1.1 	A bill for an act
1.2 	relating to jobs; appropriating money for the Department of Employment and 
1.3 	Economic Development, Department of Labor and Industry, Department of 
1.4 	Commerce, Public Utilities Commission, the Bureau of Mediation Services, and 
1.5 	Workers' Compensation Court of Appeals; modifying use of Minnesota investment 
1.6 	fund; establishing an airport infrastructure renewal (AIR) grant program; modifying 
1.7 	the youth skills training program; modifying retainage requirements for certain 
1.8 	public contracts and building and construction contracts; providing uniformity for 
1.9 	employment mandates on private employers; prohibiting wage theft; adopting 
1.10 	recommendations from the Workers' Compensation Advisory Council; modifying 
1.11 	the regulation of real estate appraisers; modifying the solar energy incentive 
1.12 	program; modifying the community solar garden program; eliminating the size 
1.13 	limitation on hydropower sources that may satisfy the renewable energy standard; 
1.14 	abolishing the nuclear power plant certificate of need prohibition; modifying the 
1.15 	commercial PACE program; prohibiting use of funds for certain legal proceedings; 
1.16 	modifying conservation improvement program requirements; amending the 
1.17 	renewable development account public utility annual contribution; establishing 
1.18 	criteria for utility cost recovery of energy storage system pilot projects; establishing 
1.19 	a grant program to assist public school districts to install solar energy systems; 
1.20 	establishing an electric vehicle charging station revolving loan program; 
1.21 	establishing a net zero emissions project; establishing a process to compensate 
1.22 	businesses for loss of business opportunity; establishing an advisory task force on 
1.23 	green roofs; requiring a cost-benefit analysis; making policy and technical changes; 
1.24 	appropriating money; modifying fees; establishing criminal penalties; requiring 
1.25 	reports; amending Minnesota Statutes 2018, sections 15.72, subdivision 2; 46.131, 
1.26 	subdivision 11, by adding a subdivision; 82B.021, subdivisions 14, 15; 82B.073, 
1.27 	by adding a subdivision; 82B.09, subdivision 3; 82B.095, by adding a subdivision; 
1.28 	82B.11, subdivision 6, by adding a subdivision; 82B.13, subdivision 1; 82B.195, 
1.29 	subdivision 2; 82B.21; 116C.779, subdivision 1; 116C.7792; 116J.035, subdivision 
1.30 	7; 175.46, subdivisions 3, 13; 176.1812, subdivision 2; 176.231, subdivision 1; 
1.31 	177.23, subdivision 7; 177.27, subdivision 1; 177.32, subdivision 1; 181.03, 
1.32 	subdivision 1, by adding subdivisions; 216B.16, by adding a subdivision; 
1.33 	216B.1641; 216B.1691, subdivision 1; 216B.241, subdivisions 1c, 1d, 2, 2b, 3, 7; 
1.34 	216B.2422, subdivision 1, by adding a subdivision; 216B.243, subdivision 3b; 
1.35 	216C.435, subdivisions 3a, 8; 216C.436, subdivision 4, by adding a subdivision; 
1.36 	326B.821, subdivision 21; 337.10, subdivision 4; 341.30, subdivision 1; 341.32, 
1.37 	subdivision 1; 341.321; 469.055, by adding a subdivision; Laws 2017, chapter 94, 
1.38 	article 1, section 2, subdivision 3; article 10, sections 28; 29; proposing coding for 
2.1 	new law in Minnesota Statutes, chapters 116J; 116L; 181; 216B; 216C; repealing 
2.2 	Minnesota Statutes 2018, sections 82B.021, subdivision 17; 82B.095, subdivision 
2.3 	2; 82B.10, subdivisions 1, 2, 3, 4, 5, 6, 8, 9; 82B.11, subdivision 2; 82B.12; 82B.13, 
2.4 	subdivisions 1a, 3, 4, 5, 6, 7, 8; 82B.14; 82B.195, subdivision 3; 216B.241, 
2.5 	subdivision 1b; 469.084, subdivision 1a.
2.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.7 	ARTICLE 1
2.8 	APPROPRIATIONS

2.92.10
	Section 1. JOBS AND ECONOMIC DEVELOPMENT, ENERGY AND UTILITIES, 
AND COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS.
 	
2.11 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.12 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.13 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.14 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
2.15 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
2.16 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
2.17 	is fiscal years 2020 and 2021.

2.18				APPROPRIATIONS
	
2.19				Available for the Year
	
2.20				Ending June 30
	
2.21					2020
		2021

2.22
2.23	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.24	Subdivision 1.Total Appropriation
 	$
	119,123,000
	$
	114,647,000

2.25	Appropriations by Fund
	
2.26		2020
	2021
	
2.27	General
	87,286,000
	82,810,000
	
2.28	Remediation
	700,000
	700,000
	
2.29
2.30	Workforce 
Development
	31,137,000
	31,137,000
	
2.31 	The amounts that may be spent for each 
2.32 	purpose are specified in the following 
2.33 	subdivisions.

2.34	Subd. 2.Business and Community Development
 		40,762,000
		38,286,000

2.35	Appropriations by Fund
	
2.36	General
	38,587,000
	36,111,000
	
3.1	Remediation
	700,000
	700,000
	
3.2
3.3	Workforce 
Development
	1,475,000
	1,475,000
	
3.4 	(a)(1) $11,500,000 the first year and 
3.5 	$12,500,000 the second year are for the 
3.6 	Minnesota investment fund under Minnesota 
3.7 	Statutes, section 116J.8731. Of this amount, 
3.8 	up to $250,000 is for administration and 
3.9 	monitoring of the program. This appropriation 
3.10 	is available until June 30, 2023. 
3.11 	Notwithstanding Minnesota Statutes, section 
3.12 	116J.8731, funds appropriated to the 
3.13 	commissioner for the Minnesota investment 
3.14 	fund may be used for the redevelopment 
3.15 	program under Minnesota Statutes, sections 
3.16 	116J.575 and 116J.5761, at the discretion of 
3.17 	the commissioner. Grants under this paragraph 
3.18 	are not subject to the grant amount limitation 
3.19 	under Minnesota Statutes, section 116J.8731;
3.20 	(2) of the amount appropriated in fiscal year 
3.21 	2020, $2,000,000 is for a loan to a paper mill 
3.22 	in Duluth to support the operation and 
3.23 	manufacture of packaging paper grades. The 
3.24 	company that owns the paper mill must spend 
3.25 	$25,000,000 on expansion activities by 
3.26 	December 31, 2020, in order to be eligible to 
3.27 	receive funds in this appropriation. This 
3.28 	appropriation is onetime and may be used for 
3.29 	the mill's equipment, materials, supplies, and 
3.30 	other operating expenses. The commissioner 
3.31 	of employment and economic development 
3.32 	shall forgive a portion of the loan each year 
3.33 	after verification that the mill has retained 200 
3.34 	full-time jobs over a period of five years and 
3.35 	has satisfied other performance goals and 
4.1 	contractual obligations as required under 
4.2 	Minnesota Statutes, section 116J.8731;
4.3 	(3) of the amount appropriated in fiscal year 
4.4 	2020, $1,000,000 is for the airport 
4.5 	infrastructure renewal (AIR) grant program 
4.6 	under Minnesota Statutes, section 116J.439; 
4.7 	and
4.8 	(4) of the amount appropriated in fiscal year 
4.9 	2020, $100,000 is for a grant to FIRST in 
4.10 	Upper Midwest to support competitive 
4.11 	robotics teams. Funds must be used to make 
4.12 	up to five awards of no more than $20,000 
4.13 	each to Minnesota-based public entities or 
4.14 	private nonprofit organizations for the creation 
4.15 	of competitive robotics hubs. Awards may be 
4.16 	used for tools, equipment, and physical space 
4.17 	to be utilized by robotics teams. At least 50 
4.18 	percent of grant funds must be used outside 
4.19 	of the seven-county metropolitan area, as 
4.20 	defined under Minnesota Statutes, section 
4.21 	473.121, subdivision 2. The grant recipient 
4.22 	shall report to the chairs and ranking minority 
4.23 	members of the legislative committees with 
4.24 	jurisdiction over jobs and economic growth 
4.25 	by February 1, 2021, on the status of awards 
4.26 	and include information on the number and 
4.27 	amount of awards made, the number of 
4.28 	customers served, and any outcomes resulting 
4.29 	from the grant. The grant requires a 50 percent 
4.30 	match from nonstate sources.
4.31 	(b) $8,000,000 each year is for the Minnesota 
4.32 	job creation fund under Minnesota Statutes, 
4.33 	section 116J.8748. Of this amount, up to 
4.34 	$160,000 is for administration and monitoring 
5.1 	of the program. This appropriation is available 
5.2 	until June 30, 2023.
5.3 	(c) $1,000,000 each year is for the Minnesota 
5.4 	emerging entrepreneur loan program under 
5.5 	Minnesota Statutes, section 116M.18. Funds 
5.6 	available under this paragraph are for transfer 
5.7 	into the emerging entrepreneur program 
5.8 	special revenue fund account created under 
5.9 	Minnesota Statutes, chapter 116M, and are 
5.10 	available until June 30, 2023.
5.11 	(d) $1,350,000 each year from the workforce 
5.12 	development fund is for job training costs 
5.13 	under Minnesota Statutes, section 116L.42.
5.14 	(e) $1,787,000 each year is for the greater 
5.15 	Minnesota business development public 
5.16 	infrastructure grant program under Minnesota 
5.17 	Statutes, section 116J.431. This appropriation 
5.18 	is available until June 30, 2023.
5.19 	(f) $139,000 each year is for the Center for 
5.20 	Rural Policy and Development.
5.21 	(g) $1,772,000 each year is for contaminated 
5.22 	site cleanup and development grants under 
5.23 	Minnesota Statutes, sections 116J.551 to 
5.24 	116J.558. This appropriation is available until 
5.25 	June 30, 2023.
5.26 	(h) $700,000 each year is from the remediation 
5.27 	fund for contaminated site cleanup and 
5.28 	development grants under Minnesota Statutes, 
5.29 	sections 116J.551 to 116J.558. This 
5.30 	appropriation is available until June 30, 2023.
5.31 	(i) $1,425,000 each year is for the business 
5.32 	development competitive grant program. Of 
5.33 	this amount, up to $29,000 is for 
5.34 	administration and monitoring of the business 
6.1 	development competitive grant program. All 
6.2 	grant awards shall be for two consecutive 
6.3 	years. Grants shall be awarded in the first year.
6.4 	(j) $4,195,000 each year is for the Minnesota 
6.5 	job skills partnership program under 
6.6 	Minnesota Statutes, sections 116L.01 to 
6.7 	116L.17. If the appropriation for either year 
6.8 	is insufficient, the appropriation for the other 
6.9 	year is available. This appropriation is 
6.10 	available until June 30, 2023.
6.11 	(k) $875,000 each year is from the general 
6.12 	fund for the host community economic 
6.13 	development program established in 
6.14 	Minnesota Statutes, section 116J.548.
6.15 	(l) $25,000 each year is for the administration 
6.16 	of state aid for the Destination Medical Center 
6.17 	under Minnesota Statutes, sections 469.40 to 
6.18 	469.47.
6.19 	(m) $125,000 each year from the workforce 
6.20 	development fund is for a grant to the White 
6.21 	Earth Nation for the White Earth Nation 
6.22 	Integrated Business Development System to 
6.23 	provide business assistance with workforce 
6.24 	development, outreach, technical assistance, 
6.25 	infrastructure and operational support, 
6.26 	financing, and other business development 
6.27 	activities. This is a onetime appropriation.
6.28 	(n) $12,000 each year is from the general fund 
6.29 	for a grant to the Upper Minnesota Film 
6.30 	Office.
6.31 	(o) $163,000 each year is from the general 
6.32 	fund for the Minnesota Film and TV Board. 
6.33 	The appropriation in each year is available 
6.34 	only upon receipt by the board of $1 in 
7.1 	matching contributions of money or in-kind 
7.2 	contributions from nonstate sources for every 
7.3 	$3 provided by this appropriation, except that 
7.4 	each year up to $50,000 is available on July 
7.5 	1 even if the required matching contribution 
7.6 	has not been received by that date.
7.7 	(p) $500,000 each year is from the general 
7.8 	fund for a grant to the Minnesota Film and TV 
7.9 	Board for the film production jobs program 
7.10 	under Minnesota Statutes, section 116U.26. 
7.11 	This appropriation is available until June 30, 
7.12 	2023.
7.13 	(q) $649,000 in fiscal year 2020 is for grants 
7.14 	to local communities to increase the supply of 
7.15 	quality child care providers to support 
7.16 	economic development. At least 60 percent of 
7.17 	grant funds must go to communities located 
7.18 	outside of the seven-county metropolitan area 
7.19 	as defined under Minnesota Statutes, section 
7.20 	473.121, subdivision 2. Grant recipients must 
7.21 	obtain a 50 percent nonstate match to grant 
7.22 	funds in either cash or in-kind contributions. 
7.23 	Grant funds available under this section must 
7.24 	be used to implement projects to reduce the 
7.25 	child care shortage in the state, including but 
7.26 	not limited to funding for child care business 
7.27 	start-ups or expansion, training, facility 
7.28 	modifications or improvements required for 
7.29 	licensing, and assistance with licensing and 
7.30 	other regulatory requirements. In awarding 
7.31 	grants, the commissioner must give priority 
7.32 	to communities that have demonstrated a 
7.33 	shortage of child care providers in the area. 
7.34 	This is a onetime appropriation. Within one 
7.35 	year of receiving grant funds, grant recipients 
8.1 	must report to the commissioner on the 
8.2 	outcomes of the grant program, including but 
8.3 	not limited to the number of new providers, 
8.4 	the number of additional child care provider 
8.5 	jobs created, the number of additional child 
8.6 	care slots, and the amount of cash and in-kind 
8.7 	local funds invested.
8.8 	(r) $1,827,000 in fiscal year 2020 is for a grant 
8.9 	to the Minnesota Initiative Foundations. This 
8.10 	is a onetime appropriation and is available 
8.11 	until June 30, 2023. The Minnesota Initiative 
8.12 	Foundations must use grant funds under this 
8.13 	section to:
8.14 	(1) facilitate planning processes for rural 
8.15 	communities resulting in a community solution 
8.16 	action plan that guides decision making to 
8.17 	sustain and increase the supply of quality child 
8.18 	care in the region to support economic 
8.19 	development;
8.20 	(2) engage the private sector to invest local 
8.21 	resources to support the community solution 
8.22 	action plan and ensure quality child care is a 
8.23 	vital component of additional regional 
8.24 	economic development planning processes;
8.25 	(3) provide locally based training and technical 
8.26 	assistance to rural child care business owners 
8.27 	individually or through a learning cohort. 
8.28 	Access to financial and business development 
8.29 	assistance must prepare child care businesses 
8.30 	for quality engagement and improvement by 
8.31 	stabilizing operations, leveraging funding from 
8.32 	other sources, and fostering business acumen 
8.33 	that allows child care businesses to plan for 
8.34 	and afford the cost of providing quality child 
8.35 	care; or
9.1 	(4) recruit child care programs to participate 
9.2 	in Parent Aware, Minnesota's quality and 
9.3 	improvement rating system, and other high 
9.4 	quality measurement programs. The Minnesota 
9.5 	Initiative Foundations must work with local 
9.6 	partners to provide low-cost training, 
9.7 	professional development opportunities, and 
9.8 	continuing education curricula. The Minnesota 
9.9 	Initiative Foundations must fund, through local 
9.10 	partners, an enhanced level of coaching to 
9.11 	rural child care providers to obtain a quality 
9.12 	rating through Parent Aware or other high 
9.13 	quality measurement programs.
9.14 	(s) $1,000,000 in fiscal year 2020 is for a grant 
9.15 	to the city of Minnetonka for a high-risk, 
9.16 	high-return jobs retention and creation 
9.17 	initiative to be conducted by a local 
9.18 	organization that produces lactic acid/lactate 
9.19 	to help grow and expand the bioeconomy in 
9.20 	Minnesota. This is a onetime appropriation 
9.21 	and is available until June 30, 2022. The 
9.22 	commissioner of employment and economic 
9.23 	development and the local organization 
9.24 	receiving the grant shall enter into an 
9.25 	agreement which includes, but is not limited 
9.26 	to, the following provisions:
9.27 	(1) a minimum Minnesota job retention 
9.28 	requirement for the local organization for the 
9.29 	term of the grant agreement;
9.30 	(2) commitment to continue operations in 
9.31 	Minnesota for a minimum of five years after 
9.32 	receiving the grant; and
9.33 	(3) agreement to pay back the full amount of 
9.34 	the grant if the local organization relocates 
9.35 	Minnesota operations to another state.

10.1	Subd. 3.Minnesota Trade Office
 		2,292,000
		2,292,000
	
10.2 	(a) $300,000 each year is for the STEP grants 
10.3 	in Minnesota Statutes, section 116J.979.
10.4 	(b) $180,000 each year is for the Invest 
10.5 	Minnesota Marketing Initiative in Minnesota 
10.6 	Statutes, section 116J.9781.
10.7 	(c) $270,000 each year is for the Minnesota 
10.8 	Trade Offices under Minnesota Statutes, 
10.9 	section 116J.978.
10.10 	(d) $50,000 each year is for the trade policy 
10.11 	advisory group under Minnesota Statutes, 
10.12 	section 116J.9661.

10.13	Subd. 4.Workforce Development
 		26,227,000
		26,227,000

10.14	Appropriations by Fund
	
10.15	General
	4,450,000
	4,450,000
	
10.16
10.17	Workforce 
Development
	21,777,000
	21,777,000
	
10.18 	(a) $4,604,000 each year from the workforce 
10.19 	development fund is for the pathways to 
10.20 	prosperity competitive grant program. Of this 
10.21 	amount, up to $92,000 is for administration 
10.22 	and monitoring of the program.
10.23 	(b) $4,050,000 each year is from the 
10.24 	workforce development fund for the 
10.25 	Minnesota youth program under Minnesota 
10.26 	Statutes, sections 116L.56 and 116L.561.
10.27 	(c) $1,000,000 each year is from the workforce 
10.28 	development fund for the youthbuild program 
10.29 	under Minnesota Statutes, sections 116L.361 
10.30 	to 116L.366.
10.31 	(d) $750,000 each year is from the general 
10.32 	fund and $3,348,000 each year is from the 
10.33 	workforce development fund for the youth at 
11.1 	work competitive grant program under 
11.2 	Minnesota Statutes, section 116L.562. Of this 
11.3 	amount, up to $82,000 is for administration 
11.4 	and monitoring of the youth workforce 
11.5 	development competitive grant program. All 
11.6 	grant awards shall be for two consecutive 
11.7 	years. Grants shall be awarded in the first year.
11.8 	(e) $500,000 each year from the general fund 
11.9 	and $500,000 each year from the workforce 
11.10 	development fund are for rural career 
11.11 	counseling coordinators in the workforce 
11.12 	service areas and for the purposes specified 
11.13 	under Minnesota Statutes, section 116L.667.
11.14 	(f) $250,000 each year is for the higher 
11.15 	education career advising program.
11.16 	(g) $1,000,000 each year is for a competitive 
11.17 	grant program for grants to organizations 
11.18 	providing services to relieve economic 
11.19 	disparities in the Southeast Asian community 
11.20 	through workforce recruitment, development, 
11.21 	job creation, assistance of smaller 
11.22 	organizations to increase capacity, and 
11.23 	outreach. Of this amount, up to $20,000 is for 
11.24 	administration and monitoring of the program.
11.25 	(h) $1,000,000 each year is for a competitive 
11.26 	grant program to provide grants to 
11.27 	organizations that provide support services for 
11.28 	individuals, such as job training, employment 
11.29 	preparation, internships, job assistance to 
11.30 	fathers, financial literacy, academic and 
11.31 	behavioral interventions for low-performing 
11.32 	students, and youth intervention. Grants made 
11.33 	under this section must focus on low-income 
11.34 	communities, young adults from families with 
11.35 	a history of intergenerational poverty, and 
12.1 	communities of color. Of this amount, up to 
12.2 	$20,000 is for administration and monitoring 
12.3 	of the program.
12.4 	(i) $750,000 each year is for the high-wage, 
12.5 	high-demand, nontraditional jobs grant 
12.6 	program under Minnesota Statutes, section 
12.7 	116L.99. Of this amount, up to $15,000 is for 
12.8 	administration and monitoring of the program.
12.9 	(j) $500,000 each year is from the workforce 
12.10 	development fund for the Opportunities 
12.11 	Industrialization Center programs. This 
12.12 	appropriation shall be divided equally among 
12.13 	the eligible centers.
12.14 	(k) $250,000 each year is from the workforce 
12.15 	development fund for a grant to YWCA St. 
12.16 	Paul to provide job training services and 
12.17 	workforce development programs and 
12.18 	services, including job skills training and 
12.19 	counseling. This is a onetime appropriation.
12.20 	(l) $750,000 each year is from the workforce 
12.21 	development fund for a grant to the 
12.22 	Minneapolis Foundation for a strategic 
12.23 	intervention program designed to target and 
12.24 	connect program participants to meaningful, 
12.25 	sustainable living-wage employment. This is 
12.26 	a onetime appropriation.
12.27 	(m) $800,000 each year is from the workforce 
12.28 	development fund for performance grants 
12.29 	under Minnesota Statutes, section 116J.8747, 
12.30 	to Twin Cities R!SE to provide training to 
12.31 	hard-to-train individuals. This is a onetime 
12.32 	appropriation.
12.33 	(n) $600,000 each year from the workforce 
12.34 	development fund is for a grant to Ujamaa 
13.1 	Place for job training, employment 
13.2 	preparation, internships, education, training 
13.3 	in the construction trades, housing, and 
13.4 	organizational capacity-building. This is a 
13.5 	onetime appropriation.
13.6 	(o) $200,000 each year is for a grant to 
13.7 	AccessAbility Incorporated to provide job 
13.8 	skills training to individuals who have been 
13.9 	released from incarceration for a felony-level 
13.10 	offense and are no more than 12 months from 
13.11 	the date of release. AccessAbility Incorporated 
13.12 	shall annually report to the commissioner on 
13.13 	how the money was spent and what results 
13.14 	were achieved. The report must include, at a 
13.15 	minimum, information and data about the 
13.16 	number of participants; participant 
13.17 	homelessness, employment, recidivism, and 
13.18 	child support compliance; and training 
13.19 	provided to program participants. This is a 
13.20 	onetime appropriation.
13.21 	(p) $450,000 each year is from the workforce 
13.22 	development fund for grants to Minnesota 
13.23 	Diversified Industries, Inc. to provide 
13.24 	progressive development and employment 
13.25 	opportunities for people with disabilities. This 
13.26 	is a onetime appropriation.
13.27 	(q) $750,000 each year is from the workforce 
13.28 	development fund for a grant to the Minnesota 
13.29 	Alliance of Boys and Girls Clubs to administer 
13.30 	a statewide project of youth job skills and 
13.31 	career development. This project, which may 
13.32 	have career guidance components including 
13.33 	health and life skills, must be designed to 
13.34 	encourage, train, and assist youth in early 
13.35 	access to education and job-seeking skills, 
14.1 	work-based learning experience including 
14.2 	career pathways in STEM learning, career 
14.3 	exploration and matching, and first job 
14.4 	placement through local community 
14.5 	partnerships and on-site job opportunities. This 
14.6 	grant requires a 25 percent match from 
14.7 	nonstate resources. This is a onetime 
14.8 	appropriation.
14.9 	(r) $500,000 each year is from the workforce 
14.10 	development fund for a grant to Avivo to 
14.11 	provide low-income individuals with career 
14.12 	education and job skills training that is fully 
14.13 	integrated with chemical and mental health 
14.14 	services. This is a onetime appropriation.
14.15 	(s) $1,500,000 each year is from the workforce 
14.16 	development fund for a grant to the Minnesota 
14.17 	High Tech Association to support 
14.18 	SciTechsperience, a program that supports 
14.19 	science, technology, engineering, and math 
14.20 	(STEM) internship opportunities for two- and 
14.21 	four-year college students and graduate 
14.22 	students in their field of study. The internship 
14.23 	opportunities must match students with paid 
14.24 	internships within STEM disciplines at small, 
14.25 	for-profit companies located in Minnesota 
14.26 	having fewer than 250 employees worldwide. 
14.27 	At least 350 students must be matched in the 
14.28 	first year and at least 350 students must be 
14.29 	matched in the second year. No more than 15 
14.30 	percent of the hires may be graduate students. 
14.31 	Selected hiring companies shall receive from 
14.32 	the grant 50 percent of the wages paid to the 
14.33 	intern, capped at $3,000 per intern. The 
14.34 	program must work toward increasing the 
14.35 	participation among women or other 
15.1 	underserved populations. This is a onetime 
15.2 	appropriation.
15.3 	(t) $250,000 each year is from the workforce 
15.4 	development fund for a grant to Big Brothers 
15.5 	Big Sisters of the Greater Twin Cities for 
15.6 	workforce readiness, employment exploration, 
15.7 	and skills development for youth ages 12 to 
15.8 	21. The grant must serve youth in the Big 
15.9 	Brothers Big Sisters chapters in the Twin 
15.10 	Cities, central Minnesota, and southern 
15.11 	Minnesota. This is a onetime appropriation.
15.12 	(u) $200,000 each year is from the workforce 
15.13 	development fund for a grant to 180 Degrees 
15.14 	to expand their job readiness training program 
15.15 	to: young adults in group homes; sexually 
15.16 	exploited girls at Brittany's Place; and men 
15.17 	who have recently been released from prison 
15.18 	at the Clifton Residence. This is a onetime 
15.19 	appropriation.
15.20 	(v) $150,000 each year is from the workforce 
15.21 	development fund for displaced homemaker 
15.22 	programs under Minnesota Statutes, section 
15.23 	116L.96. The commissioner, through the adult 
15.24 	career pathways program, shall distribute the 
15.25 	funds to existing nonprofit and state displaced 
15.26 	homemaker programs. This is a onetime 
15.27 	appropriation.
15.28 	(w) $500,000 each year is from the workforce 
15.29 	development fund for a grant to Goodwill 
15.30 	Easter Seals Minnesota and its partners. The 
15.31 	grant shall be used to continue the FATHER 
15.32 	Project in Rochester, Park Rapids, St. Cloud, 
15.33 	Minneapolis, and the surrounding areas to 
15.34 	assist fathers in overcoming barriers that 
15.35 	prevent fathers from supporting their children 
16.1 	economically and emotionally. This is a 
16.2 	onetime appropriation.
16.3 	(x) $500,000 each year is from the workforce 
16.4 	development fund for a grant to Summit 
16.5 	Academy OIC to expand their contextualized 
16.6 	GED and employment placement program and 
16.7 	STEM program. This is a onetime 
16.8 	appropriation.
16.9 	(y) $250,000 each year is from the workforce 
16.10 	development fund for a grant to Bridges to 
16.11 	Healthcare to provide career education, 
16.12 	wraparound support services, and job skills 
16.13 	training in high-demand health care fields to 
16.14 	low-income parents, nonnative speakers of 
16.15 	English, and other hard-to-train individuals, 
16.16 	helping families build secure pathways out of 
16.17 	poverty while also addressing worker 
16.18 	shortages in one of Minnesota's most 
16.19 	innovative industries. Funds may be used for 
16.20 	program expenses, including but not limited 
16.21 	to hiring instructors and navigators; space 
16.22 	rental; and supportive services to help 
16.23 	participants attend classes, including assistance 
16.24 	with course fees, child care, transportation, 
16.25 	and safe and stable housing. In addition, up to 
16.26 	five percent of grant funds may be used for 
16.27 	Bridges to Healthcare's administrative costs. 
16.28 	This is a onetime appropriation.
16.29 	(z) $75,000 each year is from the workforce 
16.30 	development fund for grants to the Minnesota 
16.31 	Grocers Association Foundation for Carts to 
16.32 	Careers, a statewide initiative to promote 
16.33 	careers, conduct outreach, provide job skills 
16.34 	training, and grant scholarships for careers in 
17.1 	the retail food industry. This is a onetime 
17.2 	appropriation.
17.3 	(aa) $250,000 each year is from the workforce 
17.4 	development fund for grants to the American 
17.5 	Indian Opportunities and Industrialization 
17.6 	Center, in collaboration with the Northwest 
17.7 	Indian Community Development Center, to 
17.8 	reduce academic disparities for American 
17.9 	Indian students and adults. The grant funds 
17.10 	may be used to provide:
17.11 	(1) student tutoring and testing support 
17.12 	services;
17.13 	(2) training and employment placement in 
17.14 	information technology;
17.15 	(3) training and employment placement within 
17.16 	trades;
17.17 	(4) assistance in obtaining a GED;
17.18 	(5) remedial training leading to enrollment or 
17.19 	to sustain enrollment in a postsecondary higher 
17.20 	education institution;
17.21 	(6) real-time work experience in information 
17.22 	technology fields and in the trades;
17.23 	(7) contextualized adult basic education;
17.24 	(8) career and educational counseling for 
17.25 	clients with significant and multiple barriers; 
17.26 	and
17.27 	(9) reentry services and counseling for adults 
17.28 	and youth.
17.29 	After notification to the legislature, the 
17.30 	commissioner may transfer this appropriation 
17.31 	to the commissioner of education.

17.32	Subd. 5.Vocational Rehabilitation
 		38,691,000
		36,961,000

18.1	Appropriations by Fund
	
18.2	General
	30,861,000
	28,861,000
	
18.3
18.4	Workforce 
Development
	7,830,000
	7,830,000
	
18.5 	(a) $14,300,000 each year is for the state's 
18.6 	vocational rehabilitation program under 
18.7 	Minnesota Statutes, chapter 268A.
18.8 	(b) $3,011,000 each year is from the general 
18.9 	fund for grants to centers for independent 
18.10 	living under Minnesota Statutes, section 
18.11 	268A.11.
18.12 	(c) $8,995,000 each year from the general fund 
18.13 	and $6,830,000 each year from the workforce 
18.14 	development fund are for extended 
18.15 	employment services for persons with severe 
18.16 	disabilities under Minnesota Statutes, section 
18.17 	268A.15. Of the amounts appropriated from 
18.18 	the general fund, $2,000,000 each year is for 
18.19 	rate increases to providers of extended 
18.20 	employment services for persons with severe 
18.21 	disabilities under Minnesota Statutes, section 
18.22 	268A.15.
18.23 	(d) $1,000,000 each year is from the 
18.24 	workforce development fund for grants under 
18.25 	Minnesota Statutes, section 268A.16, for 
18.26 	employment services for persons, including 
18.27 	transition-aged youth, who are deaf, deafblind, 
18.28 	or hard-of-hearing. If the amount in the first 
18.29 	year is insufficient, the amount in the second 
18.30 	year is available in the first year. Of this 
18.31 	amount, up to $20,000 is for administration 
18.32 	and monitoring of the program.
18.33 	(e) $4,555,000 in the first year and $2,555,000 
18.34 	in the second year are for grants to programs 
18.35 	that provide employment support services to 
19.1 	persons with mental illness under Minnesota 
19.2 	Statutes, sections 268A.13 and 268A.14. Of 
19.3 	the amount appropriated in the first year, 
19.4 	$2,000,000 is available until June 30, 2023, 
19.5 	and must first be used to expand programs to 
19.6 	areas of the state without an existing 
19.7 	employment support program, and secondly 
19.8 	to expand existing programs.

19.9	Subd. 6.Services for the Blind
 		6,425,000
		6,425,000
	
19.10 	$500,000 each year is to provide services for 
19.11 	senior citizens who are becoming blind. At 
19.12 	least half of the funds appropriated must be 
19.13 	used to provide training services for seniors 
19.14 	who are becoming blind. Training services 
19.15 	must provide independent living skills to 
19.16 	seniors who are becoming blind to allow them 
19.17 	to continue to live independently in their 
19.18 	homes.

19.19	Subd. 7.General Support Services
 		4,726,000
		4,726,000
	
19.20 	(a) $250,000 each year is for the publication, 
19.21 	dissemination, and use of labor market 
19.22 	information under Minnesota Statutes, section 
19.23 	116J.4011.
19.24 	(b) $1,269,000 each year is for transfer to the 
19.25 	Minnesota Housing Finance Agency for 
19.26 	operating the Olmstead Implementation 
19.27 	Office.
19.28 	(c) $500,000 each year is for the 
19.29 	capacity-building grant program to assist 
19.30 	nonprofit organizations offering or seeking to 
19.31 	offer workforce development and economic 
19.32 	development programming.
19.33 	(d) $55,000 each year is from the workforce 
19.34 	development fund.

20.1	Subd. 8.Competitive Grant Limitations
 					
20.2 	An organization that receives a direct 
20.3 	appropriation under this section is not eligible 
20.4 	to participate in competitive grant programs 
20.5 	under this section for substantially the same 
20.6 	program or purpose as the direct appropriation 
20.7 	received during the fiscal years in which the 
20.8 	direct appropriations are received.

20.920.10
	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY

20.11	Subdivision 1.Total Appropriation
 	$
	28,787,000
	$
	25,787,000

20.12	Appropriations by Fund
	
20.13		2020
	2021
	
20.14	General
	3,048,000
	3,048,000
	
20.15
20.16	Workers' 
Compensation
	23,005,000
	20,005,000
	
20.17
20.18	Workforce 
Development
	2,734,000
	2,734,000
	
20.19 	The amounts that may be spent for each 
20.20 	purpose are specified in the following 
20.21 	subdivisions.

20.22	Subd. 2.Workers' Compensation
 		14,882,000
		11,882,000
	
20.23 	This appropriation is from the workers' 
20.24 	compensation fund.
20.25 	$3,000,000 in fiscal year 2020 is for workers' 
20.26 	compensation system upgrades. This amount 
20.27 	is available until June 30, 2021. This is a 
20.28 	onetime appropriation.

20.29	Subd. 3.Labor Standards and Apprenticeship
 		4,732,000
		4,732,000

20.30	Appropriations by Fund
	
20.31	General
	3,048,000
	3,048,000
	
20.32
20.33	Workforce 
Development
	1,684,000
	1,684,000
	
21.1 	(a) $1,500,000 each year is for wage theft 
21.2 	prevention. Beginning in fiscal year 2022, the 
21.3 	base amount for this appropriation is 
21.4 	$1,000,000.
21.5 	(b) $250,000 each year is to develop an open 
21.6 	and competitive grant process in consultation 
21.7 	with the Office of Justice Programs in the 
21.8 	Department of Public Safety, law enforcement 
21.9 	organizations, and the Minnesota County 
21.10 	Attorneys Association to award a grant to a 
21.11 	nonprofit organization identifying and serving 
21.12 	victims of labor trafficking to: (1) develop a 
21.13 	statewide model protocol for law enforcement, 
21.14 	prosecutors, and other persons who in their 
21.15 	professional capacity encounter labor 
21.16 	trafficking to identify and intervene with 
21.17 	victims of labor trafficking; (2) conduct 
21.18 	statewide training for law enforcement and 
21.19 	prosecutors including, at a minimum, methods 
21.20 	under Minnesota Statutes, section 299A.79, 
21.21 	subdivision 2; and (3) develop and disseminate 
21.22 	investigative best practices to identify victims 
21.23 	of labor trafficking and traffickers to law 
21.24 	enforcement, prosecutors, and other persons 
21.25 	who in their professional capacity encounter 
21.26 	labor trafficking. The grant recipient may use 
21.27 	the money appropriated in this paragraph to 
21.28 	partner with other entities to implement 
21.29 	clauses (1) to (3).
21.30 	(c) By January 15, 2021, the grant recipient 
21.31 	shall report to the chairs and ranking minority 
21.32 	members of the senate and house of 
21.33 	representatives committees and divisions with 
21.34 	jurisdiction over criminal justice and labor and 
21.35 	industry policy and funding on the grant 
22.1 	process and how the grant money was spent 
22.2 	and details and results of the implementation 
22.3 	of paragraph (a), clauses (1) to (3). This 
22.4 	appropriation is onetime.
22.5 	(d) $1,133,000 each year is from the 
22.6 	workforce development fund for the 
22.7 	apprenticeship program under Minnesota 
22.8 	Statutes, chapter 178.
22.9 	(e) $151,000 each year is from the workforce 
22.10 	development fund for prevailing wage 
22.11 	enforcement.
22.12 	(f) $100,000 each year is from the workforce 
22.13 	development fund for labor education and 
22.14 	advancement program grants under Minnesota 
22.15 	Statutes, section 178.11, to expand and 
22.16 	promote registered apprenticeship training for 
22.17 	minorities and women.
22.18 	(g) $300,000 each year is from the workforce 
22.19 	development fund for grants to the 
22.20 	Construction Careers Foundation for the 
22.21 	Helmets to Hard Hats Minnesota initiative. 
22.22 	Grant funds must be used to recruit, retain, 
22.23 	assist, and support National Guard, reserve, 
22.24 	and active duty military members' and 
22.25 	veterans' participation into apprenticeship 
22.26 	programs registered with the Department of 
22.27 	Labor and Industry and connect them with 
22.28 	career training and employment in the building 
22.29 	and construction industry. The recruitment, 
22.30 	selection, employment, and training must be 
22.31 	without discrimination due to race, color, 
22.32 	creed, religion, national origin, sex, sexual 
22.33 	orientation, marital status, physical or mental 
22.34 	disability, receipt of public assistance, or age. 
22.35 	This is a onetime appropriation.

23.1	Subd. 4.Workplace Safety
 		4,167,000
		4,167,000
	
23.2 	This appropriation is from the workers' 
23.3 	compensation fund.

23.4	Subd. 5.General Support
 		7,089,000
		7,089,000

23.5	Appropriations by Fund
	
23.6
23.7	Workers' 
Compensation
	6,039,000
	6,039,000
	
23.8
23.9	Workforce 
Development
	1,050,000
	1,050,000
	
23.10 	(a) $300,000 each year is from the workforce 
23.11 	development fund for the PIPELINE program.
23.12 	(b) $750,000 each year is from the workforce 
23.13 	development fund for youth skills training 
23.14 	grants under Minnesota Statutes, section 
23.15 	175.46. The commissioner shall award grants 
23.16 	not to exceed $100,000 per local partnership 
23.17 	grant. $100,000 each year is from the 
23.18 	workforce development fund for the 
23.19 	administration of the grant program.

23.20	Sec. 4. BUREAU OF MEDIATION SERVICES
 	$
	2,404,000
	$
	2,404,000
	
23.21 	(a) $68,000 each year is for grants to area 
23.22 	labor management committees. Grants may 
23.23 	be awarded for a 12-month period beginning 
23.24 	July 1 each year. Any unencumbered balance 
23.25 	remaining at the end of the first year does not 
23.26 	cancel but is available for the second year.
23.27 	(b) $394,000 each year is for the Office of 
23.28 	Collaboration and Dispute Resolution under 
23.29 	Minnesota Statutes, section 179.90. Of this 
23.30 	amount, $160,000 each year is for grants under 
23.31 	Minnesota Statutes, section 179.91.

23.32
23.33	Sec. 5. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,952,000
	$
	1,952,000
	
24.1 	This appropriation is from the workers' 
24.2 	compensation fund.

24.3	Sec. 6. DEPARTMENT OF COMMERCE

24.4	Subdivision 1.Total Appropriation
 	$
	26,607,000
	$
	26,610,000

24.5	Appropriations by Fund
	
24.6		2020
	2021
	
24.7	General
	22,733,000
	22,735,000
	
24.8	Special Revenue
	2,060,000
	2,060,000
	
24.9	Petroleum Tank
	1,056,000
	1,056,000
	
24.10
24.11	Workers' 
Compensation Fund
	758,000
	758,000
	
24.12 	The amounts that may be spent for each 
24.13 	purpose are specified in the following 
24.14 	subdivisions.

24.15
24.16	Subd. 2.Petroleum Tank Release Compensation 
Board
 		1,056,000
		1,056,000
	
24.17 	This appropriation is from the petroleum tank 
24.18 	fund to account for base adjustments provided 
24.19 	in Minnesota Statutes, section 115C.13, the 
24.20 	base for the petroleum tank release cleanup 
24.21 	fund in fiscal year 2023 is $0.

24.22	Subd. 3.Telecommunications
 		3,069,000
		3,069,000

24.23	Appropriations by Fund
	
24.24	General
	1,009,000
	1,009,000
	
24.25	Special Revenue
	2,060,000
	2,060,000
	
24.26 	$2,060,000 each year is from the 
24.27 	telecommunications access Minnesota fund 
24.28 	account in the special revenue fund for the 
24.29 	following transfers. This appropriation is 
24.30 	added to the department's base.
24.31 	(1) $1,620,000 each year is to the 
24.32 	commissioner of human services to 
24.33 	supplement the ongoing operational expenses 
24.34 	of the Commission of Deaf, DeafBlind, and 
25.1 	Hard-of-Hearing Minnesotans. This 
25.2 	appropriation is available until June 30, 2021, 
25.3 	and any unexpended amount on that date must 
25.4 	be returned to the telecommunications access 
25.5 	Minnesota fund;
25.6 	(2) $290,000 each year is to the chief 
25.7 	information officer for the purpose of 
25.8 	coordinating technology accessibility and 
25.9 	usability;
25.10 	(3) $100,000 each year is to the Legislative 
25.11 	Coordinating Commission for captioning of 
25.12 	legislative coverage. This transfer is subject 
25.13 	to Minnesota Statutes, section 16A.281; and
25.14 	(4) $50,000 each year is to the Office of 
25.15 	MN.IT Services for a consolidated access fund 
25.16 	to provide grants or services to other state 
25.17 	agencies related to accessibility of their 
25.18 	web-based services.

25.19	Subd. 4.Energy Resources
 		4,276,000
		4,276,000
	
25.20 	(a) $150,000 each year is to remediate 
25.21 	vermiculate insulation from households that 
25.22 	are eligible for weatherization assistance under 
25.23 	Minnesota's weatherization assistance program 
25.24 	state plan under Minnesota Statutes, section 
25.25 	216C.264. Remediation must be done in 
25.26 	conjunction with federal weatherization 
25.27 	assistance program services.
25.28 	(b) $832,000 each year is for energy regulation 
25.29 	and planning unit staff.

25.30	Subd. 5.Administrative Services
 		7,397,000
		7,399,000
	
25.31 	(a) $100,000 each year is for the support of 
25.32 	broadband development.
26.1 	(b) $384,000 each year is for additional 
26.2 	compliance efforts with unclaimed property. 
26.3 	The commissioner may issue contracts for 
26.4 	these services.
26.5 	(c) $5,000 each year is for Real Estate 
26.6 	Appraisal Advisory Board compensation 
26.7 	pursuant to Minnesota Statutes, section 
26.8 	82B.073, subdivision 2a.

26.9	Subd. 6.Enforcement
 		5,777,000
		5,807,000

26.10	Appropriations by Fund
	
26.11	General
	5,577,000
	5,607,000
	
26.12
26.13	Workers' 
Compensation
	200,000
	200,000
	
26.14 	(a) $547,000 in the first year and $577,000 in 
26.15 	the second year are for health care 
26.16 	enforcement.
26.17 	(b) $200,000 in each year is from the workers' 
26.18 	compensation fund. Beginning in fiscal year 
26.19 	2022, this amount is $201,000.

26.20	Subd. 7.Insurance
 		5,032,000
		5,003,000

26.21	Appropriations by Fund
	
26.22	General
	4,474,000
	4,444,000
	
26.23
26.24	Workers' 
Compensation
	558,000
	559,000
	
26.25 	(a) $642,000 each year is for health insurance 
26.26 	rate review staffing.
26.27 	(b) $412,000 each year is for actuarial work 
26.28 	to prepare for implementation of 
26.29 	principle-based reserves.
26.30 	(c) $30,000 in fiscal year 2020 is for payment 
26.31 	of two years of membership dues for 
26.32 	Minnesota to the National Conference of 
26.33 	Insurance Legislators. This is a onetime 
26.34 	appropriation.
27.1 	(d) $558,000 in the first year and $559,000 in 
27.2 	the second year are from the workers' 
27.3 	compensation fund. Beginning in fiscal year 
27.4 	2022, this amount is $560,000.

27.5	Sec. 7. PUBLIC UTILITIES COMMISSION
 	$
	7,793,000
	$
	7,793,000

27.6 	Sec. 8. REDUCTION IN APPROPRIATIONS FOR UNFILLED POSITIONS.
 27.7 		Subdivision 1.Reduction required. The commissioner of management and budget must 
27.8 	reduce general fund and nongeneral fund appropriations to the Department of Employment 
27.9 	and Economic Development and the Department of Labor and Industry for agency operations 
27.10 	for the biennium ending June 30, 2021, for salary and benefits savings that results from any 
27.11 	positions that have not been filled within 180 days of the posting of the position. This section 
27.12 	applies only to positions that are posted in fiscal years 2019, 2020, and 2021. Reductions 
27.13 	made under this paragraph must be reflected as reductions in agency base budgets for fiscal 
27.14 	years 2022 and 2023.
27.15 		Subd. 2.Reporting. The commissioner of management and budget must report to the 
27.16 	chairs and ranking minority members of the senate and the house of representatives jobs 
27.17 	and economic development finance committees regarding the amount of reductions in 
27.18 	spending by each agency under this section.

27.19 	ARTICLE 2
27.20 	JOBS POLICY

27.21 	Section 1. Minnesota Statutes 2018, section 116J.035, subdivision 7, is amended to read:
27.22 		Subd. 7.Monitoring pass-through grant recipients. The commissioner shall monitor 
27.23 	the activities and outcomes of programs and services funded by legislative appropriations 
27.24 	and administered by the department on a pass-through basis. Unless amounts are otherwise 
27.25 	appropriated for administrative costs, the commissioner may retain up to fivetwo percent 
27.26 	of the amount appropriated to the department for grants to pass-through entities. Amounts 
27.27 	retained are deposited to a special revenue account and are appropriated to the commissioner 
27.28 	for costs incurred in administering and monitoring the pass-through grants.

27.29 	Sec. 2. [116J.439] AIRPORT INFRASTRUCTURE RENEWAL (AIR) GRANT 
27.30 	PROGRAM.
27.31 		Subdivision 1.Grant program established; purpose. (a) The commissioner shall make 
27.32 	grants to counties, airport authorities, or cities to provide up to 50 percent of the capital 
28.1 	costs of redevelopment of an existing facility or construction of a new facility; and for public 
28.2 	or private infrastructure costs, including broadband infrastructure costs, necessary for an 
28.3 	eligible airport infrastructure renewal economic development project.
28.4 	(b) The purpose of the grants made under this section is to keep or enhance jobs in the 
28.5 	area, increase the tax base, or expand or create new economic development.
28.6 	(c) In awarding grants under this section, the commissioner must adhere to the criteria 
28.7 	under subdivision 5.
28.8 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
28.9 	meanings given.
28.10 	(b) "City" means a statutory or home rule charter city located outside the metropolitan 
28.11 	area as defined in section 473.121, subdivision 2.
28.12 	(c) "County" means a county located outside the metropolitan area as defined in section 
28.13 	473.121, subdivision 2.
28.14 	(d) "Airport authority" means an authority created pursuant to section 360.0426.
28.15 		Subd. 3.Eligible projects. An economic development project for which a county, airport 
28.16 	authority, or city may be eligible to receive a grant under this section includes: (1) 
28.17 	manufacturing; (2) technology; (3) warehousing and distribution; or (4) research and 
28.18 	development.
28.19 		Subd. 4.Ineligible projects. The following projects are not eligible for a grant under 
28.20 	this section: (1) retail development; or (2) office space development, except as incidental 
28.21 	to an eligible purpose.
28.22 		Subd. 5.Application. (a) The commissioner must develop forms and procedures for 
28.23 	soliciting and reviewing applications for grants under this section. At a minimum, a county, 
28.24 	airport authority, or city must include in its application a resolution of the governing body 
28.25 	of the county, airport authority, or city certifying that half of the cost of the project is 
28.26 	committed from nonstate sources. The commissioner must evaluate complete applications 
28.27 	for eligible projects using the following criteria:
28.28 	(1) the project is an eligible project as defined under subdivision 3;
28.29 	(2) the project is expected to result in or will attract substantial public and private capital  
28.30 	investment and provide substantial economic benefit to the county, airport authority, or city 
28.31 	in which the project would be located; and
28.32 	(3) the project is expected to or will create or retain full-time jobs.
29.1 	(b) The determination of whether to make a grant for a site is within the discretion of 
29.2 	the commissioner, subject to this section. The commissioner's decisions and application of 
29.3 	the criteria are not subject to judicial review except for abuse of discretion.
29.4 		Subd. 6.Maximum grant amount. A county, airport authority, or city may receive no 
29.5 	more than $250,000 in two years for one or more projects.
29.6 		Subd. 7.Cancellation of grant; return of grant money. If after five years the 
29.7 	commissioner determines that a project has not proceeded in a timely manner and is unlikely 
29.8 	to be completed, the commissioner must cancel the grant and require the grantee to return 
29.9 	all grant money awarded for that project.
29.10 		Subd. 8.Appropriation. Grant money returned to the commissioner is appropriated to 
29.11 	the commissioner to make additional grants under this section.

29.12 	Sec. 3. [116L.35] INVENTORY OF ECONOMIC DEVELOPMENT PROGRAMS.
29.13 	(a) By January 15, 2020, and by January 15 of each even-numbered year thereafter, the 
29.14 	commissioner of employment and economic development must submit a report to the chairs 
29.15 	of the legislative committees with jurisdiction over economic development that provides 
29.16 	an inventory of all economic development programs, including any workforce development 
29.17 	programs, either provided by or overseen by any agency of the state of Minnesota.
29.18 	(b) Programs related to economic development that must be included in the report include 
29.19 	those that:
29.20 	(1) receive federal funds or state funds;
29.21 	(2) provide assistance to either businesses or individuals; or
29.22 	(3) support internships, apprenticeships, career and technical education, or any form of 
29.23 	employment training.
29.24 	(c) For each economic development program, the report must include, at a minimum, 
29.25 	the following information:
29.26 	(1) details of program costs;
29.27 	(2) the number of staff, both within the department and any outside organization;
29.28 	(3) the number of program participants;
29.29 	(4) the demographic information including, but not limited to, race, age, gender, and 
29.30 	income of program participants;
30.1 	(5) a list of any and all subgrantees receiving funds from the program, as well as the 
30.2 	amount of funding received;
30.3 	(6) information about other sources of funding including other public or private funding 
30.4 	or in-kind donations;
30.5 	(7) evidence that: (i) the organization administering a program; (ii) a business receiving 
30.6 	a loan for a new or expanded business from a program; or (iii) a subgrantee of a program 
30.7 	is in good standing with the Minnesota Secretary of State and the Minnesota Department 
30.8 	of Revenue;
30.9 	(8) a short description of what each program does; and
30.10 	(9) to the extent practical, quantifiable measures of program success.
30.11 	(d) In addition to the information required under paragraph (c), a program related to 
30.12 	economic development under paragraph (b) that requests an increase in state funding over 
30.13 	the previous biennium must provide the following:
30.14 	(1) detailed information regarding the need for increased funds; and
30.15 	(2) the planned uses of the increased funds.
30.16 	(e) A program related to economic development under paragraph (b) is ineligible for 
30.17 	state funding in the following biennium if it does not submit the information required under 
30.18 	paragraph (c).

30.19 	Sec. 4. Minnesota Statutes 2018, section 469.055, is amended by adding a subdivision to 
30.20 	read:
30.21 		Subd. 2a.Meetings by telephone or other electronic means. A port authority may 
30.22 	conduct meetings as provided by section 13D.015.

30.23 	Sec. 5. Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:

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

30.25	Appropriations by Fund
	
30.26	General
	$6,239,000
	$5,889,000
	
30.27
30.28	Workforce 
Development
	$25,259,000
	$24,342,000
	
30.29 	(a) $500,000 each year is for the 
30.30 	youth-at-work competitive grant program 
30.31 	under Minnesota Statutes, section 116L.562. 
31.1 	Of this amount, up to five percent is for 
31.2 	administration and monitoring of the youth 
31.3 	workforce development competitive grant 
31.4 	program. All grant awards shall be for two 
31.5 	consecutive years. Grants shall be awarded in 
31.6 	the first year. In fiscal year 2020 and beyond, 
31.7 	the base amount is $750,000.
31.8 	(b) $250,000 each year is for pilot programs 
31.9 	in the workforce service areas to combine 
31.10 	career and higher education advising.
31.11 	(c) $500,000 each year is for rural career 
31.12 	counseling coordinator positions in the 
31.13 	workforce service areas and for the purposes 
31.14 	specified in Minnesota Statutes, section 
31.15 	116L.667. The commissioner of employment 
31.16 	and economic development, in consultation 
31.17 	with local workforce investment boards and 
31.18 	local elected officials in each of the service 
31.19 	areas receiving funds, shall develop a method 
31.20 	of distributing funds to provide equitable 
31.21 	services across workforce service areas.
31.22 	(d) $1,000,000 each year is for a grant to the 
31.23 	Construction Careers Foundation for the 
31.24 	construction career pathway initiative to 
31.25 	provide year-round educational and 
31.26 	experiential learning opportunities for teens 
31.27 	and young adults under the age of 21 that lead 
31.28 	to careers in the construction industry. This is 
31.29 	a onetime appropriation. Grant funds must be 
31.30 	used to:
31.31 	(1) increase construction industry exposure 
31.32 	activities for middle school and high school 
31.33 	youth, parents, and counselors to reach a more 
31.34 	diverse demographic and broader statewide 
31.35 	audience. This requirement includes, but is 
32.1 	not limited to, an expansion of programs to 
32.2 	provide experience in different crafts to youth 
32.3 	and young adults throughout the state;
32.4 	(2) increase the number of high schools in 
32.5 	Minnesota offering construction classes during 
32.6 	the academic year that utilize a multicraft 
32.7 	curriculum;
32.8 	(3) increase the number of summer internship 
32.9 	opportunities;
32.10 	(4) enhance activities to support graduating 
32.11 	seniors in their efforts to obtain employment 
32.12 	in the construction industry;
32.13 	(5) increase the number of young adults 
32.14 	employed in the construction industry and 
32.15 	ensure that they reflect Minnesota's diverse 
32.16 	workforce; and
32.17 	(6) enhance an industrywide marketing 
32.18 	campaign targeted to youth and young adults 
32.19 	about the depth and breadth of careers within 
32.20 	the construction industry.
32.21 	Programs and services supported by grant 
32.22 	funds must give priority to individuals and 
32.23 	groups that are economically disadvantaged 
32.24 	or historically underrepresented in the 
32.25 	construction industry, including but not limited 
32.26 	to women, veterans, and members of minority 
32.27 	and immigrant groups.
32.28 	(e) $1,539,000 each year from the general fund 
32.29 	and $4,604,000 each year from the workforce 
32.30 	development fund are for the Pathways to 
32.31 	Prosperity adult workforce development 
32.32 	competitive grant program. Of this amount, 
32.33 	up to four percent is for administration and 
32.34 	monitoring of the program. When awarding 
33.1 	grants under this paragraph, the commissioner 
33.2 	of employment and economic development 
33.3 	may give preference to any previous grantee 
33.4 	with demonstrated success in job training and 
33.5 	placement for hard-to-train individuals. In 
33.6 	fiscal year 2020 and beyond, the general fund 
33.7 	base amount for this program is $4,039,000.
33.8 	(f) $750,000 each year is for a competitive 
33.9 	grant program to provide grants to 
33.10 	organizations that provide support services for 
33.11 	individuals, such as job training, employment 
33.12 	preparation, internships, job assistance to 
33.13 	fathers, financial literacy, academic and 
33.14 	behavioral interventions for low-performing 
33.15 	students, and youth intervention. Grants made 
33.16 	under this section must focus on low-income 
33.17 	communities, young adults from families with 
33.18 	a history of intergenerational poverty, and 
33.19 	communities of color. Of this amount, up to 
33.20 	four percent is for administration and 
33.21 	monitoring of the program. In fiscal year 2020 
33.22 	and beyond, the base amount is $1,000,000.
33.23 	(g) $500,000 each year is for the women and 
33.24 	high-wage, high-demand, nontraditional jobs 
33.25 	grant program under Minnesota Statutes, 
33.26 	section 116L.99. Of this amount, up to five 
33.27 	percent is for administration and monitoring 
33.28 	of the program. In fiscal year 2020 and 
33.29 	beyond, the base amount is $750,000.
33.30 	(h) $500,000 each year is for a competitive 
33.31 	grant program for grants to organizations 
33.32 	providing services to relieve economic 
33.33 	disparities in the Southeast Asian community 
33.34 	through workforce recruitment, development, 
33.35 	job creation, assistance of smaller 
34.1 	organizations to increase capacity, and 
34.2 	outreach. Of this amount, up to five percent 
34.3 	is for administration and monitoring of the 
34.4 	program. In fiscal year 2020 and beyond, the 
34.5 	base amount is $1,000,000.
34.6 	(i) $250,000 each year is for a grant to the 
34.7 	American Indian Opportunities and 
34.8 	Industrialization Center, in collaboration with 
34.9 	the Northwest Indian Community 
34.10 	Development Center, to reduce academic 
34.11 	disparities for American Indian students and 
34.12 	adults. This is a onetime appropriation. The 
34.13 	grant funds may be used to provide:
34.14 	(1) student tutoring and testing support 
34.15 	services;
34.16 	(2) training in information technology;
34.17 	(3) assistance in obtaining a GED;
34.18 	(4) remedial training leading to enrollment in 
34.19 	a postsecondary higher education institution;
34.20 	(5) real-time work experience in information 
34.21 	technology fields; and
34.22 	(6) contextualized adult basic education.
34.23 	After notification to the legislature, the 
34.24 	commissioner may transfer this appropriation 
34.25 	to the commissioner of education.
34.26 	(j) $100,000 each year is for the getting to 
34.27 	work grant program. This is a onetime 
34.28 	appropriation and is available until June 30, 
34.29 	2021.
34.30 	(k) $525,000 each year is from the workforce 
34.31 	development fund for a grant to the YWCA 
34.32 	of Minneapolis to provide economically 
34.33 	challenged individuals the job skills training, 
35.1 	career counseling, and job placement 
35.2 	assistance necessary to secure a child 
35.3 	development associate credential and to have 
35.4 	a career path in early childhood education. 
35.5 	This is a onetime appropriation.
35.6 	(l) $1,350,000 each year is from the workforce 
35.7 	development fund for a grant to the Minnesota 
35.8 	High Tech Association to support 
35.9 	SciTechsperience, a program that supports 
35.10 	science, technology, engineering, and math 
35.11 	(STEM) internship opportunities for two- and 
35.12 	four-year college students and graduate 
35.13 	students in their field of study. The internship 
35.14 	opportunities must match students with paid 
35.15 	internships within STEM disciplines at small, 
35.16 	for-profit companies located in Minnesota, 
35.17 	having fewer than 250 employees worldwide. 
35.18 	At least 300 students must be matched in the 
35.19 	first year and at least 350 students must be 
35.20 	matched in the second year. No more than 15 
35.21 	percent of the hires may be graduate students. 
35.22 	Selected hiring companies shall receive from 
35.23 	the grant 50 percent of the wages paid to the 
35.24 	intern, capped at $2,500 per intern. The 
35.25 	program must work toward increasing the 
35.26 	participation of women or other underserved 
35.27 	populations. This is a onetime appropriation.
35.28 	(m) $450,000 each year is from the workforce 
35.29 	development fund for grants to Minnesota 
35.30 	Diversified Industries, Inc. to provide 
35.31 	progressive development and employment 
35.32 	opportunities for people with disabilities. This 
35.33 	is a onetime appropriation.
35.34 	(n) $500,000 each year is from the workforce 
35.35 	development fund for a grant to Resource, Inc. 
36.1 	to provide low-income individuals career 
36.2 	education and job skills training that are fully 
36.3 	integrated with chemical and mental health 
36.4 	services. This is a onetime appropriation.
36.5 	(o) $750,000 each year is from the workforce 
36.6 	development fund for a grant to the Minnesota 
36.7 	Alliance of Boys and Girls Clubs to administer 
36.8 	a statewide project of youth job skills and 
36.9 	career development. This project, which may 
36.10 	have career guidance components including 
36.11 	health and life skills, is designed to encourage, 
36.12 	train, and assist youth in early access to 
36.13 	education and job-seeking skills, work-based 
36.14 	learning experience including career pathways 
36.15 	in STEM learning, career exploration and 
36.16 	matching, and first job placement through 
36.17 	local community partnerships and on-site job 
36.18 	opportunities. This grant requires a 25 percent 
36.19 	match from nonstate resources. This is a 
36.20 	onetime appropriation.
36.21 	(p) $215,000 each year is from the workforce 
36.22 	development fund for grants to Big Brothers, 
36.23 	Big Sisters of the Greater Twin Cities for 
36.24 	workforce readiness, employment exploration, 
36.25 	and skills development for youth ages 12 to 
36.26 	21. The grant must serve youth in the Twin 
36.27 	Cities, Central Minnesota, and Southern 
36.28 	Minnesota Big Brothers, Big Sisters chapters. 
36.29 	This is a onetime appropriation.
36.30 	(q) $250,000 each year is from the workforce 
36.31 	development fund for a grant to YWCA St. 
36.32 	Paul to provide job training services and 
36.33 	workforce development programs and 
36.34 	services, including job skills training and 
36.35 	counseling. This is a onetime appropriation.
37.1 	(r) $1,000,000 each year is from the workforce 
37.2 	development fund for a grant to EMERGE 
37.3 	Community Development, in collaboration 
37.4 	with community partners, for services 
37.5 	targeting Minnesota communities with the 
37.6 	highest concentrations of African and 
37.7 	African-American joblessness, based on the 
37.8 	most recent census tract data, to provide 
37.9 	employment readiness training, credentialed 
37.10 	training placement, job placement and 
37.11 	retention services, supportive services for 
37.12 	hard-to-employ individuals, and a general 
37.13 	education development fast track and adult 
37.14 	diploma program. This is a onetime 
37.15 	appropriation.
37.16 	(s) $1,000,000 each year is from the workforce 
37.17 	development fund for a grant to the 
37.18 	Minneapolis Foundation for a strategic 
37.19 	intervention program designed to target and 
37.20 	connect program participants to meaningful, 
37.21 	sustainable living-wage employment. This is 
37.22 	a onetime appropriation.
37.23 	(t) $750,000 each year is from the workforce 
37.24 	development fund for a grant to Latino 
37.25 	Communities United in Service (CLUES) to 
37.26 	expand culturally tailored programs that 
37.27 	address employment and education skill gaps 
37.28 	for working parents and underserved youth by 
37.29 	providing new job skills training to stimulate 
37.30 	higher wages for low-income people, family 
37.31 	support systems designed to reduce 
37.32 	intergenerational poverty, and youth 
37.33 	programming to promote educational 
37.34 	advancement and career pathways. At least 
37.35 	50 percent of this amount must be used for 
38.1 	programming targeted at greater Minnesota. 
38.2 	This is a onetime appropriation.
38.3 	(u) $600,000 each year is from the workforce 
38.4 	development fund for a grant to Ujamaa Place 
38.5 	for job training, employment preparation, 
38.6 	internships, education, training in the 
38.7 	construction trades, housing, and 
38.8 	organizational capacity building. This is a 
38.9 	onetime appropriation.
38.10 	(v) $1,297,000 in the first year and $800,000 
38.11 	in the second year are from the workforce 
38.12 	development fund for performance grants 
38.13 	under Minnesota Statutes, section 116J.8747, 
38.14 	to Twin Cities R!SE to provide training to 
38.15 	hard-to-train individuals. Of the amounts 
38.16 	appropriated, $497,000 in fiscal year 2018 is 
38.17 	for a grant to Twin Cities R!SE, in 
38.18 	collaboration with Metro Transit and Hennepin 
38.19 	Technical College for the Metro Transit 
38.20 	technician training program. This is a onetime 
38.21 	appropriation and funds are available until 
38.22 	June 30, 2020.
38.23 	(w) $230,000 in fiscal year 2018 is from the 
38.24 	workforce development fund for a grant to the 
38.25 	Bois Forte Tribal Employment Rights Office 
38.26 	(TERO) for an American Indian workforce 
38.27 	development training pilot project. This is a 
38.28 	onetime appropriation and is available until 
38.29 	June 30, 2019. Funds appropriated the first 
38.30 	year are available for use in the second year 
38.31 	of the biennium.
38.32 	(x) $40,000 in fiscal year 2018 is from the 
38.33 	workforce development fund for a grant to the 
38.34 	Cook County Higher Education Board to 
38.35 	provide educational programming and 
39.1 	academic support services to remote regions 
39.2 	in northeastern Minnesota. This appropriation 
39.3 	is in addition to other funds previously 
39.4 	appropriated to the board.
39.5 	(y) $250,000 each year is from the workforce 
39.6 	development fund for a grant to Bridges to 
39.7 	Healthcare to provide career education, 
39.8 	wraparound support services, and job skills 
39.9 	training in high-demand health care fields to 
39.10 	low-income parents, nonnative speakers of 
39.11 	English, and other hard-to-train individuals, 
39.12 	helping families build secure pathways out of 
39.13 	poverty while also addressing worker 
39.14 	shortages in one of Minnesota's most 
39.15 	innovative industries. Funds may be used for 
39.16 	program expenses, including, but not limited 
39.17 	to, hiring instructors and navigators; space 
39.18 	rental; and supportive services to help 
39.19 	participants attend classes, including assistance 
39.20 	with course fees, child care, transportation, 
39.21 	and safe and stable housing. In addition, up to 
39.22 	five percent of grant funds may be used for 
39.23 	Bridges to Healthcare's administrative costs. 
39.24 	This is a onetime appropriation and is 
39.25 	available until June 30, 2020.
39.26 	(z) $500,000 each year is from the workforce 
39.27 	development fund for a grant to the Nonprofits 
39.28 	Assistance Fund to provide capacity-building 
39.29 	grants to small, culturally specific 
39.30 	organizations that primarily serve historically 
39.31 	underserved cultural communities. Grants may 
39.32 	only be awarded to nonprofit organizations 
39.33 	that have an annual organizational budget of 
39.34 	less than $500,000 and are culturally specific 
39.35 	organizations that primarily serve historically 
40.1 	underserved cultural communities. Grant funds 
40.2 	awarded must be used for:
40.3 	(1) organizational infrastructure improvement, 
40.4 	including developing database management 
40.5 	systems and financial systems, or other 
40.6 	administrative needs that increase the 
40.7 	organization's ability to access new funding 
40.8 	sources;
40.9 	(2) organizational workforce development, 
40.10 	including hiring culturally competent staff, 
40.11 	training and skills development, and other 
40.12 	methods of increasing staff capacity; or
40.13 	(3) creation or expansion of partnerships with 
40.14 	existing organizations that have specialized 
40.15 	expertise in order to increase the capacity of 
40.16 	the grantee organization to improve services 
40.17 	for the community. Of this amount, up to five 
40.18 	percent may be used by the Nonprofits 
40.19 	Assistance Fund for administration costs and 
40.20 	providing technical assistance to potential 
40.21 	grantees. This is a onetime appropriation.
40.22 	(aa) $4,050,000 each year is from the 
40.23 	workforce development fund for the 
40.24 	Minnesota youth program under Minnesota 
40.25 	Statutes, sections 116L.56 and 116L.561.
40.26 	(bb) $1,000,000 each year is from the 
40.27 	workforce development fund for the 
40.28 	youthbuild program under Minnesota Statutes, 
40.29 	sections 116L.361 to 116L.366.
40.30 	(cc) $3,348,000 each year is from the 
40.31 	workforce development fund for the "Youth 
40.32 	at Work" youth workforce development 
40.33 	competitive grant program. Of this amount, 
40.34 	up to five percent is for administration and 
41.1 	monitoring of the youth workforce 
41.2 	development competitive grant program. All 
41.3 	grant awards shall be for two consecutive 
41.4 	years. Grants shall be awarded in the first year.
41.5 	(dd) $500,000 each year is from the workforce 
41.6 	development fund for the Opportunities 
41.7 	Industrialization Center programs.
41.8 	(ee) $750,000 each year is from the workforce 
41.9 	development fund for a grant to Summit 
41.10 	Academy OIC to expand its contextualized 
41.11 	GED and employment placement program. 
41.12 	This is a onetime appropriation.
41.13 	(ff) $500,000 each year is from the workforce 
41.14 	development fund for a grant to 
41.15 	Goodwill-Easter Seals Minnesota and its 
41.16 	partners. The grant shall be used to continue 
41.17 	the FATHER Project in Rochester, Park 
41.18 	Rapids, St. Cloud, Minneapolis, and the 
41.19 	surrounding areas to assist fathers in 
41.20 	overcoming barriers that prevent fathers from 
41.21 	supporting their children economically and 
41.22 	emotionally. This is a onetime appropriation.
41.23 	(gg) $150,000 each year is from the workforce 
41.24 	development fund for displaced homemaker 
41.25 	programs under Minnesota Statutes, section 
41.26 	116L.96. The commissioner shall distribute 
41.27 	the funds to existing nonprofit and state 
41.28 	displaced homemaker programs. This is a 
41.29 	onetime appropriation.
41.30 	(hh)(1) $150,000 in fiscal year 2018 is from 
41.31 	the workforce development fund for a grant 
41.32 	to Anoka County to develop and implement 
41.33 	a pilot program to increase competitive 
42.1 	employment opportunities for transition-age 
42.2 	youth ages 18 to 21.
42.3 	(2) The competitive employment for 
42.4 	transition-age youth pilot program shall 
42.5 	include career guidance components, including 
42.6 	health and life skills, to encourage, train, and 
42.7 	assist transition-age youth in job-seeking 
42.8 	skills, workplace orientation, and job site 
42.9 	knowledge.
42.10 	(3) In operating the pilot program, Anoka 
42.11 	County shall collaborate with schools, 
42.12 	disability providers, jobs and training 
42.13 	organizations, vocational rehabilitation 
42.14 	providers, and employers to build upon 
42.15 	opportunities and services, to prepare 
42.16 	transition-age youth for competitive 
42.17 	employment, and to enhance employer 
42.18 	connections that lead to employment for the 
42.19 	individuals served.
42.20 	(4) Grant funds may be used to create an 
42.21 	on-the-job training incentive to encourage 
42.22 	employers to hire and train qualifying 
42.23 	individuals. A participating employer may 
42.24 	receive up to 50 percent of the wages paid to 
42.25 	the employee as a cost reimbursement for 
42.26 	on-the-job training provided.
42.27 	(ii) $500,000 each year is from the workforce 
42.28 	development fund for rural career counseling 
42.29 	coordinator positions in the workforce service 
42.30 	areas and for the purposes specified in 
42.31 	Minnesota Statutes, section 116L.667. The 
42.32 	commissioner of employment and economic 
42.33 	development, in consultation with local 
42.34 	workforce investment boards and local elected 
42.35 	officials in each of the service areas receiving 
43.1 	funds, shall develop a method of distributing 
43.2 	funds to provide equitable services across 
43.3 	workforce service areas.
43.4 	(jj) In calendar year 2017, the public utility 
43.5 	subject to Minnesota Statutes, section 
43.6 	116C.779, must withhold $1,000,000 from the 
43.7 	funds required to fulfill its financial 
43.8 	commitments under Minnesota Statutes, 
43.9 	section 116C.779, subdivision 1, and pay such 
43.10 	amounts to the commissioner of employment 
43.11 	and economic development for deposit in the 
43.12 	Minnesota 21st century fund under Minnesota 
43.13 	Statutes, section 116J.423.
43.14 	(kk) $350,000 in fiscal year 2018 is for a grant 
43.15 	to AccessAbility Incorporated to provide job 
43.16 	skills training to individuals who have been 
43.17 	released from incarceration for a felony-level 
43.18 	offense and are no more than 12 months from 
43.19 	the date of release. AccessAbility Incorporated 
43.20 	shall annually report to the commissioner on 
43.21 	how the money was spent and the results 
43.22 	achieved. The report must include, at a 
43.23 	minimum, information and data about the 
43.24 	number of participants; participant 
43.25 	homelessness, employment, recidivism, and 
43.26 	child support compliance; and training 
43.27 	provided to program participants.

43.28 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2017.

43.29 	Sec. 6. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA 
43.30 	INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 43.31 	(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or 
43.32 	statutory city, county, or town that has uncommitted money received from repayment of 
43.33 	funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20 
43.34 	percent of the balance of that money to the state general fund before June 30, 2020. Any 
44.1 	local entity that does so may then use the remaining 80 percent of the uncommitted money 
44.2 	as a general purpose aid for any lawful expenditure.
44.3 	(b) By February 15, 2021, a home rule charter or statutory city, county, or town that 
44.4 	exercises the option under paragraph (a) shall submit to the chairs of the legislative 
44.5 	committees with jurisdiction over economic development policy and finance an accounting 
44.6 	and explanation of the use and distribution of the funds.

44.7 	Sec. 7. REPEALER.
 44.8 	Minnesota Statutes 2018, section 469.084, subdivision 1a, is repealed.

44.9 	ARTICLE 3
44.10 	LABOR AND INDUSTRY POLICY

44.11 	Section 1. Minnesota Statutes 2018, section 15.72, subdivision 2, is amended to read:
44.12 		Subd. 2.Retainage. (a) A public contracting agency may reserve as retainage from any 
44.13 	progress payment on a public contract for a public improvement an amount not to exceed 
44.14 	five percent of the payment. AThe public contracting agency may reduce the amount of 
44.15 	the retainage and may eliminate retainage on any monthly contract payment if, in the agency's 
44.16 	opinion, the work is progressing satisfactorily.
44.17 	(b) For all construction contracts greater than $5,000,000, the public contracting agency 
44.18 	must reduce retainage to no more than 2.5 percent if the public contracting agency determines 
44.19 	the work is 75 percent or more complete, that work is progressing satisfactorily, and all 
44.20 	contract requirements are being met.
44.21 	(c) The public contracting agency must release any remaining retainage no later than 60 
44.22 	days after substantial completion.
44.23 	(d) A contractor on a public contract for a public improvement must pay out any 
44.24 	remaining retainage to its subcontractors no later than ten days after receiving payment of 
44.25 	retainage from the public contracting agency, unless there is a dispute about the work under 
44.26 	a subcontract. If there is a dispute about the work under a subcontract, the contractor must 
44.27 	pay out retainage to any subcontractor whose work is not involved in the dispute, and must 
44.28 	provide a written statement detailing the amount and reason for the withholding to the 
44.29 	affected subcontractor and the public agency.
44.30 	(e) A contractor may not reserve as retainage from a subcontractor an amount that exceeds 
44.31 	the amount reserved by the public contracting agency under this subdivision. Upon written 
44.32 	request of a subcontractor who has not been paid for work in accordance with section 
45.1 	16A.1245 or 471.425, subdivision 4a, the public contracting agency shall notify the 
45.2 	subcontractor of a progress payment, retainage payment, or final payment made to the 
45.3 	contractor. A contractor must include in any contract with a subcontractor the name, address, 
45.4 	and telephone number of a responsible official at the public contracting agency that may 
45.5 	be contacted for purposes of making a request under this paragraph.
45.6 	(f) After substantial completion, a public contracting agency may withhold no more 
45.7 	than:
45.8 	(1) 250 percent of the value of incomplete or defective work; and
45.9 	(2) one percent of the value of the contract or $500, whichever is greater, pending 
45.10 	completion and submission of all final paperwork by the contractor, provided that an amount 
45.11 	withheld under this clause may not exceed $10,000.
45.12 	If the public contracting agency withholds payment under this paragraph, the public 
45.13 	contracting agency must promptly provide a written statement detailing the amount and 
45.14 	basis of withholding to the contractor. The public contracting agency must provide a copy 
45.15 	of this statement to any subcontractor that requests it. Any amounts withheld for incomplete 
45.16 	or defective work shall be paid within 45 days after the completion of the work. Any amounts 
45.17 	withheld under clause (1) must be paid within 45 days after completion of the work. Any 
45.18 	amounts withheld under clause (2) must be paid within 45 days after submission of all final 
45.19 	paperwork.
45.20 	(g) As used in this subdivision, "substantial completion" shall be determined as provided 
45.21 	in section 541.051, subdivision 1, paragraph (a). For construction, reconstruction, or 
45.22 	improvement of streets and highways, including bridges, substantial completion means the 
45.23 	date when construction-related traffic devices and ongoing inspections are no longer required.
45.24 	(h) The maximum retainage percentage allowed for a building and construction contract 
45.25 	is the retainage percentage withheld by the public contracting agency from the contractor.
45.26 	(i) Withholding retainage for warranties or warranty work is prohibited.

45.27 	EFFECTIVE DATE. This section applies to agreements entered into on or after August 
45.28 	1, 2019.

45.29 	Sec. 2. Minnesota Statutes 2018, section 175.46, subdivision 3, is amended to read:
45.30 		Subd. 3.Duties. (a) The commissioner shall:
45.31 	(1) approve youth skills training programs that train student learners for careers in 
45.32 	high-growth, high-demand occupations that provide:
46.1 	(i) that the work of the student learner in the occupations declared particularly hazardous 
46.2 	shall be incidental to the training;
46.3 	(ii) that the work shall be intermittent and for short periods of time, and under the direct 
46.4 	and close supervision of a qualified and experienced person;
46.5 	(iii) that safety instruction shall be provided to the student learner and may be given by 
46.6 	the school and correlated by the employer with on-the-job training;
46.7 	(iv) a schedule of organized and progressive work processes to be performed on the job;
46.8 	(v) a schedule of wage rates in compliance with section 177.24; and
46.9 	(vi) whether the student learner will obtain secondary school academic credit, 
46.10 	postsecondary credit, or both, for the training program;
46.11 	(2) approve occupations and maintain a list of approved occupations for programs under 
46.12 	this section;
46.13 	(3) issue requests for proposals for grants;
46.14 	(4) work with individuals representing industry and labor to develop new youth skills 
46.15 	training programs;
46.16 	(5) develop model program guides;
46.17 	(6) monitor youth skills training programs;
46.18 	(7) provide technical assistance to local partnership grantees;
46.19 	(8) work with providers to identify paths for receiving postsecondary credit for 
46.20 	participation in the youth skills training program; and
46.21 	(9) approve other activities as necessary to implement the program.
46.22 	(b) The commissioner shall collaborate with stakeholders, including, but not limited to, 
46.23 	representatives of secondary school institutions, career and technical education instructors, 
46.24 	postsecondary institutions, businesses, and labor, in developing youth skills training 
46.25 	programs, and identifying and approving occupations and competencies for youth skills 
46.26 	training programs.

46.27 	Sec. 3. Minnesota Statutes 2018, section 175.46, subdivision 13, is amended to read:
46.28 		Subd. 13.Grant awards. (a) The commissioner shall award grants to local partnerships 
46.29 	for youth skills training programs that train student learners for careers in high-growth, 
47.1 	high-demand occupations. Grant awards may not exceed $100,000 per local partnership 
47.2 	grant.
47.3 	(b) A local partnership awarded a grant under this section must use the grant award for 
47.4 	any of the following implementation and coordination activities:
47.5 	(1) recruiting additional employers to provide on-the-job training and supervision for 
47.6 	student learners and providing technical assistance to those employers;
47.7 	(2) recruiting students to participate in the local youth skills training program, monitoring 
47.8 	the progress of student learners participating in the program, and monitoring program 
47.9 	outcomes;
47.10 	(3) coordinating youth skills training activities within participating school districts and 
47.11 	among participating school districts, postsecondary institutions, and employers;
47.12 	(4) coordinating academic, vocational and occupational learning, school-based and 
47.13 	work-based learning, and secondary and postsecondary education for participants in the 
47.14 	local youth skills training program;
47.15 	(5) coordinating transportation for student learners participating in the local youth skills 
47.16 	training program; and
47.17 	(6) any other implementation or coordination activity that the commissioner may direct 
47.18 	or permit the local partnership to perform.
47.19 	(b) (c) Grant awards may not be used to directly or indirectly pay the wages of a student 
47.20 	learner.

47.21 	Sec. 4. Minnesota Statutes 2018, section 326B.821, subdivision 21, is amended to read:
47.22 		Subd. 21.Residential building contractor, remodeler, and roofer education. (a) Each 
47.23 	licensee must, during each continuing education reporting period, complete and report one 
47.24 	hour of continuing education relating to energy codes or energy conservation measures 
47.25 	applicable to residential buildings and one hour of business management strategies applicable 
47.26 	to residential construction businesses.
47.27 	(b) Immediately following the adoption date of a new residential code, the commissioner 
47.28 	may prescribe that up to seven of the required 14 hours of continuing education credit per 
47.29 	licensure period include education hours specifically designated to instruct licensees on 
47.30 	new or existing State Building Code provisions.

48.1 	Sec. 5. Minnesota Statutes 2018, section 337.10, subdivision 4, is amended to read:
48.2 		Subd. 4.Progress payments and retainages. (a) Unless the building and construction 
48.3 	contract provides otherwise, the owner or other persons making payments under the contract 
48.4 	must make progress payments monthly as the work progresses. Payments shall be based 
48.5 	upon estimates of work completed as approved by the owner or the owner's agent. A progress 
48.6 	payment shall not be considered acceptance or approval of any work or waiver of any defects 
48.7 	therein.
48.8 	(b) Retainage on a building and construction contract may not exceed five percent. An 
48.9 	owner or owner's agent may reduce the amount of retainage and may eliminate retainage 
48.10 	on any monthly contract payment if, in the owner's opinion, the work is progressing 
48.11 	satisfactorily. Nothing in this subdivision is intended to require that retainage be withheld 
48.12 	in any building or construction contract. For all construction contracts greater than 
48.13 	$5,000,000, the owner or the owner's agent must reduce retainage to no more than 2.5 
48.14 	percent if the owner or the owner's agent determines the work is 75 percent or more complete, 
48.15 	that work is progressing satisfactorily, and all contract requirements are being met.
48.16 	(c)  The owner or the owner's agent must release any remaining retainage no later than 
48.17 	60 days after substantial completion. For purposes of this subdivision, "substantial 
48.18 	completion" shall be determined as provided in section 541.051, subdivision 1, paragraph 
48.19 	(a).
48.20 	(c)(d) Any contractor holding retainage must reduce that retainage at the same rate 
48.21 	reduced by the owner or the owner's agent. A contractor must pay out any remaining retainage 
48.22 	no later than ten days after receiving payment of retainage, unless there is a dispute about 
48.23 	the work under a subcontract, in which case the contractor must pay out retainage to any 
48.24 	party whose work is not involved in the dispute. Nothing in this subdivision is intended to 
48.25 	require that retainage be withheld in any building or construction contract.
48.26 	(e) After substantial completion, an owner or owner's agent may withhold no more than:
48.27 	(1) 250 percent of the value of incomplete or defective work; and
48.28 	(2) one percent of the value of the contract or $500, whichever is greater, pending 
48.29 	completion and submission of all final paperwork by the contractor, provided that an amount 
48.30 	withheld under this clause may not exceed $10,000.
48.31 	If the owner or the owner's agent withholds payment under this paragraph, the owner or the 
48.32 	owner's agent must promptly provide a written statement detailing the amount and basis of 
48.33 	withholding to the contractor. The owner or the owner's agent and the contractor must 
49.1 	provide a copy of this statement to any subcontractor that requests it. Any amounts withheld 
49.2 	for incomplete or defective work shall be paid within 45 days after the completion of the 
49.3 	work. Any amounts withheld under clause (1) must be paid within 45 days after completion 
49.4 	of the work. Any amounts withheld under clause (2) must be paid within 45 days after 
49.5 	submission of all final paperwork.
49.6 	(f) The maximum retainage percentage allowed for a building and construction contract 
49.7 	is the retainage percentage withheld by the owner from the contractor.
49.8 	(g) Withholding retainage for warranties or warranty work is prohibited.
49.9 	(h) Retainage must not be used as collateral for the owner, owner's agent, or contractor.
49.10 	(i) This subdivision does not apply to a public agency as defined in section 15.71, 
49.11 	subdivision 3.
49.12 	(j) This subdivision does not apply to contracts for professional services as defined in 
49.13 	sections 326.02 to 326.15.

49.14 	EFFECTIVE DATE. This section applies to agreements entered into on or after August 
49.15 	1, 2019.

49.16 	Sec. 6. Minnesota Statutes 2018, section 341.30, subdivision 1, is amended to read:
49.17 		Subdivision 1.Licensure; individuals. All referees, judges, promoters, trainers, ring 
49.18 	announcers, timekeepers, ringside physicians, combatants, managers, and seconds are 
49.19 	required to be licensed by the commissioner. The commissioner shall not permit any of 
49.20 	these persons to participate in any matter with any combative sport contest unless the 
49.21 	commissioner has first issued the person a license.

49.22 	Sec. 7. Minnesota Statutes 2018, section 341.32, subdivision 1, is amended to read:
49.23 		Subdivision 1.Annual licensure. The commissioner may establish and issue annual 
49.24 	licenses subject to the collection of advance fees by the commissioner for promoters, 
49.25 	managers, judges, referees, ring announcers, ringside physicians, timekeepers, combatants, 
49.26 	trainers, and seconds.

49.27 	Sec. 8. Minnesota Statutes 2018, section 341.321, is amended to read:
49.28 	341.321 FEE SCHEDULE.
49.29 	(a) The fee schedule for professional and amateur licenses issued by the commissioner 
49.30 	is as follows:
50.1 	(1) referees, $80 $25;
50.2 	(2) promoters, $700;
50.3 	(3) judges and knockdown judges, $80 $25;
50.4 	(4) trainers and seconds, $80;
50.5 	(5) ring announcers, $80;
50.6 	(6) (5) timekeepers, $80 $25;
50.7 	(7) (6) professional combatants, $70;
50.8 	(8) (7) amateur combatants, $50;
50.9 	(9) managers, $80; and
50.10 	(10) (8) ringside physicians, $80 $25.
50.11 	License fees for promoters are due at least six weeks prior to the combative sport contest. 
50.12 	All other license fees shall be paid no later than the weigh-in prior to the contest. No license 
50.13 	may be issued until all prelicensure requirements are satisfied and fees are paid.
50.14 	(b) The commissioner shall establish a contest fee for each combative sport contest and 
50.15 	shall consider the size and type of venue when establishing a contest fee. The combative 
50.16 	sport contest fee is $1,500 per event or not more than four percent of the gross ticket sales, 
50.17 	whichever is greater, as determined by the commissioner when the combative sport contest 
50.18 	is scheduled.
50.19 	(c) A professional or amateur combative sport contest fee is nonrefundable and shall be 
50.20 	paid as follows:
50.21 	(1) $500 at the time the combative sport contest is scheduled; and
50.22 	(2) $1,000 at the weigh-in prior to the contest.
50.23 	If four percent of the gross ticket sales is greater than $1,500, the balance is due to the 
50.24 	commissioner within seven days of the completed contest.
50.25 	(d) The commissioner may establish the maximum number of complimentary tickets 
50.26 	allowed for each event by rule.
50.27 	(e) All fees and penalties collected by the commissioner must be deposited in the 
50.28 	commissioner account in the special revenue fund.

51.1 	Sec. 9. CONTRACTOR RECOVERY FUND; CONSUMER AWARENESS 
51.2 	CAMPAIGN.
 51.3 	In fiscal years 2020 and 2021 the commissioner of labor and industry must conduct a 
51.4 	statewide consumer awareness campaign highlighting the importance of hiring licensed 
51.5 	contractors as well as the consequences of hiring unlicensed contractors, and may spend up 
51.6 	to $500,000 each year from the contractor recovery fund to conduct the campaign.

51.7 	ARTICLE 4
51.8 	EMPLOYMENT POLICY

51.9 	Section 1. Minnesota Statutes 2018, section 177.23, subdivision 7, is amended to read:
51.10 		Subd. 7.Employee. "Employee" means any individual employed by an employer but 
51.11 	does not include:
51.12 	(1) two or fewer specified individuals employed at any given time in agriculture on a 
51.13 	farming unit or operation who are paid a salary;
51.14 	(2) any individual employed in agriculture on a farming unit or operation who is paid a 
51.15 	salary greater than the individual would be paid if the individual worked 48 hours at the 
51.16 	state minimum wage plus 17 hours at 1-1/2 times the state minimum wage per week;
51.17 	(3) an individual under 18 who is employed in agriculture on a farm to perform services 
51.18 	other than corn detasseling or hand field work when one or both of that minor hand field 
51.19 	worker's parents or physical custodians are also hand field workers;
51.20 	(4) for purposes of section 177.24, an individual under 18 who is employed as a corn 
51.21 	detasseler;
51.22 	(5) any staff member employed on a seasonal basis by an organization for work in an 
51.23 	organized resident or day camp operating under a permit issued under section 144.72;
51.24 	(6) any individual employed in a bona fide executive, administrative, or professional 
51.25 	capacity, or a salesperson who conducts no more than 20 percent of sales on the premises 
51.26 	of the employer;
51.27 	(7) any individual who renders service gratuitously for a nonprofit organization;
51.28 	(8) any individual who serves as an elected official for a political subdivision or who 
51.29 	serves on any governmental board, commission, committee or other similar body, or who 
51.30 	renders service gratuitously for a political subdivision;
52.1 	(9) any individual employed by a political subdivision to provide police or fire protection 
52.2 	services or employed by an entity whose principal purpose is to provide police or fire 
52.3 	protection services to a political subdivision;
52.4 	(10) any individual employed by a political subdivision who is ineligible for membership 
52.5 	in the Public Employees Retirement Association under section 353.01, subdivision 2b, 
52.6 	clause (1), (2), (4), or (9), item (i);
52.7 	(11) any driver employed by an employer engaged in the business of operating taxicabs;
52.8 	(12) any individual engaged in babysitting as a sole practitioner;
52.9 	(13) for the purpose of section 177.25, any individual employed on a seasonal basis in 
52.10 	a carnival, circus, fair, or ski facility;
52.11 	(14) any individual under 18 working less than 20 hours per workweek for a municipality 
52.12 	as part of a recreational program;
52.13 	(15) any individual employed by the state as a natural resource manager 1, 2, or 3 
52.14 	(conservation officer);
52.15 	(16) any individual in a position for which the United States Department of Transportation 
52.16 	has power to establish qualifications and maximum hours of service under United States 
52.17 	Code, title 49, section 31502;
52.18 	(17) any individual employed as a seafarer. The term "seafarer" means a master of a 
52.19 	vessel or any person subject to the authority, direction, and control of the master who is 
52.20 	exempt from federal overtime standards under United States Code, title 29, section 213(b)(6), 
52.21 	including but not limited to pilots, sailors, engineers, radio operators, firefighters, security 
52.22 	guards, pursers, surgeons, cooks, and stewards;
52.23 	(18) any individual employed by a county in a single-family residence owned by a county 
52.24 	home school as authorized under section 260B.060 if the residence is an extension facility 
52.25 	of that county home school, and if the individual as part of the employment duties resides 
52.26 	at the residence for the purpose of supervising children as defined by section 260C.007, 
52.27 	subdivision 4; or
52.28 	(19) nuns, monks, priests, lay brothers, lay sisters, ministers, deacons, and other members 
52.29 	of religious orders who serve pursuant to their religious obligations in schools, hospitals, 
52.30 	and other nonprofit institutions operated by the church or religious order; or
52.31 	(20) any individual employed on a seasonal basis who has entered into a contract to play 
52.32 	baseball at the minor league level.

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

53.2 	Sec. 2. Minnesota Statutes 2018, section 177.27, subdivision 1, is amended to read:
53.3 		Subdivision 1.Examination of records. The commissioner may enter during reasonable 
53.4 	office hours or upon request and inspect the place of business or employment of any employer 
53.5 	of employees working in the state, to examine and inspect books, registers, payrolls, and 
53.6 	other records of any employer that in any way relate to wages, hours, and other conditions 
53.7 	of employment of any employees. The commissioner may transcribe any or all of the books, 
53.8 	registers, payrolls, and other records as the commissioner deems necessary or appropriate 
53.9 	and may question the employees to ascertain compliance with sections 177.21 to 177.435. 
53.10 	The commissioner may investigate wage claims or complaints by an employee against an 
53.11 	employer if: (1) the failure to pay a wage may violate Minnesota law or an order or rule of 
53.12 	the department; and (2) the employee making the wage claim or complaint has provided a 
53.13 	written demand for payment to the employer at least five days prior to the commissioner 
53.14 	initiating an investigation.

53.15 	Sec. 3. Minnesota Statutes 2018, section 177.32, subdivision 1, is amended to read:
53.16 		Subdivision 1.Misdemeanors. (a) An employer who does any of the following is guilty 
53.17 	of a misdemeanor:
53.18 	(1) hinders or delays the commissioner in the performance of duties required under 
53.19 	sections 177.21 to 177.435, or sections 181.01 to 181.72;
53.20 	(2) refuses to admit the commissioner to the place of business or employment of the 
53.21 	employer, as required by section 177.27, subdivision 1;
53.22 	(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;
53.23 	(4) falsifies any record;
53.24 	(5) refuses to make any record available, or to furnish a sworn statement of the record 
53.25 	or any other information as required by section 177.27;
53.26 	(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary 
53.27 	of the applicable rules as required by section 177.31;
53.28 	(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21
53.29 	to 177.44;
53.30 	(8) refuses to allow adequate time from work as required by section 177.253; or
53.31 	(9) otherwise violates any provision of sections 177.21 to 177.44; or
54.1 	(10) commits wage theft as described in section 181.03, subdivision 1.
54.2 	(b) An employer who violates paragraph (a), clause (10), after having been previously 
54.3 	convicted of violating that clause is guilty of a gross misdemeanor.
54.4 	(c) Nothing in paragraph (a), clause (10), or paragraph (b), or section 609.035 or 609.04 
54.5 	shall limit the power of the state to prosecute or punish a person for conduct that constitutes 
54.6 	any other crime under any other law of this state.

54.7 	EFFECTIVE DATE. This section is effective August 1, 2019, and applies to crimes 
54.8 	committed on or after that date.

54.9 	Sec. 4. Minnesota Statutes 2018, section 181.03, subdivision 1, is amended to read:
54.10 		Subdivision 1.Prohibited practices. An employer may not, directly or indirectly and 
54.11 	with intent to defraud:
54.12 	(a) No employer shall commit wage theft.
54.13 	(b) For purposes of this section, wage theft is committed if an employer, with intent to 
54.14 	defraud:
54.15 	(1) fails to pay an employee all wages to which that employee is entitled;
54.16 	(1) cause (2) directly or indirectly causes any employee to give a receipt for wages for 
54.17 	a greater amount than that actually paid to the employee for services rendered;
54.18 	(2) (3) directly or indirectly demand demands or receive receives from any employee 
54.19 	any rebate or refund from the wages owed the employee under contract of employment with 
54.20 	the employer; or
54.21 	(3) in any manner make (4) makes or attempt attempts to make it appear in any manner 
54.22 	that the wages paid to any employee were greater than the amount actually paid to the 
54.23 	employee.; or
54.24 	(5) retaliates against an employee for asserting rights or remedies under this section, 
54.25 	including but not limited to filing a complaint with the Department of Labor and Industry, 
54.26 	telling the employer of intention to file a complaint, or making a written demand for payment 
54.27 	to the employer as provided under section 177.27, subdivision 1.

55.1 	Sec. 5. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to 
55.2 	read:
55.3 		Subd. 4.Enforcement. The commissioner may enforce this section. The use of an 
55.4 	enforcement provision in this section shall not preclude the use of any other enforcement 
55.5 	provision provided by law.

55.6 	Sec. 6. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to 
55.7 	read:
55.8 		Subd. 5.Effect on other laws. Nothing in this section shall be construed to limit the 
55.9 	application of other state or federal laws.

55.10 	Sec. 7. [181.741] EXPRESS PREEMPTION; UNIFORMITY OF PRIVATE 
55.11 	EMPLOYER MANDATES.
55.12 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
55.13 	subdivision have the meanings given them.
55.14 	(b) "Employer" means a private person employing one or more employees in the state.
55.15 	(c) "Local government" means a home rule charter city, statutory city, town, county, the 
55.16 	Metropolitan Council, a metropolitan agency as defined in section 473.121, subdivision 5a, 
55.17 	or a special district.
55.18 		Subd. 2.Express preemption. (a) A local government must not adopt, enforce, or 
55.19 	administer an ordinance, local resolution, or local policy requiring an employer to pay an 
55.20 	employee a wage higher than the applicable state minimum wage rate provided in section 
55.21 	177.24.
55.22 	(b) A local government must not adopt, enforce, or administer an ordinance, local 
55.23 	resolution, or local policy requiring an employer to provide either paid or unpaid leave time.
55.24 	(c) A local government must not adopt, enforce, or administer an ordinance, local 
55.25 	resolution, or local policy regulating the hours or scheduling of work time that an employer 
55.26 	provides to an employee. This paragraph does not preempt an ordinance, local resolution, 
55.27 	or local policy limiting the hours a business may operate.
55.28 	(d) A local government must not adopt, enforce, or administer an ordinance, local 
55.29 	resolution, or local policy requiring an employer to provide an employee a particular benefit 
55.30 	or terms of employment.
56.1 		Subd. 3.Local governments as employers and contractors. This section does not 
56.2 	regulate wages, hours, benefits, paid or unpaid leave, attendance policies, or other terms of 
56.3 	employment that a local government:
56.4 	(1) provides to its own employee;
56.5 	(2) requires an employer to provide to its employee to the extent that employer is 
56.6 	providing goods or services to the local government, and the requirement applies specifically 
56.7 	to work performed in providing goods or services to the local government; or
56.8 	(3) requires an employer to provide to its employee, to the extent that employer is 
56.9 	receiving funding from the local government or is providing goods or services funded in 
56.10 	whole or in part by the local government, when the requirement is an express condition of 
56.11 	the funding.

56.12 	EFFECTIVE DATE. This section is effective upon final enactment and applies to 
56.13 	ordinances, local policies, and local resolutions enacted on or after January 1, 2017.

56.14 	ARTICLE 5
56.15 	WORKERS' COMPENSATION ADVISORY COUNCIL RECOMMENDATIONS

56.16 	Section 1. Minnesota Statutes 2018, section 176.1812, subdivision 2, is amended to read:
56.17 		Subd. 2.Filing and review. (a) A copy of the agreement and the approximate number 
56.18 	of employees who will be covered under it must be filed with the commissioner. Within 21 
56.19 	days of receipt of an agreement, the commissioner shall review the agreement for compliance 
56.20 	with this section and the benefit provisions of this chapter and notify the parties of any 
56.21 	additional information required or any recommended modification that would bring the 
56.22 	agreement into compliance. Upon receipt of any requested information or modification, the 
56.23 	commissioner must notify the parties within 21 days whether the agreement is in compliance 
56.24 	with this section and the benefit provisions of this chapter.
56.25 	(b) After an agreement is approved by the commissioner under paragraph (a), a qualified 
56.26 	employer may join or withdraw from a qualified group of employers without commissioner 
56.27 	review or approval. The commissioner must be notified within 30 days when a qualified 
56.28 	employer joins or withdraws from a qualified group of employers.
56.29 	(c) In order for any agreement to remain in effect, it must provide for a timely and 
56.30 	accurate method of reporting to the commissioner necessary information regarding service 
56.31 	cost and utilization the individual claims covered by the agreement and claim-specific 
56.32 	dispute resolution data, in the form and manner prescribed by the commissioner. Dispute 
57.1 	resolution data includes information about facilitation, mediation, and arbitration and shall 
57.2 	be provided annually to the commissioner to enable the commissioner to annually report 
57.3 	aggregate dispute data to the legislature. The information provided to the commissioner 
57.4 	must include aggregate data on the:
57.5 	(i) person hours and payroll covered by agreements filed;
57.6 	(ii) number of claims filed;
57.7 	(iii) average cost per claim;
57.8 	(iv) number of litigated claims, including the number of claims submitted to arbitration, 
57.9 	the Workers' Compensation Court of Appeals, the Office of Administrative Hearings, the 
57.10 	district court, the Minnesota Court of Appeals or the supreme court;
57.11 	(v) number of contested claims resolved prior to arbitration;
57.12 	(vi) projected incurred costs and actual costs of claims;
57.13 	(vii) employer's safety history;
57.14 	(viii) number of workers participating in vocational rehabilitation; and
57.15 	(ix) number of workers participating in light-duty programs.

57.16 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective June 1, 2019. Paragraph (c) 
57.17 	is effective August 1, 2020.

57.18 	Sec. 2. Minnesota Statutes 2018, section 176.231, subdivision 1, is amended to read:
57.19 		Subdivision 1.Time limitation. (a) Where death or serious injury occurs to an employee 
57.20 	during the course of employment, the employer shall report the injury or death to the 
57.21 	commissioner and insurer within 48 hours after its occurrence. Where any other injury 
57.22 	occurs which wholly or partly incapacitates the employee from performing labor or service 
57.23 	for more than three calendar days, the employer shall report the injury to the insurer on a 
57.24 	form prescribed by the commissioner within ten days from its occurrence. An insurer and 
57.25 	self-insured employer shall report the injury to the commissioner no later than 14 days from 
57.26 	its occurrence. Where an injury has once been reported but subsequently death ensues, the 
57.27 	employer shall report the death to the commissioner and insurer within 48 hours after the 
57.28 	employer receives notice of this fact. An employer who provides notice to the Occupational 
57.29 	Safety and Health Division of the Department of Labor and Industry of a fatality within the 
57.30 	eight-hour time frame required by law, or of an inpatient hospitalization within the 24-hour 
57.31 	time frame required by law, has satisfied the employer's obligation under this section.
58.1 	(b) At the time an injury is required to be reported to the commissioner, the insurer or 
58.2 	self-insured employer must also specify whether the injury is covered by a collective 
58.3 	bargaining agreement approved by the commissioner under section 176.1812. Notice must 
58.4 	be provided in the format and manner prescribed by the commissioner.

58.5 	EFFECTIVE DATE. This section is effective August 1, 2020.

58.6 	ARTICLE 6
58.7 	COMMERCE

58.8 	Section 1. Minnesota Statutes 2018, section 46.131, subdivision 11, is amended to read:
58.9 		Subd. 11.Financial institutions account; appropriation. (a) The financial institutions 
58.10 	account is created as a separate account in the special revenue fund. The account consists 
58.11 	of funds received from assessments under subdivision 7, examination fees under subdivision 
58.12 	8, and license and renewal fees under section 216C.437, subdivision 12. Earnings, including 
58.13 	interest, dividends, and any other earnings arising from account assets, must be credited to 
58.14 	the account.
58.15 	(b) The account consists of funds received from assessments under subdivision 7, 
58.16 	examination fees under subdivision 8, and funds received pursuant to subdivision 10 and 
58.17 	the following provisions: sections 53B.09; 53B.11, subdivision 1; and 58A.045, subdivision 
58.18 	2.
58.19 	(b) (c) Funds in the account are annually appropriated to the commissioner of commerce 
58.20 	for activities under this section.

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

58.22 	Sec. 2. Minnesota Statutes 2018, section 46.131, is amended by adding a subdivision to 
58.23 	read:
58.24 		Subd. 12.Limitations on assessments. The sum of the assessments levied under 
58.25 	subdivision 7 for a fiscal period beginning on July 1 and ending June 30 thereafter shall not 
58.26 	exceed 100 percent of the sum of the assessments levied for the fiscal period beginning one 
58.27 	year prior.

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

59.1 	ARTICLE 7
59.2 	REAL ESTATE APPRAISER REGULATION

59.3 	Section 1. Minnesota Statutes 2018, section 82B.021, subdivision 14, is amended to read:
59.4 		Subd. 14.Federal Appraisal Subcommittee. "Federal Appraisal Subcommittee" means 
59.5 	the appraisal subcommittee of the Federal Financial Institutions Examinations Council under 
59.6 	United States Code, title 12, section 3301 et seq.

59.7 	Sec. 2. Minnesota Statutes 2018, section 82B.021, subdivision 15, is amended to read:
59.8 		Subd. 15.Federal financial institutions regulatory agency. "Federal financial 
59.9 	institutions regulatory agency" means the Board of Governors of the Federal Reserve System,
59.10 	Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the 
59.11 	Office of the Comptroller of the Currency, the Office of Thrift Supervision, or the National 
59.12 	Credit Union Administration.

59.13 	Sec. 3. Minnesota Statutes 2018, section 82B.073, is amended by adding a subdivision to 
59.14 	read:
59.15 		Subd. 2a.Compensation. Members of the board must be compensated in accordance 
59.16 	with section 15.059.

59.17 	Sec. 4. Minnesota Statutes 2018, section 82B.09, subdivision 3, is amended to read:
59.18 		Subd. 3.Fees to Federal Appraisal Subcommittee. In addition to the fees required for 
59.19 	licensure under this section, the commissioner must collect and remit such other fees as are 
59.20 	required by the Federal Appraisal Subcommittee.

59.21 	Sec. 5. Minnesota Statutes 2018, section 82B.095, is amended by adding a subdivision to 
59.22 	read:
59.23 		Subd. 3.Conformance to Appraisal Qualifications Board criteria. (a) The 
59.24 	requirements to obtain a trainee real property appraiser, licensed real property appraiser, 
59.25 	certified residential real property appraiser, or certified general real property appraiser 
59.26 	license are the education, examination, and experience requirements established by the 
59.27 	Appraiser Qualifications Board of the Appraisal Foundation and published in the most 
59.28 	recent version of the Real Property Appraiser Qualification Criteria.
59.29 	(b) An applicant must complete the applicable education and experience requirements 
59.30 	before taking the required examination.

60.1 	Sec. 6. Minnesota Statutes 2018, section 82B.11, is amended by adding a subdivision to 
60.2 	read:
60.3 		Subd. 2a.Trainee real property appraiser. The scope of practice for a trainee real 
60.4 	property appraiser is the appraisal of properties which a certified residential real property 
60.5 	appraiser or certified general real property appraiser acting as the supervisory appraiser is 
60.6 	permitted and competent to appraise.

60.7 	Sec. 7. Minnesota Statutes 2018, section 82B.11, subdivision 6, is amended to read:
60.8 		Subd. 6.Temporary practice. (a) The commissioner shall issue a license for temporary 
60.9 	practice as a real estate appraiser under subdivision 3, 4, or 5 to a person certified or licensed 
60.10 	by another state if:
60.11 	(1) the property to be appraised is part of a federally related transaction and the person 
60.12 	is licensed to appraise property limited to the same transaction value or complexity provided 
60.13 	in subdivision 3, 4, or 5;
60.14 	(2) (1) the appraiser's business is of a temporary nature; and
60.15 	(3) (2) the appraiser registers with the commissioner to obtain a temporary license before 
60.16 	conducting appraisals within the state.
60.17 	(b) The term of a temporary practice license is the lesser of:
60.18 	(1) the time required to complete the assignment; or
60.19 	(2) 12 months.
60.20 	If more than 12 months are necessary to complete the assignment, a new temporary 
60.21 	application and fee is required.

60.22 	Sec. 8. Minnesota Statutes 2018, section 82B.13, subdivision 1, is amended to read:
60.23 		Subdivision 1.Trainee real property appraiser. (a) As a prerequisite for licensing as 
60.24 	a trainee real property appraiser, an applicant must present evidence satisfactory to the 
60.25 	commissioner that the person has successfully completed:
60.26 	(1) at least 75 hours of prelicense courses approved by the commissioner. Fifteen of the 
60.27 	75 hours must include successful completion of the 15-hour national USPAP course; and
60.28 	(2) in addition to the required hours under clause (1), a six-hour course that is specifically 
60.29 	oriented to the requirements and responsibilities of supervisory appraisers and trainee 
60.30 	appraisers. A course approved by the commissioner for the purposes of this subdivision 
61.1 	must be given the course title "Minnesota Supervisor/Trainee Appraiser Course." This 
61.2 	course must not be counted toward qualifying education to upgrade to a higher level appraiser 
61.3 	license.
61.4 	(b) All qualifying education must be completed within the five-year period prior to the 
61.5 	date of submission of a trainee real property appraiser license application.

61.6 	Sec. 9. Minnesota Statutes 2018, section 82B.195, subdivision 2, is amended to read:
61.7 		Subd. 2.Disclosure requirements. In addition to the requirements of the standards of 
61.8 	professional appraisal practice as defined by section 82B.021, subdivision 31, an appraiser 
61.9 	must, prior to performing any appraisal service which requires licensing pursuant to this 
61.10 	chapter, disclose in writing to the person contracting for the appraisal service the information 
61.11 	identified in clause (4). In addition, an appraiser must prepare a written disclosure providing 
61.12 	the information identified in clauses (1) to (13). The written disclosure must be included as 
61.13 	part of the final written appraisal report. As specified in this subdivision, an appraiser must:
61.14 	(1) disclose who has employed the appraiser;
61.15 	(2) disclose who the appraisal is rendered for, if not the person who employed the 
61.16 	appraiser;
61.17 	(3) disclose the purpose of the appraisal, including an explanation of the difference 
61.18 	between the appraisal being given and an appraisal of fee simple market valuation;
61.19 	(4) disclose any conflict of interest or situation which might reasonably be perceived to 
61.20 	be a conflict of interest which must include, but not be limited to, the following situations:
61.21 	(i) whether the appraiser has any ownership interest in the subject property or contiguous 
61.22 	properties;
61.23 	(ii) whether there is an ownership interest by a spouse, parent, or child of the appraiser 
61.24 	in the property or contiguous properties; and
61.25 	(iii) whether the appraiser has a continuing business relationship with one of the parties, 
61.26 	for example, any part-time or full-time employment of the appraiser, spouse, children living 
61.27 	at home, or dependent children.
61.28 	Failure to promptly give notification of a conflict must be considered a violation of the 
61.29 	standards of professional appraisal practice;
61.30 	(5) disclose that the appraisal is a reevaluation and identify the areas of difference 
61.31 	between the two appraisals and the justification for the changes;
62.1 	(6) disclose any facts concerning the valuation needed for loan purposes or similar 
62.2 	information that was provided to the appraiser before or during the appraisal;
62.3 	(7) disclose that the appraiser has not performed appraisals of the type requested or for 
62.4 	the type of property to be appraised as a regular part of the appraiser's business in the 
62.5 	preceding five-year period, provided that if the appraiser asserts qualification by training 
62.6 	or related experience to perform the appraisal, the appraiser must set forth the training or 
62.7 	experience and how it is applicable to the appraisal;
62.8 	(8) disclose the license classification of the appraiser and the types of appraisals that the 
62.9 	appraiser is authorized to conduct under the licensure;
62.10 	(9) disclose any lack of experience or training that would affect the ability of the appraiser 
62.11 	to perform the appraisal or could cause rejection of the appraisal by the party requiring the 
62.12 	appraisal;
62.13 	(10) disclose any appraisal on the same property made by the appraiser in the last three 
62.14 	years;
62.15 	(11) disclose all pertinent assumptions upon which a valuation based upon income from 
62.16 	the property is derived such as expected occupancy rates, rental rates, construction of future 
62.17 	improvements, roads, or highways; and
62.18 	(12) prior to performing the appraisal, disclose whether the appraiser has previously 
62.19 	been to the property; and
62.20 	(13) disclose any other fact or circumstance that could bring the reliability of the appraisal 
62.21 	or the impartiality of the appraiser into question.

62.22 	Sec. 10. Minnesota Statutes 2018, section 82B.21, is amended to read:
62.23 	82B.21 CLASSIFICATION OF SERVICES.
62.24 	A client or employer may retain or employ a licensed real estate appraiser to act as a 
62.25 	disinterested third party in giving an unbiased estimate of value or analysis; to provide a 
62.26 	market analysis to facilitate the client's or employer's objectives; or to perform a limited 
62.27 	appraisal. The appraisal and the appraisal report must comply with the provisions of this 
62.28 	chapter and the uniform standards of professional appraisal practice.

63.1 	Sec. 11. REPEALER.
 63.2 	Minnesota Statutes 2018, sections 82B.021, subdivision 17; 82B.095, subdivision 2; 
63.3 	82B.10, subdivisions 1, 2, 3, 4, 5, 6, 8, and 9; 82B.11, subdivision 2; 82B.12; 82B.13, 
63.4 	subdivisions 1a, 3, 4, 5, 6, 7, and 8; 82B.14; and 82B.195, subdivision 3, are repealed.

63.5 	Sec. 12. EFFECTIVE DATE.
 63.6 	Sections 1 to 11 are effective January 1, 2020.

63.7 	ARTICLE 8
63.8 	ENERGY POLICY

63.9 	Section 1. Minnesota Statutes 2018, section 116C.7792, is amended to read:
63.10 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
63.11 	The utility subject to section 116C.779 shall operate a program to provide solar energy 
63.12 	production incentives for solar energy systems of no more than a total aggregate nameplate 
63.13 	capacity of 40 kilowatts directalternating current per premise. The owner of a solar energy 
63.14 	system installed before June 1, 2018, is eligible to receive a production incentive under this 
63.15 	section for any additional solar energy systems constructed at the same customer location, 
63.16 	provided that the aggregate capacity of all systems at the customer location does not exceed 
63.17 	40 kilowatts. The program shall be operated for eight consecutive calendar years commencing 
63.18 	in 2014. $5,000,000 shall be allocated in each of the first four years, $15,000,000 in the 
63.19 	fifth year, $10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth 
63.20 	year from funds withheld from transfer to the renewable development account under section 
63.21 	116C.779, subdivision 1, paragraphs (b) and (e), and placed in a separate account for the 
63.22 	purpose of the solar production incentive program operated by the utility and not for any 
63.23 	other program or purpose. Any unspent amount allocated in the fifth year is available until 
63.24 	December 31 of the sixth year. Any unspent amount remaining at the end of any other 
63.25 	allocation year must be transferred to the renewable development account. The solar system 
63.26 	must be sized to less than 120 percent of the customer's on-site annual energy consumption 
63.27 	when combined with other distributed generation resources and subscriptions provided 
63.28 	under section 216B.1641 associated with the premise. The production incentive must be 
63.29 	paid for ten years commencing with the commissioning of the system. The utility must file 
63.30 	a plan to operate the program with the commissioner of commerce. The utility may not 
63.31 	operate the program until it is approved by the commissioner. A change to the program to 
63.32 	include projects up to a nameplate capacity of 40 kilowatts or less does not require the utility 
63.33 	to file a plan with the commissioner. Any plan approved by the commissioner of commerce 
64.1 	must not provide an increased incentive scale over prior years unless the commissioner 
64.2 	demonstrates that changes in the market for solar energy facilities require an increase.

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

64.4 	Sec. 2. Minnesota Statutes 2018, section 216B.1641, is amended to read:
64.5 	216B.1641 COMMUNITY SOLAR GARDEN.
64.6 	(a) The public utility subject to section 116C.779 shall file by September 30, 2013 2019, 
64.7 	a plan with the commission to operate a community solar garden program which shall begin 
64.8 	operations within 90 days after commission approval of the plan. Upon approval of the 
64.9 	program required under this section, a program approved under this section before September 
64.10 	30, 2019, must cease operations, except that a community solar garden for which an 
64.11 	application is deemed complete under a prior program may continue to operate under that 
64.12 	program. Other public utilities may file an application at their election. The community 
64.13 	solar garden program must be designed to offset the energy use of not less than five 
64.14 	subscribers in each community solar garden facility of which no single subscriber has more 
64.15 	than a 40 percent interest. The owner of the community solar garden may be a public utility 
64.16 	or any other entity or organization that contracts to sell the output from the community solar 
64.17 	garden to the utility under section 216B.164. There shall be no limitation on the number or 
64.18 	cumulative generating capacity of community solar garden facilities other than the limitations 
64.19 	imposed under section 216B.164, subdivision 4c, or other limitations provided in law or 
64.20 	regulations.  The public utility must accept qualified proposals for community solar gardens 
64.21 	each year in a form and on a schedule specified in the program approved by the commission. 
64.22 	The public utility subject to this section may submit qualified proposals to the program.
64.23 	(b) The public utility must submit evaluations of all qualified proposals to the 
64.24 	commission, along with recommendations regarding which qualified proposals should be 
64.25 	accepted. The commission must select the qualified proposals the public utility must accept. 
64.26 	The qualified proposals with the lowest cost to the public utility's customers must be selected. 
64.27 	The total nameplate capacity of qualified proposals selected by the commission must not 
64.28 	exceed 25 megawatts per year.
64.29 	(c) A solar garden is a facility that generates electricity by means of a ground-mounted 
64.30 	or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the 
64.31 	electricity generated in proportion to the size of their subscription. The solar garden must 
64.32 	have a nameplate capacity of no more than one megawatt. When determining the size of a 
64.33 	community solar garden under this paragraph, the nameplate capacity of the community 
65.1 	solar garden must be combined with the nameplate capacity of any other community solar 
65.2 	garden that:
65.3 	(1) is constructed within the same 12-month period as the community solar garden; and
65.4 	(2) exhibits characteristics indicating a single development with the community solar 
65.5 	garden, including but not limited to ownership structure, shared interconnection, revenue 
65.6 	sharing arrangements, and common debt or equity financing.
65.7 	Each subscription shall be sized to represent at least 200 watts of the community solar 
65.8 	garden's generating capacity and to supply, when combined with other distributed generation 
65.9 	resources serving the premises, no more than 120 percent of the average annual consumption 
65.10 	of electricity by each subscriber at the premises to which the subscription is attributed.
65.11 	(c)(d) The solar generation facility must be located in the service territory of the public 
65.12 	utility filing the plan. Subscribers must be retail customers of the public utility located in 
65.13 	the same county or a county contiguous to where the facility is located.
65.14 	(d)(e) The public utility must purchase from the community solar garden all energy 
65.15 	generated by the community solar garden. The purchase shall be at the rate calculated under 
65.16 	section 216B.164, subdivision 10, or, until that rate for the public utility has been approved 
65.17 	by the commission, the applicable retail rate. A solar garden is eligible for any incentive 
65.18 	programs offered under either section 116C.7792 or section 216C.415  proposed in the 
65.19 	qualified proposal submitted under paragraph (a). A subscriber's portion of the purchase 
65.20 	shall be provided by a credit on the subscriber's bill.  Notwithstanding any other provision 
65.21 	of law, the commission must not increase the rate paid for energy from the community solar 
65.22 	garden from the amount contained in the proposal.
65.23 	(e)(f) The commission may approve, disapprove, or modify a community solar garden 
65.24 	program. Any plan approved by the commission must:
65.25 	(1) reasonably allow for the creation, financing, and accessibility of community solar 
65.26 	gardens;
65.27 	(2) establish uniform standards, fees, and processes for the interconnection of community 
65.28 	solar garden facilities that allow the public utility to recover reasonable interconnection 
65.29 	costs for each community solar garden;
65.30 	(3) not apply different requirements to utility and nonutility community solar garden 
65.31 	facilities;
65.32 	(4) be consistent with the public interest;
66.1 	(5) identify the information that must be provided to potential subscribers to ensure fair 
66.2 	disclosure of future costs and benefits of subscriptions;
66.3 	(6) include a program implementation schedule;
66.4 	(7) identify all proposed rules, fees, and charges; and
66.5 	(8) identify the means by which the program will be promoted.;
66.6 	(9) certify that the following information is contained in any promotional materials 
66.7 	developed by the solar garden owner or the utility purchasing the solar garden's generation 
66.8 	and is provided separately in writing to prospective subscribers at least 15 days prior to the 
66.9 	date a contract is entered into by the subscriber and the community solar garden owner:
66.10 	(i) an estimate of the annual generation of electricity by the community solar garden, 
66.11 	calculated using the formula developed by the commission under paragraph (l);
66.12 	(ii) an estimate of the length of time required to fully recover a subscriber's initial 
66.13 	lump-sum payments made to the owner of the solar garden prior to the delivery of electricity 
66.14 	to the subscriber by the solar garden, calculated using the formula developed by the 
66.15 	commission under paragraph (l); and
66.16 	(iii) a commission-approved, standardized method for calculating the effect of future 
66.17 	electricity prices on community solar garden subscriptions based on the average residential 
66.18 	customer electric bill;
66.19 	(10) require a solar garden owner to provide to prospective subscribers a completed 
66.20 	community solar garden subscriber disclosure checklist standard form at least 15 days prior 
66.21 	to the date a contract is entered into by the subscriber and the community solar garden 
66.22 	owner. The disclosure checklist shall include the following statement, in at least 12 point 
66.23 	type "utility rates and other federal, state, or local tax subsidies are subject to change. These 
66.24 	changes cannot be accurately predicted. Projected savings from your solar power subscription 
66.25 	are, therefore, subject to change;
66.26 	(11) certify that the utility and the solar garden owner must submit copies of all marketing 
66.27 	and promotional material and sample contracts to the commission, and that the materials 
66.28 	are updated periodically;
66.29 	(12) certify that the solar garden owner has placed sufficient financial resources into an 
66.30 	escrow account in order to reimburse subscribers for any financial losses incurred if the 
66.31 	project fails to meet the contract provisions;
67.1 	(13) provide a mechanism for subscribers to transfer subscriptions to other new or current 
67.2 	subscribers, or to cancel subscriptions for a full refund;
67.3 	(14) require a solar garden owner and the utility purchasing electricity generated by the 
67.4 	solar garden to forward customer complaints regarding the operation and administration of 
67.5 	the solar garden to the commission;
67.6 	(15) require that the contract between a subscriber and the solar garden owner contains 
67.7 	a warranty for a minimum level of electricity to be delivered to the subscriber from the 
67.8 	community garden; and
67.9 	(16) reflect the commission's determination that:
67.10 	(i) the plan is financially viable; and
67.11 	(ii) the contract between a subscriber and the solar garden owner is fair, reasonable, and 
67.12 	not discriminatory.
67.13 	(f)(g) Notwithstanding any other law, neither the manager of nor the subscribers to a 
67.14 	community solar garden facility shall be considered a utility solely as a result of their 
67.15 	participation in the community solar garden facility.
67.16 	(g)(h) Within 180 days of commission approval of a plan under this section, a public 
67.17 	utility shall begin crediting subscriber accounts for each community solar garden facility 
67.18 	in its service territory, and shall file with the commissioner of commerce a description of 
67.19 	its crediting system.
67.20 	(i) The nonprofit partnership established under section 216C.385, must develop a 
67.21 	community solar garden subscriber disclosure checklist standard form for use under paragraph 
67.22 	(f), clause (10).
67.23 	(j) The commission shall require a community solar garden developer to submit a 
67.24 	registration form. A registration form shall include:
67.25 	(1) the name, street address, mailing address, electronic mail address, and telephone 
67.26 	number of the registrant;
67.27 	(2) the name and contact information of any registered agency or any person designated 
67.28 	by the registrant to receive notices and other communications from the commission;
67.29 	(3) the name, address, and title of each officer or director;
67.30 	(4) if the company is publicly traded, the company's most recent annual report filed with 
67.31 	the United States Securities and Exchange Commission;
68.1 	(5) if the company is not publicly traded, the company's current balance sheet;
68.2 	(6) a statement describing each jurisdiction where the registrant or its affiliate operates; 
68.3 	and
68.4 	(7) any other information required by the commission.
68.5 	The commission may reject an application that does not contain all of the information 
68.6 	required by this paragraph. The commission must approve or deny any application for 
68.7 	registration within 30 days of receiving the application. The commission may suspend or 
68.8 	revoke a registration and impose fees or penalties upon complaint by any interested party 
68.9 	or upon the commission's own motion after notice and opportunity for hearing. A community 
68.10 	solar garden developer registered under this paragraph must cooperate with commission 
68.11 	hearings and proceedings regarding customer complaints. A registered community solar 
68.12 	garden developer shall keep confidential customer-specific or private information relating 
68.13 	to the customer's electricity usage, financial situation, credit history, and other 
68.14 	residence-specific information obtained to implement the subscription contract.
68.15 	(h) (k) For the purposes of this section, the following terms have the meanings given:
68.16 	(1) "subscriber" means a retail customer of a public utility who owns one or more 
68.17 	subscriptions of a community solar garden facility interconnected with that public utility; 
68.18 	and
68.19 	(2) "subscription" means a contract between a subscriber and the owner of a solar garden.; 
68.20 	and
68.21 	(3) "qualified proposal" means a proposal that meets the requirements of the community 
68.22 	solar garden program approved by the commission and that:
68.23 	(i) provides evidence the proposer is able to construct, own, and operate the community 
68.24 	solar garden for its proposed life;
68.25 	(ii) delivers at least 60 percent of the energy generated by the community solar garden 
68.26 	facility to residential customers;
68.27 	(iii) includes a plan to seek low-income residential customers in the community solar 
68.28 	garden;
68.29 	(iv) provides a firm rate that customers of the public utility must pay for energy from 
68.30 	the community solar garden for the life of the community solar garden; and
68.31 	(v) describes any benefits the community solar garden provides to the public utility, the 
68.32 	public utility's customers, the electric utility grid, the environment, and Minnesota.
69.1 	(l) By July 30, 2019, the commission must develop a formula to be used by all solar 
69.2 	garden owners to estimate the annual amount of electricity generated by the solar garden.
69.3 	(m) By July 30, 2019, the commission must develop a formula used by all solar garden 
69.4 	owners to estimate the length of time required to fully recover a subscriber's lump-sum 
69.5 	payments made to the solar garden owner prior to the delivery of electricity to the subscriber 
69.6 	by the solar garden.

69.7 	EFFECTIVE DATE. This section is effective the day following final enactment and 
69.8 	applies to any plan submitted to the commission for approval on or after that date.

69.9 	Sec. 3. Minnesota Statutes 2018, section 216B.1691, subdivision 1, is amended to read:
69.10 		Subdivision 1.Definitions. (a) Unless otherwise specified in law, "eligible energy 
69.11 	technology" means an energy technology that generates electricity from the following 
69.12 	renewable energy sources:
69.13 	(1) solar;
69.14 	(2) wind;
69.15 	(3) hydroelectric with a capacity of less than 100 megawatts;
69.16 	(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from 
69.17 	the resources listed in this paragraph; or
69.18 	(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester 
69.19 	system; the predominantly organic components of wastewater effluent, sludge, or related 
69.20 	by-products from publicly owned treatment works, but not including incineration of 
69.21 	wastewater sludge to produce electricity; and an energy recovery facility used to capture 
69.22 	the heat value of mixed municipal solid waste or refuse-derived fuel from mixed municipal 
69.23 	solid waste as a primary fuel.
69.24 	(b) "Electric utility" means a public utility providing electric service, a generation and 
69.25 	transmission cooperative electric association, a municipal power agency, or a power district.
69.26 	(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by 
69.27 	an electric utility to retail customers of the electric utility or to a distribution utility for 
69.28 	distribution to the retail customers of the distribution utility. "Total retail electric sales" 
69.29 	does not include the sale of hydroelectricity supplied by a federal power marketing 
69.30 	administration or other federal agency, regardless of whether the sales are directly to a 
69.31 	distribution utility or are made to a generation and transmission utility and pooled for further 
69.32 	allocation to a distribution utility.

70.1 	Sec. 4. Minnesota Statutes 2018, section 216B.243, subdivision 3b, is amended to read:
70.2 		Subd. 3b.Nuclear power plant; new construction prohibited; relicensing Additional 
70.3 	storage of spent nuclear fuel. (a) The commission may not issue a certificate of need for 
70.4 	the construction of a new nuclear-powered electric generating plant.
70.5 	(b) Any certificate of need for additional storage of spent nuclear fuel for a facility 
70.6 	seeking a license extension shall address the impacts of continued operations over the period 
70.7 	for which approval is sought.

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

70.9 	Sec. 5. Minnesota Statutes 2018, section 216C.435, subdivision 3a, is amended to read:
70.10 		Subd. 3a.Cost-effective energy improvements. "Cost-effective energy improvements" 
70.11 	mean:
70.12 	(1) any new construction, renovation, or retrofitting of:(i) qualifying commercial real 
70.13 	property to improve energy efficiency that is permanently affixed to the property, results 
70.14 	in a net reduction in energy consumption without altering the principal source of energy, 
70.15 	and has been identified in an energy audit as repaying the purchase and installation costs 
70.16 	in 20 years or less, based on the amount of future energy saved and estimated future energy 
70.17 	prices; or
70.18 	(ii)(2) any renovation or retrofitting of qualifying residential real property that is 
70.19 	permanently affixed to the property and is eligible to receive an incentive through a program 
70.20 	offered by the electric or natural gas utility that provides service under section 216B.241
70.21 	to the property or is otherwise determined to be a cost-effective energy improvement by 
70.22 	the commissioner under section 216B.241, subdivision 1d, paragraph (a);
70.23 	(2)(3) permanent installation of new or upgraded electrical circuits and related equipment 
70.24 	to enable electrical vehicle charging; or
70.25 	(3)(4) a solar voltaic or solar thermal energy system attached to, installed within, or 
70.26 	proximate to a building that generates electrical or thermal energy from a renewable energy 
70.27 	source that has been identified in an energy audit or renewable energy system feasibility 
70.28 	study as repaying their purchase and installation costs in 20 years or less, based on the 
70.29 	amount of future energy saved and estimated future energy prices.

71.1 	Sec. 6. Minnesota Statutes 2018, section 216C.435, subdivision 8, is amended to read:
71.2 		Subd. 8.Qualifying commercial real property. "Qualifying commercial real property" 
71.3 	means a multifamily residential dwelling, or a commercial or industrial building, that the 
71.4 	implementing entity has determined, after review of an energy audit or renewable energy 
71.5 	system feasibility study, can be benefited by installation of cost-effective energy 
71.6 	improvements. Qualifying commercial real property includes new construction.

71.7 	Sec. 7. Minnesota Statutes 2018, section 216C.436, subdivision 4, is amended to read:
71.8 		Subd. 4.Financing terms. Financing provided under this section must have:
71.9 	(1) a cost-weighted average maturity not exceeding the useful life of the energy 
71.10 	improvements installed, as determined by the implementing entity, but in no event may a 
71.11 	term exceed 20 years;
71.12 	(2) a principal amount not to exceed the lesser of:
71.13 	(i) the greater of 20 percent of the assessed value of the real property on which the 
71.14 	improvements are to be installed or 20 percent of the real property's appraised value, accepted 
71.15 	or approved by the mortgage lender; or
71.16 	(ii) the actual cost of installing the energy improvements, including the costs of necessary 
71.17 	equipment, materials, and labor, the costs of each related energy audit or renewable energy 
71.18 	system feasibility study, and the cost of verification of installation; and
71.19 	(3) an interest rate sufficient to pay the financing costs of the program, including the 
71.20 	issuance of bonds and any financing delinquencies.

71.21 	Sec. 8. Minnesota Statutes 2018, section 216C.436, is amended by adding a subdivision 
71.22 	to read:
71.23 		Subd. 10.Improvements; real property or fixture. A cost-effective energy improvement 
71.24 	financed under a PACE loan program, including all equipment purchased in whole or in 
71.25 	part with loan proceeds under a loan program, is deemed real property or a fixture attached 
71.26 	to the real property.

72.1 	Sec. 9. Laws 2017, chapter 94, article 10, section 28, is amended to read:
72.2 	Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
72.3 	THERMAL REBATES.
 72.4 	(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner 
72.5 	of a solar thermal system whose application was approved by the commissioner of commerce 
72.6 	after the effective date of this act.
72.7 	(b) Unspent money remaining in the account established under Minnesota Statutes 2014, 
72.8 	section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF renewable 
72.9 	development account established under Minnesota Statutes 2016, section 116C.779, 
72.10 	subdivision 1.

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

72.12 	Sec. 10. Laws 2017, chapter 94, article 10, section 29, is amended to read:
72.13 	Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF 
72.14 	UNEXPENDED GRANT FUNDS.
 72.15 	(a) No later than 30 days after the effective date of this section, the utility subject to 
72.16 	Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person 
72.17 	who received a grant funded from the renewable development account previously established 
72.18 	under that subdivision:
72.19 	(1) after January 1, 2012; and
72.20 	(2) before January 1, 2012, if the funded project remains incomplete as of the effective 
72.21 	date of this section.
72.22 	The notice must contain the provisions of this section and instructions directing grant 
72.23 	recipients how unexpended funds can be transferred to the clean energy advancement fund
72.24 	renewable development account.
72.25 	(b) A recipient of a grant from the renewable development account previously established 
72.26 	under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after 
72.27 	receiving the notice required under paragraph (a), transfer any grant funds that remain 
72.28 	unexpended as of the effective date of this section to the clean energy advancement fund
72.29 	renewable development account if, by that effective date, all of the following conditions 
72.30 	are met:
72.31 	(1) the grant was awarded more than five years before the effective date of this section;
73.1 	(2) the grant recipient has failed to obtain control of the site on which the project is to 
73.2 	be constructed;
73.3 	(3) the grant recipient has failed to secure all necessary permits or approvals from any 
73.4 	unit of government with respect to the project; and
73.5 	(4) construction of the project has not begun.
73.6 	(c) A recipient of a grant from the renewable development account previously established 
73.7 	under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds 
73.8 	that remain unexpended five years after the grant funds are received by the grant recipient 
73.9 	if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant 
73.10 	recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary 
73.11 	of the receipt of the grant funds.
73.12 	(d) A person who transfers funds to the clean energy advancement fund renewable 
73.13 	development account under this section is eligible to apply for funding from the clean energy 
73.14 	advancement fund renewable development account.

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

73.16 	Sec. 11. DEPARTMENT OF COMMERCE; USE OF APPROPRIATIONS; 
73.17 	PROHIBITION.
 73.18 	The commissioner of commerce is prohibited from using appropriations to the Department 
73.19 	of Commerce to fund any activities related to, or supporting the preparation or filing of, an 
73.20 	appeal of a Public Utilities Commission order issuing a certificate of need in Docket No. 
73.21 	PL-9/CN-14-916 to the court of appeals or supreme court.

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

73.23 	ARTICLE 9
73.24 	CONSERVATION IMPROVEMENT PROGRAMS

73.25 	Section 1. [216B.2402] CONSERVATION IMPROVEMENT PROGRAMS FOR 
73.26 	CONSUMER-OWNED UTILITIES.
73.27 		Subdivision 1.Definitions. For the purpose of this section, the terms defined in this 
73.28 	subdivision have the meanings given to them:
73.29 	(a) "Consumer-owned utility" means a municipal gas utility, a municipal electric utility, 
73.30 	or a cooperative electric association.
74.1 	(b) "Cumulative lifetime savings" means the total electric energy or natural gas savings 
74.2 	in a given year from energy conservation improvements installed that year or in previous 
74.3 	years that are still operational and providing savings in that year because the measures have 
74.4 	not reached the end of their useful lives.
74.5 	(c) "Efficient electrification or conversion improvement" means a project that (1) results 
74.6 	in converting a customer from use of a fuel to the use of electric energy or natural gas sold 
74.7 	at retail by a utility subject to this section, resulting in a net increase of the use of electric 
74.8 	energy or natural gas and a net decrease in energy consumption overall on a fuel-neutral 
74.9 	basis, and (2) otherwise meets the criteria established in subdivision 8. An efficient 
74.10 	electrification improvement requires the installation of equipment that utilizes electric energy 
74.11 	or natural gas, resulting in a reduction or elimination of use of the previous fuel.
74.12 	(d) "Electric utility infrastructure projects" means projects owned by a consumer-owned 
74.13 	utility that replace or modify existing electric utility infrastructure, including utility-owned 
74.14 	buildings, if the replacement or modification conserves energy or uses energy more 
74.15 	efficiently.
74.16 	(e) "Energy conservation" means an action that results in a net reduction in electric 
74.17 	energy or natural gas consumption.
74.18 	(f) "Energy conservation improvement" means a project that results in energy efficiency 
74.19 	or energy conservation. Energy conservation improvement may include waste heat that is 
74.20 	recovered and converted into electricity, but does not include electric utility infrastructure 
74.21 	projects approved by the commission under section 216B.1636. Energy conservation 
74.22 	improvement includes waste heat recovered and used as thermal energy.
74.23 	(g) "Energy efficiency" means measures or programs, including energy conservation 
74.24 	measures or programs, that target consumer behavior, equipment, processes, or devices 
74.25 	designed to produce either an absolute decrease in consumption of electric energy or natural 
74.26 	gas or a decrease in consumption of electric energy or natural gas on a per unit of production 
74.27 	basis, without a reduction in the quality level of service provided to the energy consumer.
74.28 	(h) "Fuel" means energy consumed by a retail utility customer. Fuel includes electricity, 
74.29 	propane, natural gas, heating oil, gasoline, or diesel fuel.
74.30 	(i) "Fuel neutral" means an approach that compares the use of various fuels for a given 
74.31 	end use, using a common metric.
74.32 	(j) "Gross annual retail energy sales" means the total annual sale of electric to all retail 
74.33 	customers in a utility's or association's Minnesota service territory or, natural gas throughput 
75.1 	to all retail customers, including natural gas transportation customers, on a utility's 
75.2 	distribution system in Minnesota. Gross annual retail energy sales does not include:
75.3 	(1) gas sales to:
75.4 	(i) a large energy facility;
75.5 	(ii) a large customer facility whose natural gas utility has been exempted by the 
75.6 	commissioner under subdivision 13, with respect to natural gas sales made to the large 
75.7 	customer facility; and
75.8 	(iii) a commercial gas customer facility whose natural gas utility has been exempted by 
75.9 	the commissioner under subdivision 13, with respect to natural gas sales made to the 
75.10 	commercial gas customer facility;
75.11 	(2) electric sales to a large customer facility whose electric utility has been exempted 
75.12 	by the commissioner under subdivision 13, with respect to electric sales made to the large 
75.13 	facility; and
75.14 	(3) increased electric or natural gas sales from efficient electrification or conversion 
75.15 	caused by a utility program.
75.16 	(k) "Large customer facility" means all buildings, structures, equipment, and installations 
75.17 	at a single site that collectively (1) impose a peak electrical demand on an electric utility's 
75.18 	system of at least 20,000 kilowatts, measured in the same way as the utility that serves the 
75.19 	customer facility measures electric demand for billing purposes, or (2) consume at least 
75.20 	500,000,000 cubic feet of natural gas annually. When calculating peak electrical demand, 
75.21 	a large customer facility may include demand offset by on-site cogeneration facilities and, 
75.22 	if engaged in mineral extraction, may aggregate peak energy demand from the large customer 
75.23 	facility's mining processing operations.
75.24 	(l) "Large energy facility" has the meaning given it in section 216B.2421, subdivision 
75.25 	2, clause (1).
75.26 	(m) "Load management" means an activity, service, or technology to change the timing 
75.27 	or the efficiency of a customer's use of energy that allows a utility or a customer to respond 
75.28 	to local and regional energy system conditions, or to reduce peak demand for electric energy 
75.29 	or natural gas. Load management that reduces overall energy use is also energy conservation.
75.30 	(n) "Low-income programs" means energy conservation improvement programs that 
75.31 	directly serve the needs of low-income persons, including low-income renters and entities 
75.32 	that serve low-income customers."Low-income" is defined as 60 percent of state median 
75.33 	income, notwithstanding the criteria established in subdivision 5, paragraph (e). Multifamily 
76.1 	buildings of five units or more that are rented by low-income persons are eligible to be 
76.2 	served through low-income programs, which may include the upgrading of appliances, 
76.3 	heating and air conditioning equipment, and building envelope improvements.
76.4 	(o) "Member" has the meaning given to it in section 308B.005, subdivision 15.
76.5 	(p) "Qualifying utility" means a utility that supplies energy to a customer that enables 
76.6 	the customer to qualify as a large customer facility.
76.7 	(q) "Source energy" means the total amount of fuel required for a given purpose, 
76.8 	considering energy losses in the production, transmission, and delivery of that energy.
76.9 	(r) "Waste heat recovered and used as thermal energy" means capturing heat energy that 
76.10 	would be exhausted or dissipated to the environment from machinery, buildings, or industrial 
76.11 	processes, and productively using the recovered thermal energy where it is used to reduce 
76.12 	demand-side consumption of natural gas, electric energy, or both.
76.13 	(s) "Waste heat recovery converted into electricity" means an energy recovery process 
76.14 	that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines 
76.15 	or manufacturing or industrial processes, or the reduction of high pressure in water or gas 
76.16 	pipelines.
76.17 		Subd. 2.Applicability. This section applies to:
76.18 	(1) a cooperative electric association that provides retail service to more than 5,000 
76.19 	members;
76.20 	(2) a municipality that provides electric service to more than 1,000 retail customers; and
76.21 	(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales 
76.22 	to natural gas retail customers.
76.23 		Subd. 3.Savings goal. (a) Each individual consumer-owned utility subject to this section 
76.24 	has an annual energy savings goal equivalent to 1.5 percent of gross annual retail energy 
76.25 	sales.
76.26 	(b) A consumer-owned utility's savings goal is satisfied when the consumer-owned 
76.27 	utility achieves a savings equivalent of at least three-quarters of one percent of the 
76.28 	consumer-owned utility's gross annual retail energy sales from energy conservation 
76.29 	improvements, and up to three-quarters of one percent from the following utility activities:
76.30 	(1) energy savings from additional energy conservation improvements;
76.31 	(2) electric utility infrastructure projects;
77.1 	(3) net energy savings from efficient electrification and conversion improvements that 
77.2 	meet the criteria under subdivision 8; or
77.3 	(4) CIP solar rebates that meet the criteria provided under subdivision 9.
77.4 	(c) The energy savings goals specified must be calculated based on the most recent 
77.5 	three-year, weather-normalized average. When determining compliance with this subdivision, 
77.6 	a consumer-owned utility may elect to average annual energy savings over a period not to 
77.7 	exceed five years, as specified in the plan filed under subdivision 4. A consumer-owned 
77.8 	utility that uses annual plans may carry forward for up to five years any energy savings 
77.9 	exceeding 1.5 percent in a single year.
77.10 	(d) Nothing in this subdivision limits a utility's ability to report and recognize savings 
77.11 	in excess of three-quarters of one percent of the utility's gross annual retail energy sales 
77.12 	generated under paragraph (b), clauses (1), (2), and (3), provided the utility has satisfied 
77.13 	the three-quarters of one percent savings required under paragraph (b).
77.14 	(e) A consumer-owned utility subject to this section is not required to make energy 
77.15 	conservation improvements that are not cost-effective, even if the improvement is necessary 
77.16 	to attain the energy savings goal.
77.17 	(f) A consumer-owned utility may request that the commissioner adjust its annual energy 
77.18 	savings goal based on its historical conservation investment experience, customer class 
77.19 	makeup, load growth, a conservation potential study, impact on utility revenue that threatens 
77.20 	necessary system investment, or other factors the commissioner and consumer-owned utility 
77.21 	determines warrants an adjustment. The commissioner must adjust the savings goal to a 
77.22 	level the commissioner determines is supported by the record.
77.23 		Subd. 4.Consumer-owned utility; energy conservation and optimization plans. (a) 
77.24 	By June 1, 2021, each consumer-owned utility must file an energy conservation and 
77.25 	optimization plan with the commissioner. The plan must identify and outline the utility's 
77.26 	intended conservation improvement program, efficient electrification or conversion 
77.27 	improvement plans, load management plans, and other processes and programs to achieve 
77.28 	the energy savings goal. The plan may cover a period of time not to exceed five years. For 
77.29 	plans with a duration greater than one year, the consumer-owned utility's plan may include 
77.30 	years where the consumer-owned utility may not achieve the annual savings goal, provided 
77.31 	the total savings at the end of the plan meets, at a minimum, the otherwise applicable annual 
77.32 	savings goal for the utility. Beginning June 1, 2022, and each June 1 thereafter, each 
77.33 	consumer-owned utility must file an annual update identifying the status of, including total 
77.34 	expenditures and investments made to date, and any intended changes to its multiyear plan 
78.1 	filed under this subdivision. For consumer-owned utilities whose plans were completed the 
78.2 	prior June 1, a summary of the plan's result must be filed. A summary for a completed plan's 
78.3 	result must also be filed. The summary for a completed plan must include: (1) the total 
78.4 	savings achieved under the plan; (2) a breakdown of total expenditures and investments 
78.5 	made; and (3) a brief discussion regarding where the utility achieved the greatest savings 
78.6 	and, if areas exist where savings were less than anticipated under the plan, where the shortage 
78.7 	occurred and what the suspected reason for the shortage is. For consumer-owned utilities 
78.8 	that fall short of the total applicable savings goal, the final report or update on that plan 
78.9 	must indicate where the actual savings differed from anticipated savings, any known reasons 
78.10 	for the shortfall, and any identified changes that utility will make in future plans filed under 
78.11 	this subdivision to reach the identified savings goal. A consumer-owned utility must file a 
78.12 	new plan under this paragraph by June 1 of the year following the completion of the 
78.13 	consumer-owned utility's most recently completed plan.
78.14 	(b) Energy savings from electric utility infrastructure projects or waste heat recovery 
78.15 	converted into electricity projects that may count as energy savings may be included in a 
78.16 	plan submitted under paragraph (a). A consumer-owned electric facility's infrastructure 
78.17 	project must result in increased energy efficiency greater than would have occurred during 
78.18 	normal maintenance activities.
78.19 	(c) Energy savings from thermal-to-electric efficient electrification or conversion 
78.20 	improvement programs must be stated in kilowatt-hours, using a conversion rate of 3,412 
78.21 	British thermal units to one kilowatt-hour.
78.22 	(d) A consumer-owned utility must not spend or invest in energy conservation 
78.23 	improvements that directly benefit large energy facility or a large electric customer facility 
78.24 	the commissioner has issued an exemption to under subdivision 13.
78.25 	(e) A generation and transmission cooperative electric association, a municipal power 
78.26 	agency, or a comparable organization that provides energy services to consumer-owned 
78.27 	utilities may invest in energy conservation improvements on behalf of the consumer-owned 
78.28 	utilities it serves and may fulfill all aspects of the conservation, reporting, and energy-saving 
78.29 	goals for any of the consumer-owned utilities on an aggregate basis.
78.30 		Subd. 5.Low-income programs. (a) Each consumer-owned utility subject to this section 
78.31 	must provide low-income energy conservation programs. When approving spending and 
78.32 	energy-savings goals for low-income energy conservation programs, the consumer-owned 
78.33 	utility must consider historic spending and participation levels, energy savings for low-income 
78.34 	programs, and the number of low-income persons residing in the utility's service territory. 
79.1 	A municipal utility that furnishes gas service must spend at least 0.2 percent off its most 
79.2 	recent three-year average gross operating revenue from residential customers in Minnesota 
79.3 	on low-income programs. A consumer-owned utility that furnishes electric service must 
79.4 	spend at least 0.2 percent of its gross operating revenue from residential customers in 
79.5 	Minnesota on low-income programs. This requirement applies to each generation and 
79.6 	transmission cooperative association's members' aggregate gross operating revenue from 
79.7 	the sale of electricity to residential customers in Minnesota.
79.8 	(b) To meet the requirements of paragraph (a), a consumer-owned utility may contribute 
79.9 	money to the energy and conservation account in section 216B.241, subdivision 2a. An 
79.10 	energy conservation improvement plan must state the amount, if any, of low-income energy 
79.11 	conservation improvement funds the utility plans to contribute to the energy and conservation 
79.12 	account. Contributions must be remitted to the commissioner by February 1 each year.
79.13 	(c) The commissioner must establish low-income programs to use money contributed 
79.14 	to the energy and conservation account under paragraph (b). When establishing low-income 
79.15 	programs, the commissioner must consult political subdivisions, utilities, and nonprofit and 
79.16 	community organizations, including organizations engaged in providing energy and 
79.17 	weatherization assistance to low-income persons. Money contributed to the energy and 
79.18 	conservation account under paragraph (b) must provide programs for low-income persons, 
79.19 	including low-income renters, located in the service territory of the utility or association 
79.20 	providing the money. The commissioner must record and report expenditures and energy 
79.21 	savings achieved as a result of low-income programs funded through the energy and 
79.22 	conservation account in the report required under section 216B.241, subdivision 1c, paragraph 
79.23 	(g). The commissioner may contract with a political subdivision, nonprofit or community 
79.24 	organization, public utility, municipality, or cooperative electric association to implement 
79.25 	low-income programs funded through the energy and conservation account.
79.26 	(d) A consumer-owned utility may petition the commissioner to modify its required 
79.27 	spending under this subdivision if the utility and the commissioner were unable to expend 
79.28 	the amount required for three consecutive years.
79.29 	(e) For purposes of this subdivision, "multifamily building" is defined as a residential 
79.30 	building with five or more dwelling units. For purposes of determining eligibility for 
79.31 	multifamily buildings in low-income programs, a utility or association may use one or more 
79.32 	of the following:
79.33 	(1) information showing that a multifamily building's units are rented to households 
79.34 	meeting one or more of the following criteria:
80.1 	(i) at or below 200 percent of federal poverty level;
80.2 	(ii) at or below 60 percent of area median income;
80.3 	(iii) occupancy within a building that is certified on the low-income renter classification 
80.4 	(LIRC) assessor report compiled annually by the Minnesota Housing Finance Agency; or
80.5 	(iv) occupancy within a building which has a declaration against the property requiring 
80.6 	that a portion of the units will be rented to tenants with an annual income of less than or 
80.7 	equal to 60 percent of area median income;
80.8 	(2) a property's participation in an affordable housing program, including Low-Income 
80.9 	Housing Tax Credits (LIHTC), United States Department of Housing and Urban Development 
80.10 	(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing 
80.11 	finance agency assistance, or local tax abatement for low-income properties; or
80.12 	(3) documentation demonstrating that the property is on the waiting list for or currently 
80.13 	participating in the United States Department of Energy Weatherization Assistance Program.
80.14 		Subd. 6.Recovery of expenses. The commission must allow a cooperative electric 
80.15 	association subject to rate regulation under section 216B.026 to recover expenses resulting 
80.16 	from (1) a plan under this subdivision, and (2) assessments and contributions to the energy 
80.17 	and conservation account under section 216B.241, subdivision 2a.
80.18 		Subd. 7.Ownership of energy conservation improvement. An energy conservation 
80.19 	improvement to or installed in a building under this section, except systems owned by the 
80.20 	consumer-owned utility and designed to turn off, limit, or vary the delivery of energy, is 
80.21 	the exclusive property of the building owner, except to the extent that the improvement is 
80.22 	subject to a security interest in favor of the utility in case of a loan to the building owner. 
80.23 	The utility has no liability for loss, damage, or injury caused directly or indirectly by an 
80.24 	energy conservation improvement, except for negligence by the utility in purchase, 
80.25 	installation, or modification of the product.
80.26 		Subd. 8.Criteria for efficient electrification or conversion improvements and load 
80.27 	management. (a) Each consumer-owned utility subject to this section may form a technical 
80.28 	consumer-owned utility working group to define and establish proposed programs for 
80.29 	efficient electrification or conversion improvements and load management. A proposed 
80.30 	program may be included in an energy conservation and optimization plan filed by the 
80.31 	consumer-owned utility under subdivision 4. The technical consumer-owned utility working 
80.32 	group may approve a proposed program for efficient electrification or conversion 
81.1 	improvements if it finds the investment is cost-effective after considering the costs and 
81.2 	benefits of the proposed investment to rate payers, the utility, participants, and society.
81.3 	(b) The commission may permit a consumer-owned utility subject to rate regulation to 
81.4 	file rate schedules providing for annual recovery of the costs of (1) efficient electrification 
81.5 	or conversion improvement programs, and (2) cost-effective load management approved 
81.6 	by the technical consumer-owned utility working group under subdivision 6, including 
81.7 	reasonable and prudent costs associated with promoting and implementing a program 
81.8 	approved under this subdivision.
81.9 	(c) An efficient electrification or conversion improvement is deemed efficient if the 
81.10 	technical consumer-owned utility working group finds the improvement, relative to the fuel 
81.11 	that is being displaced:
81.12 	(1) results in a net reduction in the cost and amount of source energy consumed for a 
81.13 	particular use, measured on a fuel-neutral basis;
81.14 	(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section 
81.15 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient electrification 
81.16 	or conversion improvement installed by an electric utility, the reduction in emissions must 
81.17 	be measured based on the emissions profile of the utility or the utility's wholesale provider 
81.18 	over the life of the improvement. Where applicable, the emissions profile used must be the 
81.19 	most recent resource plan accepted by the commission under section 216B.2422;
81.20 	(3) is cost-effective from a societal perspective, considering the costs associated with 
81.21 	both the fuel used in the past and the fuel used in the future; and
81.22 	(4) is planned to be installed and operated in a manner that does not unduly increase the 
81.23 	utility's system peak demand or require significant new investment in utility infrastructure.
81.24 		Subd. 9.Criteria for CIP solar rebates. (a) Each consumer-owned utility subject to 
81.25 	this section may claim energy savings credit equal to the amount of energy produced by 
81.26 	solar photovoltaic facilities for which the utility has issued a CIP solar rebate. For purposes 
81.27 	of this section, a "CIP solar rebate" is a payment from a utility subject to this section to a 
81.28 	customer for the purchase or installation of solar photovoltaic equipment used on the 
81.29 	customer's premise.
81.30 	(b) The total solar photovoltaic generation system annual energy production kilowatt 
81.31 	hours alternating current is limited to 100 percent of the customer's on-site annual electric 
81.32 	energy consumption based on standard 15-minute intervals, measured during the previous 
81.33 	12 calendar months, or on a reasonable estimate of the average monthly maximum demand 
82.1 	or average annual consumption if the customer has either: (1) less than 12 calendar months 
82.2 	of actual electric usage; or (2) no demand metering available.
82.3 		Subd. 10.Manner of filing and service. (a) A consumer-owned utility must submit the 
82.4 	filings required by this section to the department using the department's electronic filing 
82.5 	system. The commissioner may exempt a consumer-owned utility from this requirement if 
82.6 	the utility is unable to submit filings using the department's electronic filing system. All 
82.7 	other interested parties must submit filings to the department using the department's electronic 
82.8 	filing system whenever practicable, but may also file by personal delivery or by mail.
82.9 	(b) The submission of a document to the department's electronic filing system constitutes 
82.10 	service on the department. If a department rule requires service of a notice, order, or other 
82.11 	document by the department, utility, or interested party upon persons on a service list 
82.12 	maintained by the department, service may be made by personal delivery, mail, or electronic 
82.13 	service, except that electronic service may only be made to persons on the service list that 
82.14 	have previously agreed in writing to accept electronic service at an electronic address 
82.15 	provided to the department for electronic service purposes.
82.16 		Subd. 11.Assessment. (a) The commission or department may assess utilities subject 
82.17 	to this section to carry out the purposes of section 216B.241, subdivision 1d. An assessment 
82.18 	under this paragraph must be proportionate to the utility's respective gross operating revenue 
82.19 	from sales of gas or electric service in Minnesota during the previous calendar year.
82.20 	(b) The commission or department may annually assess a utility subject to this section 
82.21 	to carry out the purposes of section 216B.241, subdivisions 1e and 1f, upon notice from the 
82.22 	utility of its desire to continue the assessment. An assessment under this paragraph must be 
82.23 	proportionate to the utility's respective gross revenue from sales of gas or electric service 
82.24 	in Minnesota during the previous calendar year. Assessments under this paragraph are not 
82.25 	subject to the cap on assessments provided by section 216B.62, or any other law.
82.26 		Subd. 12.Waste heat recovery; thermal energy distribution.  Subject to department 
82.27 	approval, demand-side natural gas or electric energy displaced by use of waste heat recovered 
82.28 	and used as thermal energy, including the recovered thermal energy from a cogeneration 
82.29 	or combined heat and power facility, is eligible to be counted toward a consumer-owned 
82.30 	utility's natural gas or electric savings goals.
82.31 		Subd. 13.Large customer facilities. (a) The owner of a large customer facility may 
82.32 	petition the commissioner to exempt municipal electric utilities, municipal gas utilities, and 
82.33 	cooperative electric associations serving the large customer facility from the investment 
82.34 	and expenditure requirements of the municipal electric utility, municipal gas utility, or 
83.1 	cooperative electric association's plan under this section with respect to retail revenues 
83.2 	attributable to the large customer facility. The filing must include a discussion of the 
83.3 	competitive or economic pressures facing the owner of the facility and the efforts taken to 
83.4 	identify, evaluate, and implement energy conservation and efficiency improvements. A 
83.5 	filing submitted on or before October 1 of any year must be approved within 90 days and 
83.6 	becomes effective January 1 of the year following the filing, unless the commissioner finds 
83.7 	the owner of the large customer facility has failed to take reasonable measures to identify, 
83.8 	evaluate, and implement energy conservation and efficiency improvements. If a facility 
83.9 	qualifies as a large customer facility solely due to its peak electrical demand or annual 
83.10 	natural gas usage, the exemption may be limited to the qualifying utility if the commissioner 
83.11 	finds that the owner of the large customer facility has failed to take reasonable measures to 
83.12 	identify, evaluate, and implement energy conservation and efficiency improvements with 
83.13 	respect to the nonqualifying utility. Once an exemption is approved, the commissioner may 
83.14 	request the owner of a large customer facility to submit a report demonstrating the large 
83.15 	customer facility's ongoing commitment to energy conservation and efficiency improvement 
83.16 	after the exemption filing. The commissioner may request a report under this paragraph not 
83.17 	more than once every five years for up to ten years after the effective date of the exemption. 
83.18 	If the majority ownership of the large customer facility changes, the commissioner may 
83.19 	request additional reports for up to ten years after the change in ownership occurs. The 
83.20 	commissioner may, within 180 days of receiving a report submitted under this paragraph, 
83.21 	rescind any exemption granted under this paragraph upon a determination that the large 
83.22 	customer facility is not continuing to make reasonable efforts to identify, evaluate, and 
83.23 	implement energy conservation improvements. A large customer facility that is exempt 
83.24 	from the investment and expenditure requirements of this section under an order from the 
83.25 	commissioner as of December 31, 2010, is not required to submit a report to retain its exempt 
83.26 	status, except as otherwise provided in this paragraph with respect to ownership changes. 
83.27 	An exempt large customer facility is prohibited from participating in a municipal electric, 
83.28 	municipal gas, or cooperative electric association utility's conservation improvement program 
83.29 	unless the owner of the facility files with the commissioner to withdraw its exemption.
83.30 	(b) A commercial gas customer that is not a large customer facility and that purchases 
83.31 	or acquires natural gas from a municipal gas utility may petition the commissioner to exempt 
83.32 	the commercial gas customer from the municipal gas customer from the municipal gas 
83.33 	utility's plan under this section with respect to gas sales attributable to the commercial gas 
83.34 	customer. The petition must be supported by evidence demonstrating that the commercial 
83.35 	gas customer has acquired or can reasonably acquire the capability to bypass use of the 
83.36 	municipal utility's gas distribution system by obtaining natural gas directly from a supplier 
84.1 	other than the municipal gas utility. The commissioner must grant the exemption if the 
84.2 	commissioner finds the petitioner has made the demonstration required by this paragraph.
84.3 	(c) A municipal electric utility, municipal gas utility, cooperative electric association, 
84.4 	or the owner of a large customer facility may appeal the commissioner's decision under 
84.5 	paragraph (a) or (b) to the commissioner under subdivision 2. When reviewing a decision 
84.6 	of the commissioner under paragraph (a) or (b), the commission must rescind the decision 
84.7 	if it finds the decision is not in the public's interest.
84.8 	(d) A municipal electric utility, municipal gas utility, or cooperative electric association 
84.9 	is prohibited from spending for or investing in energy conservation improvements that 
84.10 	directly benefit a large facility or a large electric customer facility that the commissioner 
84.11 	has issued an exemption for under this section.

84.12 	Sec. 2. Minnesota Statutes 2018, section 216B.241, subdivision 1c, is amended to read:
84.13 		Subd. 1c.Public utility; energy-saving goals. (a) The commissioner shall establish 
84.14 	energy-saving goals for energy conservation improvement expenditures and shall evaluate 
84.15 	an energy conservation improvement program on how well it meets the goals set.
84.16 	(b) Each individual public utility and association shall have an annual energy-savings 
84.17 	goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 
84.18 	commissioner under paragraph (d). The savings goals must be calculated based on the most 
84.19 	recent three-year weather-normalized average. A public utility or association may elect to 
84.20 	carry forward energy savings in excess of 1.5 percent for a year to the succeeding three 
84.21 	calendar years, except that savings from electric utility infrastructure projects allowed under 
84.22 	paragraph (d) (c) may be carried forward for five years. A particular energy savings can be 
84.23 	used only for one year's goal.
84.24 	(c) The commissioner must adopt a filing schedule that is designed to have all utilities 
84.25 	and associations operating under an energy-savings plan by calendar year 2010.
84.26 	(d) (c) In its energy conservation improvement plan filing, a public utility or association
84.27 	may request the commissioner to adjust its annual energy-savings percentage goal based 
84.28 	on its historical conservation investment experience, customer class makeup, load growth, 
84.29 	a conservation potential study, or other factors the commissioner determines warrants an 
84.30 	adjustment. The commissioner may not approve a plan of a public utility that provides for 
84.31 	an annual energy-savings goal of less than one percent of gross annual retail energy sales 
84.32 	from energy conservation improvements.
85.1 	A public utility or association may include in its energy conservation plan energy savings 
85.2 	from electric utility infrastructure projects approved by the commission under section 
85.3 	216B.1636 or waste heat recovery converted into electricity projects that may count as 
85.4 	energy savings in addition to a minimum energy-savings goal of at least one percent for 
85.5 	energy conservation improvements. Energy savings from electric utility infrastructure 
85.6 	projects, as defined in section 216B.1636, may be included in the energy conservation plan 
85.7 	of a municipal utility or cooperative electric association. Electric utility infrastructure projects 
85.8 	must result in increased energy efficiency greater than that which would have occurred 
85.9 	through normal maintenance activity.
85.10 	(e) An (d) A public utility's energy-savings goal is not satisfied by attaining the revenue 
85.11 	expenditure requirements of subdivisions 1a and 1b, but can only be satisfied by meeting 
85.12 	the energy-savings goal established in this subdivision.
85.13 	(f) An association or (e) A public utility is not required to make energy conservation 
85.14 	investments to attain the energy-savings goals of this subdivision that are not cost-effective 
85.15 	even if the investment is necessary to attain the energy-savings goals. For the purpose of 
85.16 	this paragraph, in determining cost-effectiveness, the commissioner shall consider the costs 
85.17 	and benefits to ratepayers, the utility, participants, and society. In addition, the commissioner 
85.18 	shall consider the rate at which an association or municipal utility is increasing its energy 
85.19 	savings and its expenditures on energy conservation.
85.20 	(g)(f) On an annual basis, the commissioner shall produce and make publicly available 
85.21 	a report on the annual energy savings and estimated carbon dioxide reductions achieved by 
85.22 	the energy conservation improvement programs for the two most recent years for which 
85.23 	data is available. The commissioner shall report on program performance both in the 
85.24 	aggregate and for each entity filing an energy conservation improvement plan for approval 
85.25 	or review by the commissioner.
85.26 	(h) By January 15, 2010, the commissioner shall report to the legislature whether the 
85.27 	spending requirements under subdivisions 1a and 1b are necessary to achieve the 
85.28 	energy-savings goals established in this subdivision.
85.29 	(i) This subdivision does not apply to:
85.30 	(1) a cooperative electric association with fewer than 5,000 members;
85.31 	(2) a municipal utility with fewer than 1,000 retail electric customers; or
85.32 	(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales 
85.33 	to retail natural gas customers.

86.1 	Sec. 3. Minnesota Statutes 2018, section 216B.241, subdivision 1d, is amended to read:
86.2 		Subd. 1d.Technical assistance. (a) The commissioner shall evaluate energy conservation 
86.3 	improvement programs under this section and section 216B.2402 on the basis of 
86.4 	cost-effectiveness and the reliability of the technologies employed. The commissioner shall, 
86.5 	by order, establish, maintain, and update energy-savings assumptions that must be used 
86.6 	when filing energy conservation improvement programs. The commissioner shall establish 
86.7 	an inventory of the most effective energy conservation programs, techniques, and 
86.8 	technologies, and encourage all Minnesota utilities to implement them, where appropriate, 
86.9 	in their service territories. The commissioner shall describe these programs in sufficient 
86.10 	detail to provide a utility reasonable guidance concerning implementation. The commissioner 
86.11 	shall prioritize the opportunities in order of potential energy savings and in order of 
86.12 	cost-effectiveness. The commissioner may contract with a third party to carry out any of 
86.13 	the commissioner's duties under this subdivision, and to obtain technical assistance to 
86.14 	evaluate the effectiveness of any conservation improvement program. The commissioner 
86.15 	may assess up to $850,000 annually for the purposes of this subdivision. The assessments 
86.16 	must be deposited in the state treasury and credited to the energy and conservation account 
86.17 	created under subdivision 2a. An assessment made under this subdivision is not subject to 
86.18 	the cap on assessments provided by section 216B.62, or any other law.
86.19 	(b) Of the assessment authorized under paragraph (a), the commissioner may expend 
86.20 	up to $400,000 annually for the purpose of developing, operating, maintaining, and providing 
86.21 	technical support for a uniform electronic data reporting and tracking system available to 
86.22 	all utilities subject to this section, in order to enable accurate measurement of the cost and 
86.23 	energy savings of the energy conservation improvements required by this section. This 
86.24 	paragraph expires June 30, 2018.

86.25 	Sec. 4. Minnesota Statutes 2018, section 216B.241, subdivision 2, is amended to read:
86.26 		Subd. 2.Programs. (a) The commissioner may require public utilities to make 
86.27 	investments and expenditures in energy conservation improvements, explicitly setting forth 
86.28 	the interest rates, prices, and terms under which the improvements must be offered to the 
86.29 	customers. The required programs must cover no more than a three-year period. Public 
86.30 	utilities shall file conservation improvement plans by June 1, on a schedule determined by 
86.31 	order of the commissioner, but at least every three years. Plans received by a public utility 
86.32 	by June 1 must be approved or approved as modified by the commissioner by December 1 
86.33 	of that same year. The commissioner shall evaluate the program on the basis of 
86.34 	cost-effectiveness and the reliability of technologies employed. The commissioner's order 
87.1 	must provide to the extent practicable for a free choice, by consumers participating in the 
87.2 	program, of the device, method, material, or project constituting the energy conservation 
87.3 	improvement and for a free choice of the seller, installer, or contractor of the energy 
87.4 	conservation improvement, provided that the device, method, material, or project seller, 
87.5 	installer, or contractor is duly licensed, certified, approved, or qualified, including under 
87.6 	the residential conservation services program, where applicable.
87.7 	(b) The commissioner may require a utility subject to subdivision 1c to make an energy 
87.8 	conservation improvement investment or expenditure whenever the commissioner finds 
87.9 	that the improvement will result in energy savings at a total cost to the utility less than the 
87.10 	cost to the utility to produce or purchase an equivalent amount of new supply of energy. 
87.11 	The commissioner shall nevertheless ensure that every public utility operate one or more 
87.12 	programs under periodic review by the department.
87.13 	(c) Each public utility subject to subdivision 1a may spend and invest annually up to ten 
87.14 	percent of the total amount required to be spent and invested on energy conservation 
87.15 	improvements under this section by the utility on research and development projects that 
87.16 	meet the definition of energy conservation improvement in subdivision 1 and that are funded 
87.17 	directly by the public utility.
87.18 	(d) A public utility may not spend for or invest in energy conservation improvements 
87.19 	that directly benefit a large energy facility or a large electric customer facility for which the 
87.20 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 
87.21 	commissioner shall consider and may require a public utility to undertake a program 
87.22 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
87.23 	or community organization.
87.24 	(e) A utility, a political subdivision, or a nonprofit or community organization that has 
87.25 	suggested a program, the attorney general acting on behalf of consumers and small business 
87.26 	interests, or a utility customer that has suggested a program and is not represented by the 
87.27 	attorney general under section 8.33 may petition the commission to modify or revoke a 
87.28 	department decision under this section, and the commission may do so if it determines that 
87.29 	the program is not cost-effective, does not adequately address the residential conservation 
87.30 	improvement needs of low-income persons, has a long-range negative effect on one or more 
87.31 	classes of customers, or is otherwise not in the public interest. The commission shall reject 
87.32 	a petition that, on its face, fails to make a reasonable argument that a program is not in the 
87.33 	public interest.
88.1 	(f) The commissioner may order a public utility to include, with the filing of the utility's 
88.2 	annual status report, the results of an independent audit of the utility's conservation 
88.3 	improvement programs and expenditures performed by the department or an auditor with 
88.4 	experience in the provision of energy conservation and energy efficiency services approved 
88.5 	by the commissioner and chosen by the utility. The audit must specify the energy savings 
88.6 	or increased efficiency in the use of energy within the service territory of the utility that is 
88.7 	the result of the spending and investments. The audit must evaluate the cost-effectiveness 
88.8 	of the utility's conservation programs.
88.9 	(g) A gas utility may not spend for or invest in energy conservation improvements that 
88.10 	directly benefit a large customer facility or commercial gas customer facility for which the 
88.11 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or 
88.12 	(e). The commissioner shall consider and may require a utility to undertake a program 
88.13 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
88.14 	or a community organization.

88.15 	Sec. 5. Minnesota Statutes 2018, section 216B.241, subdivision 2b, is amended to read:
88.16 		Subd. 2b.Recovery of expenses. The commission shall allow a public utility to recover 
88.17 	expenses resulting from a conservation improvement program required by the department 
88.18 	and contributions and assessments to the energy and conservation account, unless the 
88.19 	recovery would be inconsistent with a financial incentive proposal approved by the 
88.20 	commission. The commission shall allow a cooperative electric association subject to rate 
88.21 	regulation under section 216B.026, to recover expenses resulting from energy conservation 
88.22 	improvement programs, load management programs, and assessments and contributions to 
88.23 	the energy and conservation account unless the recovery would be inconsistent with a 
88.24 	financial incentive proposal approved by the commission. In addition, a public utility may 
88.25 	file annually, or the Public Utilities Commission may require the utility to file, and the 
88.26 	commission may approve, rate schedules containing provisions for the automatic adjustment 
88.27 	of charges for utility service in direct relation to changes in the expenses of the utility for 
88.28 	real and personal property taxes, fees, and permits, the amounts of which the utility cannot 
88.29 	control. A public utility is eligible to file for adjustment for real and personal property taxes, 
88.30 	fees, and permits under this subdivision only if, in the year previous to the year in which it 
88.31 	files for adjustment, it has spent or invested at least 1.75 percent of its gross revenues from 
88.32 	provision of electric service, excluding gross operating revenues from electric service 
88.33 	provided in the state to large electric customer facilities for which the commissioner has 
88.34 	issued an exemption under subdivision 1a, paragraph (b), and 0.6 percent of its gross revenues 
88.35 	from provision of gas service, excluding gross operating revenues from gas services provided 
89.1 	in the state to large electric customer facilities for which the commissioner has issued an 
89.2 	exemption under subdivision 1a, paragraph (b), for that year for energy conservation 
89.3 	improvements under this section.

89.4 	Sec. 6. Minnesota Statutes 2018, section 216B.241, subdivision 3, is amended to read:
89.5 		Subd. 3.Ownership of energy conservation improvement. AnA preweatherization 
89.6 	measure or energy conservation improvement made to or installed in a building in accordance 
89.7 	with this section, except systems owned by the utility and designed to turn off, limit, or vary 
89.8 	the delivery of energy, are the exclusive property of the owner of the building except to the 
89.9 	extent that the improvement is subjected to a security interest in favor of the utility in case 
89.10 	of a loan to the building owner. The utility has no liability for loss, damage or injury caused 
89.11 	directly or indirectly by ana preweatherization measure or energy conservation improvement 
89.12 	except for negligence by the utility in purchase, installation, or modification of the product.

89.13 	Sec. 7. Minnesota Statutes 2018, section 216B.241, subdivision 7, is amended to read:
89.14 		Subd. 7.Low-income programs. (a) The commissioner shall ensure that each public 
89.15 	utility and association subject to subdivision 1c provides low-income programs. When 
89.16 	approving spending and energy-savings goals for low-income programs, the commissioner 
89.17 	shall consider historic spending and participation levels, energy savings for low-income 
89.18 	programs, and the number of low-income persons residing in the utility's service territory. 
89.19 	A municipal utility that furnishes gas service must spend at least 0.2 percent, and a public 
89.20 	utility furnishing gas service must spend at least 0.40.8 percent, of its most recent three-year 
89.21 	average gross operating revenue from residential customers in the state on low-income 
89.22 	programs. A public utility or association that furnishes electric service must spend at least 
89.23 	0.10.4 percent of its gross operating revenue from residential customers in the state on 
89.24 	low-income programs. For a generation and transmission cooperative association, this 
89.25 	requirement shall apply to each association's members' aggregate gross operating revenue 
89.26 	from sale of electricity to residential customers in the state. Beginning in 2010, A utility or 
89.27 	association that furnishes electric service must spend 0.2 percent of its gross operating 
89.28 	revenue from residential customers in the state on low-income programs.
89.29 	(b) To meet the requirements of paragraph (a), a public utility or association may 
89.30 	contribute money to the energy and conservation account. An energy conservation 
89.31 	improvement plan must state the amount, if any, of low-income energy conservation 
89.32 	improvement funds the public utility or association will contribute to the energy and 
90.1 	conservation account. Contributions must be remitted to the commissioner by February 1 
90.2 	of each year.
90.3 	(c) The commissioner shall establish low-income programs to utilize money contributed 
90.4 	to the energy and conservation account under paragraph (b). In establishing low-income 
90.5 	programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and 
90.6 	community organizations, especially organizations engaged in providing energy and 
90.7 	weatherization assistance to low-income persons. Money contributed to the energy and 
90.8 	conservation account under paragraph (b) must provide programs for low-income persons, 
90.9 	including low-income renters, in the service territory of the public utility or association
90.10 	providing the money. The commissioner shall record and report expenditures and energy 
90.11 	savings achieved as a result of low-income programs funded through the energy and 
90.12 	conservation account in the report required under subdivision 1c, paragraph (g). The 
90.13 	commissioner may contract with a political subdivision, nonprofit or community organization, 
90.14 	public utility, municipality, or cooperative electric association to implement low-income 
90.15 	programs funded through the energy and conservation account.
90.16 	(d) A public utility or association may petition the commissioner to modify its required 
90.17 	spending under paragraph (a) if the utility or association and the commissioner have been 
90.18 	unable to expend the amount required under paragraph (a) for three consecutive years.
90.19 	(e) For purposes of this subdivision, "multifamily building" is defined as a residential 
90.20 	building with five or more dwelling units. For purposes of determining eligibility for 
90.21 	multifamily buildings in low-income programs, a utility or association may use one or more 
90.22 	of the following:
90.23 	(1) information showing that a multifamily building's units are rented to households 
90.24 	meeting one of the following criteria:
90.25 	(i) are at or below 200 percent of federal poverty level;
90.26 	(ii) are at or below 60 percent of area median income;
90.27 	(iii) have occupancy within a building that is certified on the low-income renter 
90.28 	classification (LIRC) assessor report compiled annually by Minnesota Housing Finance 
90.29 	Agency; or
90.30 	(iv) have occupancy within a building which has a declaration against the property 
90.31 	requiring that a portion of the units will be rented to tenants with an annual income of less 
90.32 	than or equal to 60 percent of area median income;
91.1 	(2) a property's participation in an affordable housing program, including Low-Income 
91.2 	Housing Tax Credits (LIHTC), United States Department of Housing and Urban Development 
91.3 	(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing 
91.4 	finance agency assistance, or local tax abatement for low-income properties; or
91.5 	(3) documentation demonstrating that the property is on the waiting list for or currently 
91.6 	participating in the United States Department of Energy Weatherization Assistance Program.
91.7 	(f) Up to 15 percent of a public utility's spending on low-income programs may be used 
91.8 	for preweatherization measures. For purposes of this section, "preweatherization measures" 
91.9 	are improvements necessary to allow energy conservation improvements to be installed in 
91.10 	a home:
91.11 	(1) the commissioner shall, by order, establish a list of qualifying preweatherization 
91.12 	measures eligible for inclusion in low-income programs no later than March 15, 2020; and
91.13 	(2) a public utility may elect to contribute money to the Healthy AIR program. Money 
91.14 	contributed to the fund will count toward the minimum low-income spending requirement 
91.15 	in paragraph (a) and toward the cap on preweatherization measures.
91.16 	(e) (g) The costs and benefits associated with any approved low-income gas or electric 
91.17 	conservation improvement program that is not cost-effective when considering the costs 
91.18 	and benefits to the utility may, at the discretion of the utility, be excluded from the calculation 
91.19 	of net economic benefits for purposes of calculating the financial incentive to the utility. 
91.20 	The energy and demand savings may, at the discretion of the utility, be applied toward the 
91.21 	calculation of overall portfolio energy and demand savings for purposes of determining 
91.22 	progress toward annual goals and in the financial incentive mechanism.

91.23 	Sec. 8. REPEALER.
 91.24 	Minnesota Statutes 2018, section 216B.241, subdivision 1b, is repealed.

91.25 	ARTICLE 10
91.26 	RENEWABLE DEVELOPMENT

91.27 	Section 1. Minnesota Statutes 2018, section 116C.779, subdivision 1, is amended to read:
91.28 		Subdivision 1.Renewable development account. (a) The renewable development 
91.29 	account is established as a separate account in the special revenue fund in the state treasury. 
91.30 	Appropriations and transfers to the account shall be credited to the account. Earnings, such 
91.31 	as interest, dividends, and any other earnings arising from assets of the account, shall be 
91.32 	credited to the account. Funds remaining in the account at the end of a fiscal year are not 
92.1 	canceled to the general fund but remain in the account until expended. The account shall 
92.2 	be administered by the commissioner of management and budget as provided under this 
92.3 	section.
92.4 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
92.5 	plant must transfer all funds in the renewable development account previously established 
92.6 	under this subdivision and managed by the public utility to the renewable development 
92.7 	account established in paragraph (a). Funds awarded to grantees in previous grant cycles 
92.8 	that have not yet been expended and unencumbered funds required to be paid in calendar 
92.9 	year 2017 under paragraphs (e) and (f) and (g), and sections 116C.7792 and 216C.41, are 
92.10 	not subject to transfer under this paragraph.
92.11 	(c) Except as provided in subdivision 1a, Beginning January 15, 2018 2020, and 
92.12 	continuing each January 15 thereafter, the public utility that owns the Prairie Island and 
92.13 	Monticello nuclear generating plant plants must transfer to the renewable development 
92.14 	account $500,000 each year for each dry cask containing spent fuel that is located at the 
92.15 	Prairie Island power plant for the following amounts each year the either plant is in operation, 
92.16 	and $7,500,000 each year the plant is not in operation: (1) $33,000,000 in 2020; (2) 
92.17 	$31,000,000 in 2021; and (3) $20,000,000 in 2022 and each year thereafter. If ordered by 
92.18 	the commission pursuant to paragraph (i).(h), the public utility must transfer $7,500,000 
92.19 	each year the Prairie Island plant is not in operation and $5,250,000 each year the Monticello 
92.20 	plant is not in operation. The fund transfer must be made if nuclear waste is stored in a dry 
92.21 	cask at the independent spent-fuel storage facility at Prairie Island or Monticello for any 
92.22 	part of a year.
92.23 	(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
92.24 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
92.25 	plant must transfer to the renewable development account $350,000 each year for each dry 
92.26 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
92.27 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 
92.28 	by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear 
92.29 	waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
92.30 	any part of a year.
92.31 	(e) (d) Each year, the public utility shall withhold from the funds transferred to the 
92.32 	renewable development account under paragraphs paragraph (c) and (d) the amount necessary 
92.33 	to pay its obligations for that calendar year under paragraphs (e), (f) and (g), (j), and (n),
92.34 	and sections 116C.7792 and 216C.41, for that calendar year.
93.1 	(f) (e) If the commission approves a new or amended power purchase agreement, the 
93.2 	termination of a power purchase agreement, or the purchase and closure of a facility under 
93.3 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
93.4 	the public utility subject to this section shall enter into a contract with the city in which the 
93.5 	poultry litter plant is located to provide grants to the city for the purposes of economic 
93.6 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
93.7 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
93.8 	by the public utility from funds withheld from the transfer to the renewable development 
93.9 	account, as provided in paragraphs (b) and (e) (d).
93.10 	(g)(f) If the commission approves a new or amended power purchase agreement, or the 
93.11 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
93.12 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
93.13 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
93.14 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
93.15 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
93.16 	30 days after the commission approves the new or amended power purchase agreement, or 
93.17 	the termination of the power purchase agreement, and on each June 1 thereafter through 
93.18 	2021, to assist the transition required by the new, amended, or terminated power purchase 
93.19 	agreement. The grant shall be paid by the public utility from funds withheld from the transfer 
93.20 	to the renewable development account as provided in paragraphs (b) and (e) (d).
93.21 	(h)(g) The collective amount paid under the grant contracts awarded under paragraphs 
93.22 	(e) and (f) and (g) is limited to the amount deposited into the renewable development account, 
93.23 	and its predecessor, the renewable development account, established under this section, that 
93.24 	was not required to be deposited into the account under Laws 1994, chapter 641, article 1, 
93.25 	section 10.
93.26 	(i) (h) After discontinuation of operation of the Prairie Island nuclear plant or the 
93.27 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
93.28 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
93.29 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
93.30 	facility for any year in which the commission finds, by the preponderance of the evidence, 
93.31 	that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 
93.32 	at the facility to a permanent or interim storage site out of the state. This determination shall 
93.33 	be made at least every two years.
93.34 	(i) The public utility must annually file with the commission a petition to recover through 
93.35 	a rider mechanism all funds it is required to transfer or withhold under paragraphs (c) to (f) 
94.1 	for the next year. The commission must approve a reasonable cost recovery schedule for 
94.2 	all funds under this paragraph.
94.3 	(j) On or before January 15 of each year, the public utility must file a petition with the 
94.4 	commission identifying the amounts withheld by the public utility the prior year under 
94.5 	paragraph (d) and the amount actually paid the prior year for obligations identified in 
94.6 	paragraph (d). If the amount actually paid is less than the amount withheld, the public utility 
94.7 	must deduct the surplus from the amount withheld for the current year under paragraph (d). 
94.8 	If the amount actually paid is more than the amount withheld, the public utility must add 
94.9 	the deficiency amount to the amount withheld for the current year under paragraph (d). Any 
94.10 	surplus remaining in the account after all programs identified in paragraph (d) are terminated 
94.11 	must be returned to the public utility's customers.
94.12 	(j) (k) Funds in the account may be expended only for any of the following purposes:
94.13 	(1) to stimulate research and development of renewable electric energy technologies;
94.14 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
94.15 	electricity storage, load control, and smart meter technology; and
94.16 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
94.17 	efficiency and flexibility.
94.18 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
94.19 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
94.20 	Prairie Island Indian community or its members.
94.21 	The utility that owns a nuclear generating plant is eligible to apply for grants under this 
94.22 	subdivision.
94.23 	(k) (l) For the purposes of paragraph (j) (k), the following terms have the meanings 
94.24 	given:
94.25 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
94.26 	(c), clauses (1), (2), (4), and (5); and
94.27 	(2) "grid modernization" means:
94.28 	(i) enhancing the reliability of the electrical grid;
94.29 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
94.30 	and
94.31 	(iii) increasing energy conservation opportunities by facilitating communication between 
94.32 	the utility and its customers through the use of two-way meters, control technologies, energy 
95.1 	storage and microgrids, technologies to enable demand response, and other innovative 
95.2 	technologies.
95.3 	(l) (m) A renewable development account advisory group that includes, among others, 
95.4 	representatives of the public utility and its ratepayers, and includes at least one representative 
95.5 	of the Prairie Island Indian community appointed by that community's tribal council, shall 
95.6 	develop recommendations on account expenditures. Members of the advisory group, other 
95.7 	than members appointed by the tribal council, must be chosen by the public utility. The 
95.8 	advisory group must design a request for proposal and evaluate projects submitted in response 
95.9 	to a request for proposals. The advisory group must utilize an independent third-party expert 
95.10 	to evaluate proposals submitted in response to a request for proposal, including all proposals 
95.11 	made by the public utility. A request for proposal for research and development under 
95.12 	paragraph (j) (k), clause (1), may be limited to or include a request to higher education 
95.13 	institutions located in Minnesota for multiple projects authorized under paragraph (j) (k), 
95.14 	clause (1). The request for multiple projects may include a provision that exempts the 
95.15 	projects from the third-party expert review and instead provides for project evaluation and 
95.16 	selection by a merit peer review grant system. In the process of determining request for 
95.17 	proposal scope and subject and in evaluating responses to request for proposals, the advisory 
95.18 	group must strongly consider, where reasonable, potential benefit to Minnesota citizens and 
95.19 	businesses and the utility's ratepayers.
95.20 	(n) The cost to acquire the services of the independent third-party expert described in 
95.21 	paragraph (m), and any other reasonable costs incurred to administer the advisory group 
95.22 	and its actions required by this section, must be paid from funds withheld by the public 
95.23 	utility under paragraph (d). The total amount withheld under this paragraph must not exceed 
95.24 	$125,000 each year.
95.25 	(m)(o) The advisory group shall submit funding recommendations to the public utility, 
95.26 	which has full and sole authority to determine which expenditures shall be submitted by 
95.27 	the advisory group to the legislature commission. The commission may approve proposed 
95.28 	expenditures, may disapprove proposed expenditures that it finds not to be in compliance 
95.29 	with this subdivision or otherwise not in the public interest, and may, if agreed to by the 
95.30 	public utility, modify proposed expenditures. The commission shall, by order, submit its 
95.31 	funding recommendations to the legislature as provided under paragraph (n) (p).
95.32 	(n) (p) The commission shall present its recommended appropriations from the account 
95.33 	to the senate and house of representatives committees with jurisdiction over energy policy 
95.34 	and finance annually by February 15. Expenditures from the account must be appropriated 
95.35 	by law. In enacting appropriations from the account, the legislature:
96.1 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
96.2 	a project recommended by the commission; and
96.3 	(2) may not appropriate money for a project the commission has not recommended 
96.4 	funding.
96.5 	(o) (q) A request for proposal for renewable energy generation projects must, when 
96.6 	feasible and reasonable, give preference to projects that are most cost-effective for a particular 
96.7 	energy source.
96.8 	(p) (r) The advisory group must annually, by February 15, report to the chairs and ranking 
96.9 	minority members of the legislative committees with jurisdiction over energy policy on 
96.10 	projects funded by the account under paragraph (k) for the prior year and all previous years. 
96.11 	The report must, to the extent possible and reasonable, itemize the actual and projected 
96.12 	financial benefit to the public utility's ratepayers of each project.
96.13 	(s) By June 1, 2019, and each June 1 thereafter, the public utility that owns the Prairie 
96.14 	Island nuclear electric generating plant must submit to the commissioner of management 
96.15 	and budget an estimate of the amount the public utility will deposit into the account January 
96.16 	15 the next year, based on the provisions of paragraphs (c) to (h) and any appropriations 
96.17 	made from the fund during the most recent legislative session.
96.18 	(q) (t) By February 1 , 2018 June 30, 2019, and each February 1June 30 thereafter, the 
96.19 	commissioner of management and budget shall must estimate the balance in the account as 
96.20 	of the following January 31, taking into account the balance in the account as of June 30 
96.21 	and the information provided under paragraph (r). By July 15, 2019, and each July 15 
96.22 	thereafter, the commissioner of management and budget must submit a written report 
96.23 	regarding the availability of funds in and obligations of the account to the chairs and ranking 
96.24 	minority members of the senate and house committees with jurisdiction over energy policy 
96.25 	and finance, the public utility, and the advisory group. If more than $15,000,000 is estimated 
96.26 	to be available in the account as of January 31, the advisory group must, by January 31 the 
96.27 	next year, issue a request for proposals to initiate a grant cycle for the purposes of paragraph 
96.28 	(k).
96.29 	(r) (u) A project receiving funds from the account must produce a written final report 
96.30 	that includes sufficient detail for technical readers and a clearly written summary for 
96.31 	nontechnical readers. The report must include an evaluation of the project's financial, 
96.32 	environmental, and other benefits to the state and the public utility's ratepayers.
97.1 	(s) (v) Final reports, any mid-project status reports, and renewable development account 
97.2 	financial reports must be posted online on a public website designated by the commissioner 
97.3 	of commerce.
97.4 	(t) (w) All final reports must acknowledge that the project was made possible in whole 
97.5 	or part by the Minnesota renewable development account, noting that the account is financed 
97.6 	by the public utility's ratepayers.
97.7 	(u) (x) Of the amount in the renewable development account, priority must be given to 
97.8 	making the payments required under section 216C.417.

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

97.10 	Sec. 2. [116J.55] COMMUNITY ENERGY TRANSITION GRANTS.
97.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
97.12 	subdivision have the meanings given.
97.13 	(b) "Advisory council" means the Community Energy Transition Grant Advisory Council 
97.14 	created in this section.
97.15 	(c) "Commissioner" means the commissioner of employment and economic development.
97.16 	(d) "Eligible community" means a county, municipality, or tribal government located 
97.17 	within a county that hosts an investor-owned electric generating plant powered by coal, 
97.18 	nuclear energy, or natural gas.
97.19 		Subd. 2.Establishment. The commissioner shall establish a community energy transition 
97.20 	grant program to award grants to promote economic development in eligible communities.
97.21 		Subd. 3.Funding. (a) A community energy transition account is created in the special 
97.22 	revenue fund in the state treasury. Money in the account is appropriated to the commissioner 
97.23 	for grants as provided in this section and must be expended only as provided in this section.
97.24 	(b) On July 1, 2020, $500,000 and then on July 1, 2021, and on each July 1 thereafter, 
97.25 	$1,000,000 is transferred from the renewable development account under section 116C.779 
97.26 	to the commissioner for deposit in the community energy transition account. This transfer 
97.27 	must be made before any other payments or transfers required under section 116C.779.
97.28 	(c) Grants to eligible communities in which an investor-owned electric generating plant 
97.29 	is located but has not been scheduled for retirement or decommissioning may not exceed 
97.30 	$1,000,000. Grants to eligible communities in which an investor-owned electric generating 
97.31 	plant is located and is scheduled for retirement or decommissioning may not exceed 
97.32 	$5,000,000.
98.1 	(d) Unless amounts are otherwise appropriated for administrative costs, the commissioner 
98.2 	of employment and economic development may retain up to five percent of the amount 
98.3 	appropriated for grants under this section for administrative and personnel costs.
98.4 		Subd. 4.Cancellation of grant; return of grant money. If after five years, the 
98.5 	commissioner determines that a project has not proceeded in a timely manner and is unlikely 
98.6 	to be completed, the commissioner must cancel the grant and require the grantee to return 
98.7 	all grant money awarded for that project. Grant money returned to the commissioner is 
98.8 	appropriated to the commissioner to make additional grants under this section.
98.9 		Subd. 5.Grants to eligible communities. (a) The commissioner must award grants to 
98.10 	eligible communities through a competitive grant process. Eligible communities must be 
98.11 	located in the service territory of the public utility subject to section 116C.779.
98.12 	(b) To receive grant funds, an eligible community must submit a written application to 
98.13 	the commissioner, using a form developed by the commissioner.
98.14 	(c) The commissioner must consider the recommendations of the Community Energy 
98.15 	Transition Grant Advisory Council before selecting grant recipients.
98.16 	(d) Grants must be used to plan for or address the economic and social impact on the 
98.17 	community of plant retirement or transition. Specific uses may include but are not limited 
98.18 	to:
98.19 	(1) research;
98.20 	(2) planning;
98.21 	(3) studies;
98.22 	(4) capital improvements; and
98.23 	(5) incentives for businesses to open, relocate, or expand.
98.24 		Subd. 6.Priorities. (a) In evaluating projects, the advisory council shall give priority 
98.25 	to eligible projects with one or more of the following characteristics:
98.26 	(1) the potential of the eligible community to attract a viable business;
98.27 	(2) the potential increase in the property tax base of the eligible community, considered 
98.28 	relative to the fiscal impact of the retirement of the electric generating plant located in the 
98.29 	eligible community;
98.30 	(3) the extent to which the grant will assist the eligible community in addressing the 
98.31 	fiscal and social impacts of plant retirement; and
99.1 	(4) the extent to which the grant will help the state transition away from fossil fuels.
99.2 	(b) The factors listed in paragraph (a) are not ranked in order of priority. The 
99.3 	commissioner may weigh each factor, depending upon the facts and circumstances, as 
99.4 	appropriate. The commissioner may consider other factors that support the goals of this 
99.5 	program.
99.6 		Subd. 7.Advisory council. (a) By September 1, 2019, the commissioner shall appoint 
99.7 	representatives to a Community Energy Transition Grant Advisory Council composed of 
99.8 	the following members:
99.9 	(1) the commissioner of employment and economic development, or a designee;
99.10 	(2) the commissioner of transportation, or a designee;
99.11 	(3) the commissioner of the Minnesota Pollution Control Agency, or a designee;
99.12 	(4) the commissioner of natural resources, or a designee;
99.13 	(5) the commissioner of commerce, or a designee;
99.14 	(6) one representative of the Prairie Island Indian community;
99.15 	(7) two representatives of workers at investor-owned electric generating plants powered 
99.16 	by coal, nuclear energy, or natural gas; and
99.17 	(8) four representatives of eligible communities, of which, two must be counties, two 
99.18 	must be municipalities, at least one must host a coal plant, at least one must host a nuclear 
99.19 	plant, and at least one must host a natural gas plant.
99.20 	After the initial appointments, members of the advisory council shall be appointed no later 
99.21 	than January 15 of every odd-numbered year and shall serve until January 15 of the next 
99.22 	odd-numbered year. Members may be removed and vacancies filled as provided in section 
99.23 	15.059, subdivision 4. Appointed members are eligible for reappointment.
99.24 	(b) The advisory council shall elect a chair and other officers at its first meeting.
99.25 	(c) The advisory council shall review applications for community energy transition 
99.26 	grants and make recommendations to the commissioner of employment and economic 
99.27 	development.
99.28 	(d) The commissioner of employment and economic development shall select projects 
99.29 	from the recommendations made by the advisory council under this subdivision with 
99.30 	consideration given to the priorities listed in subdivision 6.
100.1 	(e) A member of the advisory council must not participate in the consideration of an 
100.2 	application from the community that member represents.
100.3 	(f) Members of the advisory council serve without compensation or payment of expenses.
100.4 	(g) The commissioner of employment and economic development or the commissioner's 
100.5 	designee shall provide meeting space and administrative services for the advisory council. 
100.6 	All costs necessary to support the advisory council's operations must be absorbed using 
100.7 	existing appropriations available to the commissioner.
100.8 	(h) The advisory council is subject to chapter 13D, but may close a meeting to discuss 
100.9 	sensitive private business information included in grant applications. Data related to an 
100.10 	application for a grant submitted to the advisory council is governed by section 13.599.
100.11 	(i) The commissioner shall convene the first meeting of the advisory council no later 
100.12 	than September 1, 2019.
100.13 		Subd. 8.Reports to the legislature. By January 15, 2021, and each January 15 thereafter, 
100.14 	the commissioner must submit a report to the chairs and ranking minority members of the 
100.15 	committees of the house of representatives and the senate having jurisdiction over economic 
100.16 	development that details the use of grant funds. When possible, this report must include 
100.17 	data on the economic impact achieved by each grant.

100.18 	Sec. 3. Minnesota Statutes 2018, section 216B.16, is amended by adding a subdivision to 
100.19 	read:
100.20 		Subd. 7e.Energy storage system pilot projects. (a) A public utility may petition the 
100.21 	commission under this section to recover costs associated with the implementation of an 
100.22 	energy storage system pilot project. As part of the petition, the public utility must submit a 
100.23 	report to the commission containing, at a minimum, the following information regarding 
100.24 	the proposed energy storage system pilot project:
100.25 	(1) the storage technology utilized;
100.26 	(2) the energy storage capacity and the duration of output at that capacity;
100.27 	(3) the proposed location;
100.28 	(4) the purchase and installation costs;
100.29 	(5) how the project will interact with existing distributed generation resources on the 
100.30 	utility's grid; and
101.1 	(6) the goals the project proposes to achieve, which may include controlling frequency 
101.2 	or voltage, mitigating transmission congestion, providing emergency power supplies during 
101.3 	outages, reducing curtailment of existing renewable energy generators, and reducing peak 
101.4 	power costs.
101.5 	(b) A utility may petition the commission to approve a rate schedule that provides for 
101.6 	the automatic adjustment of charges to recover prudently incurred investments, expenses, 
101.7 	or costs associated with energy storage system pilot projects approved by the commission 
101.8 	under this subdivision. A petition filed under this subdivision must include the elements 
101.9 	listed in section 216B.1645, subdivision 2a, paragraph (b), clauses (1) to (4), and must 
101.10 	describe the benefits of the pilot project.
101.11 	(c) The commission may approve, or approve as modified, a rate schedule filed under 
101.12 	this subdivision. The rate schedule filed by the public utility may include the elements listed 
101.13 	in section 216B.1645, subdivision 2a, paragraph (a), clauses (1) to (5).
101.14 	(d) For each pilot project that the commission has found to be in the public interest, the 
101.15 	commission must make its determination on the specific amounts that are eligible for 
101.16 	recovery under the approved rate schedule within 90 days of final approval of the specific 
101.17 	pilot program or within 90 days of the public utility filing for approval of cost recovery for 
101.18 	the specific pilot program, whichever is later.
101.19 	(e) Nothing in this subdivision prohibits or deters the deployment of energy storage 
101.20 	systems.
101.21 	(f) For the purposes of this subdivision:
101.22 	(1) "energy storage system" has the meaning given in section 216B.2422, subdivision 
101.23 	1; and
101.24 	(2) "pilot project" means a project that is owned, operated, and controlled by a public 
101.25 	utility to optimize safe and reliable system operations and is deployed at a limited number 
101.26 	of locations in order to assess the technical and economic effectiveness of its operations.

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

101.28 	Sec. 4. Minnesota Statutes 2018, section 216B.2422, subdivision 1, is amended to read:
101.29 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
101.30 	subdivision have the meanings given them.
102.1 	(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more 
102.2 	of electric power and serving, either directly or indirectly, the needs of 10,000 retail 
102.3 	customers in Minnesota. Utility does not include federal power agencies.
102.4 	(c) "Renewable energy" means electricity generated through use of any of the following 
102.5 	resources:
102.6 	(1) wind;
102.7 	(2) solar;
102.8 	(3) geothermal;
102.9 	(4) hydro;
102.10 	(5) trees or other vegetation;
102.11 	(6) landfill gas; or
102.12 	(7) predominantly organic components of wastewater effluent, sludge, or related 
102.13 	by-products from publicly owned treatment works, but not including incineration of 
102.14 	wastewater sludge.
102.15 	(d) "Resource plan" means a set of resource options that a utility could use to meet the 
102.16 	service needs of its customers over a forecast period, including an explanation of the supply 
102.17 	and demand circumstances under which, and the extent to which, each resource option 
102.18 	would be used to meet those service needs. These resource options include using, 
102.19 	refurbishing, and constructing utility plant and equipment, buying power generated by other 
102.20 	entities, controlling customer loads, and implementing customer energy conservation.
102.21 	(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating 
102.22 	resource of 30 megawatts or greater.
102.23 	(f) "Energy storage system" means a commercially available technology that:
102.24 	(1) uses mechanical, chemical, or thermal processes to:
102.25 	(i) store energy, including energy generated from renewable resources and energy that 
102.26 	would otherwise be wasted, and deliver the stored energy for use at a later time; or
102.27 	(ii) store thermal energy for direct use for heating or cooling at a later time in a manner 
102.28 	that reduces the demand for electricity at the later time;
102.29 	(2) is composed of stationary equipment;
103.1 	(3) if being used for electric grid benefits, is operationally visible and capable of being 
103.2 	controlled by the distribution or transmission entity managing it, to enable and optimize the 
103.3 	safe and reliable operation of the electric system; and
103.4 	(4) achieves any of the following:
103.5 	(i) reduces peak or electrical demand;
103.6 	(ii) defers the need or substitutes for an investment in electric generation, transmission, 
103.7 	or distribution assets;
103.8 	(iii) improves the reliable operation of the electrical transmission or distribution systems, 
103.9 	while ensuring transmission or distribution needs are not created; or
103.10 	(iv) lowers customer costs by storing energy when the cost of generating or purchasing 
103.11 	it is low and delivering it to customers when those costs are high.

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

103.13 	Sec. 5. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
103.14 	to read:
103.15 		Subd. 7.Energy storage systems assessment. (a) Each public utility required to file a 
103.16 	resource plan under subdivision 2 must include in the filing an assessment of energy storage 
103.17 	systems that analyzes how the deployment of energy storage systems contributes to:
103.18 	(1) meeting identified generation and capacity needs; and
103.19 	(2) evaluating ancillary services.
103.20 	(b) The assessment must employ appropriate modeling methods to enable the analysis 
103.21 	required in paragraph (a).

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

103.23 	Sec. 6. [216C.375] SOLAR FOR SCHOOLS PROGRAM.
103.24 		Subdivision 1.Definitions. (a) For the purposes of this section and section 216C.376, 
103.25 	the following terms have the meanings given them.
103.26 	(b) "Developer" means an entity that installs a solar energy system on a school building 
103.27 	that has been awarded a grant under this section.
103.28 	(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
104.1 	(d)"School" means a school that operates as part of an independent or special school 
104.2 	district.
104.3 	(e) "School district" means an independent or special school district.
104.4 	(f) "Solar energy system" means photovoltaic or solar thermal devices.
104.5 		Subd. 2.Establishment; purpose. A solar for schools program is established in the 
104.6 	Department of Commerce. The purpose of the program is to provide grants to stimulate the 
104.7 	installation of solar energy systems on or adjacent to school buildings by reducing their 
104.8 	cost, and to enable schools to use the solar energy system as a teaching tool that can be 
104.9 	integrated into the school's curriculum.
104.10 		Subd. 3.Establishment of account. (a) A solar for schools program account is 
104.11 	established in the special revenue fund. Money received from the general fund must be 
104.12 	transferred to the commissioner of commerce and credited to the account. Money deposited 
104.13 	in the account remains in the account until expended, and does not cancel to the general 
104.14 	fund.
104.15 	(b) When a grant is awarded under this section, the commissioner shall reserve the grant 
104.16 	amount in the account.
104.17 		Subd. 4.Expenditures. (a) Money in the account may be used only:
104.18 	(1) for grant awards made under this section; and
104.19 	(2) to pay the reasonable costs incurred by the department to administer this section.
104.20 	(b) Grant awards made with funds in the account are to be used only for grants for solar 
104.21 	energy systems installed on or adjacent to school buildings receiving retail electric service 
104.22 	from a utility that is not subject to section 116C.779, subdivision 1.
104.23 		Subd. 5.Eligible system. (a) A grant may be awarded to a school under this section 
104.24 	only if the solar energy system that is the subject of the grant:
104.25 	(1) is installed on or adjacent to the school building that will consume the electricity 
104.26 	generated by the solar energy system, on property within the service territory of the utility 
104.27 	currently providing electric service to the school building; and
104.28 	(2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the 
104.29 	estimated annual electricity consumption of the school building at which the solar energy 
104.30 	system is proposed to be installed.
104.31 	(b) A school district that receives a rebate or other financial incentive under section 
104.32 	216B.241 for a solar energy system and that demonstrates considerable need for financial 
105.1 	assistance, as determined by the commissioner, is eligible for a grant under this section for 
105.2 	the same solar energy system.
105.3 		Subd. 6.Application process. (a) The commissioner shall issue a request for proposals 
105.4 	to utilities, schools, and developers who may wish to apply for a grant under this section 
105.5 	on behalf of a school.
105.6 	(b) A utility or developer must submit an application to the commissioner on behalf of 
105.7 	a school on a form prescribed by the commissioner. The form must include, at a minimum, 
105.8 	the following information:
105.9 	(1) the capacity of the proposed solar energy system and the amount of electricity that 
105.10 	is expected to be generated;
105.11 	(2) the current energy demand of the school building on which the solar energy generating 
105.12 	system is to be installed, and information regarding any distributed energy resource, including 
105.13 	subscription to a community solar garden, that currently provides electricity to the school 
105.14 	building;
105.15 	(3) a description of any solar thermal devices proposed as part of the solar energy system;
105.16 	(4) the total cost of purchasing and installing the solar energy system, and its life-cycle 
105.17 	cost, including removal and disposal of system at the end of its life;
105.18 	(5) a copy of the proposed contract agreement between the school and the public utility 
105.19 	or developer that includes provisions addressing responsibility for maintenance of the solar 
105.20 	energy system;
105.21 	(6) the school's plan to make the solar energy system serve as a visible learning tool for 
105.22 	students, teachers, and visitors to the school, including how the solar energy system may 
105.23 	be integrated into the school's curriculum;
105.24 	(7) information that demonstrates the level of need of the school district for financial 
105.25 	assistance available under this section;
105.26 	(8) information that demonstrates the readiness of the school to implement the project, 
105.27 	including, but not limited to, the availability of the site on which the solar energy system 
105.28 	is to be installed, and the level of the school's engagement with the utility providing electric 
105.29 	service to the school building on which the solar energy system is to be installed on issues 
105.30 	relevant to the implementation of the project, including metering and other issues;
105.31 	(9) with respect to the installation and operation of the solar energy system, the 
105.32 	willingness and ability of the developer or the public utility to:
106.1 	(i) pay employees and contractors a prevailing wage rate, as defined in section 177.42, 
106.2 	subdivision 6; and
106.3 	(ii) adhere to the provisions of section 177.43;
106.4 	(10) how the developer or public utility plans to reduce the school's initial capital expense 
106.5 	for the purchase and installation of the solar energy system, and to provide financial benefits 
106.6 	to the school from the utilization of federal and state tax credits, utility incentives, and other 
106.7 	financial incentives; and
106.8 	(11) any other information deemed relevant by the commissioner.
106.9 	(c) The commissioner shall administer an open application process under this section at 
106.10 	least twice annually.
106.11 	(d) The commissioner shall develop administrative procedures governing the application 
106.12 	and grant award process.
106.13 		Subd. 7.Energy conservation review. At the commissioner's request, a school awarded 
106.14 	a grant under this section shall provide the commissioner information regarding energy 
106.15 	conservation measures implemented at the school building at which the solar energy system 
106.16 	is to be installed. The commissioner may make recommendations to the school regarding 
106.17 	cost-effective conservation measures it can implement and may provide technical assistance 
106.18 	and direct the school to available financial assistance programs.
106.19 		Subd. 8.Technical assistance. The commissioner shall provide technical assistance to 
106.20 	schools to develop and execute projects under this section.
106.21 		Subd. 9.Grant payments. The commissioner shall award a grant from the account 
106.22 	established under subdivision 3 to a school for the necessary costs associated with the 
106.23 	purchase and installation of a solar energy system. The amount of the grant shall be based 
106.24 	on the commissioner's assessment of the school's need for financial assistance.
106.25 		Subd. 10.Limitations. (a) No more than 50 percent of the grant payments awarded to 
106.26 	schools under this section may be awarded to schools where the proportion of students 
106.27 	eligible for free and reduced-price lunch under the National School Lunch Program is less 
106.28 	than 50 percent.
106.29 	(b) No more than ten percent of the total amount of grants awarded under this section 
106.30 	may be awarded to schools that are part of the same school district.
106.31 		Subd. 11.Application deadline. No application may be submitted under this section 
106.32 	after December 31, 2023.

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

107.2 	Sec. 7. [216C.376] SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY 
107.3 	SERVICE TERRITORY.
107.4 		Subdivision 1.Establishment; purpose. The utility subject to section 116C.779 shall 
107.5 	operate a program to develop, and to supplement with additional funding, financial 
107.6 	arrangements that allow schools to benefit from state and federal tax and other financial 
107.7 	incentives that schools are ineligible to receive directly in order to enable schools to install 
107.8 	and operate solar energy systems that can be used as teaching tools and integrated into the 
107.9 	school curriculum.
107.10 		Subd. 2.Required plan. (a) By October 1, 2019, the public utility must file a plan for 
107.11 	the solar for schools program with the commissioner. The plan must contain but is not 
107.12 	limited to the following elements:
107.13 	(1) a description of how entities that are eligible to take advantage of state and federal 
107.14 	tax and other financial incentives that reduce the cost of purchasing, installing, and operating 
107.15 	a solar energy system that schools are ineligible to take advantage of directly, can share a 
107.16 	portion of those financial benefits with schools at which a solar energy system will be 
107.17 	installed;
107.18 	(2) a description of how the public utility will utilize funds appropriated to the program 
107.19 	under this section to provide additional financial assistance to schools at which a solar 
107.20 	energy system will be installed;
107.21 	(3) certification that the financial assistance provided under this section to a school by 
107.22 	the public utility must include the full value of the renewable energy certificates associated 
107.23 	with the generation of electricity by the solar energy system receiving financial assistance 
107.24 	under this section over the lifetime of the solar energy system;
107.25 	(4) an estimate of the amount of financial assistance that the public utility will provide 
107.26 	to a school under clauses (1) to (3) on a per kilowatt-hour produced basis, and the length 
107.27 	of time financial assistance will be provided;
107.28 	(5) certification that the transaction between the public utility and the school for electricity 
107.29 	is the buy-all/sell-all method by which the public utility will charge the school for all 
107.30 	electricity the school consumes at the applicable retail rate schedule for sales to the school 
107.31 	based on the school's customer class, and shall credit or pay the school at the rate established 
107.32 	in subdivision 5;
108.1 	(6) administrative procedures governing the application and financial benefit award 
108.2 	process, and the costs the public utility and the department are projected to incur to administer 
108.3 	the program;
108.4 	(7) the public utility's proposed process for periodic reevaluation and modification of 
108.5 	the program; and
108.6 	(8) any additional information required by the commissioner.
108.7 	(b) The public utility may not implement the program until the commissioner approves 
108.8 	the public utility's plan submitted under this subdivision. The commissioner shall approve 
108.9 	a plan under this subdivision that the commissioner determines to be in the public interest 
108.10 	no later than December 31, 2019. Any proposed modifications to the plan approved under 
108.11 	this subdivision must be approved by the commissioner.
108.12 		Subd. 3.System eligibility. A solar energy system is eligible to receive financial benefits 
108.13 	under this section if it meets all of the following conditions:
108.14 	(1) the solar energy system must be located on or adjacent to a school building receiving 
108.15 	retail electric service from the public utility and completely located within the public utility's 
108.16 	electric service territory, provided that any land situated between the school building and 
108.17 	the site where the solar energy system is installed is owned by the school district in which 
108.18 	the school building operates; and
108.19 	(2) the total aggregate nameplate capacity of all distributed generation serving the school 
108.20 	building, including any subscriptions to a community solar garden under section 216B.1641, 
108.21 	may not exceed the lesser of one megawatt (alternating current) or 120 percent of the average 
108.22 	annual electric energy consumption of the school building.
108.23 		Subd. 4.Application process. (a) A school seeking financial assistance under this section 
108.24 	must submit an application to the public utility, including a plan for how the school will 
108.25 	use the solar energy system as a visible learning tool for students, teachers, and visitors to 
108.26 	the school, and how the solar energy system may be integrated into the school's curriculum.
108.27 	(b) The public utility shall award financial assistance under this section on a first-come, 
108.28 	first-served basis.
108.29 	(c) The public utility shall discontinue accepting applications under this section after all 
108.30 	funds appropriated under subdivision 5 are allocated to program participants, including 
108.31 	funds from canceled projects.
108.32 		Subd. 5.Benefits information. Before signing an agreement with the public utility to 
108.33 	receive financial assistance under this section, a school must obtain from the developer and 
109.1 	provide to the public utility information the developer shared with potential investors in the 
109.2 	project regarding future financial benefits to be realized from installation of a solar energy 
109.3 	system at the school, and potential financial risks.
109.4 		Subd. 6.Purchase rate; cost recovery; renewable energy credits. (a) The public utility 
109.5 	shall purchase all of the electricity generated by a solar energy system receiving financial 
109.6 	assistance under this section at a rate of $.105 per kilowatt-hour generated.
109.7 	(b) Payments by the public utility of the rate established under this subdivision to a 
109.8 	school receiving financial assistance under this section are fully recoverable by the public 
109.9 	utility through the public utility's fuel clause adjustment.
109.10 	(c) The renewable energy credits associated with the electricity generated by a solar 
109.11 	energy system installed under this section are the property of the public utility that is subject 
109.12 	to this section.
109.13 		Subd. 7.Limitation. (a) No more than 50 percent of the financial assistance provided 
109.14 	by the public utility to schools under this section may be provided to schools where the 
109.15 	proportion of students eligible for free and reduced-price lunch under the National School 
109.16 	Lunch Program is less than 50 percent.
109.17 	(b) No more than ten percent of the total amount of financial assistance provided by the 
109.18 	public utility to schools under this section may be provided to schools that are part of the 
109.19 	same school district.
109.20 		Subd. 8.Technical assistance. The commissioner shall provide technical assistance to 
109.21 	schools to develop and execute projects under this section.
109.22 		Subd. 9.Application deadline. No application may be submitted under this section 
109.23 	after December 31, 2023.

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

109.25 	Sec. 8. [216C.45] ELECTRIC VEHICLE CHARGING STATION REVOLVING 
109.26 	LOAN PROGRAM.
109.27 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
109.28 	subdivision have the meanings given them.
109.29 	(b) "Borrower" means the state, counties, cities, other governmental entities, nonprofit 
109.30 	organizations, and private businesses eligible under this section to apply for and receive 
109.31 	loans from the electric vehicle charging station revolving loan fund.
109.32 	(c) "Commissioner" means the commissioner of commerce.
110.1 	(d) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
110.2 	(e) "Electric vehicle charging station" means an electric component assembly or cluster 
110.3 	of component assemblies designed specifically to charge an electric vehicle battery by 
110.4 	transferring electric energy to a battery or a storage device in the electric vehicle.
110.5 	(f) "Loan" means financial assistance provided for all or part of the cost of an electric 
110.6 	vehicle charging station project, including money for design, development, purchase, or 
110.7 	installation.
110.8 		Subd. 2.Revolving loan fund. The commissioner must establish an electric vehicle 
110.9 	charging station revolving loan fund to make loans for all or part of the cost of an electric 
110.10 	vehicle charging station project installed in Minnesota.
110.11 		Subd. 3.Administration. (a) The commissioner must establish a minimum interest rate 
110.12 	for loans to ensure that necessary loan administration costs are covered. The minimum 
110.13 	interest rate must not exceed:
110.14 	(1) one percent interest for a loan to a borrower that is the state, other governmental 
110.15 	entity, or a nonprofit organization; or
110.16 	(2) three percent interest for a loan to a borrower that is a private business.
110.17 	(b) Loan repayment of principal and loan interest payments must be paid to the department 
110.18 	for deposit in the revolving loan fund for subsequent distribution or use consistent with the 
110.19 	requirements under this section.
110.20 	(c) When a loan is repaid, 60 percent of the loan repayment must be retained in the 
110.21 	electric vehicle charging station revolving loan fund. The remaining 40 percent must be 
110.22 	transferred to the renewable development account under section 116C.779, until the total 
110.23 	amount transferred to the renewable development account equals $1,500,000.
110.24 		Subd. 4.Applications. (a) A loan applicant must submit an application to the 
110.25 	commissioner on forms prescribed by the commissioner.
110.26 	(b) The applicant must provide the following information:
110.27 	(1) the estimated cost of the project and the amount of the loan sought;
110.28 	(2) other possible sources of funding in addition to loans sought from the electric vehicle 
110.29 	charging station revolving loan fund;
110.30 	(3) the proposed methods and sources of funds to repay loans received; and
111.1 	(4) information demonstrating the financial status and ability of the borrower to repay 
111.2 	loans.
111.3 		Subd. 5.Use of loan funds. (a) Loans made with funds from the electric vehicle charging 
111.4 	station revolving loan fund may be used to design, develop, purchase, and install electric 
111.5 	vehicle charging stations at locations in Minnesota.
111.6 	(b) An electric vehicle charging station project receiving loan funds under this section 
111.7 	must be available for public use.
111.8 		Subd. 6.Evaluation of projects. (a) The commissioner must consider the following 
111.9 	information when evaluating a project:
111.10 	(1) a description of the nature and purpose of the proposed project, including an 
111.11 	explanation of the need for the project and the reasons why the project is in the public 
111.12 	interest;
111.13 	(2) the relationship of the project to the local area's needs;
111.14 	(3) the estimated project cost and the loan amount sought;
111.15 	(4) proposed sources of funding in addition to the loan sought from the electric vehicle 
111.16 	charging station revolving loan fund;
111.17 	(5) the need for the project as part of the overall transportation system; and
111.18 	(6) the overall economic impact of the project.
111.19 	(b) When evaluating projects, the commissioner may consult with the commissioner of 
111.20 	transportation regarding the electric vehicle charging needs throughout the state.
111.21 		Subd. 7.Maximum loan amount. The maximum loan amount under this section is 
111.22 	$30,000 per electric vehicle charging station project.
111.23 		Subd. 8.User fees. As a condition of accepting a loan under this section, a borrower 
111.24 	must agree to charge a per hour user fee for use of an electric vehicle charging station funded 
111.25 	by the loan. A borrower must use at least 25 percent of the fees collected to repay the loan 
111.26 	and pay for expenses associated with operating and maintaining the electric vehicle charging 
111.27 	station funded by the loan.
111.28 		Subd. 9.Report to legislature. On or before March 15, 2020, and each March 15 
111.29 	thereafter, the commissioner must report to the chairs and ranking minority members of the 
111.30 	house of representatives and senate committees with jurisdiction over energy and 
111.31 	transportation policy and finance regarding the revolving loan program. The report must 
111.32 	include (1) a description of the projects and an account of loans made from the revolving 
112.1 	loan fund during the preceding calendar year, (2) the revolving loan fund balance, and (3) 
112.2 	an explanation of administrative expenses.

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

112.4 	Sec. 9. PRAIRIE ISLAND NET ZERO PROJECT.
112.5 		Subdivision 1.Program established. The Prairie Island net zero project is established 
112.6 	with the goal of the Prairie Island Indian community developing an energy system that 
112.7 	results in net zero emissions.
112.8 		Subd. 2.Grant. The commissioner of employment and economic development must 
112.9 	enter into a grant contract with the Prairie Island Indian community to provide the amount 
112.10 	appropriated under section 12 to stimulate research, development, and implementation of 
112.11 	renewable energy projects benefiting the Prairie Island Indian community or its members. 
112.12 	Any examination conducted by the commissioner of employment and economic development 
112.13 	to determine the sufficiency of the financial stability and capacity of the Prairie Island Indian 
112.14 	community to carry out the purposes of this grant is limited to the Community Services 
112.15 	Department of the Prairie Island Indian community.
112.16 		Subd. 3.Plan; report. The Prairie Island Indian community must file a plan with the 
112.17 	commissioner of employment and economic development no later than July 1, 2019, 
112.18 	describing the Prairie Island net zero project elements and implementation strategy. The 
112.19 	Prairie Island Indian community must file a report on July 1, 2020, and each July 1 thereafter 
112.20 	until the project is complete, describing the progress made in implementing the project and 
112.21 	the uses of expended funds. A final report must be completed within 90 days of the date 
112.22 	the project is complete.

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

112.24 	Sec. 10. BIOMASS BUSINESS COMPENSATION.
112.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
112.26 	the meanings given.
112.27 	(b) "Biomass plant" means the biomass plant identified under Minnesota Statutes, section 
112.28 	116C.779, subdivision 1, paragraph (f).
112.29 	(c) "Early termination" means the early termination of the power purchase agreement 
112.30 	authorized under Minnesota Statutes, section 216B.2424, subdivision 9, with the biomass 
112.31 	plant.
113.1 	(d) "Operating income" means a business's revenue minus its operating expenses.
113.2 		Subd. 2.Office of Administrative Hearings; claims process. (a) The chief 
113.3 	administrative law judge of the Office of Administrative Hearings must assign an 
113.4 	administrative law judge to administer a claims award process to compensate businesses 
113.5 	negatively affected by the early termination. The chief administrative law judge may develop 
113.6 	a process, prescribe forms, identify documentation affected businesses must submit with 
113.7 	claims, and issue awards to eligible businesses consistent with this section. The process 
113.8 	must allow, but not require, an authorized representative from each business that applies 
113.9 	for compensation to appear in person before the assigned administrative law judge to provide 
113.10 	evidence in support of the business's claim.
113.11 	(b) The chief administrative law judge may contract with and use the services of financial 
113.12 	or other consultants to examine financial documentation presented by claimants or otherwise 
113.13 	assist in the evaluation and award of claims.
113.14 	(c) Records submitted to the Office of Administrative Hearings as part of the claims 
113.15 	process constitute business data under Minnesota Statutes, section 13.591.
113.16 	(d) An award made under this section is final and is not subject to judicial review.
113.17 	(e) An award made under this section does not constitute an admission of liability by 
113.18 	the state for any damages or other losses suffered by a business affected by the early 
113.19 	termination.
113.20 		Subd. 3.Eligibility. To be eligible for an award of compensation, an affected business 
113.21 	must meet the following criteria:
113.22 	(1) as of May 1, 2017, the affected business was operating under the terms of a valid 
113.23 	written contract, or an oral contract that is sufficiently supported by business records, with 
113.24 	the company operating the biomass plant or the fertilizer plant integrated with the biomass 
113.25 	plant to supply or manage material for, or receive material from, the biomass plant or the 
113.26 	fertilizer plant integrated with the biomass plant;
113.27 	(2) the affected business is located in the state; and
113.28 	(3) as the result of the early termination, the affected business suffered:
113.29 	(i) decreased operating income; or
113.30 	(ii) the loss of value of investments in real or personal property essential to its business 
113.31 	operations with the biomass plant.
114.1 		Subd. 4.Types of claims. (a) An eligible business may make claims for a compensation 
114.2 	award based on either or both:
114.3 	(1) decreased operating income; or
114.4 	(2) the loss of value of investments in real or personal property essential to its business 
114.5 	operations with the biomass plant.
114.6 	(b) To establish and quantify a claim for decreased operating income, an eligible business 
114.7 	must:
114.8 	(1) demonstrate its operating income over the past five years derived from supplying or 
114.9 	managing material for, or receiving material from, the biomass plant;
114.10 	(2) present evidence of any alternative business opportunities it has pursued or could 
114.11 	pursue to mitigate the loss of revenue from the termination of its contract with the biomass 
114.12 	plant; and
114.13 	(3) demonstrate the amount that the business's annual operating income, including 
114.14 	operating income from any alternative business opportunities, after the termination of the 
114.15 	business's contract with the biomass plant is less than the five-year average of the business's 
114.16 	annual operating income before the early termination.
114.17 	(c) To establish and quantify a loss of value of investments in real or personal property 
114.18 	claim, an eligible business must provide sufficient evidence of:
114.19 	(1) the essential nature of the investment made in the property to fulfill the contract with 
114.20 	the biomass plant;
114.21 	(2) the extent to which the eligible business is able to repurpose the property for another 
114.22 	productive use after the early termination, including but not limited to the use, sales, salvage, 
114.23 	or scrap value of the property for which the loss is claimed; and
114.24 	(3) the value of the eligible business's nondepreciated investment in the property.
114.25 		Subd. 5.Limitations on awards. (a) A compensation award for a decreased operating 
114.26 	income claim must not exceed the amount calculated under subdivision 4, paragraph (b), 
114.27 	clause (3), multiplied by two.
114.28 	(b) The use, sales, salvage, or scrap value of the property for which a loss is claimed 
114.29 	must be deducted from a compensation award for a loss of value of investments in real or 
114.30 	personal property claim.
115.1 	(c) A payment received from business interruption insurance policies, settlements, or 
115.2 	other forms of compensation related to the termination of the business's contract with the 
115.3 	biomass plant must be deducted from any compensation award provided under this section.
115.4 		Subd. 6.Priority. The chief administrative law judge may give priority to claims by 
115.5 	eligible businesses that demonstrate a significant effort to pursue alternative business 
115.6 	opportunities or to conduct other loss mitigation efforts to reduce its claimed losses related 
115.7 	to the termination of its contract with the company operating the biomass plant.
115.8 		Subd. 7.Awarding claims. If the amount provided for compensation in the biomass 
115.9 	business compensation account established under section 4 is insufficient to fully award all 
115.10 	claims eligible for an award, all awards must be adjusted proportionally based on the value 
115.11 	of the claim.
115.12 		Subd. 8.Deadlines. The chief administrative law judge must make the application 
115.13 	process for eligible claims available by August 1, 2019. A business seeking an award under 
115.14 	this section must file all claims with the chief administrative law judge within 60 days of 
115.15 	the date the chief administrative law judge makes the application process for eligible claims 
115.16 	available. All preliminary awards on eligible claims must be made within 120 days of the 
115.17 	deadline date to file claims. Any requests to reconsider an award denial must be filed with 
115.18 	the chief administrative law judge within 60 days of the notice date for preliminary awards. 
115.19 	All final awards for eligible claims must be made within 60 days of the deadline date to file 
115.20 	reconsideration requests. The commissioner of management and budget must pay all awarded 
115.21 	claims within 45 days of the date the commissioner of management and budget receives 
115.22 	notice of the final awards from the chief administrative law judge.
115.23 		Subd. 9.Expiration. This section expires June 30, 2022.

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

115.25 	Sec. 11. BIOMASS BUSINESS COMPENSATION ACCOUNT.
115.26 		Subdivision 1.Account established. A biomass business compensation account is 
115.27 	established as a separate account in the special revenue fund in the state treasury. 
115.28 	Appropriations and transfers to the account must be credited to the account. Earnings, such 
115.29 	as interest, and any other earnings arising from the assets of the account are credited to the 
115.30 	account. Funds remaining in the account as of December 31, 2021, must be transferred to 
115.31 	the renewable development account established under Minnesota Statutes, section 116C.779.
115.32 		Subd. 2.Funding for the special account. Notwithstanding Minnesota Statutes, section 
115.33 	116C.779, subdivision 1, paragraph (j), on July 1, 2019, $40,000,000 must be transferred 
116.1 	from the renewable development account under Minnesota Statutes, section 116C.779, to 
116.2 	the biomass business compensation account established under subdivision 3. The transferred 
116.3 	funds are appropriated to pay eligible obligations under the biomass business compensation 
116.4 	program established under section 8.
116.5 		Subd. 3.Payment of expenses. The chief administrative law judge must certify to the 
116.6 	commissioner of management and budget the total costs incurred to administer the biomass 
116.7 	business compensation claims process. The commissioner of management and budget must 
116.8 	transfer an amount equal to the certified costs incurred for biomass business compensation 
116.9 	claim activities from the renewable development account under Minnesota Statutes, section 
116.10 	116C.779, and deposit it in the administrative hearings account under Minnesota Statutes, 
116.11 	section 14.54. Transfers may occur quarterly throughout the fiscal year and must be based 
116.12 	on quarterly cost and revenue reports, with final certification and reconciliation after each 
116.13 	fiscal year. The total amount transferred under this subdivision must not exceed $200,000.
116.14 		Subd. 4.Expiration. This section expires June 30, 2022.

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

116.16 	Sec. 12. GREEN ROOF ADVISORY TASK FORCE; REPORT.
 116.17 		Subdivision 1.Definition. For the purposes of this section, "green roof" means the roof 
116.18 	of a building on which:
116.19 	(1) photovoltaic devices, as defined in Minnesota Statutes, section 216C.06, are sited; 
116.20 	or
116.21 	(2) a vegetative landscape and associated elements are installed, which may include:
116.22 	(i) a growing medium;
116.23 	(ii) a waterproof membrane to protect the roof;
116.24 	(iii) a barrier to prevent plant roots from damaging the roof;
116.25 	(iv) a filter layer to prevent the growing medium from washing away;
116.26 	(v) thermal insulation to protect the vegetation and the building;
116.27 	(vi) a drainage system; and
116.28 	(vii) structural support.
116.29 		Subd. 2.Membership. (a) The Green Roof Advisory Task Force consists of the following 
116.30 	members:
117.1 	(1) the state building official, appointed under Minnesota Statutes, section 326B.127, 
117.2 	or the state building official's designee;
117.3 	(2) a representative of the Building Owners and Managers Association Greater 
117.4 	Minneapolis, appointed by the president of the association;
117.5 	(3) up to three representatives from Minnesota companies with extensive experience 
117.6 	installing green roofs, appointed by the commissioner of the Pollution Control Agency;
117.7 	(4) a cochair of the Committee on the Environment of the American Institute of Architects 
117.8 	Minnesota, or the cochair's designee;
117.9 	(5) a horticultural expert from the University of Minnesota Extension, appointed by the 
117.10 	dean of extension;
117.11 	(6) a representative of the University of Minnesota Center for Sustainable Building 
117.12 	Research, appointed by the director of the center;
117.13 	(7) a representative of the Minnesota Solar Energy Industries Association, appointed by 
117.14 	the president of the association;
117.15 	(8) a representative from the Minnesota Nursery and Landscape Association;
117.16 	(9) a representative of the Minnesota State Building Trades Council appointed by the 
117.17 	council;
117.18 	(10) the commissioner of commerce, or the commissioner's designee; and
117.19 	(11) other members appointed by the advisory task force that it deems to be helpful in 
117.20 	carrying out its duties under subdivision 3.
117.21 	(b) Members of the advisory task force are not to be compensated for activities associated 
117.22 	with the advisory task force.
117.23 	(c) The Department of Commerce must serve as staff to the advisory task force.
117.24 		Subd. 3.Duties. The advisory task force's duties are to review and evaluate:
117.25 	(1) laws relating to green roofs enacted in American cities and states and in foreign 
117.26 	countries;
117.27 	(2) estimates of the impacts of operating green roofs on:
117.28 	(i) energy use in the buildings on which the green roofs are installed and any associated 
117.29 	reductions in the emission of greenhouse gases and other air pollutants;
117.30 	(ii) roof replacement costs; and
118.1 	(iii) management costs for storm water; and
118.2 	(3) any other information the task force deems relevant.
118.3 		Subd. 4.Report. By March 1, 2020, the advisory task force must submit a report to the 
118.4 	chairs and ranking minority members of the senate and house of representatives committees 
118.5 	with primary jurisdiction over energy policy and environmental policy. The report must 
118.6 	contain the task force's findings and recommendations, including discussion of the benefits 
118.7 	and problems associated with requiring buildings of a certain type and size to install green 
118.8 	roofs.
118.9 		Subd. 5.Sunset. The task force shall sunset April 1, 2020.

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

118.11 	Sec. 13. REPORT; COST-BENEFIT ANALYSIS OF ENERGY STORAGE 
118.12 	SYSTEMS.
 118.13 	(a) The commissioner of commerce must contract with an independent consultant selected 
118.14 	through a request for proposal process to produce a report analyzing the potential costs and 
118.15 	benefits of energy storage systems, as defined in Minnesota Statutes, section 216B.2422, 
118.16 	subdivision 1, in Minnesota. The study may also include scenarios examining energy storage 
118.17 	systems that are not capable of being controlled by a utility. The commissioner must engage 
118.18 	a broad group of Minnesota stakeholders, including electric utilities and others, to develop 
118.19 	and provide information for the report. The study must:
118.20 	(1) identify and measure the different potential costs and savings produced by energy 
118.21 	storage system deployment, including but not limited to:
118.22 	(i) generation, transmission, and distribution facilities asset deferral or substitution;
118.23 	(ii) impacts on ancillary services costs;
118.24 	(iii) impacts on transmission and distribution congestion;
118.25 	(iv) impacts on peak power costs;
118.26 	(v) impacts on emergency power supplies during outages;
118.27 	(vi) impacts on curtailment of renewable energy generators; and
118.28 	(vii) reduced greenhouse gas emissions;
118.29 	(2) analyze and estimate the:
118.30 	(i) costs and savings to customers that deploy energy storage systems;
119.1 	(ii) impact on the utility's ability to integrate renewable resources;
119.2 	(iii) impact on grid reliability and power quality; and
119.3 	(iv) effect on retail electric rates over the useful life of a given energy storage system 
119.4 	compared to providing the same services using other facilities or resources;
119.5 	(3) consider the findings of analysis conducted by the Midcontinent Independent System 
119.6 	Operator on energy storage capacity accreditation and participation in regional energy 
119.7 	markets, including updates of the analysis; and
119.8 	(4) include case studies of existing energy storage applications currently providing the 
119.9 	benefits described in clauses (1) and (2).
119.10 	(b) By December 31, 2019, the commissioner of commerce must submit the study to 
119.11 	the chairs and ranking minority members of the senate and house of representatives 
119.12 	committees with jurisdiction over energy policy and finance.

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

119.14 	Sec. 14. APPROPRIATION; PRAIRIE ISLAND NET ZERO PROJECT.
 119.15 	Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
119.16 	$20,000,000 in fiscal year 2020; $7,500,000 in fiscal years 2021, 2022, and 2023; and 
119.17 	$3,700,000 in fiscal year 2024 are appropriated from the renewable development account 
119.18 	under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of 
119.19 	employment and economic development for a grant to the Prairie Island Indian community 
119.20 	to establish the net zero project under section 9.

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

119.22 	Sec. 15. APPROPRIATION; ENERGY STORAGE COST-BENEFIT ANALYSIS.
 119.23 	$150,000 in fiscal year 2019 is appropriated from the renewable development account 
119.24 	in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision 
119.25 	1, to the commissioner of commerce, to conduct an energy storage systems cost-benefit 
119.26 	analysis. This is a onetime appropriation and is available until June 30, 2020.

119.27 	Sec. 16. APPROPRIATION; GREEN ROOF TASK FORCE.
 119.28 	$55,000 in fiscal year 2020 is appropriated from the renewable development account 
119.29 	under Minnesota Statutes, section 116C.779, subdivision 1, paragraph (a), to the 
119.30 	commissioner of commerce to complete the green roof report required under section 12.

120.1 	Sec. 17. APPROPRIATION; SOLAR FOR SCHOOLS.
 120.2 	(a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
120.3 	$1,000,000 in fiscal year 2020 and $1,000,000 in fiscal year 2021 are appropriated from 
120.4 	the renewable development account established under Minnesota Statutes, section 116C.779, 
120.5 	subdivision 1, to the commissioner of commerce for transfer to the public utility that is 
120.6 	subject to Minnesota Statutes, section 216C.376, for the purposes of awarding grants and 
120.7 	financial assistance to schools under the solar for schools program under Minnesota Statutes, 
120.8 	section 216C.376.
120.9 	(b) This appropriation may be used by the commissioner to reimburse the reasonable 
120.10 	costs incurred by the public utility to administer the solar for schools program under 
120.11 	Minnesota Statutes, section 216C.375, and the reasonable costs of the department to review 
120.12 	and approve the public utility's plan, and any proposed modifications to that plan and to 
120.13 	provide technical assistance, under Minnesota Statutes, section 216C.376, subdivisions 2 
120.14 	and 8.

120.15 	Sec. 18. APPROPRIATION; ELECTRIC VEHICLE CHARGING STATION 
120.16 	REVOLVING LOAN PROGRAM.
 120.17 	Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
120.18 	$1,500,000 in fiscal year 2020 is appropriated from the renewable development account 
120.19 	under Minnesota Statutes, section 116C.779, to the commissioner of commerce for the 
120.20 	electric vehicle charging station revolving loan program under Minnesota Statutes, section 
120.21 	216C.45. This appropriation must be used only for loans made for electric vehicle charging 
120.22 	station projects in the service area of a public utility that owns a nuclear electric generating 
120.23 	plant in Minnesota. The commissioner may use up to three percent of this amount to 
120.24 	administer the program. This is a onetime appropriation and is available until expended.

APPENDIX 

Repealed Minnesota Statutes: S2611-2 

82B.021 DEFINITIONS.Subd. 17.Foundation appraisal organization. 
"Foundation appraisal organization" means a member private appraisal trade organization of the Appraisal Foundation including, but not limited to, the following: American Institute of Real Estate Appraisers, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, International Association of Assessing Officers, International Right of Way Association, National Association of Independent Fee Appraisers, National Society of Real Estate Appraisers, or Society of Real Estate Appraisers. 

82B.095 APPRAISER QUALIFICATION COMPONENTS.Subd. 2.Conformance to Appraiser Qualifications Board criteria. 
 Qualifications for all levels of licensing must conform to the Real Property Qualification Criteria established by the Appraisal Qualifications Board for implementation effective January 1, 2015. 

82B.10 EXAMINATIONS.Subdivision 1.Generally. 
(a) An applicant for a license must pass an examination conducted by the commissioner. The examinations must be of sufficient scope to establish the competency of the applicant to act as a real estate appraiser and must conform with the current National Uniform Exam Content Outlines published by the Appraiser Qualifications Board. 

(b) A passing grade for a real estate appraiser licensing examination must be the cut score defined by the Appraiser Qualifications Board criteria. 

(c) To qualify for a license as a trainee real property appraiser, an applicant must pass a current trainee real property appraiser examination. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(d) To qualify for a license as a licensed real property appraiser, an applicant must pass a current uniform licensed real property appraiser examination approved by the Appraiser Qualifications Board. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(e) To qualify for a license as a certified residential real property appraiser, an applicant must pass a current uniform certified residential real property appraiser examination approved by the Appraiser Qualifications Board. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(f) To qualify for a license as a certified general real property appraiser, an applicant must pass a current uniform certified general real property appraiser examination approved by the Appraiser Qualifications Board. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(g) An applicant must complete the applicable education prerequisites in section 82B.13 and the experience requirements in section 82B.14 before the applicant takes the examination required under this section. 

Subd. 2.Reexaminations. 
An examination must be required before renewal of a license that has been suspended, or before the issuance of a license to a person whose license has been ineffective for a period of two years. No reexamination is required of an individual who has failed to renew an existing license because of absence from the state while on active duty with the armed services of the United States of America. 

Subd. 3.Examination frequency. 
The commissioner must hold examinations at times and places the commissioner determines. 

Subd. 4.Period for application. 
An applicant who obtains an acceptable score on an examination must file an application and obtain the license within two years of the date of successful completion of the examination or a second examination must be taken to qualify for the license. 

Subd. 5.Renewal; examination. 
Except as provided in subdivision 2, no examination is required for the renewal of a license. However, a licensee who has been licensed in the state of Minnesota and who fails to renew the license for a period of two years must be required by the commissioner to again take an examination. 

Subd. 6.Examination eligibility; revocation. 
No applicant may take an examination if a license as a real estate appraiser has been revoked in this or another state within two years of the date of the application. 

Subd. 8.Fees. 
The commissioner may assess an examination fee sufficient to recover the actual direct costs of holding the examination. 

Subd. 9.Cheating. 
The commissioner must not accept the scores of a person who has cheated on an examination. Cheating on a real estate appraiser examination must be grounds for denying an application for an appraiser's license. 

82B.11 CLASSES OF LICENSE.Subd. 2. Trainee real property appraiser. 
When a net income capitalization analysis is not required by the uniform standards of professional appraisal practice, a trainee real property appraiser may appraise residential real property or agricultural property. 

82B.12 EXAMINATION REQUIREMENT.
An original license as a licensed real estate appraiser must be issued to a person who has demonstrated through a written examination process that the appraiser has the following qualifications: 

(1) appropriate knowledge of technical terms commonly used in or related to real estate appraising, appraisal report writing, and economic concepts applicable to real estate; 

(2) understanding the principles of land economics, real estate appraisal processes, and problems likely to be encountered in gathering, interpreting, and processing of data in carrying out appraisal disciplines; 

(3) understanding the standards for the development and communication of real estate appraisals as provided in this chapter; 

(4) knowledge of theories of depreciation, cost estimating, methods of capitalization, and the mathematics of real estate appraisal that are appropriate for the classification of license for which the person is applying; 

(5) knowledge of other principles and procedures appropriate for the classification of license for which the person is applying; 

(6) basic understanding of real estate law; and 

(7) understanding the types of misconduct and ethical considerations for which disciplinary proceedings may be started against a licensed real estate appraiser. 

82B.13 EDUCATION PREREQUISITES.Subd. 1a.Licensed real property appraiser. 
As a prerequisite for licensing as a licensed real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has successfully completed: 

(1) at least 150 hours of prelicense courses approved by the commissioner. The courses must consist of 75 hours of general real estate appraisal principles and the 15-hour national USPAP course; and 

(2) an associate degree or higher from an accredited college or university. In lieu of the required degree, the applicant may present satisfactory documentation of successful completion of 30 semester credit hours of instruction from an accredited college or university. 

Subd. 3.Commissioner's approval; rules. 
The courses and instruction and procedures of courses must be approved by the commissioner. The commissioner may adopt rules to administer this section. These rules must, to the extent practicable, conform to the rules adopted for real estate and insurance education. The credit hours required under this section may be credited to a person for distance education courses that meet Appraiser Qualifications Board criteria. 

Subd. 4.Certified residential real property appraiser. 
As a prerequisite for licensing as a certified residential real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has successfully completed: 

(1) at least 200 hours of prelicense courses approved by the commissioner, with particular emphasis on the appraisal of one to four unit residential properties. Fifteen of the 200 hours must include successful completion of the 15-hour national USPAP course; and 

(2) a bachelor's degree or higher from an accredited college or university. 

Subd. 5.Certified general real property appraiser. 
As a prerequisite for licensing as a certified general real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has successfully completed: 

(1) at least 300 hours of prelicense courses approved by the commissioner, with particular emphasis on the appraisal of nonresidential properties. Fifteen of the 300 hours must include successful completion of the 15-hour national USPAP course; and 

(2) a bachelor's degree or higher from an accredited college or university. 

Subd. 6.All appraiser license levels. 
To receive approval from the commissioner, an appraiser prelicense education course must be at least 15 hours long. The required course hours for all appraiser license levels include completion of the 15-hour national USPAP course and specific core curriculum courses and hours in accordance with the real property appraiser qualification criteria as defined by the Appraisal Qualifications Board: 

	Trainee		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	Trainee level total education requirements	75 hours	
	Licensed		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	Residential market analysis and highest and best use	15 hours	
	Residential appraiser site valuation and cost approach	15 hours	
	Residential sales comparison and income approaches	30 hours	
	Residential report writing and case studies	15 hours	
	Licensed level total education requirements	150 hours	
	Certified residential		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	Residential market analysis and highest and best use	15 hours	
	Residential appraiser site valuation and cost approach	15 hours	
	Residential sales comparison and income approaches	30 hours	
	Residential report writing and case studies	15 hours	
	Statistics, modeling, and finance	15 hours	
	Advanced residential applications and case studies	15 hours	
	Appraisal subject matter electives	20 hours	
	(May include hours over minimum shown above in other modules)		
	Certified residential level total education requirements	200 hours	
	Certified general		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	General appraiser market analysis and highest and best use	30 hours	
	Statistics, modeling, and finance	15 hours	
	General appraiser sales comparison approach	30 hours	
	General appraiser site valuation and cost approach	30 hours	
	General appraiser income approach	60 hours	
	General appraiser report writing and case studies	30 hours	
	Appraisal subject matter electives	30 hours	
	(May include hours over minimum shown above in other modules)		
	Certified general level total education requirements	300 hours	
Subd. 7.Student tracking manual. 
It is the responsibility of students to record the qualifying education they have completed in a student tracking manual broken down by required core curriculum modules and subtopics, and to maintain an orderly record of education, experience, and other requirements. 

Subd. 8.Appraiser prelicense education. 
(a) Credit toward the qualifying education requirements of this section may also be obtained via the completion of a degree in real estate from an accredited degree-granting college or university approved by the Association to Advance Collegiate Schools of Business, or a regional or national accreditation agency recognized by the United States Secretary of Education, provided that the college or university has had its curriculum reviewed and approved by the Appraiser Qualifications Board. 

(b) Notwithstanding section 45.22, a college or university real estate course may be approved retroactively by the commissioner for appraiser prelicense education credit if: 

(1) the course was offered by a college or university physically located in Minnesota; 

(2) the college or university was an approved education provider at the time the course was offered; and 

(3) the commissioner's approval is made to the same extent in terms of courses and hours and with the same time limits as those specified by the Appraiser Qualifications Board. 

82B.14 EXPERIENCE REQUIREMENT.
(a) As a prerequisite for licensing as a licensed real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has obtained 2,000 hours of experience in real property appraisal obtained in no fewer than 12 months. 

As a prerequisite for licensing as a certified residential real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has obtained 2,500 hours of experience in real property appraisal obtained in no fewer than 24 months. 

As a prerequisite for licensing as a certified general real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has obtained 3,000 hours of experience in real property appraisal obtained in no fewer than 30 months. At least 50 percent, or 1,500 hours, must be in nonresidential appraisal work. 

(b) Each applicant for license under section 82B.11, subdivision 3, 4, or 5, shall give under oath a detailed listing of the real estate appraisal reports or file memoranda for which experience is claimed by the applicant. Upon request, the applicant shall make available to the commissioner for examination, a sample of appraisal reports that the applicant has prepared in the course of appraisal practice. 

(c) Applicants may not receive credit for experience accumulated while unlicensed, if the experience is based on activities which required a license under this section. 

(d) Experience for all classifications must be obtained after January 30, 1989, and must be USPAP compliant. 

82B.195 STANDARDS OF CONDUCT.Subd. 3.Additional requirements. 
In addition to the requirements of subdivisions 1 and 2, an appraiser must: 

(1) not knowingly make any of the following unacceptable appraisal practices: 

(i) include inaccurate or misleading factual data about the subject neighborhood, site, improvements, or comparable sales; 

(ii) fail to comment on negative factors with respect to the subject neighborhood, subject property, or proximity of the subject property to adverse influences; 

(iii) unless otherwise disclosed in the appraisal report, use comparables in the valuation process that the appraiser has not at least personally inspected from the exterior by driving by them; 

(iv) select and use inappropriate comparable sales or fail to use comparables that are physically and by location the most similar to the subject property; 

(v) use data, particularly comparable sales data, that was provided by parties who have a financial interest in the sale or financing of the subject property without the appraiser's verification of the information from a disinterested source. For example, it would be inappropriate for an appraiser to use comparable sales provided by the builder of the subject property or a real estate broker who is handling the sale of the subject property, unless the appraiser verifies the accuracy of the data provided through another source. If a signed HUD Settlement Statement is used for this verification, the appraiser must also verify the sale data with the buyer or county records. The appraiser must also make an independent investigation to determine that the comparable sales provided were the best ones available; 

(vi) use adjustments to the comparable sales that do not reflect the market's reaction to the differences between the subject property and the comparables, or fail to make adjustments when they are clearly indicated; 

(vii) develop a valuation conclusion that is based either partially or completely on factors identified in chapter 363A, including race, color, creed, religion, sex, marital status, status with regard to public assistance, disability, sexual orientation, familial status of the owner or occupants of nearby property, or national origin of either the prospective owners or occupants of the properties in the vicinity of the subject property; or 

(viii) develop a valuation conclusion that is not supported by available market data; 

(2) provide a resume, current within six months of the date it is provided, to anyone who employs the appraiser, indicating all professional degrees and licenses held by the appraiser; and 

(3) reject any request by the person who has employed the appraiser that is in conflict with the requirements of Minnesota law or this chapter and withdraw from the appraisal assignment if the employing party persists in the request. 

216B.241 ENERGY CONSERVATION IMPROVEMENT.Subd. 1b.Conservation improvement by cooperative association or municipality. 
(a) This subdivision applies to: 

(1) a cooperative electric association that provides retail service to more than 5,000 members; 

(2) a municipality that provides electric service to more than 1,000 retail customers; and 

(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales to natural gas retail customers. 

(b) Each cooperative electric association and municipality subject to this subdivision shall spend and invest for energy conservation improvements under this subdivision the following amounts: 

(1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross operating revenues from electric and gas service provided in the state to large electric customer facilities; and 

(2) for a cooperative electric association, 1.5 percent of its gross operating revenues from service provided in the state, excluding gross operating revenues from service provided in the state to large electric customer facilities indirectly through a distribution cooperative electric association. 

(c) Each municipality and cooperative electric association subject to this subdivision shall identify and implement energy conservation improvement spending and investments that are appropriate for the municipality or association, except that a municipality or association may not spend or invest for energy conservation improvements that directly benefit a large energy facility or a large electric customer facility for which the commissioner has issued an exemption under subdivision 1a, paragraph (b). 

(d) Each municipality and cooperative electric association subject to this subdivision may spend and invest annually up to ten percent of the total amount required to be spent and invested on energy conservation improvements under this subdivision on research and development projects that meet the definition of energy conservation improvement in subdivision 1 and that are funded directly by the municipality or cooperative electric association. 

(e) Load-management activities may be used to meet 50 percent of the conservation investment and spending requirements of this subdivision. 

(f) A generation and transmission cooperative electric association that provides energy services to cooperative electric associations that provide electric service at retail to consumers may invest in energy conservation improvements on behalf of the associations it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate basis. A municipal power agency or other not-for-profit entity that provides energy service to municipal utilities that provide electric service at retail may invest in energy conservation improvements on behalf of the municipal utilities it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate basis, under an agreement between the municipal power agency or not-for-profit entity and each municipal utility for funding the investments. 

(g) Each municipality or cooperative shall file energy conservation improvement plans by June 1 on a schedule determined by order of the commissioner, but at least every three years. Plans received by June 1 must be approved or approved as modified by the commissioner by December 1 of the same year. The municipality or cooperative shall provide an evaluation to the commissioner detailing its energy conservation improvement spending and investments for the previous period. The evaluation must briefly describe each conservation program and must specify the energy savings or increased efficiency in the use of energy within the service territory of the utility or association that is the result of the spending and investments. The evaluation must analyze the cost-effectiveness of the utility's or association's conservation programs, using a list of baseline energy and capacity savings assumptions developed in consultation with the department. The commissioner shall review each evaluation and make recommendations, where appropriate, to the municipality or association to increase the effectiveness of conservation improvement activities. 

(h) The commissioner shall consider and may require a utility, association, or other entity providing energy efficiency and conservation services under this section to undertake a program suggested by an outside source, including a political subdivision, nonprofit corporation, or community organization. 

469.084 ST. PAUL.Subd. 1a.Meetings by telephone or other electronic means. 
The port authority may conduct meetings as provided by section 13D.015.