complete the planning frameworks and other program application 
103.13 	requirements necessary for federal approval of an in-lieu fee program, as authorized under 
103.14 	Minnesota Statutes, section 103G.2242, in the Red River basin and the greater than 80 
103.15 	percent area. The planning frameworks must contain a prioritization strategy for selecting 
103.16 	and implementing mitigation activities based on a watershed approach that includes 
103.17 	consideration of historic resource loss within watersheds and the extent to which mitigation 
103.18 	can address priority watershed needs. The board must consider the recommendations of the 
103.19 	report "Siting of Wetland Mitigation in Northeast Minnesota," dated March 7, 2014, and 
103.20 	implementation of Minnesota Statutes, section 103B.3355, paragraphs (e) and (f), in 
103.21 	developing proposed planning frameworks for applicable watersheds. When completing 
103.22 	the work and pursuing approval of an in-lieu fee program, the board must do so consistent 
103.23 	with the applicable requirements, stakeholder and agency review processes, and approval 
103.24 	time frames in Code of Federal Regulations, title 33, section 332. The board must submit 
103.25 	any completed planning frameworks to the chairs and ranking minority members of the 
103.26 	house of representatives and the senate committees and divisions with jurisdiction over 
103.27 	environment and natural resources upon receiving federal approval.

103.28 	Sec. 101. TEMPORARY ENFORCEMENT OF GROUNDWATER 
103.29 	APPROPRIATION PERMIT REQUIREMENTS.
 103.30 	(a) Until July 1, 2019, the commissioner of natural resources must not expend funds to 
103.31 	suspend or revoke a water appropriation permit, issue an order requiring a violation to be 
103.32 	corrected, assess monetary penalties, or otherwise take enforcement action against a water 
103.33 	appropriation permit holder if the suspension, revocation, order, penalty, or other enforcement 
104.1 	action is based solely on a violation of a permit requirement added to a groundwater 
104.2 	appropriation permit within the north and east metro groundwater management area as a 
104.3 	result of a court order issued in 2017.
104.4 	(b) The commissioner of natural resources may continue to use all the authorities granted 
104.5 	to the commissioner under Minnesota Statutes, section 103G.287, to manage groundwater 
104.6 	resources within the north and east groundwater management area.

104.7 	Sec. 102. GROUNDWATER MANAGEMENT AREA PERMIT REQUIREMENTS.
 104.8 	(a) Notwithstanding water appropriation permit requirements added by the commissioner 
104.9 	of natural resources as a result of a court order issued in 2017, a public water supplier located 
104.10 	in the seven-county metropolitan area within a designated groundwater management area:
104.11 	(1) is not required to revise a water supply plan to include contingency plans to fully or 
104.12 	partially convert its water supplies to surface water;
104.13 	(2) may prepare, enact, and enforce commercial or residential irrigation bans or alternative 
104.14 	measures that achieve similar water use reductions when notified by the commissioner of 
104.15 	natural resources that lake levels have fallen below court-ordered levels; and
104.16 	(3) is not required to use per capita residential water use as a measure for purposes of 
104.17 	water use reduction goals, plans, and implementation and may submit water use plans and 
104.18 	reports that use a measure other than per capita residential water use.
104.19 	(b) This section expires July 1, 2019.

104.20 	Sec. 103. 1837 CEDED TERRITORY FISHERIES TECHNICAL COMMITTEE.
 104.21 	The commissioner of natural resources may invite at least two fish managers as designated 
104.22 	by the commissioner to attend all meetings of the 1837 Ceded Territory Fisheries Technical 
104.23 	Committee.

104.24 	Sec. 104. CARBON MONOXIDE EXPOSURE; FISH HOUSES AND ICE 
104.25 	SHELTERS; REPORT.
 104.26 	The commissioner of natural resources must work with fish house and ice shelter 
104.27 	manufacturers and other interested parties to identify best practices to reduce fish house 
104.28 	and ice shelter user exposure to carbon monoxide. The commissioner must increase outreach 
104.29 	efforts relating to the dangers of carbon monoxide exposure in fish houses and report 
104.30 	recommendations to the chairs of the house of representatives and senate committees and 
105.1 	divisions with jurisdiction over environment and natural resources policy by January 15, 
105.2 	2019.

105.3 	Sec. 105. NONPOINT PRIORITY FUNDING PLAN; REPORT.
 105.4 	The Board of Water and Soil Resources, in cooperation with representatives of state 
105.5 	agencies, local governments, tribal governments, private and nonprofit organizations, and 
105.6 	others must review the nonpoint priority funding plan under Minnesota Statutes, section 
105.7 	114D.50, subdivision 3a. By January 31, 2019, the board must submit a report to the chairs 
105.8 	and ranking minority members of the house of representatives and senate committees and 
105.9 	divisions with jurisdiction over environment and natural resources that contains 
105.10 	recommendations to improve the effectiveness of nonpoint priority funding plans to meet 
105.11 	the requirements in Minnesota Statutes, section 114D.50, subdivision 3a, the purposes in 
105.12 	Minnesota Statutes, section 114D.50, subdivision 3, and the watershed and groundwater 
105.13 	restoration and protection goals of Minnesota Statutes, chapters 103B and 114D.

105.14 	Sec. 106. HILL-ANNEX MINE STATE PARK; MANAGEMENT AND OPERATION.
 105.15 	(a) The commissioner of natural resources must operate the Hill-Annex Mine State Park 
105.16 	for the purposes it was established through June 30, 2021. The commissioner must work 
105.17 	with the group established under Laws 2017, chapter 93, article 2, section 156, to review 
105.18 	park activities and the alternate operating model developed and identify options for 
105.19 	sustainable and viable operation of the park site. The commissioner must submit 
105.20 	recommendations to the chairs and ranking minority members of the house of representatives 
105.21 	and senate committees and divisions with jurisdiction over the environment and natural 
105.22 	resources by January 15, 2021.
105.23 	(b) The commissioner of natural resources must work with the city of Calumet, other 
105.24 	neighboring cities and townships, and other local units of government to identify and 
105.25 	coordinate volunteers to supplement the Department of Natural Resources' park operations 
105.26 	to the extent allowable under state law and rules.

105.27 	Sec. 107. DEMOLITION DEBRIS LANDFILLS; PERMITTING; GROUNDWATER 
105.28 	EVALUATION.
 105.29 	(a) In issuing or reissuing a class I demolition land disposal facility permit, the Minnesota 
105.30 	Pollution Control Agency must consider environmental benefits and impacts, social and 
105.31 	economic factors, the feasibility and practicability of the permit conditions, and whether 
105.32 	the burden of any resulting tax or fee is reasonable, feasible, or practicable. A permit issued 
106.1 	under this section must be in accordance with Minnesota Rules, part 7035.2825, and the 
106.2 	Pollution Control Agency's Demolition Landfill Guidance published August 2005. The 
106.3 	Pollution Control Agency must not impose permit conditions on class 1 demolition land 
106.4 	disposal facilities, including requirements for enhanced cover and hydrogeologic sampling, 
106.5 	analysis, and reporting, that are not contained in current rules or the Demolition Landfill 
106.6 	Guidance unless revised rules are adopted reflecting the restrictions on permits required by 
106.7 	this paragraph.
106.8 	(b) The Pollution Control Agency must use existing appropriations to contract with an 
106.9 	independent laboratory to develop a sampling protocol and to collect, analyze, and evaluate 
106.10 	groundwater quality data from demolition debris land disposal facilities under a monitoring 
106.11 	program in accordance with the Pollution Control Agency's Demolition Landfill Guidance 
106.12 	published August 2005. Data on groundwater quality must be evaluated in reference to and 
106.13 	in accordance with the definition of pollutant under Minnesota Statutes, section 103H.005, 
106.14 	subdivision 11, based on the Minnesota Department of Health's adopted health risk limits 
106.15 	and health risk values. In evaluating pollutants, a laboratory must consider whether pollutant 
106.16 	concentrations may originate from activities not associated with the permitted demolition 
106.17 	debris land disposal facility. By November 1, 2018, the agency must submit a report of the 
106.18 	evaluation to the chairs and ranking minority members of the senate and house of 
106.19 	representatives committees with jurisdiction over environment and natural resources finance.

106.20 	Sec. 108. PUBLIC DRAINAGE DITCH BUFFER STRIP; PLANTING AND 
106.21 	MAINTENANCE.
 106.22 	With the consent of the property owner where the drainage ditch buffer will be located, 
106.23 	a drainage authority, as defined in Minnesota Statutes, section 103E.005, subdivision 9, 
106.24 	may plant and maintain 16-1/2-foot ditch buffer strips that meet the width and vegetation 
106.25 	requirements of Minnesota Statutes, section 103E.021, before acquiring and compensating 
106.26 	for the buffer strip land rights according to Minnesota Statutes, chapter 103E. Planting and 
106.27 	maintenance costs may be paid in accordance with Minnesota Statutes, chapter 103E. This 
106.28 	section expires June 30, 2019.

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

106.30 	Sec. 109. WILD RICE; LEGISLATIVE FINDINGS.
 106.31 	(a) The legislature finds that naturally occurring wild rice is an ecologically and culturally 
106.32 	important aquatic plant resource found in certain waters within the state, which serves as a 
106.33 	food source for wildlife and humans. The legislature further finds that in recognition of the 
107.1 	unique importance of this resource, the Pollution Control Agency, in conjunction with 
107.2 	Minnesota Indian tribes, has identified and listed, in rule, select wild-rice waters for which 
107.3 	the water quality and the aquatic habitat necessary to support the propagation and 
107.4 	maintenance of wild rice must not be materially impaired or degraded. The legislature also 
107.5 	finds that identifying and listing additional wild-rice waters based upon their exceptional 
107.6 	wild-rice characteristics is an appropriate method of protecting naturally occurring wild 
107.7 	rice.
107.8 	(b) The legislature further finds that federal law vests broad authority in the state to 
107.9 	define beneficial uses for waters for the state and grants the state the primary responsibility 
107.10 	and right to plan the development and use of the state's water resources and to specify 
107.11 	appropriate water uses to be achieved and protected. The legislature also finds that certain 
107.12 	waters of the state are used to irrigate wild rice intentionally grown as an agricultural crop, 
107.13 	which is an appropriate beneficial use to be achieved and protected and which is the only 
107.14 	established beneficial use specifically pertaining to wild rice. The legislature also finds that 
107.15 	Minnesota has a unique numeric water quality standard for sulfate in rule to protect this 
107.16 	beneficial use to permit the use of waters for irrigation for the production of wild rice that 
107.17 	is based on outdated information and ignores the current scientific understanding of the 
107.18 	potential impacts of sulfate on wild rice.
107.19 	(c) The legislature further finds that it is contrary to the public welfare to impose 
107.20 	requirements or burdens on regulated parties in Minnesota on the basis of a water quality 
107.21 	standard that ignores current science. The legislature also finds that the water quality standard 
107.22 	for sulfate has not been enforced in Minnesota since it was adopted in 1973, that the Pollution 
107.23 	Control Agency has not designated in rules any waters subject to the water quality standard 
107.24 	for sulfate, and that initiating enforcement of the existing obsolete standard would impose 
107.25 	prohibitively expensive burdens on regulated parties with potentially grave economic impacts 
107.26 	on Minnesota communities and industry.
107.27 	(d) In recognition of the existence in rule of a water quality standard for sulfate that is 
107.28 	not supported by current scientific information, in recognition of the potentially grave 
107.29 	consequences that would occur from enforcement of that obsolete standard, and recognizing 
107.30 	that the administrative process to repeal the rule has proven to be inefficient and will not 
107.31 	provide the regulatory certainty required in a timely manner in the absence of legislative 
107.32 	action, the legislature finds that the most effective means to serve the welfare of the state 
107.33 	is to enact sections 110 to 115 to eliminate the water quality standard for sulfate, leaving 
107.34 	in place sufficient other provisions in law and rule for the protection of naturally occurring 
107.35 	wild rice, including but not limited to the listing of additional select wild-rice waters.

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

108.2 	Sec. 110. WATER QUALITY STANDARD FOR SULFATE; RULEMAKING.
 108.3 	The commissioner of the Pollution Control Agency may not adopt, modify, or proceed 
108.4 	with any revisions to the rules pertaining to water quality standards for sulfate for wild-rice 
108.5 	waters in Minnesota Rules, part 7050.0224, subpart 2, that were disapproved by the chief 
108.6 	administrative law judge on January 11, 2018, without again going through the rulemaking 
108.7 	procedures under Minnesota Statutes, sections 14.05 to 14.28, except Minnesota Statutes, 
108.8 	section 14.101, does not apply.

108.9 	EFFECTIVE DATE. This section is effective retroactively from January 11, 2018.

108.10 	Sec. 111. IDENTIFICATION AND LISTING OF WILD-RICE WATERS.
 108.11 	The commissioner of the Pollution Control Agency may evaluate the waters of the state 
108.12 	to determine if any additional waters containing naturally occurring wild rice have exceptional 
108.13 	wild-rice characteristics. The commissioner may, by rule, identify and list these waters as 
108.14 	[WR] waters where the water quality and the aquatic habitat necessary to support the 
108.15 	propagation and maintenance of wild rice must not be materially impaired or degraded. 
108.16 	Before identifying and listing a wild-rice water, the commissioner must establish, in a 
108.17 	separate and prior rulemaking, criteria to be used in identifying and listing wild-rice waters. 
108.18 	The criteria must include the following, each of which must be met before a water body 
108.19 	can be identified and listed as a wild-rice water:
108.20 	(1) the history of harvesting wild rice;
108.21 	(2) minimum acreage; and
108.22 	(3) minimum density of wild rice.

108.23 	Sec. 112. APPLICATION OF WATER QUALITY STANDARD FOR SULFATE 
108.24 	FOR WILD-RICE WATERS.
 108.25 	The commissioner of the Pollution Control Agency must not apply the water quality 
108.26 	standard for sulfate for wild-rice waters nullified in this act when issuing, modifying, or 
108.27 	renewing national pollutant discharge elimination system or state disposal system permits. 
108.28 	The commissioner of the Pollution Control Agency must take all steps necessary to conform 
108.29 	the agency's rules and practices to this act and to ensure that no regulated party is required 
108.30 	to take any action or bear any burden arising from the nullified water quality standard for 
108.31 	sulfate unless requested by the permittee.

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

109.2 	Sec. 113. APPLICATION OF EQUATION-BASED WATER QUALITY STANDARD 
109.3 	FOR WILD-RICE WATERS.
 109.4 	The commissioner of the Pollution Control Agency must not apply the proposed 
109.5 	equation-based sulfate standard rejected by the chief administrative law judge on January 
109.6 	11, 2018, including as a numeric translator to the narrative sulfate standard for wild rice 
109.7 	under Minnesota Rules, part 7050.0150, subpart 3, or 7050.0224, subpart 1, when issuing, 
109.8 	modifying, or renewing national pollutant discharge elimination system or state disposal 
109.9 	system permits.

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

109.11 	Sec. 114. APPLICATION OF WATER QUALITY STANDARDS; IRRIGATION.
 109.12 	The commissioner of the Pollution Control Agency must not apply a water quality 
109.13 	standard established to protect water quality for purposes of permitting the water's use for 
109.14 	irrigation without significant damage or adverse effects upon crops or vegetation, including 
109.15 	water used for the production of wild rice, unless the water is appropriated for irrigation 
109.16 	use.

109.17 	Sec. 115. NULLIFICATION OF WATER QUALITY STANDARD FOR SULFATE 
109.18 	IN WILD-RICE WATERS.
 109.19 	(a) Notwithstanding Minnesota Rules, part 7050.0224, subpart 2, there is no numeric, 
109.20 	nonnarrative, water quality standard for sulfates in class 4A waters in the state until the 
109.21 	commissioner of the Pollution Control Agency adopts a standard in accordance with section 
109.22 	110.
109.23 	(b) That portion of Minnesota Rules, part 7050.0224, subpart 2, that conflicts with 
109.24 	paragraph (a) is nullified and does not have the force and effect of law.

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

109.26 	Sec. 116. WILD RICE REPORT.
 109.27 	(a) The commissioner of natural resources must convene a work group consisting of 
109.28 	state, tribal, and public experts familiar with the agronomy and hydrology that supports 
109.29 	naturally occurring wild rice. The work group's purpose is to advise the commissioner in 
109.30 	the preparation of a report on wild rice.
110.1 	(b) The commissioner of natural resources must submit a report to the state's tribal 
110.2 	governments and the chairs and ranking minority members of the legislative committees 
110.3 	and divisions with jurisdiction over environment and natural resources by January 15, 2019, 
110.4 	that:
110.5 	(1) provides recommendations on actions necessary to preserve and improve the health 
110.6 	of existing natural wild rice beds;
110.7 	(2) includes recommendations on monitoring the effectiveness of restoration and 
110.8 	protection activities;
110.9 	(3) identifies best management practices for natural wild rice protection and restoration 
110.10 	and recommendations for expanding the use of effective best management practices; and
110.11 	(4) identifies areas in which to implement the best management practices.

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

110.13 	ARTICLE 5
110.14 	JOBS AND ENERGY APPROPRIATIONS

110.15	Section 1. APPROPRIATIONS
 	
110.16 	The sums shown in the columns under "Appropriations" are added to appropriations in 
110.17 	Laws 2017, chapter 94, or other law to the specified agencies. The appropriations are from 
110.18 	the general fund, or another named fund, and are available for the fiscal years indicated for 
110.19 	each purpose. The figures "2018" and "2019" used in this article mean that the appropriations 
110.20 	listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019, 
110.21 	respectively. Appropriations for the fiscal year ending June 30, 2018, are effective the day 
110.22 	following final enactment. Reductions may be taken in either fiscal year.

110.23				APPROPRIATIONS
	
110.24				Available for the Year
	
110.25				Ending June 30
	
110.26					2018
		2019

110.27
110.28	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

110.29	Subdivision 1.Total Appropriation
 	$
	0
	$
	20,320,000

110.30	Appropriations by Fund
	
110.31	General
	-0-
	$19,720,000
	
111.1
111.2	Renewable 
Development
	-0-
	$600,000
	
111.3 	The amounts that may be spent for each 
111.4 	purpose are specified in the following 
111.5 	subdivisions.

111.6	Subd. 2.Business and Community Development
 		0
		5,320,000

111.7	Appropriations by Fund
	
111.8	General
	-0-
	$4,720,000
	
111.9111.10
	Renewable 
Development
	-0-
	$600,000
	
111.11 	(a) $50,000 in fiscal year 2019 is for a grant 
111.12 	to Advocating Change Together to address 
111.13 	barriers to employment for people with 
111.14 	disabilities and provide skills training. This 
111.15 	appropriation is available until June 30, 2021.
111.16 	(b) $400,000 in fiscal year 2019 is for a grant 
111.17 	to Project Build Minnesota for a statewide 
111.18 	public awareness campaign to encourage 
111.19 	middle school and high school students to 
111.20 	consider careers in the construction industry, 
111.21 	with a special emphasis on reaching 
111.22 	individuals and groups that are economically 
111.23 	disadvantaged or historically underrepresented 
111.24 	in the construction industry. Grant funds must 
111.25 	be used to develop educational resources, 
111.26 	including a Web site; perform outreach to 
111.27 	students, parents, guidance counselors, and 
111.28 	others about opportunities in the construction 
111.29 	industry; and partner with educational 
111.30 	institutions and nonprofits to offer technical 
111.31 	training. This is a onetime appropriation.
111.32 	(c) $1,500,000 in fiscal year 2019 is for a grant 
111.33 	to the city of Cambridge for costs associated 
111.34 	with relocating and constructing a propane 
111.35 	distribution facility and for costs associated 
112.1 	with demolition, cleanup and restoration of 
112.2 	the existing propane facility. Eligible costs 
112.3 	include: land acquisition, site preparation and 
112.4 	improvements, moving expenses, building 
112.5 	construction, rail construction, rail switch 
112.6 	construction, demolition, environmental 
112.7 	remediation, engineering, and other necessary 
112.8 	site improvements. This is a onetime 
112.9 	appropriation and is available until the project 
112.10 	is completed or abandoned subject to 
112.11 	Minnesota Statutes, section 16A.642.
112.12 	(d) $590,000 in fiscal year 2019 is for grants 
112.13 	to centers for independent living under 
112.14 	Minnesota Statutes, section 268A.11. The 
112.15 	grant money under this paragraph must be 
112.16 	used to hire eight employees to provide 
112.17 	services to veterans and to provide veterans 
112.18 	with other targeted services. This is a onetime 
112.19 	appropriation and is available until June 30, 
112.20 	2021.
112.21 	(e) $150,000 in fiscal year 2019 is for transfer 
112.22 	to the Cook County Higher Education Board 
112.23 	to provide educational programming and 
112.24 	academic support services to remote regions 
112.25 	in northeastern Minnesota. This is a onetime 
112.26 	appropriation.
112.27 	(f) $250,000 in fiscal year 2019 is for a grant 
112.28 	to Logistic Specialties, Inc. to create a pilot 
112.29 	workforce and development program in the 
112.30 	east metropolitan area focused on government 
112.31 	contract procurement and targeted to low- and 
112.32 	moderate-income communities of color. Every 
112.33 	six months, beginning on December 15, 2019, 
112.34 	the commissioner of employment and 
112.35 	economic development must submit a brief 
113.1 	update on the progress of the pilot project to 
113.2 	the chairs and ranking minority members of 
113.3 	the legislative committees with jurisdiction 
113.4 	over economic development. A final report 
113.5 	on pilot outcomes must be submitted to the 
113.6 	chairs and ranking minority members of the 
113.7 	legislative committees with jurisdiction over 
113.8 	economic development by February 15, 2020. 
113.9 	This is a onetime appropriation and funds are 
113.10 	available until June 30, 2020.
113.11 	(g) $500,000 in fiscal year 2019 is for job 
113.12 	training grants under Minnesota Statutes, 
113.13 	section 116L.42. This is a onetime 
113.14 	appropriation.
113.15 	(h) $250,000 in fiscal year 2019 is for a grant 
113.16 	to the Hallie Q. Brown Community Center, 
113.17 	Inc., for youth intervention services through 
113.18 	the community ambassadors and youth 
113.19 	employment program. This is a onetime 
113.20 	appropriation.
113.21 	(i) Notwithstanding Minnesota Statutes, 
113.22 	section 116C.779, subdivision 1, paragraph 
113.23 	(k), $600,000 in fiscal year 2019 is from the 
113.24 	renewable development account in the special 
113.25 	revenue fund established in Minnesota 
113.26 	Statutes, section 116C.779, subdivision 1, for 
113.27 	a grant to the Board of Regents of the 
113.28 	University of Minnesota for academic and 
113.29 	applied research through MnDRIVE at the 
113.30 	Natural Resources Research Institute. Of this 
113.31 	amount, $300,000 is to develop and 
113.32 	demonstrate biomass conversion technology 
113.33 	for higher value fuels and $300,000 is to 
113.34 	develop and demonstrate advanced biogas 
113.35 	technologies for clean methane fuels. Both 
114.1 	programs must focus on translation and 
114.2 	deployment of technologies developed in 
114.3 	partnerships between industry and the 
114.4 	University of Minnesota. This is a onetime 
114.5 	appropriation.
114.6 	(j) $230,000 in fiscal year 2019 is for a grant 
114.7 	to a city of the second class that is designated 
114.8 	as an economically depressed area by the 
114.9 	United States Department of Commerce. The 
114.10 	grant is for economic development, 
114.11 	redevelopment, and job creation programs and 
114.12 	projects. This is a onetime appropriation and 
114.13 	is available until June 30, 2021.
114.14 	(k)(1) $300,000 in fiscal year 2019 for a grant 
114.15 	to the Minnesota Environmental Science and 
114.16 	Economic Review Board (MESERB) to 
114.17 	review water quality regulation and national 
114.18 	pollutant discharge elimination system permits 
114.19 	(NPDES). This grant is subject to Minnesota 
114.20 	Statutes, section 16B.98. MESERB may select 
114.21 	the water quality regulations and permits to 
114.22 	be reviewed but must give preference to 
114.23 	reviewing any draft NPDES permit that has 
114.24 	new effluent limit requirements for a publicly 
114.25 	owned wastewater treatment facility outside 
114.26 	the seven county metropolitan area. Any 
114.27 	permit review must analyze the technical 
114.28 	accuracy of the permit and the impact on both 
114.29 	business and residential rates, the water quality 
114.30 	benefit of permit compliance, and the 
114.31 	anticipated funding for the permittee from 
114.32 	federal and state sources. This is a onetime 
114.33 	appropriation and is available until June 30, 
114.34 	2021.
115.1 	(2) Upon completion of the permit review, 
115.2 	MESERB must provide a copy of the review 
115.3 	to the permittee and the commissioner of the 
115.4 	Pollution Control Agency. MESERB must 
115.5 	also submit a report summarizing its findings 
115.6 	in each permit review performed in the 
115.7 	previous calendar year to the chairs and 
115.8 	ranking minority members of the legislative 
115.9 	committees with jurisdiction over capital 
115.10 	investment, environmental policy and finance, 
115.11 	and economic development.
115.12 	(l) $500,000 in fiscal year 2019 is for a grant 
115.13 	to Comunidades Latinas Unidas en Servicio 
115.14 	(CLUES) to acquire property and to construct, 
115.15 	furnish, and equip a new education and 
115.16 	technology institute connected to CLUES 
115.17 	headquarters in St. Paul to provide education 
115.18 	and community gathering space. This 
115.19 	appropriation is available when the 
115.20 	commissioner of management and budget 
115.21 	determines that sufficient resources have been 
115.22 	committed to complete the project, as required 
115.23 	by Minnesota Statutes, section 16A.502. This 
115.24 	appropriation is onetime and available until 
115.25 	the project is completed or abandoned, subject 
115.26 	to Minnesota Statutes, section 16A.642.

115.27	Subd. 3.Broadband Development
 		0
		15,000,000
	
115.28 	(a) $15,000,000 in fiscal year 2019 is for 
115.29 	transfer to the border-to-border broadband 
115.30 	fund account in the special revenue fund 
115.31 	established under Minnesota Statutes, section 
115.32 	116J.396 and may be used for purposes 
115.33 	provided in Minnesota Statutes, section 
115.34 	116J.395. This appropriation is onetime and 
115.35 	is available until spent. Of this appropriation, 
116.1 	up to three percent is for costs incurred by the 
116.2 	commissioner to administer Minnesota 
116.3 	Statutes, section 116J.395. Administrative 
116.4 	costs may include the following activities 
116.5 	related to measuring progress toward the 
116.6 	state's broadband goals established in 
116.7 	Minnesota Statutes, section 237.012:
116.8 	(1) collecting broadband deployment data from 
116.9 	Minnesota providers, verifying its accuracy 
116.10 	through on-the-ground testing, and creating 
116.11 	state and county maps available to the public 
116.12 	showing the availability of broadband service 
116.13 	at various upload and download speeds 
116.14 	throughout Minnesota;
116.15 	(2) analyzing the deployment data collected 
116.16 	to help inform future investments in broadband 
116.17 	infrastructure; and
116.18 	(3) conducting business and residential surveys 
116.19 	that measure broadband adoption and use in 
116.20 	the state.
116.21 	Data provided by a broadband provider under 
116.22 	this subdivision is nonpublic data under 
116.23 	Minnesota Statutes, section 13.02, subdivision 
116.24 	9. Maps produced under this subdivision are 
116.25 	public data under Minnesota Statutes, section 
116.26 	13.03.
116.27 	(b) Of the amount appropriated in paragraph 
116.28 	(a), $750,000 is for grants to satellite 
116.29 	broadband providers under Minnesota 
116.30 	Statutes, section 116J.395.

116.31	Sec. 3. HOUSING FINANCE AGENCY
 	$
	0
	$
	1,880,000
	
116.32 	(a) $1,000,000 in fiscal year 2019 is for 
116.33 	transfer to the housing development fund for 
117.1 	the programs in Minnesota Statutes, sections 
117.2 	462A.201, subdivision 2, paragraph (a), clause 
117.3 	(4), and 462A.204, subdivision 8. The agency 
117.4 	may allocate this appropriation as necessary 
117.5 	to these two programs to facilitate the 
117.6 	Homework Starts with Home program. This 
117.7 	is a onetime appropriation.
117.8 	(b) $500,000 in fiscal year 2019 is for park 
117.9 	infrastructure grants under Minnesota Statutes, 
117.10 	section 462A.2035, subdivision 1b. This is a 
117.11 	onetime appropriation.
117.12 	(c) $380,000 in fiscal year 2019 is for grants 
117.13 	to organizations to provide lead risk 
117.14 	assessments by a lead inspector or a lead risk 
117.15 	assessor licensed by the commissioner 
117.16 	pursuant to Minnesota Statutes, section 
117.17 	144.9505, to test residential units for the 
117.18 	presence of lead hazards. Grant programs 
117.19 	receiving funding under this section must 
117.20 	provide funding for lead risk assessments for 
117.21 	properties built before 1978 to:
117.22 	(1) landlords of residential buildings for 
117.23 	testing on units where the tenant's income does 
117.24 	not exceed 60 percent of area median income; 
117.25 	or
117.26 	(2) tenants with an income that does not 
117.27 	exceed 60 percent of area median income.
117.28 	The commissioner shall award grant funding 
117.29 	to target grant resources to landlords and 
117.30 	tenants where there are high concentrations 
117.31 	of lead poisoning in children based on the 
117.32 	information provided from the commissioner 
117.33 	of health. Up to ten percent of the grant may 
117.34 	be used to administer the grant and provide 
118.1 	education and outreach about lead health 
118.2 	hazards. This is a onetime appropriation.

118.3	Sec. 4. DEPARTMENT OF COMMERCE
 	$
	0
	$
	7,100,000
	
118.4 	This appropriation is from the renewable 
118.5 	development fund.
118.6 	(a) Notwithstanding Minnesota Statutes, 
118.7 	section 116C.779, subdivision 1, paragraph 
118.8 	(k), $3,000,000 in fiscal year 2019 is from the 
118.9 	renewable development account in the special 
118.10 	revenue fund under Minnesota Statutes, 
118.11 	section 116C.779, subdivision 1, for the local 
118.12 	government emerald ash borer removal grant 
118.13 	program under Minnesota Statutes, section 
118.14 	216C.437. This appropriation is onetime and 
118.15 	available until June 30, 2021.
118.16 	(b)(1) $1,000,000 in fiscal year 2019 is from 
118.17 	the renewable development account in the 
118.18 	special revenue fund under Minnesota 
118.19 	Statutes, section 116C.779, subdivision 1, to 
118.20 	fund grants for demonstration projects that 
118.21 	assess the technical and economic 
118.22 	effectiveness of deploying energy storage 
118.23 	systems to restore electrical energy to critical 
118.24 	health care facilities following electrical 
118.25 	outages due to storms or other catastrophic 
118.26 	events. This is a onetime appropriation.
118.27 	(2) The commissioner of commerce shall 
118.28 	endeavor to make grant awards under this 
118.29 	section for projects at critical health care 
118.30 	facilities located in all regions of the state.
118.31 	(3) For the purposes of this paragraph, "energy 
118.32 	storage system" means a commercially 
118.33 	available technology capable of (i) absorbing 
118.34 	and storing electrical energy, and (ii) 
119.1 	dispatching sorted electrical energy for use at 
119.2 	a later time.
119.3 	(c) $1,100,000 in fiscal year 2019 is from the 
119.4 	renewable development account in the special 
119.5 	revenue fund under Minnesota Statutes, 
119.6 	section 116C.779, subdivision 1, for the 
119.7 	residential biomass heating system grant 
119.8 	program under Minnesota Statutes, section 
119.9 	216C.419. This is a onetime appropriation and 
119.10 	available until June 30, 2020.
119.11 	(d) Notwithstanding Minnesota Statutes, 
119.12 	section 116C.779, subdivision 1, paragraph 
119.13 	(k), $2,000,000 in fiscal year 2019 is 
119.14 	appropriated from the renewable development 
119.15 	account in the special revenue fund established 
119.16 	in Minnesota Statutes, section 116C.779, 
119.17 	subdivision 1, to the commissioner for a grant 
119.18 	to the public utility that owns the Prairie Island 
119.19 	nuclear generation plant, for the following 
119.20 	purposes:
119.21 	(1) $1,000,000 is to conduct a study to 
119.22 	determine the most rapid, safe, and economical 
119.23 	methods to remove spent nuclear fuel from 
119.24 	the independent spent fuel storage installations 
119.25 	at the Prairie Island and Monticello nuclear 
119.26 	electric generating plants, including, but not 
119.27 	limited to, an evaluation of alternative modes 
119.28 	of transport, possible routes, and infrastructure 
119.29 	needs; and
119.30 	(2) $1,000,000 is to support the preparation 
119.31 	of applications by independent private parties 
119.32 	seeking a license from the Nuclear Regulatory 
119.33 	Commission to establish a consolidated 
119.34 	interim storage facility that could store spent 
119.35 	nuclear fuel currently stored at the independent 
120.1 	spent fuel storage installations at the 
120.2 	Monticello and Prairie Island nuclear electric 
120.3 	generating plants.
120.4 	By July 15, 2019, the public utility that owns 
120.5 	the Prairie Island nuclear electric generating 
120.6 	plant must submit a report to the chairs and 
120.7 	ranking minority members of the legislative 
120.8 	committees with jurisdiction over electric 
120.9 	utilities and to the commissioner describing 
120.10 	the activities on which funds have been 
120.11 	expended under this paragraph, the results or 
120.12 	progress of any study or initiative, and future 
120.13 	planned uses of the funds. The public utility 
120.14 	must submit updated reports to the same 
120.15 	persons each succeeding July 15 until all funds 
120.16 	have been expended or unexpended funds have 
120.17 	been returned to the account. Any funds not 
120.18 	expended at the time of the final report must 
120.19 	be returned to the account. This is a onetime 
120.20 	appropriation.

120.21	Sec. 5. PUBLIC FACILITIES AUTHORITY
 	$
	0
	$
	3,550,000
	
120.22 	(a) $750,000 in fiscal year 2019 is for a grant 
120.23 	to the city of Deer River to predesign, design, 
120.24 	engineer, and construct a stabilization pond 
120.25 	and to predesign, design, construct, and install 
120.26 	the replacement and expansion of storm sewer 
120.27 	lines, sanitary sewer lines, and water lines in 
120.28 	the city of Deer River. This appropriation is 
120.29 	available when the commissioner of 
120.30 	management and budget determines that 
120.31 	resources sufficient to complete the project 
120.32 	are committed to the project, as required in 
120.33 	Minnesota Statutes, section 16A.502. This is 
120.34 	a onetime appropriation and is available until 
121.1 	the project is completed or abandoned subject 
121.2 	to Minnesota Statutes, section 16A.642.
121.3 	(b) $600,000 in fiscal year 2019 is for a grant 
121.4 	to the Alexandria Lake Area Sanitary District 
121.5 	for lake management activities, including but 
121.6 	not limited to alum treatment in Lake Agnes, 
121.7 	carp removal in Lake Winona, and related 
121.8 	management and reassessment measures that 
121.9 	are intended to achieve and maintain 
121.10 	compliance with water quality standards for 
121.11 	phosphorus and the total maximum daily load 
121.12 	for Lake Winona. This is a onetime 
121.13 	appropriation and is available until June 30, 
121.14 	2021.
121.15 	(c) $1,100,000 in fiscal year 2019 is for a grant 
121.16 	to the city of Cold Spring to acquire land, 
121.17 	predesign, design, engineer, construct, furnish, 
121.18 	and equip water infrastructure, including 
121.19 	drilling new wells, a water treatment plant, 
121.20 	and piping for water distribution. This is a 
121.21 	onetime appropriation and is available until 
121.22 	the project is completed or abandoned subject 
121.23 	to Minnesota Statutes, section 16A.642.
121.24 	(d) $1,100,000 in fiscal year 2019 is for a 
121.25 	grant to the Big Lake Area Sanitary District 
121.26 	to construct a pressure sewer system and force 
121.27 	main to convey sewage to the Western Lake 
121.28 	Superior Sanitary District connection in the 
121.29 	city of Cloquet. This is a onetime 
121.30 	appropriation and is available until the project 
121.31 	is completed or abandoned subject to 
121.32 	Minnesota Statutes, section 16A.642.

122.1 	Sec. 6. Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended by Laws 
122.2 	2017, First Special Session chapter 7, section 2, is amended to read:

122.4122.3
	Subd. 2.Business and Community Development
 	$
	46,074,000
	$
	40,935,000
30,585,000

122.5	Appropriations by Fund
	
122.7122.6
	General
	$43,363,000
	$38,424,000
$28,074,000
	
122.8	Remediation
	$700,000
	$700,000
	
122.9122.10
	Workforce 
Development
	$1,861,000
	$1,811,000
	
122.11	Special Revenue
	$150,000
	-0-
	
122.12 	(a) $4,195,000 each year is for the Minnesota 
122.13 	job skills partnership program under 
122.14 	Minnesota Statutes, sections 116L.01 to 
122.15 	116L.17. If the appropriation for either year 
122.16 	is insufficient, the appropriation for the other 
122.17 	year is available. This appropriation is 
122.18 	available until spent.
122.19 	(b) $750,000 each year is for grants to the 
122.20 	Neighborhood Development Center for small 
122.21 	business programs:
122.22 	(1) training, lending, and business services;
122.23 	(2) model outreach and training in greater 
122.24 	Minnesota; and
122.25 	(3) development of new business incubators.
122.26 	This is a onetime appropriation.
122.27 	(c) $1,175,000 each year is for a grant to the 
122.28 	Metropolitan Economic Development 
122.29 	Association (MEDA) for statewide business 
122.30 	development and assistance services, including 
122.31 	services to entrepreneurs with businesses that 
122.32 	have the potential to create job opportunities 
122.33 	for unemployed and underemployed people, 
122.34 	with an emphasis on minority-owned 
122.35 	businesses. This is a onetime appropriation.
123.1 	(d) $125,000 each year is for a grant to the 
123.2 	White Earth Nation for the White Earth Nation 
123.3 	Integrated Business Development System to 
123.4 	provide business assistance with workforce 
123.5 	development, outreach, technical assistance, 
123.6 	infrastructure and operational support, 
123.7 	financing, and other business development 
123.8 	activities. This is a onetime appropriation.
123.9 	(e)(1) $12,500,000 each year is in fiscal year 
123.10 	2018 and $7,500,000 in fiscal year 2019 are
123.11 	for the Minnesota investment fund under 
123.12 	Minnesota Statutes, section 116J.8731. Of this 
123.13 	amount, the commissioner of employment and 
123.14 	economic development may use up to three 
123.15 	percent for administration and monitoring of 
123.16 	the program. This appropriation is available 
123.17 	until spent. In fiscal year 2020, the base 
123.18 	amount is $12,500,000. For fiscal year 2021 
123.19 	and beyond, the base amount is $9,500,000.
123.20 	(2) Of the amount appropriated in fiscal year 
123.21 	2018, $4,000,000 is for a loan to construct and 
123.22 	equip a wholesale electronic component 
123.23 	distribution center investing a minimum of 
123.24 	$200,000,000 and constructing a facility at 
123.25 	least 700,000 square feet in size. Loan funds 
123.26 	may be used for purchases of materials, 
123.27 	supplies, and equipment for the construction 
123.28 	of the facility and are available from July 1, 
123.29 	2017, to June 30, 2021. The commissioner of 
123.30 	employment and economic development shall 
123.31 	forgive the loan after verification that the 
123.32 	project has satisfied performance goals and 
123.33 	contractual obligations as required under 
123.34 	Minnesota Statutes, section 116J.8731.
124.1 	(3) Of the amount appropriated in fiscal year 
124.2 	2018, $700,000 is for a loan to extend an 
124.3 	effluent pipe that will deliver reclaimed water 
124.4 	to an innovative waste-to-biofuel project 
124.5 	investing a minimum of $150,000,000 and 
124.6 	constructing a facility that is designed to 
124.7 	process approximately 400,000 tons of waste 
124.8 	annually. Loan funds are available until June 
124.9 	30, 2021.
124.10 	(4) Of the amount appropriated in fiscal year 
124.11 	2019, $2,000,000 is for one or more grants to 
124.12 	Florence Township in Goodhue County to 
124.13 	predesign, design, engineer, construct, and 
124.14 	install infrastructure for storm water 
124.15 	protection, wells, roads, public safety, and 
124.16 	power access in southeastern Minnesota, in 
124.17 	partnership with a tribal government and a 
124.18 	nonprofit organization, to enable future 
124.19 	economic development and increase economic 
124.20 	activity in southeastern Minnesota. The grant 
124.21 	recipient must provide a nonstate contribution 
124.22 	in an amount at least equal to the grant. This 
124.23 	portion of the appropriation is available until 
124.24 	the project is completed or abandoned subject 
124.25 	to Minnesota Statutes, section 16A.642.
124.26 	(5) Of the amount appropriated in fiscal year 
124.27 	2019, $500,000 is for a grant to Mille Lacs 
124.28 	County to provide loans as described in 
124.29 	Minnesota Statutes, section 116J.8731, for 
124.30 	eligible projects located within one of the 
124.31 	follow municipalities surrounding Lake Mille 
124.32 	Lacs:
124.33 	(i) in Crow Wing County, the city of Garrison, 
124.34 	township of Garrison, or township of 
124.35 	Roosevelt;
125.1 	(ii) in Aitkin County, the township of 
125.2 	Hazelton, township of Wealthwood, township 
125.3 	of Malmo, or township of Lakeside; or
125.4 	(iii) in Mille Lacs County, the city of Isle, city 
125.5 	of Wahkon, city of Onamia, township of East 
125.6 	Side, township of Isle Harbor, township of 
125.7 	South Harbor, or township of Kathio.
125.8 	(6) Of the amount appropriated in fiscal year 
125.9 	2019, $500,000 is for a grant to the city of 
125.10 	Minnetonka for a high-risk, high-return jobs 
125.11 	retention and creation initiative to be 
125.12 	conducted by a local organization that 
125.13 	produces lactic acid/lactate, to help grow and 
125.14 	expand the bioeconomy in Minnesota. The 
125.15 	grant under this clause is not subject to the 
125.16 	limitations under Minnesota Statutes, section 
125.17 	116J.8731, subdivision 5, or the performance 
125.18 	goals and contractual obligations under 
125.19 	Minnesota Statutes, section 116J.8731, 
125.20 	subdivision 7.
125.21 	(7) Of the amount appropriated in fiscal year 
125.22 	2019, $500,000 is for a loan to a paper mill in 
125.23 	Duluth to support the operation and 
125.24 	manufacture of packaging paper grades. The 
125.25 	company that owns the paper mill must spend 
125.26 	$15,000,000 on expansion activities by 
125.27 	December 31, 2019, in order to be eligible to 
125.28 	receive funds under this appropriation. 
125.29 	Appropriation funds may be used for the mill's 
125.30 	equipment, materials, supplies, and other 
125.31 	operating expenses. The commissioner of 
125.32 	employment and economic development shall 
125.33 	forgive a portion of the loan each year after 
125.34 	verification that the mill has retained 195 
125.35 	full-time jobs over a period of five years and 
126.1 	has satisfied other performance goals and 
126.2 	contractual obligations as required under 
126.3 	Minnesota Statutes, section 116J.8731.
126.4 	(f) $8,500,000 each year is in fiscal year 2018 
126.5 	and $1,500,000 in fiscal year 2019 are for the 
126.6 	Minnesota job creation fund under Minnesota 
126.7 	Statutes, section 116J.8748. Of this amount, 
126.8 	the commissioner of employment and 
126.9 	economic development may use up to three 
126.10 	percent for administrative expenses. This 
126.11 	appropriation is available until expended. In 
126.12 	fiscal year 2020 and beyond, the base amount 
126.13 	is $8,000,000. In fiscal year 2021 and beyond, 
126.14 	the base amount is $5,000,000.
126.15 	(g) $1,647,000 each year is for contaminated 
126.16 	site cleanup and development grants under 
126.17 	Minnesota Statutes, sections 116J.551 to 
126.18 	116J.558. This appropriation is available until 
126.19 	spent. In fiscal year 2020 and beyond, the base 
126.20 	amount is $1,772,000.
126.21 	(h) $12,000 each year is for a grant to the 
126.22 	Upper Minnesota Film Office.
126.23 	(i) $163,000 each year is for the Minnesota 
126.24 	Film and TV Board. The appropriation in each 
126.25 	year is available only upon receipt by the 
126.26 	board of $1 in matching contributions of 
126.27 	money or in-kind contributions from nonstate 
126.28 	sources for every $3 provided by this 
126.29 	appropriation, except that each year up to 
126.30 	$50,000 is available on July 1 even if the 
126.31 	required matching contribution has not been 
126.32 	received by that date.
126.33 	(j) $500,000 each year is from the general fund 
126.34 	for a grant to the Minnesota Film and TV 
127.1 	Board for the film production jobs program 
127.2 	under Minnesota Statutes, section 116U.26. 
127.3 	This appropriation is available until June 30, 
127.4 	2021.
127.5 	(k) $139,000 each year is for a grant to the 
127.6 	Rural Policy and Development Center under 
127.7 	Minnesota Statutes, section 116J.421.
127.8 	(l)(1) $1,300,000 each year is in fiscal year 
127.9 	2018 and $2,200,000 in fiscal year 2019 are
127.10 	for the greater Minnesota business 
127.11 	development public infrastructure grant 
127.12 	program under Minnesota Statutes, section 
127.13 	116J.431. This appropriation is available until 
127.14 	spent. If the appropriation for either year is 
127.15 	insufficient, the appropriation for the other 
127.16 	year is available. In fiscal year 2020 and 
127.17 	beyond, the base amount is $1,787,000. Funds 
127.18 	available under this paragraph may be used 
127.19 	for site preparation of property owned and to 
127.20 	be used by private entities.
127.21 	(2) Of the amounts appropriated, $1,600,000 
127.22 	in fiscal year 2018 is for a grant to the city of 
127.23 	Thief River Falls to support utility extensions, 
127.24 	roads, and other public improvements related 
127.25 	to the construction of a wholesale electronic 
127.26 	component distribution center at least 700,000 
127.27 	square feet in size and investing a minimum 
127.28 	of $200,000,000. Notwithstanding Minnesota 
127.29 	Statutes, section 116J.431, a local match is 
127.30 	not required. Grant funds are available from 
127.31 	July 1, 2017, to June 30, 2021.
127.32 	(m) $876,000 the first year and $500,000 the 
127.33 	second year are for the Minnesota emerging 
127.34 	entrepreneur loan program under Minnesota 
127.35 	Statutes, section 116M.18. Funds available 
128.1 	under this paragraph are for transfer into the 
128.2 	emerging entrepreneur program special 
128.3 	revenue fund account created under Minnesota 
128.4 	Statutes, chapter 116M, and are available until 
128.5 	spent. Of this amount, up to four percent is for 
128.6 	administration and monitoring of the program. 
128.7 	In fiscal year 2020 and beyond, the base 
128.8 	amount is $1,000,000.
128.9 	(n) $875,000 each year is for a grant to 
128.10 	Enterprise Minnesota, Inc. for the small 
128.11 	business growth acceleration program under 
128.12 	Minnesota Statutes, section 116O.115. This 
128.13 	is a onetime appropriation.
128.14 	(o) $250,000 in fiscal year 2018 is for a grant 
128.15 	to the Minnesota Design Center at the 
128.16 	University of Minnesota for the greater 
128.17 	Minnesota community design pilot project.
128.18 	(p) $275,000 in fiscal year 2018 is from the 
128.19 	general fund to the commissioner of 
128.20 	employment and economic development for 
128.21 	a grant to Community and Economic 
128.22 	Development Associates (CEDA) for an 
128.23 	economic development study and analysis of 
128.24 	the effects of current and projected economic 
128.25 	growth in southeast Minnesota. CEDA shall 
128.26 	report on the findings and recommendations 
128.27 	of the study to the committees of the house of 
128.28 	representatives and senate with jurisdiction 
128.29 	over economic development and workforce 
128.30 	issues by February 15, 2019. All results and 
128.31 	information gathered from the study shall be 
128.32 	made available for use by cities in southeast 
128.33 	Minnesota by March 15, 2019. This 
128.34 	appropriation is available until June 30, 2020.
129.1 	(q) $2,000,000 in fiscal year 2018 is for a 
129.2 	grant to Pillsbury United Communities for 
129.3 	construction and renovation of a building in 
129.4 	north Minneapolis for use as the "North 
129.5 	Market" grocery store and wellness center, 
129.6 	focused on offering healthy food, increasing 
129.7 	health care access, and providing job creation 
129.8 	and economic opportunities in one place for 
129.9 	children and families living in the area. To the 
129.10 	extent possible, Pillsbury United Communities 
129.11 	shall employ individuals who reside within a 
129.12 	five mile radius of the grocery store and 
129.13 	wellness center. This appropriation is not 
129.14 	available until at least an equal amount of 
129.15 	money is committed from nonstate sources. 
129.16 	This appropriation is available until the project 
129.17 	is completed or abandoned, subject to 
129.18 	Minnesota Statutes, section 16A.642.
129.19 	(r) $1,425,000 each year is for the business 
129.20 	development competitive grant program. Of 
129.21 	this amount, up to five percent is for 
129.22 	administration and monitoring of the business 
129.23 	development competitive grant program. All 
129.24 	grant awards shall be for two consecutive 
129.25 	years. Grants shall be awarded in the first year.
129.26 	(s) $875,000 each year is for the host 
129.27 	community economic development grant 
129.28 	program established in Minnesota Statutes, 
129.29 	section 116J.548.
129.30 	(t) $700,000 each year is from the remediation 
129.31 	fund for contaminated site cleanup and 
129.32 	development grants under Minnesota Statutes, 
129.33 	sections 116J.551 to 116J.558. This 
129.34 	appropriation is available until spent.
130.1 	(u) $161,000 each year is from the workforce 
130.2 	development fund for a grant to the Rural 
130.3 	Policy and Development Center. This is a 
130.4 	onetime appropriation.
130.5 	(v) $300,000 each year is from the workforce 
130.6 	development fund for a grant to Enterprise 
130.7 	Minnesota, Inc. This is a onetime 
130.8 	appropriation.
130.9 	(w) $50,000 in fiscal year 2018 is from the 
130.10 	workforce development fund for a grant to 
130.11 	Fighting Chance for behavioral intervention 
130.12 	programs for at-risk youth.
130.13 	(x) $1,350,000 each year is from the 
130.14 	workforce development fund for job training 
130.15 	grants under Minnesota Statutes, section 
130.16 	116L.42.
130.17 	(y)(1) $519,000 in fiscal year 2018 is and 
130.18 	$750,000 in fiscal year 2019 are for grants to 
130.19 	local communities to increase the supply of 
130.20 	quality child care providers in order to support 
130.21 	economic development. At least 60 percent of 
130.22 	grant funds must go to communities located 
130.23 	outside of the seven-county metropolitan area, 
130.24 	as defined under Minnesota Statutes, section 
130.25 	473.121, subdivision 2. Grant recipients must 
130.26 	obtain a 50 percent nonstate match to grant 
130.27 	funds in either cash or in-kind contributions. 
130.28 	Grant funds available under this paragraph 
130.29 	must be used to implement solutions to reduce 
130.30 	the child care shortage in the state including 
130.31 	but not limited to funding for child care 
130.32 	business start-ups or expansions, training, 
130.33 	facility modifications or improvements 
130.34 	required for licensing, and assistance with 
130.35 	licensing and other regulatory requirements. 
131.1 	In awarding grants, the commissioner must 
131.2 	give priority to communities that have 
131.3 	documented a shortage of child care providers 
131.4 	in the area. For fiscal year 2019, each grant 
131.5 	recipient must target at least one-half of the 
131.6 	recipient's grant funding to child care 
131.7 	providers who have not previously received 
131.8 	funding under this program. The base amount 
131.9 	in fiscal year 2020 and beyond is $0.
131.10 	(2) Within one year of receiving grant funds, 
131.11 	grant recipients must report to the 
131.12 	commissioner on the outcomes of the grant 
131.13 	program including but not limited to the 
131.14 	number of new providers, the number of 
131.15 	additional child care provider jobs created, the 
131.16 	number of additional child care slots, and the 
131.17 	amount of local funds invested.
131.18 	(3) By January 1 of each year, starting in 2019, 
131.19 	the commissioner must report to the standing 
131.20 	committees of the legislature having 
131.21 	jurisdiction over child care and economic 
131.22 	development on the outcomes of the program 
131.23 	to date.
131.24 	(z) $319,000 in fiscal year 2018 is from the 
131.25 	general fund for a grant to the East Phillips 
131.26 	Improvement Coalition to create the East 
131.27 	Phillips Neighborhood Institute (EPNI) to 
131.28 	expand culturally tailored resources that 
131.29 	address small business growth and create 
131.30 	green jobs. The grant shall fund the 
131.31 	collaborative work of Tamales y Bicicletas, 
131.32 	Little Earth of the United Tribes, a nonprofit 
131.33 	serving East Africans, and other coalition 
131.34 	members towards developing EPNI as a 
131.35 	community space to host activities including, 
132.1 	but not limited to, creation and expansion of 
132.2 	small businesses, culturally specific 
132.3 	entrepreneurial activities, indoor urban 
132.4 	farming, job training, education, and skills 
132.5 	development for residents of this low-income, 
132.6 	environmental justice designated 
132.7 	neighborhood. Eligible uses for grant funds 
132.8 	include, but are not limited to, planning and 
132.9 	start-up costs, staff and consultant costs, 
132.10 	building improvements, rent, supplies, utilities, 
132.11 	vehicles, marketing, and program activities. 
132.12 	The commissioner shall submit a report on 
132.13 	grant activities and quantifiable outcomes to 
132.14 	the committees of the house of representatives 
132.15 	and the senate with jurisdiction over economic 
132.16 	development by December 15, 2020. This 
132.17 	appropriation is available until June 30, 2020.
132.18 	(aa) $150,000 the first year is from the 
132.19 	renewable development account in the special 
132.20 	revenue fund established in Minnesota 
132.21 	Statutes, section 116C.779, subdivision 1, to 
132.22 	conduct the biomass facility closure economic 
132.23 	impact study.
132.24 	(bb)(1)$300,000 in fiscal year 2018 is for a 
132.25 	grant to East Side Enterprise Center (ESEC) 
132.26 	to expand culturally tailored resources that 
132.27 	address small business growth and job 
132.28 	creation. This appropriation is available until 
132.29 	June 30, 2020. The appropriation shall fund 
132.30 	the work of African Economic Development 
132.31 	Solutions, the Asian Economic Development 
132.32 	Association, the Dayton's Bluff Community 
132.33 	Council, and the Latino Economic 
132.34 	Development Center in a collaborative 
132.35 	approach to economic development that is 
133.1 	effective with smaller, culturally diverse 
133.2 	communities that seek to increase the 
133.3 	productivity and success of new immigrant 
133.4 	and minority populations living and working 
133.5 	in the community. Programs shall provide 
133.6 	minority business growth and capacity 
133.7 	building that generate wealth and jobs creation 
133.8 	for local residents and business owners on the 
133.9 	East Side of St. Paul.
133.10 	(2) In fiscal year 2019 ESEC shall use funds 
133.11 	to share its integrated service model and 
133.12 	evolving collaboration principles with civic 
133.13 	and economic development leaders in greater 
133.14 	Minnesota communities which have diverse 
133.15 	populations similar to the East Side of St. Paul. 
133.16 	ESEC shall submit a report of activities and 
133.17 	program outcomes, including quantifiable 
133.18 	measures of success annually to the house of 
133.19 	representatives and senate committees with 
133.20 	jurisdiction over economic development.
133.21 	(cc) $150,000 in fiscal year 2018 is for a grant 
133.22 	to Mille Lacs County for the purpose of 
133.23 	reimbursement grants to small resort 
133.24 	businesses located in the city of Isle with less 
133.25 	than $350,000 in annual revenue, at least four 
133.26 	rental units, which are open during both 
133.27 	summer and winter months, and whose 
133.28 	business was adversely impacted by a decline 
133.29 	in walleye fishing on Lake Mille Lacs.
133.30 	(dd)(1) $250,000 in fiscal year 2018 is for a 
133.31 	grant to the Small Business Development 
133.32 	Center hosted at Minnesota State University, 
133.33 	Mankato, for a collaborative initiative with 
133.34 	the Regional Center for Entrepreneurial 
133.35 	Facilitation. Funds available under this section 
134.1 	must be used to provide entrepreneur and 
134.2 	small business development direct professional 
134.3 	business assistance services in the following 
134.4 	counties in Minnesota: Blue Earth, Brown, 
134.5 	Faribault, Le Sueur, Martin, Nicollet, Sibley, 
134.6 	Watonwan, and Waseca. For the purposes of 
134.7 	this section, "direct professional business 
134.8 	assistance services" must include, but is not 
134.9 	limited to, pre-venture assistance for 
134.10 	individuals considering starting a business. 
134.11 	This appropriation is not available until the 
134.12 	commissioner determines that an equal amount 
134.13 	is committed from nonstate sources. Any 
134.14 	balance in the first year does not cancel and 
134.15 	is available for expenditure in the second year.
134.16 	(2) Grant recipients shall report to the 
134.17 	commissioner by February 1 of each year and 
134.18 	include information on the number of 
134.19 	customers served in each county; the number 
134.20 	of businesses started, stabilized, or expanded; 
134.21 	the number of jobs created and retained; and 
134.22 	business success rates in each county. By April 
134.23 	1 of each year, the commissioner shall report 
134.24 	the information submitted by grant recipients 
134.25 	to the chairs of the standing committees of the 
134.26 	house of representatives and the senate having 
134.27 	jurisdiction over economic development 
134.28 	issues.
134.29 	(ee) $500,000 in fiscal year 2018 is for the 
134.30 	central Minnesota opportunity grant program 
134.31 	established under Minnesota Statutes, section 
134.32 	116J.9922. This appropriation is available until 
134.33 	June 30, 2022.
134.34 	(ff) $25,000 each year is for the administration 
134.35 	of state aid for the Destination Medical Center 
135.1 	under Minnesota Statutes, sections 469.40 to 
135.2 	469.47.

135.3 	Sec. 7. Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:

135.4	Subd. 3.Workforce Development
 	$
	31,498,000
	$
	30,231,000

135.5	Appropriations by Fund
	
135.6	General
	$6,239,000
	$5,889,000
	
135.7
135.8	Workforce 
Development
	$25,259,000
	$24,342,000
	
135.9 	(a) $500,000 each year is for the 
135.10 	youth-at-work competitive grant program 
135.11 	under Minnesota Statutes, section 116L.562. 
135.12 	Of this amount, up to five percent is for 
135.13 	administration and monitoring of the youth 
135.14 	workforce development competitive grant 
135.15 	program. All grant awards shall be for two 
135.16 	consecutive years. Grants shall be awarded in 
135.17 	the first year. In fiscal year 2020 and beyond, 
135.18 	the base amount is $750,000.
135.19 	(b) $250,000 each year is for pilot programs 
135.20 	in the workforce service areas to combine 
135.21 	career and higher education advising.
135.22 	(c) $500,000 each year is for rural career 
135.23 	counseling coordinator positions in the 
135.24 	workforce service areas and for the purposes 
135.25 	specified in Minnesota Statutes, section 
135.26 	116L.667. The commissioner of employment 
135.27 	and economic development, in consultation 
135.28 	with local workforce investment boards and 
135.29 	local elected officials in each of the service 
135.30 	areas receiving funds, shall develop a method 
135.31 	of distributing funds to provide equitable 
135.32 	services across workforce service areas.
135.33 	(d) $1,000,000 each year is for a grant to the 
135.34 	Construction Careers Foundation for the 
136.1 	construction career pathway initiative to 
136.2 	provide year-round educational and 
136.3 	experiential learning opportunities for teens 
136.4 	and young adults under the age of 21 that lead 
136.5 	to careers in the construction industry. This is 
136.6 	a onetime appropriation. Grant funds must be 
136.7 	used to:
136.8 	(1) increase construction industry exposure 
136.9 	activities for middle school and high school 
136.10 	youth, parents, and counselors to reach a more 
136.11 	diverse demographic and broader statewide 
136.12 	audience. This requirement includes, but is 
136.13 	not limited to, an expansion of programs to 
136.14 	provide experience in different crafts to youth 
136.15 	and young adults throughout the state;
136.16 	(2) increase the number of high schools in 
136.17 	Minnesota offering construction classes during 
136.18 	the academic year that utilize a multicraft 
136.19 	curriculum;
136.20 	(3) increase the number of summer internship 
136.21 	opportunities;
136.22 	(4) enhance activities to support graduating 
136.23 	seniors in their efforts to obtain employment 
136.24 	in the construction industry;
136.25 	(5) increase the number of young adults 
136.26 	employed in the construction industry and 
136.27 	ensure that they reflect Minnesota's diverse 
136.28 	workforce; and
136.29 	(6) enhance an industrywide marketing 
136.30 	campaign targeted to youth and young adults 
136.31 	about the depth and breadth of careers within 
136.32 	the construction industry.
136.33 	Programs and services supported by grant 
136.34 	funds must give priority to individuals and 
137.1 	groups that are economically disadvantaged 
137.2 	or historically underrepresented in the 
137.3 	construction industry, including but not limited 
137.4 	to women, veterans, and members of minority 
137.5 	and immigrant groups.
137.6 	(e) $1,539,000 each year from the general fund 
137.7 	and $4,604,000 each year from the workforce 
137.8 	development fund are for the Pathways to 
137.9 	Prosperity adult workforce development 
137.10 	competitive grant program. Of this amount, 
137.11 	up to four percent is for administration and 
137.12 	monitoring of the program. When awarding 
137.13 	grants under this paragraph, the commissioner 
137.14 	of employment and economic development 
137.15 	may give preference to any previous grantee 
137.16 	with demonstrated success in job training and 
137.17 	placement for hard-to-train individuals. In 
137.18 	fiscal year 2020 and beyond, the general fund 
137.19 	base amount for this program is $4,039,000.
137.20 	(f) $750,000 each year is for a competitive 
137.21 	grant program to provide grants to 
137.22 	organizations that provide support services for 
137.23 	individuals, such as job training, employment 
137.24 	preparation, internships, job assistance to 
137.25 	fathers, financial literacy, academic and 
137.26 	behavioral interventions for low-performing 
137.27 	students, and youth intervention. Grants made 
137.28 	under this section must focus on low-income 
137.29 	communities, young adults from families with 
137.30 	a history of intergenerational poverty, and 
137.31 	communities of color. Of this amount, up to 
137.32 	four percent is for administration and 
137.33 	monitoring of the program. In fiscal year 2020 
137.34 	and beyond, the base amount is $1,000,000.
138.1 	(g) $500,000 each year is for the women and 
138.2 	high-wage, high-demand, nontraditional jobs 
138.3 	grant program under Minnesota Statutes, 
138.4 	section 116L.99. Of this amount, up to five 
138.5 	percent is for administration and monitoring 
138.6 	of the program. In fiscal year 2020 and 
138.7 	beyond, the base amount is $750,000.
138.8 	(h) $500,000 each year is for a competitive 
138.9 	grant program for grants to organizations 
138.10 	providing services to relieve economic 
138.11 	disparities in the Southeast Asian community 
138.12 	through workforce recruitment, development, 
138.13 	job creation, assistance of smaller 
138.14 	organizations to increase capacity, and 
138.15 	outreach. Of this amount, up to five percent 
138.16 	is for administration and monitoring of the 
138.17 	program. In fiscal year 2020 and beyond, the 
138.18 	base amount is $1,000,000.
138.19 	(i) $250,000 each year is for a grant to the 
138.20 	American Indian Opportunities and 
138.21 	Industrialization Center, in collaboration with 
138.22 	the Northwest Indian Community 
138.23 	Development Center, to reduce academic 
138.24 	disparities for American Indian students and 
138.25 	adults. This is a onetime appropriation. The 
138.26 	grant funds may be used to provide:
138.27 	(1) student tutoring and testing support 
138.28 	services;
138.29 	(2) training in information technology;
138.30 	(3) assistance in obtaining a GED;
138.31 	(4) remedial training leading to enrollment in 
138.32 	a postsecondary higher education institution;
138.33 	(5) real-time work experience in information 
138.34 	technology fields; and
139.1 	(6) contextualized adult basic education.
139.2 	After notification to the legislature, the 
139.3 	commissioner may transfer this appropriation 
139.4 	to the commissioner of education.
139.5 	(j) $100,000 each year is for the getting to 
139.6 	work grant program. This is a onetime 
139.7 	appropriation and is available until June 30, 
139.8 	2021.
139.9 	(k) $525,000 each year is from the workforce 
139.10 	development fund for a grant to the YWCA 
139.11 	of Minneapolis to provide economically 
139.12 	challenged individuals the job skills training, 
139.13 	career counseling, and job placement 
139.14 	assistance necessary to secure a child 
139.15 	development associate credential and to have 
139.16 	a career path in early childhood education. 
139.17 	This is a onetime appropriation.
139.18 	(l) $1,350,000 each year is from the workforce 
139.19 	development fund for a grant to the Minnesota 
139.20 	High Tech Association to support 
139.21 	SciTechsperience, a program that supports 
139.22 	science, technology, engineering, and math 
139.23 	(STEM) internship opportunities for two- and 
139.24 	four-year college students and graduate 
139.25 	students in their field of study. The internship 
139.26 	opportunities must match students with paid 
139.27 	internships within STEM disciplines at small, 
139.28 	for-profit companies located in Minnesota, 
139.29 	having fewer than 250 employees worldwide. 
139.30 	At least 300 students must be matched in the 
139.31 	first year and at least 350 students must be 
139.32 	matched in the second year. No more than 15 
139.33 	percent of the hires may be graduate students. 
139.34 	Selected hiring companies shall receive from 
139.35 	the grant 50 percent of the wages paid to the 
140.1 	intern, capped at $2,500 per intern. The 
140.2 	program must work toward increasing the 
140.3 	participation of women or other underserved 
140.4 	populations. This is a onetime appropriation.
140.5 	(m) $450,000 each year is from the workforce 
140.6 	development fund for grants to Minnesota 
140.7 	Diversified Industries, Inc. to provide 
140.8 	progressive development and employment 
140.9 	opportunities for people with disabilities. This 
140.10 	is a onetime appropriation.
140.11 	(n) $500,000 each year is from the workforce 
140.12 	development fund for a grant to Resource, Inc. 
140.13 	to provide low-income individuals career 
140.14 	education and job skills training that are fully 
140.15 	integrated with chemical and mental health 
140.16 	services. This is a onetime appropriation.
140.17 	(o) $750,000 each year is from the workforce 
140.18 	development fund for a grant to the Minnesota 
140.19 	Alliance of Boys and Girls Clubs to administer 
140.20 	a statewide project of youth job skills and 
140.21 	career development. This project, which may 
140.22 	have career guidance components including 
140.23 	health and life skills, is designed to encourage, 
140.24 	train, and assist youth in early access to 
140.25 	education and job-seeking skills, work-based 
140.26 	learning experience including career pathways 
140.27 	in STEM learning, career exploration and 
140.28 	matching, and first job placement through 
140.29 	local community partnerships and on-site job 
140.30 	opportunities. This grant requires a 25 percent 
140.31 	match from nonstate resources. This is a 
140.32 	onetime appropriation.
140.33 	(p) $215,000 each year is from the workforce 
140.34 	development fund for grants to Big Brothers, 
140.35 	Big Sisters of the Greater Twin Cities for 
141.1 	workforce readiness, employment exploration, 
141.2 	and skills development for youth ages 12 to 
141.3 	21. The grant must serve youth in the Twin 
141.4 	Cities, Central Minnesota, and Southern 
141.5 	Minnesota Big Brothers, Big Sisters chapters. 
141.6 	This is a onetime appropriation.
141.7 	(q) $250,000 each year is from the workforce 
141.8 	development fund for a grant to YWCA St. 
141.9 	Paul to provide job training services and 
141.10 	workforce development programs and 
141.11 	services, including job skills training and 
141.12 	counseling. This is a onetime appropriation.
141.13 	(r) $1,000,000 each year is from the workforce 
141.14 	development fund for a grant to EMERGE 
141.15 	Community Development, in collaboration 
141.16 	with community partners, for services 
141.17 	targeting Minnesota communities with the 
141.18 	highest concentrations of African and 
141.19 	African-American joblessness, based on the 
141.20 	most recent census tract data, to provide 
141.21 	employment readiness training, credentialed 
141.22 	training placement, job placement and 
141.23 	retention services, supportive services for 
141.24 	hard-to-employ individuals, and a general 
141.25 	education development fast track and adult 
141.26 	diploma program. This is a onetime 
141.27 	appropriation.
141.28 	(s) $1,000,000 each year is from the workforce 
141.29 	development fund for a grant to the 
141.30 	Minneapolis Foundation for a strategic 
141.31 	intervention program designed to target and 
141.32 	connect program participants to meaningful, 
141.33 	sustainable living-wage employment. This is 
141.34 	a onetime appropriation.
142.1 	(t) $750,000 each year is from the workforce 
142.2 	development fund for a grant to Latino 
142.3 	Communities United in Service (CLUES) to 
142.4 	expand culturally tailored programs that 
142.5 	address employment and education skill gaps 
142.6 	for working parents and underserved youth by 
142.7 	providing new job skills training to stimulate 
142.8 	higher wages for low-income people, family 
142.9 	support systems designed to reduce 
142.10 	intergenerational poverty, and youth 
142.11 	programming to promote educational 
142.12 	advancement and career pathways. At least 
142.13 	50 percent of this amount must be used for 
142.14 	programming targeted at greater Minnesota. 
142.15 	This is a onetime appropriation.
142.16 	(u) $600,000 each year is from the workforce 
142.17 	development fund for a grant to Ujamaa Place 
142.18 	for job training, employment preparation, 
142.19 	internships, education, training in the 
142.20 	construction trades, housing, and 
142.21 	organizational capacity building. This is a 
142.22 	onetime appropriation.
142.23 	(v) $1,297,000 in the first year and $800,000 
142.24 	in the second year are from the workforce 
142.25 	development fund for performance grants 
142.26 	under Minnesota Statutes, section 116J.8747, 
142.27 	to Twin Cities R!SE to provide training to 
142.28 	hard-to-train individuals. Of the amounts 
142.29 	appropriated, $497,000 in fiscal year 2018 is 
142.30 	for a grant to Twin Cities R!SE, in 
142.31 	collaboration with Metro Transit and Hennepin 
142.32 	Technical College for the Metro Transit 
142.33 	technician training program. This is a onetime 
142.34 	appropriation and funds are available until 
142.35 	June 30, 2020.
143.1 	(w) $230,000 in fiscal year 2018 is from the 
143.2 	workforce development fund for a grant to the 
143.3 	Bois Forte Tribal Employment Rights Office 
143.4 	(TERO) for an American Indian workforce 
143.5 	development training pilot project. This is a 
143.6 	onetime appropriation and is available until 
143.7 	June 30, 2019. Funds appropriated the first 
143.8 	year are available for use in the second year 
143.9 	of the biennium.
143.10 	(x) $40,000 in fiscal year 2018 is from the 
143.11 	workforce development fund for a grant to the 
143.12 	Cook County Higher Education Board to 
143.13 	provide educational programming and 
143.14 	academic support services to remote regions 
143.15 	in northeastern Minnesota. This appropriation 
143.16 	is in addition to other funds previously 
143.17 	appropriated to the board.
143.18 	(y) $250,000 each year is from the workforce 
143.19 	development fund for a grant to Bridges to 
143.20 	Healthcare to provide career education, 
143.21 	wraparound support services, and job skills 
143.22 	training in high-demand health care fields to 
143.23 	low-income parents, nonnative speakers of 
143.24 	English, and other hard-to-train individuals, 
143.25 	helping families build secure pathways out of 
143.26 	poverty while also addressing worker 
143.27 	shortages in one of Minnesota's most 
143.28 	innovative industries. Funds may be used for 
143.29 	program expenses, including, but not limited 
143.30 	to, hiring instructors and navigators; space 
143.31 	rental; and supportive services to help 
143.32 	participants attend classes, including assistance 
143.33 	with course fees, child care, transportation, 
143.34 	and safe and stable housing. In addition, up to 
143.35 	five percent of grant funds may be used for 
144.1 	Bridges to Healthcare's administrative costs. 
144.2 	This is a onetime appropriation and is 
144.3 	available until June 30, 2020.
144.4 	(z) $500,000 each year is from the workforce 
144.5 	development fund for a grant to the Nonprofits 
144.6 	Assistance Fund to provide capacity-building 
144.7 	grants to small, culturally specific 
144.8 	organizations that primarily serve historically 
144.9 	underserved cultural communities. Grants may 
144.10 	only be awarded to nonprofit organizations 
144.11 	that have an annual organizational budget of 
144.12 	less than $500,000 and are culturally specific 
144.13 	organizations that primarily serve historically 
144.14 	underserved cultural communities. Grant funds 
144.15 	awarded must be used for:
144.16 	(1) organizational infrastructure improvement, 
144.17 	including developing database management 
144.18 	systems and financial systems, or other 
144.19 	administrative needs that increase the 
144.20 	organization's ability to access new funding 
144.21 	sources;
144.22 	(2) organizational workforce development, 
144.23 	including hiring culturally competent staff, 
144.24 	training and skills development, and other 
144.25 	methods of increasing staff capacity; or
144.26 	(3) creation or expansion of partnerships with 
144.27 	existing organizations that have specialized 
144.28 	expertise in order to increase the capacity of 
144.29 	the grantee organization to improve services 
144.30 	for the community. Of this amount, up to five 
144.31 	percent may be used by the Nonprofits 
144.32 	Assistance Fund for administration costs and 
144.33 	providing technical assistance to potential 
144.34 	grantees. This is a onetime appropriation.
145.1 	(aa) $4,050,000 each year is from the 
145.2 	workforce development fund for the 
145.3 	Minnesota youth program under Minnesota 
145.4 	Statutes, sections 116L.56 and 116L.561.
145.5 	(bb) $1,000,000 each year is from the 
145.6 	workforce development fund for the 
145.7 	youthbuild program under Minnesota Statutes, 
145.8 	sections 116L.361 to 116L.366.
145.9 	(cc) $3,348,000 each year is from the 
145.10 	workforce development fund for the "Youth 
145.11 	at Work" youth workforce development 
145.12 	competitive grant program. Of this amount, 
145.13 	up to five percent is for administration and 
145.14 	monitoring of the youth workforce 
145.15 	development competitive grant program. All 
145.16 	grant awards shall be for two consecutive 
145.17 	years. Grants shall be awarded in the first year.
145.18 	(dd) $500,000 each year is from the workforce 
145.19 	development fund for the Opportunities 
145.20 	Industrialization Center programs.
145.21 	(ee) $750,000 each year is from the workforce 
145.22 	development fund for a grant to Summit 
145.23 	Academy OIC to expand its contextualized 
145.24 	GED and employment placement program. 
145.25 	This is a onetime appropriation.
145.26 	(ff) $500,000 each year is from the workforce 
145.27 	development fund for a grant to 
145.28 	Goodwill-Easter Seals Minnesota and its 
145.29 	partners. The grant shall be used to continue 
145.30 	the FATHER Project in Rochester, Park 
145.31 	Rapids, St. Cloud, Minneapolis, and the 
145.32 	surrounding areas to assist fathers in 
145.33 	overcoming barriers that prevent fathers from 
146.1 	supporting their children economically and 
146.2 	emotionally. This is a onetime appropriation.
146.3 	(gg) $150,000 each year is from the workforce 
146.4 	development fund for displaced homemaker 
146.5 	programs under Minnesota Statutes, section 
146.6 	116L.96. The commissioner shall distribute 
146.7 	the funds to existing nonprofit and state 
146.8 	displaced homemaker programs. This is a 
146.9 	onetime appropriation.
146.10 	(hh)(1) $150,000 in fiscal year 2018 is from 
146.11 	the workforce development fund for a grant 
146.12 	to Anoka County to develop and implement 
146.13 	a pilot program to increase competitive 
146.14 	employment opportunities for transition-age 
146.15 	youth ages 18 to 21.
146.16 	(2) The competitive employment for 
146.17 	transition-age youth pilot program shall 
146.18 	include career guidance components, including 
146.19 	health and life skills, to encourage, train, and 
146.20 	assist transition-age youth in job-seeking 
146.21 	skills, workplace orientation, and job site 
146.22 	knowledge.
146.23 	(3) In operating the pilot program, Anoka 
146.24 	County shall collaborate with schools, 
146.25 	disability providers, jobs and training 
146.26 	organizations, vocational rehabilitation 
146.27 	providers, and employers to build upon 
146.28 	opportunities and services, to prepare 
146.29 	transition-age youth for competitive 
146.30 	employment, and to enhance employer 
146.31 	connections that lead to employment for the 
146.32 	individuals served.
146.33 	(4) Grant funds may be used to create an 
146.34 	on-the-job training incentive to encourage 
147.1 	employers to hire and train qualifying 
147.2 	individuals. A participating employer may 
147.3 	receive up to 50 percent of the wages paid to 
147.4 	the employee as a cost reimbursement for 
147.5 	on-the-job training provided.
147.6 	(ii) $500,000 each year is from the workforce 
147.7 	development fund for rural career counseling 
147.8 	coordinator positions in the workforce service 
147.9 	areas and for the purposes specified in 
147.10 	Minnesota Statutes, section 116L.667. The 
147.11 	commissioner of employment and economic 
147.12 	development, in consultation with local 
147.13 	workforce investment boards and local elected 
147.14 	officials in each of the service areas receiving 
147.15 	funds, shall develop a method of distributing 
147.16 	funds to provide equitable services across 
147.17 	workforce service areas.
147.18 	(jj) In calendar year 2017, the public utility 
147.19 	subject to Minnesota Statutes, section 
147.20 	116C.779, must withhold $1,000,000 from the 
147.21 	funds required to fulfill its financial 
147.22 	commitments under Minnesota Statutes, 
147.23 	section 116C.779, subdivision 1, and pay such 
147.24 	amounts to the commissioner of employment 
147.25 	and economic development for deposit in the 
147.26 	Minnesota 21st century fund under Minnesota 
147.27 	Statutes, section 116J.423.
147.28 	(kk) $350,000 in fiscal year 2018 is for a grant 
147.29 	to AccessAbility Incorporated to provide job 
147.30 	skills training to individuals who have been 
147.31 	released from incarceration for a felony-level 
147.32 	offense and are no more than 12 months from 
147.33 	the date of release. AccessAbility Incorporated 
147.34 	shall annually report to the commissioner on 
147.35 	how the money was spent and the results 
148.1 	achieved. The report must include, at a 
148.2 	minimum, information and data about the 
148.3 	number of participants; participant 
148.4 	homelessness, employment, recidivism, and 
148.5 	child support compliance; and training 
148.6 	provided to program participants.

148.7 	Sec. 8. Laws 2017, chapter 94, article 1, section 4, subdivision 3, is amended to read:

148.9148.8
	Subd. 3.Labor Standards and Apprenticeship
 		3,645,000
		3,668,000
3,868,000

148.10	Appropriations by Fund
	
148.12148.11
	General
	1,776,000
	1,790,000
1,990,000
	
148.13
148.14	Workforce 
Development
	1,869,000
	1,878,000
	
148.15 	(a) $500,000 each year is from the general 
148.16 	fund in fiscal year 2018 and $700,000 in fiscal 
148.17 	year 2019 are for wage theft prevention under 
148.18 	the division of labor standards.
148.19 	(b) $100,000 each year is from the workforce 
148.20 	development fund for labor education and 
148.21 	advancement program grants under Minnesota 
148.22 	Statutes, section 178.11, to expand and 
148.23 	promote registered apprenticeship training for 
148.24 	minorities and women.
148.25 	(c) $300,000 each year is from the workforce 
148.26 	development fund for the PIPELINE program.
148.27 	(d) $200,000 each year is from the workforce 
148.28 	development fund for grants to the 
148.29 	Construction Careers Foundation for the 
148.30 	Helmets to Hardhats Minnesota initiative. 
148.31 	Grant funds must be used to recruit, retain, 
148.32 	assist, and support National Guard, reserve, 
148.33 	and active duty military members' and 
148.34 	veterans' participation into apprenticeship 
148.35 	programs registered with the Department of 
149.1 	Labor and Industry and connect them with 
149.2 	career training and employment in the building 
149.3 	and construction industry. The recruitment, 
149.4 	selection, employment, and training must be 
149.5 	without discrimination due to race, color, 
149.6 	creed, religion, national origin, sex, sexual 
149.7 	orientation, marital status, physical or mental 
149.8 	disability, receipt of public assistance, or age. 
149.9 	This is a onetime appropriation.
149.10 	(e) $1,029,000 each year is from the workforce 
149.11 	development fund for the apprenticeship 
149.12 	program under Minnesota Statutes, chapter 
149.13 	178.
149.14 	(f) $150,000 each year is from the workforce 
149.15 	development fund for prevailing wage 
149.16 	enforcement.

149.17 	Sec. 9. Laws 2017, chapter 94, article 1, section 4, subdivision 5, is amended to read:

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

149.19	Appropriations by Fund
	
149.20
149.21	Workforce 
Development Fund
	200,000
	500,000
	
149.22
149.23	Workers' 
Compensation
	6,039,000
	6,039,000
	
149.24 	(a) Except as provided in paragraphs (b) and 
149.25 	(c), this appropriation is from the workers' 
149.26 	compensation fund.
149.27 	(b) $200,000 in fiscal year 2018 is from the 
149.28 	workforce development fund for the 
149.29 	commissioner of labor and industry to convene 
149.30 	and collaborate with stakeholders as provided 
149.31 	under Minnesota Statutes, section 175.46, 
149.32 	subdivision 3, and to develop youth skills 
149.33 	training competencies for approved 
149.34 	occupations. This is a onetime appropriation.
150.1 	(c) $500,000 in fiscal year 2019 is from the 
150.2 	workforce development fund to administer the 
150.3 	youth skills training program under Minnesota 
150.4 	Statutes, section 175.46. The commissioner 
150.5 	shall award up to five grants each year to local 
150.6 	partnerships located throughout the state, not 
150.7 	to exceed $100,000 per local partnership grant. 
150.8 	The commissioner may use a portion of this 
150.9 	appropriation for administration of the grant 
150.10 	program. The base amount for this program 
150.11 	is $500,000 $750,000 each year beginning in 
150.12 	fiscal year 2020.

150.13 	ARTICLE 6
150.14 	ECONOMIC DEVELOPMENT

150.15 	Section 1. Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:
150.16 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
150.17 	An amount equal to that distributed pursuant to each taconite producer's taxable 
150.18 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
150.19 	commissioner of Iron Range resources and rehabilitation in a separate taconite economic 
150.20 	development fund for each taconite and direct reduced ore producer. Money from the fund 
150.21 	for each producer shall be released by the commissioner after review by a joint committee 
150.22 	consisting of an equal number of representatives of the salaried employees and the 
150.23 	nonsalaried production and maintenance employees of that producer. The District 11 director 
150.24 	of the United States Steelworkers of America, on advice of each local employee president, 
150.25 	shall select the employee members. In nonorganized operations, the employee committee 
150.26 	shall be elected by the nonsalaried production and maintenance employees. The review 
150.27 	must be completed no later than six months after the producer presents a proposal for 
150.28 	expenditure of the funds to the committee. The funds held pursuant to this section may be 
150.29 	released only for workforce development and associated public facility improvement, 
150.30 	concurrent reclamation, or for acquisition of plant and stationary mining equipment and 
150.31 	facilities for the producer or for research and development in Minnesota on new mining, or 
150.32 	taconite, iron, or steel production technology, but only if the producer provides a matching 
150.33 	expenditure equal to the amount of the distribution to be used for the same purpose beginning 
150.34 	with distributions in 2014. Effective for proposals for expenditures of money from the fund 
151.1 	beginning May 26, 2007, the commissioner may not release the funds before the next 
151.2 	scheduled meeting of the board. If a proposed expenditure is not approved by the 
151.3 	commissioner, after consultation with the advisory board, the funds must be deposited in 
151.4 	the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a taconite 
151.5 	production facility is sold after operations at the facility had ceased, any money remaining 
151.6 	in the fund for the former producer may be released to the purchaser of the facility on the 
151.7 	terms otherwise applicable to the former producer under this section. If a producer fails to 
151.8 	provide matching funds for a proposed expenditure within six months after the commissioner 
151.9 	approves release of the funds, the funds are available for release to another producer in 
151.10 	proportion to the distribution provided and under the conditions of this section may be 
151.11 	released by the commissioner for deposit in the taconite area environmental protection fund 
151.12 	created in section 298.223. Any portion of the fund which is not released by the commissioner 
151.13 	within one year of its deposit in the fund shall be divided betweendistributed to the taconite 
151.14 	environmental protection fund created in section 298.223 and the Douglas J. Johnson 
151.15 	economic protection trust fund created in section 298.292 for placement in their respective 
151.16 	special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite 
151.17 	environmental protection fund and one-third to the Douglas J. Johnson economic protection 
151.18 	trust fund.

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

151.20 	Sec. 2. Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:
151.21 		Subd. 9a.Taconite economic development fund. (a) 25.1 cents per ton for distributions 
151.22 	in 2002 and thereafter must be paid to the taconite economic development fund. No 
151.23 	distribution shall be made under this paragraph in 2004 or any subsequent year in which 
151.24 	total industry production falls below 30 million tons. Distribution shall only be made to a 
151.25 	Minnesota taconite pellet producer's fund under section 298.227 if the producer timely pays 
151.26 	its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the 
151.27 	due dates provided by an administrative agreement with the commissioner.
151.28 	(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold 
151.29 	in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed 
151.30 	pellets shall be paid to the taconite economic development fund. The amount paid shall not 
151.31 	exceed $700,000 annually for all companies Minnesota taconite pellet producers. If the 
151.32 	initial amount to be paid to the fund exceeds this amount, each company's Minnesota taconite 
151.33 	pellet producer's payment shall be prorated so the total does not exceed $700,000.

151.34 	EFFECTIVE DATE. This section is effective retroactively from December 31, 2016.

152.1 	Sec. 3. TRANSFER 2018 DISTRIBUTION ONLY.
 152.2 	For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28, 
152.3 	subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after 
152.4 	distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.

152.5 	EFFECTIVE DATE. This section is effective for the 2018 distribution, and the transfer 
152.6 	must be made within ten days of the August 2018 payment.

152.7 	Sec. 4. DISLOCATED WORKER RAPID RESPONSE ACTIVITY.
 152.8 	Notwithstanding anything to the contrary, of the money appropriated to the Job Skills 
152.9 	Partnership Board for the purposes of Minnesota Statutes, section 116L.17, under Minnesota 
152.10 	Statutes, section 116L.20, subdivision 2, at least $650,000 in fiscal year 2019 must be used 
152.11 	for rapid response activities under Minnesota Statutes, section 116L.17, subdivision 10, to 
152.12 	address the substantial anticipated job losses at the Electrolux plant in St. Cloud. These 
152.13 	services shall be provided by Career Solutions. Grant funds may be used for, but are not 
152.14 	limited to, GED programs, English language courses, computer literacy efforts, and training 
152.15 	in the manufacturing and construction trades. In addition, the commissioner of employment 
152.16 	and economic development is directed to take all necessary steps, including application for 
152.17 	any required federal waivers, to begin providing services to affected workers before 
152.18 	December 31, 2018.

152.19 	Sec. 5. USE OF LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 152.20 	Notwithstanding Minnesota Statutes, section 116J.8731, and any law to the contrary, a 
152.21 	home rule charter or statutory city, county, or town may, before July 1, 2018, commit money 
152.22 	received from the repayment of funds awarded under Minnesota Statutes, section 116J.8731, 
152.23 	to a business revolving loan fund partially funded by the federal government. Once 
152.24 	committed, funds may be used for any purpose allowed by the federal program.

152.25 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2007.

152.26 	Sec. 6. REVISOR'S INSTRUCTION; MIF NAME CHANGE TO N-SODA.
 152.27 	In Minnesota Statutes, the revisor of statutes shall change the term "Minnesota investment 
152.28 	fund" to "North Star Opportunity and Development Account" wherever it is apparent from 
152.29 	context that the term "Minnesota investment fund" refers to the program under Minnesota 
152.30 	Statutes, section 116J.8731.

153.1 	ARTICLE 7
153.2 	ENERGY

153.3 	Section 1. Minnesota Statutes 2017 Supplement, section 116C.779, subdivision 1, is 
153.4 	amended to read:
153.5 		Subdivision 1.Renewable development account. (a) The renewable development 
153.6 	account is established as a separate account in the special revenue fund in the state treasury. 
153.7 	Appropriations and transfers to the account shall be credited to the account. Earnings, such 
153.8 	as interest, dividends, and any other earnings arising from assets of the account, shall be 
153.9 	credited to the account. Funds remaining in the account at the end of a fiscal year are not 
153.10 	canceled to the general fund but remain in the account until expended. The account shall 
153.11 	be administered by the commissioner of management and budget as provided under this 
153.12 	section.
153.13 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
153.14 	plant must transfer all funds in the renewable development account previously established 
153.15 	under this subdivision and managed by the public utility to the renewable development 
153.16 	account established in paragraph (a). Funds awarded to grantees in previous grant cycles 
153.17 	that have not yet been expended and unencumbered funds required to be paid in calendar 
153.18 	year 2017 under paragraphs (e) and (f) and (g), and sections 116C.7792 and 216C.41, are 
153.19 	not subject to transfer under this paragraph.
153.20 	(c) Except as provided in subdivision 1a, Beginning January 15, 2018, and continuing 
153.21 	each January 15 thereafter, the public utility that owns the Prairie Island and Monticello 
153.22 	nuclear generating plant plants must transfer to the renewable development account $500,000 
153.23 	each year for each dry cask containing spent fuel that is located at the Prairie Island power 
153.24 	plant for $20,000,000 each year the either plant is in operation, and $7,500,000 each year 
153.25 	the plant is not in operation, if ordered by the commission pursuant to paragraph (i).(h), 
153.26 	$7,500,000 each year the Prairie Island plant is not in operation and $5,250,000 each year 
153.27 	the Monticello plant is not in operation. The fund transfer must be made if nuclear waste is 
153.28 	stored in a dry cask at the independent spent-fuel storage facility at Prairie Island or 
153.29 	Monticello for any part of a year.
153.30 	(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
153.31 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
153.32 	plant must transfer to the renewable development account $350,000 each year for each dry 
153.33 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
153.34 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 
154.1 	by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear 
154.2 	waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
154.3 	any part of a year.
154.4 	(e) (d) Each year, the public utility shall withhold from the funds transferred to the 
154.5 	renewable development account under paragraphs paragraph (c) and (d) the amount necessary 
154.6 	to pay its obligations under paragraphs (e), (f) and (g), (k), and (n), and sections 116C.7792
154.7 	and 216C.41, for that calendar year.
154.8 	(f) (e) If the commission approves a new or amended power purchase agreement, the 
154.9 	termination of a power purchase agreement, or the purchase and closure of a facility under 
154.10 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
154.11 	the public utility subject to this section shall enter into a contract with the city in which the 
154.12 	poultry litter plant is located to provide grants to the city for the purposes of economic 
154.13 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
154.14 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
154.15 	by the public utility from funds withheld from the transfer to the renewable development 
154.16 	account, as provided in paragraphs (b) and (e) (d).
154.17 	(g)(f) If the commission approves a new or amended power purchase agreement, or the 
154.18 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
154.19 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
154.20 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
154.21 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
154.22 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
154.23 	30 days after the commission approves the new or amended power purchase agreement, or 
154.24 	the termination of the power purchase agreement, and on each June 1 thereafter through 
154.25 	2021, to assist the transition required by the new, amended, or terminated power purchase 
154.26 	agreement. The grant shall be paid by the public utility from funds withheld from the transfer 
154.27 	to the renewable development account as provided in paragraphs (b) and (e) (d).
154.28 	(h)(g) The collective amount paid under the grant contracts awarded under paragraphs 
154.29 	(e) and (f) and (g) is limited to the amount deposited into the renewable development account, 
154.30 	and its predecessor, the renewable development account, established under this section, that 
154.31 	was not required to be deposited into the account under Laws 1994, chapter 641, article 1, 
154.32 	section 10.
154.33 	(i) (h) After discontinuation of operation of the Prairie Island nuclear plant or the 
154.34 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
155.1 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
155.2 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
155.3 	facility for any year in which the commission finds, by the preponderance of the evidence, 
155.4 	that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 
155.5 	at the facility to a permanent or interim storage site out of the state. This determination shall 
155.6 	be made at least every two years.
155.7 	(i) The public utility shall file annually with the commission a petition to recover all 
155.8 	funds required to be transferred or withheld under paragraphs (c) to (f) for the next year 
155.9 	through a rider mechanism. The commission shall approve a reasonable cost recovery 
155.10 	schedule for all such funds.
155.11 	(j) On or before January 15 of each year, the public utility shall file a petition with the 
155.12 	commission setting forth the amounts withheld by the public utility the prior year under 
155.13 	paragraph (d) and the amount actually paid the prior year for obligations identified in 
155.14 	paragraph (d). If the amount actually paid is less than the amount withheld, the public utility 
155.15 	shall deduct the surplus from the amount withheld for the current year under paragraph (d). 
155.16 	If the amount actually paid is more than the amount withheld, the public utility shall add 
155.17 	the deficiency amount to the amount withheld for the current year under paragraph (d). Any 
155.18 	surplus remaining in the account after all programs identified in paragraph (d) are terminated 
155.19 	must be returned to the customers of the public utility.
155.20 	(j) (k) Funds in the account may be expended only for any of the following purposes:
155.21 	(1) to stimulate research and development of renewable electric energy technologies;
155.22 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
155.23 	electricity storage, load control, and smart meter technology; and
155.24 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
155.25 	efficiency and flexibility.
155.26 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
155.27 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
155.28 	Prairie Island Indian community or its members.
155.29 	The utility that owns a nuclear generating plant is eligible to apply for grants under this 
155.30 	subdivision.
155.31 	(k) (l) For the purposes of paragraph (j) (k), the following terms have the meanings 
155.32 	given:
156.1 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
156.2 	(c), clauses (1), (2), (4), and (5); and
156.3 	(2) "grid modernization" means:
156.4 	(i) enhancing the reliability of the electrical grid;
156.5 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
156.6 	and
156.7 	(iii) increasing energy conservation opportunities by facilitating communication between 
156.8 	the utility and its customers through the use of two-way meters, control technologies, energy 
156.9 	storage and microgrids, technologies to enable demand response, and other innovative 
156.10 	technologies.
156.11 	(l) (m) A renewable development account advisory group that includes, among others, 
156.12 	representatives of the public utility and its ratepayers, and includes at least one representative 
156.13 	of the Prairie Island Indian community appointed by that community's tribal council, shall 
156.14 	develop recommendations on account expenditures. Members of the advisory group shall 
156.15 	be chosen by the public utility. The advisory group must design a request for proposal and 
156.16 	evaluate projects submitted in response to a request for proposals. The advisory group must 
156.17 	utilize an independent third-party expert to evaluate proposals submitted in response to a 
156.18 	request for proposal, including all proposals made by the public utility. A request for proposal 
156.19 	for research and development under paragraph (j) (k), clause (1), may be limited to or include 
156.20 	a request to higher education institutions located in Minnesota for multiple projects authorized 
156.21 	under paragraph (j) (k), clause (1). The request for multiple projects may include a provision 
156.22 	that exempts the projects from the third-party expert review and instead provides for project 
156.23 	evaluation and selection by a merit peer review grant system. In the process of determining 
156.24 	request for proposal scope and subject and in evaluating responses to request for proposals, 
156.25 	the advisory group must strongly consider, where reasonable, potential benefit to Minnesota 
156.26 	citizens and businesses and the utility's ratepayers.
156.27 	(n) The cost of acquiring the services of the independent third-party expert described in 
156.28 	paragraph (m) and any other reasonable costs incurred to administer the advisory group and 
156.29 	its actions as required by this section shall be paid from funds withheld by the public utility 
156.30 	under paragraph (d).
156.31 	(m)(o) The advisory group shall submit funding recommendations to the public utility, 
156.32 	which has full and sole authority to determine which expenditures shall be submitted by 
156.33 	the advisory group to the legislature commission. The commission may approve proposed 
156.34 	expenditures, may disapprove proposed expenditures that it finds not to be in compliance 
157.1 	with this subdivision or otherwise not in the public interest, and may, if agreed to by the 
157.2 	public utility, modify proposed expenditures. The commission shall, by order, submit its 
157.3 	funding recommendations to the legislature as provided under paragraph (n) (p).
157.4 	(n) (p) The commission shall present its recommended appropriations from the account 
157.5 	to the senate and house of representatives committees with jurisdiction over energy policy 
157.6 	and finance annually by February 15. Expenditures from the account must be appropriated 
157.7 	by law. In enacting appropriations from the account, the legislature:
157.8 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
157.9 	a project recommended by the commission; and
157.10 	(2) may not appropriate money for a project the commission has not recommended 
157.11 	funding.
157.12 	(o) (q) A request for proposal for renewable energy generation projects must, when 
157.13 	feasible and reasonable, give preference to projects that are most cost-effective for a particular 
157.14 	energy source.
157.15 	(p) (r) The advisory group must annually, by February 15, report to the chairs and ranking 
157.16 	minority members of the legislative committees with jurisdiction over energy policy on 
157.17 	projects funded by the account under paragraph (k) for the prior year and all previous years. 
157.18 	The report must, to the extent possible and reasonable, itemize the actual and projected 
157.19 	financial benefit to the public utility's ratepayers of each project.
157.20 	(s) By June 1, 2018, and each June 1 thereafter, the public utility that owns the Prairie 
157.21 	Island Nuclear Electric Generating Plant must submit to the commissioner of management 
157.22 	and budget an estimate of the amount the public utility will deposit into the account the 
157.23 	following January 15, based on the provisions of paragraphs (c) to (h) and any appropriations 
157.24 	made from the fund during the most recent legislative sessions.
157.25 	(q) (t) By February 1June 30, 2018, and each February 1June 30 thereafter, the 
157.26 	commissioner of management and budget shall estimate the balance in the account as of 
157.27 	the following January 31, taking into account the balance in the account as of June 30 and 
157.28 	the information provided under paragraph (r). By July 15, 2018, and each July 15 thereafter, 
157.29 	the commissioner of management and budget shall submit a written report regarding the 
157.30 	availability of funds in and obligations of the account to the chairs and ranking minority 
157.31 	members of the senate and house committees with jurisdiction over energy policy and 
157.32 	finance, the public utility, and the advisory group. If more than $15,000,000 is estimated 
157.33 	to be available in the account as of January 31, the advisory group must, by July 30, 2018, 
158.1 	and each July 30 thereafter, issue a request for proposals to initiate a grant cycle for the 
158.2 	purposes of paragraph (k).
158.3 	(r) (u) A project receiving funds from the account must produce a written final report 
158.4 	that includes sufficient detail for technical readers and a clearly written summary for 
158.5 	nontechnical readers. The report must include an evaluation of the project's financial, 
158.6 	environmental, and other benefits to the state and the public utility's ratepayers.
158.7 	(s) (v) Final reports, any mid-project status reports, and renewable development account 
158.8 	financial reports must be posted online on a public Web site designated by the commissioner 
158.9 	of commerce.
158.10 	(t) (w) All final reports must acknowledge that the project was made possible in whole 
158.11 	or part by the Minnesota renewable development account, noting that the account is financed 
158.12 	by the public utility's ratepayers.
158.13 	(u) (x) Of the amount in the renewable development account, priority must be given to 
158.14 	making the payments required under section 216C.417.

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

158.16 	Sec. 2. Minnesota Statutes 2017 Supplement, section 116C.7792, is amended to read:
158.17 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
158.18 	The utility subject to section 116C.779 shall operate a program to provide solar energy 
158.19 	production incentives for solar energy systems of no more than a total aggregate nameplate 
158.20 	capacity of 2040 kilowatts direct current per premises. The owner of a solar energy system 
158.21 	installed before June 1, 2018, is eligible to receive a production incentive under this section 
158.22 	for any additional solar energy systems constructed at the same customer location, provided 
158.23 	the aggregate capacity of all systems at the customer location does not exceed 40 kilowatts. 
158.24 	The program shall be operated for eight consecutive calendar years commencing in 2014. 
158.25 	$5,000,000 shall be allocated in each of the first four years, $15,000,000 in the fifth year, 
158.26 	$10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth year from 
158.27 	funds withheld from transfer to the renewable development account under section 116C.779, 
158.28 	subdivision 1, paragraphs (b) and (e) paragraph (d), and placed in a separate account for 
158.29 	the purpose of the solar production incentive program operated by the utility and not for 
158.30 	any other program or purpose. Any unspent amount allocated in the fifth year is available 
158.31 	until December 31 of the sixth year. Any unspent amount remaining at the end of an 
158.32 	allocation year must be transferred to the renewable development account or returned to 
158.33 	customers. The solar system must be sized to less than 120 percent of the customer's on-site 
159.1 	annual energy consumption when combined with other distributed generation resources and 
159.2 	subscriptions provided under section 216B.1641 associated with the premise. The production 
159.3 	incentive must be paid for ten years commencing with the commissioning of the system. 
159.4 	The utility must file a plan to operate the program with the commissioner of commerce. 
159.5 	The utility may not operate the program until it is approved by the commissioner. A change 
159.6 	to the program to include projects up to a nameplate capacity of 40 kilowatts or less does 
159.7 	not require the utility to file a plan with the commissioner. Any plan approved by the 
159.8 	commissioner of commerce must not provide an increased incentive scale over prior years 
159.9 	unless the commissioner demonstrates that changes in the market for solar energy facilities 
159.10 	require an increase.

159.11 	EFFECTIVE DATE. This section is effective June 1, 2018.

159.12 	Sec. 3. [116C.7793] PRAIRIE ISLAND NET ZERO PROJECT.
159.13 		Subdivision 1.Program established. The Prairie Island Net Zero Project is established 
159.14 	with the goal of the Prairie Island Indian Community developing an energy system that 
159.15 	results in net zero emissions.
159.16 		Subd. 2.Grant. The commissioner of employment and economic development shall 
159.17 	enter into a grant contract with the Prairie Island Indian Community to provide $20,000,000 
159.18 	on July 1, 2018, and $5,000,000 each year thereafter for four years to stimulate research, 
159.19 	development, and implementation of renewable energy projects benefitting the Prairie Island 
159.20 	Indian Community or its members.
159.21 		Subd. 3.Plan; report. The Prairie Island Indian Community shall file a plan with the 
159.22 	commissioner of employment and economic development no later than July 1, 2019, 
159.23 	describing the Prairie Island Net Zero Project elements and implementation strategy. The 
159.24 	Prairie Island Indian Community shall file a report on July 1, 2020, and each July 1 thereafter 
159.25 	through 2023, describing the progress made in implementing the project and the use of 
159.26 	funds expended.
159.27 		Subd. 4.Appropriation. Notwithstanding section 116C.779, subdivision 1, paragraph 
159.28 	(k), $20,000,000 is appropriated in fiscal year 2019 and $5,000,000 is appropriated each 
159.29 	year in fiscal years 2020, 2021, 2022, and 2023, from the renewable development account 
159.30 	under section 116C.779, subdivision 1, to the commissioner of employment and economic 
159.31 	development for a grant to the Prairie Island Indian Community for the purposes of this 
159.32 	section. Any funds remaining at the end of a fiscal year do not cancel to the renewable 
159.33 	development account but remain available until spent. This subdivision expires upon the 
159.34 	last transfer of funds to the commissioner.

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

160.2 	Sec. 4. Minnesota Statutes 2016, section 216A.03, is amended by adding a subdivision to 
160.3 	read:
160.4 		Subd. 10.Offices. The Public Utilities Commission's offices must be located in Virginia, 
160.5 	Minnesota.

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

160.7 	Sec. 5. Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision to 
160.8 	read:
160.9 		Subd. 13a.Pension rate base. The commission must allow a public utility to include 
160.10 	in the rate base and recover from ratepayers the costs incurred to contribute to employee 
160.11 	pensions, including (1) accumulated contributions in excess of net periodic benefit costs, 
160.12 	and (2) contributions necessary to comply with the federal Pension Protection Act of 2006 
160.13 	and other applicable federal and state pension funding requirements. A public utility is 
160.14 	authorized to track for future recovery any unrecoverable return of pension rate base costs 
160.15 	and investments at the return on investment level established in the public utility's last 
160.16 	general rate case that have been incurred during the period between general rate cases.

160.17 	Sec. 6. Minnesota Statutes 2017 Supplement, section 216B.164, subdivision 5, is amended 
160.18 	to read:
160.19 		Subd. 5.Dispute; resolution. (a) In the event of disputes a dispute between a qualifying 
160.20 	facility and a public utility and a qualifying facility or a cooperative electric association that 
160.21 	has not elected to resolve disputes under subdivision 11, either party may request a 
160.22 	determination of the issue by the commission. In any such determination, the burden of 
160.23 	proof shall be is on the public utility or cooperative electric association. The commission 
160.24 	in its order resolving each such dispute shall require payments to the prevailing party of the 
160.25 	prevailing party's costs, disbursements, and reasonable attorneys' fees, except that the 
160.26 	qualifying facility will be required to pay the costs, disbursements, and attorneys' fees of 
160.27 	the public utility or cooperative electric association only if the commission finds that the 
160.28 	claims of the qualifying facility in the dispute have been made in bad faith, or are a sham, 
160.29 	or are frivolous.
160.30 	(b) Notwithstanding subdivisions 9 and 11, a qualifying facility over 20 megawatts may, 
160.31 	until December 31, 2022, request that the commission resolve a dispute with any utility, 
160.32 	including a cooperative electric association or municipal utility, under paragraph (a).

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

161.2 	Sec. 7. Minnesota Statutes 2017 Supplement, section 216B.1691, subdivision 2f, is amended 
161.3 	to read:
161.4 		Subd. 2f.Solar energy standard. (a) In addition to the requirements of subdivisions 2a 
161.5 	and 2b, each public utility shall generate or procure sufficient electricity generated by solar 
161.6 	energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at 
161.7 	least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is 
161.8 	generated by solar energy.
161.9 	(b) For a public utility with more than 200,000 retail electric customers, at least ten 
161.10 	percent of the 1.5 percent goal must be met by solar energy generated by or procured from 
161.11 	solar photovoltaic devices with a nameplate capacity of 20 40 kilowatts or less.
161.12 	(c) A public utility with between 50,000 and 200,000 retail electric customers:
161.13 	(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by 
161.14 	or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or 
161.15 	less; and
161.16 	(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions 
161.17 	of 40 kilowatts or less to a community solar garden program operated by the public utility 
161.18 	that has been approved by the commission.
161.19 	(d) The solar energy standard established in this subdivision is subject to all the provisions 
161.20 	of this section governing a utility's standard obligation under subdivision 2a.
161.21 	(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail 
161.22 	electric sales in Minnesota be generated by solar energy.
161.23 	(f) For the purposes of calculating the total retail electric sales of a public utility under 
161.24 	this subdivision, there shall be excluded retail electric sales to customers that are:
161.25 	(1) an iron mining extraction and processing facility, including a scram mining facility 
161.26 	as defined in Minnesota Rules, part 6130.0100, subpart 16; or
161.27 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
161.28 	manufacturer.
161.29 	Those customers may not have included in the rates charged to them by the public utility 
161.30 	any costs of satisfying the solar standard specified by this subdivision.
162.1 	(g) A public utility may not use energy used to satisfy the solar energy standard under 
162.2 	this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may 
162.3 	not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the 
162.4 	solar standard under this subdivision.
162.5 	(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated 
162.6 	with a solar photovoltaic device installed and generating electricity in Minnesota after 
162.7 	August 1, 2013, but before 2020 may be used to meet the solar energy standard established 
162.8 	under this subdivision.
162.9 	(i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file 
162.10 	a report with the commission reporting its progress in achieving the solar energy standard 
162.11 	established under this subdivision.

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

162.13 	Sec. 8. [216B.1697] CARBON REDUCTION FACILITIES; NUCLEAR ENERGY.
162.14 		Subdivision 1.Qualifying facilities. An existing large electric generating power plant, 
162.15 	as defined in section 216B.2421, subdivision 2, clause (1), employing nuclear technology 
162.16 	to generate electricity qualifies for designation as a carbon reduction facility as provided in 
162.17 	this section.
162.18 		Subd. 2.Proposal submission. (a) A public utility may submit a proposal to the 
162.19 	commission for designation of a qualifying facility as a carbon reduction facility under this 
162.20 	section. The proposal must be filed within a public utility's new resource plan filing no 
162.21 	earlier than February 1, 2019. The proposal shall include:
162.22 	(1) a showing that the facility meets the requirements of subdivision 1;
162.23 	(2) a proposed statement of the total expected costs, including, but not limited to, capital 
162.24 	investments and operation and maintenance costs associated with the operation of the facility. 
162.25 	The total expected costs shall cover a period not to exceed the planning period of the public 
162.26 	utility's new resource plan;
162.27 	(3) details about all costs currently included in rates, current operating costs if different 
162.28 	than those currently included in rates, and an evaluation of the utility's forecasted costs 
162.29 	prepared by an independent evaluator; and
162.30 	(4) an analysis of how the proposed capital investments and operation and maintenance 
162.31 	costs would impact rates if that impact is different than any described in the utility's most 
162.32 	recently filed resource plan.
163.1 	(b) If the information submitted in the original proposal changes because it was unknown 
163.2 	and not capable of being known at the time of the original proposal, a utility may at any 
163.3 	time file additional proposals for the same facility.
163.4 	(c) The proposal may ask the commission to establish a sliding scale rate-of-return 
163.5 	mechanism for the capital investments to provide an additional incentive for the utility to 
163.6 	complete the project at or under the proposed costs.
163.7 		Subd. 3.Proposal approval. (a) The commission shall approve, reject, or modify the 
163.8 	proposed designation of the facility and the total expected costs submitted by the public 
163.9 	utility. The commission shall make a final determination on the proposed designation 
163.10 	concurrent with its order in the resource plan, or sooner, should the commission determine 
163.11 	that it is in the public interest.
163.12 	(b) When conducting the review in paragraph (a), the commission shall allow intervention 
163.13 	by the Department of Commerce, the Office of the Attorney General, ratepayer advocates, 
163.14 	the Prairie Island and Monticello communities, and other interested parties. The public 
163.15 	utility shall pay the costs of any nuclear expert retained by the Department of Commerce.
163.16 	(c) To the extent the commission modifies the proposal, the utility may choose whether 
163.17 	to accept the modifications. If the utility does not accept the modifications, the commission 
163.18 	shall deem the proposal withdrawn.
163.19 	(d) With respect to any carbon reduction facility, the approval shall constitute a finding 
163.20 	of prudency for the total expected costs contained in the proposal, meaning that the utility 
163.21 	shall be entitled to recover, through a subsequent rate case, any actual costs not in excess 
163.22 	of the total expected costs provided in its proposal for designation as a carbon reduction 
163.23 	facility.
163.24 	(e) Upon approval of a proposed designation of a facility and the total expected costs 
163.25 	submitted by the utility, the utility shall provide biennial updates to the commission regarding 
163.26 	its progress with respect to adhering to the approved costs. The commission may issue 
163.27 	orders it deems necessary to ensure that the carbon reduction facility remains cost-effective 
163.28 	for customers and financially viable for the utility.

163.29 	Sec. 9. [216C.419] RESIDENTIAL BIOMASS HEATING SYSTEM GRANT 
163.30 	PROGRAM.
163.31 		Subdivision 1.Definition. For purposes of this section, the following definitions have 
163.32 	the meanings given.
164.1 	(a) "Homeowner" means the owner of a residential homestead, as defined in section 
164.2 	273.124, subdivision 1, paragraph (a), or the owner of an agricultural homestead, as defined 
164.3 	in section 273.13, subdivision 23, paragraph (a).
164.4 	(b) "Residential biomass heating system" means:
164.5 	(1) a pellet stove or wood heater, as defined in Code of Federal Regulations, title 40, 
164.6 	section 60.531; or
164.7 	(2) a residential forced-air furnace or residential hydronic heater, as defined in Code of 
164.8 	Federal Regulations, title 40, section 60.5473.
164.9 		Subd. 2.Establishment. A grant program is established under the Department of 
164.10 	Commerce to award grants to homeowners to fund the purchase and installation of a 
164.11 	residential biomass heating system.
164.12 		Subd. 3.Eligible expenditures. (a) Grants awarded to a homeowner under this section 
164.13 	may be used to pay up to the lesser of 33 percent of the cost to purchase and install a 
164.14 	residential biomass heating system in the homeowner's residence, or $5,000.
164.15 	(b) A grant must not be awarded under this section to a homeowner for a residential 
164.16 	biomass heating system that is not certified by the federal Environmental Protection Agency 
164.17 	as meeting the 2015 New Source Performance Standards for air emissions for these heating 
164.18 	systems, contained in Code of Federal Regulations, title 40, part 60, subparts AAA and 
164.19 	QQQQ, as applicable.
164.20 		Subd. 4.Application process. A homeowner must submit an application to the 
164.21 	commissioner on a form prescribed by the commissioner. The commissioner must develop 
164.22 	administrative procedures governing the application and grant award process, and must 
164.23 	award grants on a first-come, first-served basis.

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

164.25 	Sec. 10. [216C.437] LOCAL GOVERNMENT EMERALD ASH BORER REMOVAL 
164.26 	GRANT PROGRAM.
164.27 		Subdivision 1.Establishment.  The Department of Commerce must establish a program 
164.28 	to:
164.29 	(1) assist eligible local units of government collect and dispose of the wood waste created 
164.30 	when ash trees are removed from public land due to either (i) emerald ash borer infestation, 
164.31 	or (ii) an emerald ash borer management program;
165.1 	(2) award grants to process the wood waste into usable biomass fuel, properly transport 
165.2 	the biomass fuel to an eligible district heating and cooling system cogeneration facility, and 
165.3 	use the biomass fuel to generate electricity and thermal energy; and
165.4 	(3) reduce the biomass fuel costs passed through by an eligible heating and cooling 
165.5 	system cogeneration facility to the public utility that owns the Prairie Island nuclear 
165.6 	generating plant.
165.7 		Subd. 2.Eligibility. In order to be eligible for the program under subdivision 1, an 
165.8 	applicant must be a district heating and cooling system cogeneration facility that:
165.9 	(1) is located in the city of St. Paul;
165.10 	(2) operates as a nonprofit entity;
165.11 	(3) accepts wood waste from a local unit of government that is:
165.12 	(i) located within the service area of the public utility that is subject to section 116C.779;
165.13 	(ii) located in a county or portion of a county that has been designated by the 
165.14 	commissioner of agriculture as quarantined with respect to the transportation of woody 
165.15 	materials from ash trees due to demonstrated emerald ash borer infestation; and
165.16 	(iii) responsible for the removal of diseased ash trees from public lands within its 
165.17 	jurisdiction; and
165.18 	(4) uses biomass fuel to generate electricity and thermal energy.
165.19 		Subd. 3.Eligible expenditures. (a) Grants may be awarded under this section to an 
165.20 	eligible recipient under subdivision 2 to:
165.21 	(1) process into acceptable biomass fuel woody materials containing ash trees that have 
165.22 	been removed due to disease or implementation of an emerald ash borer management 
165.23 	program; or
165.24 	(2) transport processed biomass fuel, woody materials infested by emerald ash borer, 
165.25 	and woody material removed under an emerald ash borer management program to a storage 
165.26 	location or to the district heating and cooling system cogeneration facility in downtown St. 
165.27 	Paul.
165.28 	(b) Grant funds may be used to pay reasonable costs incurred by the Department of 
165.29 	Agriculture to administer this section.
165.30 	(c) All funds awarded under paragraph (a) must reduce on a dollar-for-dollar basis the 
165.31 	charges billed by an eligible heating and cooling system cogeneration facility to the public 
166.1 	utility that owns the Prairie Island Nuclear Electric Generating Plant under the power 
166.2 	purchase agreement in effect on January 1, 2018. A heating and cooling system cogeneration 
166.3 	facility receiving a grant under this section must submit a monthly statement showing the 
166.4 	reduction in charges resulting from the requirement of this paragraph to the public utility 
166.5 	that owns the Prairie Island Nuclear Electric Generating Plant.
166.6 		Subd. 4.Expiration. This section expires the day after the power purchase agreement 
166.7 	in effect on January 1, 2018, between an eligible heating and cooling system cogeneration 
166.8 	facility and the public utility that owns the Prairie Island Nuclear Electric Generating Plant 
166.9 	expires. This section does not extend or renew a power purchase agreement referenced in 
166.10 	this subdivision.

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

166.12 	Sec. 11. Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:
166.13 		Subd. 9.Timing. The commission shall make a final decision on an application within 
166.14 	60 days after receipt of the report of the administrative law judge. A final decision on the 
166.15 	request for a site permit or route permit shall be made within one year after the commission's 
166.16 	determination that an application is complete. The commission may extend this time limit 
166.17 	for up to three months 30 days for just cause or upon agreement of the applicant.

166.18 	EFFECTIVE DATE. This section is effective the day following final enactment and 
166.19 	applies to any application filed with the commission on or after that date.

166.20 	Sec. 12. Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:
166.21 		Subd. 7.Timing. The commission shall make a final decision on an application within 
166.22 	60 days after completion of the public hearing. A final decision on the request for a site 
166.23 	permit or route permit under this section shall be made within six months after the 
166.24 	commission's determination that an application is complete. The commission may extend 
166.25 	this time limit for up to three months 30 days for just cause or upon agreement of the 
166.26 	applicant.

166.27 	EFFECTIVE DATE. This section is effective the day following final enactment and 
166.28 	applies to any application filed with the commission on or after that date.

166.29 	Sec. 13. Laws 2017, chapter 94, article 10, section 28, is amended to read:
166.30 	Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
166.31 	THERMAL REBATES.
 167.1 	(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner 
167.2 	of a solar thermal system whose application was approved by the commissioner of commerce 
167.3 	after the effective date of this act.
167.4 	(b) Unspent money remaining in the account established under Minnesota Statutes 2014, 
167.5 	section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF renewable 
167.6 	development account established under Minnesota Statutes 2016, section 116C.779, 
167.7 	subdivision 1.

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

167.9 	Sec. 14. Laws 2017, chapter 94, article 10, section 29, is amended to read:
167.10 	Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF 
167.11 	UNEXPENDED GRANT FUNDS.
 167.12 	(a) No later than 30 days after the effective date of this section, the utility subject to 
167.13 	Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person 
167.14 	who received a grant funded from the renewable development account previously established 
167.15 	under that subdivision:
167.16 	(1) after January 1, 2012; and
167.17 	(2) before January 1, 2012, if the funded project remains incomplete as of the effective 
167.18 	date of this section.
167.19 	The notice must contain the provisions of this section and instructions directing grant 
167.20 	recipients how unexpended funds can be transferred to the clean energy advancement fund
167.21 	renewable development account.
167.22 	(b) A recipient of a grant from the renewable development account previously established 
167.23 	under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after 
167.24 	receiving the notice required under paragraph (a), transfer any grant funds that remain 
167.25 	unexpended as of the effective date of this section to the clean energy advancement fund
167.26 	renewable development account if, by that effective date, all of the following conditions 
167.27 	are met:
167.28 	(1) the grant was awarded more than five years before the effective date of this section;
167.29 	(2) the grant recipient has failed to obtain control of the site on which the project is to 
167.30 	be constructed;
167.31 	(3) the grant recipient has failed to secure all necessary permits or approvals from any 
167.32 	unit of government with respect to the project; and
168.1 	(4) construction of the project has not begun.
168.2 	(c) A recipient of a grant from the renewable development account previously established 
168.3 	under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds 
168.4 	that remain unexpended five years after the grant funds are received by the grant recipient 
168.5 	if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant 
168.6 	recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary 
168.7 	of the receipt of the grant funds.
168.8 	(d) A person who transfers funds to the clean energy advancement fund renewable 
168.9 	development account under this section is eligible to apply for funding from the clean energy 
168.10 	advancement fund renewable development account.

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

168.12 	Sec. 15.  REPEALER.
 168.13 	Minnesota Statutes 2016, section 216B.2423, is repealed.

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

168.15 	ARTICLE 8
168.16 	HOUSING

168.17 	Section 1. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
168.18 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
168.19 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
168.20 	new construction or remodeling of any building subject to the Minnesota Residential Code.
168.21 		Subd. 2.Impact on housing; agency determination. (a) An agency must determine if 
168.22 	implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
168.23 	increase the cost of residential construction or remodeling by $1,000 or more per unit, and 
168.24 	whether the proposed rule meets the state regulatory policy objectives described in section 
168.25 	14.002. In calculating the cost of implementing a proposed rule, the agency may consider 
168.26 	the impact of other related proposed rules on the overall cost of residential construction. If 
168.27 	applicable, the agency may include offsetting savings that may be achieved through 
168.28 	implementation of related proposed rules in its calculation under this subdivision.
168.29 	(b) The agency must make the determination required by paragraph (a) before the close 
168.30 	of the hearing record, or before the agency submits the record to the administrative law 
168.31 	judge if there is no hearing. Upon request of a party affected by the proposed rule, the 
169.1 	administrative law judge must review and approve or disapprove an agency's determination 
169.2 	under this subdivision.
169.3 		Subd. 3.Notice to legislature; legislative review. If the agency determines that the 
169.4 	impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 2, or 
169.5 	if the administrative law judge separately confirms the cost of any portion of a rule exceeds 
169.6 	the cost threshold provided in subdivision 2, the agency must notify, in writing, the chair 
169.7 	and ranking minority members of the policy committees of the legislature with jurisdiction 
169.8 	over the subject matter of the proposed rule within ten days of the determination. The agency 
169.9 	shall not adopt the proposed rule until after the adjournment of the next annual session of 
169.10 	the legislature convened on or after the date that notice required in this subdivision is given 
169.11 	to the chairs and ranking minority members.

169.12 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to 
169.13 	administrative rules proposed on or after that date.

169.14 	Sec. 2. Minnesota Statutes 2016, section 299D.085, is amended by adding a subdivision 
169.15 	to read:
169.16 		Subd. 3a.Trailer use. A vehicle or a combination of vehicles may tow a trailer during 
169.17 	the movement of an overdimensional load if:
169.18 	(1) the party involved is a building mover licensed by the commissioner of transportation 
169.19 	under section 221.81;
169.20 	(2) the building being moved is not a temporary structure;
169.21 	(3) the overdimensional load is a manufactured home, as defined under section 327.31; 
169.22 	or
169.23 	(4) the overdimensional load is a modular home, as defined under section 297A.668, 
169.24 	subdivision 8, paragraph (b).

169.25 	Sec. 3. Minnesota Statutes 2016, section 326B.815, subdivision 1, is amended to read:
169.26 		Subdivision 1.Fees. (a) For the purposes of calculating fees under section 326B.092, 
169.27 	an initial or renewed residential contractor, residential remodeler, or residential roofer license 
169.28 	is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured 
169.29 	home installers under section 327B.041 is $300 $180 for a three-year period.
170.1 	(b) All initial and renewal licenses, except for manufactured home installer licenses, 
170.2 	shall be effective for two years and shall expire on March 31 of the year after the year in 
170.3 	which the application is made.
170.4 	(c) The commissioner shall in a manner determined by the commissioner, without the 
170.5 	need for any rulemaking under chapter 14, phase in the renewal of residential contractor, 
170.6 	residential remodeler, and residential roofer licenses from one year to two years. By June 
170.7 	30, 2011, all renewed residential contractor, residential remodeler, and residential roofer 
170.8 	licenses shall be two-year licenses.

170.9 	Sec. 4. Minnesota Statutes 2016, section 327.31, is amended by adding a subdivision to 
170.10 	read:
170.11 		Subd. 23.Modular home. "Modular home" means a building or structural unit of closed 
170.12 	construction that has been substantially manufactured or constructed, in whole or in part, 
170.13 	at an off-site location, with the final assembly occurring on site alone or with other units 
170.14 	and attached to a foundation designed to the State Building Code and occupied as a 
170.15 	single-family dwelling. Modular home construction must comply with applicable standards 
170.16 	adopted in Minnesota Rules, chapter 1360 or 1361.

170.17 	Sec. 5. [327.335] PLACEMENT OF MODULAR HOMES.
170.18 	Notwithstanding any other law or ordinance to the contrary, a modular home may be 
170.19 	placed in a manufactured home park as defined in section 327.14, subdivision 3. A modular 
170.20 	home placed in a manufactured home park is a manufactured home for purposes of chapters 
170.21 	327C and 504B and all rights, obligations, and duties, under those chapters apply. A modular 
170.22 	home may not be placed in a manufactured home park without prior written approval of the 
170.23 	park owner. Nothing in this section shall be construed to inhibit the application of zoning, 
170.24 	subdivision, architectural, or esthetic requirements under chapters 394 and 462 that otherwise 
170.25 	apply to manufactured homes or manufactured home parks. A modular home placed in a 
170.26 	manufactured home park under this section shall be assessed and taxed as a manufactured 
170.27 	home.

170.28 	Sec. 6. Minnesota Statutes 2016, section 327B.041, is amended to read:
170.29 	327B.041 MANUFACTURED HOME INSTALLERS.
170.30 	(a) Manufactured home installers are subject to all of the fees in section 326B.092 and 
170.31 	the requirements of sections 326B.802 to 326B.885, except for the following:
171.1 	(1) manufactured home installers are not subject to the continuing education requirements 
171.2 	of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education 
171.3 	requirements established in rules adopted under section 327B.10;
171.4 	(2) the examination requirement of section 326B.83, subdivision 3, for manufactured 
171.5 	home installers shall be satisfied by successful completion of a written examination 
171.6 	administered and developed specifically for the examination of manufactured home installers. 
171.7 	The examination must be administered and developed by the commissioner. The 
171.8 	commissioner and the state building official shall seek advice on the grading, monitoring, 
171.9 	and updating of examinations from the Minnesota Manufactured Housing Association;
171.10 	(3) a local government unit may not place a surcharge on a license fee, and may not 
171.11 	charge a separate fee to installers;
171.12 	(4) a dealer or distributor who does not install or repair manufactured homes is exempt 
171.13 	from licensure under sections 326B.802 to 326B.885;
171.14 	(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; 
171.15 	and
171.16 	(6) manufactured home installers are not subject to the contractor recovery fund in 
171.17 	section 326B.89.
171.18 	(b) The commissioner may waive all or part of the requirements for licensure as a 
171.19 	manufactured home installer for any individual who holds an unexpired license or certificate 
171.20 	issued by any other state or other United States jurisdiction if the licensing requirements of 
171.21 	that jurisdiction meet or exceed the corresponding licensing requirements of the department 
171.22 	and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the 
171.23 	purposes of calculating fees under section 326B.092, licensure as a manufactured home 
171.24 	installer is a business license.

171.25 	Sec. 7. Minnesota Statutes 2016, section 327C.095, subdivision 4, is amended to read:
171.26 		Subd. 4.Public hearing; relocation compensation; neutral third party. The governing 
171.27 	body of the affected municipality shall hold a public hearing to review the closure statement 
171.28 	and any impact that the park closing may have on the displaced residents and the park owner. 
171.29 	At the time of, and in the notice for, the public hearing, displaced residents must be informed 
171.30 	that they may be eligible for payments from the Minnesota manufactured home relocation 
171.31 	trust fund under section 462A.35 as compensation for reasonable relocation costs under 
171.32 	subdivision 13, paragraphs (a) and (e).
172.1 	The governing body of the municipality may also require that other parties, including 
172.2 	the municipality, but excluding the park owner or its purchaser, involved in the park closing 
172.3 	provide additional compensation to residents to mitigate the adverse financial impact of the 
172.4 	park closing upon the residents.
172.5 	At the public hearing, the municipality shall appoint a qualified neutral third party, to 
172.6 	be agreed upon by both the manufactured home park owner and manufactured home owners, 
172.7 	whose hourly cost must be reasonable and paid from the Minnesota manufactured home 
172.8 	relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with 
172.9 	decision-making authority to resolve any questions or disputes regarding any contributions 
172.10 	or disbursements to and from the Minnesota manufactured home relocation trust fund by 
172.11 	either the manufactured home park owner or the manufactured home owners. If the parties 
172.12 	cannot agree on a neutral third party, the municipality will make a determination determine 
172.13 	who shall act as the neutral third party.
172.14 	The qualified neutral third party shall be familiar with manufactured housing and the 
172.15 	requirements of this section. The neutral third party shall keep an overall receipts and cost 
172.16 	summary together with a detailed accounting, for each manufactured lot, of the payments 
172.17 	received by the manufactured home park owner, and expenses approved and payments 
172.18 	disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well 
172.19 	as a record of all services and hours it provided and at what hourly rate it charged to the 
172.20 	Minnesota manufactured home trust fund. This detailed accounting shall be provided to the 
172.21 	manufactured home park owner, the municipality, and the Minnesota Housing Finance 
172.22 	Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph 
172.23 	(h), not later than 30 days after the expiration of the nine-month notice provided in the 
172.24 	closure statement.

172.25 	Sec. 8. Minnesota Statutes 2016, section 327C.095, subdivision 6, is amended to read:
172.26 		Subd. 6.Intent to convert use of park at time of purchase. Before the execution of 
172.27 	an agreement to purchase a manufactured home park, the purchaser must notify the park 
172.28 	owner, in writing, if the purchaser intends to close the manufactured home park or convert 
172.29 	it to another use within one year of the execution of the agreement. The park owner shall 
172.30 	provide a resident of each manufactured home with a 45-day written notice of the purchaser's 
172.31 	intent to close the park or convert it to another use. The notice must state that the park owner 
172.32 	will provide information on the cash price and the terms and conditions of the purchaser's 
172.33 	offer to residents requesting the information. The notice must be sent by first class mail to 
172.34 	a resident of each manufactured home in the park. The notice period begins on the postmark 
173.1 	date affixed to the notice and ends 45 days after it begins. During the notice period required 
173.2 	in this subdivision, the owners of at least 51 percent of the manufactured homes in the park 
173.3 	or a nonprofit organization which has the written permission of the owners of at least 51 
173.4 	percent of the manufactured homes in the park to represent them in the acquisition of the 
173.5 	park shall have the right to meet the cash price and execute an agreement to purchase the 
173.6 	park for the purposes of keeping the park as a manufactured housing community, provided 
173.7 	that the owners or nonprofit organization will covenant and warrant to the park owner in 
173.8 	the agreement that they will continue to operate the park for not less than six years from 
173.9 	the date of closing. The park owner must accept the offer if it meets the cash price and the 
173.10 	same terms and conditions set forth in the purchaser's offer except that the seller is not 
173.11 	obligated to provide owner financing. For purposes of this section, cash price means the 
173.12 	cash price offer or equivalent cash offer as defined in section 500.245, subdivision 1, 
173.13 	paragraph (d).

173.14 	Sec. 9. Minnesota Statutes 2016, section 327C.095, subdivision 12, is amended to read:
173.15 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund. (a) 
173.16 	If a manufactured home owner is required to move due to the conversion of all or a portion 
173.17 	of a manufactured home park to another use, the closure of a park, or cessation of use of 
173.18 	the land as a manufactured home park, the manufactured park owner shall, upon the change 
173.19 	in use, pay to the commissioner of management and budget for deposit in the Minnesota 
173.20 	manufactured home relocation trust fund under section 462A.35, the lesser amount of the 
173.21 	actual costs of moving or purchasing the manufactured home approved by the neutral third 
173.22 	party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph 
173.23 	(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each 
173.24 	multisection manufactured home, for which a manufactured home owner has made 
173.25 	application for payment of relocation costs under subdivision 13, paragraph (c). The 
173.26 	manufactured home park owner shall make payments required under this section to the 
173.27 	Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice 
173.28 	from the neutral third party.
173.29 	(b) A manufactured home park owner is not required to make the payment prescribed 
173.30 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
173.31 	subdivision 13, paragraph (a) or (e), if:
173.32 	(1) the manufactured home park owner relocates the manufactured home owner to 
173.33 	another space in the manufactured home park or to another manufactured home park at the 
173.34 	park owner's expense;
174.1 	(2) the manufactured home owner is vacating the premises and has informed the 
174.2 	manufactured home park owner or manager of this prior to the mailing date of the closure 
174.3 	statement under subdivision 1;
174.4 	(3) a manufactured home owner has abandoned the manufactured home, or the 
174.5 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
174.6 	(4) the manufactured home owner has a pending eviction action for nonpayment of lot 
174.7 	rental amount under section 327C.09, which was filed against the manufactured home owner 
174.8 	prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery 
174.9 	has been ordered by the district court;
174.10 	(5) the conversion of all or a portion of a manufactured home park to another use, the 
174.11 	closure of a park, or cessation of use of the land as a manufactured home park is the result 
174.12 	of a taking or exercise of the power of eminent domain by a governmental entity or public 
174.13 	utility; or
174.14 	(6) the owner of the manufactured home is not a resident of the manufactured home 
174.15 	park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home 
174.16 	is a resident, but came to reside in the manufactured home park after the mailing date of 
174.17 	the closure statement under subdivision 1.
174.18 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
174.19 	is less than $1,000,000 $3,000,000 as of June 30 of each year, the commissioner of 
174.20 	management and budget shall assess each manufactured home park owner by mail the total 
174.21 	amount of $15 for each licensed lot in their park, payable on or before September November
174.22 	15 of that year. The commissioner of management Failure to notify and budget shall deposit 
174.23 	any payments in the Minnesota timely assess the manufactured home relocation trust fund. 
174.24 	On or before July 15 of park owner by August 30 of any year shall waive the assessment 
174.25 	and payment obligations of the manufactured home park owner for that year. Together with 
174.26 	said assessment notice, each year, the commissioner of management and budget shall prepare 
174.27 	and distribute to park owners a letter explaining whether funds are being collected for that 
174.28 	year, information about the collection, an invoice for all licensed lots, and a sample form 
174.29 	for the park owners to collect information on which park residents have been accounted 
174.30 	for. If assessed under this paragraph, the park owner may recoup the cost of the $15 
174.31 	assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park 
174.32 	residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park 
174.33 	owners may adjust payment for lots in their park that are vacant or otherwise not eligible 
174.34 	for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b), 
175.1 	and, for park residents who have not paid the $15 assessment to the park owner by October 
175.2 	15, deduct from the assessment accordingly. The commissioner of management and budget 
175.3 	shall deposit any payments in the Minnesota manufactured home relocation trust fund.
175.4 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
175.5 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
175.6 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
175.7 	attorney fees, court costs, and disbursements.

175.8 	Sec. 10. Minnesota Statutes 2016, section 327C.095, subdivision 13, is amended to read:
175.9 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) If a 
175.10 	manufactured home owner is required to relocate due to the conversion of all or a portion 
175.11 	of a manufactured home park to another use, the closure of a manufactured home park, or 
175.12 	cessation of use of the land as a manufactured home park under subdivision 1, and the 
175.13 	manufactured home owner complies with the requirements of this section, the manufactured 
175.14 	home owner is entitled to payment from the Minnesota manufactured home relocation trust 
175.15 	fund equal to the manufactured home owner's actual relocation costs for relocating the 
175.16 	manufactured home to a new location within a 25-mile50-mile radius of the park that is 
175.17 	being closed, up to a maximum of $7,000 $9,000 for a single-section and $12,500 for a 
175.18 	multisection manufactured home. The actual relocation costs must include the reasonable 
175.19 	cost of taking down, moving, and setting up the manufactured home, including equipment 
175.20 	rental, utility connection and disconnection charges, minor repairs, modifications necessary 
175.21 	for transportation of the home, necessary moving permits and insurance, moving costs for 
175.22 	any appurtenances, which meet applicable local, state, and federal building and construction 
175.23 	codes.
175.24 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) if 
175.25 	the manufactured home park owner is not required to make a payment to the Minnesota 
175.26 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
175.27 	(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota 
175.28 	manufactured home relocation trust fund, the manufactured home owner shall submit to the 
175.29 	neutral third party and the Minnesota Housing Finance Agency, with a copy to the park 
175.30 	owner, an application for payment, which includes:
175.31 	(1) a copy of the closure statement under subdivision 1;
175.32 	(2) a copy of the contract with a moving or towing contractor, which includes the 
175.33 	relocation costs for relocating the manufactured home;
176.1 	(3) a statement with supporting materials of any additional relocation costs as outlined 
176.2 	in subdivision 1;
176.3 	(4) a statement certifying that none of the exceptions to receipt of compensation under 
176.4 	subdivision 12, paragraph (b), apply to the manufactured home owner;
176.5 	(5) a statement from the manufactured park owner that the lot rental is current and that 
176.6 	the annual $15 payments payment to the Minnesota manufactured home relocation trust 
176.7 	fund have has been paid when due; and
176.8 	(6) a statement from the county where the manufactured home is located certifying that 
176.9 	personal property taxes for the manufactured home are paid through the end of that year.
176.10 	(d) The neutral third party shall promptly process all payments within 14 days. If the 
176.11 	neutral third party has acted reasonably and does not approve or deny payment within 45 
176.12 	days after receipt of the information set forth in paragraph (c), the payment is deemed 
176.13 	approved. Upon approval and request by the neutral third party, the Minnesota Housing 
176.14 	Finance Agency shall issue two checks in equal amount for 50 percent of the contract price 
176.15 	payable to the mover and towing contractor for relocating the manufactured home in the 
176.16 	amount of the actual relocation cost, plus a check to the home owner for additional certified 
176.17 	costs associated with third-party vendors, that were necessary in relocating the manufactured 
176.18 	home. The moving or towing contractor shall receive 50 percent upon execution of the 
176.19 	contract and 50 percent upon completion of the relocation and approval by the manufactured 
176.20 	home owner. The moving or towing contractor may not apply the funds to any other purpose 
176.21 	other than relocation of the manufactured home as provided in the contract. A copy of the 
176.22 	approval must be forwarded by the neutral third party to the park owner with an invoice for 
176.23 	payment of the amount specified in subdivision 12, paragraph (a).
176.24 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured home 
176.25 	relocation trust fund under paragraph (a), the manufactured home owner may collect an 
176.26 	amount from the fund after reasonable efforts to relocate the manufactured home have failed 
176.27 	due to the age or condition of the manufactured home, or because there are no manufactured 
176.28 	home parks willing or able to accept the manufactured home within a 25-mile radius. A 
176.29 	manufactured home owner may tender title of the manufactured home in the manufactured 
176.30 	home park to the manufactured home park owner, and collect an amount to be determined 
176.31 	by an independent appraisal. The appraiser must be agreed to by both the manufactured 
176.32 	home park owner and the manufactured home owner. If the appraised market value cannot 
176.33 	be determined, the tax market value, averaged over a period of five years, can be used as a 
176.34 	substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a 
177.1 	single-section and $14,500 for a multisection manufactured home. The minimum amount 
177.2 	that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a 
177.3 	multisection manufactured home. The manufactured home owner shall deliver to the 
177.4 	manufactured home park owner the current certificate of title to the manufactured home 
177.5 	duly endorsed by the owner of record, and valid releases of all liens shown on the certificate 
177.6 	of title, and a statement from the county where the manufactured home is located evidencing 
177.7 	that the personal property taxes have been paid. The manufactured home owner's application 
177.8 	for funds under this paragraph must include a document certifying that the manufactured 
177.9 	home cannot be relocated, that the lot rental is current, that the annual $15 payments to the 
177.10 	Minnesota manufactured home relocation trust fund have been paid when due, that the 
177.11 	manufactured home owner has chosen to tender title under this section, and that the park 
177.12 	owner agrees to make a payment to the commissioner of management and budget in the 
177.13 	amount established in subdivision 12, paragraph (a), less any documented costs submitted 
177.14 	to the neutral third party, required for demolition and removal of the home, and any debris 
177.15 	or refuse left on the lot, not to exceed $1,000 $3,000. The manufactured home owner must 
177.16 	also provide a copy of the certificate of title endorsed by the owner of record, and certify 
177.17 	to the neutral third party, with a copy to the park owner, that none of the exceptions to 
177.18 	receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the 
177.19 	manufactured home owner, and that the home owner will vacate the home within 60 days 
177.20 	after receipt of payment or the date of park closure, whichever is earlier, provided that the 
177.21 	monthly lot rent is kept current.
177.22 	(f) The Minnesota Housing Finance Agency must make a determination of the amount 
177.23 	of payment a manufactured home owner would have been entitled to under a local ordinance 
177.24 	in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's 
177.25 	compensation for relocation costs from the fund under section 462A.35, is the greater of 
177.26 	the amount provided under this subdivision, or the amount under the local ordinance in 
177.27 	effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this 
177.28 	paragraph is intended to increase the liability of the park owner.
177.29 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be 
177.30 	liable to any person for recovery if the funds in the Minnesota manufactured home relocation 
177.31 	trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance 
177.32 	Agency shall keep a record of the time and date of its approval of payment to a claimant.
177.33 	(h)(1) By October 15, 2018, the Minnesota Housing Finance Agency shall post on its 
177.34 	Web site and report to the chairs of the senate Finance Committee and house of 
177.35 	representatives Ways and Means Committee on the Minnesota manufactured home relocation 
178.1 	trust fund, including the account balance, payments to claimants, the amount of any advances 
178.2 	to the fund, the amount of any insufficiencies encountered during the previous calendar 
178.3 	year, and any itemized administrative charges or expenses deducted from the trust fund 
178.4 	balance. If sufficient funds become available, the Minnesota Housing Finance Agency shall 
178.5 	pay the manufactured home owner whose unpaid claim is the earliest by time and date of 
178.6 	approval.
178.7 	(2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its Web 
178.8 	site and report to the chairs of the senate Finance Committee and house of representatives 
178.9 	Ways and Means Committee by January October 15 of each year on the Minnesota 
178.10 	manufactured home relocation trust fund, including the aggregate account balance, the 
178.11 	aggregate assessment payments received, summary information regarding each closed park 
178.12 	including the total payments to claimants and payments received from each closed park, 
178.13 	the amount of any advances to the fund, the amount of any insufficiencies encountered 
178.14 	during the previous calendar fiscal year, reports of neutral third parties provided pursuant 
178.15 	to subdivision 4, and any itemized administrative charges or expenses deducted from the 
178.16 	trust fund balance, all of which should be reconciled to the previous year's trust fund balance. 
178.17 	If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
178.18 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.

178.19 	Sec. 11. Minnesota Statutes 2016, section 327C.095, is amended by adding a subdivision 
178.20 	to read:
178.21 		Subd. 16.Reporting of licensed manufactured home parks. The Department of Health 
178.22 	or, if applicable, local units of government that have entered into a delegation of authority 
178.23 	agreement with the Department of Health as provided in section 145A.07 shall provide, by 
178.24 	March 31 of each year, a list of names and addresses of the manufactured home parks 
178.25 	licensed in the previous year, and for each manufactured home park, the current licensed 
178.26 	owner, the owner's address, the number of licensed manufactured home lots, and other data 
178.27 	as they may request for the Department of Management and Budget to invoice each licensed 
178.28 	manufactured home park in Minnesota.

178.29 	Sec. 12. Minnesota Statutes 2016, section 462A.222, subdivision 3, is amended to read:
178.30 		Subd. 3.Allocation procedure. (a) Projects will be awarded tax credits in two 
178.31 	competitive rounds on an annual basis. The date for applications for each round must be 
178.32 	determined by the agency. No allocating agency may award tax credits prior to the application 
178.33 	dates established by the agency.
179.1 	(b) Each allocating agency must meet the requirements of section 42(m) of the Internal 
179.2 	Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax 
179.3 	credits and the selection of projects.
179.4 	(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) 
179.5 	of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the 
179.6 	project satisfies the requirements of the allocating agency's qualified allocation plan. For 
179.7 	projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the 
179.8 	Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds 
179.9 	for the project, or the issuer of the bonds for the project is located outside the jurisdiction 
179.10 	of a city or county that has received reserved tax credits, the applicable allocation plan is 
179.11 	the agency's qualified allocation plan. Notwithstanding this paragraph, any projects that are 
179.12 	eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue 
179.13 	Code of 1986, as amended, for which the Minnesota Housing Finance Agency is the issuer 
179.14 	of the bonds for the project, or the issuer of the bonds for the project is located outside the 
179.15 	jurisdiction of a city or county that has received reserved tax credits, and such project meets 
179.16 	the requirements of both section 474A.047 and section 42 of the Internal Revenue Code, 
179.17 	such projects shall be deemed for all purposes to have satisfied all the requirements of the 
179.18 	Minnesota Housing Finance Agency's qualified allocation plan and all other related guidance 
179.19 	and requirements and the agency shall timely issue the necessary determination letters under 
179.20 	section 42(m) of the Internal Revenue Code of 1986, as amended, or Form 8609. The 
179.21 	Minnesota Housing Finance Agency's qualified allocation plan is required to contain the 
179.22 	provisions of this subdivision.
179.23 	(d) For applications submitted for the first round, an allocating agency may allocate tax 
179.24 	credits only to the following types of projects:
179.25 	(1) in the metropolitan area:
179.26 	(i) new construction or substantial rehabilitation of projects in which, for the term of the 
179.27 	extended use period, at least 75 percent of the total tax credit units are single-room 
179.28 	occupancy, efficiency, or one bedroom units and which are affordable by households whose 
179.29 	income does not exceed 30 percent of the median income;
179.30 	(ii) new construction or substantial rehabilitation family housing projects that are not 
179.31 	restricted to persons who are 55 years of age or older and in which, for the term of the 
179.32 	extended use period, at least 75 percent of the tax credit units contain two or more bedrooms 
179.33 	and at least one-third of the 75 percent contain three or more bedrooms; or
180.1 	(iii) substantial rehabilitation projects in neighborhoods targeted by the city for 
180.2 	revitalization;
180.3 	(2) outside the metropolitan area, projects which meet a locally identified housing need 
180.4 	and which are in short supply in the local housing market as evidenced by credible data 
180.5 	submitted with the application;
180.6 	(3) projects that are not restricted to persons of a particular age group and in which, for 
180.7 	the term of the extended use period, a percentage of the units are set aside and rented to 
180.8 	persons:
180.9 	(i) with a serious and persistent mental illness as defined in section 245.462, subdivision 
180.10 	20, paragraph (c);
180.11 	(ii) with a developmental disability as defined in United States Code, title 42, section 
180.12 	6001, paragraph (5), as amended through December 31, 1990;
180.13 	(iii) who have been assessed as drug dependent persons as defined in section 254A.02, 
180.14 	subdivision 5, and are receiving or will receive care and treatment services provided by an 
180.15 	approved treatment program as defined in section 254A.02, subdivision 2;
180.16 	(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or
180.17 	(v) with permanent physical disabilities that substantially limit one or more major life 
180.18 	activities, if at least 50 percent of the units in the project are accessible as provided under 
180.19 	Minnesota Rules, chapter 1340;
180.20 	(4) projects, whether or not restricted to persons of a particular age group, which preserve 
180.21 	existing subsidized housing, if the use of tax credits is necessary to prevent conversion to 
180.22 	market rate use or to remedy physical deterioration of the project which would result in loss 
180.23 	of existing federal subsidies; or
180.24 	(5) projects financed by the Farmers Home Administration, or its successor agency, 
180.25 	which meet statewide distribution goals.
180.26 	(e) Before the date for applications for the final round, the allocating agencies other than 
180.27 	the agency shall return all uncommitted and unallocated tax credits to a unified pool for 
180.28 	allocation by the agency on a statewide basis.
180.29 	(f) Unused portions of the state ceiling for low-income housing tax credits reserved to 
180.30 	cities and counties for allocation may be returned at any time to the agency for allocation.
180.31 	(g) If an allocating agency determines, at any time after the initial commitment or 
180.32 	allocation for a specific project, that a project is no longer eligible for all or a portion of the 
181.1 	low-income housing tax credits committed or allocated to the project, the credits must be 
181.2 	transferred to the agency to be reallocated pursuant to the procedures established in 
181.3 	paragraphs (e) to (g); provided that if the tax credits for which the project is no longer 
181.4 	eligible are from the current year's annual ceiling and the allocating agency maintains a 
181.5 	waiting list, the allocating agency may continue to commit or allocate the credits until not 
181.6 	later than the date of applications for the final round, at which time any uncommitted credits 
181.7 	must be transferred to the agency.

181.8 	Sec. 13. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
181.9 	to read:
181.10 		Subd. 1a.Aggregate bond limitation. "Aggregate bond limitation" means up to 55 
181.11 	percent of the reasonably expected aggregate basis of a residential rental project and the 
181.12 	land on which the project is or will be located.

181.13 	Sec. 14. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
181.14 	to read:
181.15 		Subd. 1b.AMI. "AMI" means the area median income for the applicable county or 
181.16 	metropolitan area as published by the Department of Housing and Urban Development, as 
181.17 	adjusted for household size.

181.18 	Sec. 15. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
181.19 	to read:
181.20 		Subd. 12a.LIHTC. "LIHTC" means low-income housing tax credits under section 42 
181.21 	of the Internal Revenue Code of 1986, as amended.

181.22 	Sec. 16. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
181.23 	to read:
181.24 		Subd. 21a.Preservation project. "Preservation project" means any residential rental 
181.25 	project, regardless of whether or not such project is restricted to persons of a certain age or 
181.26 	older, that receives federal project-based rental subsidies. In addition, to qualify as a 
181.27 	preservation project, the amount of bonds requested in the application must not exceed the 
181.28 	aggregate bond limitation.

182.1 	Sec. 17. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
182.2 	to read:
182.3 		Subd. 30.30 percent AMI residential rental project. "30 percent AMI residential 
182.4 	rental project" means a residential rental project that does not otherwise qualify as a 
182.5 	preservation project, is expected to generate low-income housing tax credits under section 
182.6 	42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential 
182.7 	units, and in which:
182.8 	(1) all the residential units of the project:
182.9 	(i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
182.10 	(ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
182.11 	of 1986, as amended; and
182.12 	(iii) are subject to rent and income restrictions for a period of not less than 30 years; or
182.13 	(2)(i) is located within a county or metropolitan area that has a current median area gross 
182.14 	income that is less than the statewide area median income for Minnesota;
182.15 	(ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2) 
182.16 	of the Internal Revenue Code of 1986, as amended; and
182.17 	(iii) all of the units of the project are subject to the applicable rent and income restrictions 
182.18 	for a period of not less than 30 years.
182.19 	In addition, to qualify as a 30 percent AMI residential project, the amount of bonds 
182.20 	requested in the application must not exceed the aggregate bond limitation.

182.21 	Sec. 18. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
182.22 	to read:
182.23 		Subd. 31.50 percent AMI residential rental project. "50 percent AMI residential 
182.24 	rental project," means a residential rental project that does not qualify as a preservation 
182.25 	project or 30 percent AMI residential rental project, is expected to generate low-income 
182.26 	housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended, 
182.27 	from 100 percent of its residential units, and in which all the residential units of the project:
182.28 	(1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
182.29 	(2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
182.30 	of 1986, as amended; and
182.31 	(3) are subject to rent and income restrictions for a period of not less than 30 years.
183.1 	In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds 
183.2 	requested in the application must not exceed the aggregate bond limitation.

183.3 	Sec. 19. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
183.4 	to read:
183.5 		Subd. 32.100 percent LIHTC project. "100 percent LIHTC project" means a residential 
183.6 	rental project that is expected to generate low-income housing tax credits under section 42 
183.7 	of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units 
183.8 	and does not otherwise qualify as a preservation project, 30 percent AMI residential rental 
183.9 	project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent 
183.10 	LIHTC project, the amount of bonds requested in the application must not exceed the 
183.11 	aggregate bond limitation.

183.12 	Sec. 20. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
183.13 	to read:
183.14 		Subd. 33.20 percent LIHTC project. "20 percent LIHTC project" means a residential 
183.15 	rental project that is expected to generate low-income housing tax credits under section 42 
183.16 	of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential 
183.17 	units and does not otherwise qualify as a preservation project, 30 percent AMI residential 
183.18 	rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In 
183.19 	addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the 
183.20 	application must not exceed the aggregate bond limitation.

183.21 	Sec. 21. Minnesota Statutes 2016, section 474A.03, subdivision 1, is amended to read:
183.22 		Subdivision 1.Under federal tax law; allocations. At the beginning of each calendar 
183.23 	year after December 31, 2001, the commissioner shall determine the aggregate dollar amount 
183.24 	of the annual volume cap under federal tax law for the calendar year, and of this amount 
183.25 	the commissioner shall make the following allocation:
183.26 	(1) $74,530,000 to the small issue pool;
183.27 	(2) $122,060,000 to the housing pool, of which 31 percent of the adjusted allocation is 
183.28 	reserved until the last Monday in July for single-family housing programs;
183.29 	(3) $12,750,000 to the public facilities pool; and
183.30 	(4) amounts to be allocated as provided in subdivision 2a.
184.1 	If the annual volume cap is greater or less than the amount of bonding authority allocated 
184.2 	under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation 
184.3 	must be adjusted so that each adjusted allocation is the same percentage of the annual volume 
184.4 	cap as each original allocation is of the total bonding authority originally allocated.

184.5 	EFFECTIVE DATE. This section is effective the day following final enactment and 
184.6 	expires January 1, 2021.

184.7 	Sec. 22. Minnesota Statutes 2016, section 474A.04, subdivision 1a, is amended to read:
184.8 		Subd. 1a.Entitlement reservations. Any amount returned by an entitlement issuer 
184.9 	before July June 15 shall be reallocated through the housing pool. Any amount returned on 
184.10 	or after July 15 1 shall be reallocated through the unified pool. An amount returned after 
184.11 	the last Monday in November shall be reallocated to the Minnesota Housing Finance Agency.

184.12 	Sec. 23. Minnesota Statutes 2016, section 474A.047, subdivision 1, is amended to read:
184.13 		Subdivision 1.Eligibility. (a) An issuer may only use the proceeds from residential 
184.14 	rental bonds if the proposed project meets the following requirements:
184.15 	(1) the proposed residential rental project meets the requirements of section 142(d) of 
184.16 	the Internal Revenue Code regarding the incomes of the occupants of the housing; and
184.17 	(2) the maximum rent for at least 20 percent of the units in the proposed residential rental 
184.18 	project do not exceed the area fair market rent or exception fair market rents for existing 
184.19 	housing, if applicable, as established by the federal Department of Housing and Urban 
184.20 	Development. The rental rates of units in a residential rental project for which project-based 
184.21 	federal assistance payments are made are deemed to be within the rent limitations of this 
184.22 	clause.
184.23 	(b) The proceeds from residential rental bonds may be used for a project for which 
184.24 	project-based federal rental assistance payments are made only if: the owner of the project 
184.25 	enters into a binding agreement with the issuer under which the owner is obligated to extend 
184.26 	any existing low-income affordability restrictions and any contract or agreement for rental 
184.27 	assistance payments for the maximum term permitted, including any renewals thereof.
184.28 	(1) the owner of the project enters into a binding agreement with the Minnesota Housing 
184.29 	Finance Agency under which the owner is obligated to extend any existing low-income 
184.30 	affordability restrictions and any contract or agreement for rental assistance payments for 
184.31 	the maximum term permitted, including any renewals thereof; and
185.1 	(2) the Minnesota Housing Finance Agency certifies that project reserves will be 
185.2 	maintained at closing of the bond issue and budgeted in future years at the lesser of:
185.3 	(i) the level described in Minnesota Rules, part 4900.0010, subpart 7, item A, subitem 
185.4 	(2), effective May 1, 1997; or
185.5 	(ii) the level of project reserves available prior to the bond issue, provided that additional 
185.6 	money is available to accomplish repairs and replacements needed at the time of bond issue.

185.7 	Sec. 24. Minnesota Statutes 2016, section 474A.047, subdivision 2, is amended to read:
185.8 		Subd. 2.15-year agreement. Prior to the issuance of residential rental bonds, the 
185.9 	developer of the project for which the bond proceeds will be used must enter into a 15-year 
185.10 	agreement with the issuer that specifies the maximum rental rates of the rent-restricted units 
185.11 	in the project and the income levels of the residents of the project occupying income-restricted 
185.12 	units.and in which the developer will agree to maintain the project as a preservation project, 
185.13 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
185.14 	percent LIHTC project, or 20 percent LIHTC project, as applicable and as described in its 
185.15 	application. Such rental rates and income levels must be within the limitations established 
185.16 	under subdivision 1. The developer must annually certify to the issuer over the term of the 
185.17 	agreement that the rental rates for the rent-restricted units are within the limitations under 
185.18 	subdivision 1. The issuer may request individual certification of the income of residents of 
185.19 	the income-restricted units. The commissioner may request from the issuer a copy of the 
185.20 	annual certification prepared by the developer. The commissioner may require the issuer 
185.21 	to request individual certification of all residents of the income-restricted units.

185.22 	Sec. 25. Minnesota Statutes 2016, section 474A.061, is amended to read:
185.23 	474A.061 MANUFACTURING, HOUSING, AND PUBLIC FACILITIES POOLS.
185.24 		Subdivision 1.Allocation application; small issue pool and public facilities pool. (a) 
185.25 	For any requested allocations from the small issue pool and the public facilities pool, an 
185.26 	issuer may apply for an allocation under this section by submitting to the department an 
185.27 	application on forms provided by the department, accompanied by (1) a preliminary 
185.28 	resolution, (2) a statement of bond counsel that the proposed issue of obligations requires 
185.29 	an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified 
185.30 	bonds to be issued, (4) an application deposit in the amount of one percent of the requested 
185.31 	allocation before the last Monday in July June, or in the amount of two percent of the 
185.32 	requested allocation on or after the last Monday in July, June, and (5) a public purpose 
185.33 	scoring worksheet for manufacturing project and enterprise zone facility project applications, 
186.1 	and (6) for residential rental projects, a statement from the applicant or bond counsel as to 
186.2 	whether the project preserves existing federally subsidized housing for residential rental 
186.3 	project applications and whether the project is restricted to persons who are 55 years of age 
186.4 	or older. The issuer must pay the application deposit by a check or wire transfer made 
186.5 	payable to the Department of Management and Budget. The Minnesota Housing Finance 
186.6 	Agency, the Minnesota Rural Finance Authority, and the Minnesota Office of Higher 
186.7 	Education may apply for and receive an allocation under this section without submitting an 
186.8 	application deposit.
186.9 	(b) An entitlement issuer may not apply for an allocation from the public facilities pool
186.10 	under this subdivision unless it has either permanently issued bonds equal to the amount of 
186.11 	its entitlement allocation for the current year plus any amount of bonding authority carried 
186.12 	forward from previous years or returned for reallocation all of its unused entitlement 
186.13 	allocation. An entitlement issuer may not apply for an allocation from the housing pool 
186.14 	unless it either has permanently issued bonds equal to any amount of bonding authority 
186.15 	carried forward from a previous year or has returned for reallocation any unused bonding 
186.16 	authority carried forward from a previous year. For purposes of this subdivision, its 
186.17 	entitlement allocation includes an amount obtained under section 474A.04, subdivision 6. 
186.18 	This paragraph does not apply to an application from the Minnesota Housing Finance Agency 
186.19 	for an allocation under subdivision 2a for cities who choose to have the agency issue bonds 
186.20 	on their behalf.
186.21 	(c) If an application is rejected under this section, the commissioner must notify the 
186.22 	applicant and return the application deposit to the applicant within 30 days unless the 
186.23 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
186.24 	of bonding authority under this section must be evidenced by a certificate of allocation.
186.25 		Subd. 1a.Allocation application; housing pool. (a) For any requested allocations from 
186.26 	the housing pool, an issuer may apply for an allocation under this section by submitting to 
186.27 	the department an application on forms provided by the department, accompanied by (1) a 
186.28 	preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations 
186.29 	requires an allocation under this chapter and the Internal Revenue Code, (3) an application 
186.30 	deposit in the amount of two percent of the requested allocation, (4) a sworn statement from 
186.31 	the applicant identifying the project as either a preservation project, 30 percent AMI 
186.32 	residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC 
186.33 	project, 20 percent LIHTC project, or any other residential rental project, and (5) a 
186.34 	certification from the applicant or its accountant stating whether the requested allocation 
186.35 	exceeds the aggregate bond limitation. The issuer must pay the application deposit by a 
187.1 	check made payable to the Department of Management and Budget or wire transfer. The 
187.2 	Minnesota Housing Finance Agency may apply for and receive an allocation under this 
187.3 	section without submitting an application deposit.
187.4 	(b) An entitlement issuer may not apply for an allocation from the housing pool unless 
187.5 	it either has permanently issued bonds equal to any amount of bonding authority carried 
187.6 	forward from a previous year or has returned for reallocation any unused bonding authority 
187.7 	carried forward from a previous year. For purposes of this subdivision, its entitlement 
187.8 	allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph 
187.9 	does not apply to an application from the Minnesota Housing Finance Agency for an 
187.10 	allocation under subdivision 2a for cities who choose to have the agency issue bonds on the 
187.11 	city's behalf.
187.12 	(c) If an application is rejected under this section, the commissioner must notify the 
187.13 	applicant and return the application deposit to the applicant within 30 days unless the 
187.14 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
187.15 	of bonding authority under this section must be evidenced by a certificate of allocation.
187.16 		Subd. 2a.Housing pool allocation. (a) Commencing on the second Tuesday in January 
187.17 	and continuing on each Monday through July June 15, the commissioner shall allocate 
187.18 	available bonding authority from the housing pool to applications received on or before the 
187.19 	Monday of the preceding week for residential rental projects that meet the eligibility criteria 
187.20 	under section 474A.047. Allocations of available bonding authority from the housing pool 
187.21 	for eligible residential rental projects shall be awarded in the following order of priority: 
187.22 	(1) projects that preserve existing federally subsidized housing; (2) projects that are not 
187.23 	restricted to persons who are 55 years of age or older; and (3) other residential rental projects. 
187.24 	Prior to May 15, no allocation shall be made to a project restricted to persons who are 55 
187.25 	years of age or older.
187.26 	(1) preservation projects;
187.27 	(2) 30 percent AMI residential rental projects;
187.28 	(3) 50 percent AMI residential rental projects;
187.29 	(4) 100 percent LIHTC projects;
187.30 	(5) 20 percent LIHTC projects;
187.31 	(6) after June 1 in calendar years 2018, 2019, and 2020, and after January 1 starting in 
187.32 	calendar year 2021, single family housing programs; and
188.1 	(7) other residential rental projects for which the amount of bonds requested in their 
188.2 	respective applications do not exceed the aggregate bond limitation.
188.3 	If there are two or more applications for residential rental projects at the same priority level 
188.4 	and there is insufficient bonding authority to provide allocations for all such projects in any 
188.5 	one allocation period, available bonding authority shall be randomly awarded by lot. If a 
188.6 	residential rental project is selected by lot, but the remaining allocation is insufficient to 
188.7 	receive the full amount of its requested allocation, the remaining bonding authority shall 
188.8 	be reserved by the commissioner, or by the Minnesota Housing Finance Agency if such 
188.9 	authority is carried forward pursuant to section 474A.131, for the project for up to 24 months 
188.10 	thereafter, and if the project applies in the future to the housing pool or unified pool for 
188.11 	additional allocation of bonds, the project shall be fully funded up to the remaining amount 
188.12 	of its original application request for bonding authority before any new project applying in 
188.13 	the same allocation period that has an equal priority shall receive bonding authority. Within 
188.14 	180 days of receiving an allocation under this paragraph, an issuer must either begin issuing 
188.15 	obligations or submit an additional application deposit equal to one percent of the allocation 
188.16 	amount; if an additional deposit is submitted, the issuer must begin issuing obligations 
188.17 	within 18 months of receiving an allocation. If an issuer that receives an allocation under 
188.18 	this paragraph does not issue obligations equal to all or a portion of the allocation received 
188.19 	within 120 days of the allocation the relevant time period in this paragraph or returns the 
188.20 	allocation to the commissioner, the amount of the allocation is canceled and returned for 
188.21 	reallocation through the housing pool or to the unified pool after July 15. 1. If an issuer that 
188.22 	receives an allocation under this paragraph issues obligations within the relevant time period 
188.23 	in this paragraph, the commissioner shall refund 50 percent of any application deposit 
188.24 	previously paid within 30 days of the issuance of the obligations and the remaining 50 
188.25 	percent of the application deposit will be refunded (i) within 30 days after the date on which 
188.26 	the Internal Revenue Service Forms 8609 are issued with respect to projects generating 
188.27 	low-income housing tax credits, or (ii) within 90 days after the issuer provides a certification 
188.28 	and any other reasonable documentation requested by the commissioner evidencing that 
188.29 	construction of the project has been completed.
188.30 	(b) After January 1, and through January 15, The Minnesota Housing Finance Agency 
188.31 	may accept applications, according to the schedule in paragraph (c), from cities for 
188.32 	single-family housing programs which meet program requirements as follows:
188.33 	(1) the housing program must meet a locally identified housing need and be economically 
188.34 	viable;
189.1 	(2) the adjusted income of home buyers may not exceed 80 percent of the greater of 
189.2 	statewide or area median income as published by the Department of Housing and Urban 
189.3 	Development, adjusted for household size AMI;
189.4 	(3) house price limits may not exceed the federal price limits established for mortgage 
189.5 	revenue bond programs. Data on the home purchase price amount, mortgage amount, income, 
189.6 	household size, and race of the households served in the previous year's single-family 
189.7 	housing program, if any, must be included in each application; and
189.8 	(4) for applicants who choose to have the agency issue bonds on their behalf, an 
189.9 	application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal 
189.10 	to one percent of the requested allocation must be submitted to the Minnesota Housing 
189.11 	Finance Agency before the agency forwards the list specifying the amounts allocated to the 
189.12 	commissioner under paragraph (d) (e). The agency shall submit the city's application fee 
189.13 	and application deposit to the commissioner when requesting an allocation from the housing 
189.14 	pool.
189.15 	Applications by a consortium shall include the name of each member of the consortium 
189.16 	and the amount of allocation requested by each member.
189.17 	(c) The Minnesota Housing Finance Agency may accept applications under paragraph 
189.18 	(b) after June 1 in calendar years 2018, 2019, and 2020, and after January 1 and through 
189.19 	January 15 starting in calendar year 2021.
189.20 	(c) Any amounts remaining in the housing pool after July 15 are available for 
189.21 	single-family housing programs for cities that applied in January and received an allocation 
189.22 	under this section in the same calendar year. (d) For a city that chooses to issue bonds on 
189.23 	its own behalf or pursuant to a joint powers agreement, the agency must allot available 
189.24 	bonding authority based on the formula in paragraphs (d) (e) and (f) (g). Allocations will 
189.25 	be made loan by loan, on a first-come, first-served basis among cities on whose behalf the 
189.26 	Minnesota Housing Finance Agency issues bonds.
189.27 	Any city that received an allocation pursuant to paragraph (f) (g) in the same calendar 
189.28 	year that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement 
189.29 	for an amount becoming available for single-family housing programs after July 15 June 1
189.30 	shall notify the Minnesota Housing Finance Agency by July 15 June 1. The Minnesota 
189.31 	Housing Finance Agency shall notify each city making a request of the amount of its 
189.32 	allocation within three business days after July 15 June 1. The city must comply with 
189.33 	paragraph (f) (g).
190.1 	For purposes of paragraphs (a) to (h) this subdivision, "city" means a county or a 
190.2 	consortium of local government units that agree through a joint powers agreement to apply 
190.3 	together for single-family housing programs, and has the meaning given it in section 462C.02, 
190.4 	subdivision 6. "Agency" means the Minnesota Housing Finance Agency.
190.5 	(d) (e) The total amount of allocation for mortgage bonds for one city is limited to the 
190.6 	lesser of: (i) the amount requested, or (ii) the product of the total amount available for 
190.7 	mortgage bonds from the housing pool, multiplied by the ratio of each applicant's population 
190.8 	as determined by the most recent estimate of the city's population released by the state 
190.9 	demographer's office to the total of all the applicants' population, except that each applicant 
190.10 	shall be allocated a minimum of $100,000 regardless of the amount requested or the amount 
190.11 	determined under the formula in clause (ii). If a city applying for an allocation is located 
190.12 	within a county that has also applied for an allocation, the city's population will be deducted 
190.13 	from the county's population in calculating the amount of allocations under this paragraph.
190.14 	Upon determining the amount of each applicant's allocation, the agency shall forward 
190.15 	to the commissioner a list specifying the amounts allotted to each application with all 
190.16 	application fees and deposits from applicants who choose to have the agency issue bonds 
190.17 	on their behalf.
190.18 	Total allocations from the housing pool for single-family housing programs may not 
190.19 	exceed 31 percent of the adjusted allocation to the housing pool until after July 15.
190.20 	(e) (f) The agency may issue bonds on behalf of participating cities. The agency shall 
190.21 	request an allocation from the commissioner for all applicants who choose to have the 
190.22 	agency issue bonds on their behalf and the commissioner shall allocate the requested amount 
190.23 	to the agency. The agency may request an allocation at any time after the second Tuesday 
190.24 	in January and through the last Monday in July June 1. After awarding an allocation and 
190.25 	receiving a notice of issuance for the mortgage bonds issued on behalf of the participating 
190.26 	cities, the commissioner shall transfer the application deposits to the Minnesota Housing 
190.27 	Finance Agency to be returned to the participating cities. The Minnesota Housing Finance 
190.28 	Agency shall return any application deposit to a city that paid an application deposit under 
190.29 	paragraph (b), clause (4), but was not part of the list forwarded to the commissioner under 
190.30 	paragraph (d) (e).
190.31 	(f) (g) A city may choose to issue bonds on its own behalf or through a joint powers 
190.32 	agreement and may request an allocation from the commissioner by forwarding an application 
190.33 	with an application fee pursuant to section 474A.03, subdivision 4, and a one percent 
190.34 	application deposit to the commissioner no later than the Monday of the week preceding 
191.1 	an allocation. If the total amount requested by all applicants exceeds the amount available 
191.2 	in the pool, the city may not receive a greater allocation than the amount it would have 
191.3 	received under the list forwarded by the Minnesota Housing Finance Agency to the 
191.4 	commissioner. No city may request or receive an allocation from the commissioner until 
191.5 	the list under paragraph (d) (e) has been forwarded to the commissioner. A city must request 
191.6 	an allocation from the commissioner no later than the last Monday in July June. No city 
191.7 	may receive an allocation from the housing pool for mortgage bonds which has not first 
191.8 	applied to the Minnesota Housing Finance Agency. The commissioner shall allocate the 
191.9 	requested amount to the city or cities subject to the limitations under this paragraph.
191.10 	If a city issues mortgage bonds from an allocation received under this paragraph, the 
191.11 	issuer must provide for the recycling of funds into new loans. If the issuer is not able to 
191.12 	provide for recycling, the issuer must notify the commissioner in writing of the reason that 
191.13 	recycling was not possible and the reason the issuer elected not to have the Minnesota 
191.14 	Housing Finance Agency issue the bonds. "Recycling" means the use of money generated 
191.15 	from the repayment and prepayment of loans for further eligible loans or for the redemption 
191.16 	of bonds and the issuance of current refunding bonds.
191.17 	(g) (h) No entitlement city or county or city in an entitlement county may apply for or 
191.18 	be allocated authority to issue mortgage bonds or use mortgage credit certificates from the 
191.19 	housing pool. No city in an entitlement county may apply for or be allocated authority to 
191.20 	issue residential rental bonds from the housing pool or the unified pool.
191.21 	(h) (i) A city that does not use at least 50 percent of its allotment by the date applications 
191.22 	are due for the first allocation that is made from the housing pool for single-family housing 
191.23 	programs in the immediately succeeding calendar year may not apply to the housing pool 
191.24 	for a single-family mortgage bond or mortgage credit certificate program allocation that 
191.25 	exceeds the amount of its allotment for the preceding year that was used by the city in the 
191.26 	immediately preceding year or receive an allotment from the housing pool in the succeeding 
191.27 	calendar year that exceeds the amount of its allotment for the preceding year that was used 
191.28 	in the preceding year. The minimum allotment is $100,000 for an allocation made prior to 
191.29 	July 15 1, regardless of the amount used in the preceding calendar year, except that a city 
191.30 	whose allocation in the preceding year was the minimum amount of $100,000 and who did 
191.31 	not use at least 50 percent of its allocation from the preceding year is ineligible for an 
191.32 	allocation in the immediate succeeding calendar year. Each local government unit in a 
191.33 	consortium must meet the requirements of this paragraph.
191.34 		Subd. 2b.Small issue pool allocation. Commencing on the second Tuesday in January 
191.35 	and continuing on each Monday through the last Monday in July June, the commissioner 
192.1 	shall allocate available bonding authority from the small issue pool to applications received 
192.2 	on or before the Monday of the preceding week for manufacturing projects and enterprise 
192.3 	zone facility projects. From the second Tuesday in January through the last Monday in July
192.4 	June, the commissioner shall reserve $5,000,000 of the available bonding authority from 
192.5 	the small issue pool for applications for agricultural development bond loan projects of the 
192.6 	Minnesota Rural Finance Authority.
192.7 	Beginning in calendar year 2002, on the second Tuesday in January through the last 
192.8 	Monday in July June, the commissioner shall reserve $10,000,000 of available bonding 
192.9 	authority in the small issue pool for applications for student loan bonds of or on behalf of 
192.10 	the Minnesota Office of Higher Education. The total amount of allocations for student loan 
192.11 	bonds from the small issue pool may not exceed $10,000,000 per year.
192.12 	The commissioner shall reserve $10,000,000 until the day after the last Monday in 
192.13 	February, $10,000,000 until the day after the last Monday in April, and $10,000,000 until 
192.14 	the day after the last Monday in June in the small issue pool for enterprise zone facility 
192.15 	projects and manufacturing projects. The amount of allocation provided to an issuer for a 
192.16 	specific enterprise zone facility project or manufacturing project will be based on the number 
192.17 	of points received for the proposed project under the scoring system under section 474A.045.
192.18 	If there are two or more applications for manufacturing and enterprise zone facility 
192.19 	projects from the small issue pool and there is insufficient bonding authority to provide 
192.20 	allocations for all projects in any one week, the available bonding authority shall be awarded 
192.21 	based on the number of points awarded a project under section 474A.045, with those projects 
192.22 	receiving the greatest number of points receiving allocation first. If two or more applications 
192.23 	receive an equal number of points, available bonding authority shall be awarded by lot 
192.24 	unless otherwise agreed to by the respective issuers.
192.25 		Subd. 2c.Public facilities pool allocation. From the beginning of the calendar year and 
192.26 	continuing for a period of 120 days, the commissioner shall reserve $5,000,000 of the 
192.27 	available bonding authority from the public facilities pool for applications for public facilities 
192.28 	projects to be financed by the Western Lake Superior Sanitary District. Commencing on 
192.29 	the second Tuesday in January and continuing on each Monday through the last Monday 
192.30 	in July June, the commissioner shall allocate available bonding authority from the public 
192.31 	facilities pool to applications for eligible public facilities projects received on or before the 
192.32 	Monday of the preceding week. If there are two or more applications for public facilities 
192.33 	projects from the pool and there is insufficient available bonding authority to provide 
192.34 	allocations for all projects in any one week, the available bonding authority shall be awarded 
192.35 	by lot unless otherwise agreed to by the respective issuers.
193.1 		Subd. 4.Return of allocation; deposit refund for small issue pool or public facilities 
193.2 	pool. (a) For any requested allocation from the small issue pool or the public facilities pool, 
193.3 	if an issuer that receives an allocation under this section determines that it will not issue 
193.4 	obligations equal to all or a portion of the allocation received under this section within 120 
193.5 	days of allocation or within the time period permitted by federal tax law, whichever is less, 
193.6 	the issuer must notify the department. If the issuer notifies the department or the 120-day 
193.7 	period since allocation has expired prior to the last Monday in July June, the amount of 
193.8 	allocation is canceled and returned for reallocation through the pool from which it was 
193.9 	originally allocated. If the issuer notifies the department or the 120-day period since allocation 
193.10 	has expired on or after the last Monday in July June, the amount of allocation is canceled 
193.11 	and returned for reallocation through the unified pool. If the issuer notifies the department 
193.12 	after the last Monday in November, the amount of allocation is canceled and returned for 
193.13 	reallocation to the Minnesota Housing Finance Agency. To encourage a competitive 
193.14 	application process, the commissioner shall reserve, for new applications, the amount of 
193.15 	allocation that is canceled and returned for reallocation under this section for a minimum 
193.16 	of seven calendar days.
193.17 	(b) An issuer that returns for reallocation all or a portion of an allocation received under 
193.18 	this section subdivision within 120 days of allocation shall receive within 30 days a refund 
193.19 	equal to:
193.20 	(1) one-half of the application deposit for the amount of bonding authority returned 
193.21 	within 30 days of receiving allocation;
193.22 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
193.23 	between 31 and 60 days of receiving allocation; and
193.24 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
193.25 	between 61 and 120 days of receiving allocation.
193.26 	(c) No refund shall be available for allocations returned 120 or more days after receiving 
193.27 	the allocation or beyond the last Monday in November.
193.28 		Subd. 4a.Return of allocation; deposit refund for housing pool. (a) For any requested 
193.29 	allocations from the housing pool, if an issuer that receives an allocation under this section 
193.30 	determines that it will not issue obligations equal to all or a portion of the allocation received 
193.31 	under this section within the time period provided under section 474A.061, subdivision 2a, 
193.32 	paragraph (a), or within the time period permitted by federal tax law, whichever is less, the 
193.33 	issuer must notify the department. If the issuer notifies the department or the time period 
193.34 	provided under section 474A.061, subdivision 2a, paragraph (a), has expired prior to the 
194.1 	last Monday in June, the amount of allocation is canceled and returned for reallocation 
194.2 	through the pool from which it was originally allocated. If the issuer notifies the department 
194.3 	or the time period provided under section 474A.061, subdivision 2a, paragraph (a), has 
194.4 	expired on or after the last Monday in June, the amount of the allocation is canceled and 
194.5 	returned for reallocation through the unified pool. If the issuer notifies the department after 
194.6 	the last Monday in November, the amount of allocation is canceled and returned for 
194.7 	reallocation to the Minnesota Housing Finance Agency. To encourage a competitive 
194.8 	application process, the commissioner shall reserve, for new applications, the amount of 
194.9 	allocation that is canceled and returned for reallocation under this section for a minimum 
194.10 	of seven calendar days.
194.11 	(b) An issuer that returns for reallocation all or a portion of an allocation received under 
194.12 	this subdivision within 180 days of allocation shall receive within 30 days a refund equal 
194.13 	to:
194.14 	(1) one-half of the application deposit for the amount of bonding authority returned 
194.15 	within 45 days of receiving allocation;
194.16 	(2) one-fourth of the allocation deposit for the amount of bonding authority returned 
194.17 	between 46 and 90 days of receiving allocation; and
194.18 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
194.19 	between 91 and 180 days of receiving allocation.
194.20 	(c) No refund shall be available for allocations returned 180 or more days after receiving 
194.21 	the allocation or beyond the last Monday in November.

194.22 	Sec. 26. Minnesota Statutes 2016, section 474A.062, is amended to read:
194.23 	474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY ISSUANCE 
194.24 	EXEMPTION.
194.25 	The Minnesota Office of Higher Education is exempt from the 120-day issuance 
194.26 	requirements any time limitation on issuance of bonds set forth in this chapter and may 
194.27 	carry forward allocations for student loan bonds, subject to carryforward notice requirements 
194.28 	of section 474A.131, subdivision 2.

194.29 	Sec. 27. Minnesota Statutes 2016, section 474A.091, is amended to read:
194.30 	474A.091 ALLOCATION OF UNIFIED POOL.
195.1 		Subdivision 1.Unified pool amount. On the day after the last Monday in July June any 
195.2 	bonding authority remaining unallocated from the small issue pool, the housing pool, and 
195.3 	the public facilities pool is transferred to the unified pool and must be reallocated as provided 
195.4 	in this section.
195.5 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
195.6 	allocation for residential rental bonds under this section by submitting to the department an 
195.7 	application on forms provided by the department accompanied by:
195.8 	(1) a preliminary resolution,;
195.9 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
195.10 	allocation under this chapter and the Internal Revenue Code,;
195.11 	(3) the type of qualified bonds to be issued, (4) an application deposit in the amount of 
195.12 	two percent of the requested allocation;,(5) a public purpose scoring worksheet for 
195.13 	manufacturing and enterprise zone applications, and (6) for residential rental projects, a 
195.14 	statement from the applicant or bond counsel as to whether the project preserves existing 
195.15 	federally subsidized housing and whether the project is restricted to persons who are 55 
195.16 	years of age or older.
195.17 	(4) a sworn statement from the applicant identifying the project as either a preservation 
195.18 	project, 30 percent AMI residential rental project, 50 percent AMI residential rental project, 
195.19 	100 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
195.20 	and
195.21 	(5) a certification from the applicant or its accountant stating whether the requested 
195.22 	allocation exceeds the aggregate bond limitation. Applications for projects requesting bonds 
195.23 	in excess of the aggregate bond limitation may not apply or be allocated bonding authority 
195.24 	until after September 1 each year.
195.25 	The issuer must pay the application deposit by check. An entitlement issuer may not apply 
195.26 	for an allocation for public facility bonds, residential rental project bonds, or mortgage 
195.27 	bonds under this section unless it has either permanently issued bonds equal to the amount 
195.28 	of its entitlement allocation for the current year plus any amount carried forward from 
195.29 	previous years or returned for reallocation all of its unused entitlement allocation. For 
195.30 	purposes of this subdivision, its entitlement allocation includes an amount obtained under 
195.31 	section 474A.04, subdivision 6.
195.32 	(b) Within 180 days of receiving an allocation under this subdivision, an issuer must 
195.33 	either begin issuing obligations or submit an additional application deposit equal to one 
196.1 	percent of the allocation amount; if an additional deposit is submitted, the issuer must begin 
196.2 	issuing obligations within 18 months of receiving an allocation. If an issuer that receives 
196.3 	an allocation under this subdivision does not issue obligations equal to all or a portion of 
196.4 	the allocation received within the 180-day time period provided in this paragraph or returns 
196.5 	the allocation to the commissioner, the amount of the allocation is canceled and returned 
196.6 	for reallocation through the unified pool. If an issuer that receives an allocation under this 
196.7 	subdivision issues obligations within the 180-day time period provided in this paragraph, 
196.8 	the commissioner shall refund 50 percent of any application deposit previously paid within 
196.9 	30 days of the issuance of the obligations and the remaining 50 percent of such application 
196.10 	deposit will be refunded (1) within 30 days after the date on which Internal Revenue Service 
196.11 	Forms 8609 are issued with respect to projects generating low-income housing tax credits, 
196.12 	or (2) within 90 days after the issuer provides a certification and any other reasonable 
196.13 	documentation requested by the commissioner evidencing that construction of the project 
196.14 	has been completed.
196.15 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
196.16 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
196.17 	under this section prior to the first Monday in October, but may be awarded allocations for 
196.18 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
196.19 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
196.20 	Rural Finance Authority may apply for and receive an allocation under this section without 
196.21 	submitting an application deposit.
196.22 		Subd. 2a.Application for all other types of qualified bonds. Issuers may apply for an 
196.23 	allocation for all types of qualified bonds other than residential rental bonds under this 
196.24 	section by submitting to the department an application on forms provided by the department 
196.25 	accompanied by (1) a preliminary resolution, (2) a statement of bond counsel that the 
196.26 	proposed issue of obligations requires an allocation under this chapter and the Internal 
196.27 	Revenue Code, (3) the type of qualified bonds to be issued, (4) an application deposit in 
196.28 	the amount of two percent of the requested allocation, and (5) a public purpose scoring 
196.29 	worksheet for manufacturing and enterprise zone applications. The issuer must pay the 
196.30 	application deposit by check. An entitlement issuer may not apply for an allocation for 
196.31 	public facility bonds or mortgage bonds under this section unless it has either permanently 
196.32 	issued bonds equal to the amount of its entitlement allocation for the current year plus any 
196.33 	amount carried forward from previous years or returned for reallocation all of its unused 
196.34 	entitlement allocation. For purposes of this subdivision, its entitlement allocation includes 
196.35 	an amount obtained under section 474A.04, subdivision 6.
197.1 	Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
197.2 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
197.3 	under this section prior to the first Monday in October, but may be awarded allocations for 
197.4 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
197.5 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
197.6 	Rural Finance Authority may apply for and receive an allocation under this section without 
197.7 	submitting an application deposit.
197.8 		Subd. 3.Allocation procedure. (a) The commissioner shall allocate available bonding 
197.9 	authority under this section on the Monday of every other week beginning with the first 
197.10 	Monday in August July through and on the last Monday in November. Applications for 
197.11 	allocations must be received by the department by 4:30 p.m. on the Monday preceding the 
197.12 	Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation 
197.13 	will be made or the applications must be received by the next business day after the holiday.
197.14 	(b) Prior to October 1, only the following applications shall be awarded allocations from 
197.15 	the unified pool. Allocations shall be awarded in the following order of priority:
197.16 	(1) applications for residential rental project bonds;
197.17 	(2) applications for small issue bonds for manufacturing projects; and
197.18 	(3) applications for small issue bonds for agricultural development bond loan projects.
197.19 	(c) On the first Monday in October through the last Monday in November, allocations 
197.20 	shall be awarded from the unified pool in the following order of priority:
197.21 	(1) applications for student loan bonds issued by or on behalf of the Minnesota Office 
197.22 	of Higher Education;
197.23 	(2) applications for mortgage bonds;
197.24 	(3) applications for public facility projects funded by public facility bonds;
197.25 	(4) applications for small issue bonds for manufacturing projects;
197.26 	(5) applications for small issue bonds for agricultural development bond loan projects;
197.27 	(6) applications for residential rental project bonds;
197.28 	(7) applications for enterprise zone facility bonds;
197.29 	(8) applications for governmental bonds; and
197.30 	(9) applications for redevelopment bonds.
198.1 	(d) If there are two or more applications for manufacturing projects from the unified 
198.2 	pool and there is insufficient bonding authority to provide allocations for all manufacturing 
198.3 	projects in any one allocation period, the available bonding authority shall be awarded based 
198.4 	on the number of points awarded a project under section 474A.045 with those projects 
198.5 	receiving the greatest number of points receiving allocation first. If two or more applications 
198.6 	for manufacturing projects receive an equal amount of points, available bonding authority 
198.7 	shall be awarded by lot unless otherwise agreed to by the respective issuers.
198.8 	(e) If there are two or more applications for enterprise zone facility projects from the 
198.9 	unified pool and there is insufficient bonding authority to provide allocations for all enterprise 
198.10 	zone facility projects in any one allocation period, the available bonding authority shall be 
198.11 	awarded based on the number of points awarded a project under section 474A.045 with 
198.12 	those projects receiving the greatest number of points receiving allocation first. If two or 
198.13 	more applications for enterprise zone facility projects receive an equal amount of points, 
198.14 	available bonding authority shall be awarded by lot unless otherwise agreed to by the 
198.15 	respective issuers.
198.16 	(f) If there are two or more applications for residential rental projects from the unified 
198.17 	pool and there is insufficient bonding authority to provide allocations for all residential 
198.18 	rental projects in any one allocation period, the available bonding authority shall be awarded 
198.19 	in the following order of priority: (1) projects that preserve existing federally subsidized 
198.20 	housing; (2) projects that are not restricted to persons who are 55 years of age or older; and 
198.21 	(3) preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI 
198.22 	residential rental projects; (4) 100 percent LIHTC projects; (5) 20 percent LIHTC projects; 
198.23 	(6) other residential rental projects for which the amount of bonds requested in their 
198.24 	respective applications do not exceed the aggregate bond limitation; and (7) other residential 
198.25 	rental projects for which the amount of bonds requested in their respective applications 
198.26 	exceeds the aggregate bond limitation and which apply on or after September 1 of a calendar 
198.27 	year. If there are two or more applications for residential rental projects at the same priority 
198.28 	level and there is insufficient bonding authority to provide allocations for all such projects 
198.29 	in any one allocation period, available bonding authority shall be randomly awarded by lot 
198.30 	but only for projects that can receive the full amount of their respective requested allocations. 
198.31 	If a residential rental project does not receive any of its requested allocation under the 
198.32 	random award, the remaining bonding authority not allocated to the project shall be reserved 
198.33 	by the commissioner, or by the Minnesota Housing Finance Agency if the authority is carried 
198.34 	forward pursuant to section 474A.131, for the project for up to 24 months thereafter, and 
198.35 	if the project applies in the future to the housing pool or unified pool for additional allocation 
199.1 	of bonds, the project shall be fully funded up to the remaining amount of its original 
199.2 	application request for bonding authority before any new project applying in the same 
199.3 	allocation period that has an equal priority shall receive bonding authority.
199.4 	(g) From the first Monday in August July through the last Monday in November August, 
199.5 	$20,000,000 of bonding authority or an amount equal to the total annual amount of bonding 
199.6 	authority allocated to the small issue pool under section 474A.03, subdivision 1, less the 
199.7 	amount allocated to issuers from the small issue pool for that year, whichever is less, is 
199.8 	reserved within the unified pool for small issue bonds to the extent such amounts are available 
199.9 	within the unified pool.
199.10 	(h) The total amount of allocations for mortgage bonds from the housing pool and the 
199.11 	unified pool may not exceed:
199.12 	(1) $10,000,000 for any one city; or
199.13 	(2) $20,000,000 for any number of cities in any one county.
199.14 	(i) The total amount of allocations for student loan bonds from the unified pool may not 
199.15 	exceed $25,000,000 per year.
199.16 	(j) If there is insufficient bonding authority to fund all projects within any qualified bond 
199.17 	category other than enterprise zone facility projects, manufacturing projects, and residential 
199.18 	rental projects, allocations shall be awarded by lot unless otherwise agreed to by the 
199.19 	respective issuers.
199.20 	(k) If an application is rejected, the commissioner must notify the applicant and return 
199.21 	the application deposit to the applicant within 30 days unless the applicant requests in writing 
199.22 	that the application be resubmitted.
199.23 	(l) The granting of an allocation of bonding authority under this section must be evidenced 
199.24 	by issuance of a certificate of allocation.
199.25 		Subd. 3a.Mortgage bonds. (a) Bonding authority remaining in the unified pool on 
199.26 	October 1 is available for single-family housing programs for cities that applied in January
199.27 	June and received an allocation under section 474A.061, subdivision 2a, in the same calendar 
199.28 	year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage 
199.29 	bonds pursuant to this section, minus any amounts for a city or consortium that intends to 
199.30 	issue bonds on its own behalf under paragraph (c).
199.31 	(b) The agency may issue bonds on behalf of participating cities. The agency shall request 
199.32 	an allocation from the commissioner for all applicants who choose to have the agency issue 
199.33 	bonds on their behalf and the commissioner shall allocate the requested amount to the 
200.1 	agency. Allocations shall be awarded by the commissioner each Monday commencing on 
200.2 	the first Monday in October through the last Monday in November for applications received 
200.3 	by 4:30 p.m. on the Monday of the week preceding an allocation.
200.4 	For cities who choose to have the agency issue bonds on their behalf, allocations will 
200.5 	be made loan by loan, on a first-come, first-served basis among the cities. The agency shall 
200.6 	submit an application fee pursuant to section 474A.03, subdivision 4, and an application 
200.7 	deposit equal to two percent of the requested allocation to the commissioner when requesting 
200.8 	an allocation from the unified pool. After awarding an allocation and receiving a notice of 
200.9 	issuance for mortgage bonds issued on behalf of the participating cities, the commissioner 
200.10 	shall transfer the application deposit to the Minnesota Housing Finance Agency.
200.11 	For purposes of paragraphs (a) to (d), "city" means a county or a consortium of local 
200.12 	government units that agree through a joint powers agreement to apply together for 
200.13 	single-family housing programs, and has the meaning given it in section 462C.02, subdivision 
200.14 	6. "Agency" means the Minnesota Housing Finance Agency.
200.15 	(c) Any city that received an allocation pursuant to section 474A.061, subdivision 2a, 
200.16 	paragraph (f), in the current year that wishes to receive an additional allocation from the 
200.17 	unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement shall 
200.18 	notify the Minnesota Housing Finance Agency by the third Monday in September. The total 
200.19 	amount of allocation for mortgage bonds for a city choosing to issue bonds on its own behalf 
200.20 	or through a joint powers agreement is limited to the lesser of: (i) the amount requested, or 
200.21 	(ii) the product of the total amount available for mortgage bonds from the unified pool, 
200.22 	multiplied by the ratio of the population of each city that applied in January and received 
200.23 	an allocation under section 474A.061, subdivision 2a, in the same calendar year, as 
200.24 	determined by the most recent estimate of the city's population released by the state 
200.25 	demographer's office to the total of the population of all the cities that applied in January 
200.26 	and received an allocation under section 474A.061, subdivision 2a, in the same calendar 
200.27 	year. If a city choosing to issue bonds on its own behalf or through a joint powers agreement 
200.28 	is located within a county that has also chosen to issue bonds on its own behalf or through 
200.29 	a joint powers agreement, the city's population will be deducted from the county's population 
200.30 	in calculating the amount of allocations under this paragraph.
200.31 	The Minnesota Housing Finance Agency shall notify each city choosing to issue bonds 
200.32 	on its own behalf or pursuant to a joint powers agreement of the amount of its allocation 
200.33 	by October 15. Upon determining the amount of the allocation of each choosing to issue 
200.34 	bonds on its own behalf or through a joint powers agreement, the agency shall forward a 
200.35 	list specifying the amounts allotted to each city.
201.1 	A city that chooses to issue bonds on its own behalf or through a joint powers agreement 
201.2 	may request an allocation from the commissioner by forwarding an application with an 
201.3 	application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal 
201.4 	to two percent of the requested amount to the commissioner no later than 4:30 p.m. on the 
201.5 	Monday of the week preceding an allocation. Allocations to cities that choose to issue bonds 
201.6 	on their own behalf shall be awarded by the commissioner on the first Monday after October 
201.7 	15 through the last Monday in November. No city may receive an allocation from the 
201.8 	commissioner after the last Monday in November. The commissioner shall allocate the 
201.9 	requested amount to the city or cities subject to the limitations under this subdivision.
201.10 	If a city issues mortgage bonds from an allocation received under this paragraph, the 
201.11 	issuer must provide for the recycling of funds into new loans. If the issuer is not able to 
201.12 	provide for recycling, the issuer must notify the commissioner in writing of the reason that 
201.13 	recycling was not possible and the reason the issuer elected not to have the Minnesota 
201.14 	Housing Finance Agency issue the bonds. "Recycling" means the use of money generated 
201.15 	from the repayment and prepayment of loans for further eligible loans or for the redemption 
201.16 	of bonds and the issuance of current refunding bonds.
201.17 	(d) No entitlement city or county or city in an entitlement county may apply for or be 
201.18 	allocated authority to issue mortgage bonds or use mortgage credit certificates from the 
201.19 	unified pool.
201.20 	(e) An allocation awarded to the agency for mortgage bonds under this section may be 
201.21 	carried forward by the agency subject to notice requirements under section 474A.131.
201.22 		Subd. 4.Remaining bonding authority. All remaining bonding authority available for 
201.23 	allocation under this section on December 1, is allocated to the Minnesota Housing Finance 
201.24 	Agency.
201.25 		Subd. 5.Return of allocation; deposit refund. (a) If an issuer that receives an allocation 
201.26 	under this section determines that it will not issue obligations equal to all or a portion of 
201.27 	the allocation received under this section within 120 the applicable number of days of after
201.28 	the allocation required in this chapter or within the time period permitted by federal tax law, 
201.29 	whichever is less, the issuer must notify the department. If the issuer notifies the department 
201.30 	or the 120-day such period since allocation has expired prior to the last Monday in November, 
201.31 	the amount of allocation is canceled and returned for reallocation through the unified pool. 
201.32 	If the issuer notifies the department on or after the last Monday in November, the amount 
201.33 	of allocation is canceled and returned for reallocation to the Minnesota Housing Finance 
201.34 	Agency. To encourage a competitive application process, the commissioner shall reserve, 
202.1 	for new applications, the amount of allocation that is canceled and returned for reallocation 
202.2 	under this section for a minimum of seven calendar days.
202.3 	(b) An issuer that returns for reallocation all or a portion of an allocation for all types 
202.4 	of bonds other than residential rental project bonds received under this section within 120 
202.5 	days of the allocation shall receive within 30 days a refund equal to:
202.6 	(1) one-half of the application deposit for the amount of bonding authority returned 
202.7 	within 30 days of receiving the allocation;
202.8 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
202.9 	between 31 and 60 days of receiving the allocation; and
202.10 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
202.11 	between 61 and 120 days of receiving the allocation.
202.12 	(c) No refund of the application deposit shall be available for allocations returned on or 
202.13 	after the last Monday in November.
202.14 	(c) An issuer that returns for reallocation all or a portion of an allocation for residential 
202.15 	rental project bonds received under this section within the earlier of 180 days of the allocation 
202.16 	or the end of the year shall receive within 30 days a refund equal to:
202.17 	(1) one-half of the application deposit for the amount of bonding authority returned 
202.18 	within 45 days of receiving the allocation;
202.19 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
202.20 	between 46 and 90 days of receiving the allocation; and
202.21 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
202.22 	between 91 and 180 days of receiving the allocation.
202.23 	No refund of the application deposit shall be available for allocations returned on or after 
202.24 	the last Monday in November.
202.25 		Subd. 6.Final allocation; carryforward. Notwithstanding the notice requirements of 
202.26 	section 474A.131, subdivision 2, any bonding authority remaining unissued by the Minnesota 
202.27 	Housing Finance Agency on the last business day in December shall be carried forward 
202.28 	into the next calendar year by the commissioner for the Minnesota Housing Finance Agency.
202.29 	Any authority carried forward shall be allocated to utilize such authority that is closest to 
202.30 	expiring first, and in all events, Minnesota Housing Finance Agency shall allocate its bonding 
202.31 	authority to utilize such authority carried forward prior to any current year's allocation.

203.1 	Sec. 28. Minnesota Statutes 2016, section 474A.131, is amended to read:
203.2 	474A.131 NOTICE OF ISSUE AND NOTICE OF CARRYFORWARD.
203.3 		Subdivision 1.Notice of issue. Each issuer that issues bonds with an allocation received 
203.4 	under this chapter shall provide a notice of issue to the department on forms provided by 
203.5 	the department stating:
203.6 	(1) the date of issuance of the bonds;
203.7 	(2) the title of the issue;
203.8 	(3) the principal amount of the bonds;
203.9 	(4) the type of qualified bonds under federal tax law;
203.10 	(5) the dollar amount of the bonds issued that were subject to the annual volume cap; 
203.11 	and
203.12 	(6) for entitlement issuers, whether the allocation is from current year entitlement 
203.13 	authority or is from carryforward authority.
203.14 	For obligations that are issued as a part of a series of obligations, a notice must be 
203.15 	provided for each series. A penalty of one-half of the amount of the application deposit not 
203.16 	to exceed $5,000 shall apply to any issue of obligations for which a notice of issue is not 
203.17 	provided to the department within five business days after issuance or before 4:30 p.m. on 
203.18 	the last business day in December, whichever occurs first. Within 30 days after receipt of 
203.19 	a notice of issue the department shall refund a portion of the application deposit equal to 
203.20 	one percent of the amount of the bonding authority actually issued if a one percent application 
203.21 	deposit was made, or equal to two percent of the amount of the bonding authority actually 
203.22 	issued if a two percent the applicable application deposit was made, less any penalty amount.
203.23 		Subd. 1a.Certificate of notice. If an allocation received under this chapter is used for 
203.24 	mortgage credit certificates, a certificate notice must be submitted to the department on 
203.25 	forms provided by the department stating the date of the filing of the election not to issue 
203.26 	bonds as provided under section 25, paragraph (c), of the Internal Revenue Code and the 
203.27 	amount of allocation authority to be used under the program.
203.28 	A penalty of one-half of the amount of the application deposit not to exceed $5,000 shall 
203.29 	apply to any mortgage credit certificate program for which a certificate notice is not provided 
203.30 	to the department within five days of the date of the filing of the election not to issue bonds 
203.31 	or before the last Monday in December, whichever occurs first. Within 30 days after receipt 
203.32 	of a certificate notice the department shall refund a portion of the application deposit equal 
204.1 	to one percent of the amount of the bonding authority to be used for the mortgage credit 
204.2 	certificate program, less any penalty amount.
204.3 		Subd. 1b.Deadline for issuance of qualified bonds. (a) If an issuer fails to notify the 
204.4 	department before 4:30 p.m. on the last business day in December of issuance of obligations 
204.5 	pursuant to an allocation received for any qualified bond project or issuance of an entitlement 
204.6 	allocation other than those involving residential rental bonds, the allocation is canceled and 
204.7 	the bonding authority is allocated to the Minnesota Housing Finance Agency for carryforward 
204.8 	by the commissioner under section 474A.091, subdivision 6.
204.9 	(b) With respect to (1) an allocation received for a residential rental project for which 
204.10 	such obligations have not been issued before 4:30 p.m. on the last business day in December 
204.11 	and the time period for issuance of such obligations provided under section 474A.061, 
204.12 	subdivision 2a, or section 474A.091, subdivision 2, as applicable has not expired, or (2) 
204.13 	bonding authority reserved for a project for up to 24 months under section 474A.061, 
204.14 	subdivision 2a, or section 474A.091, subdivision 3, paragraph (f), as of 4:30 p.m. on the 
204.15 	last business day of December, such bonding authority shall be allocated to the Minnesota 
204.16 	Housing Finance Agency for carryforward by the commissioner under section 474A.091, 
204.17 	subdivision 6; provided, however, that such allocation shall remain reserved by the Minnesota 
204.18 	Housing Finance Agency for the residential rental project described in the original application 
204.19 	and the Minnesota Housing Finance Agency will have the fiduciary duty to issue such bonds 
204.20 	as intended by the originally intended issuer. In addition, any obligations issued by the 
204.21 	Minnesota Housing Finance Agency for a residential rental project that is subject to this 
204.22 	subdivision shall not be subject to the debt management policies of the Minnesota Housing 
204.23 	Finance Agency, as adopted and amended from time to time. The Minnesota Housing 
204.24 	Finance Agency shall not charge any issuer fees for an issuance under this subdivision and 
204.25 	all issuer fees shall be paid to the original applicant for the bonds. Notwithstanding this 
204.26 	paragraph, the Minnesota Housing Finance Agency may be reimbursed for its reasonable 
204.27 	costs to issue the bonds.
204.28 		Subd. 2.Carryforward notice. If an issuer intends to carry forward an allocation received 
204.29 	under this chapter, it must notify the department in writing before 4:30 p.m. on the last 
204.30 	business day in December. This notice requirement does not apply to the Minnesota Housing 
204.31 	Finance Agency for the carryforward of unallocated unified pool balances or for the 
204.32 	carryforward of allocations of residential rental project bonds pursuant to subdivision 1b.
204.33 		Subd. 3.Irrevocable allocation. The department may not revoke an allocation received 
204.34 	under this chapter after receiving a notice of issue or certificate notice from the issuer.
205.1 		Subd. 4.Allocation plan. By January 15 of each year, the commissioner of the Minnesota 
205.2 	Housing Finance Agency shall annually prepare a tax-exempt bond allocation plan that 
205.3 	identifies the amount of tax-exempt bonds allocated to the Minnesota Housing Finance 
205.4 	Agency during the previous calendar year, identifies the amount of carryforward bonds and 
205.5 	the respective issuers pursuant to subdivision 1b, and for all other bond carryforward, 
205.6 	whether or not the Minnesota Housing Fiance Agency intends to carryforward such bonds 
205.7 	not otherwise allocated in the previous year as qualified residential rental bonds or qualified 
205.8 	mortgage bonds or mortgage credit certificates consistent with the requirements of Internal 
205.9 	Revenue Service Form 8328, identifies the carryforward balance of any tax-exempt bonds 
205.10 	allocated to the Minnesota Housing Finance Agency including those bonds carried forward 
205.11 	as qualified residential rental bonds and qualified mortgage bonds or mortgage credit 
205.12 	certificates. Prior to January 15 of each year, the Minnesota Housing Finance Agency must 
205.13 	post on its official Web site the tax-exempt bond allocation plan and invite public comment 
205.14 	until February 1. The Minnesota Housing Finance Agency shall not file the Internal Revenue 
205.15 	Service Form 8328 until the public comment period had closed on February 1 unless 
205.16 	otherwise required by federal law.

205.17 	Sec. 29. Minnesota Statutes 2016, section 474A.14, is amended to read:
205.18 	474A.14 NOTICE OF AVAILABLE AUTHORITY.
205.19 	The department shall provide at its official Web site a written notice of the amount of 
205.20 	bonding authority in the housing, small issue, and public facilities pools as soon after January 
205.21 	1 as possible. The department shall provide at its official Web site a written notice of the 
205.22 	amount of bonding authority available for allocation in the unified pool as soon after August
205.23 	July 1 as possible.

205.24 	Sec. 30. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter 
205.25 	189, article 7, section 8, and Laws 2017, chapter 94, article 6, section 17, is amended to 
205.26 	read:
205.27 	Sec. 14. ASSIGNED RISK TRANSFER.
 205.28 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
205.29 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
205.30 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
205.31 	amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer 
205.32 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
205.33 	paragraph (a), clause (1). This is a onetime transfer.
206.1 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
206.2 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
206.3 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
206.4 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, 
206.5 	to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. 
206.6 	This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, 
206.7 	subdivision 1, paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) 
206.8 	and (f). The total amount authorized for all transfers under this paragraph must not exceed 
206.9 	$24,100,000. This paragraph expires the day following the transfer in which the total amount 
206.10 	transferred under this paragraph to the Minnesota minerals 21st century fund equals 
206.11 	$24,100,000.
206.12 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
206.13 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
206.14 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
206.15 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
206.16 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
206.17 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a 
206.18 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
206.19 	fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 
206.20 	15. Both the transfer and appropriation under this paragraph are onetime.
206.21 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an 
206.22 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
206.23 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
206.24 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
206.25 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
206.26 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a 
206.27 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
206.28 	fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 
206.29 	15. Both the transfer and appropriation under this paragraph are onetime.
206.30 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 
206.31 	management and budget shall transfer to the general fund, any unencumbered or unexpended 
206.32 	balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or 
206.33 	the date the commissioner of commerce determines that an excess surplus in the assigned 
206.34 	risk plan does not exist, whichever occurs earlier.
207.1 	(f) By June 30, 2017 2018, and each year thereafter, if the commissioner of commerce 
207.2 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
207.3 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
207.4 	budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 $3,000,000
207.5 	each year, to the rural policy and development center fund under Minnesota Statutes, section 
207.6 	116J.4221 Minnesota manufactured home relocation trust fund established in Minnesota 
207.7 	Statutes, section 462A.35, subdivision 1. This transfer occurs prior to any transfer under 
207.8 	paragraph (b) or under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), 
207.9 	clause (1). The total amount authorized for all transfers under this paragraph must not exceed 
207.10 	$2,000,000 $3,000,000. This paragraph expires the day following the transfer in which the 
207.11 	total amount transferred under this paragraph to the rural policy and development center 
207.12 	fund Minnesota manufactured home relocation trust fund equals $2,000,000 $3,000,000.

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

207.14 	Sec. 31. ADVANCES TO THE MINNESOTA MANUFACTURED HOME 
207.15 	RELOCATION TRUST FUND.
 207.16 	(a) Until June 30, 2020, the Minnesota Housing Finance Agency is authorized to advance 
207.17 	up to $400,000 from available resources to the Minnesota manufactured home relocation 
207.18 	trust fund established under Minnesota Statutes, section 462A.35, if the account balance in 
207.19 	the Minnesota manufactured home relocation trust fund is insufficient to pay the amounts 
207.20 	claimed under Minnesota Statutes, section 327C.095, subdivision 13.
207.21 	(b) The Minnesota Housing Finance Agency shall be reimbursed from the Minnesota 
207.22 	manufactured home relocation trust fund for any money advanced by the agency under 
207.23 	paragraph (a) to the fund.

207.24 	Sec. 32.  REPEALER.
 207.25 	Minnesota Statutes 2016, section 471.9996, subdivision 2, is repealed.

207.26 	Sec. 33. EFFECTIVE DATE.
 207.27 	Except as otherwise noted, sections 12 to 29 are effective the day following final 
207.28 	enactment.

207.29 	ARTICLE 9
207.30 	LABOR AND INDUSTRY

207.31 	Section 1. Minnesota Statutes 2016, section 177.24, subdivision 1, is amended to read:
208.1 		Subdivision 1.Amount. (a) For purposes of this subdivision, the terms defined in this 
208.2 	paragraph have the meanings given them.
208.3 	(1) "Large employer" means an enterprise whose annual gross volume of sales made or 
208.4 	business done is not less than $500,000 (exclusive of excise taxes at the retail level that are 
208.5 	separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
208.6 	to 177.35.
208.7 	(2) "Small employer" means an enterprise whose annual gross volume of sales made or 
208.8 	business done is less than $500,000 (exclusive of excise taxes at the retail level that are 
208.9 	separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
208.10 	to 177.35.
208.11 	(3) "Employee receiving gratuities" means an employee who customarily and regularly 
208.12 	receives more than $30 per month in gratuities.
208.13 	(b) Except as otherwise provided in sections 177.21 to 177.35:
208.14 	(1) every large employer must pay each employee wages at a rate of at least:
208.15 	(i) $8.00 per hour beginning August 1, 2014;
208.16 	(ii) $9.00 per hour beginning August 1, 2015;
208.17 	(iii) $9.50 per hour beginning August 1, 2016; and
208.18 	(iv) the rate established under paragraph (f) beginning January 1, 2018; and
208.19 	(2) every small employer must pay each employee at a rate of at least:
208.20 	(i) $6.50 per hour beginning August 1, 2014;
208.21 	(ii) $7.25 per hour beginning August 1, 2015;
208.22 	(iii) $7.75 per hour beginning August 1, 2016; and
208.23 	(iv) the rate established under paragraph (f) beginning January 1, 2018.
208.24 	(c) Notwithstanding paragraph (b), during the first 90 consecutive days of employment, 
208.25 	an employer may pay an employee under the age of 20 years a wage of at least:
208.26 	(1) $6.50 per hour beginning August 1, 2014;
208.27 	(2) $7.25 per hour beginning August 1, 2015;
208.28 	(3) $7.75 per hour beginning August 1, 2016; and
208.29 	(4) the rate established under paragraph (f) beginning January 1, 2018.
209.1 	No employer may take any action to displace an employee, including a partial displacement 
209.2 	through a reduction in hours, wages, or employment benefits, in order to hire an employee 
209.3 	at the wage authorized in this paragraph.
209.4 	(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging 
209.5 	establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, 
209.6 	subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer 
209.7 	that includes the provision by the employer of a food or lodging benefit, if the employee is 
209.8 	working under authority of a summer work travel exchange visitor program (J) nonimmigrant 
209.9 	visa, a wage of at least:
209.10 	(1) $7.25 per hour beginning August 1, 2014;
209.11 	(2) $7.50 per hour beginning August 1, 2015;
209.12 	(3) $7.75 per hour beginning August 1, 2016; and
209.13 	(4) the rate established under paragraph (f) beginning January 1, 2018.
209.14 	No employer may take any action to displace an employee, including a partial displacement 
209.15 	through a reduction in hours, wages, or employment benefits, in order to hire an employee 
209.16 	at the wage authorized in this paragraph.
209.17 	(e) Notwithstanding paragraph (b), a large employer must pay an employee under the 
209.18 	age of 18 at a rate of at least:
209.19 	(1) $6.50 per hour beginning August 1, 2014;
209.20 	(2) $7.25 per hour beginning August 1, 2015;
209.21 	(3) $7.75 per hour beginning August 1, 2016; and
209.22 	(4) the rate established under paragraph (f) beginning January 1, 2018.
209.23 	No employer may take any action to displace an employee, including a partial displacement 
209.24 	through a reduction in hours, wages, or employment benefits, in order to hire an employee 
209.25 	at the wage authorized in this paragraph.
209.26 	(f) No later than August 31 of each year, beginning in 2017, the commissioner shall 
209.27 	determine the percentage increase in the rate of inflation, as measured by the implicit price 
209.28 	deflator, national data for personal consumption expenditures as determined by the United 
209.29 	States Department of Commerce, Bureau of Economic Analysis during the 12-month period 
209.30 	immediately preceding that August or, if that data is unavailable, during the most recent 
209.31 	12-month period for which data is available. The minimum wage rates in paragraphs (b), 
209.32 	(c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded to the nearest cent; 
210.1 	or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A minimum 
210.2 	wage rate shall not be reduced under this paragraph. The new minimum wage rates 
210.3 	determined under this paragraph take effect on the next January 1.
210.4 	(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner 
210.5 	may issue an order that an increase calculated under paragraph (f) not take effect. The 
210.6 	commissioner may issue the order only if the commissioner, after consultation with the 
210.7 	commissioner of management and budget, finds that leading economic indicators, including 
210.8 	but not limited to projections of gross domestic product calculated by the United States 
210.9 	Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index 
210.10 	issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates, 
210.11 	indicate the potential for a substantial downturn in the state's economy. Prior to issuing an 
210.12 	order, the commissioner shall also calculate and consider the ratio of the rate of the calculated 
210.13 	change in the minimum wage rate to the rate of change in state median income over the 
210.14 	same time period used to calculate the change in wage rate. Prior to issuing the order, the 
210.15 	commissioner shall hold a public hearing, notice of which must be published in the State 
210.16 	Register, on the department's Web site, in newspapers of general circulation, and by other 
210.17 	means likely to inform interested persons of the hearing, at least ten days prior to the hearing. 
210.18 	The commissioner must allow interested persons to submit written comments to the 
210.19 	commissioner before the public hearing and for 20 days after the public hearing.
210.20 	(2) The commissioner may in a year subsequent to issuing an order under clause (1), 
210.21 	make a supplemental increase in the minimum wage rate in addition to the increase for a 
210.22 	year calculated under paragraph (f). The supplemental increase may be in an amount up to 
210.23 	the full amount of the increase not put into effect because of the order. If the supplemental 
210.24 	increase is not the full amount, the commissioner may make a supplemental increase of the 
210.25 	difference, or any part of a difference, in a subsequent year until the full amount of the 
210.26 	increase ordered not to take effect has been included in a supplemental increase. In making 
210.27 	a determination to award a supplemental increase under this clause, the commissioner shall 
210.28 	use the same considerations and use the same process as for an order under clause (1). A 
210.29 	supplemental wage increase is not subject to and shall not be considered in determining 
210.30 	whether a wage rate increase exceeds the limits for annual wage rate increases allowed 
210.31 	under paragraph (f).
210.32 	(h) Notwithstanding paragraph (b), every large employer must pay an employee receiving 
210.33 	gratuities a wage of at least:
211.1 	(1) $9.65 per hour if the employee earns sufficient gratuities during the workweek so 
211.2 	that the sum of $9.65 per hour and gratuities received averages at least the amount established 
211.3 	for large employers under paragraph (j); or
211.4 	(2) the greater of the wage rate under this section or United States Code, title 29, section 
211.5 	206(a)(1), if the employee does not earn sufficient gratuities during the workweek so that 
211.6 	the sum of $9.65 per hour and gratuities received averages at least the amount established 
211.7 	for large employers under paragraph (j).
211.8 	(i) Notwithstanding paragraph (b), every small employer must pay an employee receiving 
211.9 	gratuities a wage of at least:
211.10 	(1) $7.87 per hour if the employee earns sufficient gratuities during the workweek so 
211.11 	that the sum of $7.87 per hour and gratuities received averages at least the amount established 
211.12 	for small employers under paragraph (j); or
211.13 	(2) the greater of the wage rate under this section or United States Code, title 29, section 
211.14 	206(a)(1), if the employee does not earn sufficient gratuities during the workweek so that 
211.15 	the sum of $7.87 per hour and gratuities received averages at least the amount established 
211.16 	for small employers under paragraph (j).
211.17 	(j)(1) For large employers, the average hourly wage and gratuity amount begins at $14 
211.18 	and increases annually by the lesser of:
211.19 	(i) two percent, rounded to the nearest cent; or
211.20 	(ii) the percentage calculated by the commissioner under paragraph (f), rounded to the 
211.21 	nearest cent.
211.22 	(2) For small employers, the average hourly wage and gratuity amount begins at $12 
211.23 	and increases annually by the lesser of:
211.24 	(i) two percent, rounded to the nearest cent; or
211.25 	(ii) the percentage calculated by the commissioner under paragraph (f), rounded to the 
211.26 	nearest cent.
211.27 	An average hourly wage and gratuity amount shall not be reduced under this paragraph. 
211.28 	The adjusted average hourly wage and salary amounts determined under this paragraph take 
211.29 	effect on the next January 1.

212.1 	Sec. 2. Minnesota Statutes 2016, section 182.666, subdivision 1, is amended to read:
212.2 		Subdivision 1.Willful or repeated violations. Any employer who willfully or repeatedly 
212.3 	violates the requirements of section 182.653, or any standard, rule, or order adopted under 
212.4 	the authority of the commissioner as provided in this chapter, may be assessed a fine not to 
212.5 	exceed $70,000 $126,750 for each violation. The minimum fine for a willful violation is 
212.6 	$5,000 $9,055.

212.7 	Sec. 3. Minnesota Statutes 2016, section 182.666, subdivision 2, is amended to read:
212.8 		Subd. 2.Serious violations. Any employer who has received a citation for a serious 
212.9 	violation of its duties under section 182.653, or any standard, rule, or order adopted under 
212.10 	the authority of the commissioner as provided in this chapter, shall be assessed a fine not 
212.11 	to exceed $7,000 $12,675 for each violation. If a serious violation under section 182.653, 
212.12 	subdivision 2, causes or contributes to the death of an employee, the employer shall be 
212.13 	assessed a fine of up to $25,000 for each violation.

212.14 	Sec. 4. Minnesota Statutes 2016, section 182.666, subdivision 3, is amended to read:
212.15 		Subd. 3.Nonserious violations. Any employer who has received a citation for a violation 
212.16 	of its duties under section 182.653, subdivisions 2 to 4, where the violation is specifically 
212.17 	determined not to be of a serious nature as provided in section 182.651, subdivision 12, 
212.18 	may be assessed a fine of up to $7,000 $12,675 for each violation.

212.19 	Sec. 5. Minnesota Statutes 2016, section 182.666, subdivision 4, is amended to read:
212.20 		Subd. 4.Failure to correct a violation. Any employer who fails to correct a violation 
212.21 	for which a citation has been issued under section 182.66 within the period permitted for 
212.22 	its correction, which period shall not begin to run until the date of the final order of the 
212.23 	commissioner in the case of any review proceedings under this chapter initiated by the 
212.24 	employer in good faith and not solely for delay or avoidance of penalties, may be assessed 
212.25 	a fine of not more than $7,000 $12,675 for each day during which the failure or violation 
212.26 	continues.

212.27 	Sec. 6. Minnesota Statutes 2016, section 182.666, subdivision 5, is amended to read:
212.28 		Subd. 5.Posting violations. Any employer who violates any of the posting requirements, 
212.29 	as prescribed under this chapter, except those prescribed under section 182.661, subdivision 
212.30 	3a, shall be assessed a fine of up to $7,000 $12,675 for each violation.

213.1 	Sec. 7. Minnesota Statutes 2016, section 182.666, is amended by adding a subdivision to 
213.2 	read:
213.3 		Subd. 6a.Increases for inflation. (a) No later than August 31 of each year, beginning 
213.4 	in 2018, the commissioner shall determine the percentage increase in the rate of inflation, 
213.5 	as measured by the implicit price deflator, national data for personal consumption 
213.6 	expenditures as determined by the United States Department of Commerce, Bureau of 
213.7 	Economic Analysis during the 12-month period immediately preceding that August or, if 
213.8 	that data is unavailable, during the most recent 12-month period for which data is available. 
213.9 	The fines in subdivisions 1, 2, 3, 4, and 5, except for the fine for a serious violation under 
213.10 	section 182.653, subdivision 2, that causes or contributes to the death of an employee, are 
213.11 	increased by the lesser of (1) 2.5 percent, rounded to the nearest dollar amount evenly 
213.12 	divisible by ten, or (2) the percentage calculated by the commissioner, rounded to the nearest 
213.13 	dollar amount evenly divisible by ten.
213.14 	(b) The fines increased under paragraph (a) shall not be increased to an amount greater 
213.15 	than the corresponding federal penalties for the specified violations promulgated in United 
213.16 	States Code, title 29, section 666, subsections (a)-(d), (i), as amended through November 
213.17 	5, 1990, and adjusted according to United States Code, title 28, section 2461, note (Federal 
213.18 	Civil Penalties Inflation Adjustment), as amended through November 2, 2015.
213.19 	(c) A fine must not be reduced under this subdivision. A fine increased under this 
213.20 	subdivision takes effect on the next January 1.

213.21 	Sec. 8. Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:
213.22 		Subd. 3.Prohibition. Except as provided in subdivision 6, no persons required to be 
213.23 	licensed by subdivision 1 may act or hold themselves out as a residential building contractor, 
213.24 	residential remodeler, residential roofer, or manufactured home installer for compensation 
213.25 	without a license issued by the commissioner. Unlicensed residential building contractor, 
213.26 	residential remodeler, or residential roofer activity is a gross misdemeanor.

213.27 	Sec. 9.  REPEALER.
 213.28 	Minnesota Statutes 2016, section 177.24, subdivision 2, is repealed.

214.1 	ARTICLE 10
214.2 	LAKE WINONA MANAGEMENT

214.3 	Section 1. LAKE WINONA MANAGEMENT; USING OFFSET, ADAPTIVE 
214.4 	PLANNING.
 214.5 	(a) To facilitate implementation of the Lake Winona total maximum daily load, the 
214.6 	Alexandria Lake Area Sanitary District may fund or perform lake management activities 
214.7 	in Lake Winona and in Lake Agnes. Lake management activities may include but are not 
214.8 	limited to carp removal and alum treatment. If the district agrees to fund or perform lake 
214.9 	management activities in Lake Winona and in Lake Agnes, the commissioner of the Pollution 
214.10 	Control Agency shall do one of the following unless the district chooses another path to 
214.11 	compliance that conforms to state and federal law, such as facility construction:
214.12 	(1) approve an offset of the phosphorous loading proportional to the reduction achievable 
214.13 	through lake management activities in Lake Winona and Lake Agnes creditable to the 
214.14 	Alexandria Lake Area Sanitary District's wastewater treatment facility and issue or amend 
214.15 	the district's NPDES permit MN004738 to include the offset. The approved offset may be 
214.16 	related to the lake eutrophication response variable chlorophyll-a, but shall ensure the district 
214.17 	can achieve compliance with phosphorus effluent limits through wastewater optimization 
214.18 	techniques without performing capital upgrades to the wastewater treatment facility. The 
214.19 	lake management activities contemplated under paragraph (a) need not be completed before 
214.20 	the commissioner approves the offset and related discharge limits or issues the permit, but 
214.21 	the permit may include a schedule of compliance outlining the required lake management 
214.22 	activities and requiring that lake management activities in Lake Winona and Lake Agnes 
214.23 	begin immediately upon permit issuance. The approved offset and related permit language 
214.24 	must be consistent with Clean Water Act requirements and Minnesota Statutes, section 
214.25 	115.03, subdivision 10; or
214.26 	(2) amend the district's NPDES permit MN004738 in a manner consistent with state and 
214.27 	federal law to include an integrated and adaptive lake management plan and to extend the 
214.28 	final compliance deadline for the final phosphorus concentration effluent limit related to 
214.29 	the site specific standard for Lake Winona contained in the district's permit until such time 
214.30 	that carp removal in Lake Winona can be completed and the lake can be reassessed. The 
214.31 	permit may include a schedule of compliance outlining the required lake management 
214.32 	activities and requiring that lake management activities in Lake Winona and Lake Agnes 
214.33 	begin immediately upon permit issuance.
215.1 	(b) If the district agrees to fund or perform the lake management activities identified in 
215.2 	paragraph (a), the district may cooperate with the city of Alexandria in those efforts. The 
215.3 	district's responsibility for lake management activities in Lake Winona and Lake Agnes 
215.4 	terminates upon completion of the lake management activities identified in the schedule of 
215.5 	compliance contemplated under paragraph (a).

215.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
215.7 	Alexandria Lake Area Sanitary District and its chief clerical officer timely complete their 
215.8 	compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

215.9 	ARTICLE 11
215.10 	LOCAL GOVERNMENT

215.11 	Section 1. Minnesota Statutes 2016, section 465.73, is amended to read:
215.12 	465.73 LOAN FROM, SECURED BY U.S. AGRICULTURE DEPARTMENT 
215.13 	AGENCY.
215.14 	For purposes of constructing, repairing, or acquiring city halls, town halls, fire halls or 
215.15 	fire or rescue equipment, or libraries or child care facilities if otherwise authorized by law, 
215.16 	a statutory city, home rule charter city, county, or town may borrow not to exceed $450,000
215.17 	$750,000 from (i) funds granted to a rural electric cooperative organized under chapter 
215.18 	308A by the United States Department of Agriculture Rural Business-Cooperative Service 
215.19 	or (ii) directly from or in the form of funds guaranteed by the Rural Housing Service or 
215.20 	other agency of the United States Department of Agriculture by a note secured by a mortgage 
215.21 	or other security agreement on the property purchased with the borrowed funds. The city, 
215.22 	county, or town may pledge its full faith and credit and assign or pledge the revenues, if 
215.23 	any, from the facilities or equipment so financed together with any other properly available 
215.24 	funds to secure the loan. The obligation of the note is not to be included when computing 
215.25 	the net debt of the city, county, or town, nor is the approval of the voters required for the 
215.26 	issuance of the note.

215.27 	ARTICLE 12
215.28 	TELECOMMUNICATIONS

215.29 	Section 1. Minnesota Statutes 2016, section 116J.394, is amended to read:
215.30 	116J.394 DEFINITIONS.
215.31 	(a) For the purposes of sections 116J.394 to 116J.398, the following terms have the 
215.32 	meanings given them.
216.1 	(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, 
216.2 	subdivision 1, paragraph (b).
216.3 	(c) "Broadband infrastructure" means networks of deployed telecommunications 
216.4 	equipment and technologies necessary to provide high-speed Internet access and other 
216.5 	advanced telecommunications services for end users.
216.6 	(d) "Commissioner" means the commissioner of employment and economic development.
216.7 	(e) "Last-mile infrastructure" means broadband infrastructure that serves as the final leg 
216.8 	connecting the broadband service provider's network to the end-use customer's on-premises 
216.9 	telecommunications equipment.
216.10 	(f) "Middle-mile infrastructure" means broadband infrastructure that links a broadband 
216.11 	service provider's core network infrastructure to last-mile infrastructure.
216.12 	(g) "Political subdivision" means any county, city, town, school district, special district 
216.13 	or other political subdivision, or public corporation.
216.14 	(h) "Satellite broadband equipment" means a satellite dish or modem installed at a 
216.15 	broadband user's location in order to receive broadband service from a satellite broadband 
216.16 	provider.
216.17 	(i) "Satellite broadband provider" means an entity that provides broadband service by 
216.18 	means of wireless signals transmitted between communication stations orbiting the earth 
216.19 	and satellite broadband equipment installed at a broadband user's location.
216.20 	(j) "Satellite dish" means a parabolic aerial installed on a building exterior that receives 
216.21 	signals from and transmits signals to a satellite broadband provider's satellite communication 
216.22 	station orbiting the earth.
216.23 	(k) "Underserved areas" means areas of Minnesota in which households or businesses 
216.24 	lack access to wire-line broadband service at speeds of at least 100 megabits per second 
216.25 	download and at least 20 megabits per second upload.
216.26 	(i) (l) "Unserved areas" means areas of Minnesota in which households or businesses 
216.27 	lack access to wire-line broadband service, as defined in section 116J.39.

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

216.29 	Sec. 2. Minnesota Statutes 2016, section 116J.395, subdivision 2, is amended to read:
216.30 		Subd. 2.Eligible expenditures. (a) Grants may be awarded under this section to fund 
216.31 	the acquisition and installation of:
217.1 	(1) middle-mile and last-mile infrastructure that support broadband service scalable to 
217.2 	speeds of at least 100 megabits per second download and 100 megabits per second upload.; 
217.3 	and
217.4 	(2) satellite broadband equipment installed on the premises of a broadband user located 
217.5 	in an unserved area that can support broadband speeds of at least 25 megabits per second 
217.6 	download and three megabits per second upload.
217.7 	(b) Grants may be awarded under this section to fund monthly satellite broadband service 
217.8 	charges for a period of 12 months for a subscriber whose satellite broadband equipment has 
217.9 	been partially funded by a grant under paragraph (a), clause (2).

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

217.11 	Sec. 3. Minnesota Statutes 2016, section 116J.395, subdivision 5, is amended to read:
217.12 		Subd. 5.Application contents. An applicant for a grant under this section shall provide 
217.13 	the following information on the application:
217.14 	(1) the location of the project;
217.15 	(2) the kind and amount of broadband infrastructure or satellite broadband equipment 
217.16 	to be purchased for the project;
217.17 	(3) evidence regarding the unserved or underserved nature of the community in which 
217.18 	the project is to be located;
217.19 	(4) the number of households passed that will have access to broadband service as a 
217.20 	result of the project, or whose broadband service will be upgraded as a result of the project;
217.21 	(5) significant community institutions that will benefit from the proposed project;
217.22 	(6) evidence of community support for the project;
217.23 	(7) the total cost of the project;
217.24 	(8) sources of funding or in-kind contributions for the project that will supplement any 
217.25 	grant award;
217.26 	(9) evidence that no later than six weeks before submission of the application the applicant 
217.27 	contacted, in writing, all entities providing broadband service in the proposed project area 
217.28 	to ask for each broadband service provider's plan to upgrade broadband service in the project 
217.29 	area to speeds that meet or exceed the state's broadband speed goals in section 237.012, 
217.30 	subdivision 1, within the time frame specified in the proposed grant activities;
218.1 	(10) the broadband service providers' written responses to the inquiry made under clause 
218.2 	(9); and
218.3 	(11) any additional information requested by the commissioner.

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

218.5 	Sec. 4. Minnesota Statutes 2016, section 116J.395, subdivision 7, is amended to read:
218.6 		Subd. 7.Limitation. (a) No grant awarded under this section may fund more than:
218.7 	(1) 50 percent of the total cost of a project. under subdivision 2, paragraph (a), clause 
218.8 	(1);
218.9 	(2) 50 percent of the total cost of satellite broadband equipment installed at user locations, 
218.10 	up to $300; or
218.11 	(3) $600 in monthly satellite broadband subscription charges.
218.12 	(b) Grants awarded to a single project under this section must not exceed $5,000,000.

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

218.14 	ARTICLE 13
218.15 	STATE GOVERNMENT APPROPRIATIONS

218.16	Section 1. APPROPRIATIONS.
 	
218.17 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
218.18 	parentheses, subtracted from the appropriations in Laws 2017, First Special Session chapter 
218.19 	4, article 1, to the agencies and for the purposes specified in this article. The appropriations 
218.20 	are from the general fund, or another named fund, and are available for the fiscal years 
218.21 	indicated for each purpose. The figures "2018" and "2019" used in this article mean that 
218.22 	the appropriations listed under them are available for the fiscal year ending June 30, 2018, 
218.23 	or June 30, 2019, respectively.

218.24				APPROPRIATIONS
	
218.25				Available for the Year
	
218.26				Ending June 30
	
218.27					2018
		2019

218.28	Sec. 2. LEGISLATURE
 		.......
		314,000
	
218.29 	These amounts are from the general fund for 
218.30 	the Legislative Coordinating Commission, as 
218.31 	follows:
219.1 	(1) $120,000 is for the transfer of 
219.2 	responsibilities related to the Pew-MacArthur 
219.3 	Results First framework. The base for this 
219.4 	appropriation is $177,000 in fiscal year 2020 
219.5 	and $185,000 in fiscal year 2021;
219.6 	(2) $104,000 is for digital preservation of 
219.7 	legislative records by the Legislative 
219.8 	Reference Library. This is a onetime 
219.9 	appropriation; and
219.10 	(3) $90,000 is for rent payments for the Office 
219.11 	of the Revisor of Statutes. This is a onetime 
219.12 	appropriation.

219.13	Sec. 3. STATE AUDITOR
 	$
	.......
	$
	(269,094)
	
219.14 	This is a general reduction to office operations. 
219.15 	In addition to the requirements of section 16, 
219.16 	the auditor may not reduce operations or 
219.17 	services related to public pensions.

219.18	Sec. 4. ATTORNEY GENERAL
 	$
	.......
	$
	(1,000,000)
	
219.19 	This is a general reduction to office operations, 
219.20 	subject to the requirements of section 16.

219.21	Sec. 5. SECRETARY OF STATE
 	$
	.......
	$
	1,754,000
	
219.22 	Of these amounts:
219.23 	(1) $220,000 is appropriated from the political 
219.24 	party accounts established in the special 
219.25 	revenue fund under Minnesota Statutes, 
219.26 	section 10A.30, subdivision 2, for deposit in 
219.27 	the Help America Vote Act Account 
219.28 	established under Minnesota Statutes, section 
219.29 	5.30. This amount is for purposes that 
219.30 	constitute the state match necessary to receive 
219.31 	$6,595,610 in federal funds for cybersecurity 
219.32 	under the Omnibus Appropriations Act of 
220.1 	2018, Public Law 115-1410, and section 101 
220.2 	of the Help America Vote Act of 2002 under 
220.3 	Public Law 107-252. This is a onetime 
220.4 	appropriation; and
220.5 	(2) $1,534,000 is appropriated from the Help 
220.6 	America Vote Act account established under 
220.7 	Minnesota Statutes, section 5.30, for the 
220.8 	purposes of modernizing, securing, and 
220.9 	updating the statewide voter registration 
220.10 	system and for cybersecurity upgrades as 
220.11 	authorized by federal law. This is a onetime 
220.12 	appropriation and is available until June 30, 
220.13 	2020.

220.14	Sec. 6. ADMINISTRATIVE HEARINGS
 	$
	.......
	$
	525,000
	
220.15 	These amounts are from the general fund for 
220.16 	the information policy analysis unit established 
220.17 	in Minnesota Statutes, section 13.071.

220.18	Sec. 7. ADMINISTRATION
 	$
	.......
	$
	(1,243,000)
	
220.19 	These amounts include reductions as follows:
220.20 	(1) the Office of Continuous Improvement is 
220.21 	reduced by $418,000;
220.22 	(2) the State Historic Preservation Office is 
220.23 	reduced by $300,000 in fiscal year 2019. The 
220.24 	base for this appropriation in fiscal years 2020 
220.25 	and 2021 is reduced by $200,000 each year; 
220.26 	and
220.27 	(3) the Data Practices Office is reduced by 
220.28 	$525,000.

220.29
220.30	Sec. 8. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	129,094
	$
	4,090,000
	
220.31 	(a) $4,000,000 is from the amounts transferred 
220.32 	to the general fund from the stadium reserve 
221.1 	account under section 18, to establish an office 
221.2 	to investigate allegations of harassment, 
221.3 	misconduct, and discrimination, as provided 
221.4 	in Minnesota Statutes, section 43A.385. Of 
221.5 	these amounts:
221.6 	(1) $2,591,000 is to establish the office, to 
221.7 	review and investigate claims, and to maintain, 
221.8 	analyze, and report data as required by 
221.9 	Minnesota Statutes, section 43A.385, 
221.10 	subdivisions 1 and 2;
221.11 	(2) $255,000 is a onetime appropriation to 
221.12 	administer and evaluate an employee 
221.13 	community survey as required by Minnesota 
221.14 	Statutes, section 43A.385, subdivision 3;
221.15 	(3) $26,000 is to study, develop, and maintain 
221.16 	a complaint hotline, as provided by Minnesota 
221.17 	Statutes, section 43A.385, subdivision 4;
221.18 	(4) $316,000 is a onetime appropriation to 
221.19 	establish an audit process to review policies, 
221.20 	procedures, and outcomes enterprise-wide, as 
221.21 	provided by Minnesota Statutes, section 
221.22 	43A.385, subdivision 5; and
221.23 	(5) $812,000 is to provide training on 
221.24 	harassment, misconduct, and discrimination 
221.25 	policy, as provided by Minnesota Statutes, 
221.26 	section 43A.385, subdivision 6.
221.27 	No later than February 15, 2019, the 
221.28 	commissioner of management and budget must 
221.29 	submit a report to the chairs and ranking 
221.30 	minority members of the legislative 
221.31 	committees with jurisdiction over state 
221.32 	government finance on the reduced human 
221.33 	resources workload and other cost savings 
221.34 	realized by individual agencies due to the 
222.1 	consolidation of these activities in a single 
222.2 	office.
222.3 	The base for this appropriation is $3,429,000 
222.4 	in fiscal year 2020 and thereafter.
222.5 	(b) $140,000 is from the general fund for 
222.6 	grants to reimburse the documented litigation 
222.7 	costs incurred by counties in defending the 
222.8 	constitutionality of Minnesota Statutes, section 
222.9 	6.481, as enacted in Laws 2015, chapter 77, 
222.10 	article 2, section 3, in Otto v. Wright County, 
222.11 	et. al. (A16-1634). The grants must be 
222.12 	apportioned as follows:
222.13 	(1) up to $70,000 is for a grant to Wright 
222.14 	County; and
222.15 	(2) up to $70,000 is for a grant to Becker 
222.16 	County.
222.17 	This is a onetime appropriation. The 
222.18 	commissioner must provide each grant upon 
222.19 	certification of the final litigation costs 
222.20 	incurred by the affected county, provided that 
222.21 	the total grant must not exceed the amounts 
222.22 	specified in this paragraph.
222.23 	(c) Notwithstanding any provision of law to 
222.24 	the contrary, $129,094 in fiscal year 2018 is 
222.25 	from the general fund for a payment to the city 
222.26 	of Austin, for both its 2016 fire state aid 
222.27 	payment under Minnesota Statutes, section 
222.28 	69.021, subdivision 7, and its 2016 
222.29 	supplemental state aid payment under 
222.30 	Minnesota Statutes, section 423A.022, upon 
222.31 	certification by the city that the sum of the fire 
222.32 	state aid and the supplemental state aid that 
222.33 	the city transmitted to the Austin Parttime 
222.34 	Firefighters Relief Association in calendar 
223.1 	year 2015 to fund the volunteers firefighters' 
223.2 	service pensions met or exceeded the amount 
223.3 	required under the bylaws of that association. 
223.4 	Of these amounts:
223.5 	(1) $103,892 is for the fire state aid; and
223.6 	(2) $25,202 is for the supplemental state aid.
223.7 	This is a onetime appropriation. The payment 
223.8 	required by this paragraph must be provided 
223.9 	no later than June 30, 2018.
223.10 	(d) The department's fiscal year 2019 
223.11 	appropriation includes a reduction of $50,000 
223.12 	resulting from the transfer of the 
223.13 	Pew-MacArthur Results First framework 
223.14 	responsibilities to the legislature. The 
223.15 	department's base for fiscal years 2020 and 
223.16 	2021 is reduced by $122,000 each year to 
223.17 	reflect this transfer.
223.18 	(e) No later than December 31, 2018, the 
223.19 	commissioner must credit at least $500,000 
223.20 	to the general fund based on savings realized 
223.21 	through implementation of the employee 
223.22 	gainsharing program required by Minnesota 
223.23 	Statutes, section 16A.90. If a credit of at least 
223.24 	this amount has not been made to the general 
223.25 	fund as of that date, the appropriation provided 
223.26 	in this subdivision for fiscal year 2019 is 
223.27 	reduced in an amount equal to the difference 
223.28 	between the amount actually credited to the 
223.29 	general fund and the total credit required by 
223.30 	this paragraph.

223.31	Sec. 9. REVENUE
 	$
	.......
	$
	(3,880,000)
	
224.1 	(a) These amounts include a general reduction 
224.2 	to agency operations, subject to the 
224.3 	requirements of section 16, of $3,895,000.
224.4 	(b) $15,000 is from the general fund for 
224.5 	preparing and submitting a supplemental 2018 
224.6 	tax incidence report meeting the requirements 
224.7 	of Minnesota Statutes, section 270C.13, 
224.8 	subdivision 1, as amended in article 14, section 
224.9 	60. This is a onetime appropriation. The 
224.10 	supplemental report must be completed and 
224.11 	submitted no later than January 2, 2019.

224.12	Sec. 10. HUMAN RIGHTS
 	$
	.......
	$
	(1,409,000)
	
224.13 	These amounts may not be used to reduce the 
224.14 	operations or services of the department's 
224.15 	regional office in St. Cloud.

224.16
224.17	Sec. 11. MINNESOTA HISTORICAL 
SOCIETY
 	$
	.......
	$
	1,000,000
	
224.18 	These amounts are from the general fund, for 
224.19 	digital preservation and access, including 
224.20 	planning and implementation of a program to 
224.21 	preserve and make available resources related 
224.22 	to Minnesota history. This is a onetime 
224.23 	appropriation.

224.24	Sec. 12. MINNESOTA HUMANITIES CENTER
 	$
	.......
	$
	710,000
	
224.25 	(a) $210,000 is from the general fund for the 
224.26 	Healthy Eating, Here at Home program under 
224.27 	Minnesota Statutes, section 138.912. This is 
224.28 	a onetime appropriation. No more than three 
224.29 	percent of the appropriation may be used for 
224.30 	the nonprofit administration of this program.
224.31 	(b) $250,000 is from the general fund for a 
224.32 	grant to Everybody Wins!-Minnesota, a 
225.1 	Minnesota 501(c)(3) corporation, to operate 
225.2 	a reading program for Minnesota children. 
225.3 	This is a onetime appropriation.
225.4 	(c) $250,000 is from the general fund for a 
225.5 	grant to the Minnesota Council on Economic 
225.6 	Education to provide staff development to 
225.7 	teachers for the implementation of the state 
225.8 	graduation standards in learning areas relating 
225.9 	to economic education. This is a onetime 
225.10 	appropriation and does not cancel, but is 
225.11 	available until expended. The commissioner 
225.12 	of education, in consultation with the council, 
225.13 	shall develop expected results of staff 
225.14 	development, eligibility criteria for 
225.15 	participants, an evaluation procedure, and 
225.16 	guidelines for direct and in-kind contributions 
225.17 	by the council.

225.18
225.19	Sec. 13. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	.......
	$
	(518,000)
	
225.20 	This is a general reduction to board operations, 
225.21 	subject to the requirements of section 16.

225.22	Sec. 14. VETERANS AFFAIRS
 	$
	.......
	$
	26,000,000
	
225.23 	(a) $26,000,000 in fiscal year 2019 is from the 
225.24 	amounts transferred to the general fund from 
225.25 	the stadium reserve account under section 18, 
225.26 	for the following:
225.27 	(1) $10,000,000 is to design, construct, 
225.28 	furnish, and equip a veterans home in Preston;
225.29 	(2) $6,000,000 is to design, construct, furnish, 
225.30 	and equip a veterans home in Montevideo; 
225.31 	and
225.32 	(3) $10,000,000 is to design, construct, 
225.33 	furnish, and equip a veterans home in Bemidji.
226.1 	(b) These veterans homes are subject to the 
226.2 	requirements of The People's Veterans Homes 
226.3 	Act, as provided in article 14, section 84. This 
226.4 	is a onetime appropriation, and is available 
226.5 	until June 30, 2021. The appropriations are 
226.6 	not available until the commissioner of 
226.7 	management and budget, in consultation with 
226.8 	the commissioner of veterans affairs, 
226.9 	determines that amounts sufficient to complete 
226.10 	the projects are committed from nonstate 
226.11 	sources.

226.12 	Sec. 15. Laws 2017, chapter 2, article 1, section 7, as amended by Laws 2017, First Special 
226.13 	Session chapter 6, article 5, section 9, is amended to read:
226.14 	Sec. 7. APPROPRIATIONS.
 226.15 	(a) $311,788,000 in fiscal year 2017 is appropriated from the general fund to the 
226.16 	commissioner of management and budget for premium assistance under section 2. This 
226.17 	appropriation is onetime and is available through August 31, 2018.
226.18 	(b) $157,000 in fiscal year 2017 is appropriated from the general fund to the legislative 
226.19 	auditor for purposes of section 3. This appropriation is onetime.
226.20 	(c) $75,391,000 is canceled from the appropriation in paragraph (a) to the budget reserve 
226.21 	account under Minnesota Statutes, section 16A.152, subdivision 1a.
226.22 	(c) (d) Any remaining unexpended amount from the appropriation in paragraph (a) after 
226.23 	June 30, 2018, shall be transferred no later than August 31, 2018, from the general fund to 
226.24 	the budget reserve account under Minnesota Statutes, section 16A.152, subdivision 1a.

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

226.26 	Sec. 16. REDUCED APPROPRIATIONS; PRESERVATION OF PROGRAMS AND 
226.27 	SERVICES.
 226.28 	To the extent that appropriations provided by this article reflect reductions in amounts 
226.29 	appropriated under Laws 2017, First Special Session chapter 4, and the purpose for the 
226.30 	reduction is not otherwise specified, the affected constitutional office, agency, or board 
226.31 	must allocate the reduction across all program activities, prioritizing reductions to central 
227.1 	administration and general operations. Unless otherwise specified, reductions must not be 
227.2 	made to programs or services that are provided directly to members of the public.

227.3 	Sec. 17. EXECUTIVE AGENCY APPROPRIATIONS; MNLARS TARGETED 
227.4 	REDUCTIONS.
 227.5 	(a) By October 31, 2018, the commissioner of management and budget must, with the 
227.6 	approval of the governor and after consulting the Legislative Advisory Commission, reduce 
227.7 	general fund appropriations for executive agency operating expenditures by $9,650,000 for 
227.8 	the biennium ending June 30, 2019. This is a onetime reduction. In making reductions, the 
227.9 	commissioner must prioritize reductions to any increased central operating or administrative 
227.10 	expenses within an agency that resulted from the enactment of operating adjustments for 
227.11 	that agency for the biennium ending June 30, 2019, compared to appropriations enacted for 
227.12 	the agency for the biennium ending June 30, 2017. The commissioner must not reduce 
227.13 	appropriations for client-facing health care, corrections, public safety, mental health 
227.14 	programs, or other services that are provided directly to members of the public.
227.15 	(b) By June 30, 2018, the commissioner of management and budget must transfer 
227.16 	$7,500,000 from the general fund to the driver services operating account in the special 
227.17 	revenue fund, or its successor fund, and $2,150,000 to the vehicle services operating account 
227.18 	in the special revenue fund, or its successor fund.
227.19 	(c) For purposes of this subdivision, "executive agency" has the meaning given in 
227.20 	Minnesota Statutes, section 16A.011, subdivision 12, and includes constitutional officers.

227.21 	Sec. 18. MINNESOTA SPORTS FACILITIES AUTHORITY; STADIUM RESERVE 
227.22 	TRANSFER.
 227.23 	$30,817,000 must be transferred to the unrestricted general fund from the general reserve 
227.24 	account established by the commissioner of management and budget under Minnesota 
227.25 	Statutes, section 297E.021, no later than June 30, 2019. This is a onetime transfer.

227.26 	Sec. 19. MN.IT PRIORITIZATION OF CYBERSECURITY.
 227.27 	The state chief information officer must prioritize the enhancement of cybersecurity 
227.28 	across state government when expending any appropriations or fund transfers provided to 
227.29 	the Office of MN.IT Services, including but not limited to those provided by Laws 2017, 
227.30 	First Special Session chapter 4, article 1, section 10, and amounts credited to the information 
227.31 	and telecommunications technology systems and services account established under 
227.32 	Minnesota Statutes, section 16E.21.

228.1 	Sec. 20. EFFECTIVE DATE.
 228.2 	This article is effective the day following final enactment.

228.3 	ARTICLE 14
228.4 	STATE GOVERNMENT OPERATIONS

228.5 	Section 1. Minnesota Statutes 2016, section 1.26, subdivision 1, is amended to read:
228.6 		Subdivision 1.Political subdivision defined Definitions. As used in this section,:
228.7 	(1) "declared emergency" has the meaning given in section 12.03, subdivision 1e; and
228.8 	(2) "political subdivision" includes counties, home rule charter and statutory cities, 
228.9 	towns, townships, school districts, authorities, and other public corporations and entities 
228.10 	whether organized and existing under charter or general law.

228.11 	Sec. 2. Minnesota Statutes 2016, section 1.26, subdivision 2, is amended to read:
228.12 		Subd. 2.State government. When, due to an emergency resulting from the effects of 
228.13 	enemy attack, or the anticipated effects of a threatened enemy attack a declared emergency, 
228.14 	it becomes imprudent, inexpedient, or impossible to conduct the affairs of state government 
228.15 	in the city of St. Paul, Ramsey County, Minnesota, the governor shall, as often as the 
228.16 	exigencies of the situation require, by proclamation, declare an emergency temporary 
228.17 	location, or locations, for the seat of government at a place, or places, in or out of the state 
228.18 	as the governor deems advisable under the circumstances, and shall take action and issue 
228.19 	orders as necessary for an orderly transition of the affairs of state government to the 
228.20 	emergency temporary location, or locations. To the extent practical, the governor's orders 
228.21 	must be consistent with the state comprehensive emergency operations plan required by 
228.22 	section 12.21, subdivision 3. The emergency temporary location, or locations, shall remain 
228.23 	the seat of government until the legislature by law establishes a new location, or locations, 
228.24 	or until the emergency is declared to be ended by the governor and the seat of government 
228.25 	is returned to its normal location.

228.26 	Sec. 3. [2.92] DISTRICTING PRINCIPLES.
228.27 		Subdivision 1.Applicability. The principles in this section apply to legislative and 
228.28 	congressional districts.
228.29 		Subd. 2.Nesting. A representative district may not be divided in the formation of a 
228.30 	senate district.
229.1 		Subd. 3.Equal population. (a) Legislative districts must be substantially equal in 
229.2 	population. The population of a legislative district must not deviate from the ideal by more 
229.3 	than 0.5 percent, plus or minus.
229.4 	(b) Congressional districts must be as nearly equal in population as practicable.
229.5 		Subd. 4.Contiguity; compactness. The districts must be composed of convenient 
229.6 	contiguous territory. To the extent consistent with the other principles in this section, districts 
229.7 	should be compact. Contiguity by water is sufficient if the water is not a serious obstacle 
229.8 	to travel within the district. Point contiguity is not sufficient.
229.9 		Subd. 5.Numbering. (a) Legislative districts must be numbered in a regular series, 
229.10 	beginning with house district 1A in the northwest corner of the state and proceeding across 
229.11 	the state from west to east, north to south, but bypassing the 11-county metropolitan area 
229.12 	until the southeast corner has been reached; then to the 11-county metropolitan area. In a 
229.13 	county that includes more than one whole senate district, the districts must be numbered 
229.14 	consecutively.
229.15 	(b) Congressional district numbers must begin with district one in the southeast corner 
229.16 	of the state and end with district eight in the northeast corner of the state.
229.17 		Subd. 6.Minority representation. (a) The dilution of racial or ethnic minority voting 
229.18 	strength is contrary to the laws of the United States and the state of Minnesota. These 
229.19 	principles must not be construed to supersede any provision of the Voting Rights Act of 
229.20 	1965, as amended.
229.21 	(b) A redistricting plan must not have the intent or effect of dispersing or concentrating 
229.22 	minority population in a manner that prevents minority communities from electing their 
229.23 	candidates of choice.
229.24 		Subd. 7.Minor civil divisions.  (a) A county, city, or town must not be unduly divided 
229.25 	unless required to meet equal population requirements or to form districts composed of 
229.26 	convenient, contiguous territory.
229.27 	(b) A county, city, or town is not unduly divided in the formation of a legislative or 
229.28 	congressional district if:
229.29 	(1) the division occurs because a portion of a city or town is noncontiguous with another 
229.30 	portion of the same city or town; or
229.31 	(2) despite the division, the known population of any affected county, city, or town 
229.32 	remains wholly located within a single district.
230.1 		Subd. 8.Preserving communities of interest. (a) Districts should attempt to preserve 
230.2 	identifiable communities of interest where that can be done in compliance with the principles 
230.3 	under this section.
230.4 	(b) For purposes of this subdivision, "communities of interest" means recognizable areas 
230.5 	with similarities of interests including but not limited to racial, ethnic, geographic, social, 
230.6 	or cultural interests.
230.7 		Subd. 9.Data to be used. (a) The geographic areas and population counts used in maps, 
230.8 	tables, and legal descriptions of the districts must be those used by the Geographic 
230.9 	Information Systems Office of the Legislative Coordinating Commission. The population 
230.10 	counts shall be the block population counts provided to the state under Public Law 94-171 
230.11 	after each decennial census, subject to correction of any errors acknowledged by the United 
230.12 	States Census Bureau.
230.13 	(b) Nothing in this subdivision prohibits the use of additional data, as determined by the 
230.14 	legislature.
230.15 		Subd. 10.Consideration of plans. A redistricting plan must not be considered for 
230.16 	adoption by the senate or house of representatives until a block equivalency file showing 
230.17 	the district to which each census block has been assigned, in a form prescribed by the director 
230.18 	of the Geographic Information Systems Office, has been filed with the director.
230.19 		Subd. 11.Priority of principles.  Where it is not possible to fully comply with the 
230.20 	principles contained in subdivisions 2 to 8, a redistricting plan must give priority to those 
230.21 	principles in the order in which they are listed, except to the extent that doing so would 
230.22 	violate federal or state law.

230.23 	EFFECTIVE DATE.  This section is effective the day following final enactment and 
230.24 	applies to any plan for districts enacted or established for use on or after that date.

230.25 	Sec. 4. Minnesota Statutes 2016, section 3.303, is amended by adding a subdivision to 
230.26 	read:
230.27 		Subd. 12.Emergency operations and continuity of the legislative branch. The 
230.28 	commission must adopt and regularly review an emergency operations and continuity of 
230.29 	government plan for the legislative branch, as required by section 12.401.

230.30 	Sec. 5. Minnesota Statutes 2016, section 3.8841, subdivision 9, is amended to read:
230.31 		Subd. 9.Powers; duties; Metropolitan Council appointments oversight. The 
230.32 	commission must monitor appointments to the Metropolitan Council and may make 
231.1 	recommendations on appointments to the nominating committee under section 473.123, 
231.2 	subdivision 3, or to the governor before the governor makes the appointments. The 
231.3 	commission may also make recommendations to the senate before appointments are presented 
231.4 	to the senate for its advice and consent.

231.5 	Sec. 6. Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 1, is amended 
231.6 	to read:
231.7 		Subdivision 1.Establishment; duties. The Legislative Budget Office is established 
231.8 	under control of the Legislative Coordinating Commission to provide the house of 
231.9 	representatives and senate with nonpartisan, accurate, and timely information on the fiscal 
231.10 	impact of proposed legislation, without regard to political factors.

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

231.12 	Sec. 7. Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 1, is amended 
231.13 	to read:
231.14 		Subdivision 1.Establishment; duties. The Legislative Budget Office is established 
231.15 	under control of the Legislative Coordinating Commission to provide the house of 
231.16 	representatives and senate with nonpartisan, accurate, and timely information on the fiscal 
231.17 	impact of proposed legislation, and to evaluate the effectiveness of state and county programs 
231.18 	authorized by the legislature using the return on taxpayer investment methodology established 
231.19 	by the Pew-MacArthur Results First framework. The duties of the office must be conducted 
231.20 	without regard to political factors.

231.21 	EFFECTIVE DATE. This section is effective January 8, 2019.

231.22 	Sec. 8. Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a 
231.23 	subdivision to read:
231.24 		Subd. 1a.Oversight commission. (a) The Legislative Budget Office Oversight 
231.25 	Commission is established. The commission consists of:
231.26 	(1) two members of the senate appointed by the Subcommittee on Committees of the 
231.27 	Committee on Rules and Administration;
231.28 	(2) two members of the senate appointed by the senate minority leader;
231.29 	(3) two members of the house of representatives appointed by the speaker of the house; 
231.30 	and
231.31 	(4) two members of the house of representatives appointed by the minority leader.
232.1 	The director of the Legislative Budget Office is the executive secretary of the commission. 
232.2 	The chief nonpartisan fiscal analyst of the house of representatives, the lead nonpartisan 
232.3 	fiscal analyst of the senate, the state budget director, and the legislative auditor are ex-officio, 
232.4 	nonvoting members of the commission.
232.5 	(b) Members serve at the pleasure of the appointing authority, or until they are not 
232.6 	members of the legislative body from which they were appointed. Appointing authorities 
232.7 	shall fill vacancies on the commission within 30 days of a vacancy being created.
232.8 	(c) The commission shall meet in January of each odd-numbered year to elect its chair 
232.9 	and vice-chair. They shall serve until successors are elected. The chair and vice-chair shall 
232.10 	alternate biennially between the senate and the house of representatives. The commission 
232.11 	shall meet at the call of the chair. The members shall serve without compensation but may 
232.12 	be reimbursed for their reasonable expenses consistent with the rules of the legislature 
232.13 	governing expense reimbursement.
232.14 	(d) The commission shall review the work of the Legislative Budget Office and make 
232.15 	recommendations, as the commission determines necessary, to improve the office's ability 
232.16 	to fulfill its duties, and shall perform other functions as directed by this section.

232.17 	EFFECTIVE DATE; FIRST MEETING. This section is effective the day following 
232.18 	final enactment. Appointments to the oversight commission must be made no later than 
232.19 	June 15, 2018. The chair of the Legislative Coordinating Commission must designate one 
232.20 	appointee to convene the commission's first meeting. The designated appointee must convene 
232.21 	the first meeting no later than July 1, 2018.

232.22 	Sec. 9. Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 2, is amended 
232.23 	to read:
232.24 		Subd. 2.Staff. The Legislative Coordinating Commission Legislative Budget Office 
232.25 	Oversight Commission must appoint a director whoand establish the director's duties. The 
232.26 	director may hire staff necessary to do the work of the office. The director serves in the 
232.27 	unclassified service for a term of six years and may not be removed during a term except 
232.28 	for cause after a public hearing. The director of the office is a public official for purposes 
232.29 	of sections 10A.07 to 10A.09.

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

233.1 	Sec. 10. Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a 
233.2 	subdivision to read:
233.3 		Subd. 3.Standards and guidelines. The Legislative Budget Office must adopt uniform 
233.4 	standards, guidelines, and procedures governing the timely preparation of fiscal notes as 
233.5 	required by this section and section 3.98. The standards, guidelines, and procedures are not 
233.6 	effective until they are approved by the oversight commission. Upon approval, the standards 
233.7 	and guidelines must be published in the State Register and on the office's Web site.

233.8 	EFFECTIVE DATE. This section is effective January 8, 2019, provided that the uniform 
233.9 	procedures to be used may be developed and adopted by the oversight commission prior to 
233.10 	the effective date of this section.

233.11 	Sec. 11. Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a 
233.12 	subdivision to read:
233.13 		Subd. 4.Access to data. (a) Upon request of the director of the Legislative Budget 
233.14 	Office, the head or chief administrative officer of each department or agency of state 
233.15 	government, including the Supreme Court, must promptly supply any data that, in the 
233.16 	director's judgment, is relevant to legislation that is the subject of a fiscal note prepared by 
233.17 	the department or agency.
233.18 	(b) To the extent that data supplied to the Legislative Budget Office are classified as not 
233.19 	public under chapter 13 or other applicable law, the Legislative Budget Office must maintain 
233.20 	and administer the data in the same manner as required of a government entity subject to 
233.21 	that classification. Not public data supplied under this subdivision may only be used by the 
233.22 	Legislative Budget Office to review a department or agency's work in preparing a fiscal 
233.23 	note and may not be used or disseminated for any other purpose, including use by or 
233.24 	dissemination to a legislator or to any officer, department, agency, or committee within the 
233.25 	legislative branch. A violation of this paragraph by the director or other staff of the 
233.26 	Legislative Budget Office is subject to the penalties and remedies provided in sections 13.08 
233.27 	and 13.09, and any other applicable law governing the unauthorized use or acquisition of 
233.28 	not public data.
233.29 	(c) Upon approval by the Legislative Budget Office, a completed fiscal note must be 
233.30 	delivered to the legislative committee chair who made the request, and to the chief author 
233.31 	of the legislation to which it relates. Within 24 hours of approval, a completed fiscal note 
233.32 	must be posted on the office's public Web site, unless data maintained by a government 
233.33 	entity related to the fiscal note are classified as not public under section 13.64, subdivision 
233.34 	3.

234.1 	EFFECTIVE DATE. This section is effective January 8, 2019.

234.2 	Sec. 12. Minnesota Statutes 2017 Supplement, section 3.98, subdivision 1, is amended to 
234.3 	read:
234.4 		Subdivision 1.Preparation; duties. (a) The head or chief administrative officer of each 
234.5 	department or agency of the state government, including the Supreme Court, shall cooperate, 
234.6 	in consultation with the Legislative Budget Office and the Legislative Budget Office must
234.7 	and consistent with the standards, guidelines, and procedures adopted under section 3.8853,
234.8 	prepare a fiscal note at the request of the chair of the standing committee to which a bill 
234.9 	has been referred, or the chair of the house of representatives Ways and Means Committee, 
234.10 	or the chair of the senate Committee on Finance.
234.11 	(b) Upon request of the Legislative Budget Office, the head or chief administrative 
234.12 	officer of each department or agency of state government, including the Supreme Court, 
234.13 	must promptly supply all information necessary for the Legislative Budget Office to prepare 
234.14 	an accurate and timely fiscal note.
234.15 	(c) The Legislative Budget Office may adopt standards and guidelines governing timing 
234.16 	of responses to requests for information and governing access to data, consistent with laws 
234.17 	governing access to data. Agencies must comply with these standards and guidelines and 
234.18 	the Legislative Budget Office must publish them on the office's Web site.
234.19 	(d) (b) For purposes of this subdivision, "Supreme Court" includes all agencies, 
234.20 	committees, and commissions supervised or appointed by the state Supreme Court or the 
234.21 	state court administrator.

234.22 	EFFECTIVE DATE. This section is effective January 8, 2019.

234.23 	Sec. 13. [4.074] PAYMENTS FROM EXECUTIVE AGENCIES.
234.24 	The Office of the Governor may not receive payments to the governor's office account 
234.25 	in the special revenue fund of more than $750,000, in total, each fiscal year from other 
234.26 	executive agencies under section 15.53 to support costs, not including the residence 
234.27 	groundskeeper, incurred by the office.

234.28 	Sec. 14. [5.42] DISPLAY OF BUSINESS ADDRESS ON WEB SITE.
234.29 	(a) A business entity may request in writing that all addresses submitted by the business 
234.30 	entity to the secretary of state be omitted from display on the secretary of state's Web site. 
235.1 	A business entity may only request that all addresses be omitted from display if the entity 
235.2 	certifies that:
235.3 	(1) there is only one shareholder, member, manager, or owner of the business entity;
235.4 	(2) the shareholder, manager, member, or owner is a natural person; and
235.5 	(3) at least one of the addresses provided is the residential address of the sole shareholder, 
235.6 	manager, member, or owner.
235.7 	The secretary of state shall post a notice that this option is available and a link to the form 
235.8 	needed to make a request on the secretary's Web site. The secretary of state shall also attach 
235.9 	a copy of the request form to all business filing forms provided in a paper format that require 
235.10 	a business entity to submit an address.
235.11 	(b) This section does not change the classification of data under chapter 13 and addresses 
235.12 	shall be made available to the public in response to requests made by telephone, mail, 
235.13 	electronic mail, and facsimile transmission.

235.14 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to business 
235.15 	entity filings filed with the secretary of state on or after that date.

235.16 	Sec. 15. Minnesota Statutes 2017 Supplement, section 6.481, subdivision 3, is amended 
235.17 	to read:
235.18 		Subd. 3.CPA firm audit. (a) A county audit performed by a CPA firm must meet the 
235.19 	standards and be in a form meeting recognized industry auditing standards. The state auditor 
235.20 	may require additional information from the CPA firm if the state auditor determines that 
235.21 	is in the public interest, but the state auditor must accept the audit unless the state auditor 
235.22 	determines the audit or its form does not meet recognized industry auditing standards. The 
235.23 	state auditor may make additional examinations as the auditor determines to be in the public 
235.24 	interest.
235.25 	(b) When the state auditor requires additional information from the CPA firm or makes 
235.26 	additional examinations that the state auditor determines to be in the public interest, the 
235.27 	state auditor must afford counties and CPA firms an opportunity to respond to potential 
235.28 	findings, conclusions, or questions, as follows:
235.29 	(1) at least 30 days before beginning a review for work performed by a certified public 
235.30 	accountant firm licensed in chapter 326A, the state auditor must notify the county and CPA 
235.31 	firm that the state auditor will be conducting a review and must identify the type and scope 
235.32 	of review the state auditor will perform;
236.1 	(2) throughout the state auditor's review, the auditor shall allow the county and the CPA 
236.2 	firm at least 30 days to respond to any request by the auditor for documents or other 
236.3 	information;
236.4 	(3) the state auditor must provide the CPA firm with a draft report of the state auditor's 
236.5 	findings at least 30 days before issuing a final report;
236.6 	(4) at least 20 days before issuing a final report, the state auditor must hold a formal exit 
236.7 	conference with the CPA firm to discuss the findings in the state auditor's draft report;
236.8 	(5) the state auditor shall make changes to the draft report that are warranted as a result 
236.9 	of information provided by the CPA firm during the state auditor's review; and
236.10 	(6) the state auditor's final report must include any written responses provided by the 
236.11 	CPA firm.

236.12 	Sec. 16. Minnesota Statutes 2016, section 8.065, is amended to read:
236.13 	8.065 PRIVATE ATTORNEY CONTRACTS.
236.14 		Subdivision 1.Contracts for legal services in excess of $1,000,000. The attorney 
236.15 	general may not enter into a contract for legal services in which the fees and expenses paid 
236.16 	by the state exceed, or can reasonably be expected to exceed, $1,000,000 unless the attorney 
236.17 	general first submits the proposed contract to the Legislative Advisory Commission, and 
236.18 	waits at least 20 days to receive a possible recommendation from the commission.
236.19 		Subd. 2.Contingent fee contracts. (a) Except as provided in paragraph (b), the attorney 
236.20 	general may not contract for legal services on a contingent fee basis.
236.21 	(b) Paragraph (a) does not apply to contracts for legal services on behalf of the 
236.22 	Department of Human Services for Medicaid third-party liability or false claims recoveries. 
236.23 	Contracts for these services may not exceed two years, but may be extended by amendment, 
236.24 	if necessary to continue representation in an active case referred during the original two-year 
236.25 	contract term. These contracts are subject to the competitive proposal requirements for 
236.26 	professional and technical services contracts provided in section 16C.08. No later than 
236.27 	January 15 of each year, the attorney general and the commissioner of human services must 
236.28 	jointly submit a report to the chairs and ranking minority members of the legislative 
236.29 	committees with jurisdiction over state government finance that includes a copy of the 
236.30 	contract for legal services, and details on:
236.31 	(1) the number of claims for recovery filed by attorneys providing services on a contingent 
236.32 	fee basis;
237.1 	(2) the number of recovery claims that were successful, including the amounts recovered 
237.2 	in each successful claim; and
237.3 	(3) the total amount of attorney fees due or paid following each successful claim.

237.4 	EFFECTIVE DATE. This section is effective the day following final enactment and 
237.5 	applies to contracts entered into on or after that date. Subdivision 2, paragraph (b), applies 
237.6 	to legal services for claims filed on or after August 1, 2018.

237.7 	Sec. 17. Minnesota Statutes 2016, section 10A.01, subdivision 35, is amended to read:
237.8 		Subd. 35.Public official. "Public official" means any:
237.9 	(1) member of the legislature;
237.10 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
237.11 	director of the Legislative Budget Office, chief clerk of the house of representatives, revisor 
237.12 	of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of 
237.13 	Senate Counsel, Research, and Fiscal Analysis, House Research, or the House Fiscal Analysis 
237.14 	Department;
237.15 	(3) constitutional officer in the executive branch and the officer's chief administrative 
237.16 	deputy;
237.17 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
237.18 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
237.19 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
237.20 	officer;
237.21 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
237.22 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
237.23 	14, or the power to adjudicate contested cases or appeals under chapter 14;
237.24 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
237.25 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
237.26 	(8) executive director of the State Board of Investment;
237.27 	(9) deputy of any official listed in clauses (7) and (8);
237.28 	(10) judge of the Workers' Compensation Court of Appeals;
237.29 	(11) administrative law judge or compensation judge in the State Office of Administrative 
237.30 	Hearings or unemployment law judge in the Department of Employment and Economic 
237.31 	Development;
238.1 	(12) member, regional administrator, division director, general counsel, or operations 
238.2 	manager of the Metropolitan Council;
238.3 	(13) member or chief administrator of a metropolitan agency;
238.4 	(14) director of the Division of Alcohol and Gambling Enforcement in the Department 
238.5 	of Public Safety;
238.6 	(15) member or executive director of the Higher Education Facilities Authority;
238.7 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
238.8 	(17) member of the board of directors or executive director of the Minnesota State High 
238.9 	School League;
238.10 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
238.11 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
238.12 	(20) manager of a watershed district, or member of a watershed management organization 
238.13 	as defined under section 103B.205, subdivision 13;
238.14 	(21) supervisor of a soil and water conservation district;
238.15 	(22) director of Explore Minnesota Tourism;
238.16 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 
238.17 	97A.056;
238.18 	(24) citizen member of the Clean Water Council established in section 114D.30;
238.19 	(25) member or chief executive of the Minnesota Sports Facilities Authority established 
238.20 	in section 473J.07;
238.21 	(26) district court judge, appeals court judge, or Supreme Court justice;
238.22 	(27) county commissioner;
238.23 	(28) member of the Greater Minnesota Regional Parks and Trails Commission; or
238.24 	(29) member of the Destination Medical Center Corporation established in section 
238.25 	469.41.

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

238.27 	Sec. 18. Minnesota Statutes 2016, section 10A.02, subdivision 7, is amended to read:
238.28 		Subd. 7.Political activity. All members and employees of the board are subject to any 
238.29 	provisions of law regulating political activity by state employees. In addition, no member 
239.1 	or employee of the board may be a candidate for, or holder of, (1) a national, state, 
239.2 	congressional district, legislative district, county, or precinct office in a political party, or 
239.3 	(2) an elected public office for which party designation is required by statute. For purposes 
239.4 	of this subdivision, "employee of the board" includes any board employee and any employee 
239.5 	of the Office of MN.IT Services assigned to provide information technology services to the 
239.6 	board.

239.7 	Sec. 19. Minnesota Statutes 2016, section 12.09, subdivision 2, is amended to read:
239.8 		Subd. 2.State emergency plan. The division shall develop and maintain a comprehensive 
239.9 	state emergency operations plan and emergency management program in accord with section 
239.10 	12.21, subdivision 3, clause (2) paragraph (b), and ensure that other state emergency plans 
239.11 	that may be developed are coordinated and consistent with the comprehensive state 
239.12 	emergency operations plan. The director of the division must provide assistance to the 
239.13 	legislative branch, the judicial branch, and the executive council in developing the plans 
239.14 	required by sections 12.401, 12.402, and 12.403.

239.15 	Sec. 20. Minnesota Statutes 2016, section 12.21, subdivision 3, is amended to read:
239.16 		Subd. 3.Specific authority. (a) In performing duties under this chapter and to effect its 
239.17 	policy and purpose, the governor may:
239.18 	(1) make, amend, and rescind the necessary orders and rules to carry out the provisions 
239.19 	of this chapter and section 216C.15 within the limits of the authority conferred by this 
239.20 	section, with due consideration of the plans of the federal government and without complying 
239.21 	with sections 14.001 to 14.69, but no order or rule has the effect of law except as provided 
239.22 	by section 12.32;
239.23 	(2) ensure that a comprehensive emergency operations plan and emergency management 
239.24 	program for this state are developed and maintained, and are integrated into and coordinated 
239.25 	with the emergency plans of the federal government and of other states to the fullest possible 
239.26 	extent;
239.27 	(3) (2) in accordance with the emergency operations plan and the emergency management 
239.28 	program of this state, procure supplies, equipment, and facilities; institute training programs 
239.29 	and public information programs; and take all other preparatory steps, including the partial 
239.30 	or full activation of emergency management organizations in advance of actual disaster to 
239.31 	ensure the furnishing of adequately trained and equipped forces of emergency management 
239.32 	personnel in time of need;
240.1 	(4) (3) make studies and surveys of the industries, resources, and facilities in this state 
240.2 	as may be necessary to ascertain the capabilities of the state for emergency management 
240.3 	and to plan for the most efficient emergency use of those industries, resources, and facilities;
240.4 	(5) (4) on behalf of this state, enter into mutual aid arrangements or cooperative 
240.5 	agreements with other states, tribal authorities, and Canadian provinces, and coordinate 
240.6 	mutual aid plans between political subdivisions of this state;
240.7 	(6) (5) delegate administrative authority vested in the governor under this chapter, except 
240.8 	the power to make rules, and provide for the subdelegation of that authority;
240.9 	(7) (6) cooperate with the president and the heads of the armed forces, the Emergency 
240.10 	Management Agency of the United States and other appropriate federal officers and agencies, 
240.11 	and with the officers and agencies of other states in matters pertaining to the emergency 
240.12 	management of the state and nation, including the direction or control of:
240.13 	(i) emergency preparedness drills and exercises;
240.14 	(ii) warnings and signals for drills or actual emergencies and the mechanical devices to 
240.15 	be used in connection with them;
240.16 	(iii) shutting off water mains, gas mains, electric power connections and the suspension 
240.17 	of all other utility services;
240.18 	(iv) the conduct of persons in the state, including entrance or exit from any stricken or 
240.19 	threatened public place, occupancy of facilities, and the movement and cessation of 
240.20 	movement of pedestrians, vehicular traffic, and all forms of private and public transportation 
240.21 	during, prior, and subsequent to drills or actual emergencies;
240.22 	(v) public meetings or gatherings; and
240.23 	(vi) the evacuation, reception, and sheltering of persons;
240.24 	(8) (7) contribute to a political subdivision, within the limits of the appropriation for 
240.25 	that purpose, not more than 25 percent of the cost of acquiring organizational equipment 
240.26 	that meets standards established by the governor;
240.27 	(9) (8) formulate and execute, with the approval of the Executive Council, plans and 
240.28 	rules for the control of traffic in order to provide for the rapid and safe movement over 
240.29 	public highways and streets of troops, vehicles of a military nature, and materials for national 
240.30 	defense and war or for use in any war industry, for the conservation of critical materials, or 
240.31 	for emergency management purposes; and coordinate the activities of the departments or 
241.1 	agencies of the state and its political subdivisions concerned directly or indirectly with 
241.2 	public highways and streets, in a manner that will best effectuate those plans;
241.3 	(10) (9) alter or adjust by executive order, without complying with sections 14.01 to 
241.4 	14.69, the working hours, workdays and work week of, and annual and sick leave provisions 
241.5 	and payroll laws regarding all state employees in the executive branch as the governor 
241.6 	deems necessary to minimize the impact of the disaster or emergency, conforming the 
241.7 	alterations or adjustments to existing state laws, rules, and collective bargaining agreements 
241.8 	to the extent practicable;
241.9 	(11) (10) authorize the commissioner of education to alter school schedules, curtail 
241.10 	school activities, or order schools closed as defined in section 120A.05, subdivisions 9, 11, 
241.11 	13, and 17, and including charter schools under chapter 124E, and elementary schools 
241.12 	enrolling prekindergarten pupils in district programs; and
241.13 	(12) (11) transfer the direction, personnel, or functions of state agencies to perform or 
241.14 	facilitate response and recovery programs.
241.15 	(b) In performing duties under this chapter and to effect its policy and purpose, the 
241.16 	governor must direct the Division of Emergency Management to adopt and maintain a 
241.17 	comprehensive emergency operations plan and emergency management program for this 
241.18 	state that is integrated into and coordinated with the emergency plans of the federal 
241.19 	government and other states to the fullest possible extent. The comprehensive emergency 
241.20 	operations plan must incorporate plans for the secure, continued operation of state 
241.21 	government in the event of a disaster or emergency, including those adopted under sections 
241.22 	12.401, 12.402, and 12.403.

241.23 	Sec. 21. [12.401] EMERGENCY OPERATIONS AND CONTINUITY PLAN; 
241.24 	LEGISLATIVE BRANCH.
241.25 		Subdivision 1.Adoption of plan required. (a) The Legislative Coordinating Commission 
241.26 	must adopt and maintain an emergency operations and continuity of government plan to 
241.27 	ensure the secure, continued operation of the house of representatives, senate, and joint 
241.28 	legislative offices in the event of a disaster, emergency, or declared emergency. In developing 
241.29 	the plan, the commission must consult and cooperate with the state director of emergency 
241.30 	management to ensure the plan's compatibility with the comprehensive state emergency 
241.31 	operations plan and emergency management program. The commission must also consult 
241.32 	with the governor or the governor's designee, and the chief justice of the Supreme Court or 
241.33 	the chief justice's designee, to ensure the plan's compatibility with those adopted for the 
242.1 	judicial branch under section 12.402 and the executive council under section 12.403, to the 
242.2 	extent practical.
242.3 	(b) At a minimum, the commission's plan must address reasonably foreseeable effects 
242.4 	of a disaster, emergency, or declared emergency on the ability of the legislature to perform 
242.5 	its constitutional functions, including but not limited to the following:
242.6 	(1) identification of at least three suitable locations within the state at which the legislature 
242.7 	could conduct operations in the event of a disaster or declared emergency that makes the 
242.8 	State Capitol unsafe or inaccessible, with one location designated as a primary alternate 
242.9 	location and two designated as backup alternate locations if the primary location is unsafe 
242.10 	or inaccessible;
242.11 	(2) plans to provide timely and secure communications regarding a disaster, emergency, 
242.12 	or declared emergency to all affected members and personnel, including alternate methods 
242.13 	of communication if a primary method is unavailable;
242.14 	(3) plans to securely transport all members, designated personnel, and necessary 
242.15 	equipment and records to an alternate location and begin legislative operations at that location 
242.16 	in a timely manner;
242.17 	(4) plans to ensure reasonable public notice of the legislature's operations and access to 
242.18 	its proceedings in-person or by electronic, broadcast, or other means as the circumstances 
242.19 	of the emergency allow;
242.20 	(5) additional procedures, as necessary, to implement the requirements of subdivisions 
242.21 	2 and 3;
242.22 	(6) procedures for the orderly return of legislative operations to the State Capitol, as 
242.23 	soon as circumstances allow; and
242.24 	(7) policy decisions that address any other procedures or protocols recommended for 
242.25 	inclusion by the state director of emergency management.
242.26 	(c) The plan must be adopted and maintained by the Legislative Coordinating Commission 
242.27 	no later than January 30, 2019, and may be subsequently amended at any time. At a minimum, 
242.28 	the plan must be reviewed by the full commission and designated legislative staff no later 
242.29 	than January 30 of each odd-numbered year. A meeting of the commission may be closed 
242.30 	to the public for any of these purposes.
242.31 	(d) Copies of the plan must be filed with the governor, the secretary of state, the state 
242.32 	director of emergency management, and at each of the alternate locations designated in the 
242.33 	plan. Unless otherwise directed by the Legislative Coordinating Commission, the copies of 
243.1 	the plan must be securely maintained and may not be further disclosed to any person except 
243.2 	as required by this chapter, or as necessary to develop and implement the plan's requirements. 
243.3 	To the extent data regarding the plan is held by a government entity, as defined in section 
243.4 	13.02, subdivision 7a, the data are security information under section 13.37.
243.5 		Subd. 2.Implementation of plan. (a) The governor or the chair of the Legislative 
243.6 	Coordinating Commission may order that the legislature's emergency operations and 
243.7 	continuity of government plan be implemented in whole or in part, if an emergency is 
243.8 	declared or if circumstances indicate a disaster or emergency is occurring or a declared 
243.9 	emergency may be imminent. If a change in location is ordered, the legislature must be 
243.10 	directed to a location designated in the plan, or if those designated locations are unsafe or 
243.11 	inaccessible, to any other location within or outside of the state which the governor or chair 
243.12 	deems safe and accessible. If implementation of the plan is ordered by the chair of the 
243.13 	Legislative Coordinating Commission, the chair must notify the governor and the state 
243.14 	director of emergency management as soon as practicable following implementation.
243.15 	(b) A legislative session convened at an alternate location must be reconvened at the 
243.16 	State Capitol as soon as practical after the capitol is secured and restored to accessibility.
243.17 		Subd. 3.Special session at an alternate location; legislative procedure. (a) In the 
243.18 	event of a declared emergency, if the legislature is not in session, the governor shall convene 
243.19 	a special session when required by section 12.31, subdivisions 1 and 2.
243.20 	(b) If the governor fails to convene a special session after declaring a national security 
243.21 	emergency, the chair of the Legislative Coordinating Commission shall order implementation 
243.22 	of the legislature's emergency operations and continuity of government plan, and the 
243.23 	legislature shall convene at the State Capitol, or alternate location designated by the plan, 
243.24 	on the first Tuesday after the first Monday more than 30 days after the national security 
243.25 	emergency was declared.
243.26 	(c) At a special session convened at an alternate location due to a disaster, emergency, 
243.27 	or declared emergency, the quorum requirement for the legislature is a majority of the 
243.28 	members of each house who convene for the session. If the affirmative vote of a specified 
243.29 	proportion of members of the legislature would otherwise be required to approve a bill, 
243.30 	resolution, or for any other action, the same proportion of the members of each house 
243.31 	convening at the session is sufficient. At the time the special session convenes, the legislature 
243.32 	shall adopt temporary joint rules as necessary to ensure the orderly conduct of legislative 
243.33 	business in the alternate location, including compliance with the requirements of the 
243.34 	Minnesota Constitution and the rules of parliamentary practice.

244.1 	Sec. 22. [12.402] EMERGENCY OPERATIONS AND CONTINUITY PLAN; 
244.2 	JUDICIAL BRANCH.
244.3 		Subdivision 1.Adoption of plan required. (a) The Supreme Court must adopt and 
244.4 	maintain an emergency operations and continuity of government plan to ensure the secure, 
244.5 	continued operation of the judicial branch in the event of a disaster, emergency, or declared 
244.6 	emergency. In developing the plan, the court must consult and cooperate with the state 
244.7 	director of emergency management to ensure the plan's compatibility with the comprehensive 
244.8 	state emergency operations plan and emergency management program. The court must also 
244.9 	consult the governor or the governor's designee, and the chair of the Legislative Coordinating 
244.10 	Commission, or the chair's designee, to ensure the plan's compatibility with those adopted 
244.11 	for the executive council and legislative branch under sections 12.401 and 12.403, to the 
244.12 	extent practical.
244.13 	(b) At a minimum, the Supreme Court's plan must address reasonably foreseeable effects 
244.14 	of a disaster, emergency, or declared emergency, on the ability of the judicial branch to 
244.15 	perform its constitutional functions, including but not limited to the following:
244.16 	(1) identification of at least three suitable locations within the state at which the Supreme 
244.17 	Court, Court of Appeals, and central administrative functions of the judicial branch could 
244.18 	operate in the event of a disaster or declared emergency that make its regular location unsafe 
244.19 	or inaccessible, with one location designated as a primary alternate location and two 
244.20 	designated as backup alternate locations if the primary location is unsafe or inaccessible;
244.21 	(2) plans to provide timely and secure communications regarding a disaster, emergency, 
244.22 	or declared emergency to all affected personnel, including alternate methods of 
244.23 	communication if a primary method is unavailable;
244.24 	(3) plans to securely transport affected justices, judges, designated personnel, and 
244.25 	necessary equipment and records to an alternate location and begin judicial operations at 
244.26 	that location in a timely manner;
244.27 	(4) plans to ensure reasonable public notice of the judicial branch's operations and access 
244.28 	to its proceedings and records in-person or by electronic, broadcast, or other means as the 
244.29 	rules of the court require and the circumstances of the emergency allow;
244.30 	(5) plans to ensure the rights and protections guaranteed by the federal and state 
244.31 	constitutions to criminal defendants, petitioners, and civil litigants are preserved;
244.32 	(6) procedures for the orderly return of judicial branch operations to their regular location, 
244.33 	as soon as circumstances allow; and
245.1 	(7) policy decisions that address any other procedures or protocols recommended for 
245.2 	inclusion by the state director of emergency management.
245.3 	(c) The plan must be adopted and maintained by the Supreme Court no later than January 
245.4 	30, 2019, and may be subsequently amended at any time. At a minimum, the plan must be 
245.5 	reviewed by the justices and judges of the Supreme Court and Court of Appeals, and 
245.6 	designated staff, no later than January 30 of each odd-numbered year.
245.7 	(d) Copies of the plan must be filed with the governor, the secretary of state, the state 
245.8 	director of emergency management, and at each of the alternate locations designated in the 
245.9 	plan. Unless otherwise directed by the court, the copies of the plan must be securely 
245.10 	maintained and may not be further disclosed to any person except as required by this chapter, 
245.11 	or as necessary to develop and implement the plan's requirements. To the extent data 
245.12 	regarding the plan is held by a government entity, as defined in section 13.02, subdivision 
245.13 	7a, the data are security information under section 13.37.
245.14 		Subd. 2.Implementation of plan. (a) The governor or the chief justice may order that 
245.15 	the judiciary's emergency operations and continuity of government plan be implemented in 
245.16 	whole or in part, if an emergency is declared or if circumstances indicate a disaster or 
245.17 	emergency is occurring or a declared emergency may be imminent. If a change in location 
245.18 	is ordered, the affected personnel must be directed to a location designated in the plan, or 
245.19 	if those designated locations are unsafe or inaccessible, to any other location within or 
245.20 	outside of the state which the governor or chief justice deems safe and accessible. If 
245.21 	implementation of the plan is ordered by the chief justice, the chief justice must notify the 
245.22 	governor and the state director of emergency management as soon as practicable following 
245.23 	implementation.
245.24 	(b) A court convened at an alternate location must be reconvened at its regular location 
245.25 	as soon as practical after the location is secured and restored to accessibility.

245.26 	Sec. 23. [12.403] EMERGENCY OPERATIONS AND CONTINUITY PLAN; 
245.27 	CONSTITUTIONAL OFFICERS.
245.28 		Subdivision 1.Adoption of plan required. (a) The executive council must adopt and 
245.29 	maintain an emergency operations and continuity of government plan to ensure the secure, 
245.30 	continued operation of each constitutional office in the event of a disaster, emergency, or 
245.31 	declared emergency. In developing the plan, the council must consult and cooperate with 
245.32 	the state director of emergency management to ensure the plan's compatibility with the 
245.33 	comprehensive state emergency operations plan and emergency management program. The 
245.34 	council must also consult the chair of the Legislative Coordinating Commission or the chair's 
246.1 	designee, and the chief justice of the Supreme Court or the chief justice's designee, to ensure 
246.2 	the plan's compatibility with those adopted for the legislative branch and judicial branch 
246.3 	under sections 12.401 and 12.402, to the extent practical.
246.4 	(b) At a minimum, the council's plan must address reasonably foreseeable effects of a 
246.5 	disaster, emergency, or declared emergency, on the ability of the state constitutional officers 
246.6 	to perform their constitutional functions, including but not limited to the following:
246.7 	(1) identification of at least three suitable locations within the state at which the 
246.8 	constitutional officers could conduct operations in the event of a disaster, emergency, or 
246.9 	declared emergency that make their regular locations unsafe or inaccessible, with one 
246.10 	location designated as a primary alternate location and two designated as backup alternate 
246.11 	locations if the primary location is unsafe or inaccessible;
246.12 	(2) plans to provide timely and secure communications regarding a disaster, emergency, 
246.13 	or declared emergency to all affected constitutional officers and personnel, including alternate 
246.14 	methods of communication if a primary method is unavailable;
246.15 	(3) plans to securely transport all constitutional officers, designated personnel, and 
246.16 	necessary equipment and records to an alternate location and begin operations at that location 
246.17 	in a timely manner;
246.18 	(4) plans to ensure reasonable public notice of each constitutional officer's operations 
246.19 	and access to the officers and records in person or by electronic, broadcast, or other means 
246.20 	as the circumstances of the emergency allow;
246.21 	(5) procedures for the orderly return of operations to the State Capitol, as soon as 
246.22 	circumstances allow; and
246.23 	(6) policy decisions that address any other procedures or protocols recommended for 
246.24 	inclusion by the state director of emergency management.
246.25 	(c) The plan must be adopted no later than January 30, 2019, and may be subsequently 
246.26 	amended at any time. At a minimum, the plan must be reviewed by the executive council 
246.27 	and designated staff no later than January 30 of each odd-numbered year. A meeting of the 
246.28 	council may be closed to the public for any of these purposes.
246.29 	(d) Copies of the plan must be filed with each constitutional officer, the state director 
246.30 	of emergency management, and at each of the alternate locations designated in the plan. 
246.31 	Unless otherwise directed by the executive council, the copies of the plan are security data 
246.32 	under section 13.37, must be securely maintained, and may not be further disclosed to any 
247.1 	person except as required by this chapter, or as necessary to develop and implement its 
247.2 	requirements.
247.3 		Subd. 2.Implementation of plan. (a) The governor or any constitutional officer, with 
247.4 	respect to that officer's constitutional office, may order that the executive council's emergency 
247.5 	operations and continuity of government plan be implemented in whole or in part, if an 
247.6 	emergency is declared or if circumstances indicate a disaster or emergency is occurring or 
247.7 	a declared emergency may be imminent. If a change in location is ordered, affected personnel 
247.8 	must be directed to a location designated in the plan, or if those designated locations are 
247.9 	unsafe or inaccessible, to any other location within or outside of the state which the governor 
247.10 	or constitutional officer deems safe and accessible. If implementation of the plan is ordered 
247.11 	by a constitutional officer other than the governor, the officer must notify the governor and 
247.12 	the state director of emergency management as soon as practicable following implementation.
247.13 	(b) A constitutional officer's primary office must be returned to its regular location as 
247.14 	soon as practical after that location is secured and restored to accessibility.

247.15 	Sec. 24. Minnesota Statutes 2016, section 13.02, is amended by adding a subdivision to 
247.16 	read:
247.17 		Subd. 1a.Chief administrative law judge. "Chief administrative law judge" means the 
247.18 	chief administrative law judge of the state Office of Administrative Hearings.

247.19 	Sec. 25. Minnesota Statutes 2016, section 13.02, is amended by adding a subdivision to 
247.20 	read:
247.21 		Subd. 8b.Information policy analysis unit. "Information policy analysis unit" means 
247.22 	the work unit within the Office of Administrative Hearings established under section 13.071.

247.23 	Sec. 26. [13.071] INFORMATION POLICY ANALYSIS UNIT; DATA PRACTICES 
247.24 	COORDINATOR.
247.25 		Subdivision 1.Information policy analysis unit established. An information policy 
247.26 	analysis unit is established as a work unit within the Office of Administrative Hearings.
247.27 		Subd. 2.Data practices coordinator. (a) The chief administrative law judge shall 
247.28 	appoint a data practices coordinator in the unclassified service who shall oversee the 
247.29 	operations of the information policy analysis unit.
247.30 	(b) The coordinator must be knowledgeable about the Minnesota Government Data 
247.31 	Practices Act, the Minnesota Open Meeting Law, and federal laws and regulations regarding 
248.1 	data privacy. The coordinator must have experience in dealing with both private enterprise 
248.2 	and governmental entities, interpreting laws and regulations, record keeping, report writing, 
248.3 	public speaking, and management.
248.4 		Subd. 3.Duties. The information policy analysis unit shall:
248.5 	(1) informally advise and serve as a technical resource for government entities on 
248.6 	questions related to public access to government data, rights of subjects of data, classification 
248.7 	of data, or applicable duties under chapter 13D;
248.8 	(2) informally advise persons regarding their rights under this chapter or chapter 13D;
248.9 	(3) administer training on chapter 13D and the public information policy training program 
248.10 	under section 13.073;
248.11 	(4) issue advisory opinions pursuant to section 13.072;
248.12 	(5) operate in a manner that effectively screens the work of the information policy 
248.13 	analysis unit from any administrative law judges assigned to a contested case pursuant to 
248.14 	section 13.085; and
248.15 	(6) perform other duties as directed by the chief administrative law judge.
248.16 		Subd. 4.Effect of informal advice. Informal advice or trainings offered by the 
248.17 	information policy analysis unit is not binding on a government entity or members of a body 
248.18 	subject to chapter 13D, does not constitute legal advice or an advisory opinion under section 
248.19 	13.072, and has no effect on liability, fines, or fee awards arising from a violation of this 
248.20 	chapter or chapter 13D. This section does not preclude a person from, in addition to or 
248.21 	instead of requesting advice from the information policy analysis unit, seeking an advisory 
248.22 	opinion under section 13.072, or bringing any other action under this chapter or other law.
248.23 		Subd. 5.Data submitted to information policy analysis unit. A government entity 
248.24 	may submit not public data to the information policy analysis unit for the purpose of 
248.25 	requesting advice. Government data submitted to the information policy analysis unit by a 
248.26 	government entity or copies of government data submitted by other persons have the same 
248.27 	classification as the data have when held by the government entity.

248.28 	Sec. 27. Minnesota Statutes 2016, section 13.072, is amended to read:
248.29 	13.072 ADVISORY OPINIONS BY THE COMMISSIONER INFORMATION 
248.30 	POLICY ANALYSIS UNIT.
248.31 		Subdivision 1. Advisory opinion; when required. (a) Upon request of a government 
248.32 	entity, the commissioner may information policy analysis unit shall give a written advisory 
249.1 	opinion on any question relating to public access to government data, rights of subjects of 
249.2 	data, or classification of data under this chapter or other Minnesota statutes governing 
249.3 	government data practices. Upon request of any person who disagrees with a determination 
249.4 	regarding data practices made by a government entity, the commissioner may information 
249.5 	policy analysis unit shall give a written advisory opinion regarding the person's rights as a 
249.6 	subject of government data or right to have access to government data.
249.7 	(b) Upon request of a body subject to chapter 13D, the commissioner may information 
249.8 	policy analysis unit shall give a written advisory opinion on any question relating to the 
249.9 	body's duties under chapter 13D. Upon request of a person who disagrees with the manner 
249.10 	in which members of a governing body perform their duties under chapter 13D, the 
249.11 	commissioner may information policy analysis unit shall give a written advisory opinion 
249.12 	on compliance with chapter 13D. A governing body or person requesting an opinion under 
249.13 	this paragraph must pay the commissioner a fee of $200. Money received by the 
249.14 	commissioner under this paragraph is appropriated to the commissioner for the purposes of 
249.15 	this section.
249.16 	(c) If the commissioner determines that no opinion will be issued, the commissioner 
249.17 	shall give the government entity or body subject to chapter 13D or person requesting the 
249.18 	opinion notice of the decision not to issue the opinion within five business days of receipt 
249.19 	of the request. If this notice is not given, the commissioner The information policy analysis 
249.20 	unit shall issue an advisory opinion within 20 days of receipt of the request.
249.21 	(d) For good cause and upon written notice to the person requesting the advisory opinion, 
249.22 	the commissioner chief administrative law judge may extend this deadline for one additional 
249.23 	30-day period. The notice must state the reason for extending the deadline. The government 
249.24 	entity or the members of a body subject to chapter 13D must be provided a reasonable 
249.25 	opportunity to explain the reasons for its decision regarding the data or how they perform 
249.26 	their duties under chapter 13D. The commissioner information policy analysis unit or the 
249.27 	government entity or body subject to chapter 13D may choose to give notice to the subject 
249.28 	of the data concerning the dispute regarding the data or compliance with chapter 13D.
249.29 	(e) This section does not apply to a determination made by the commissioner of health 
249.30 	under section 13.3805, subdivision 1, paragraph (b), or 144.6581.
249.31 	(f) A written, numbered, and published opinion issued by the attorney general shall take 
249.32 	precedence over an advisory opinion issued by the commissioner information policy analysis 
249.33 	unit under this section.
250.1 	(g) A decision of the Office of Administrative Hearings issued under section 13.085 
250.2 	shall take precedence over an advisory opinion issued by the information policy analysis 
250.3 	unit under this section.
250.4 		Subd. 2.Effect. (a) Advisory opinions issued by the commissioner information policy 
250.5 	analysis unit under this section are not binding on the government entity or members of a 
250.6 	body subject to chapter 13D whose data or performance of duties is the subject of the 
250.7 	advisory opinion, but an advisory opinion described in subdivision 1, paragraph (a), must 
250.8 	be given deference by a court or other tribunal in a proceeding involving the data. The 
250.9 	commissioner information policy analysis unit shall arrange for public dissemination of 
250.10 	advisory opinions issued under this section, and shall indicate when the principles stated in 
250.11 	an advisory opinion are not intended to provide guidance to all similarly situated persons 
250.12 	or government entities. This section does not preclude a person from bringing any other 
250.13 	action under this chapter or other law in addition to or instead of requesting a written advisory 
250.14 	opinion. A government entity, members of a body subject to chapter 13D, or person that 
250.15 	acts in conformity with a written advisory opinion of the commissioner information policy 
250.16 	analysis unit issued to the government entity, members, or person or to another party is not 
250.17 	liable for compensatory or exemplary damages or awards of attorneys fees in actions for 
250.18 	violations arising under section 13.08 or 13.085, or for a penalty under section 13.09 or for 
250.19 	fines, awards of attorney fees, or any other penalty under chapter 13D. A member of a body 
250.20 	subject to chapter 13D is not subject to forfeiture of office if the member was acting in 
250.21 	reliance on an advisory opinion.
250.22 	(b) The information policy analysis unit shall publish and maintain all previously issued 
250.23 	written opinions of the commissioner of administration in the same manner as advisory 
250.24 	opinions issued by the information policy analysis unit. A previously issued written opinion 
250.25 	by the commissioner of administration has the same effect as an advisory opinion issued 
250.26 	by the information policy analysis unit.
250.27 		Subd. 4.Data submitted to commissioner information policy analysis unit. A 
250.28 	government entity may submit not public data to the commissioner information policy 
250.29 	analysis unit for the purpose of requesting or responding to a person's request for an advisory 
250.30 	opinion. Government data submitted to the commissioner information policy analysis unit
250.31 	by a government entity or copies of government data submitted by other persons have the 
250.32 	same classification as the data have when held by the government entity. If the nature of 
250.33 	the advisory opinion is such that the release of the advisory opinion would reveal not public 
250.34 	data, the commissioner information policy analysis unit may issue an advisory opinion using 
250.35 	pseudonyms for individuals. Data maintained by the commissioner information policy 
251.1 	analysis unit, in the record of an advisory opinion issued using pseudonyms that would 
251.2 	reveal the identities of individuals protected by the use of the pseudonyms, are private data 
251.3 	on individuals.

251.4 	Sec. 28. Minnesota Statutes 2016, section 13.08, subdivision 4, is amended to read:
251.5 		Subd. 4.Action to compel compliance. (a) Actions to compel compliance may be 
251.6 	brought either under this subdivision or section 13.085. For actions under this subdivision, 
251.7 	in addition to the remedies provided in subdivisions 1 to 3 or any other law, any aggrieved 
251.8 	person seeking to enforce the person's rights under this chapter or obtain access to data may 
251.9 	bring an action in district court to compel compliance with this chapter and may recover 
251.10 	costs and disbursements, including reasonable attorney's fees, as determined by the court. 
251.11 	If the court determines that an action brought under this subdivision is frivolous and without 
251.12 	merit and a basis in fact, it may award reasonable costs and attorney fees to the responsible 
251.13 	authority. If the court issues an order to compel compliance under this subdivision, the court 
251.14 	may impose a civil penalty of up to $1,000 against the government entity. This penalty is 
251.15 	payable to the state general fund and is in addition to damages under subdivision 1. The 
251.16 	matter shall be heard as soon as possible. In an action involving a request for government 
251.17 	data under section 13.03 or 13.04, the court may inspect in camera the government data in 
251.18 	dispute, but shall conduct its hearing in public and in a manner that protects the security of 
251.19 	data classified as not public. If the court issues an order to compel compliance under this 
251.20 	subdivision, the court shall forward a copy of the order to the commissioner of administration
251.21 	chief administrative law judge.
251.22 	(b) In determining whether to assess a civil penalty under this subdivision, the court or 
251.23 	other tribunal shall consider whether the government entity has substantially complied with 
251.24 	general data practices under this chapter, including but not limited to, whether the government 
251.25 	entity has:
251.26 	(1) designated a responsible authority under section 13.02, subdivision 16;
251.27 	(2) designated a data practices compliance official under section 13.05, subdivision 13;
251.28 	(3) prepared the data inventory that names the responsible authority and describes the 
251.29 	records and data on individuals that are maintained by the government entity under section 
251.30 	13.025, subdivision 1;
251.31 	(4) developed public access procedures under section 13.03, subdivision 2; procedures 
251.32 	to guarantee the rights of data subjects under section 13.025, subdivision 3; and procedures 
252.1 	to ensure that data on individuals are accurate and complete and to safeguard the data's 
252.2 	security under section 13.05, subdivision 5;
252.3 	(5) acted in conformity with an advisory opinion issued under section 13.072 that was 
252.4 	sought by a government entity or another person;
252.5 	(6) acted in conformity with a decision of the Office of Administrative Hearings issued 
252.6 	under section 13.085; or
252.7 	(6) (7) provided ongoing training to government entity personnel who respond to requests 
252.8 	under this chapter.
252.9 	(c) The court shall award reasonable attorney fees to a prevailing plaintiff who has 
252.10 	brought an action under this subdivision if the government entity that is the defendant in 
252.11 	the action was also the subject of a written an advisory opinion issued under section 13.072 
252.12 	or a decision of the Office of Administrative Hearings issued under section 13.085 and the 
252.13 	court finds that the opinion or decision is directly related to the cause of action being litigated 
252.14 	and that the government entity did not act in conformity with the opinion or decision.

252.15 	Sec. 29. Minnesota Statutes 2016, section 13.085, subdivision 2, is amended to read:
252.16 		Subd. 2.Complaints. (a) A complaint alleging a violation of this chapter or chapter 
252.17 	13D for which an order to compel compliance is requested may be filed with the office. An 
252.18 	action to compel compliance does not include procedures pursuant to section 13.04, 
252.19 	subdivision 4 or 4a.
252.20 	(b) The complaint must be filed with the office within two years after the occurrence of 
252.21 	the act or failure to act that is the subject of the complaint, except that if the act or failure 
252.22 	to act involves concealment or misrepresentation by the government entity that could not 
252.23 	be discovered during that period, the complaint may be filed with the office within one year 
252.24 	after the concealment or misrepresentation is discovered.
252.25 	(c) The complaint must be made in writing, submitted under oath, and detail the factual 
252.26 	basis for the claim that a violation of law has occurred. The office may prescribe a standard 
252.27 	form for the complaint. The complaint must be accompanied by a filing fee of $1,000 $250
252.28 	or a bond to guarantee the payment of this fee.
252.29 	(d) Upon receipt of a filed complaint, the office must immediately notify the respondent 
252.30 	and, if known, the applicable responsible authority for the government entity, if the 
252.31 	responsible authority is not otherwise named as the respondent. The office must provide 
252.32 	the respondent with a copy of the complaint by the most expeditious means available. Notice 
252.33 	to a responsible authority must be delivered by certified mail. The office must also notify, 
253.1 	to the extent practicable, any individual or entity that is the subject of all or part of the data 
253.2 	in dispute.
253.3 	(e) The office must notify the commissioner of administration of an action filed under 
253.4 	this section. Proceedings under this section must be dismissed without prejudice as untimely 
253.5 	and the complainant's filing fee must be refunded if a request for an advisory opinion from 
253.6 	the commissioner was accepted on the matter under section 13.072 before the complaint 
253.7 	was filed, and the complainant's filing fee must be refunded advisory opinion has not yet 
253.8 	been issued.
253.9 	(f) The respondent must file a response to the complaint within 15 business days of 
253.10 	receipt of the notice. For good cause shown, the office may extend the time for filing a 
253.11 	response.

253.12 	Sec. 30. Minnesota Statutes 2016, section 13.085, subdivision 3, is amended to read:
253.13 		Subd. 3.Probable cause review. (a) In conformity with the Minnesota Code of Judicial 
253.14 	Conduct, the chief administrative law judge must assign an administrative law judge to 
253.15 	review each complaint. The chief administrative law judge must ensure that any assigned 
253.16 	administrative law judge is screened from any involvement with any informal advice provided 
253.17 	under section 13.071 or with an advisory opinion issued under section 13.072 that involves 
253.18 	the parties to the complaint. Within 20 business days after a response is filed, or the 
253.19 	respondent's time to file the response, including any extension, has expired, the administrative 
253.20 	law judge must make a preliminary determination for its disposition as follows:
253.21 	(1) if the administrative law judge determines that the complaint and any timely response 
253.22 	of the respondent agency do not present sufficient facts to believe that a violation of this 
253.23 	chapter has occurred, the complaint must be dismissed; or
253.24 	(2) if the administrative law judge determines that the complaint and any timely response 
253.25 	of the respondent agency do present sufficient facts to believe that a violation of this chapter 
253.26 	has occurred, the judge must schedule a hearing as provided in subdivision 4.
253.27 	(b) The office must notify all parties of the determination made under paragraph (a). 
253.28 	The notice must provide as follows:
253.29 	(1) if the complaint is scheduled for a hearing, the notice must identify the time and 
253.30 	place of the hearing and inform all parties that they may submit evidence, affidavits, 
253.31 	documentation, and argument for consideration by the administrative law judge; or
253.32 	(2) if the complaint is dismissed for failure to present sufficient facts to believe that a 
253.33 	violation of this chapter has occurred, the notice must inform the parties of the right of the 
254.1 	complainant to seek reconsideration of the decision on the record by the chief administrative 
254.2 	law judge, as provided in paragraph (c).
254.3 	(c) A petition for reconsideration may be filed no later than five business days after a 
254.4 	complaint is dismissed for failure to present sufficient facts to believe that a violation of 
254.5 	this chapter has occurred. The chief administrative law judge must review the petition and 
254.6 	make a final ruling within ten business days after its receipt. If the chief administrative law 
254.7 	judge determines that the assigned administrative law judge made a clear material error, 
254.8 	the chief administrative law judge must schedule the matter for a hearing as provided in 
254.9 	subdivision 4.

254.10 	Sec. 31. Minnesota Statutes 2016, section 13.085, subdivision 4, is amended to read:
254.11 		Subd. 4.Hearing; procedure. (a) A hearing on a complaint must be held within 30 
254.12 	business days after the parties are notified that a hearing will be held. An oral hearing to 
254.13 	resolve questions of law may be waived upon consent of all parties and the presiding assigned
254.14 	administrative law judge. For good cause shown, the judge may delay the date of a hearing 
254.15 	by no more than ten business days. The judge may continue a hearing to enable the parties 
254.16 	to submit additional evidence or testimony.
254.17 	(b) The administrative law judge must consider any evidence and argument submitted 
254.18 	until the hearing record is closed, including affidavits and documentation.
254.19 	(c) All hearings, and any records relating to the hearing, must be open to the public, 
254.20 	except that the judge may inspect in camera any government data in dispute. If the hearing 
254.21 	record contains information that is not public data, the judge may conduct a closed hearing 
254.22 	to consider the information, issue necessary protective orders, and seal all or part of the 
254.23 	hearing record, as provided in section 14.60, subdivision 2. If a party contends, and the 
254.24 	judge concludes, that not public data could be improperly disclosed while that party is 
254.25 	presenting its arguments, the judge shall close any portion of the hearing as necessary to 
254.26 	prevent the disclosure. A hearing may be conducted by conference telephone call or 
254.27 	interactive audio/video system, at the discretion of the presiding assigned judge, and upon 
254.28 	consent of all parties.

254.29 	Sec. 32. Minnesota Statutes 2016, section 13.085, subdivision 5, is amended to read:
254.30 		Subd. 5.Disposition. (a) Following a hearing, the judge must determine whether the 
254.31 	violation alleged in the complaint occurred and must make at least one of the following 
254.32 	dispositions. The judge may:
255.1 	(1) dismiss the complaint;
255.2 	(2) find that an act or failure to act constituted a violation of this chapter;
255.3 	(3) impose a civil penalty against the respondent of up to $300;
255.4 	(4) issue an order compelling the respondent to comply with a provision of law that has 
255.5 	been violated, and may establish a deadline for production of data, if necessary; and
255.6 	(5) refer the complaint to the appropriate prosecuting authority for consideration of 
255.7 	criminal charges.
255.8 	(b) In determining whether to assess a civil penalty, the office shall consider the factors 
255.9 	described in section 13.08, subdivision 4.
255.10 	(c) The judge must render a decision on a complaint within ten business days after the 
255.11 	hearing record closes. The chief administrative law judge shall provide for public 
255.12 	dissemination of orders issued under this section. If the judge determines that a government 
255.13 	entity has violated a provision of law and issues an order to compel compliance, the office 
255.14 	shall forward a copy of the order to the commissioner of administration. Any order issued 
255.15 	pursuant to this section is enforceable through the district court for the district in which the 
255.16 	respondent is located.
255.17 	(d) A party aggrieved by a final decision on a complaint filed under this section is entitled 
255.18 	to judicial review as provided in sections 14.63 to 14.69. Proceedings on a complaint are 
255.19 	not a contested case within the meaning of chapter 14 and are not otherwise governed by 
255.20 	chapter 14.
255.21 	(e) A decision of the office under this section is not controlling in any subsequent action 
255.22 	brought in district court alleging the same violation and seeking damages.
255.23 	(f)(e) A government entity or person that releases not public data pursuant to an order 
255.24 	under this section is immune from civil and criminal liability for that release. A government 
255.25 	entity or person that acts in conformity with an order issued under this section to the 
255.26 	government entity or to any other person is not liable for compensatory or exemplary damage 
255.27 	or awards of attorney fees for acting in conformity with that order in actions under this 
255.28 	section or section 13.08, or for a penalty under section 13.09.

255.29 	Sec. 33. Minnesota Statutes 2016, section 13.085, subdivision 6, is amended to read:
255.30 		Subd. 6.Costs; attorney fees. (a) A rebuttable presumption shall exist that a complainant 
255.31 	who substantially prevails on the merits in an action brought under this section is entitled 
255.32 	to an award of reasonable attorney fees, not to exceed $5,000. An award of attorney fees 
256.1 	may be denied if the judge determines that the violation is merely technical or that there is 
256.2 	a genuine uncertainty about the meaning of the governing law.
256.3 	(b) Reasonable attorney fees, not to exceed $5,000, must be awarded to a substantially 
256.4 	prevailing complainant if the government entity that is the respondent in the action was also 
256.5 	the subject of a written an advisory opinion issued under section 13.072 or a prior decision 
256.6 	of the Office of Administrative Hearings issued under this section and the administrative 
256.7 	law judge finds that the opinion or decision is directly related to the matter in dispute and 
256.8 	that the government entity did not act in conformity with the opinion or decision.
256.9 	(c) The office shall refund the filing fee of a substantially prevailing complainant in full, 
256.10 	less $50, and the office's costs in conducting the matter shall be billed to the respondent, 
256.11 	not to exceed $1,000.
256.12 	(d) A complainant that does not substantially prevail on the merits shall be entitled to a 
256.13 	refund of the filing fee, less any costs incurred by the office in conducting the matter.
256.14 	(e) If the administrative law judge determines that a complaint is frivolous, or brought 
256.15 	for purposes of harassment, the judge must order that the complainant pay the respondent's 
256.16 	reasonable attorney fees, not to exceed $5,000. The complainant shall not be entitled to a 
256.17 	refund of the filing fee.
256.18 	(f) The court shall award the complainant costs and attorney fees incurred in bringing 
256.19 	an action in district court to enforce an order of the Office of Administrative Hearings under 
256.20 	this section.

256.21 	Sec. 34. Minnesota Statutes 2016, section 13.085, is amended by adding a subdivision to 
256.22 	read:
256.23 		Subd. 8.Publication and authority of decisions. (a) The chief administrative law judge 
256.24 	shall provide for public dissemination of the office's decisions issued under this section. 
256.25 	Public dissemination must include the publication and maintenance of all decisions in a 
256.26 	user-friendly, searchable database conspicuously located on the office's Web site. Not public 
256.27 	data contained in a decision must be redacted prior to public dissemination.
256.28 	(b) Unless the decision states otherwise, a decision of the office issued under this section 
256.29 	has precedential effect on future complaints under this section and shall, where appropriate, 
256.30 	be used to provide guidance to similarly situated persons or government entities.
256.31 	(c) A government entity, member of a body subject to chapter 13D, or person that acts 
256.32 	in conformity with a decision of the office made under this section is not liable for 
256.33 	compensatory or exemplary damages or awards of attorney fees in actions for violations 
257.1 	arising under this section or section 13.08, or for a penalty under section 13.09 or for fines, 
257.2 	awards of attorney fees, or any other penalty under chapter 13D. A member of a body subject 
257.3 	to chapter 13D is not subject to forfeiture of office if the member was acting in reliance on 
257.4 	a decision of the office made under this section.

257.5 	Sec. 35. Minnesota Statutes 2016, section 13.64, is amended by adding a subdivision to 
257.6 	read:
257.7 		Subd. 4.Fiscal note data must be shared with Legislative Budget Office. A 
257.8 	government entity must provide any data, regardless of its classification, to the director of 
257.9 	the Legislative Budget Office for review, upon the director's request and consistent with 
257.10 	section 3.8853, subdivision 4. The data must be supplied according to any standards, 
257.11 	guidelines, or procedures adopted under section 3.8853, subdivision 3, including any 
257.12 	standards or procedures governing timeliness. Notwithstanding section 13.05, subdivision 
257.13 	9, a responsible authority may not require the Legislative Budget Office to pay a cost for 
257.14 	supplying data requested under this subdivision.

257.15 	EFFECTIVE DATE. This section is effective January 8, 2019.

257.16 	Sec. 36. Minnesota Statutes 2016, section 13.685, is amended to read:
257.17 	13.685 MUNICIPAL UTILITY CUSTOMER DATA.
257.18 	Data on customers of municipal electric utilities are private data on individuals or 
257.19 	nonpublic data, but may be released to:
257.20 	(1) a law enforcement agency that requests access to the data in connection with an 
257.21 	investigation;
257.22 	(2) a school for purposes of compiling pupil census data;
257.23 	(3) the Metropolitan Council for use in studies or analyses required by law;
257.24 	(4) a public child support authority for purposes of establishing or enforcing child support; 
257.25 	or
257.26 	(5) a person where use of the data directly advances the general welfare, health, or safety 
257.27 	of the public; the commissioner of administration information policy analysis unit may issue 
257.28 	advisory opinions construing this clause pursuant to section 13.072.

258.1 	Sec. 37. Minnesota Statutes 2016, section 13D.06, subdivision 4, is amended to read:
258.2 		Subd. 4.Costs; attorney fees; requirements; limits. (a) In addition to other remedies, 
258.3 	the court may award reasonable costs, disbursements, and reasonable attorney fees of up to 
258.4 	$13,000 to any party in an action under this chapter.
258.5 	(b) The court may award costs and attorney fees to a defendant only if the court finds 
258.6 	that the action under this chapter was frivolous and without merit.
258.7 	(c) A public body may pay any costs, disbursements, or attorney fees incurred by or 
258.8 	awarded against any of its members in an action under this chapter.
258.9 	(d) No monetary penalties or attorney fees may be awarded against a member of a public 
258.10 	body unless the court finds that there was an intent to violate this chapter.
258.11 	(e) The court shall award reasonable attorney fees to a prevailing plaintiff who has 
258.12 	brought an action under this section if the public body that is the defendant in the action 
258.13 	was also the subject of a prior written advisory opinion issued under section 13.072 or a 
258.14 	prior decision of the Office of Administrative Hearings issued under section 13.085, and 
258.15 	the court finds that the opinion or decision is directly related to the cause of action being 
258.16 	litigated and that the public body did not act in conformity with the opinion or decision. 
258.17 	The court shall give deference to the opinion or decision in a proceeding brought under this 
258.18 	section.

258.19 	Sec. 38. Minnesota Statutes 2017 Supplement, section 15A.0815, subdivision 3, is amended 
258.20 	to read:
258.21 		Subd. 3.Group II salary limits. The salary for a position listed in this subdivision shall 
258.22 	not exceed 120 percent of the salary of the governor. This limit must be adjusted annually 
258.23 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
258.24 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
258.25 	second prior year to October of the immediately prior year. The commissioner of management 
258.26 	and budget must publish the limit on the department's Web site. This subdivision applies 
258.27 	to the following positions:
258.28 	Executive director of Gambling Control Board;
258.29 	Commissioner of Iron Range resources and rehabilitation;
258.30 	Commissioner, Bureau of Mediation Services;
258.31 	Ombudsman for Mental Health and Developmental Disabilities;
258.32 	Chair, Metropolitan Council;
259.1 	School trust lands director;
259.2 	Executive director of pari-mutuel racing; and
259.3 	Commissioner, Public Utilities Commission.

259.4 	EFFECTIVE DATE. This section is effective January 1, 2019.

259.5 	Sec. 39. Minnesota Statutes 2016, section 16A.013, is amended by adding a subdivision 
259.6 	to read:
259.7 		Subd. 1a.Opportunity to make gifts via Web site. The commissioner of management 
259.8 	and budget must maintain a secure Web site which permits any person to make a gift of 
259.9 	money electronically for any purpose authorized by subdivision 1. Gifts made using the 
259.10 	Web site are subject to all other requirements of this section, sections 16A.014 to 16A.016, 
259.11 	and any other applicable law governing the receipt of gifts by the state and the purposes for 
259.12 	which a gift may be used. The Web site must include historical data on the total amount of 
259.13 	gifts received using the site, itemized by month.

259.14 	Sec. 40. Minnesota Statutes 2016, section 16A.11, subdivision 1, is amended to read:
259.15 		Subdivision 1.When. The governor shall submit a three-part budget to the legislature. 
259.16 	Parts one and two, the budget message and detailed operating budget, must be submitted 
259.17 	by the fourth Tuesday in January in each odd-numbered year. However, in a year following 
259.18 	the election of a governor who had not been governor the previous year, parts one and two 
259.19 	must be submitted by the third Tuesday in February. Part three, the detailed recommendations 
259.20 	as to capital expenditure, must be submitted as follows: agency capital budget requests by 
259.21 	July 15 of each odd-numbered year, and governor's recommendations by January 15 of each 
259.22 	even-numbered year. Detailed recommendations as to information technology expenditure 
259.23 	must be submitted as part of the detailed operating budget. Information technology 
259.24 	recommendations must include projects to be funded during the next biennium and planning 
259.25 	estimates for an additional two bienniums. Information technology recommendations must 
259.26 	specify purposes of the funding such as infrastructure, hardware, software, or training.

259.27 	Sec. 41. Minnesota Statutes 2016, section 16A.11, is amended by adding a subdivision to 
259.28 	read:
259.29 		Subd. 6a.Information technology and cyber security. (a) Detailed recommendations 
259.30 	as to information and telecommunications technology systems and services expenditures 
259.31 	must be submitted as part of the detailed operating budget. These recommendations must 
259.32 	include projects to be funded during the next biennium and planning estimates for an 
260.1 	additional two bienniums, and must specify purposes of the funding, such as infrastructure, 
260.2 	hardware, software, or training. The detailed operating budget must also separately 
260.3 	recommend expenditures for the maintenance and enhancement of cyber security for the 
260.4 	state's information and telecommunications technology systems and services.
260.5 	(b) The commissioner of management and budget, in consultation with the state chief 
260.6 	information officer, shall establish budget guidelines for the recommendations required by 
260.7 	this subdivision. Unless otherwise set by the commissioner at a higher amount, the amount 
260.8 	to be budgeted each fiscal year for maintenance and enhancement of cyber security must 
260.9 	be at least 3.5 percent of a department's or agency's total operating budget for information 
260.10 	and telecommunications technology systems and services in that year.
260.11 	(c) As used in this subdivision:
260.12 	(1) "cyber security" has the meaning given in section 16E.03, subdivision 1, paragraph 
260.13 	(d); and
260.14 	(2) "information and telecommunications technology systems and services" has the 
260.15 	meaning given in section 16E.03, subdivision 1, paragraph (a).

260.16 	Sec. 42. Minnesota Statutes 2017 Supplement, section 16A.152, subdivision 2, is amended 
260.17 	to read:
260.18 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general fund 
260.19 	revenues and expenditures, the commissioner of management and budget determines that 
260.20 	there will be a positive unrestricted budgetary general fund balance at the close of the 
260.21 	biennium, the commissioner of management and budget must allocate money to the following 
260.22 	accounts and purposes in priority order:
260.23 	(1) the cash flow account established in subdivision 1 until that account reaches 
260.24 	$350,000,000;
260.25 	(2) the budget reserve account established in subdivision 1a until that account reaches 
260.26 	$1,596,522,000;
260.27 	(3) the amount necessary to increase the aid payment schedule for school district aids 
260.28 	and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest 
260.29 	tenth of a percent without exceeding the amount available and with any remaining funds 
260.30 	deposited in the budget reserve; and
261.1 	(4) the amount necessary to restore all or a portion of the net aid reductions under section 
261.2 	127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, 
261.3 	subdivision 5, by the same amount; and.
261.4 	(5) the clean water fund established in section 114D.50 until $22,000,000 has been 
261.5 	transferred into the fund.
261.6 	(b) The amounts necessary to meet the requirements of this section are appropriated 
261.7 	from the general fund within two weeks after the forecast is released or, in the case of 
261.8 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
261.9 	schedules otherwise established in statute.
261.10 	(c) The commissioner of management and budget shall certify the total dollar amount 
261.11 	of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. 
261.12 	The commissioner of education shall increase the aid payment percentage and reduce the 
261.13 	property tax shift percentage by these amounts and apply those reductions to the current 
261.14 	fiscal year and thereafter.
261.15 	(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been 
261.16 	made.

261.17 	Sec. 43. Minnesota Statutes 2016, section 16D.09, is amended to read:
261.18 	16D.09 UNCOLLECTIBLE DEBTS.
261.19 		Subdivision 1.Generally. (a) When a debt is determined by a state agency to be 
261.20 	uncollectible, the debt may be written off by the state agency from the state agency's financial 
261.21 	accounting records and no longer recognized as an account receivable for financial reporting 
261.22 	purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts 
261.23 	have been exhausted, (2) the cost of further collection action will exceed the amount 
261.24 	recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence, 
261.25 	(4) the debtor cannot be located, (5) the available assets or income, current or anticipated, 
261.26 	that may be available for payment of the debt are insufficient, (6) the debt has been 
261.27 	discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt 
261.28 	has expired, or (8) it is not in the public interest to pursue collection of the debt.
261.29 	(b) The determination of the uncollectibility of a debt must be reported by the state 
261.30 	agency along with the basis for that decision as part of its quarterly reports to the 
261.31 	commissioner of management and budget. If a state agency's quarterly report includes an 
261.32 	uncollectible debt that exceeds $10,000, a copy of the report must be submitted to the chairs 
261.33 	and ranking minority members of the legislative committees with jurisdiction over the state 
262.1 	agency's budget at the same time the report is delivered to the commissioner of management 
262.2 	and budget. Determining that the debt is uncollectible does not cancel the legal obligation 
262.3 	of the debtor to pay the debt.

262.4 	Sec. 44. Minnesota Statutes 2016, section 16E.016, is amended to read:
262.5 	16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES 
262.6 	AND EQUIPMENT.
262.7 	(a) The chief information officer is responsible for providing or entering into managed 
262.8 	services contracts for the provision, improvement, and development of the following 
262.9 	information technology systems and services to state agencies:
262.10 	(1) state data centers;
262.11 	(2) mainframes including system software;
262.12 	(3) servers including system software;
262.13 	(4) desktops including system software;
262.14 	(5) laptop computers including system software;
262.15 	(6) a data network including system software;
262.16 	(7) database, electronic mail, office systems, reporting, and other standard software 
262.17 	tools;
262.18 	(8) business application software and related technical support services;
262.19 	(9) help desk for the components listed in clauses (1) to (8);
262.20 	(10) maintenance, problem resolution, and break-fix for the components listed in clauses 
262.21 	(1) to (8);
262.22 	(11) regular upgrades and replacement for the components listed in clauses (1) to (8); 
262.23 	and
262.24 	(12) network-connected output devices.
262.25 	(b) All state agency employees whose work primarily involves functions specified in 
262.26 	paragraph (a) are employees of the Office of MN.IT Services. This includes employees who 
262.27 	directly perform the functions in paragraph (a), as well as employees whose work primarily 
262.28 	involves managing, supervising, or providing administrative services or support services 
262.29 	to employees who directly perform these functions. The chief information officer may assign 
262.30 	employees of the office to perform work exclusively for another state agency.
263.1 	(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow a 
263.2 	state agency to obtain services specified in paragraph (a) through a contract with an outside 
263.3 	vendor when the chief information officer and the agency head agree that a contract would 
263.4 	provide best value, as defined in section 16C.02, under the service-level agreement. The 
263.5 	chief information officer must require that agency contracts with outside vendors ensure 
263.6 	that systems and services are compatible with standards established by the Office of MN.IT 
263.7 	Services.
263.8 	(d) The Minnesota State Retirement System, the Public Employees Retirement 
263.9 	Association, the Teachers Retirement Association, the State Board of Investment, the 
263.10 	Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide Radio 
263.11 	Board are not state agencies for purposes of this section.
263.12 	(d) Effective upon certification by the chief information officer that the information 
263.13 	technology systems and services provided under this section meet all professional and 
263.14 	technical standards necessary for the entity to perform its functions, including functions 
263.15 	necessary to meet any fiduciary or other duties of care, the following are state agencies for 
263.16 	purposes of this section: the Campaign Finance and Public Disclosure Board, the State 
263.17 	Lottery, the Statewide Radio Board, the Minnesota State Retirement System, the Public 
263.18 	Employees Retirement Association, the Teachers Retirement Association, and the State 
263.19 	Board of Investment.

263.20 	EFFECTIVE DATE. This section is effective July 1, 2019.

263.21 	Sec. 45. Minnesota Statutes 2016, section 16E.03, subdivision 4, is amended to read:
263.22 		Subd. 4.Evaluation procedure. The chief information officer shall establish and, as 
263.23 	necessary, update and modify procedures to evaluate information and communications 
263.24 	projects proposed by state agencies. The evaluation procedure must assess the necessity, 
263.25 	design and plan for development, ability to meet user requirements, accessibility, feasibility, 
263.26 	and flexibility of the proposed data processing device or system, its relationship to other 
263.27 	state or local data processing devices or systems, and its costs and benefits when considered 
263.28 	by itself and when compared with other options. The evaluation procedure must also include 
263.29 	a process for consultation with affected local units of government, if implementation of the 
263.30 	proposed project requires the participation of both a state agency and a local government.

263.31 	EFFECTIVE DATE. This section is effective July 1, 2018, and applies to the evaluation 
263.32 	procedure for information and telecommunications technology projects reviewed by the 
263.33 	state chief information officer on or after January 1, 2019.

264.1 	Sec. 46. Minnesota Statutes 2016, section 16E.03, subdivision 7, is amended to read:
264.2 		Subd. 7.Cyber security systems. In consultation with the attorney general and 
264.3 	appropriate agency heads, the chief information officer shall develop cyber security policies, 
264.4 	guidelines, and standards, and shall install and administer state data security systems on the 
264.5 	state's computer facilities consistent with these policies, guidelines, standards, and state law 
264.6 	to ensure the integrity of computer-based and other data and to ensure applicable limitations 
264.7 	on access to data, consistent with the public's right to know as defined in chapter 13. The 
264.8 	chief information officer is responsible for overall security of state agency networks 
264.9 	connected to the Internet. Each department or agency head is responsible for the security 
264.10 	of the department's or agency's data within the guidelines of established enterprise policy.
264.11 	Unless otherwise expressly provided by law, at least 3.5 percent of each department's or 
264.12 	agency's expenditures in a fiscal year for information and telecommunications technology 
264.13 	systems and services must be directed to the maintenance and enhancement of cyber security.

264.14 	EFFECTIVE DATE. This section is effective July 1, 2018, and applies to expenditures 
264.15 	in fiscal years beginning on or after that date.

264.16 	Sec. 47. Minnesota Statutes 2016, section 16E.03, is amended by adding a subdivision to 
264.17 	read:
264.18 		Subd. 11.Systems impacting local government. An information and telecommunications 
264.19 	technology project that includes the participation of both a state agency and a local unit of 
264.20 	government may not be approved for full release or deployment until the project has been 
264.21 	field tested by at least one local unit of government, and the results of the field test 
264.22 	successfully demonstrate the integrity, security, and quality of the technology, and that the 
264.23 	functionality and usability of the overall project meet the expectations described in the 
264.24 	project's proposal. Standards for field testing that meet the requirements of this subdivision 
264.25 	must be incorporated into the project's development plan before it may be approved by the 
264.26 	chief information officer under subdivision 3.

264.27 	EFFECTIVE DATE. This section is effective July 1, 2018, and applies to information 
264.28 	and telecommunications technology projects approved by the state chief information officer 
264.29 	on or after that date.

264.30 	Sec. 48. [43A.035] USE OF AGENCY SAVINGS FROM VACANT POSITIONS.
264.31 	(a) To the extent that an executive branch agency accrues savings in personnel costs 
264.32 	resulting from the departure of an agency employee or the maintenance of a vacant position, 
264.33 	those savings may only be used to support a new employee in that position at an equal or 
265.1 	lesser rate of compensation, and for an equal or lesser full-time equivalent work status. 
265.2 	Savings accrued from departed personnel or maintenance of a vacant position may not be 
265.3 	transferred or reallocated to another program or activity within the executive branch agency, 
265.4 	or used to increase the number of full-time equivalent employees at the agency, unless 
265.5 	expressly authorized by law.
265.6 	(b) For purposes of this section, an "executive branch agency" does not include the 
265.7 	Minnesota State Colleges and Universities or statewide pension plans.

265.8 	Sec. 49. [43A.385] HARASSMENT, MISCONDUCT, AND DISCRIMINATION; 
265.9 	INDEPENDENT OFFICE ESTABLISHED.
265.10 		Subdivision 1.Office established; purpose. An independent, centralized office to 
265.11 	receive and investigate complaints of harassment, misconduct, and discrimination, including 
265.12 	sexual harassment, in executive branch state agencies is established. The office shall be led 
265.13 	by a director, appointed by the commissioner of management and budget, who serves in 
265.14 	the unclassified service. The purpose of the office is to apply consistent practices in the 
265.15 	investigation of these complaints across agencies and reinforce a culture that encourages 
265.16 	the reporting of such complaints by increasing confidence in the process and the fairness 
265.17 	of the outcome.
265.18 		Subd. 2.Office duties. (a) In addition to the requirements of subdivisions 3 to 7, the 
265.19 	office must:
265.20 	(1) collect, maintain, and analyze data related to complaints of harassment, misconduct, 
265.21 	and discrimination across state government and must provide public, de-identified summary 
265.22 	reports on the data;
265.23 	(2) provide an opportunity for state employees, and members of the public who interact 
265.24 	with state employees, to report a complaint, provided that the office's complaint procedures 
265.25 	must be in addition to existing opportunities for reporting available through other means;
265.26 	(3) review complaints filed, and provide related investigation services, to all state 
265.27 	agencies;
265.28 	(4) in the event the office determines that a complaint is substantiated, determine an 
265.29 	appropriate corrective action in response, in consultation with the agency employing the 
265.30 	person found to have engaged in improper conduct;
265.31 	(5) track the outcomes of disciplinary or other corrective action, and advise agencies as 
265.32 	needed to ensure consistency in these actions; and
266.1 	(6) employ trained staff to provide resources and information to all parties to a complaint.
266.2 	(b) State agencies must provide applicable data to the office as required by this section, 
266.3 	and must otherwise assist the office in fulfilling its responsibilities, as requested by the 
266.4 	director.
266.5 		Subd. 3.State employee community survey. The office must administer an employee 
266.6 	community survey to gain feedback on the workplace in state agencies. Results of the survey 
266.7 	must be used to review the effectiveness of existing agency leadership efforts, and the 
266.8 	application of existing policies and procedures within each agency. The survey must be 
266.9 	intended to solicit feedback from employees on:
266.10 	(1) whether they feel safe in their workplaces;
266.11 	(2) whether they are knowledgeable about the process for reporting complaints of 
266.12 	harassment, misconduct, or discrimination;
266.13 	(3) their level of satisfaction with reporting a complaint, if applicable; and
266.14 	(4) suggestions for ways their employing agency can provide additional support to 
266.15 	employees who have made a complaint.
266.16 		Subd. 4.Complaint hotline. The office may enter a contract for the development and 
266.17 	maintenance of a hotline that may be used by state employees to report a complaint of 
266.18 	harassment, misconduct, or discrimination.
266.19 		Subd. 5.Audits. The office must conduct audits, to ensure state agencies have effective 
266.20 	and consistent policies and procedures to prevent and correct harassment, misconduct, and 
266.21 	discrimination. The audits must include an evaluation of outcomes related to complaints of 
266.22 	harassment based on a status protected under chapter 363A. The office must provide technical 
266.23 	guidance and otherwise assist agencies in making corrections in response to an audit's 
266.24 	findings, and in ensuring consistency in the handling of complaints.
266.25 		Subd. 6.Training. The office must provide a centralized, consistent, regular training 
266.26 	program for all state agencies designed to increase the knowledge of state employees in the 
266.27 	state's harassment, misconduct, and discrimination prevention policies, procedures, and 
266.28 	resources, and to create a culture of prevention and support for victims. The content of the 
266.29 	program must include bystander training, retaliation prevention training, and respect in the 
266.30 	workplace training. Customized training programs must be offered for: (1) general state 
266.31 	employees; (2) supervisors and managers; and (3) agency affirmative action and human 
266.32 	resources employees.
267.1 		Subd. 7.Annual legislative report required. No later than January 15, 2019, and 
267.2 	annually thereafter, the office must provide a written report to the chairs and ranking minority 
267.3 	members of the legislative committees with jurisdiction over state government finance and 
267.4 	state government operations on the work of the office. The report must include detail on 
267.5 	disciplinary and other corrective actions taken by state agencies in response to a substantiated 
267.6 	complaint. The report must not identify a party to a complaint, unless the identity is public 
267.7 	under applicable law.
267.8 		Subd. 8.Transfer of responsibilities to office. To the extent that a responsibility 
267.9 	described in subdivisions 1 to 7 conflicts with or duplicates the responsibilities of an existing 
267.10 	office or department within a state agency, those responsibilities are transferred to the 
267.11 	centralized office established by this section, consistent with the requirements of section 
267.12 	15.039. The commissioner of administration may, with the approval of the governor, issue 
267.13 	reorganization orders under section 16B.37 as necessary to complete the transfer of duties 
267.14 	required by this subdivision.

267.15 	Sec. 50. Minnesota Statutes 2016, section 155A.23, subdivision 8, is amended to read:
267.16 		Subd. 8.Manager. A "manager" is any person who is a cosmetologist, esthetician, 
267.17 	advanced practice esthetician, or nail technician practitioner, or eyelash technician 
267.18 	practitioner, and who has a manager license and provides any services under that license, 
267.19 	as defined in subdivision 3.

267.20 	Sec. 51. Minnesota Statutes 2016, section 155A.25, subdivision 1a, is amended to read:
267.21 		Subd. 1a.Schedule. (a) The schedule for fees and penalties is as provided in this 
267.22 	subdivision.
267.23 	(b) Three-year license fees are as follows:
267.24 	(1) $195 initial practitioner, manager, or instructor license, divided as follows:
267.25 	(i) $155 for each initial license; and
267.26 	(ii) $40 for each initial license application fee;
267.27 	(2) $115 renewal of practitioner license, divided as follows:
267.28 	(i) $100 for each renewal license; and
267.29 	(ii) $15 for each renewal application fee;
267.30 	(3) $145 renewal of manager or instructor license, divided as follows:
268.1 	(i) $130 for each renewal license; and
268.2 	(ii) $15 for each renewal application fee;
268.3 	(4) $350 initial salon license, divided as follows:
268.4 	(i) $250 for each initial license; and
268.5 	(ii) $100 for each initial license application fee;
268.6 	(5) $225 renewal of salon license, divided as follows:
268.7 	(i) $175 for each renewal; and
268.8 	(ii) $50 for each renewal application fee;
268.9 	(6) $4,000 initial school license, divided as follows:
268.10 	(i) $3,000 for each initial license; and
268.11 	(ii) $1,000 for each initial license application fee; and
268.12 	(7) $2,500 renewal of school license, divided as follows:
268.13 	(i) $2,000 for each renewal; and
268.14 	(ii) $500 for each renewal application fee.
268.15 	(c) Penalties may be assessed in amounts up to the following:
268.16 	(1) reinspection fee, $150;
268.17 	(2) manager and owner with expired practitioner found on inspection, $150 each;
268.18 	(3) expired practitioner or instructor found on inspection, $200;
268.19 	(4) expired salon found on inspection, $500;
268.20 	(5) expired school found on inspection, $1,000;
268.21 	(6) failure to display current license, $100;
268.22 	(7) failure to dispose of single-use equipment, implements, or materials as provided 
268.23 	under section 155A.355, subdivision 1, $500;
268.24 	(8) use of prohibited razor-type callus shavers, rasps, or graters under section 155A.355, 
268.25 	subdivision 2, $500;
268.26 	(9) performing nail or cosmetology services in esthetician salon, or performing esthetician 
268.27 	or cosmetology services in a nail salon, $500;
269.1 	(10) owner and manager allowing an operator to work as an independent contractor, 
269.2 	$200;
269.3 	(11) operator working as an independent contractor, $100;
269.4 	(12) refusal or failure to cooperate with an inspection, $500;
269.5 	(13) practitioner late renewal fee, $45; and
269.6 	(14) salon or school late renewal fee, $50.
269.7 	(d) Administrative fees are as follows:
269.8 	(1) homebound service permit, $50 three-year fee;
269.9 	(2) name change, $20;
269.10 	(3) certification of licensure, $30 each;
269.11 	(4) duplicate license, $20;
269.12 	(5) special event permit, $75 per year;
269.13 	(6) registration of hair braiders, $20 per year;
269.14 	(7) (6) $100 for each temporary military license for a cosmetologist, nail technician, 
269.15 	esthetician, or advanced practice esthetician one-year fee;
269.16 	(8) (7) expedited initial individual license, $150;
269.17 	(9) (8) expedited initial salon license, $300;
269.18 	(10) (9) instructor continuing education provider approval, $150 each year; and
269.19 	(11) (10) practitioner continuing education provider approval, $150 each year.

269.20 	Sec. 52. Minnesota Statutes 2016, section 155A.28, is amended by adding a subdivision 
269.21 	to read:
269.22 		Subd. 5.Hair braiders exempt.  The practice of hair braiding is exempt from the 
269.23 	requirements of this chapter.

269.24 	Sec. 53. Minnesota Statutes 2016, section 155A.29, subdivision 1, is amended to read:
269.25 		Subdivision 1.Licensing. A person must not offer cosmetology services for compensation 
269.26 	unless the services are provided by a licensee in a licensed salon or as otherwise provided 
269.27 	in this section. Each salon must be licensed as a cosmetology salon, a nail salon, esthetician 
270.1 	salon, or advanced practice esthetician salon, or eyelash extension salon. A salon may hold 
270.2 	more than one type of salon license.

270.3 	Sec. 54. Minnesota Statutes 2016, section 155A.29, subdivision 6, is amended to read:
270.4 		Subd. 6.Exemption. The facility in which a person provides threading or eyelash 
270.5 	extension services and no other services requiring licensure by this chapter is exempt from 
270.6 	the requirement for a salon license under this section.

270.7 	Sec. 55. Minnesota Statutes 2016, section 240.01, is amended by adding a subdivision to 
270.8 	read:
270.9 		Subd. 18a.Racing or gaming-related vendor. "Racing or gaming-related vendor" 
270.10 	means any person or entity that manufactures, sells, provides, distributes, repairs, or maintains 
270.11 	equipment or supplies used at a Class A facility or provides services to a Class A facility 
270.12 	or Class B license holder that are directly related to the running of a horse race, simulcasting, 
270.13 	pari-mutuel betting, or card playing.

270.14 	Sec. 56. Minnesota Statutes 2016, section 240.02, subdivision 6, is amended to read:
270.15 		Subd. 6.Annual report. The commission shall on February 15 of each odd-numbered 
270.16 	year submit a report to the governor and legislature on its activities, organizational structure, 
270.17 	receipts and disbursements, and recommendations for changes in the laws relating to racing 
270.18 	and pari-mutuel betting.

270.19 	Sec. 57. Minnesota Statutes 2016, section 240.08, subdivision 5, is amended to read:
270.20 		Subd. 5.Revocation and suspension. (a) The commission may revoke a class C license 
270.21 	for a violation of law or rule which in the commission's opinion adversely affects the integrity 
270.22 	of horse racing in Minnesota, the public health, welfare, or safety, or for an intentional false 
270.23 	statement made in a license application.
270.24 	The commission may suspend a class C license for up to one year for a violation of law, 
270.25 	order or rule.
270.26 	The commission may delegate to its designated agents the authority to impose suspensions 
270.27 	of class C licenses, and the revocation or suspension of a class C license may be appealed 
270.28 	to the commission according to its rules.
270.29 	(b) A license revocation or suspension If the commission revokes or suspends a license
270.30 	for more than 90 180 days is, in lieu of appealing to the commission under paragraph (a), 
271.1 	the license holder has the right to request a contested case hearing under sections 14.57 to 
271.2 	14.69 of the Administrative Procedure Act and is in addition to criminal penalties imposed 
271.3 	for a violation of law or rule. chapter 14. The request must be made in writing to the 
271.4 	commission by certified mail or personal service. A request sent by certified mail must be 
271.5 	postmarked within ten days after the license holder receives the revocation or suspension 
271.6 	order from the commission. A request sent by personal service must be received by the 
271.7 	commission within ten days after the license holder receives the revocation or suspension 
271.8 	order from the commission. The commission may summarily suspend a license for more 
271.9 	than up to 90 days prior to a contested case hearing where it is necessary to ensure the 
271.10 	integrity of racing or to protect the public health, welfare, or safety. The license holder may 
271.11 	appeal a summary suspension by making a written request to the commission within five 
271.12 	calendar days after the license holder receives notice of the summary suspension. A contested 
271.13 	case hearing must be held within 30 ten days of the commission's receipt of the request for 
271.14 	appeal of a summary suspension and the administrative law judge's report must be issued 
271.15 	within 30 days from the close of the hearing record. In all cases involving summary 
271.16 	suspension the commission must issue its final decision within 30 days from receipt of the 
271.17 	report of the administrative law judge and subsequent exceptions and argument under section 
271.18 	14.61. to determine whether the license should remain suspended pending a final disciplinary 
271.19 	action.

271.20 	Sec. 58. Minnesota Statutes 2016, section 240.131, subdivision 7, is amended to read:
271.21 		Subd. 7.Payments to state. (a) A regulatory fee is imposed at the rate of one percent 
271.22 	of all amounts wagered by Minnesota residents with an authorized advance deposit wagering 
271.23 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
271.24 	provider must pay the fee to the commission no more than seven 15 days after the end of 
271.25 	the month in which the wager was made. Fees collected under this paragraph must be 
271.26 	deposited in the state treasury and credited to a racing and card-playing regulation account 
271.27 	in the special revenue fund and are appropriated to the commission to offset the costs 
271.28 	associated with regulating horse racing and pari-mutuel wagering in Minnesota.
271.29 	(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all 
271.30 	amounts wagered by Minnesota residents with an authorized advance deposit wagering 
271.31 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
271.32 	provider must pay the fee to the commission no more than seven 15 days after the end of 
271.33 	the month in which the wager was made. Fees collected under this paragraph must be 
271.34 	deposited in the state treasury and credited to a racing and card-playing regulation account 
272.1 	in the special revenue fund and are appropriated to the commission to offset the cost of 
272.2 	administering the breeders fund and promote horse breeding in Minnesota.

272.3 	Sec. 59. Minnesota Statutes 2016, section 240.22, is amended to read:
272.4 	240.22 FINES.
272.5 	(a) The commission shall by rule establish a schedule of civil fines for violations of laws 
272.6 	related to horse racing or of the commission's rules. The schedule must be based on and 
272.7 	reflect the culpability, frequency and severity of the violator's actions. The commission may 
272.8 	impose a fine from this schedule on a licensee for a violation of those rules or laws relating 
272.9 	to horse racing. The fine is in addition to any criminal penalty imposed for the same violation. 
272.10 	Fines imposed by the commission must be paid to the commission and except as provided 
272.11 	in paragraph (c), forwarded to the commissioner of management and budget for deposit in 
272.12 	the state treasury and credited to a racing and card-playing regulation account in the special 
272.13 	revenue fund and appropriated to the commission to distribute in the form of grants, contracts, 
272.14 	or expenditures to support racehorse adoption, retirement, and repurposing.
272.15 	(b) If the commission issues a fine in excess of $5,000, the license holder has the right 
272.16 	to request a contested case hearing under chapter 14, to be held as set forth in Minnesota 
272.17 	Rules, chapter 1400. The appeal of a fine must be made in writing to the commission by 
272.18 	certified mail or personal service. An appeal sent by certified mail must be postmarked 
272.19 	within ten days after the license holder receives the fine order from the commission. An 
272.20 	appeal sent by personal service must be received by the commission within ten days after 
272.21 	the license holder receives the fine order from the commission.
272.22 	(c) If the commission is the prevailing party in a contested case proceeding, the 
272.23 	commission may recover, from amounts to be forwarded under paragraph (a), reasonable 
272.24 	attorney fees and costs associated with the contested case.

272.25 	Sec. 60. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
272.26 		Subdivision 1.Biennial report. The commissioner shall report to the legislature by 
272.27 	March 1 of each odd-numbered year on the overall incidence of the income tax, sales and 
272.28 	excise taxes, and property tax. The report shall present information on the distribution of 
272.29 	the tax burden as follows: (1) for the overall income distribution, using a systemwide 
272.30 	incidence measure such as the Suits index or other appropriate measures of equality and 
272.31 	inequality; (2) by income classes, including at a minimum deciles of the income distribution; 
272.32 	and (3) by other appropriate taxpayer characteristics. The report must also include information 
272.33 	on the distribution of the burden of federal taxes borne by Minnesota residents.

273.1 	Sec. 61. Minnesota Statutes 2016, section 340A.412, is amended by adding a subdivision 
273.2 	to read:
273.3 		Subd. 12a.Wine transfers. Notwithstanding the provisions of subdivision 12, the holder 
273.4 	of an off-sale retail intoxicating liquor license may transfer wine from one licensed premises 
273.5 	to another provided that:
273.6 	(1) the license for the transferring and receiving premises are held by the same licensee; 
273.7 	and
273.8 	(2) only one transfer is made from a licensed premises in a three-month period.

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

273.10 	Sec. 62. Minnesota Statutes 2016, section 349A.06, subdivision 11, is amended to read:
273.11 		Subd. 11.Cancellation, suspension, and refusal to renew contracts or locations. (a) 
273.12 	The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from 
273.13 	selling lottery tickets at a business location who:
273.14 	(1) has been convicted of a felony or gross misdemeanor;
273.15 	(2) has committed fraud, misrepresentation, or deceit;
273.16 	(3) has provided false or misleading information to the lottery; or
273.17 	(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.
273.18 	(b) The director may cancel, suspend, or refuse to renew the contract of any lottery 
273.19 	retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:
273.20 	(1) changes business location;
273.21 	(2) fails to account for lottery tickets received or the proceeds from tickets sold;
273.22 	(3) fails to remit funds to the director in accordance with the director's rules;
273.23 	(4) violates a law or a rule or order of the director;
273.24 	(5) fails to comply with any of the terms in the lottery retailer's contract;
273.25 	(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;
273.26 	(7) in the opinion of the director fails to maintain a sufficient sales volume to justify 
273.27 	continuation as a lottery retailer; or
273.28 	(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within 
273.29 	a two-year period; or
274.1 	(9) has violated the rules adopted pursuant to subdivision 6, clause (1), requiring a lottery 
274.2 	retailer to retain appropriate amounts from gross receipts from the sale of lottery tickets in 
274.3 	order to pay prizes to holders of winning tickets, three or more times within a one-year 
274.4 	period.
274.5 	(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract 
274.6 	or prohibit a lottery retailer from selling lottery tickets at a business location if there is a 
274.7 	material change in any of the factors considered by the director under subdivision 2.
274.8 	(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer 
274.9 	from selling lottery tickets at a business location under this subdivision is a contested case 
274.10 	under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a 
274.11 	violation of law or rule.
274.12 	(e) The director may temporarily suspend a contract or temporarily prohibit a lottery 
274.13 	retailer from selling lottery tickets at a business location without notice for any of the reasons 
274.14 	specified in this subdivision provided that a hearing is conducted within seven days after a 
274.15 	request for a hearing is made by a lottery retailer. Within 20 days after receiving the 
274.16 	administrative law judge's report, the director shall issue an order vacating the temporary 
274.17 	suspension or prohibition or making any other appropriate order. If no hearing is requested 
274.18 	within 30 days of the temporary suspension or prohibition taking effect, the suspension or 
274.19 	prohibition becomes permanent unless the director vacates or modifies the order.
274.20 	(f) A lottery retailer whose contract was solely canceled, suspended, or not renewed 
274.21 	pursuant to paragraph (b), clause (9), may petition the director to reinstate a canceled or 
274.22 	suspended contract, or enter into a new contract, after two years have passed since the order 
274.23 	took effect.

274.24 	Sec. 63. Minnesota Statutes 2016, section 424B.20, subdivision 4, is amended to read:
274.25 		Subd. 4.Benefit trust fund establishment. (a) After the settlement of nonbenefit legal 
274.26 	obligations of the special fund of the volunteer firefighters relief association under subdivision 
274.27 	3, the board of the relief association shall transfer the remaining assets of the special fund, 
274.28 	as securities or in cash, as applicable, to the chief financial official of the municipality in 
274.29 	which the associated fire department was located if the fire department was a municipal fire 
274.30 	department or to the chief financial official of the municipality with the largest population 
274.31 	served by the fire department if the fire department was an independent nonprofit firefighting 
274.32 	corporation. The board shall also compile a schedule of the relief association members to 
274.33 	whom a service pension is or will be owed, any beneficiary to whom a benefit is owed, the 
274.34 	amount of the service pension or benefit payable based on the applicable bylaws and state 
275.1 	law and the service rendered to the date of the dissolution, and the date on which the pension 
275.2 	or benefit would first be payable under the bylaws of the relief association and state law.
275.3 	(b) The municipality in which is located a volunteer firefighters relief association that 
275.4 	is dissolving under this section shall establish a separate account in the municipal treasury 
275.5 	which must function as a trust fund for members of the volunteer firefighters relief association 
275.6 	and their beneficiaries to whom the volunteer firefighters relief association owes a service 
275.7 	pension or other benefit under the bylaws of the relief association and state law. Upon proper 
275.8 	application, on or after the initial date on which the service pension or benefit is payable, 
275.9 	the municipal treasurer shall pay the pension or benefit due, based on the schedule prepared 
275.10 	under paragraph (a) and the other records of the dissolved relief association. The trust fund 
275.11 	under this section must be invested and managed consistent with chapter 356A and section 
275.12 	424A.095.
275.13 	(c) Upon payment of the last service pension or benefit due and owing, any remaining 
275.14 	assets in the trust fund cancel toas follows:
275.15 	(1) if the municipality was required to make contributions to the fund under chapter 
275.16 	424A at any time during the ten years preceding the date of dissolution, the remaining assets 
275.17 	cancel to the general fund of the municipality; or
275.18 	(2) if the municipality was not required to make contributions to the fund under chapter 
275.19 	424A at any time during the ten years preceding the date of dissolution, the remaining assets 
275.20 	cancel to the general fund of the state.
275.21 	(d) If the special fund of the volunteer firefighters relief association had an unfunded 
275.22 	actuarial accrued liability upon dissolution, the municipality is liable for that unfunded 
275.23 	actuarial accrued liability.

275.24 	Sec. 64. Minnesota Statutes 2016, section 473.123, subdivision 1, is amended to read:
275.25 		Subdivision 1.Creation; membership. (a) A Metropolitan Council with jurisdiction 
275.26 	in the metropolitan area is established as a public corporation and political subdivision of 
275.27 	the state. It shall be under the supervision and control of 17 28 members, all of whom shall 
275.28 	be residents of the metropolitan area. and who shall be appointed as follows:
275.29 	(1) a county commissioner from each of Anoka, Carver, Dakota, Ramsey, Scott, and 
275.30 	Washington Counties, appointed by the respective county boards;
275.31 	(2) two county commissioners from Hennepin County appointed by the county board, 
275.32 	one of whom must represent a ward that is predominantly located within the city of 
276.1 	Minneapolis, and one of whom must represent a ward that does not include the city of 
276.2 	Minneapolis;
276.3 	(3) a local elected official appointed from each Metropolitan Council district by the 
276.4 	municipal committee for the council district established in subdivision 2b;
276.5 	(4) the commissioner of transportation or the commissioner's designee;
276.6 	(5) one person to represent nonmotorized transportation, appointed by the commissioner 
276.7 	of transportation;
276.8 	(6) one person to represent freight transportation, appointed by the commissioner of 
276.9 	transportation; and
276.10 	(7) one person to represent public transit, appointed by the commissioner of 
276.11 	transportation.
276.12 	(b) The local elected offices identified in paragraph (a) are compatible with the office 
276.13 	of a Metropolitan Council member.
276.14 	(c) Notwithstanding any change to the definition of metropolitan area in section 473.121, 
276.15 	subdivision 2, the jurisdiction of the Metropolitan Council is limited to the seven-county 
276.16 	metropolitan area.

276.17 	EFFECTIVE DATE. Paragraph (c) is effective the day following final enactment.

276.18 	Sec. 65. Minnesota Statutes 2016, section 473.123, subdivision 2a, is amended to read:
276.19 		Subd. 2a.Terms. (a) Following each apportionment of council districts, as provided 
276.20 	under subdivision 3a, council members must be appointed from newly drawn districts as 
276.21 	provided in subdivision 3a. Each council member, other than the chair, must reside in the 
276.22 	council district represented. Each council district must be represented by one member of 
276.23 	the council. The terms of members end with the term of the governor, except that all terms 
276.24 	expire on the effective date of the next apportionment. A member serves at the pleasure of 
276.25 	the governor.the municipal committee for each council district shall appoint a local elected 
276.26 	official who resides in the district to serve on the Metropolitan Council for a four-year term. 
276.27 	The terms of members appointed by municipal committees are staggered as follows: members 
276.28 	representing an odd-numbered district have terms ending the first Monday in January of 
276.29 	the year ending in the numeral "1" and members representing an even-numbered district 
276.30 	have terms ending the first Monday in January in the year ending in the numeral "3." 
276.31 	Thereafter, the term of each member is four years, with terms ending the first Monday in 
276.32 	January, except that all terms expire on the effective date of the next apportionment. A 
277.1 	member's position on the Metropolitan Council becomes vacant if the member ceases to be 
277.2 	a local elected official or as provided in chapter 351, and any vacancy must be filled as soon 
277.3 	as practicable for the unexpired term in the same manner as the initial appointment. A 
277.4 	member shall continue to serve the member's district until a successor is appointed and 
277.5 	qualified; except that, following each apportionment, the member shall continue to serve 
277.6 	at large until the governor appoints 16 council members, onemunicipal committee for the 
277.7 	council district appoints a member from each of the newly drawn council districtsdistrict 
277.8 	as provided under subdivision 3a, to serve terms as provided under this section. The 
277.9 	appointment to the council must be made by the first Monday in March of the year in which 
277.10 	the term ends.
277.11 	(b) The terms of members appointed by county boards are staggered as follows: members 
277.12 	representing the counties of Anoka, Dakota, Ramsey, and Scott have terms ending the first 
277.13 	Monday in January of the year ending in the numeral "1," and members representing the 
277.14 	counties of Carver, Hennepin, and Washington have terms ending the first Monday in 
277.15 	January of the year ending in the numeral "3." Thereafter, the term for each member is four 
277.16 	years. A member's position on the Metropolitan Council becomes vacant if the member 
277.17 	ceases to be a local elected official or as provided in chapter 351, and any vacancy must be 
277.18 	filled as soon as practicable for the unexpired term in the same manner as the initial 
277.19 	appointment.
277.20 	(c) An individual appointed by the commissioner of transportation under subdivision 1 
277.21 	serves at the pleasure of the appointing authority.

277.22 	Sec. 66. Minnesota Statutes 2016, section 473.123, is amended by adding a subdivision 
277.23 	to read:
277.24 		Subd. 2b.Municipal committee in each council district. The governing body of each 
277.25 	home rule charter or statutory city and town in each Metropolitan Council district shall 
277.26 	appoint a member to serve on a municipal committee for the council district. If a city or 
277.27 	town is in more than one council district, the governing body must appoint a member to 
277.28 	serve on each council district's municipal committee. A member appointed to a council 
277.29 	district's municipal committee must reside in the council district. The municipal committee 
277.30 	must meet at least quarterly to discuss issues relating to the Metropolitan Council. Municipal 
277.31 	committee meetings are subject to the Minnesota Open Meeting Law, chapter 13D.

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

278.1 	Sec. 67. Minnesota Statutes 2016, section 473.123, subdivision 3a, is amended to read:
278.2 		Subd. 3a.Redistricting. The legislature shall redraw the boundaries of the council 
278.3 	districts after each decennial federal census so that each district has substantially equal 
278.4 	population. Redistricting is effective in the year ending in the numeral "3." Within 60 days 
278.5 	after a redistricting plan takes effect, the governor municipal committees shall appoint 
278.6 	members from the newly drawn districts to serve terms as provided under subdivision 2a.

278.7 	Sec. 68. Minnesota Statutes 2016, section 473.123, subdivision 4, is amended to read:
278.8 		Subd. 4.Chair; appointment, officers, selection; duties and compensation. (a) The 
278.9 	chair of the Metropolitan Council shall be appointed selected by the governor as the 17th 
278.10 	voting member thereof by and with the advice and consent of the senate to serve at the 
278.11 	pleasure of the governor to represent the metropolitan area at large. Senate confirmation 
278.12 	shall be as provided by section 15.066 and from among the members of the Metropolitan 
278.13 	Council. The chair shall serve at the pleasure of the council. In addition to any compensation 
278.14 	as a local elected official, the council shall pay the chair $40,000 per year plus reimbursement 
278.15 	of actual and necessary expenses as approved by the council.
278.16 	The chair of the Metropolitan Council shall, if present, preside at meetings of the council, 
278.17 	have the primary responsibility for meeting with local elected officials, serve as the principal 
278.18 	legislative liaison, present to the governor and the legislature, after council approval, the 
278.19 	council's plans for regional governance and operations, serve as the principal spokesperson 
278.20 	of the council, and perform other duties assigned by the council or by law.
278.21 	(b) The Metropolitan Council shall elect other officers as it deems necessary for the 
278.22 	conduct of its affairs for a one-year term. A secretary and treasurer need not be members 
278.23 	of the Metropolitan Council. Meeting times and places shall be fixed by the Metropolitan 
278.24 	Council and special meetings may be called by a majority of the members of the Metropolitan 
278.25 	Council or by the chair. The chair and In addition to any compensation as a local elected 
278.26 	official, each Metropolitan Council member shall be reimbursed for actual and necessary 
278.27 	expenses as approved by the council.
278.28 	(c) Each member of the council shall attend and participate in council meetings and meet 
278.29 	regularly with local elected officials and legislative members from the council member's 
278.30 	district. Each council member shall serve on at least one division committee for 
278.31 	transportation, environment, or community development.
279.1 	(d) In the performance of its duties the Metropolitan Council may adopt policies and 
279.2 	procedures governing its operation, establish committees, and, when specifically authorized 
279.3 	by law, make appointments to other governmental agencies and districts.

279.4 	Sec. 69. Minnesota Statutes 2016, section 473.123, is amended by adding a subdivision 
279.5 	to read:
279.6 		Subd. 9.Authority to vote; quorum; votes required for action. (a) The members 
279.7 	appointed by the counties and municipal committees may vote on all matters before the 
279.8 	council. The commissioner of transportation or the commissioner's designee and the three 
279.9 	members appointed by the commissioner may vote only on matters in which the council is 
279.10 	acting as the metropolitan planning organization for the region as provided in section 
279.11 	473.146.
279.12 	(b) A quorum is a majority of the members permitted to vote on a matter. If a quorum 
279.13 	is present, the council may act on a majority vote of the members present, except:
279.14 	(1) if a quorum is present, the council may adopt its levy only if at least 60 percent of 
279.15 	the members present vote in favor of the levy; and
279.16 	(2) if a quorum is present, the council may adopt a metropolitan system plan or plan 
279.17 	amendment only if at least 60 percent of the members present vote in favor of its adoption.

279.18 	EFFECTIVE DATE; TRANSITION; APPLICATION. This section is effective 
279.19 	January 1, 2019, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
279.20 	Scott, and Washington. Metropolitan Council members serving on the effective date of this 
279.21 	section shall continue to serve until members are appointed from districts by the municipal 
279.22 	committees as provided in this article.

279.23 	Sec. 70. Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:
279.24 		Subd. 3.Development guide: transportation. The transportation chapter must include 
279.25 	policies relating to all transportation forms and be designed to promote the legislative 
279.26 	determinations, policies, and goals set forth in section 473.371. In addition to the 
279.27 	requirements of subdivision 1 regarding the contents of the policy plan, the nontransit 
279.28 	element of the transportation chapter must include the following:
279.29 	(1) a statement of the needs and problems of the metropolitan area with respect to the 
279.30 	functions covered, including the present and prospective demand for and constraints on 
279.31 	access to regional business concentrations and other major activity centers and the constraints 
279.32 	on and acceptable levels of development and vehicular trip generation at such centers;
280.1 	(2) the objectives of and the policies to be forwarded by the policy plan;
280.2 	(3) a general description of the physical facilities and services to be developed;
280.3 	(4) a statement as to the general location of physical facilities and service areas;
280.4 	(5) a general statement of timing and priorities in the development of those physical 
280.5 	facilities and service areas;
280.6 	(6) a detailed statement, updated every two years, of timing and priorities for 
280.7 	improvements and expenditures needed on the metropolitan highway system;
280.8 	(7) a general statement on the level of public expenditure appropriate to the facilities; 
280.9 	and
280.10 	(8) a long-range assessment of air transportation trends and factors that may affect airport 
280.11 	development in the metropolitan area and policies and strategies that will ensure a 
280.12 	comprehensive, coordinated, and timely investigation and evaluation of alternatives for 
280.13 	airport development.
280.14 	The council shall develop the nontransit element in consultation with the transportation 
280.15 	advisory board and the Metropolitan Airports Commission and cities having an airport 
280.16 	located within or adjacent to its corporate boundaries. The council shall also take into 
280.17 	consideration the airport development and operations plans and activities of the commission. 
280.18 	The council shall transmit the results to the state Department of Transportation.

280.19 	EFFECTIVE DATE; APPLICATION. This section is effective January 1, 2019, and 
280.20 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

280.21 	Sec. 71. Minnesota Statutes 2016, section 473.146, subdivision 4, is amended to read:
280.22 		Subd. 4.Transportation planning. (a) The Metropolitan Council is the designated 
280.23 	planning agency for any long-range comprehensive transportation planning required by 
280.24 	section 134 of the Federal Highway Act of 1962, Section 4 of Urban Mass Transportation 
280.25 	Act of 1964 and Section 112 of Federal Aid Highway Act of 1973 and other federal 
280.26 	transportation laws. The council shall assure administration and coordination of transportation 
280.27 	planning with appropriate state, regional and other agencies, counties, and municipalities.
280.28 	(b) The council shall establish an advisory body consisting of citizens and representatives 
280.29 	of municipalities, counties, and state agencies in fulfillment of the planning responsibilities 
280.30 	of the council. The membership of the advisory body must consist of:
280.31 	(1) the commissioner of transportation or the commissioner's designee;
281.1 	(2) the commissioner of the Pollution Control Agency or the commissioner's designee;
281.2 	(3) one member of the Metropolitan Airports Commission appointed by the commission;
281.3 	(4) one person appointed by the council to represent nonmotorized transportation;
281.4 	(5) one person appointed by the commissioner of transportation to represent the freight 
281.5 	transportation industry;
281.6 	(6) two persons appointed by the council to represent public transit;
281.7 	(7) ten elected officials of cities within the metropolitan area, including one representative 
281.8 	from each first-class city, appointed by the Association of Metropolitan Municipalities;
281.9 	(8) one member of the county board of each county in the seven-county metropolitan 
281.10 	area, appointed by the respective county boards;
281.11 	(9) eight citizens appointed by the council, one from each council precinct;
281.12 	(10) one elected official from a city participating in the replacement service program 
281.13 	under section 473.388, appointed by the Suburban Transit Association; and
281.14 	(11) one member of the council, appointed by the council.
281.15 	(c) The council shall appoint a chair from among the members of the advisory body.

281.16 	EFFECTIVE DATE; APPLICATION. This section is effective January 1, 2019, and 
281.17 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

281.18 	Sec. 72. [474A.22] FORT SNELLING NATIONAL LANDMARK 
281.19 	REDEVELOPMENT.
281.20 		Subdivision 1.Fort Snelling bonding authority allocation. Notwithstanding any law, 
281.21 	rule, or policy to the contrary, the commissioner may reserve bonding authority allocated 
281.22 	to the Housing Finance Agency entitlement allocation during allocation year 2019 or 2020 
281.23 	for issuance of residential rental project bonds for purposes of the rehabilitation and 
281.24 	renovation of the Fort Snelling Upper Post as a qualified residential rental project as provided 
281.25 	in this section and section 474A.047. The qualified residential rental project shall be required 
281.26 	to enter into a minimum 25-year agreement with the issuer to provide the applicable rental 
281.27 	rates and incomes. The commissioner shall determine the needed amount of the bonding 
281.28 	allocation to qualify for low-income housing tax credits for the project, as selected by the 
281.29 	commissioner of natural resources, and may provide a preliminary resolution to allocate 
281.30 	the bonds over one or two years to allow the applicable developer to obtain necessary 
281.31 	historical and other approvals and be assured of available bond allocation.
282.1 		Subd. 2.Issuance; other issuer. The commissioner may either issue the obligation 
282.2 	directly or may allocate the bonds under subdivision 1 to a suitable other issuer to issue the 
282.3 	obligations. Any such suballocation shall be subject to an agreement that provides for the 
282.4 	timing, process, and use for the bonds. Any other issuer receiving this allocation shall be 
282.5 	authorized to act as the issuer regardless of the geographical area of the other issuer. In no 
282.6 	event shall the bonds issued under this section be guaranteed as to payment by the state or 
282.7 	the other issuer.
282.8 		Subd. 3.Failure to permanently issue. In the event the bonds reserved or allocated 
282.9 	under this section are not permanently issued by December 1, 2019, or December 1, 2020, 
282.10 	the bonding authority shall be allocated to the Housing Finance Agency for issuance for a 
282.11 	qualified residential rental project. The commissioner may utilize the bonds allocated under 
282.12 	this section for an alternative use, consistent with this chapter, in the event the commissioner 
282.13 	determines no project at the Fort Snelling Upper Post will proceed in a timely fashion.
282.14 		Subd. 4.Low-income housing tax credits. In the event of issuance of the bonds as 
282.15 	provided in this section for a qualified residential rental project, notwithstanding any law, 
282.16 	rule, or policy, the Housing Finance Agency shall approve the project for low-income 
282.17 	housing tax credits subject to only the minimum requirements as required under section 42 
282.18 	of the Internal Revenue Code, as amended, and shall be deemed meeting the qualified 
282.19 	allocation plan in effect at that time. Any such approval shall be timely granted to allow the 
282.20 	project to proceed.

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

282.22 	Sec. 73. Minnesota Statutes 2017 Supplement, section 477A.03, subdivision 2b, is amended 
282.23 	to read:
282.24 		Subd. 2b.Counties. (a) For aids payable in 2018 through 2024, the total aid payable 
282.25 	under section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be 
282.26 	allocated as required under Laws 2014, chapter 150, article 4, section 6. For aids payable 
282.27 	in 2025 and thereafter, the total aid payable under section 477A.0124, subdivision 3, is 
282.28 	$100,795,000. Each calendar year, $500,000 of this appropriation shall be retained by the 
282.29 	commissioner of revenue to make reimbursements to the commissioner of management and 
282.30 	budget for payments made under section 611.27. The reimbursements shall be to defray the 
282.31 	additional costs associated with court-ordered counsel under section 611.27. Any retained 
282.32 	amounts not used for reimbursement in a year shall be included in the next distribution of 
282.33 	county need aid that is certified to the county auditors for the purpose of property tax 
282.34 	reduction for the next taxes payable year.
283.1 	(b) For aids payable in 2018 and thereafter, the total aid under section 477A.0124, 
283.2 	subdivision 4, is $130,873,444. The commissioner of revenue shall transfer to the 
283.3 	commissioner of management and budget $207,000 annually for the cost of preparation of 
283.4 	local impact notes as required by section 3.987, and other local government activities to the 
283.5 	Legislative Coordinating Commission for use by the Legislative Budget Office.
283.6 	The commissioner of revenue shall transfer to the commissioner of education $7,000 
283.7 	annually for the cost of preparation of local impact notes for school districts as required by 
283.8 	section 3.987. The commissioner of revenue shall deduct the amounts transferred under this 
283.9 	paragraph from the appropriation under this paragraph. The amounts transferred are 
283.10 	appropriated to the commissioner of management and budget and the commissioner of 
283.11 	education respectively.

283.12 	EFFECTIVE DATE. This section is effective January 8, 2019.

283.13 	Sec. 74. Minnesota Statutes 2016, section 480.15, is amended by adding a subdivision to 
283.14 	read:
283.15 		Subd. 13.Emergency operations and continuity of the judicial branch. The court 
283.16 	administrator shall assist the Supreme Court in developing an emergency operations and 
283.17 	continuity of government plan, as required by section 12.402.

283.18 	Sec. 75. Laws 2017, First Special Session chapter 4, article 2, section 1, the effective date, 
283.19 	is amended to read:

283.20 	EFFECTIVE DATE. This section is effective January 8, 2019 July 1, 2018.

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

283.22 	Sec. 76. Laws 2017, First Special Session chapter 4, article 2, section 3, the effective date, 
283.23 	is amended to read:

283.24 	EFFECTIVE DATE. Except where otherwise provided by law, this section is effective 
283.25 	January 8, 2019 July 1, 2018.

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

283.27 	Sec. 77. Laws 2017, First Special Session chapter 4, article 2, section 58, the effective 
283.28 	date, is amended to read:

283.29 	EFFECTIVE DATE. This section is effective January 8, 2019. July 1, 2018. The 
283.30 	contract required under this section must be executed no later than November 1, 2018, and 
284.1 	must provide for transfer of operational control of the fiscal note tracking system to the 
284.2 	Legislative Budget Office effective December 15, 2018.

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

284.4 	Sec. 78. TRANSFER OF DUTIES; RESULTS FIRST PROGRAM EVALUATIONS.
 284.5 	Responsibilities of the commissioner of management and budget to develop and 
284.6 	implement a return on taxpayer investment methodology using the Pew-MacArthur Results 
284.7 	First framework, as first authorized by Laws 2015, chapter 77, article 1, section 13, including 
284.8 	the advisory committee established by the commissioner to assist in implementing these 
284.9 	responsibilities, are transferred from the commissioner to the Legislative Budget Office 
284.10 	established in Minnesota Statutes, section 3.8853. Minnesota Statutes, section 15.039, 
284.11 	applies to the transfer of these responsibilities. The commissioner of administration may, 
284.12 	with the approval of the governor, issue reorganization orders under Minnesota Statutes, 
284.13 	section 16B.37, as necessary to complete the transfer of duties required by this section.

284.14 	EFFECTIVE DATE. This section is effective January 8, 2019.

284.15 	Sec. 79. TRANSFER OF DUTIES; DATA PRACTICES AND OPEN MEETINGS 
284.16 	LAW.
 284.17 	(a) Responsibilities of the commissioner of administration under Minnesota Statutes, 
284.18 	sections 13.06, 13.07, 13.072, and 13.073, and any other law providing general oversight 
284.19 	responsibilities related to operation of the Minnesota Government Data Practices Act and 
284.20 	the Minnesota Open Meeting Law, are transferred from the commissioner to the chief 
284.21 	administrative law judge in the Office of Administrative Hearings. Minnesota Statutes, 
284.22 	section 15.039, applies to the transfer of these responsibilities, except that Minnesota Statutes, 
284.23 	section 15.039, subdivision 7, does not apply. The commissioner may, with the approval 
284.24 	of the governor, issue reorganization orders under Minnesota Statutes, section 16B.37, as 
284.25 	necessary to complete the transfer of duties consistent with the requirements of this section.
284.26 	(b) Nothing in this section relieves the commissioner of administration from the duty to 
284.27 	comply with Minnesota Statutes, chapter 13, or any other applicable law related to data 
284.28 	collected, created, or maintained by the commissioner, or to comply with Minnesota Statutes, 
284.29 	chapter 13D, related to meetings conducted by the commissioner.

285.1 	Sec. 80. ENTERPRISE SOFTWARE PROJECTS; RECODIFICATION OF 
285.2 	INFORMATION TECHNOLOGY STATUTES.
 285.3 		Subdivision 1.Enterprise software projects. (a) Except as provided in paragraph (b), 
285.4 	an enterprise software project must be either purchased or built through a vendor contract. 
285.5 	Vendors must be selected as provided by Minnesota Statutes, chapter 16C. In addition to 
285.6 	the requirements of that chapter, a contract required by this section must include terms that 
285.7 	provide:
285.8 	(1) a payment schedule that is conditioned on the vendor's demonstration of satisfactory 
285.9 	progress toward project completion; and
285.10 	(2) a requirement that, upon 30 days written notice to the vendor, the contracting agency 
285.11 	must terminate a contract and the vendor must refund to the agency all amounts paid to 
285.12 	date, if the vendor fails to demonstrate satisfactory progress towards project completion. 
285.13 	The contract terms must permit the contracting agency to fulfill its obligations under this 
285.14 	clause without penalty.
285.15 	(b) Paragraph (a) does not apply to an enterprise software project if the law appropriating 
285.16 	money for the project expressly directs the state chief information officer to design or build 
285.17 	the project in-house, or otherwise contains an exemption from paragraph (a) by specific 
285.18 	reference to this subdivision.
285.19 		Subd. 2.Recodification recommendations. (a) The state chief information officer must 
285.20 	recommend, in consultation with the revisor of statutes and other appropriate legislative 
285.21 	staff, legislation to clarify and reorganize Minnesota Statutes, chapter 16E, and any other 
285.22 	applicable laws that relate to state information technology services or the scope of duties 
285.23 	of the Office of MN.IT Services. Except for implementation of the requirements of 
285.24 	subdivision 1, the recommendations must not be intended to change the meaning or prior 
285.25 	interpretation of any law.
285.26 	(b) The recommended legislation must be submitted to the chairs and ranking minority 
285.27 	members of the house of representatives and senate committees with jurisdiction over state 
285.28 	government finance no later than January 15, 2019.

285.29 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
285.30 	restrictions on enterprise software projects, as described in subdivision 1, apply to projects 
285.31 	newly approved for development on or after the effective date of this section.

286.1 	Sec. 81. STUDY OF VALUATION METHOD OF PIPELINE OPERATING 
286.2 	PROPERTY.
 286.3 	(a) The commissioner of revenue shall study and prepare a report on the current methods 
286.4 	used to value pipeline operating property in the state of Minnesota. The commissioner must 
286.5 	enter a contract with a consultant to assist in completing the study and preparing the report.
286.6 	(b) The report must:
286.7 	(1) describe, in detail, prior and current methods used to value pipeline operating property 
286.8 	in Minnesota;
286.9 	(2) evaluate whether the current methods used produce an accurate estimate of market 
286.10 	value;
286.11 	(3) compile and explain, in detail, the number of state-assessed pipeline valuations that 
286.12 	have been appealed in the last 20 years, and the extent to which the market value was 
286.13 	increased or reduced, by agreement, settlement, or judgment;
286.14 	(4) evaluate the extent to which host political subdivisions and communities are 
286.15 	adequately compensated under the existing Minnesota property tax system for the external 
286.16 	costs imposed by pipeline systems;
286.17 	(5) describe, analyze, and compare the methods used to value pipeline operating property 
286.18 	in border states; and
286.19 	(6) make recommendations and prepare legislation on improvements or alternative 
286.20 	valuation methods that produce a more accurate estimate of market value.
286.21 	(c) The commissioner shall report the findings of the study to the committees of the 
286.22 	house of representatives and senate having jurisdiction over taxes by February 15, 2019, 
286.23 	and file the report as required by Minnesota Statutes, section 3.195.

286.24 	Sec. 82. NORDIC WORLD CUP SKI CHAMPIONSHIP.
 286.25 	(a) Upon request of U.S. Ski and Snowboard, The Loppet Foundation, or other affiliated 
286.26 	organization, the Minnesota Amateur Sports Commission must support the preparation and 
286.27 	submission of a competitive bid to host an International Ski Federation Nordic World Cup 
286.28 	Ski Championship event in Minnesota. If the event is awarded, the commission must partner 
286.29 	with the organizing committee as an event host. Commission activities may include but are 
286.30 	not limited to assisting in the development of public-private partnerships to support the 
286.31 	event; soliciting sponsors; participating in public outreach activities; permitting the 
287.1 	commission's facilities to be developed and used as event venues; and providing other 
287.2 	administrative, technical, logistical, or financial support, within available resources.
287.3 	(b) Within 30 days after a bid is submitted and, if an event is awarded to Minnesota as 
287.4 	a host, within 30 days after receiving notice of the award, the commission must notify the 
287.5 	chairs and ranking minority members of the legislative committees with jurisdiction over 
287.6 	the commission. The notification must describe the commission's work in support of the 
287.7 	event and indicate whether the commission anticipates seeking supplemental state or local 
287.8 	funds or other public resources to continue that work.

287.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
287.10 	expires upon conclusion of a Nordic World Cup Ski Championship event hosted in 
287.11 	Minnesota.

287.12 	Sec. 83. CERTAIN VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION 
287.13 	SERVICE PENSIONS.
 287.14 	(a) As used in this section, "qualifying volunteer firefighters relief association" means 
287.15 	a volunteer firefighters relief association with a funding ratio of greater than 100 percent 
287.16 	as of the most recent fiscal year end, and which provides a lump sum pension benefit based 
287.17 	on a lump sum pension amount equal to $9,500 or more, as of the effective date of this 
287.18 	section.
287.19 	(b) Notwithstanding any provision of Minnesota Statutes, section 424A.02, subdivision 
287.20 	3, paragraph (d), to the contrary, the maximum lump-sum pension amount for each year of 
287.21 	service credited that may be provided for in the bylaws of a qualifying volunteer firefighters 
287.22 	relief association is the maximum service pension figure corresponding to the average 
287.23 	amount of available financing per active covered firefighter for the applicable specified 
287.24 	period:

287.25
287.26287.27	Minimum Average Amount of Available Financing 
per Firefighter
	Maximum Lump-Sum Service 
Pension Amount Payable for Each 
Year of Service
	
287.28	$ ...
		$ 10
		
287.29	11
		20
		
287.30	16
		30
		
287.31	23
		40
		
287.32	27
		50
		
287.33	32
		60
		
287.34	43
		80
		
287.35	54
		100
		
288.1	65
		120
		
288.2	77
		140
		
288.3	86
		160
		
288.4	97
		180
		
288.5	108
		200
		
288.6	131
		240
		
288.7	151
		280
		
288.8	173
		320
		
288.9	194
		360
		
288.10	216
		400
		
288.11	239
		440
		
288.12	259
		480
		
288.13	281
		520
		
288.14	302
		560
		
288.15	324
		600
		
288.16	347
		640
		
288.17	367
		680
		
288.18	389
		720
		
288.19	410
		760
		
288.20	432
		800
		
288.21	486
		900
		
288.22	540
		1000
		
288.23	594
		1100
		
288.24	648
		1200
		
288.25	702
		1300
		
288.26	756
		1400
		
288.27	810
		1500
		
288.28	864
		1600
		
288.29	918
		1700
		
288.30	972
		1800
		
288.31	1026
		1900
		
288.32	1080
		2000
		
288.33	1134
		2100
		
288.34	1188
		2200
		
288.35	1242
		2300
		
288.36	1296
		2400
		
288.37	1350
		2500
		
288.38	1404
		2600
		
289.1	1458
		2700
		
289.2	1512
		2800
		
289.3	1566
		2900
		
289.4	1620
		3000
		
289.5	1672
		3100
		
289.6	1726
		3200
		
289.7	1753
		3250
		
289.8	1780
		3300
		
289.9	1820
		3375
		
289.10	1834
		3400
		
289.11	1888
		3500
		
289.12	1942
		3600
		
289.13	1996
		3700
		
289.14	2023
		3750
		
289.15	2050
		3800
		
289.16	2104
		3900
		
289.17	2158
		4000
		
289.18	2212
		4100
		
289.19	2265
		4200
		
289.20	2319
		4300
		
289.21	2373
		4400
		
289.22	2427
		4500
		
289.23	2481
		4600
		
289.24	2535
		4700
		
289.25	2589
		4800
		
289.26	2643
		4900
		
289.27	2697
		5000
		
289.28	2751
		5100
		
289.29	2805
		5200
		
289.30	2859
		5300
		
289.31	2913
		5400
		
289.32	2967
		5500
		
289.33	3021
		5600
		
289.34	3075
		5700
		
289.35	3129
		5800
		
289.36	3183
		5900
		
289.37	3237
		6000
		
289.38	3291
		6100
		
290.1	3345
		6200
		
290.2	3399
		6300
		
290.3	3453
		6400
		
290.4	3507
		6500
		
290.5	3561
		6600
		
290.6	3615
		6700
		
290.7	3669
		6800
		
290.8	3723
		6900
		
290.9	3777
		7000
		
290.10	3831
		7100
		
290.11	3885
		7200
		
290.12	3939
		7300
		
290.13	3993
		7400
		
290.14	4047
		7500
		
290.15	4101
		7600
		
290.16	4155
		7700
		
290.17	4209
		7800
		
290.18	4263
		7900
		
290.19	4317
		8000
		
290.20	4371
		8100
		
290.21	4425
		8200
		
290.22	4479
		8300
		
290.23	4533
		8400
		
290.24	4587
		8500
		
290.25	4641
		8600
		
290.26	4695
		8700
		
290.27	4749
		8800
		
290.28	4803
		8900
		
290.29	4857
		9000
		
290.30	4911
		9100
		
290.31	4965
		9200
		
290.32	5019
		9300
		
290.33	5073
		9400
		
290.34	5127
		9500
		
290.35	5181
		9600
		
290.36	5235
		9700
		
290.37	5289
		9800
		
290.38	5343
		9900
		
291.1	5397
		10,000
		
291.2	5451
		10,100
		
291.3	5505
		10,200
		
291.4	5559
		10,300
		
291.5	5613
		10,400
		
291.6	5667
		10,500
		
291.7	5721
		10,600
		
291.8	5775
		10,700
		
291.9	5729
		10,800
		
291.10	5883
		10,900
		
291.11	5937
		11,000
		
291.12	5991
		11,100
		
291.13	6045
		11,200
		
291.14	6099
		11,300
		
291.15	6153
		11,400
		
291.16	6207
		11,500
		
291.17	6261
		11,600
		
291.18	6315
		11,700
		
291.19	6369
		11,800
		
291.20	6423
		11,900
		
291.21	6477
		12,000
		
291.22	6531
		12,100
		
291.23	6585
		12,200
		
291.24	6639
		12,300
		
291.25	6693
		12,400
		
291.26	6747
		12,500
		
291.27	any amount in excess of 6747
		12,500
		
291.28 	(c) The maximum monthly service pension amount per month for each year of service 
291.29 	credited that may be provided for in the bylaws of the volunteer firefighters relief association 
291.30 	must be set pursuant to Minnesota Statutes, section 424A.02, subdivision 3, paragraph (c).

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

291.32 	Sec. 84. VETERANS HOMES CONSTRUCTION.
 291.33 		Subdivision 1.Short title. This section may be cited as the "People's Veterans Homes 
291.34 	Act."
292.1 		Subd. 2.Veterans homes established. (a) The commissioner of veterans affairs may 
292.2 	apply for federal funding and establish veterans homes with up to 140 beds available to 
292.3 	provide a continuum of care, including skilled nursing care, for eligible veterans and their 
292.4 	spouses in the following locations:
292.5 	(1) Preston;
292.6 	(2) Montevideo; and
292.7 	(3) Bemidji.
292.8 	(b) The state shall provide the necessary operating costs for the veterans homes in excess 
292.9 	of any revenue and federal funding for the homes that may be required to continue the 
292.10 	operation of the homes and care for Minnesota veterans.
292.11 		Subd. 3.Nonstate contribution. The commissioner of administration may accept 
292.12 	contributions of land or money from private individuals, businesses, local governments, 
292.13 	veterans service organizations, and other nonstate sources for the purpose of providing 
292.14 	matching funding when soliciting federal funding for the development of the homes 
292.15 	authorized by this section.

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

292.17 	Sec. 85. REPORT ON INFORMATION TECHNOLOGY CONSOLIDATION.
 292.18 	No later than January 15, 2019, the Campaign Finance and Public Disclosure Board, 
292.19 	the State Lottery, the Statewide Radio Board, the Minnesota State Retirement System, the 
292.20 	Public Employees Retirement Association, the Teachers Retirement Association, and the 
292.21 	State Board of Investment must each submit a report to the legislative committees with 
292.22 	jurisdiction over state government finance on the impacts of the information technology 
292.23 	services consolidation required by this act. The reports required by this section must be 
292.24 	developed in consultation with the state chief information officer and must detail:
292.25 	(1) the expected costs to the entity to complete the consolidation;
292.26 	(2) whether the state chief information officer and the entity agree that all conditions 
292.27 	for the certification required by this act have been met; and
292.28 	(3) if all conditions for the certification have not been met, the joint work plan of the 
292.29 	entity and the state chief information officer to address the unresolved issues in a way that 
292.30 	leads to certification and, if applicable, recommendations for any additional legislation 
292.31 	needed to complete that work.

293.1 	Sec. 86. REVISOR'S INSTRUCTION.
 293.2 	In Minnesota Statutes, chapter 13, the revisor of statutes shall replace the term 
293.3 	"commissioner of administration" with "chief administrative law judge" and the term 
293.4 	"commissioner" with "chief administrative law judge" where it is clear the text is referring 
293.5 	to the commissioner of administration.

293.6 	Sec. 87.  REPEALERS.
 293.7 		Subdivision 1.Continuity of legislature. Minnesota Statutes 2016, sections 3.93; 3.94; 
293.8 	3.95; and 3.96, are repealed, effective July 1, 2018.
293.9 		Subd. 2.Data practices transfer. Minnesota Statutes 2016, section 13.02, subdivision 
293.10 	2, is repealed, effective July 1, 2018.
293.11 		Subd. 3.Attorney general contingent fees. Minnesota Statutes 2016, section 8.10, is 
293.12 	repealed, effective July 1, 2018.
293.13 		Subd. 4.Hair braiding. Minnesota Statutes 2016, section 155A.28, subdivisions 1, 3, 
293.14 	and 4, are repealed, effective July 1, 2018.
293.15 		Subd. 5.Legislative Budget Office. Minnesota Statutes 2017 Supplement, section 3.98, 
293.16 	subdivision 4, and Laws 2017, First Special Session chapter 4, article 2, section 59,  are 
293.17 	repealed, effective January 8, 2018.
293.18 		Subd. 6.Metropolitan Council. Minnesota Statutes 2016, section 473.123, subdivision 
293.19 	3, and Laws 1994, chapter 628, article 1, section 8, are repealed, effective January 1, 2019.

293.20 	ARTICLE 15
293.21 	ADMINISTRATIVE RULE MAKING

293.22 	Section 1. Minnesota Statutes 2016, section 14.03, subdivision 3, is amended to read:
293.23 		Subd. 3.Rulemaking procedures. (a) The definition of a rule in section 14.02, 
293.24 	subdivision 4, does not include:
293.25 	(1) rules concerning only the internal management of the agency or other agencies that 
293.26 	do not directly affect the rights of or procedures available to the public;
293.27 	(2) an application deadline on a form; and the remainder of a form and instructions for 
293.28 	use of the form to the extent that they do not impose substantive requirements other than 
293.29 	requirements contained in statute or rule;
294.1 	(3) the curriculum adopted by an agency to implement a statute or rule permitting or 
294.2 	mandating minimum educational requirements for persons regulated by an agency, provided 
294.3 	the topic areas to be covered by the minimum educational requirements are specified in 
294.4 	statute or rule;
294.5 	(4) procedures for sharing data among government agencies, provided these procedures 
294.6 	are consistent with chapter 13 and other law governing data practices.
294.7 	(b) The definition of a rule in section 14.02, subdivision 4, does not include:
294.8 	(1) rules of the commissioner of corrections relating to the release, placement, term, and 
294.9 	supervision of inmates serving a supervised release or conditional release term, the internal 
294.10 	management of institutions under the commissioner's control, and rules adopted under 
294.11 	section 609.105 governing the inmates of those institutions;
294.12 	(2) rules relating to weight limitations on the use of highways when the substance of the 
294.13 	rules is indicated to the public by means of signs;
294.14 	(3) opinions of the attorney general;
294.15 	(4) the data element dictionary and the annual data acquisition calendar of the Department 
294.16 	of Education to the extent provided by section 125B.07;
294.17 	(5) the occupational safety and health standards provided in section 182.655;
294.18 	(6) revenue notices and tax information bulletins of the commissioner of revenue;
294.19 	(7) uniform conveyancing forms adopted by the commissioner of commerce under 
294.20 	section 507.09;
294.21 	(8) standards adopted by the Electronic Real Estate Recording Commission established 
294.22 	under section 507.0945; or
294.23 	(9) the interpretive guidelines developed by the commissioner of human services to the 
294.24 	extent provided in chapter 245A.; or
294.25 	(10) policies established pursuant to section 14.031.

294.26 	Sec. 2. [14.031] POLICY PRONOUNCEMENTS.
294.27 		Subdivision 1.Definition. (a) As used in this section, "policy" means a public written 
294.28 	policy, guideline, bulletin, manual, or similar document providing an interpretation, 
294.29 	clarification, or explanation of a statute or rule to provide guidance for agency regulatory 
294.30 	functions including but not limited to permits or enforcement actions.
294.31 	The definition of a policy does not include:
295.1 	(1) policies concerning only the internal management of the agency or other agencies 
295.2 	that do not directly affect the rights of or procedures available to the public;
295.3 	(2) forms and instructions for use of the form to the extent that they do not impose 
295.4 	substantive requirements other than requirements contained in statute or rule;
295.5 	(3) curriculums adopted by an agency to implement a statute or rule permitting or 
295.6 	mandating minimum educational requirements for persons regulated by an agency, provided 
295.7 	the topic areas to be covered by the minimum educational requirements are specified in 
295.8 	statute or rule;
295.9 	(4) procedures for sharing data among government agencies, provided these procedures 
295.10 	are consistent with chapter 13 and other law governing data practices; or
295.11 	(5) policies concerning agency actions required to comply with treaty obligations.
295.12 	(b) A policy does not have the force of law.
295.13 	(c) Policies established by the agency are subject to all of the following requirements:
295.14 	(1) a policy shall comply with the statutes and rules that are in existence at the time the 
295.15 	policy is established;
295.16 	(2) a policy shall not establish any new requirement;
295.17 	(3) a policy shall be established only by the commissioner of the agency; and
295.18 	(4) the following statement must be printed on the first page of each policy in uppercase 
295.19 	letters: "Every five years the agency shall review and update each policy that is established 
295.20 	before the effective date of this section or that it establishes after the effective date of this 
295.21 	section and shall prepare written documentation certifying that the policy has been reviewed 
295.22 	and updated. A policy that has not been reviewed and updated pursuant to this paragraph 
295.23 	is void."
295.24 		Subd. 2.Notice to legislature. By January 15 each year, each agency must submit each 
295.25 	policy the agency has or intends to publish under subdivision 3 in the upcoming calendar 
295.26 	year to the policy and funding committees and divisions with jurisdiction over the agency. 
295.27 	Each agency must post a link to its policies on the agency's Web site.
295.28 		Subd. 3.Public notice. Before a policy is in effect, the agency must publish public notice 
295.29 	of the proposed policy and solicit public comment. The agency shall use the procedure set 
295.30 	forth under section 14.22 to provide public notice and meeting. The agency shall publish 
295.31 	the public notice on the agency's Web site. The agency must send a copy of the same notice 
295.32 	to the chairs and ranking minority members of the legislative policy and budget committees 
296.1 	with jurisdiction over the subject matter of the proposed policy. The public comment period 
296.2 	shall be 30 days after the date of a public meeting on the policy.
296.3 		Subd. 4.Final publication. The agency must make all policies that conform to this 
296.4 	section available electronically on the agency's Web site within 60 days of the completion 
296.5 	of requirements in this section.
296.6 		Subd. 5.Committee action; delay action. The agency shall not use a policy until the 
296.7 	legislature adjourns the annual legislative session that began the year the legislature received 
296.8 	notice of the policy under subdivision 2. The speaker of the house and the president of the 
296.9 	senate shall determine if a committee has jurisdiction over the agency before a committee 
296.10 	may act under this section.
296.11 		Subd. 6.Policy docket. (a) Each agency shall maintain a policy docket with the agency's 
296.12 	current public rulemaking docket under section 14.366.
296.13 	(b) The policy docket must contain:
296.14 	(1) a listing of the precise subject matter;
296.15 	(2) the name and address of agency personnel with whom persons may communicate 
296.16 	with respect to the matter and an indication of its present status within the agency;
296.17 	(3) any known timetable for agency decisions or other action in the proceeding;
296.18 	(4) the date of the public hearing on the policy;
296.19 	(5) the schedule for public comments on the policy; and
296.20 	(6) the date the policy became or becomes effective.

296.21 	Sec. 3. Minnesota Statutes 2016, section 14.127, subdivision 4, is amended to read:
296.22 		Subd. 4.Exceptions. (a) Subdivision 3 does not apply if the administrative law judge 
296.23 	approves an agency's determination that the legislature has appropriated money to sufficiently 
296.24 	fund the expected cost of the rule upon the business or city proposed to be regulated by the 
296.25 	rule.
296.26 	(b) Subdivision 3 does not apply if the administrative law judge approves an agency's 
296.27 	determination that the rule has been proposed pursuant to a specific federal statutory or 
296.28 	regulatory mandate.
296.29 	(c) This section does not apply if the rule is adopted under section 14.388 or under 
296.30 	another law specifying that the rulemaking procedures of this chapter do not apply.
296.31 	(d) This section does not apply to a rule adopted by the Public Utilities Commission.
297.1 	(e) Subdivision 3 does not apply if the governor waives application of subdivision 3. 
297.2 	The governor may issue a waiver at any time, either before or after the rule would take 
297.3 	effect, but for the requirement of legislative approval. As soon as possible after issuing a 
297.4 	waiver under this paragraph, the governor must send notice of the waiver to the speaker of 
297.5 	the house and the president of the senate and must publish notice of this determination in 
297.6 	the State Register.

297.7 	Sec. 4. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
297.8 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
297.9 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
297.10 	new construction or remodeling of any building subject to the Minnesota Residential Code.
297.11 		Subd. 2.Impact on housing; agency determination. (a) An agency must determine if 
297.12 	implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
297.13 	increase the cost of residential construction or remodeling by $1,000 or more per unit, and 
297.14 	whether the proposed rule meets the state regulatory policy objectives described in section 
297.15 	14.002. In calculating the cost of implementing a proposed rule, the agency may consider 
297.16 	the impact of other related proposed rules on the overall cost of residential construction. If 
297.17 	applicable, the agency may include offsetting savings that may be achieved through 
297.18 	implementation of related proposed rules in its calculation under this subdivision.
297.19 	(b) The agency must make the determination required by paragraph (a) before the close 
297.20 	of the hearing record, or before the agency submits the record to the administrative law 
297.21 	judge if there is no hearing. Upon request of a party affected by the proposed rule, the 
297.22 	administrative law judge must review and approve or disapprove an agency's determination 
297.23 	under this subdivision.
297.24 		Subd. 3.Notice to legislature; legislative review. If the agency determines that the 
297.25 	impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 2, or 
297.26 	if the administrative law judge separately confirms the cost of any portion of a rule exceeds 
297.27 	the cost threshold provided in subdivision 2, the agency must notify, in writing, the chair 
297.28 	and ranking minority members of the policy committees of the house of representatives and 
297.29 	the senate with jurisdiction over the subject matter of the proposed rule within ten days of 
297.30 	the determination. The agency shall not adopt the proposed rule until after the adjournment 
297.31 	of the next annual session of the legislature convened on or after the date that notice required 
297.32 	in this subdivision is given to the chairs and ranking minority members.

297.33 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to 
297.34 	administrative rules proposed on or after that date.

298.1 	Sec. 5. Minnesota Statutes 2016, section 14.381, is amended by adding a subdivision to 
298.2 	read:
298.3 		Subd. 4.Fees and expenses. (a) The administrative law judge shall award fees and other 
298.4 	expenses to the prevailing party under subdivision 1, unless special circumstances make an 
298.5 	award unjust.
298.6 	(b) A party seeking an award of fees and other expenses shall, within 30 days of 
298.7 	administrative law judge's report issued in the action, submit to the administrative law judge 
298.8 	an application of fees and other expenses that shows that the party is a prevailing party and 
298.9 	is eligible to receive an award, and the amount sought, including an itemized statement from 
298.10 	any attorney or expert witness representing or appearing on behalf of the party stating the 
298.11 	actual time expended and the rate at which fees and other expenses were computed.
298.12 	(c) The administrative law judge may reduce the amount to be awarded under this section, 
298.13 	or deny an award, to the extent that during the proceedings the prevailing party engaged in 
298.14 	conduct that unduly and unreasonably protracted the final resolution of the matter in 
298.15 	controversy. The decision of an administrative law judge under this section must be made 
298.16 	a part of the record containing the final decision of the agency and must include written 
298.17 	findings and conclusions.
298.18 	(d) This section does not preclude a party from recovering costs, disbursements, fees, 
298.19 	and expenses under other applicable law.

298.20 	Sec. 6.  REPEALER.
 298.21 	Minnesota Statutes 2016, section 14.381, subdivision 3, is repealed.

298.22 	Sec. 7. EFFECTIVE DATE; APPLICATION.
 298.23 	(a) This article is effective August 1, 2018, and applies to rules for which a notice of 
298.24 	hearing under Minnesota Statutes, section 14.14; a notice of intent to adopt under Minnesota 
298.25 	Statutes, section 14.22; or a dual notice under Minnesota Statutes, section 14.225, is published 
298.26 	in the State Register on or after that date.
298.27 	(b) This article also applies to policies established on or after January 1, 2019. All policies 
298.28 	existing on or before the date of enactment shall be posted on the agency's public docket 
298.29 	on or before January 1, 2019.

299.1 	ARTICLE 16
299.2 	CAMPAIGN FINANCE

299.3 	Section 1. Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:
299.4 		Subd. 13.Rules. (a) Chapter 14 applies to the board. The board may adopt rules to carry 
299.5 	out the purposes of this chapter if, before June 1, 2018, the board has published a notice of 
299.6 	intent to adopt a rule without public hearing under section 14.22, subdivision 1, 14.389, 
299.7 	subdivision 2, or 14.3895, subdivision 3; a dual notice under section 14.22, subdivision 2; 
299.8 	or a notice of hearing on a proposed rule under section 14.14.
299.9 	(b) After May 31, 2018, the board may only adopt rules that:
299.10 	(1) incorporate specific changes set forth in applicable statutes when no interpretation 
299.11 	of law is required; or
299.12 	(2) make changes to rules that do not alter the sense, meaning, or effect of a rule.
299.13 	(c) In addition to the notice required under chapter 14, the board shall notify the chairs 
299.14 	and ranking minority members of the committees or subcommittees in the senate and house 
299.15 	of representatives with primary jurisdiction over elections within seven calendar days of 
299.16 	taking the following actions:
299.17 	(1) publication of a notice of intent to adopt rules or a notice of hearing;
299.18 	(2) publication of proposed rules in the State Register;
299.19 	(3) issuance of a statement of need and reasonableness; or
299.20 	(4) adoption of final rules.

299.21 	EFFECTIVE DATE. This section is effective the day following final enactment for 
299.22 	rules for which a notice of intent to adopt a rule without public hearing under Minnesota 
299.23 	Statutes, section 14.22, subdivision 1, 14.389, subdivision 2, or 14.3895, subdivision 3; a 
299.24 	dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a notice of hearing 
299.25 	on a proposed rule under Minnesota Statutes, section 14.14, was published before June 1, 
299.26 	2018.

299.27 	Sec. 2. Minnesota Statutes 2016, section 10A.31, subdivision 1, is amended to read:
299.28 		Subdivision 1.Designation. An individual resident of this state who files an income tax 
299.29 	return or a renter and homeowner property tax refund return with the commissioner of 
299.30 	revenue may designate on their original return that $5 be paid from the general fund of the 
299.31 	state into the state elections campaign account. If a husband and wife file a joint return, 
300.1 	each spouse may designate that $5 be paid. No individual is allowed to designate $5 more 
300.2 	than once in any year. The taxpayer may designate that the amount be paid into the account 
300.3 	of a political party or into the general account.

300.4 	Sec. 3. Minnesota Statutes 2016, section 10A.31, subdivision 3, is amended to read:
300.5 		Subd. 3.Form. The commissioner of revenue must provide on the first page of the 
300.6 	income tax form and the renter and homeowner property tax refund return a space for the 
300.7 	individual to indicate a wish to pay $5 ($10 if filing a joint return) from the general fund of 
300.8 	the state to finance election campaigns. The form must also contain language prepared by 
300.9 	the commissioner that permits the individual to direct the state to pay the $5 (or $10 if filing 
300.10 	a joint return) to: (1) one of the major political parties; (2) any minor political party that 
300.11 	qualifies under subdivision 3a; or (3) all qualifying candidates as provided by subdivision 
300.12 	7. The renter and homeowner property tax refund return must include instructions that the 
300.13 	individual filing the return may designate $5 on the return only if the individual has not 
300.14 	designated $5 on the income tax return.

300.15 	Sec. 4. Minnesota Statutes 2016, section 10A.31, subdivision 4, is amended to read:
300.16 		Subd. 4.Appropriation. (a) The amounts designated by individuals for the state elections 
300.17 	campaign account, less three percent, are appropriated from the general fund, must be 
300.18 	transferred and credited to the appropriate account in the state elections campaign account, 
300.19 	and are annually appropriated for distribution as set forth in subdivisions 5, 5a, 6, and 7 this 
300.20 	section. The remaining three percent must be kept in the general fund for administrative 
300.21 	costs.
300.22 	(b) In addition to the amounts in paragraph (a), $1,020,000 for each general election is 
300.23 	appropriated from the general fund for transfer to the general account of the state elections 
300.24 	campaign account.

300.25 	Sec. 5. Minnesota Statutes 2016, section 10A.31, subdivision 5, is amended to read:
300.26 		Subd. 5.Allocation. (a) General account. In each calendar year the money in the general 
300.27 	account must be allocated to candidates as follows:
300.28 	(1) 21 percent for the offices of governor and lieutenant governor together;
300.29 	(2) 4.2 percent for the office of attorney general;
300.30 	(3) 2.4 percent each for the offices of secretary of state and state auditor;
301.1 	(4) in each calendar year during the period in which state senators serve a four-year 
301.2 	term, 23-1/3 percent for the office of state senator, and 46-2/3 percent for the office of state 
301.3 	representative; and
301.4 	(5) in each calendar year during the period in which state senators serve a two-year term, 
301.5 	35 percent each for the offices of state senator and state representative.
301.6 	(b) Party account. In each calendar year the money in each party account must be 
301.7 	allocated as follows:
301.8 	(1) 14 percent for the offices of governor and lieutenant governor together;
301.9 	(2) 2.8 percent for the office of attorney general;
301.10 	(3) 1.6 percent each for the offices of secretary of state and state auditor;
301.11 	(4) in each calendar year during the period in which state senators serve a four-year 
301.12 	term, 23-1/3 percent for the office of state senator, and 46-2/3 percent for the office of state 
301.13 	representative;
301.14 	(5) in each calendar year during the period in which state senators serve a two-year term, 
301.15 	35 percent each for the offices of state senator and state representative; and
301.16 	(6) ten percent or $50,000, whichever is less, for the state committee of a political party; 
301.17 	one-third of any amount in excess of that allocated to the state committee of a political party 
301.18 	under this clause must be allocated to the office of state senator and two-thirds must be 
301.19 	allocated to the office of state representative under clause (4).
301.20 	Money allocated to each state committee under clause (6) must be deposited in a separate 
301.21 	account and must be spent for only those items enumerated in section 10A.275. Money 
301.22 	allocated to a state committee under clause (6) must be paid to the committee by the board 
301.23 	as it is received in the account on a monthly basis, with payment on the 15th day of the 
301.24 	calendar month following the month in which the returns were processed by the Department 
301.25 	of Revenue, provided that these distributions would be equal to 90 percent of the amount 
301.26 	of money indicated in the Department of Revenue's weekly unedited reports of income tax 
301.27 	returns and property tax refund returns processed in the month, as notified by the Department 
301.28 	of Revenue to the board. The amounts paid to each state committee are subject to biennial 
301.29 	adjustment and settlement at the time of each certification required of the commissioner of 
301.30 	revenue under subdivisions 7 and 10. If the total amount of payments received by a state 
301.31 	committee for the period reflected on a certification by the Department of Revenue is 
301.32 	different from the amount that should have been received during the period according to 
301.33 	the certification, each subsequent monthly payment must be increased or decreased to the 
302.1 	fullest extent possible until the amount of the overpayment is recovered or the underpayment 
302.2 	is distributed.

302.3 	Sec. 6. Minnesota Statutes 2016, section 10A.31, subdivision 7, is amended to read:
302.4 		Subd. 7.Distribution of general account. (a) As soon as the board has obtained the 
302.5 	results of the primary election from the secretary of state, but no later than one week after 
302.6 	certification of the primary results by the State Canvassing Board, the board must distribute 
302.7 	the available money in the general state elections campaign account, as certified by the 
302.8 	commissioner of revenue one week before the state primary and according to allocations 
302.9 	set forth in subdivision 5, in equal amounts to all candidates of a major political party whose 
302.10 	names are to appear on the ballot in the general election and who:
302.11 	(1) have signed a spending limit agreement under section 10A.322;
302.12 	(2) have filed the affidavit of contributions required by section 10A.323; and
302.13 	(3) were opposed in either the primary election or the general election.
302.14 	(b) The public subsidy paid under this subdivision may not be paid in an amount that 
302.15 	would cause the sum of the public subsidy paid from the party account plus the public 
302.16 	subsidy paid from the general account to exceed 50 percent of the expenditure limit for the 
302.17 	candidate or 50 percent of the expenditure limit that would have applied to the candidate if 
302.18 	the candidate had not been freed from expenditure limits under section 10A.25, subdivision 
302.19 	10. Money from the general account not paid to a candidate because of the 50 percent limit 
302.20 	must be distributed equally among all other qualifying candidates for the same office until 
302.21 	all have reached the 50 percent limit or the balance in the general account is exhausted.

302.22 	Sec. 7. Minnesota Statutes 2016, section 10A.31, subdivision 10, is amended to read:
302.23 		Subd. 10.December distribution. In the event that on the date of either certification 
302.24 	by the commissioner of revenue as provided in subdivision 6 or 7, less than 98 percent of 
302.25 	the tax returns have been processed, the commissioner of revenue must certify to the board 
302.26 	by December 1 the amount accumulated in each the account since the previous certification. 
302.27 	By December 15, the board must distribute to each candidate according to the allocations 
302.28 	in subdivisions 5 and 5a allocation in subdivision 5 the amounts to which the candidates 
302.29 	are entitled.

303.1 	Sec. 8. Minnesota Statutes 2016, section 10A.31, subdivision 10b, is amended to read:
303.2 		Subd. 10b.Remainder. Money accumulated after the final certification must be kept 
303.3 	in the respective accounts state elections campaign account for distribution in the next 
303.4 	general election year.

303.5 	Sec. 9. Minnesota Statutes 2016, section 10A.315, is amended to read:
303.6 	10A.315 SPECIAL ELECTION SUBSIDY.
303.7 	(a) Each eligible candidate for a legislative office in a special election must be paid a 
303.8 	public subsidy equal to the sum of:
303.9 	(1) the party account money at the last general election for the candidate's party for the 
303.10 	office the candidate is seeking; and
303.11 	(2) the general account amount of state elections campaign money paid to a candidate 
303.12 	for the same office at the last general election.
303.13 	(b) A candidate who wishes to receive this public subsidy must submit a signed agreement 
303.14 	under section 10A.322 to the board and must meet the contribution requirements of section 
303.15 	10A.323. The special election subsidy must be distributed in the same manner as money in 
303.16 	the party and general accounts state elections campaign account is distributed to legislative 
303.17 	candidates in a general election.
303.18 	(c) The amount necessary to make the payments required by this section is appropriated 
303.19 	from the general fund for transfer to the state special elections campaign account for 
303.20 	distribution by the board as set forth in this section.

303.21 	Sec. 10. Minnesota Statutes 2016, section 10A.321, subdivision 1, is amended to read:
303.22 		Subdivision 1.Calculation and certification of estimates. The commissioner of revenue 
303.23 	must calculate and certify to the board one week before the first day for filing for office in 
303.24 	each election year an estimate of the total amount in the state general account of the state 
303.25 	elections campaign account and the amount of money each candidate who qualifies, as 
303.26 	provided in section 10A.31, subdivisions 6 andsubdivision 7, may receive from the 
303.27 	candidate's party account in the state elections campaign account. This estimate must be 
303.28 	based upon the allocations and formulas in section 10A.31, subdivisions 5 and 5a, any 
303.29 	necessary vote totals provided by the secretary of state to apply the formulas in section 
303.30 	10A.31, subdivisions 5 and 5a,subdivision 5, and the amount of money expected to be 
303.31 	available after 100 percent of the tax returns have been processed.

304.1 	Sec. 11. Minnesota Statutes 2016, section 290.06, subdivision 23, is amended to read:
304.2 		Subd. 23.Refund of contributions to political parties and candidates. (a) A taxpayer 
304.3 	may claim a refund equal to the amount of the taxpayer's contributions made in the calendar 
304.4 	year to candidates and to a political party. The maximum refund for an individual must not 
304.5 	exceed $50 and for a married couple, filing jointly, must not exceed $100. A refund of a 
304.6 	contribution is allowed only if the taxpayer files a form required by the commissioner and 
304.7 	attaches to the form a copy of an official refund receipt form issued by the candidate or 
304.8 	party and signed by the candidate, the treasurer of the candidate's principal campaign 
304.9 	committee, or the chair or treasurer of the party unit, after the contribution was received. 
304.10 	The receipt forms must be numbered, and the data on the receipt that are not public must 
304.11 	be made available to the campaign finance and public disclosure board upon its request. A 
304.12 	claim must be filed with the commissioner no sooner than January 1 of the calendar year 
304.13 	in which the contribution was made and no later than April 15 of the calendar year following 
304.14 	the calendar year in which the contribution was made. A taxpayer may file only one claim 
304.15 	per calendar year. Amounts paid by the commissioner after June 15 of the calendar year 
304.16 	following the calendar year in which the contribution was made must include interest at the 
304.17 	rate specified in section 270C.405.
304.18 	(b) No refund is allowed under this subdivision for a contribution to a candidate unless 
304.19 	the candidate:
304.20 	(1) has signed an agreement to limit campaign expenditures as provided in section 
304.21 	10A.322;
304.22 	(2) is seeking an office for which voluntary spending limits are specified in section 
304.23 	10A.25; and
304.24 	(3) has designated a principal campaign committee.
304.25 	This subdivision does not limit the campaign expenditures of a candidate who does not 
304.26 	sign an agreement but accepts a contribution for which the contributor improperly claims 
304.27 	a refund.
304.28 	(c) For purposes of this subdivision, "political party" means a major political party as 
304.29 	defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion 
304.30 	on the income tax or property tax refund form under section 10A.31, subdivision 3a as 
304.31 	defined in section 200.02, subdivision 23.
305.1 	A "major party" or "minor party" includes the aggregate of that party's organization 
305.2 	within each house of the legislature, the state party organization, and the party organization 
305.3 	within congressional districts, counties, legislative districts, municipalities, and precincts.
305.4 	"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a 
305.5 	candidate for judicial office.
305.6 	"Contribution" means a gift of money.
305.7 	(d) The commissioner shall make copies of the form available to the public and candidates 
305.8 	upon request.
305.9 	(e) The following data collected or maintained by the commissioner under this subdivision 
305.10 	are private: the identities of individuals claiming a refund, the identities of candidates to 
305.11 	whom those individuals have made contributions, and the amount of each contribution.
305.12 	(f) The commissioner shall report to the campaign finance and public disclosure board 
305.13 	by each August 1 a summary showing the total number and aggregate amount of political 
305.14 	contribution refunds made on behalf of each candidate and each political party. These data 
305.15 	are public.
305.16 	(g) The amount necessary to pay claims for the refund provided in this section is 
305.17 	appropriated from the general fund to the commissioner of revenue.
305.18 	(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, 
305.19 	the commissioner may accept the number on the official receipt as documentation that a 
305.20 	contribution was made rather than the actual receipt as required by paragraph (a).

305.21 	Sec. 12.  REPEALER.
 305.22 	Minnesota Statutes 2016, sections 10A.30, subdivision 2; and 10A.31, subdivisions 3a, 
305.23 	5a, 6, and 6a, are repealed.

305.24 	Sec. 13. EFFECTIVE DATE; APPLICABILITY.
 305.25 	This article is effective the day following final enactment, and provisions impacting the 
305.26 	public subsidy for candidates apply to elections held on or after that date. No later than July 
305.27 	1, 2018, the Campaign Finance and Public Disclosure Board must notify, in writing, all 
305.28 	candidates who have signed an agreement applicable for the 2018 general election of the 
305.29 	changes enacted by this article, and provide each candidate an opportunity, at the candidate's 
305.30 	discretion, to sign a new agreement that reflects these changes. Agreements applicable for 
305.31 	the 2018 general election that were signed prior to the effective date of this section remain 
306.1 	valid for the sole purpose of establishing the candidate's eligibility to participate in the 
306.2 	political contribution refund program authorized by Minnesota Statutes, section 290.06, 
306.3 	subdivision 23, but are otherwise unenforceable and invalid for any other purpose.

306.4 	ARTICLE 17
306.5 	MINNESOTA SPORTS FACILITIES AUTHORITY

306.6 	Section 1. Minnesota Statutes 2016, section 13.55, subdivision 1, is amended to read:
306.7 		Subdivision 1.Not public classification. The following data received, created, or 
306.8 	maintained by or for publicly owned and operated convention facilities, civic center 
306.9 	authorities, or the MetropolitanMinnesota Sports Facilities CommissionAuthority are 
306.10 	classified as nonpublic data pursuant to section 13.02, subdivision 9; or private data on 
306.11 	individuals pursuant to section 13.02, subdivision 12:
306.12 	(a) a letter or other documentation from any person who makes inquiry to or who is 
306.13 	contacted by the facility regarding the availability of the facility for staging events;
306.14 	(b) identity of firms and corporations which contact the facility;
306.15 	(c) type of event which they wish to stage in the facility;
306.16 	(d) suggested terms of rentals; and
306.17 	(e) responses of authority staff to these inquiries.

306.18 	Sec. 2. Minnesota Statutes 2016, section 13.55, subdivision 2, is amended to read:
306.19 		Subd. 2.Public data. (a) The data made not public by the provisions of subdivision 1 
306.20 	shall become public upon the occurrence of any of the following:
306.21 	(a) (1) five years elapse from the date on which the lease or contract is entered into 
306.22 	between the facility and the inquiring party or parties or the event which was the subject of 
306.23 	inquiry occurs at the facility, whichever occurs earlier;
306.24 	(b) (2) the event which was the subject of inquiry does not occur; or
306.25 	(c) (3) the event which was the subject of inquiry occurs elsewhere.
306.26 	(b) Data regarding persons receiving free or discounted admission, tickets, or other gifts 
306.27 	from publicly owned and operated convention facilities, civic center authorities, or the 
306.28 	Minnesota Sports Facilities Authority are public data unless the data are subject to the 
306.29 	provisions of subdivision 1 or 4, paragraph (b).

307.1 	Sec. 3. Minnesota Statutes 2016, section 16A.965, is amended by adding a subdivision to 
307.2 	read:
307.3 		Subd. 11.Prepayment of bonds. By June 30, 2020, and every fiscal year thereafter, 
307.4 	the commissioner shall set aside, in a separate account in the special revenue fund, an amount 
307.5 	equal to the cumulative reduction in the payment for stadium operating expenses under 
307.6 	section 473J.13, subdivision 2, paragraph (b), over the prior fiscal year. When a sufficient 
307.7 	amount has accumulated in that account to make it practicable, the commissioner must 
307.8 	transfer those amounts to the general fund. The transferred amounts are appropriated to the 
307.9 	commissioner to prepay or defease bonds in a manner that preserves the tax exempt status 
307.10 	of the bonds.

307.11 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to reductions 
307.12 	to stadium operating expense payments made in that fiscal year and thereafter.

307.13 	Sec. 4. Minnesota Statutes 2016, section 297A.994, subdivision 4, is amended to read:
307.14 		Subd. 4.General fund allocations. The commissioner must retain and deposit to the 
307.15 	general fund the following amounts, as required by subdivision 3, clause (3):
307.16 	(1) for state bond debt service support beginning in calendar year 2021, and for each 
307.17 	calendar year thereafter through calendar year 2046, periodic amounts so that not later than 
307.18 	December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been 
307.19 	deposited in the general fund. To determine aggregate present value, the commissioner must 
307.20 	consult with the commissioner of management and budget regarding the present value dates, 
307.21 	discount rate or rates, and schedules of annual amounts. The present value date or dates 
307.22 	must be based on the date or dates bonds are sold under section 16A.965, or the date or 
307.23 	dates other state funds, if any, are deposited into the construction fund. The discount rate 
307.24 	or rates must be based on the true interest cost of the bonds issued under section 16A.965, 
307.25 	or an equivalent 30-year bond index, as determined by the commissioner of management 
307.26 	and budget. The schedule of annual amounts must be certified to the commissioner by the 
307.27 	commissioner of management and budget and the finance officer of the city;
307.28 	(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities 
307.29 	Authority beginning in calendar year 2021, and for each calendar year thereafter through 
307.30 	calendar year 2046, an aggregate annual amount equal to the amount paid by the state for 
307.31 	this purpose in that calendar year under section 473J.13, subdivision 4;
307.32 	(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority 
307.33 	beginning in calendar year 2021, and for each calendar year thereafter through calendar 
308.1 	year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose 
308.2 	in that calendar year under section 473J.13, subdivision 2, determined without regard to 
308.3 	any reduction under section 473J.13, subdivision 2, paragraph (b);
308.4 	(4) for recapture of state advances for capital improvements and operating expenses for 
308.5 	calendar years 2016 through 2020 beginning in calendar year 2021, and for each calendar 
308.6 	year thereafter until all amounts under this clause have been paid, proportionate amounts 
308.7 	periodically until an aggregate amount equal to the present value of all amounts paid by the 
308.8 	state have been deposited in the general fund. To determine the present value of the amounts 
308.9 	paid by the state to the authority and the present value of amounts deposited to the general 
308.10 	fund under this clause, the commissioner shall consult with the commissioner of management 
308.11 	and budget regarding the present value dates, discount rate or rates, and schedule of annual 
308.12 	amounts. The present value dates must be based on the dates state funds are paid to the 
308.13 	authority, or the dates the commissioner of revenue deposits taxes for purposes of this clause 
308.14 	to the general fund. The discount rates must be based on the reasonably equivalent cost of 
308.15 	state funds as determined by the commissioner of management and budget. The schedule 
308.16 	of annual amounts must be revised to reflect amounts paid under section 473J.13, subdivision 
308.17 	2, paragraph (b), for 2016 to 2020, and subdivision 4, paragraph (c), for 2016 to 2020, and 
308.18 	taxes deposited to the general fund from time to time under this clause, and the schedule 
308.19 	and revised schedules must be certified to the commissioner by the commissioner of 
308.20 	management and budget and the finance officer of the city, and are transferred as accrued 
308.21 	from the general fund for repayment of advances made by the state to the authority. 
308.22 	Determination of the present value amounts must be made without regard to any reduction 
308.23 	in the state advances resulting from a reduction in the payments under section 473J.13, 
308.24 	subdivision 2, paragraph (b); and
308.25 	(5) to capture increases in taxes imposed under the special law, for the benefit of the 
308.26 	Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar 
308.27 	year thereafter through 2046, there shall be deposited to the general fund in proportionate 
308.28 	periodic payments in the following year, an amount equal to the following:
308.29 	(i) 50 percent of the difference, if any, by which the amount of the net annual taxes for 
308.30 	the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus 
308.31 	$1,000,000, inflated at two percent per year since 2011, minus
308.32 	(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes for 
308.33 	the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus 
308.34 	$3,000,000, inflated at two percent per year since 2011.

309.1 	EFFECTIVE DATE. This section is effective upon compliance by the governing body 
309.2 	of the city of Minneapolis with Minnesota Statutes, section 645.021.

309.3 	Sec. 5. Minnesota Statutes 2016, section 297E.021, subdivision 3, is amended to read:
309.4 		Subd. 3.Available revenues. For purposes of this section, "available revenues" equals 
309.5 	the amount determined under subdivision 2, plus up to $20,000,000 each fiscal year from 
309.6 	the taxes imposed under section 290.06, subdivision 1:
309.7 	(1) reduced by the following amounts paid for the fiscal year under:
309.8 	(i) the appropriation to principal and interest on appropriation bonds under section 
309.9 	16A.965, subdivision 8;
309.10 	(ii) the appropriation from the general fund to make operating expense payments under 
309.11 	section 473J.13, subdivision 2, paragraph (b);
309.12 	(iii) the appropriation for contributions to the capital reserve fund under section 473J.13, 
309.13 	subdivision 4, paragraph (c);
309.14 	(iv) the appropriations under Laws 2012, chapter 299, article 4, for administration and 
309.15 	any successor appropriation;
309.16 	(v) the reduction in revenues resulting from the sales tax exemptions under section 
309.17 	297A.71, subdivision 43;
309.18 	(vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d);
309.19 	(vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, 
309.20 	paragraph (c), and any successor appropriation; and
309.21 	(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph (c); and
309.22 	(2) increased by the revenue deposited in the general fund under section 297A.994, 
309.23 	subdivision 4, clauses (1) to (3), for the fiscal year.

309.24 	EFFECTIVE DATE. This section is effective for fiscal years beginning after June 30, 
309.25 	2019.

309.26 	Sec. 6. Minnesota Statutes 2016, section 297E.021, subdivision 4, is amended to read:
309.27 		Subd. 4.Appropriation; general reserve account. (a) To the extent the commissioner 
309.28 	determines that revenues are available under subdivision 3 for the fiscal year, those amounts 
309.29 	are appropriated from the general fund for deposit in a general reserve account established 
309.30 	by order of the commissioner of management and budget. Appropriations under this 
310.1 	subdivision for each fiscal year are limited to the amounts necessary to provide a balance 
310.2 	in the reserve account up to the limit under paragraph (b). Amounts in this reserve are 
310.3 	appropriated as necessary for application against any shortfall in the amounts deposited to 
310.4 	the general fund under section 297A.994 or, after consultation with the Legislative 
310.5 	Commission on Planning and Fiscal Policy, amounts in this reserve are appropriated to the 
310.6 	commissioner of management and budget for other uses related to the stadium authorized 
310.7 	under section 473J.03, subdivision 8, that the commissioner deems financially prudent 
310.8 	including but not, limited to reimbursements for capital and operating costs relating to the 
310.9 	stadium, refundings, and prepayment of debt. In no event, shall available revenues be 
310.10 	pledged, nor shall the appropriations of available revenues made by this section constitute 
310.11 	a pledge of available revenues as security for the prepayment of principal and interest on 
310.12 	the appropriation bonds under section 16A.965.
310.13 	(b) The balance in the reserve account established by the commissioner under this 
310.14 	subdivision must not exceed $26,821,000.

310.15 	EFFECTIVE DATE. This section is effective July 1, 2019, and any amount above the 
310.16 	limit set in paragraph (b) on that date cancels to the general fund.

310.17 	Sec. 7. Minnesota Statutes 2016, section 340A.404, subdivision 1, is amended to read:
310.18 		Subdivision 1.Cities. (a) A city may issue an on-sale intoxicating liquor license to the 
310.19 	following establishments located within its jurisdiction:
310.20 	(1) hotels;
310.21 	(2) restaurants;
310.22 	(3) bowling centers;
310.23 	(4) clubs or congressionally chartered veterans organizations with the approval of the 
310.24 	commissioner, provided that the organization has been in existence for at least three years 
310.25 	and liquor sales will only be to members and bona fide guests, except that a club may permit 
310.26 	the general public to participate in a wine tasting conducted at the club under section 
310.27 	340A.419;
310.28 	(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the 
310.29 	Minnesota Sports Facilities Authority; and
310.30 	(6) sports facilities located on land owned by the Metropolitan Sports Commission; and
310.31 	(7) (6) exclusive liquor stores.
311.1 	(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or 
311.2 	an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 
311.3 	ordinance, or charter provision. A license issued under this paragraph authorizes sales on 
311.4 	all days of the week to persons attending events at the theater.
311.5 	(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or 
311.6 	an on-sale malt liquor license to a convention center within the city, notwithstanding any 
311.7 	law, local ordinance, or charter provision. A license issued under this paragraph authorizes 
311.8 	sales on all days of the week to persons attending events at the convention center. This 
311.9 	paragraph does not apply to convention centers located in the seven-county metropolitan 
311.10 	area.
311.11 	(d) A city may issue an on-sale wine license and an on-sale malt liquor license to a 
311.12 	person who is the owner of a summer collegiate league baseball team, or to a person holding 
311.13 	a concessions or management contract with the owner, for beverage sales at a ballpark or 
311.14 	stadium located within the city for the purposes of summer collegiate league baseball games 
311.15 	at the ballpark or stadium, notwithstanding any law, local ordinance, or charter provision. 
311.16 	A license issued under this paragraph authorizes sales on all days of the week to persons 
311.17 	attending baseball games at the ballpark or stadium.

311.18 	Sec. 8. Minnesota Statutes 2016, section 352.01, subdivision 2a, is amended to read:
311.19 		Subd. 2a.Included employees. (a) "State employee" includes:
311.20 	(1) employees of the Minnesota Historical Society;
311.21 	(2) employees of the State Horticultural Society;
311.22 	(3) employees of the Minnesota Crop Improvement Association;
311.23 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
311.24 	who are not covered by any federal civilian employees retirement system;
311.25 	(5) employees of the Minnesota State Colleges and Universities who are employed under 
311.26 	the university or college activities program;
311.27 	(6) currently contributing employees covered by the system who are temporarily 
311.28 	employed by the legislature during a legislative session or any currently contributing 
311.29 	employee employed for any special service as defined in subdivision 2b, clause (6);
311.30 	(7) employees of the legislature who are appointed without a limit on the duration of 
311.31 	their employment;
312.1 	(8) trainees who are employed on a full-time established training program performing 
312.2 	the duties of the classified position for which they will be eligible to receive immediate 
312.3 	appointment at the completion of the training period;
312.4 	(9) employees of the Minnesota Safety Council;
312.5 	(10) any employees who are on authorized leave of absence from the Transit Operating 
312.6 	Division of the former Metropolitan Transit Commission and who are employed by the 
312.7 	labor organization which is the exclusive bargaining agent representing employees of the 
312.8 	Transit Operating Division;
312.9 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
312.10 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control 
312.11 	Commission unless excluded under subdivision 2b or are covered by another public pension 
312.12 	fund or plan under section 473.415, subdivision 3;
312.13 	(12) judges of the Tax Court;
312.14 	(13) personnel who were employed on June 30, 1992, by the University of Minnesota 
312.15 	in the management, operation, or maintenance of its heating plant facilities, whose 
312.16 	employment transfers to an employer assuming operation of the heating plant facilities, so 
312.17 	long as the person is employed at the University of Minnesota heating plant by that employer 
312.18 	or by its successor organization;
312.19 	(14) personnel who are employed as seasonal employees in the classified or unclassified 
312.20 	service;
312.21 	(15) persons who are employed by the Department of Commerce as a peace officer in 
312.22 	the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 
312.23 	retirement age specified in section 43A.34, subdivision 4;
312.24 	(16) employees of the University of Minnesota unless excluded under subdivision 2b, 
312.25 	clause (3);
312.26 	(17) employees of the Middle Management Association whose employment began after 
312.27 	July 1, 2007, and to whom section 352.029 does not apply;
312.28 	(18) employees of the Minnesota Government Engineers Council to whom section 
312.29 	352.029 does not apply;
312.30 	(19) employees of the Minnesota Sports Facilities Authority;
312.31 	(20) employees of the Minnesota Association of Professional Employees;
312.32 	(21) employees of the Minnesota State Retirement System;
313.1 	(22) employees of the State Agricultural Society;
313.2 	(23) employees of the Gillette Children's Hospital Board who were employed in the 
313.3 	state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
313.4 	(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota, 
313.5 	employees of Conservation Corps Minnesota so employed on June 30, 2003.
313.6 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
313.7 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
313.8 	amounts required by section 352.04. Employee contributions must be deducted from salary. 
313.9 	Employer contributions are the sole obligation of the employer assuming operation of the 
313.10 	University of Minnesota heating plant facilities or any successor organizations to that 
313.11 	employer.

313.12 	Sec. 9. Minnesota Statutes 2016, section 473.121, subdivision 5a, is amended to read:
313.13 		Subd. 5a.Metropolitan agency. "Metropolitan agency" means the Metropolitan Parks 
313.14 	and Open Space Commission, and the Metropolitan Airports Commission, and Metropolitan 
313.15 	Sports Facilities Commission.

313.16 	Sec. 10. Minnesota Statutes 2016, section 473.164, is amended to read:
313.17 	473.164 SPORTS, AIRPORT COMMISSIONS COMMISSION TO PAY COUNCIL 
313.18 	COSTS.
313.19 		Subdivision 1.Annually reimburse. The Metropolitan Sports Facilities Commission 
313.20 	and the Metropolitan Airports Commission shall annually reimburse the council for costs 
313.21 	incurred by the council in the discharge of its responsibilities relating to the commission. 
313.22 	The costs may be charged against any revenue sources of the commission as determined 
313.23 	by the commission.
313.24 		Subd. 2.Estimates, budget, transfer. On or before May 1 of each year, the council 
313.25 	shall transmit to each the commission an estimate of the costs which the council will incur 
313.26 	in the discharge of its responsibilities related to the commission in the next budget year 
313.27 	including, without limitation, costs in connection with the preparation, review, 
313.28 	implementation and defense of plans, programs and budgets of the commission. Each The
313.29 	commission shall include the estimates in its budget for the next budget year and may 
313.30 	transmit its comments concerning the estimated amount to the council during the budget 
313.31 	review process. Prior to December 15 of each year, the amount budgeted by each the
313.32 	commission for the next budget year may be changed following approval by the council. 
314.1 	During each budget year, the commission shall transfer budgeted funds to the council in 
314.2 	advance when requested by the council.
314.3 		Subd. 3.Final statement. At the conclusion of each budget year, the council, in 
314.4 	cooperation with each the commission, shall adopt a final statement of costs incurred by 
314.5 	the council for each the commission. Where costs incurred in the budget year have exceeded 
314.6 	the amount budgeted, each the commission shall transfer to the council the additional moneys 
314.7 	needed to pay the amount of the costs in excess of the amount budgeted, and shall include 
314.8 	a sum in its next budget. Any excess of budgeted costs over actual costs may be retained 
314.9 	by the council and applied to the payment of budgeted costs in the next year.

314.10 	Sec. 11. Minnesota Statutes 2016, section 473.565, subdivision 1, is amended to read:
314.11 		Subdivision 1.In MSRS; exceptions. All employees of the former commission shall 
314.12 	be members of the Minnesota State Retirement System with respect to service rendered on 
314.13 	or after May 17, 1977, except as provided in this section.

314.14 	Sec. 12. Minnesota Statutes 2016, section 473.755, subdivision 4, is amended to read:
314.15 		Subd. 4.Bylaws. The authority shall adopt bylaws to establish rules of procedure, the 
314.16 	powers and duties of its officers, and other matters relating to the governance of the authority 
314.17 	and the exercise of its powers. Except as provided in this section, the bylaws adopted under 
314.18 	this subdivision shall be similar in form and substance to bylaws adopted by the Metropolitan 
314.19 	Sports Facilities Commission pursuant to Minnesota Statutes 2012, section 473.553.

314.20 	Sec. 13. Minnesota Statutes 2016, section 473.763, subdivision 2, is amended to read:
314.21 		Subd. 2.Acquisition. Subject to the rules of Major League Baseball, the governor and 
314.22 	the Metropolitan Sports Facilities Commission must attempt to facilitate the formation of 
314.23 	a corporation to acquire the baseball franchise and to identify an individual private managing 
314.24 	owner of the corporation. The corporation formed to acquire the franchise shall have a 
314.25 	capital structure in compliance with all of the following provisions:
314.26 	(1) there may be two classes of capital stock: common stock and preferred stock. Both 
314.27 	classes of stock must give holders voting rights with respect to any relocation or voluntary 
314.28 	contraction of the franchise;
314.29 	(2) the private managing owner must own no less than 25 percent and no more than 35 
314.30 	percent of the common stock. For purposes of this restriction, shares of common stock 
314.31 	owned by the private managing owner include shares of common stock owned by any related 
314.32 	taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986, as amended. 
315.1 	Other than the rights of all other holders of common stock and preferred stock with respect 
315.2 	to relocation or voluntary contraction of the franchise, the private managing owner must 
315.3 	control all aspects of the operation of the corporation;
315.4 	(3) other than the private managing owner, no individual or entity may own more than 
315.5 	five percent of the common stock of the corporation;
315.6 	(4) at least 50 percent of the ownership of the common stock must be sold to members 
315.7 	of the general public in a general solicitation and a person or entity must not own more than 
315.8 	one percent of common stock of the corporation; and
315.9 	(5) the articles of incorporation, bylaws, and other governing documents must provide 
315.10 	that the franchise may not move outside of the state or agree to voluntary contraction without 
315.11 	approval of at least 75 percent of the shares of common stock and at least 75 percent of the 
315.12 	shares of preferred stock. Notwithstanding any law to the contrary, these 75 percent approval 
315.13 	requirements shall not be amended by the shareholders or by any other means.
315.14 	Except as specifically provided by Laws 2006, chapter 257, no state agency may spend 
315.15 	money from any state fund for the purpose of generating revenue under this subdivision or 
315.16 	for the purpose of providing operating support or defraying operating losses of a professional 
315.17 	baseball franchise.

315.18 	Sec. 14. Minnesota Statutes 2016, section 473J.03, is amended by adding a subdivision 
315.19 	to read:
315.20 		Subd. 13.Stadium space. "Stadium space" means a seat, personal seat license, suite, 
315.21 	club room, parking, or any other part of the stadium or license to access any part of the 
315.22 	stadium that a member of the general public would have to pay to use or access.

315.23 	Sec. 15. Minnesota Statutes 2016, section 473J.07, subdivision 2, is amended to read:
315.24 		Subd. 2.Membership. (a) The authority shall consist of five members.
315.25 	(b) The chair and twoThree members shall be appointed by the governor and confirmed 
315.26 	by the house of representatives and the senate. One member appointed by the governor shall 
315.27 	serve until December 31 of the third year following appointment and one member shall 
315.28 	serve until December 31 of the fourth year following appointment. Thereafter, members 
315.29 	appointed by the governor shall serve four-year terms, beginning January 1. Each member 
315.30 	serves until a successor is appointed and takes office unless removed by the appointing 
315.31 	authority for cause. Cause for removal includes violation of the employee code of ethics in 
315.32 	section 43A.38. The chair serves at the pleasure of the governor.
316.1 	(c) The mayor of the city shall appoint and the house of representatives and the senate 
316.2 	shall confirm two members to the authority. One member appointed by the mayor of the 
316.3 	city shall serve until December 31 of the third year following appointment and one member 
316.4 	shall serve until December 31 of the fourth year following appointment. Thereafter, members 
316.5 	appointed under this paragraph shall serve four-year terms beginning January 1. Each 
316.6 	member serves until a successor is appointed and takes office unless removed by the 
316.7 	appointing authority for cause. Cause for removal includes violation of the employee code 
316.8 	of ethics in section 43A.38. Members appointed under this paragraph may reside within the 
316.9 	city and may be appointed officials of a political subdivision.
316.10 	(d) The initial members of the authority must be appointed not later than June 13, 2012.

316.11 	EFFECTIVE DATE. This section is effective the day following final enactment and 
316.12 	applies to members appointed on or after the day following final enactment.

316.13 	Sec. 16. Minnesota Statutes 2016, section 473J.07, subdivision 3, is amended to read:
316.14 		Subd. 3.Compensation. The authority may compensate its members, other than the 
316.15 	chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided by 
316.16 	other law, a salary in an amount fixed by the authority, no more than half of the salary of 
316.17 	the executive director of the authority in fiscal year 2019 and shall be reimbursed for 
316.18 	reasonable expenses to the same extent as a member.

316.19 	Sec. 17. Minnesota Statutes 2016, section 473J.07, subdivision 4, is amended to read:
316.20 		Subd. 4.Chair. The chair presides at all meetings of the authority, if present, and 
316.21 	performs all other assigned duties and functions. The members of the authority shall 
316.22 	biennially elect a chair from among its members. The authority may appoint from among 
316.23 	its members a vice-chair to act for the chair during the temporary absence or disability of 
316.24 	the chair, and any other officers the authority determines are necessary or convenient.

316.25 	Sec. 18. Minnesota Statutes 2016, section 473J.07, subdivision 7, is amended to read:
316.26 		Subd. 7.Audit. The legislative auditor shall audit the books and accounts of the authority 
316.27 	once each year or as often as the legislative auditor's funds and personnel permit. The 
316.28 	authority shall pay the total cost of the audit pursuant to section 3.9741. The legislative 
316.29 	auditor may conduct examinations of the authority's finances, budgets, expenditures, 
316.30 	revenues, and its operation. The legislative auditor may periodically examine the authority's 
316.31 	use of stadium space by the authority's members, staff, family, friends, charitable 
316.32 	organizations, and vendors.

317.1 	Sec. 19. Minnesota Statutes 2016, section 473J.07, subdivision 8, is amended to read:
317.2 		Subd. 8.Executive director; employees. The authority may appoint an executive director 
317.3 	to serve as the chief executive officer of the authority. The executive director serves at the 
317.4 	pleasure of the authority and receives compensation as determined by the authority not to 
317.5 	exceed $135,000. The executive director may be responsible for the operation, management, 
317.6 	and promotion of activities of the authority, as prescribed by the authority. The executive 
317.7 	director has the powers necessarily incident to the performance of duties required and powers 
317.8 	granted by the authority, but does not have authority to incur liability or make expenditures 
317.9 	on behalf of the authority without general or specific directions by the authority, as shown 
317.10 	by the bylaws or minutes of a meeting of the authority. The executive director is responsible 
317.11 	for hiring, supervision, and dismissal of all other employees of the authority. The authority 
317.12 	must conduct an annual employee evaluation of the executive director, which must be 
317.13 	reviewed and approved by the entire board.

317.14 	Sec. 20. Minnesota Statutes 2016, section 473J.07, is amended by adding a subdivision 
317.15 	to read:
317.16 		Subd. 8a.Budget; report. After adoption, the authority shall submit its annual budget 
317.17 	to the commissioner of management and budget and to the chairs and ranking minority 
317.18 	members of the senate finance and house of representatives ways and means committees.

317.19 	Sec. 21. Minnesota Statutes 2016, section 473J.07, is amended by adding a subdivision 
317.20 	to read:
317.21 		Subd. 8b.Contracts. The authority may not enter a contract with a value of more than 
317.22 	$5,000 unless the terms of the contract have been approved by the authority by public vote 
317.23 	at a regular or special meeting. The authority may not delegate or authorize the executive 
317.24 	director to execute contracts on behalf of the authority in a manner that conflicts with this 
317.25 	subdivision.

317.26 	Sec. 22. Minnesota Statutes 2016, section 473J.07, subdivision 9, is amended to read:
317.27 		Subd. 9.Web site. The authority shall establish a Web site for purposes of providing 
317.28 	information to the public concerning all actions taken by the authority. At a minimum, the 
317.29 	Web site must contain a current version of the authority's bylaws, notices of upcoming 
317.30 	meetings, minutes of the authority's meetings, each annual budget, each use agreement, 
317.31 	each management agreement, each sponsorship agreement, meeting minutes for all meetings, 
317.32 	policies, and procedures, and contact telephone, electronic mail, and facsimile numbers for 
318.1 	public comments. This subdivision does not apply to information that is classified as not 
318.2 	public data, as defined in section 13.02, subdivision 8a, under other law.

318.3 	Sec. 23. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision 
318.4 	to read:
318.5 		Subd. 7a.Code of conduct and political activities. (a) The authority shall adopt and 
318.6 	comply with the latest version of the state code of conduct promulgated by Minnesota 
318.7 	Management and Budget, and sections 43A.32 and 43A.38 apply to the authority members 
318.8 	and the authority's employees.
318.9 	(b) For purposes of section 43A.38, subdivision 4, use of or preferential access to stadium 
318.10 	space by an authority member or employee constitutes an impermissible use of state property 
318.11 	for the employee's private interest, unless the use or terms of access are expressly permitted 
318.12 	by this section.

318.13 	Sec. 24. Minnesota Statutes 2016, section 473J.09, subdivision 13, is amended to read:
318.14 		Subd. 13.Legislative report. (a) The authority must report in writing to the chairs and 
318.15 	ranking minority members of the legislative committees with jurisdiction over state 
318.16 	government finance and to the senate Finance Committee and the house of representatives 
318.17 	Ways and Means Committee by January 15 of each year on the following, and in person to 
318.18 	the Legislative Commission on Minnesota Sports Facilities at least quarterly. The reports 
318.19 	must describe:
318.20 	(1) any recommended increases in the rate or dollar amount of tax;
318.21 	(2) any recommended increases in the debt of the authority;
318.22 	(3) the overall work and role of the authority;
318.23 	(4) the authority's proposed operating and capital budgets; and
318.24 	(5) the authority's implementation of the operating and capital budgets, including 
318.25 	information on actual revenues and expenditures, events conducted, and all expected or 
318.26 	unexpected maintenance and capital repair needs arising since the time of the last report;
318.27 	(6) a listing of all stadium amenities under the control of the authority since the time of 
318.28 	the last report, and how the amenities were used; and
318.29 	(7) at least once each year, a detailed accounting of amounts expended for operating 
318.30 	expenses of the stadium for the most recently available year by functional category or object 
319.1 	or both, estimates of those expenses for the current and coming year, and description of any 
319.2 	plans for managing and improving efficiencies in the operation of the stadium.
319.3 	(b) Copies of each report containing the information required by paragraph (a), clause 
319.4 	(5), must also be provided to the commissioner of management and budget. The authority 
319.5 	must also provide, at the request of the commissioner, any additional information on its 
319.6 	expenditures on and plans for managing and budgeting for the costs of operating the stadium, 
319.7 	including the reserve for capital expenditures. The commissioner must, at least once each 
319.8 	biennium, review the amounts expended for stadium operations and make recommendations 
319.9 	to the governor on the amount needed for state payment of those costs. The governor's 
319.10 	budget must include recommendations for the payments under section 473J.13, subdivisions 
319.11 	2, paragraph (b), and 4, paragraph (c), and whether modification of the statutorily 
319.12 	appropriated amounts is recommended or required.

319.13 	Sec. 25. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision 
319.14 	to read:
319.15 		Subd. 15.Consignment agreement; authority's suites. (a) The authority must negotiate 
319.16 	an agreement providing for consignment of the authority's suites to the primary tenant 
319.17 	consistent with the use agreement and subject to this subdivision. The final terms of the 
319.18 	consignment must be approved by the chairs of the committees of the house of representatives 
319.19 	and the senate with jurisdiction over state government finance and must include the following:
319.20 	(1) the primary tenant is the consignee and must make all commercially reasonable 
319.21 	efforts to sell access to the suites to third parties;
319.22 	(2) the authority must receive a percentage of the revenues from consignment of the 
319.23 	suites each year equal to at least 90 percent of the first $400,000 of revenue and 65 percent 
319.24 	of any amount in excess of that and the amount of revenue retained by the primary tenant 
319.25 	must not exceed its actual transaction, marketing, and administrative costs that it would not 
319.26 	have incurred but for the consignment; and
319.27 	(3) the terms of the consignment agreement are effective for a period of five years 
319.28 	beginning no later than August 1, 2018, and must be renegotiated no later than August 1, 
319.29 	2023, and every five years thereafter.
319.30 	(b) Data collected, created, or maintained by the authority related to negotiation of the 
319.31 	consignment required by this paragraph are nonpublic data, as defined in section 13.02, 
319.32 	subdivision 9. Data provided to the legislative chairs under the approval requirement in 
319.33 	paragraph (a) may not be disclosed without the consent of the primary tenant.
320.1 	(c) The authority must use revenues from the consignment agreement to pay the operating 
320.2 	expenses of the stadium.

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

320.4 	Sec. 26. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision 
320.5 	to read:
320.6 		Subd. 16.Report on stadium space use by authority members, staff, and vendors.
 320.7 	The authority shall report the following information annually to the governor, the mayor of 
320.8 	the city of Minneapolis, the chair of the Legislative Commission on Minnesota Sports 
320.9 	Facilities, and the chairs and ranking minority members of the senate Finance Committee 
320.10 	and the house of representatives Ways and Means Committee regarding use of stadium 
320.11 	space by authority members, staff, family, friends, charitable organizations, and vendors or 
320.12 	their guests:
320.13 	(1) the costs of use;
320.14 	(2) the identity of each adult attendee and their legitimate business purpose for attendance;
320.15 	(3) the date, time, and a general description of the stadium event at which the suite was 
320.16 	used; and
320.17 	(4) the value and description of any food, parking, or other benefits provided to attendees.

320.18 	Sec. 27. [473J.095] AUTHORITY'S USE OF STADIUM SPACE.
320.19 		Subdivision 1.Application. The restrictions in this section apply to the use of stadium 
320.20 	space provided to the authority under the terms of the lease or use agreement required under 
320.21 	section 473J.15, subdivision 3.
320.22 		Subd. 2.Use of stadium space by authority members and staff. (a) Authority members 
320.23 	and authority staff, including the executive director of the authority, may not use stadium 
320.24 	space unless the use is for a legitimate business purpose. For purposes of this subdivision, 
320.25 	"legitimate business purpose" means:
320.26 	(1) in the case of a suite, the executive director's use of the suite to conduct oversight of 
320.27 	stadium operations; or
320.28 	(2) in the case of stadium space other than a suite:
320.29 	(i) participating in a marketing effort arranged by the authority's management vendor;
320.30 	(ii) conducting oversight of stadium operations; or
321.1 	(iii) making stadium space available to nonprofit charitable organizations to provide 
321.2 	access to events at the stadium for people served by the charitable organization.
321.3 	The executive director of the authority must ensure that use of stadium space does not 
321.4 	violate open meeting laws.
321.5 	(b) Use of stadium space by authority staff must be based on an express written 
321.6 	assignment of duties by the executive director or, in the case of use by the executive director, 
321.7 	an express written assignment of duties by the authority chair. In all cases, use of stadium 
321.8 	space by authority staff must be approved by a vote of the authority at a public meeting, 
321.9 	and the legitimate business purpose for use must be made a part of the public record. 
321.10 	Authority staff may not be provided free food, beverages, or stadium parking unless necessary 
321.11 	to complete the assigned duties.
321.12 		Subd. 4.Use of stadium space by family, friends, and other guests. The authority or 
321.13 	its members may not grant access to stadium space to family members, friends, or other 
321.14 	guests of the authority's members or staff unless the use is for a legitimate business purpose. 
321.15 	The use must be approved by a vote of the authority at a public meeting, and the legitimate 
321.16 	business purpose must be made a part of the public record. For purposes of this subdivision, 
321.17 	"legitimate business purpose" means being a prospective user of the stadium.
321.18 		Subd. 5.Open market purchase. This section does not prohibit an authority member, 
321.19 	authority staff, or family, friends, or other guests of authority members or staff from attending 
321.20 	events or renting stadium space, if a ticket or a right of access to the space was purchased 
321.21 	on the open market through the same channels, and for the same price, as those available 
321.22 	to the general public.

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

321.24 	Sec. 28. Minnesota Statutes 2016, section 473J.13, subdivision 2, is amended to read:
321.25 		Subd. 2.Operating expenses. (a) The authority must pay or cause to be paid all operating 
321.26 	expenses of the stadium. The authority must require in the lease or use agreement with the 
321.27 	NFL team that the NFL team pay the authority, beginning January 1, 2016, or other date as 
321.28 	mutually agreed upon by the parties, toward operating costs of the stadium, $8,500,000 
321.29 	each year, increased by a three percent annual inflation rate.
321.30 	(b)(1) Beginning January 1, 2016, or other date as mutually agreed upon by the parties, 
321.31 	and continuing through 2020, the state shall pay the authority operating expenses, $6,000,000 
321.32 	each year, increased by an annual adjustment factor. The payment of $6,000,000 per year 
321.33 	beginning in 2016 is a payment by the state, which shall be repaid to the state, using funds 
322.1 	as provided under section 297A.994, subdivision 4, clause (4). After 2020, the state shall 
322.2 	assume this payment, using funds generated in accordance with the city of Minneapolis as 
322.3 	specified under section 297A.994, subdivision 4, clause (3); and
322.4 	(2) beginning for fiscal year 2020, the payment under this section must be reduced by 
322.5 	the additional revenue received by the authority under the consignment under section 473J.09, 
322.6 	subdivision 15, in the prior fiscal year.
322.7 	(c) The authority may establish an operating reserve to cover operating expense shortfalls 
322.8 	and may accept funds from any source for deposit in the operating reserve. The establishment 
322.9 	or funding of an authority operating reserve must not decrease the amounts required to be 
322.10 	paid to the authority toward operating costs under this subdivision unless agreed to by the 
322.11 	authority.
322.12 	(d) The authority will be responsible for operating cost overruns.
322.13 	(e) After the joint selection of the third-party manager or program manager, the authority 
322.14 	may agree with a program manager or other third-party manager of the stadium on a fixed 
322.15 	cost operating, management, or employment agreement with operating cost protections 
322.16 	under which the program manager or third-party manager assumes responsibility for stadium 
322.17 	operating costs and shortfalls. The agreement with the manager must require the manager 
322.18 	to prepare an initial and ongoing operating plan and operating budgets for approval by the 
322.19 	authority in consultation with the NFL team. The manager must agree to operate the stadium 
322.20 	in accordance with the approved operating plan and operating budget.

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

322.22 	Sec. 29. Minnesota Statutes 2016, section 473J.13, subdivision 3, is amended to read:
322.23 		Subd. 3.Public access. The authority will work to maximize access for public and 
322.24 	amateur sports, community, and civic events, and other public events in type and on terms 
322.25 	consistent with those currently held at the existing football stadium, as defined in Minnesota 
322.26 	Statutes 2012, section 473.551, subdivision 9. The authority may provide that these events 
322.27 	have exclusive use of the premises at agreed-upon times subject to the scheduling rights of 
322.28 	the NFL team under the lease or use agreement.

322.29 	Sec. 30. Minnesota Statutes 2016, section 473J.25, subdivision 3, is amended to read:
322.30 		Subd. 3.Metropolitan Sports Facilities Commission abolished; interim powers 
322.31 	conferred on authority. Upon transfer to the authority of all remaining assets, liabilities, 
322.32 	and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the 
323.1 	Metropolitan Sports Facilities Commission is abolished. When the remaining assets, 
323.2 	liabilities, and obligations of the Metropolitan Sports Facilities Commission have been 
323.3 	transferred to the authority and the commission has been abolished, the powers and duties 
323.4 	of the commission under Minnesota Statutes 2012, sections 473.551 to 473.599, and any 
323.5 	other law shall devolve upon the authority, in addition to the powers and duties of the 
323.6 	authority under chapter 473J, until the first NFL home game is played at the stadium.

323.7 	Sec. 31. Minnesota Statutes 2016, section 473J.27, subdivision 2, is amended to read:
323.8 		Subd. 2.High school league. The lessee of the stadium must make the facilities of the 
323.9 	stadium available for use by the Minnesota State High School League for at least seven 
323.10 	days each year for high school soccer and football tournaments. The lessee of the stadium 
323.11 	must provide, and may not directly, or through a management company, charge the league 
323.12 	a fee for, this use, including security, ticket takers, custodial or cleaning services, or other 
323.13 	similar services in connection with this use.

323.14 	Sec. 32. RECOVERY; MINNESOTA SPORTS FACILITIES AUTHORITY.
 323.15 	The Minnesota Sports Facilities Authority must make every effort to recover the fair 
323.16 	market value of any food, parking, tickets, and access to stadium suites provided to a person 
323.17 	prior to January 1, 2017, if the provision of those benefits to the person was not in the public 
323.18 	interest. The authority shall report on recovery efforts to the commissioner of management 
323.19 	and budget and to the chairs and ranking minority members of the senate finance and house 
323.20 	of representatives ways and means committees by May 31, 2018. Money recovered under 
323.21 	this section is transferred by July 1, 2018, to the commissioner of management and budget 
323.22 	for deposit in the general reserve account established under Minnesota Statutes, section 
323.23 	297E.021, subdivision 4.

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

323.25 	Sec. 33. CHAIR SALARY; MINNESOTA SPORTS FACILITIES AUTHORITY.
 323.26 	By February 15, 2019, the committees in the house of representatives and the senate 
323.27 	with jurisdiction over state government finance shall recommend legislation limiting the 
323.28 	salary of the chair of the Minnesota Sports Facilities Authority that shall apply beginning 
323.29 	in fiscal year 2020.

324.1 	Sec. 34.  REPEALER.
 324.2 	(a) Minnesota Statutes 2016, sections 137.50, subdivision 5; 473.551; 473.552; 473.553, 
324.3 	subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 473.556, subdivisions 1, 2, 3, 4, 5, 
324.4 	6, 7, 8, 9, 10, 11, 12, 13, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; 
324.5 	473.581; 473.592, subdivision 1; 473.595; 473.598; 473.599; and 473.76, are repealed.
324.6 	(b) Minnesota Statutes 2016, section 473J.09, subdivision 14, is repealed.

324.7 	Sec. 35. EFFECTIVE DATE.
 324.8 	This article is effective the day following final enactment. The terms of all current 
324.9 	members of the Minnesota Sports Facilities Authority terminate January 31, 2019. Appointing 
324.10 	authorities must appoint new members of the authority by January 15, 2019, to serve terms 
324.11 	beginning February 1, 2019. Appointments shall be effective and the appointees may exercise 
324.12 	the duties of the office upon receipt of the letter of appointment by the president of the 
324.13 	senate and the speaker of the house.

APPENDIX 

Repealed Minnesota Statutes: H4099-1 

3.93 DEFINITIONS.
As used in sections 3.93 to 3.96 "attack" means an action or series of actions taken by an enemy of the United States resulting in substantial damage or injury to persons or property in this state through sabotage, bombs, missiles, shellfire, or atomic, radiological, chemical, bacteriological, or biological means. 

3.94 PLACE OF SESSION.
Whenever, in the event of an attack, or a finding by the executive council that an attack may be imminent, the governor deems the place of the legislative session then prescribed to be unsafe, the governor may change it to any other place within or without the state which the governor deems safe and convenient. 

3.95 SPECIAL SESSION IN EVENT OF ATTACK.
In the event of an attack, if the legislature is not in session, the governor shall convene a special session as soon as practicable, but within 30 days after the inception of the attack. If the governor fails to issue the call, the legislature, on the first Tuesday after the first Monday more than 30 days after the inception of the attack, shall convene without call at the place where the governor then maintains official office. 

3.96 QUORUM AND VOTE REQUIREMENTS.
In the event of an attack the quorum requirement for the legislature is a majority of the members of each house who convene for the session. If the affirmative vote of a specified proportion of members of the legislature would otherwise be required to approve a bill, resolution, or for any other action, the same proportion of the members of each house convening at the session is sufficient. 

3.98 FISCAL NOTES.Subd. 4.Uniform procedure. 
The Legislative Budget Office shall prescribe a uniform procedure to govern the departments and agencies of the state in complying with the requirements of this section. 

8.10 COMPENSATION OF ATTORNEYS.
The compensation of these attorneys for this service shall be 25 percent of the sums and amounts collected and received by the state, such compensation to be contingent upon collection and payment thereof to the state, with no further liability on the part of the state, and the amount of such compensation is hereby appropriated, payable upon the certificate of the attorney general filed with the commissioner of management and budget. 

10A.30 STATE ELECTIONS CAMPAIGN ACCOUNT.Subd. 2.Separate account. 
Within the state elections campaign account there must be maintained a separate political party account for the state committee and the candidates of each political party and a general account. 

10A.31 DESIGNATION OF INCOME TAX PAYMENTS.Subd. 3a.Qualification of political parties. 
(a) A major political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a major political party by July 1 of the taxable year. 

(b) A minor political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a minor party statewide by July 1 of the taxable year. 

(c) The secretary of state shall notify each major and minor political party by the first Monday in January of each odd-numbered year of the conditions necessary for the party to participate in income tax form and property tax refund return programs. 

(d) The secretary of state shall notify each political party, the commissioner of revenue, and the Campaign Finance and Public Disclosure Board by July 1 of each year and following certification of the results of each general election of the political parties that qualify for inclusion on the income tax form and property tax refund return as provided in subdivision 3. 

Subd. 5a.Party account for legislative candidates. 
To ensure that money will be returned to the counties from which it was collected and to ensure that the distribution of money rationally relates to the support for particular parties or for particular candidates within legislative districts, money from the party accounts for legislative candidates must be distributed as provided in this subdivision. 

Each candidate for the state senate and state house of representatives whose name is to appear on the ballot in the general election must receive money from the candidate's party account allocated to candidates for the state senate or state house of representatives, whichever applies, according to the following formula: 

For each county within the candidate's district, the candidate's share of the dollars designated by taxpayers who resided in that county and credited to the candidate's party account and allocated to that office must be: 

(1) the sum of the votes cast in the last general election in that part of the county in the candidate's district for all candidates of that candidate's party whose names appeared on the ballot statewide and for the state senate and state house of representatives, divided by 

(2) the sum of the votes cast in the entire county in the last general election for all candidates of that candidate's party whose names appeared on the ballot statewide and for the state senate and state house of representatives, multiplied by 

(3) the amount in the candidate's party account designated by taxpayers who resided in that county and allocated to that office. 

The sum of all the county shares calculated in the formula above is the candidate's share of the candidate's party account. 

In a year in which an election for the state senate occurs, with respect to votes for candidates for the state senate only, "last general election" means the last general election in which an election for the state senate occurred. 

For a party under whose name no candidate's name appeared on the ballot statewide in the last general election, amounts in the party's account must be allocated based on (i) the number of people voting in the last general election in that part of the county in the candidate's district, divided by (ii) the number of the people voting in the entire county in the last general election, multiplied by (iii) the amount in the candidate's party account designated by taxpayers who resided in that county and allocated to that office. 

In the first general election after the legislature is redistricted, "the candidate's district" means the newly drawn district and voting data from the last general election must be applied to the area encompassing the newly drawn district, notwithstanding that the area was in a different district in the last general election. 

If in a district there was no candidate of a party for the state senate or state house of representatives in the last general election, or if a candidate for the state senate or state house of representatives was unopposed, the vote for that office for that party is the average vote of all the remaining candidates of that party in each county of that district whose votes are included in the sums in clauses (1) and (2). The average vote must be added to the sums in clauses (1) and (2) before the calculation is made for all districts in the county. 

Subd. 6.Distribution of party accounts. 
As soon as the board has obtained from the secretary of state the results of the primary election, but no later than one week after certification by the State Canvassing Board of the results of the primary, the board must distribute the available money in each party account, as certified by the commissioner of revenue one week before the state primary, to the candidates of that party who have signed a spending limit agreement under section 10A.322 and filed the affidavit of contributions required by section 10A.323, who were opposed in either the primary election or the general election, and whose names are to appear on the ballot in the general election, according to the allocations set forth in subdivisions 5 and 5a. The public subsidy from the party account may not be paid in an amount greater than the expenditure limit of the candidate or the expenditure limit that would have applied to the candidate if the candidate had not been freed from expenditure limits under section 10A.25, subdivision 10. 

Subd. 6a.Party account money not distributed. 
Money from a party account not distributed to candidates for state senator or representative in any election year must be returned to the general fund of the state, except that the subsidy from the party account an unopposed candidate would otherwise have been eligible to receive must be paid to the state committee of the candidate's political party to be deposited in a special account under subdivision 5, paragraph (b), clause (6), and used for only those items permitted under section 10A.275. Money from a party account not distributed to candidates for other offices in an election year must be returned to the party account for reallocation to candidates as provided in subdivision 5, paragraph (b), in the following year. 

13.02 DEFINITIONS.Subd. 2.Commissioner. 
"Commissioner" means the commissioner of the Department of Administration. 

14.381 UNADOPTED RULES.Subd. 3.Costs. 
The agency is liable for all Office of Administrative Hearings costs associated with review of the petition. If the administrative law judge rules in favor of the agency, the agency may recover all or a portion of the costs from the petitioner unless the petitioner is entitled to proceed in forma pauperis under section 563.01 or the administrative law judge determines that the petition was brought in good faith and that an assessment of the costs would constitute an undue hardship for the petitioner. If an agency has reason to believe it will prevail in the consideration of a petition, and that an effort to recover costs from the petitioner will be unsuccessful, it may request the chief administrative law judge to require the petitioner to provide bond or a deposit to the agency in an amount the chief administrative law judge estimates will be the cost to the Office of Administrative Hearings to review the petition. 

137.50 DEFINITIONS.Subd. 5.Commission. 
"Commission" means the Metropolitan Sports Facilities Commission. 

155A.28 HAIR BRAIDING.Subdivision 1.Registration. 
Any person engaged in hair braiding solely for compensation as a profession, except persons licensed as cosmetologists, shall register with the Minnesota Board of Cosmetologist Examiners in a form determined by the board. 

Subd. 3.Requirements. 
In order to qualify for initial registration, any person engaged in hair braiding solely for compensation as a profession, except persons licensed as cosmetologists, shall satisfactorily complete instruction at either an accredited school, professional association, or by an individual approved by the board. Instruction includes coursework covering the topics of health, safety, infection control, and state laws related to cosmetology not to exceed 30 hours. The coursework is encouraged to be provided in a foreign language format and such availability shall be reported to and posted by the Minnesota Board of Cosmetologist Examiners. 

Subd. 4.Curriculum. 
An accredited school, professional association, or an individual approved by the board desiring to provide the coursework required under subdivision 3 shall have curriculum in place by January 1, 2008. 

177.24 PAYMENT OF MINIMUM WAGES.Subd. 2.Gratuities not applied. 
No employer may directly or indirectly credit, apply, or utilize gratuities towards payment of the minimum wage set by this section or federal law. 

216B.2423 WIND POWER MANDATE.Subdivision 1.Mandate. 
A public utility, as defined in section 216B.02, subdivision 4, that operates a nuclear-powered electric generating plant within this state must construct and operate, purchase, or contract to construct and operate: (1) 225 megawatts of electric energy installed capacity generated by wind energy conversion systems within the state by December 31, 1998; and (2) an additional 200 megawatts of installed capacity so generated by December 31, 2002. 

For the purpose of this section, "wind energy conversion system" has the meaning given it in section 216C.06, subdivision 19. 

Subd. 2.Resource planning mandate. 
The Public Utilities Commission shall order a public utility subject to subdivision 1, to construct and operate, purchase, or contract to purchase an additional 400 megawatts of electric energy installed capacity generated by wind energy conversion systems by December 31, 2002, subject to resource planning and least cost planning requirements in section 216B.2422. 

Subd. 2a.Site preference. 
The Public Utilities Commission shall ensure that a utility subject to the requirements of subdivision 1, clause (2), shall implement that clause with a preference for wind energy conversion systems within the state. This preference shall not prevent the utility from constructing or contracting to construct wind energy conversion systems outside the state, if the Public Utilities Commission determines that selection of a facility within the state conflicts with the requirements of section 216B.03. 

Subd. 3.Standard contract for wind energy conversion systems. 
The Public Utilities Commission shall require a public utility subject to subdivision 1 to develop and file in a form acceptable to the commission by October 1, 1997, a standard form contract for the purchase of electricity from wind conversion systems with installed capacity of two megawatts and less. For purposes of applying the two megawatts limit, the installed capacity sold to the public utility from a single seller or affiliated group of sellers shall be cumulated. The standard contract shall include all the terms and conditions for purchasing wind-generated power by the utility, except for price and any other specific terms necessary to ensure system reliability and safety, which shall be separately negotiable. 

471.9996 RENT CONTROL PROHIBITED.Subd. 2.Exception. 
Subdivision 1 does not preclude a statutory or home rule charter city, county, or town from controlling rents on private residential property to the extent that the city, county, or town has the power to adopt an ordinance, charter amendment, or law to control these rents if the ordinance, charter amendment, or law that controls rents is approved in a general election. Subdivision 1 does not limit any power or authority of the voters of a statutory or home rule charter city, county, or town to petition for an ordinance or charter amendment to control rents on private residential property to the extent that the power or authority is otherwise provided for by law, and if the ordinance or charter amendment is approved in a general election. This subdivision does not grant any additional power or authority to the citizens of a statutory or home rule charter city, county, or town to vote on any question beyond that contained in other law. 

473.123 METROPOLITAN COUNCIL.Subd. 3.Membership; appointment; qualifications. 
(a) Sixteen members must be appointed by the governor from districts defined by this section. Each council member must reside in the council district represented. Each council district must be represented by one member of the council. 

(b) In addition to the notice required by section 15.0597, subdivision 4, notice of vacancies and expiration of terms must be published in newspapers of general circulation in the metropolitan area and the appropriate districts. The governing bodies of the statutory and home rule charter cities, counties, and towns having territory in the district for which a member is to be appointed must be notified in writing. The notices must describe the appointments process and invite participation and recommendations on the appointment. 

(c) The governor shall create a nominating committee, composed of seven metropolitan citizens appointed by the governor, to nominate persons for appointment to the council from districts. Three of the committee members must be local elected officials. Following the submission of applications as provided under section 15.0597, subdivision 5, the nominating committee shall conduct public meetings, after appropriate notice, to accept statements from or on behalf of persons who have applied or been nominated for appointment and to allow consultation with and secure the advice of the public and local elected officials. The committee shall hold the meeting on each appointment in the district or in a reasonably convenient and accessible location in the part of the metropolitan area in which the district is located. The committee may consolidate meetings. Following the meetings, the committee shall submit to the governor a list of nominees for each appointment. The governor is not required to appoint from the list. 

(d) Before making an appointment, the governor shall consult with all members of the legislature from the council district for which the member is to be appointed. 

(e) Appointments to the council are subject to the advice and consent of the senate as provided in section 15.066. 

(f) Members of the council must be appointed to reflect fairly the various demographic, political, and other interests in the metropolitan area and the districts. 

(g) Members of the council must be persons knowledgeable about urban and metropolitan affairs. 

(h) Any vacancy in the office of a council member shall immediately be filled for the unexpired term. In filling a vacancy, the governor may forgo the requirements of paragraph (c) if the governor has made appointments in full compliance with the requirements of this subdivision within the preceding 12 months. 

473.551 DEFINITIONS.Subdivision 1.Terms. 
For the purposes of sections 473.551 to 473.599, the following terms shall have the meanings given in this section. 

Subd. 2.Cities. 
"Cities" means the cities of Minneapolis, Bloomington, and Richfield. 

Subd. 3.Commission. 
"Commission" means the Metropolitan Sports Facilities Commission. 

Subd. 4.Metrodome debt service. 
"Metrodome debt service" means the principal and interest due each year on all bonds or revenue anticipation certificates issued by the council under section 473.581. 

Subd. 5.Metropolitan sports area. 
"Metropolitan sports area" means the real estate in the city of Bloomington described in the ownership and operations agreement, and all buildings, structures, improvements and equipment thereon including the met center, owned by the cities on May 17, 1977, the date of enactment of sections 473.551 to 473.595, and since transferred to the commission pursuant to sections 473.551 to 473.595. 

Subd. 6.Metropolitan Sports Area Commission. 
"Metropolitan Sports Area Commission" means that commission established by an ownership and operations agreement made and entered into as of August 13, 1954, validated by Laws 1955, Chapter 445, to which the cities were parties on May 17, 1977. 

Subd. 7.Multipurpose sports facility. 
"Multipurpose sports facility" means a single unit sports facility suitable for university or major league professional baseball, football, and soccer. 

Subd. 8.Sports facility or sports facilities. 
"Sports facility" or "sports facilities" means real or personal property comprising a stadium, stadiums, or arenas suitable for university or major league professional baseball, for university or major league professional football and soccer, or for both, or for university or major league hockey or basketball, or for both, together with adjacent parking facilities, including on the effective date of Laws 1994, chapter 648, the metrodome, the met center, and, upon acquisition by the commission, the basketball and hockey arena. 

Subd. 9.Metrodome. 
"Metrodome" means the Hubert H. Humphrey Metrodome located in the city of Minneapolis constructed and owned by the commission and financed by the bonds of the council issued pursuant to sections 473.551 to 473.595, including all real estate, buildings, improvements, and equipment in and on them. 

Subd. 10.Basketball and hockey arena. 
"Basketball and hockey arena" means the indoor arena building currently occupied and utilized for the playing of university or major league basketball, hockey, and other purposes located in the city of Minneapolis, including all improvements and equipment in the arena and the leasehold or other interest in the arena land appurtenant to the arena, but excluding the health club. 

Subd. 11.Health club. 
"Health club" means that separate portion of the basketball and hockey arena building occupied and utilized by a private sports and health club on the effective date of Laws 1994, chapter 648, the improvements and equipment in and on it, and the leasehold or other interest in the arena land appurtenant to it. 

Subd. 12.Met Center. 
"Met Center" means the real estate in the city of Bloomington presently owned by the commission, formerly utilized for major league hockey, and all buildings, improvements, and equipment in and on it. 

Subd. 13.Development agreement. 
"Development agreement" means the second amended and restated development agreement among the Minneapolis Community Development Agency, Northwest Racquet, Swim & Health Clubs, Inc., and the city of Minneapolis dated August 5, 1988, and as amended before the effective date of Laws 1994, chapter 648. 

Subd. 14.Ground lease. 
"Ground lease" means the ground lease of the arena land between the Minneapolis Community Development Agency and Northwest Racquet, Swim & Health Clubs, Inc., dated August 5, 1988, and as amended before the effective date of Laws 1994, chapter 648. 

Subd. 15.Guarantors. 
"Guarantors" means the individuals who have guaranteed to the Minneapolis Community Development Agency and the city of Minneapolis the performance of the development agreement, ground lease, and certain other obligations pursuant to written guaranty dated February 17, 1988. 

Subd. 16.Arena land. 
"Arena land" means the real estate upon which the basketball and hockey arena and health club have been constructed and any adjacent parcel or parcels which are owned by the city of Minneapolis and subject to the development agreement or the ground lease and all rights, privileges, and easements appertaining to it. 

Subd. 17.Basketball and hockey arena debt service. 
"Basketball and hockey arena debt service" means the principal and interest due each year on all bonds or revenue anticipation certificates issued by the council under section 473.599. 

473.552 LEGISLATIVE POLICY; PURPOSE.
The legislature finds that 

(a) the population in the metropolitan area has a need for sports facilities and that this need cannot be met adequately by the activities of individual municipalities, by agreements among municipalities, or by the private efforts of the people in the metropolitan area, 

(b) the commission's ownership and operation of the metrodome and met center has met in part the foregoing need and has promoted the economic and social interests of the metropolitan area, of the state, and of the public, and 

(c) the commission's acquisition of the basketball and hockey arena on the terms and conditions provided in sections 473.598 and 473.599 shall similarly and more fully meet the foregoing needs and promote these interests. 

It is therefore necessary for the public health, safety and general welfare to establish a procedure for the acquisition and betterment of sports facilities and to create a Metropolitan Sports Facilities Commission. 

473.553 COMMISSION; MEMBERSHIP; ADMINISTRATION.Subdivision 1.General. 
The Metropolitan Sports Facilities Commission is established and shall be organized, structured, and administered as provided in this section. 

Subd. 2.Membership. 
The commission shall consist of six members, appointed by the city council of the city in which the stadium is located plus a chair appointed as provided in subdivision 3. 

Subd. 3.Chair. 
The chair shall be appointed by the governor as the ninth voting member and shall meet all of the qualifications of a member, except the chair need only reside outside the city of Minneapolis. The chair shall preside at all meetings of the commission, if present, and shall perform all other duties and functions assigned by the commission or by law. The commission may appoint from among its members a vice-chair to act for the chair during temporary absence or disability. 

Subd. 4.Qualifications. 
A member shall not during a term of office hold the office of Metropolitan Council member or be a member of another metropolitan agency or hold any judicial office or office of state government. None of the members appointed by the city council of the city in which the stadium is located shall be an elected public official of that city or of another political subdivision any part of whose territory is shared with that city. Each member shall qualify by taking and subscribing the oath of office prescribed by the Minnesota Constitution, article V, section 6. The oath, duly certified by the official administering it, shall be filed with the chair of the Metropolitan Council. 

Subd. 5.Terms. 
The terms of three members shall end the first Monday in January in the year ending in the numeral "5." The terms of the other members and the chair shall end the first Monday in January in the year ending in the numeral "7." The term of each member and the chair shall be four years. The terms shall continue until a successor is appointed and qualified. Members may be removed only for cause. 

Subd. 6.Vacancies. 
A vacancy shall be filled by the appointing authority in the same manner in which the original appointment was made. 

Subd. 7.Compensation. 
Each commission member shall be paid $50 for each day when the member attends one or more meetings or provides other services, as authorized by the commission, and shall be reimbursed for all actual and necessary expenses incurred in the performance of duties. The chair of the Metropolitan Sports Facilities Commission shall receive, unless otherwise provided by other law, a salary in an amount fixed by the members of the commission and shall be reimbursed for reasonable expenses to the same extent as a member. The annual budget of each commission shall provide as a separate account anticipated expenditures for per diem, travel, and associated expenses for the chair and members, and compensation or reimbursement shall be made to the chair and members only when budgeted. 

Subd. 8.Regular and special meetings. 
The commission shall meet regularly at least once each month, at such time and place as the commission shall by resolution designate. Special meetings may be held at any time upon the call of the chair or a majority of the members, upon written notice to each member at least three days prior to the meeting, or upon such other notice as the commission may by resolution provide. Unless otherwise provided, any action within the authority of the commission may be taken by the affirmative vote of a majority of the members. A majority of all of the members of the commission shall constitute a quorum, but a lesser number may meet and adjourn from time to time and compel the attendance of absent members. 

Subd. 9.Personnel code; merit system. 
(a) The council shall by resolution adopt guidelines for a personnel code relating to the employees of the commission, except that nothing in Laws 1974, chapter 422, shall impair the rights of the commission or employee under sections 473.405 and 473.415. After adoption of the guidelines, the commission shall by resolution adopt a personnel code in general conformance therewith. The code shall include a job classification plan, procedures for employment and promotion of personnel based on merit, procedures for the demotion, suspension, or discharge of employees, procedures for hearing grievances, procedures for salary administration, and such other provisions as the council deems appropriate. In addition, the code shall provide for the development by the commission of affirmative action plans, as provided in section 473.143. The executive director of the commission shall administer the code, and the commission shall not take any action inconsistent with the personnel code. 

(b) When a commission employee has been demoted, suspended, or dismissed by the executive director, the employee may, within 30 days after such action becomes effective, file with the commission a written request for a hearing showing the position from which the employee was dismissed, the date of dismissal, and the reason for requesting the hearing, full name and present mailing address. Upon receipt of a request for a hearing the commission shall appoint three of its members to act as an appeal committee and preside at a hearing on the action of the executive director. The hearing shall be held within 30 days after the request is received by the commission, upon written notice mailed or delivered to the employee at the employee's present mailing address, not less than seven days before the hearing. The appeal committee shall approve or disapprove the action of the executive director, and in the case of approval the action of the executive director shall be final. In the case of disapproval the appeal committee may reinstate the employee under such conditions as it deems proper, and may order the payment to the employee of compensation lost as a result of the demotion, suspension or dismissal. 

Subd. 10.Secretary and treasurer. 
At its first regular meeting each year the commission shall appoint a secretary and a treasurer or, in the alternative, a secretary-treasurer. The secretary and treasurer, or secretary-treasurer, may, but need not be, members of the commission, and shall hold office at the pleasure of the commission, subject to the terms of any contract of employment which the commission may enter into with the secretary or treasurer. The secretary shall record the minutes of all meetings of the commission and shall be the custodian of all books and records of the commission except such as the commission shall entrust to the custody of a designated employee. The treasurer shall be the custodian of all moneys received by the commission except such as the commission shall entrust to the custody of a designated employee. The commission may appoint a deputy to perform any and all functions of either the secretary or the treasurer. 

Subd. 11.Executive director. 
The chair of the commission shall, subject to the approval of the commission, appoint an executive director who shall be chosen solely on the basis of training, experience, and other qualifications, and who shall serve at the pleasure of the commission. The executive director shall attend meetings of the commission, but shall not vote, and shall have the following powers and duties: 

(a) See that all resolutions, rules, or orders of the commission are enforced. 

(b) Appoint and remove, subject to the provisions of the personnel code adopted pursuant to subdivision 9, upon the basis of merit and fitness, all subordinate officers and regular employees of the commission. 

(c) Present to the commission plans, studies, and reports prepared for commission purposes and recommend to the commission for adoption such measures as the executive director deems necessary to enforce or carry out the powers and duties of the commission, or to the efficient administration of the affairs of the commission. 

(d) Keep the commission fully advised as to its financial condition, and prepare and submit to the commission its annual budget and such other financial information as it may request. 

(e) Recommend to the commission for adoption such rules as the executive director deems necessary for the efficient operation of the commission's functions. 

(f) Perform such other duties as may be prescribed by the commission. 

Subd. 12.Commission operating procedures. 
(a) The commission shall adopt resolutions and bylaws, an administrative code establishing procedures for commission action, keeping records, approving claims, authorizing and making disbursements, authorizing contracts, safekeeping funds and audit of all financial operations of the commission. 

(b) The commission and the council may enter into contracts with each other and with other commissions and governmental units for the joint exercise of powers in the manner provided by section 471.59; provided that the commission shall not enter into any contract with the council which would assign any operations authority, responsibility or function, other than planning or making studies, from the commission to the council. 

Subd. 13.Relocation payment standards. 
In all acquisitions the commission shall provide as a cost of acquisition the relocation assistance, services, payments and benefits required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 84 Stat. 1894 (1971), United States Code, title 42, section 4601, et seq. 

473.556 POWERS OF COMMISSION.Subdivision 1.General. 
The commission shall have all powers necessary or convenient to discharge the duties imposed by law, including but not limited to those specified in this section. 

Subd. 2.Actions. 
The commission may sue and be sued, and shall be a public body within the meaning of chapter 562. 

Subd. 3.Acquisition of property. 
The commission may acquire by lease, purchase, gift, or devise all necessary right, title, and interest in and to real or personal property deemed necessary to the purposes contemplated by sections 473.551 to 473.599 within the limits of the metropolitan area. 

Subd. 4.Exemption of property. 
Any real or personal property acquired, owned, leased, controlled, used, or occupied by the commission for any of the purposes of sections 473.551 to 473.599 is declared to be acquired, owned, leased, controlled, used and occupied for public, governmental, and municipal purposes, and shall be exempt from ad valorem taxation by the state or any political subdivision of the state, provided that such properties shall be subject to special assessments levied by a political subdivision for a local improvement in amounts proportionate to and not exceeding the special benefit received by the properties from the improvement. No possible use of any such properties in any manner different from their use under sections 473.551 to 473.599 at the time shall be considered in determining the special benefit received by the properties. All assessments shall be subject to final confirmation by the council, whose determination of the benefits shall be conclusive upon the political subdivision levying the assessment. Notwithstanding the provisions of section 272.01, subdivision 2, or 273.19, real or personal property leased by the commission to another person for uses related to the purposes of sections 473.551 to 473.599, including the operation of the metrodome, met center, and, if acquired by the commission, the basketball and hockey arena shall be exempt from taxation regardless of the length of the lease. The provisions of this subdivision, insofar as they require exemption or special treatment, shall not apply to any real property comprising the met center which is leased by the commission for residential, business, or commercial development or other purposes different from those contemplated in sections 473.551 to 473.599. 

Subd. 5.Facility operation. 
The commission may equip, improve, operate, manage, maintain, and control the Metrodome, Met Center, basketball and hockey arena and sports facilities constructed, remodeled, or acquired under the provisions of sections 473.551 to 473.599. 

Subd. 6.Disposition of property. 
(a) The commission may sell, lease, or otherwise dispose of any real or personal property acquired by it which is no longer required for accomplishment of its purposes. The property shall be sold in accordance with the procedures provided by section 469.065, insofar as practical and consistent with sections 473.551 to 473.599. 

(b) The proceeds from the sale of any real property at the metropolitan sports area shall be paid to the council and used for debt service or retirement. 

Subd. 7.Contracts. 
The commission may contract for materials, supplies, and equipment in accordance with section 471.345, except that the commission may employ persons, firms, or corporations to perform one or more or all of the functions of architect, engineer, construction manager, or contractor for both design and construction, with respect to all or any part of a project to build or remodel sports facilities. Contractors shall be selected through the process of public bidding, provided that it shall be permissible for the commission to narrow the listing of eligible bidders to those which the commission determines to possess sufficient expertise to perform the intended functions. Any construction manager or contractor shall certify, before the contracts are finally signed, a construction price and completion date to the commission and shall post a bond in an amount at least equal to 100 percent of the certified price, to cover any costs which may be incurred over and above the certified price, including but not limited to costs incurred by the commission or loss of revenues resulting from incomplete construction on the completion date. The commission shall secure surety bonds as required in section 574.26, securing payment of just claims in connection with all public work undertaken by it. Persons entitled to the protection of the bonds may enforce them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any property of the commission under the provisions of sections 514.01 to 514.16. 

Subd. 8.Employees; contracts for services. 
The commission may employ persons and contract for services necessary to carry out its functions. The commission may employ on such terms as it deems advisable persons or firms for the purpose of providing traffic officers to direct traffic on property under the control of the commission and on the city streets in the general area of the property controlled by the commission. The traffic officers shall not be peace officers and shall not have authority to make arrests for violations of traffic rules. 

Subd. 9.Gifts and grants. 
The commission may accept gifts of money, property, or services, may apply for and accept grants or loans of money or other property from the United States, the state, any subdivision of the state, or any person for any of its purposes, may enter into any agreement required in connection therewith, and may hold, use, and dispose of such money, property, or services in accordance with the terms of the gift, grant, loan or agreement relating thereto. Except for the acquisition, clearance, relocation, and legal costs referred to in section 473.581, subdivision 3, clauses (d) and (e), the commission shall not accept gifts, grants, or loans valued in excess of $2,000,000 without the prior approval of the council. In evaluating proposed gifts, grants, loans, and agreements required in connection therewith, the council shall examine the possible short-range and long-range impact on commission revenues and commission operating expenditures. 

Subd. 10.Research. 
The commission may conduct research studies and programs, collect and analyze data, prepare reports, maps, charts, and tables, and conduct all necessary hearings and investigations in connection with its functions. 

Subd. 11.Agreements with university. 
The commission and the Board of Regents of the University of Minnesota may enter into agreements and do all other acts necessary to further the functions prescribed in sections 473.551 to 473.599. 

Subd. 12.Use agreements. 
The commission may lease, license, or enter into agreements and may fix, alter, charge, and collect rentals, fees, and charges to all persons for the use, occupation, and availability of part or all of any premises, property, or facilities under its ownership, operation, or control for purposes that will provide athletic, educational, cultural, commercial or other entertainment, instruction, or activity for the citizens of the metropolitan area. Any such use agreement may provide that the other contracting party shall have exclusive use of the premises at the times agreed upon. 

Subd. 13.Insurance. 
The commission may require any employee to obtain and file with it an individual bond or fidelity insurance policy. It may procure insurance in the amounts it deems necessary against liability of the commission or its officers and employees for personal injury or death and property damage or destruction, with the force and effect stated in chapter 466, and against risks of damage to or destruction of any of its facilities, equipment, or other property. 

Subd. 14.Small business contracts. 
In exercising its powers to contract for the purchase of services, materials, supplies, and equipment, pursuant to subdivisions 5, 7, 8 and 10, the commission shall designate and set aside each fiscal year for awarding to small businesses approximately ten percent of the value of anticipated contracts and subcontracts of that kind for that year, in the manner required of the commissioner of administration for state procurement contracts pursuant to sections 16C.16 to 16C.19. The commission shall follow the rules promulgated by the commissioner of administration pursuant to section 16C.19, and shall submit reports of the kinds required of the commissioners of administration and economic development by section 16C.18. 

Subd. 16.Agreements with Amateur Sports Commission. 
(a) The commission and the Minnesota Amateur Sports Commission created pursuant to chapter 240A may enter into long-term leases, use or other agreements for the conduct of amateur sports activities at the basketball and hockey arena, and the net revenues from the activities may be pledged for basketball and hockey arena debt service. The commission, with the advice of the Minnesota Amateur Sports Commission, shall establish standards to provide reasonable assurances to other public bodies owning or operating an entertainment or sports complex or indoor sports arena in the metropolitan area that the agreements between the commission and the Minnesota Amateur Sports Commission with respect to the basketball and hockey arena shall not remove the conduct of amateur sports activities currently and traditionally held at such facilities. 

(b) Any long-term lease, use, or other agreement entered into by the Minnesota Amateur Sports Commission with the commission under paragraph (a) must also: 

(1) provide for a release of the Minnesota Amateur Sports Commission from its commitment under the agreement if the legislature repeals or amends a standing appropriation or otherwise does not appropriate sufficient money to fund the lease or agreement to the Minnesota Amateur Sports Commission; and 

(2) provide for a release of the Minnesota Amateur Sports Commission from its commitment under the agreement and permit it to agree to a per event use fee when the bonds issued for the metrodome under section 473.581 have been retired. 

(c) No long-term lease, use, or other agreement entered into by the Minnesota Amateur Sports Commission under paragraph (a) may commit the amateur sports commission to paying more than $750,000 per year. 

(d) Any long-term lease, use, or other agreement entered into under paragraph (a) shall provide that the Minnesota Amateur Sports Commission shall be entitled to use of the basketball and hockey arena for 50 event days per year. In addition, any long-term lease, use, or other agreement entered into under paragraph (a) shall permit the Minnesota Amateur Sports Commission to allow another person or organization to use one or more of its days. 

Subd. 17.Creating a condominium. 
The commission may, by itself or together with the Minneapolis Community Development Agency and any other person, as to real or personal property comprising or appurtenant or ancillary to the basketball and hockey arena and the health club, act as a declarant and establish a condominium or leasehold condominium under chapter 515A or a common interest community or leasehold common interest community under chapter 515B, and may grant, establish, create, or join in other or related easements, agreements and similar benefits and burdens that the commission may deem necessary or appropriate, and exercise any and all rights and privileges and assume obligations under them as a declarant, unit owner or otherwise, insofar as practical and consistent with sections 473.551 to 473.599. The commission may be a member of an association and the chair, any commissioners and any officers and employees of the commission may serve on the board of an association under chapter 515A or 515B. 

473.561 EXEMPTION FROM COUNCIL REVIEW.
The acquisition and betterment of sports facilities by the commission shall be conducted pursuant to sections 473.551 to 473.599 and shall not be affected by the provisions of sections 473.165 and 473.173. 

473.564 METROPOLITAN SPORTS AREA.Subd. 2.Assumption of obligations. 
Nothing herein shall be construed as imposing upon the council or commission an obligation to compensate the cities or the metropolitan sports area commission for all or any part of the metropolitan sports area or to continue to operate and maintain the metropolitan sports area facilities taken over by the commission. 

Subd. 3.Employees. 
Upon transfer of ownership all persons then employed by the metropolitan sports area commission shall be transferred to the metropolitan sports facilities commission without loss of right or privilege. Nothing in this section shall be construed to give any such person the right or privilege to continue in the same level or classification of employment previously held. The metropolitan sports facilities commission may assign any such person to an employment level and classification which it deems appropriate and desirable in accordance with its personnel code. 

473.572 REVISED FINAL DETERMINATION.Subdivision 1.Determinations before bonds. 
The council shall make all determinations required by sections 473.581, subdivision 3, and 473.599 before it authorizes the issuance of bonds. 

Subd. 2.Self-supporting effort. 
It is the intent of the legislature that the commission shall, to the maximum extent possible consistent with the provisions of section 473.581, subdivision 3, impose rates, rentals and other charges in the operation of the metrodome which will make the metrodome self supporting so that the taxes imposed under section 473.592 for the metrodome will be at the lowest possible rate consistent with the obligations of the city of Minneapolis as provided in sections 473.551 to 473.595. 

473.581 DEBT OBLIGATIONS.Subdivision 1.Bonds. 
The council may by resolution authorize the sale and issuance of its bonds for any or all of the following purposes: 

(a) To provide funds for the acquisition or betterment of the Metrodome by the commission pursuant to sections 473.551 to 473.595; 

(b) To refund bonds issued hereunder ; and 

(c) To fund judgments entered by any court against the commission or against the council in matters relating to the commission's functions related to the Metrodome and the Met Center. 

Subd. 2.Procedure. 
The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections 473.551 to 473.595, and the council shall have the same powers and duties as a municipality and its governing body in issuing bonds under that chapter. The bonds may be sold at any price and at public or private sale as determined by the council. They shall be payable solely from tax and other revenues referred to in sections 473.551 to 473.595, excepting only the admissions tax and surcharge related to the basketball and hockey arena provided in section 473.595, subdivision 1a, the taxes for the basketball and hockey arena provided in section 473.592, and other revenues attributable to the basketball and hockey arena. The bonds shall not be a general obligation or debt of the council or of the commission, and shall not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any net debt limitation, provided that nothing herein shall affect the obligation of the city of Minneapolis to levy a tax pursuant to agreements made under the provisions of section 473.592. No election shall be required. The principal amount shall not be limited except as provided in subdivision 3. 

Subd. 3.Limitations. 
The principal amount of the bonds issued pursuant to subdivision 1, clause (a), shall not exceed the amounts hereinafter authorized. If the commission's proposal and the construction contracts referred to in clause (g) of this subdivision provide for the construction of a covered multipurpose sports facility, the total cost of constructing the facility under the construction contracts, not including costs paid from funds provided by others, and the principal amount of bonds issued pursuant to subdivision 1, clause (a), shall be limited to $55,000,000. If the commission's proposal and the construction contracts do not provide for the construction of a cover on a proposed multipurpose sports facility and the commission does not otherwise contract for the construction or acquisition of a cover for the sports facility, the principal amount shall be limited to $42,000,000. If the commission's proposal and the construction contracts provide for the construction of a new sports facility for football and soccer and for remodeling the existing metropolitan stadium for baseball, the principal amount shall be limited to $37,500,000. If the commission's proposal and the construction contracts provide for the reconstruction and remodeling of the existing Metropolitan Stadium as an uncovered multipurpose sports facility, the principal amount shall be limited to $25,000,000. The bonds issued pursuant to subdivision 1, clause (a), shall bear an average annual rate of interest, including discount, not in excess of 7-1/2 percent. The proceeds of the bonds issued pursuant to subdivision 1, clause (a), shall be used only for the acquisition and betterment of sports facilities suitable for baseball, football and soccer, with a seating capacity for football and soccer of approximately 65,000 persons. The council shall issue its bonds and construction of sports facilities may commence when the council has made the following determinations: 

(a) The commission has executed agreements with major league professional baseball and football organizations to use the Metrodome for all scheduled regular season home games and play-off home games and, in the case of the football organization, for at least one-half of its exhibition games played each season. The agreements shall be for a period of not more than 30 years nor less than the term of the longest term bonds that in the council's judgment it may find it necessary to issue to finance the acquisition and betterment of the Metrodome. The agreements may contain provisions negotiated between the organizations and the commission which provide for termination upon conditions related and limited to the bankruptcy, insolvency, or financial capability of the organization. The agreements shall provide that, in the event of breach of the agreements, the defaulting organization shall pay damages annually to the commission. The annual payment shall be in an amount equal to the annual average of all revenue derived by the commission from attendance at events and activities of the defaulting organization during the years prior to default, provided that the damages shall not exceed in any year an amount sufficient, with other revenues of the commission but excluding proceeds of the taxes under section 473.592, to pay all expenses of operation, maintenance, administration, and debt service for the use of the Metrodome by the defaulting organization during the same year. The damages shall be payable during the period from the occurrence of the default to the date on which another major league professional baseball or football organization, replacing the defaulting organization, enters into a use agreement with the commission for not less than the then remaining term of the original agreement. The agreements with the teams shall provide that no closed circuit or pay television broadcasting of events in the Metrodome may be allowed without the approval of the commission. The agreements shall include provisions protecting the commission and the council in the event of change in ownership of the professional teams. 

(b) The commission has executed agreements with professional baseball and football major leagues which guarantee the continuance of franchises in the metropolitan area for the period of the agreements referred to in clause (a). 

(c) The proceeds of bonds provided for in this subdivision will be sufficient, together with other capital funds that may be available to the commission for expenditures on the Metrodome, to construct or remodel and to furnish the Metrodome proposed by the commission, including the appropriate professional fees and charges but excluding, except as otherwise provided in this subdivision, the acquisition, clearance, relocation, and legal costs referred to in clauses (d) and (e). 

(d) The commission has acquired, without cost to the commission or the council except as provided in this subdivision, title to all real property including all easements and other appurtenances needed for the construction and operation of the Metrodome or has received a grant of funds or has entered into an agreement or agreements sufficient in the judgment of the council to assure the receipt of funds, at the time and in the amount required, to make any payment upon which the commission's acquisition of title and possession of the real property is conditioned. 

(e) The commission has received a grant of funds or entered into an agreement or agreements sufficient in the judgment of the council to assure the receipt of funds, at the time and in the amount required, to pay all costs, except as provided in this subdivision, of clearing the real property needed for the construction and operation of the Metrodome of all buildings, railroad tracks and other structures, including without limitation all relocation costs, all utility relocation costs, and all legal costs. 

(f) The commission has executed agreements with appropriate labor organizations and construction contractors which provide that no labor strike or management lockout will halt, delay or impede construction. 

(g) The commission has executed agreements which will provide for the construction of the Metrodome for a certified construction price and completion date and which include performance bonds in an amount at least equal to 100 percent of the certified price to cover any costs which may be incurred over and above the certified price, including but not limited to costs incurred by the commission or loss of revenues resulting from incomplete construction on the completion date. 

(h) The environmental impact statement for the Metrodome has been accepted by the Environmental Quality Board, and the Pollution Control Agency and any other department, agency, or unit of government have taken the actions necessary to permit the construction of the Metrodome. 

(i) At least 50 percent of the private boxes provided for in the commission's proposal for the Metrodome are sold or leased for at least five years. 

(j) The anticipated revenue from the operation of the Metrodome plus any additional available revenue of the commission and the revenue from the taxes under section 473.592 will be an amount sufficient to pay when due all debt service plus all administration, operating and maintenance expense. 

(k) The commission has studied and considered the needs of the University of Minnesota for athletic facilities for a prospective 20 year period. 

(l) The city of Minneapolis has entered into an agreement as contemplated in section 473.592 as security for the Metrodome debt service. 

(m) The commission has entered into an agreement or agreements with a purchaser or purchasers of tickets of admission for a period of not less than 20 years which will assure that whenever more than 90 and less than 100 percent of the tickets of admission for seats at any professional football game, which were available for purchase by the general public 120 hours or more before the scheduled beginning time of the game either at the Metrodome where the game is to be played or at the box office closest to the Metrodome, have been purchased 72 hours or more before the beginning time of the game, then all of such tickets which remain unsold will be purchased in sufficient time to permit the telecast to areas within the state which otherwise would not receive the telecast because of the terms of an agreement in which the professional football league has sold or otherwise transferred all or part of the rights of the league's member organizations in the sponsored telecasting of games of the organizations. The party or parties agreeing to the purchase of such unsold tickets shall be obligated for a period of at least 20 years in an amount determined by the council to be sufficient to assure the purchase of all such unsold tickets. 

(n) The council has entered into an agreement with the brokerage firm or brokerage firms to be used in connection with the issuance and sale of the bonds guaranteeing that fees and charges payable to the brokerage firm or firms in connection therewith, including any underwriting discounts, shall not exceed fees and charges customarily payable in connection with the issuance and sale of bonds secured by the pledge of the full faith and credit of the city of Minneapolis. 

The validity of any bonds issued under subdivision 1, clause (a), and the obligations of the council and commission related thereto, shall not be conditioned upon or impaired by the council's determinations made pursuant to this subdivision. For purposes of issuing the bonds the determinations made by the council shall be deemed conclusive, and the council shall be and remain obligated for the security and payment of the bonds irrespective of determinations which may be erroneous, inaccurate, or otherwise mistaken. 

Subd. 4.Security. 
To the extent and in the manner provided in sections 473.592 and 473.595, the taxes described in section 473.592 for the Metrodome, the tax and other revenues of the commission described in section 473.595, subdivision 1, and any other revenues of the commission attributable to the Metrodome shall be and remain pledged and appropriated for the payment of all necessary and reasonable expenses of the operation, administration, maintenance, and debt service of the Metrodome until all bonds and certificates issued pursuant to this section are fully paid or discharged in accordance with law. Bonds issued pursuant to this section may be secured by a bond resolution, or by a trust indenture entered into by the council with a corporate trustee within or outside the state, which shall define the tax and other Metrodome and Met Center revenues pledged for the payment and security of the bonds. The pledge shall be a valid charge on the tax and other revenues referred to in sections 473.551 to 473.595 (excepting only the admissions tax and surcharge related to the basketball and hockey arena provided in section 473.595, subdivision 1a, taxes described in section 473.592 for the basketball and hockey arena, and other revenues attributable to the basketball and hockey arena) from the date when bonds are first issued or secured under the resolution or indenture and shall secure the payment of principal and interest and redemption premiums when due and the maintenance at all times of a reserve securing such payments. No mortgage of or security interest in any tangible real or personal property shall be granted to the bondholders or the trustee, but they shall have a valid security interest in all tax and other revenues received and accounts receivable by the commission or council hereunder, as against the claims of all other persons in tort, contract, or otherwise, irrespective of whether such parties have notice thereof, and without possession or filing as provided in the Uniform Commercial Code or any other law. In the bond resolution or trust indenture the council may make such covenants, which shall be binding upon the commission, as are determined to be usual and reasonably necessary for the protection of the bondholders. No pledge, mortgage, covenant, or agreement securing bonds may be impaired, revoked, or amended by law or by action of the council, commission, or city, except in accordance with the terms of the resolution or indenture under which the bonds are issued, until the obligations of the council thereunder are fully discharged. 

Subd. 5.Revenue anticipation certificates. 
At any time or times after approval by the council and final adoption by the commission of an annual budget of the commission for operation, administration, and maintenance of the Metrodome, and in anticipation of the proceeds from the taxes under section 473.592 for the Metrodome and the revenues of the commission provided for in the budget, but subject to any limitation or prohibition in a bond resolution or indenture, the council may authorize the issuance, negotiation, and sale, in such form and manner and upon such terms as it may determine, of revenue anticipation certificates. The principal amount of the certificates outstanding shall at no time exceed 25 percent of the total amount of the tax and other revenues anticipated. The certificates shall mature not later than three months after the close of the budget year. Prior to the approval and final adoption of the first annual budget of the commission, the council may authorize up to $300,000 in revenue anticipation certificates under this subdivision. So much of the anticipated tax and other revenues as may be needed for the payment of the certificates and interest thereon shall be paid into a special debt service fund established for the certificates in the council's financial records. If for any reason the anticipated tax and other revenues are insufficient, the certificates and interest shall be paid from the first tax and other revenues received, subject to any limitation or prohibition in a bond resolution or indenture. The proceeds of the certificates may be used for any purpose for which the anticipated revenues or taxes may be used or for any purpose for which bond proceeds under subdivision 1 may be used, provided that the proceeds of certificates issued after May 26, 1979, shall not be used to pay capital costs of the Metrodome constructed or remodeled pursuant to sections 473.551 to 473.595. 

473.592 TAX REVENUES.Subdivision 1.Local sales tax. 
The city of Minneapolis may enter into agreements with the Metropolitan Council and the commission which requires the municipality to impose a sales tax, supplemental to the general sales tax imposed in chapter 297A, for the purposes and in accordance with the requirements specified in sections 473.551 to 473.599. The tax may be imposed: 

(a) on the gross receipts from all retail on-sales of intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor establishments and municipal liquor stores located within the municipality, 

(b) notwithstanding any limitations of Laws 1986, chapter 396, section 5, clause (2), on the gross receipts from the furnishing for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming house, tourist court, or trailer camp located within the municipality, 

(c) on the gross receipts on all sales of food primarily for consumption on or off the premises by restaurants and places of refreshment as defined by resolution of the city, or 

(d) on any one or combination of the foregoing. 

A tax under this subdivision shall be imposed only within a downtown taxing area to be determined by the council. 

The agreement or agreements between the city, the Metropolitan Council, and the commission shall require the municipality to impose the tax or taxes at whatever rate or rates may be necessary to produce revenues which are determined by the council from year to year to be required, together with the revenues available to the commission, to pay when due all debt service on bonds and revenue anticipation certificates issued under section 473.581, all debt service on bonds and revenue anticipation certificates issued under section 473.599, and all expenses of operation, administration, and maintenance of the Metrodome and the basketball and hockey arena. When it is determined that a tax must be imposed under this subdivision after the effective date of Laws 1994, chapter 648, there shall be added to the rate of the tax imposed for the purposes described in the previous sentence a tax at a rate of 0.25 percent for use by the city to fund recreational facilities and programs in the city's neighborhoods for children and youth through the Minneapolis Park and Recreation Board. The agreements shall provide for the suspension, reimposition, reduction, or increase in tax collections upon determination by the Metropolitan Council that such actions are appropriate or necessary for the purposes for which the tax is imposed, provided that the balance in each of the Metrodome debt service and the basketball and hockey arena debt service fund or funds, including any reserve for debt service, shall be maintained at least at an amount sufficient to pay the principal and interest on bonds which will become due within the next succeeding one year period and, except as otherwise provided by agreement, shall not be maintained at an amount greater than that required to pay principal and interest on bonds which will become due within the next succeeding two-year period. Once the tax is imposed by the city, the tax imposed for the benefit of the Minneapolis Park and Recreation Board shall remain in effect at the rate of 0.25 percent until the bonds issued under section 473.599 have been retired. The agreements shall be executed by the city, after approval by resolution of the city council and before the issuance of the bonds under section 473.581 and commencement of construction of the Metrodome or the issuance of bonds under section 473.599 and acquisition of the basketball and hockey arena and shall constitute a contract or contracts with and for the security of all holders of the bonds and revenue anticipation certificates secured by the tax. The Metrodome shall not be constructed or remodeled in a municipality which has not entered into an agreement for the Metrodome in accordance with this section. A basketball and hockey arena shall not be acquired in the city of Minneapolis unless the city has entered into an agreement in accordance with this section as security for bonds issued pursuant to section 473.599 and expenses of operation, administration, and maintenance of the basketball and hockey arena. The tax shall be reported and paid to the commissioner of revenue with and as part of the state sales and use taxes, and shall be subject to the same penalties, interest, and enforcement provisions. The collections of the tax, less refunds and a proportionate share of the costs of collection, shall be remitted at least quarterly to the Metropolitan Council and the city of Minneapolis for use by the Minneapolis Park and Recreation Board. The commissioner of revenue shall deduct from the proceeds remitted to the council and the city an amount that equals the indirect statewide costs as well as the direct and indirect department costs necessary to administer, audit, and collect this tax. The amount deducted shall be deposited in the general fund of the state. The proceeds remitted with respect to the Metrodome shall be placed, together with the net revenues of the commission attributable to the Metrodome under section 473.595, into the debt service fund or reserve or special funds, established under section 473.581, and any funds established to secure payment of operating deficits of the commission arising from its ownership and operation of the Metrodome. The proceeds may be used for payment of debt service on bonds and revenue anticipation certificates issued under section 473.581, and expenses of operation, administration, and maintenance of the Metrodome. The proceeds shall not be used for any capital costs of the Metrodome, except that the proceeds may be used to pay interest on bonds during the construction period. 

The proceeds remitted with respect to the basketball and hockey arena shall be placed, together with the net revenues of the commission attributable to the basketball and hockey arena under section 473.595, subdivision 1a, into the debt service fund or reserve or special funds, established under section 473.599, and any funds established to secure payment of operating deficits of the commission arising from its acquisition, ownership, operation, or maintenance of the basketball and hockey arena. The proceeds may be used for payment of debt service on bonds and revenue anticipation certificates issued under section 473.599, and expenses of operation, administration, and maintenance of the basketball and hockey arena. 

473.595 COMMISSION FINANCES.Subdivision 1.Metrodome admission tax. 
The commission shall by resolution impose and maintain a ten percent admission tax upon the granting, issuance, sale, or distribution, by any private or public person, association, or corporation, of the privilege of admission to activities at the Metrodome. No other tax, surcharge, or governmental imposition, except the taxes imposed by chapter 297A, may be levied by any other unit of government upon any such sale or distribution. The admission tax shall be stated and charged separately from the sales price so far as practicable and shall be collected by the grantor, seller, or distributor from the person admitted and shall be a debt from that person to the grantor, issuer, seller, or distributor, and the tax required to be collected shall constitute a debt owed by the grantor, issuer, seller, or distributor to the commission, which shall be recoverable at law in the same manner as other debts. Every person granting, issuing, selling, or distributing tickets for such admissions may be required, as provided in resolutions of the commission, to secure a permit, to file returns, to deposit security for the payment of the tax, and to pay such penalties for nonpayment and interest on late payments, as shall be deemed necessary or expedient to assure the prompt and uniform collection of the tax. 

Notwithstanding any other provisions of this subdivision, the imposition of an admission tax upon a national superbowl football game conducted at the Metrodome is discretionary with the commission. 

Subd. 1a.Arena admission tax. 
The commission shall impose a ten percent admission tax on all tickets sold, issued, granted, or distributed for the privilege of admission to the basketball and hockey arena. In addition, the commission shall impose a surcharge in an amount to be determined by the commission, but not less than $1 per ticket, on all tickets sold, issued, granted, or distributed for the privilege of admission to activities at the basketball and hockey arena. The sales price shall include the price of the ticket and any service or other charge imposed by the grantor, issuer, seller, or distributor upon the reservation, processing, distribution, delivery, or sale of the ticket. No other tax, surcharge, or governmental imposition, except the taxes imposed by chapter 297A, may be levied by any other unit of government upon such a sale or distribution. The admission tax and surcharge for the privilege of admission to activities at the basketball and hockey arena shall be charged and added to the sales price of the ticket, and imposed and collected in the same manner provided for the Metrodome pursuant to subdivision 1. The tax and surcharge provided for in this subdivision shall be effective from and after the date of the commission's acquisition of the basketball and hockey arena. 

Subd. 2.Rentals; fees; charges. 
Rentals, fees, and charges provided for in use agreements at the Metrodome and basketball and hockey arena entered into by the commission shall be those estimated by the commission to be necessary and feasible to produce so far as possible, with commission revenues from other sources, the amounts needed for current operation, maintenance, and debt service. The commission shall with respect to the Met Center, the Metrodome, and the basketball and hockey arena meet and confer with any public body, authority, or agency owning or operating an entertainment or sports complex, or indoor sports arena, in the metropolitan area, for the purpose of undertaking measures or agreements maximizing revenues and eliminating unnecessary operational expenditures. 

Subd. 3.Budget preparation; review and approval. 
The commission shall prepare a proposed budget by August 1 of each year. The budget shall include operating revenues and expenditures for operation, administration, and maintenance. In addition, the budget must show for each year: 

(a) The estimated operating revenues from all sources including funds on hand at the beginning of the year, and estimated expenditures for costs of operation, administration, maintenance, and debt service; 

(b) Capital improvement funds estimated to be on hand at the beginning of the year and estimated to be received during the year from all sources and estimated cost of capital improvements to be paid out or expended during the year; all in such detail and form as the council may prescribe; and 

(c) The estimated source and use of pass-through funds. 

As early as practicable before August 15 of each year, the commission shall hold a public hearing on a draft of the proposed budget. Along with the draft, the commission shall publish a report on user charges. The report must include an estimate and analysis of the changes in user charges, rates, and fees that will be required by the commission's budget. Not less than 14 days before the hearing, the commission shall publish notice of the hearing in a newspaper having general circulation in the metropolitan area, stating the date, time, and place of hearing, and the place where the proposed budget and report on user charges may be examined by any interested person. Following the hearing, the commission shall publish a report of the hearing that summarizes the comments received and the commission's response. The council shall approve or disapprove the entire budget by October 1 of each year. Before December 15 of each year, the commission shall by resolution adopt a final budget. The commission shall file its final budget with the council on or before December 20 of each year. The council shall file the budgets with the secretary of the senate and the clerk of the house of representatives not later than January 1 of each year. 

Except in an emergency, for which procedures must be established by the commission, the commission and its officers, agents, and employees may not spend money for any purpose, other than debt service, without an appropriation by the commission, and no obligation to make such an expenditure shall be enforceable except as the obligation of the person or persons incurring it. The creation of any debt obligation or the receipt of any federal or state grant is a sufficient appropriation of the proceeds for the purpose for which it is authorized, and of the tax or other revenues pledged to pay the obligation and interest on it whether or not specifically included in any annual budget. After obtaining approval of the council, the commission may amend the budget at any time by transferring any appropriation from one purpose to another, except appropriations of the proceeds of bonds issued for a specific purpose. 

Subd. 4.Payment of council costs. 
The commission shall comply with the provisions of section 473.164. 

Subd. 5.Audit. 
The legislative auditor shall make an independent audit of the commission's books and accounts once each year or as often as the legislative auditor's funds and personnel permit. The costs of the audits shall be paid by the commission pursuant to section 3.9741. The council may examine the commission's books and accounts at any time. 

Subd. 6.General. 
The commission shall receive and account for all tax and other revenue of the commission and from the revenue shall provide, contract, and pay for proper operation, administration, and maintenance of all of its property and facilities and shall maintain, as authorized by resolutions of the council, reserves for major repairs, replacements, and improvements and for working capital. The commission shall remit to the council for deposit in its Metrodome debt service funds, at the times required by resolution of the council, the net revenue attributable to the Metrodome in excess of these requirements and for deposit in its basketball and hockey arena debt service fund or funds, at the times required by resolution of the council, the net revenue attributable to the basketball and hockey arena in excess of these requirements. 

Subd. 7.Sale of seats. 
The commission may sell seats in any multipurpose sports facility constructed after June 30, 1979 at prices and subject to conditions consistent with this section. Ownership of a seat shall give the owner first preference for purchase of a season ticket of admission for professional sports exhibitions with a right to be seated in the owned seat. An owner may sell or otherwise transfer the rights on whatever terms the owner chooses. Rights to a seat may not be divided. No fee may be charged for a transfer of ownership of a seat. The commission may charge a maintenance fee not exceeding $10 per year for each seat. 

473.598 ARENA ACQUISITION.Subdivision 1.Commission determination. 
The commission shall first determine whether to pursue negotiations to acquire the basketball and hockey arena. 

Subd. 2.Examination and disclosure of loan terms. 
Before making a final decision to acquire the basketball and hockey arena, the commission must obtain and examine all the terms, conditions, covenants, and other provisions of any loan agreements between the owners of the arena and third parties that provided financing secured by mortgages on or other security interests in the basketball and hockey arena. These terms specifically include any agreements that require a professional team affiliated with the owner to lease or use the arena or that restrict or limit the authority of the team owners or affiliates to relocate the team. The commission shall make the terms of the agreements available for public inspection. 

Subd. 3.Commission proposal. 
(a) If the commission makes a final determination to acquire the basketball and hockey arena, the commission may then submit to the Metropolitan Council a proposal to bond for and acquire the basketball and hockey arena. The commission's proposal shall contain all information deemed appropriate or necessary by the council to its determinations pursuant to section 473.599, subdivision 4. The commission, in preparing the proposal for the council, shall require of the sellers and of the professional teams that are potential lessees or other potential lessees and all of their affiliated entities any and all data relevant to the acquisition, financing, ownership, and operation of the basketball and hockey arena, including, but not limited to, contracts, agreements, profit and loss statements, annual audit statements and balance sheets. The commission shall contract with an independent, nationally recognized firm of certified public accountants to perform due diligence and provide an economic feasibility study or report with regard to the data received by the commission from the sellers, the potential lessees, and affiliated entities. In evaluating whether to acquire the basketball and hockey arena, the commission shall consider among other factors, (a) total capital and operating costs of the basketball and hockey arena to the commission and total commission revenues from the basketball and hockey arena over the expected life of the facility, including any contributions by the state, local units of government or other organizations, (b) the total governmental costs associated with the acquisition and operation of the basketball and hockey arena, including the cost to all units and agencies of government as well as the costs to the commission, (c) the net gain or loss of taxes to the state and all local government units, and (d) economic and other benefits accruing to the public. 

(b) Before submitting its proposal to the Metropolitan Council under paragraph (a), the commission shall submit the proposal to the Department of Management and Budget for review, evaluation, and comment. Any data which is not public data under subdivision 4 shall remain not public data when given to the Department of Management and Budget. 

Subd. 4.Treatment of data. 
(a) Except as specifically provided in this subdivision, all data received by the commission or council in the course of its negotiations and acquisition of the basketball and hockey arena is public data. 

(b) The commission may keep confidential data received or prepared by its accountants or counsel for purposes of negotiations with existing or potential lessees of the basketball and hockey arena. That data shall be confidential data on individuals under section 13.02, subdivision 3, or protected nonpublic data under section 13.02, subdivision 13, as the case may be, unless the commission determines that public release of the data would advance the negotiations, or until the potential lessees have executed agreements with the commission or the negotiations are unfavorably concluded. 

(c) The following data shall be private data on individuals under section 13.02, subdivision 12, or nonpublic data under section 13.02, subdivision 9, as the case may be: 

(1) data received by the commission or council from the present lessees or potential lessees of the basketball and hockey arena which if made public would, due to the disclosure, permit a competitive economic advantage to other persons; 

(2) data relating to affiliated entities of the parties referred to in subdivision 3 which is not relevant to the due diligence and economic feasibility study referred to under subdivision 3; and 

(3) data on individuals which is not relevant to the finances of the basketball and hockey arena or useful to demonstrate the financial ability of the potential lessees of the arena to perform their agreements with the commission. 

(d) For purposes of this subdivision, the terms "commission" and "council" include their members and employees, accountants, counsel, and consultants and the firm of independent certified public accountants to be engaged under subdivision 2. 

(e) Notwithstanding the exceptions in this subdivision, summary data which demonstrates the financial ability of the lessees and potential lessees of the basketball and hockey arena to perform their obligations under agreements with the commission and data which relates in any way to the value of the basketball and hockey arena and the amount by which the owners' investment in the arena, including debt obligations, exceeds the commission's payments to and assumption of the owners' debt obligations, shall be public data. 

Subd. 5.Hockey agreement. 
The commission shall exercise its best efforts, consistent with its other obligations under sections 473.551 to 473.599 to attempt to secure an agreement with a major league professional hockey organization to play its home games at the basketball and hockey arena. 

473.599 DEBT OBLIGATIONS.Subdivision 1.Revenues. 
It is the intent of the legislature that the commission shall, to the maximum extent possible consistent with the provisions of this section, impose rates, rentals, and other charges in the operation of the basketball and hockey arena which together with the admissions tax and surcharge provided in section 473.595, subdivision 1a, will make the basketball and hockey arena self-supporting so that the taxes imposed under section 473.592 for the basketball and hockey arena will be at the lowest possible rate consistent with the obligations of the city of Minneapolis as provided in sections 473.551 to 473.599. 

Subd. 2.Bonds. 
The council shall by resolution authorize the sale and issuance of its bonds for any of the following purposes upon its determination that the conditions of subdivision 4 have been met: 

(a) To provide funds for the acquisition or betterment of the basketball and hockey arena by the commission pursuant to sections 473.598 and 473.599; 

(b) To refund bonds issued under this section; and 

(c) To fund judgments entered by any court against the commission or against the council in matters relating to the basketball and hockey arena. 

Subd. 3.Procedure. 
The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections 473.551 to 473.599, and the council shall have the same powers and duties as a municipality and its governing body in issuing bonds under chapter 475. The council may pledge for the payment of the bonds the net revenues of the commission arising from the commission's operation of the basketball and hockey arena, the tax provided by section 473.592 for the basketball and hockey arena, and the admission tax and surcharge authorized in section 473.595, subdivision 1a. The bonds may be sold at any price and at public or private sale as determined by the council. They shall be payable solely from tax and other revenues referred to in sections 473.551 to 473.599, and shall not be a general obligation or debt of the council or of the commission, and shall not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any net debt limitation, but nothing in this section shall affect the obligation of the city of Minneapolis to levy a tax pursuant to an agreement made under the provisions of section 473.592. No election shall be required. The principal amount shall not be limited except as provided in subdivision 4. 

Subd. 4.Limits. 
The principal amount of the bonds issued pursuant to subdivision 2, clause (a), exclusive of any original issue discount, shall not exceed the total amount of $42,000,000 plus such amount as the council determines necessary to pay the costs of issuance, fund reserves for operation and debt service, and pay for any bond insurance or other credit enhancement. The bonds may be issued as tax-exempt revenue bonds or as taxable revenue bonds in the proportions that the commission may determine. The proceeds of the bonds issued pursuant to subdivision 2, clause (a), shall be used only for acquisition and betterment of sports facilities suitable for a basketball and hockey arena and the arena land and the related purposes referred to in this subdivision, and for reimbursement of any expenses of the commission related to its determination of whether to acquire the basketball and hockey arena, whenever incurred. The council shall issue its bonds pursuant to subdivision 2, clause (a), and the commission may acquire the basketball and hockey arena and the arena land when the council has made the following determinations: 

(a) The commission, the city of Minneapolis or the Minneapolis Community Development Agency, or any or all of them, as the commission may deem appropriate, has executed agreements with a major league professional basketball organization to use the arena for all scheduled regular season home games and play-off home games, and for at least one of its exhibition games played each season. The agreements shall be for a period of 30 years. The agreements may contain provisions negotiated with the organization which provide for earlier termination of the use of the basketball and hockey arena by the commission upon conditions related to and limited to the bankruptcy or insolvency of the organization. The agreements shall afford to the commission, the city of Minneapolis, or the Minneapolis Community Development Agency, or each or all of them, as the commission deems appropriate, the remedies that are deemed necessary and appropriate to provide reasonable assurances that the major league professional basketball organization or another major league professional basketball organization shall comply with the agreements. The remedies shall include the payment of liquidated damages equivalent to direct and consequential damages incurred by reason of the breach of the agreements and any additional remedies or security arrangements the commission reasonably determines to be effective in accomplishing the purposes of this paragraph. The damages payment may be payable in a lump sum or in installments as the commission may deem appropriate. The commission may require that the agreements include other terms and conditions to provide reasonable assurances that the major league professional basketball team or a successor major league professional basketball team will play the required games at the basketball and hockey arena during the 30-year term of the agreements, or, in the event of a breach, to assure the payment of the required damages. The agreements shall address contingencies that may arise in the event of change of ownership of the professional teams. The agreements with the professional basketball organization for the use of the basketball and hockey arena shall provide for arrangements which the commission may deem necessary or appropriate to accommodate a future agreement between the commission and a professional hockey organization to occupy the basketball and hockey arena, consistent with this section. 

(b) The commission has exercised its reasonable efforts to obtain assurances and/or agreements from the professional basketball major league to the extent permitted under applicable federal and state law, that it will not approve the relocation of the major league professional basketball organization if the relocation is in violation of the terms of the agreements referred to in paragraph (a). 

(c) The professional basketball team has provided information sufficient to satisfy the council and the commission of the team's ability to comply with the terms of the 30-year lease. 

(d) The proceeds of bonds provided for in this subdivision will be sufficient for the purposes for which they are issued. 

(e) The commission has acquired, or has contracted to acquire, (i) leasehold title to the arena land together with the estate of the tenant and other rights demised under the ground lease, subject to amendment as provided in clause (o), (ii) ownership of all real and personal property comprising the basketball and hockey arena, and (iii) all easements, appurtenances and other rights, title, or interest deemed by the commission necessary or desirable in connection with the acquisition, financing, ownership, and operation of the basketball and hockey arena. 

(f) The percentage of the private boxes provided for in the commission's proposal for the basketball and hockey arena are sold or leased for the period that the commission finds advisable. 

(g) The anticipated admission taxes and surcharges and other revenue from the operation of the basketball and hockey arena will be sufficient to pay when due all basketball and hockey arena debt service plus all administration, operating and maintenance expense of the arena. 

(h) The city of Minneapolis has entered into an agreement as contemplated in clause (n) and an agreement or agreements as contemplated in section 473.592 with respect to the basketball and hockey arena. 

(i) The council has entered into an agreement with the brokerage firm or brokerage firms to be used in connection with the issuance and sale of the bonds guaranteeing that fees and charges payable to the brokerage firm or firms in connection therewith, including any underwriting discounts, shall not exceed fees and charges customarily payable in connection with the issuance and sale of bonds secured by the pledge of the full faith and credit of the city of Minneapolis. 

The validity of any bonds issued under subdivision 2, clause (a), and the obligations of the council and commission related to them, shall not be conditioned upon or impaired by the council's determination made pursuant to this subdivision. For purposes of issuing the bonds the determinations made by the commission and council shall be deemed conclusive, and the council shall be and remain obligated for the security and payment of the bonds irrespective of determinations which may be erroneous, inaccurate, or otherwise mistaken. 

(j) The commission has entered into arrangements with any other persons to create a condominium or leasehold condominium, or common interest community or leasehold common interest community, with respect to the building containing the basketball and hockey arena, including the arena playing and spectator areas, and all other portions of the building, and together with the arena land and all other related improvements, easements and other appurtenant and ancillary property and property rights. The Minneapolis Community Development Agency in its capacity as ground lease landlord may be a party to the condominium or common interest community declaration. The condominium or common interest community declaration shall establish the portion of the building containing the health club as a separate unit of the condominium or common interest community, and the commission shall have entered into an agreement or agreements with a private sports and health club organization which shall require that the organization shall purchase or retain ownership of the unit with its own funds and at no cost or expense to the commission, and that the organization shall pay for all utility and other operating costs and expenses including allocated common expenses and pay ad valorem property taxes for the unit. The condominium or common interest community declaration may also establish other units in the condominium or common interest community which shall include the arena playing and spectator areas and may also include office space, restaurant space, locker rooms, private spectator suites or boxes, signage, and other areas, and may also establish common elements, limited common elements and other easements and interests as the commission deems necessary or appropriate. The agreement or agreements between the commission and the private sports and health club organization may also address additional matters which may be the subject of the bylaws or other agreements or arrangements among unit owners of condominiums or common interest communities, either as part of, or separately from, the provisions of chapter 515A or 515B, or any other items as may be ordinarily and customarily negotiated between the commission and the organization. 

(k) The private sports and health club organization has executed an assessment agreement pursuant to section 469.177, subdivision 8, obligating payment of ad valorem taxes based on a minimum market value of the health club of at least $10,000,000 with the city of Minneapolis or the Minneapolis Community Development Agency. 

(l) The commission has executed an agreement requiring the commission to remit annually to the Minneapolis Community Development Agency or appropriate agency an amount which together with any ad valorem taxes or other amounts received by the city of Minneapolis or the Minneapolis Community Development Agency from the health club as tax increments equals the debt service required by the tax increment district attributable to the basketball and hockey arena until the current outstanding indebtedness or any refunding thereof has been paid or retired. 

(m) The development agreement shall be amended: 

(i) so that no payments are due to the city of Minneapolis or the Minneapolis Community Development Agency from the commission or any other person with respect to the sale, ownership or operation of the basketball and hockey arena, except as provided in clauses (k), (l), and (n); and 

(ii) to confirm the satisfactory performance of the obligations of the parties to the development agreement on the effective date of the commission's acquisition; provided, that the city of Minneapolis and the Minneapolis Community Development Agency shall not be required to release any claim they may have under the development agreement with respect to the operations or sale of the health club (except as such claim may arise from the commission's acquisition of the basketball and hockey arena and the contemporaneous sale or transfer of the health club to those persons who own the basketball and hockey arena and the health club on the date of the commission's acquisition) or from the operations or sale of the professional basketball organization occupying the basketball and hockey arena or the security they may have under the development agreement or the ground lease to assure its performance, pursuant to the guaranty of the guarantors in the event of any default of the commission under the ground lease, or of the owners of the health club with respect to the payment of ad valorem taxes or any payment due from them under the development agreement as amended in accordance with the provisions of this subdivision. 

(n) The commission has executed an agreement with the city of Minneapolis providing that for so long as the commission owns the basketball and hockey arena the city shall not impose any entertainment tax or surcharge on tickets purchased for any and all events at the basketball and hockey arena. The agreement may also provide that the commission shall compensate the city for the forbearance of the entertainment tax in effect on the effective date of Laws 1994, chapter 648, plus accrued interest, after payment of basketball and hockey arena debt service, the necessary and appropriate funding of debt reserve of the basketball and hockey arena and all expenses of operation, administration, and maintenance, and the funding of a capital reserve for the repair, remodeling and renovation of the basketball and hockey arena. The required funding of the capital reserve shall be in an amount mutually agreed to by the commission and the city. 

(o) The ground lease shall be amended by the Minneapolis Community Development Agency to the reasonable satisfaction of the commission to provide: 

(i) that the commission's sole financial obligation to the landlord shall be to make the payment provided for in clause (1) from the net revenues of the commission attributable to the operation of the basketball and hockey arena; 

(ii) that the term of the lease shall be 99 years; 

(iii) that the commission shall have the option to purchase the arena land upon the payment of $10 at any time during the term of the ground lease, but, unless otherwise agreed to by the Minneapolis Community Development Agency, only after the payment or retirement of the general obligation tax increment bonds previously issued by the city of Minneapolis to assist in financing the acquisition of the arena land; and 

(iv) other amendments as the commission deems necessary and reasonable to accomplish its purposes as provided in sections 473.598 and 473.599. 

(p) The commission has received a report or reports by qualified consultants on the basketball and hockey arena, the health club and the arena land, based on thorough inspection in accordance with generally accepted professional standards and any correction, repair, or remediation disclosed by the reports has been made to the satisfaction of commission. 

Subd. 5.Security. 
To the extent and in the manner provided in sections 473.592 and 473.595, the taxes described in section 473.592 for the basketball and hockey arena, the tax, surcharge and other revenues of the commission described in section 473.595, subdivision 1a, attributable to the basketball and hockey arena and any other revenues of the commission attributable to the basketball and hockey arena shall be and remain pledged and appropriated for the purposes specified in Laws 1994, chapter 648, article 1, and for the payment of all necessary and reasonable expenses of the operation, administration, maintenance, and debt service of the basketball and hockey arena until all bonds referred to in section 473.599, subdivision 2, are fully paid or discharged in accordance with law. Bonds issued pursuant to this section may be secured by a bond resolution, or by a trust indenture entered into by the council with a corporate trustee within or outside the state, which shall define the tax and other revenues pledged for the payment and security of the bonds. The pledge shall be a valid charge on the tax, surcharge and other revenues attributable to the basketball and hockey arena referred to in sections 473.592, 473.595, subdivision 1a, 473.598, and 473.599 from the date when bonds are first issued or secured under the resolution or indenture and shall secure the payment of principal and interest and redemption premiums when due and the maintenance at all times of a reserve securing the payments. No mortgage of or security interest in any tangible real or personal property shall be granted to the bondholders or the trustee, but they shall have a valid security interest in all tax and other revenues received and accounts receivable by the commission or council under sections 473.592 to the extent of the tax imposed as security for the debt service of the basketball and hockey arena, 473.595, subdivision 1a, 473.598, and 473.599, as against the claims of all other persons in tort, contract, or otherwise, irrespective of whether the parties have notice of them, and without possession or filing as provided in the Uniform Commercial Code or any other law. In the bond resolution or trust indenture the council may make the covenants, which shall be binding upon the commission, as are determined to be usual and reasonably necessary for the protection of the bondholders. No pledge, mortgage, covenant, or agreement securing bonds may be impaired, revoked, or amended by law or by action of the council, commission, or city, except in accordance with the terms of the resolution or indenture under which the bonds are issued, until the obligations of the council under the resolution or indenture are fully discharged. 

Subd. 6.Revenue anticipation certificates. 
After approval by the council and final adoption by the commission of an annual budget of the commission for operation, administration, and maintenance of the basketball and hockey arena, and in anticipation of the proceeds from the taxes under section 473.592 and the revenues of the commission provided for in the budget, but subject to any limitation or prohibition in a bond resolution or indenture, the council may authorize the issuance, negotiation, and sale, in the form and manner and upon the terms that it may determine, of revenue anticipation certificates. The principal amount of the certificates outstanding shall at no time exceed 25 percent of the total amount of the tax and other revenues anticipated. The certificates shall mature not later than three months after the close of the budget year. Prior to the approval and final adoption of the annual budget of the commission, the council may authorize revenue anticipation certificates under this subdivision. So much of the anticipated tax and other revenues as may be needed for the payment of the certificates and interest on them shall be paid into a special debt service fund established for the certificates in the council's financial records. If for any reason the anticipated tax and other revenues are insufficient, the certificates and interest shall be paid from the first tax, surcharge and other revenues received attributable to the basketball and hockey arena, subject to any limitation or prohibition in a bond resolution or indenture. The proceeds of the certificates may be used for any purpose for which the anticipated revenues or taxes may be used or for any purpose for which bond proceeds under subdivision 2 may be used. 

Subd. 7.Arena free of mortgages, liens, and obligations. 
With the exception of the obligations imposed by sections 473.598 and 473.599, the commission shall not assume any notes, pledges, mortgages, liens, encumbrances, contracts, including advertising contracts or marquee agreements, or other obligations upon acquisition of the basketball and hockey arena or the arena land, including but not by way of limitation, management or concession agreements. Upon acquisition by the commission, the basketball and hockey arena and the arena land shall be free of all liens and encumbrances, including the foregoing but excluding the easements and rights-of-way that the commission shall determine do not materially impair or affect its ownership and operation of the basketball and hockey arena. Upon acquisition, the commission shall, through a process involving statewide public participation, select a name for the basketball and hockey arena. In the process of selecting the name, the commission shall consider its obligation under section 473.599, subdivision 1, but that obligation must not be the principal consideration in making the selection. 

Subd. 8.Reimbursement to state. 
The commission shall compensate the state for its contribution from the general fund under Minnesota Statutes 2008, section 240A.08, plus accrued interest, after payment of basketball and hockey arena debt service, the necessary and appropriate funding of debt reserve of the basketball and hockey arena and all expenses of operation, administration, and maintenance and the funding of a capital reserve for the repair, remodeling and renovation of the basketball and hockey arena. Compensation paid to the state shall occur at the same time that compensation is paid to the city of Minneapolis, as provided in paragraph (n) of subdivision 4, on a basis proportionate to the amount of forbearance of the entertainment tax or surcharge as provided in paragraph (n) to that date, and the amount of general fund appropriations paid by the state under Minnesota Statutes 2008, section 240A.08, to that date. No reimbursement will be paid under this subdivision after (1) the aggregate amount of the appropriations granted under Minnesota Statutes 2008, section 240A.08, to that time, plus accrued interest, has been reimbursed under this subdivision, or (2) December 31, 2024, whichever is earlier. 

473.76 METROPOLITAN SPORTS FACILITIES COMMISSION.
The Metropolitan Sports Facilities Commission may authorize, by resolution, technical, professional, or financial assistance to the county and authority for the development and operation of the ballpark upon such terms and conditions as the county or authority and the Metropolitan Sports Facilities Commission may agree, including reimbursement of financial assistance from the proceeds of the bonds authorized in this chapter. Without limiting the foregoing permissive powers, the Metropolitan Sports Facilities Commission shall transfer $300,000 from its cash reserves to the county on or prior to January 1, 2007, for use in connection with preliminary ballpark and public infrastructure costs, which amount shall be repaid by the county from collections of the tax authorized by section 473.757, if any. 

473J.09 POWERS, DUTIES OF THE AUTHORITY.Subd. 14.Study; raffle. 
The authority shall study the feasibility of conducting a raffle for chances to win a pair or other limited numbers of prime seats (such as lower deck, 50 yard line seats) in the stadium for professional football games for the duration of the lease or use agreement. In conducting the study, the authority must consult with the NFL team. If the authority determines that conducting the raffle is financially feasible, the authority in cooperation with the director of the Gambling Control Board shall conduct the raffle. The proceeds of the raffle must be transmitted to the commissioner of revenue for deposit in the general fund and are appropriated to the commissioner of management and budget for prepayment of principal and interest on appropriation bonds under section 16A.965. 

Repealed Minnesota Session Laws: H4099-1 

Laws 1994, chapter 628, article 1, section 8
Sec. 8. SALARIES OF MEMBERS. 
Until changed in law after recommendation by the compensation council as provided in Minnesota Statutes, section 15A.082, the chair of the metropolitan council shall receive a salary of $52,500 per year, and the other members shall receive a salary of $20,000 per year. 

Laws 2017, First Special Session chapter 4, article 2, section 59
Sec. 59. LEGISLATIVE BUDGET OFFICE TRANSITION PLANNING TASK FORCE. Subdivision 1.Membership. 
The Legislative Budget Office Transition Planning Task Force is established. The task force consists of the following members: 

(1) two members of the house of representatives, one appointed by the speaker of the house, and one appointed by the minority leader of the house of representatives; 

(2) two members of the senate appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration, one of whom must represent the majority caucus of the senate, and one of whom must represent the minority caucus of the senate; 

(3) the legislative auditor; 

(4) the commissioner of management and budget; and 

(5) the state budget director. 

The chief nonpartisan fiscal analyst of the house of representatives, the lead nonpartisan fiscal analyst of the senate, and two members from executive branch agencies, appointed by the commissioner of management and budget, shall serve as ex-officio, nonvoting members of the task force. Appointments required by this section must be made no later than July 15, 2017. The chair of the Legislative Coordinating Commission shall designate one member of the task force to serve as its chair. 

Subd. 2.Duties; report required. 
(a) The task force must develop a plan for the orderly transition of fiscal note and local impact note responsibilities from Minnesota Management and Budget to the Legislative Budget Office, as required by this act. At a minimum, the plan must consider the office's responsibilities for fiscal notes and local impact notes, the duties of state agencies and departments and local governments in facilitating the office's work, and any other issues relevant to the transition of duties to the office, as determined by the task force. The plan may include recommendations for additional legislation as necessary to implement the task force's transition plan, or to further clarify or structure the office's responsibilities. 

(b) The task force must submit a preliminary report no later than January 15, 2018, and a final report no later than December 1, 2018, to the chairs and ranking minority members of the house of representatives Ways and Means Committee and the senate Finance Committee. The final report must describe the task force's work, including recommendations for a transition plan and any recommendations for legislation developed under paragraph (a). 

Subd. 3.Staff. 
The Legislative Coordinating Commission must provide research and administrative assistance to support the work of the task force. 

Subd. 4.Expiration. 
The task force expires upon submission of its final report to the legislature under subdivision 2.