HF 2208

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 02:49pm

A bill for an act
relating to jobs; appropriating money for the Departments of Employment and
Economic Development, Labor and Industry, Human Services, and Commerce;
the Bureau of Mediation Services; Public Employment Relations Board; Housing
Finance Agency; Workers' Compensation Court of Appeals; and Public Utilities
Commission; making policy and technical changes; modifying fees; providing
criminal and civil penalties; requiring reports; amending Minnesota Statutes 2018,
sections 16C.285, subdivision 3; 116J.8731, subdivision 5; 116J.8748, subdivision
4; 177.27, subdivisions 2, 4, 7, 8, by adding subdivisions; 177.30; 177.32,
subdivision 1; 181.03, subdivision 1, by adding subdivisions; 181.032; 181.101;
182.659, subdivision 8; 182.666, subdivisions 1, 2, 3, 4, 5, by adding a subdivision;
326B.802, subdivision 15; 327C.095, subdivisions 1, 2, 3, 4, 12, 13; 341.30,
subdivision 1; 341.32, subdivision 1; 341.321; 345.515; 345.53, subdivision 1, by
adding a subdivision; 609.52, subdivisions 1, 2, 3; proposing coding for new law
in Minnesota Statutes, chapters 177; 181; 216C; proposing coding for new law as
Minnesota Statutes, chapter 345A; repealing Minnesota Statutes 2018, sections
177.27, subdivisions 1, 3; 345.53, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2020 new text end		new text begin 2021 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 220,733,000 new text end

new text begin $ new text end

new text begin 177,736,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 189,874,000 new text end	new text begin 147,374,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 30,159,000 new text end	new text begin 29,662,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 46,336,000 new text end	new text begin 44,336,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 1,350,000 new text end	new text begin 1,350,000 new text end

new text begin (a) $12,500,000 each year is for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, up to three
percent is for administration and monitoring
of the program. This appropriation is available
until spent. Notwithstanding Minnesota
Statutes, section 116J.8731, funds
appropriated to the commissioner for the
Minnesota investment fund may be used for
the redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner. Grants
under this paragraph are not subject to the
grant amount limitation under Minnesota
Statutes, section 116J.8731.
new text end

new text begin (b) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, up to three
percent is for administration and monitoring
of the program. This appropriation is available
until spent.
new text end

new text begin (c) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until spent.
new text end

new text begin (d) $1,350,000 each year from the workforce
development fund is for job training costs
under Minnesota Statutes, section 116L.42.
new text end

new text begin (e) $1,787,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until spent.
new text end

new text begin (f) $139,000 each year is for the Center for
Rural Policy and Development.
new text end

new text begin (g) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent.
new text end

new text begin (h) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until spent.
new text end

new text begin (i) $1,425,000 each year is for the business
development competitive grant program. Of
this amount, up to five percent is for
administration and monitoring of the business
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
new text end

new text begin (j) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until spent.
new text end

new text begin (k) $875,000 each year is from the general
fund for the host community economic
development program established in
Minnesota Statutes, section 116J.548.
new text end

new text begin (l) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.
new text end

new text begin (m) $750,000 each year is for a grant to the
Neighborhood Development Center for small
business programs. This is a onetime
appropriation.
new text end

new text begin (n) $1,175,000 each year is for a grant to the
Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services, including
services to entrepreneurs with businesses that
have the potential to create job opportunities
for unemployed and underemployed people,
with an emphasis on minority-owned
businesses. This is a onetime appropriation.
new text end

new text begin (o) $125,000 each year is for a grant to the
White Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities. This is a onetime appropriation.
new text end

new text begin (p) $1,175,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.
new text end

new text begin (q) $12,000 each year is from the general fund
for a grant to the Upper Minnesota Film
Office.
new text end

new text begin (r) $163,000 each year is from the general fund
for the Minnesota Film and TV Board. The
appropriation in each year is available only
upon receipt by the board of $1 in matching
contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
each year up to $50,000 is available on July
1 even if the required matching contribution
has not been received by that date.
new text end

new text begin (s) $500,000 each year is from the general
fund for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until spent.
new text end

new text begin (t) $500,000 each year is for the child care
economic grant program in article 7 to increase
the supply of quality child care providers to
support economic development. This is a
onetime appropriation.
new text end

new text begin (u) $4,500,000 each year is to establish the
Minnesota Innovation Collaborative. Of this
amount:
new text end

new text begin (1) $2,900,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or
start-up businesses to assist with their
operating needs. Of this amount, five percent
is for the department's administrative costs;
new text end

new text begin (2) $850,000 each year is for administration
of the Minnesota Innovation Collaborative;
and
new text end

new text begin (3) $750,000 each year is for grantee activities
at the Minnesota Innovation Collaborative. Of
this amount, five percent is for the
department's administrative costs.
new text end

new text begin This is a onetime appropriation and funds are
available until June 30, 2023.
new text end

new text begin (v) $2,000,000 in fiscal year 2020 is for the
Community Prosperity Grant Program to
provide grants to local and regional
communities to engage in innovative economic
development projects that support economic
growth and equitable prosperity. This is a
onetime appropriation. Funds are available
until June 30, 2021.
new text end

new text begin Subd. 3. new text end new text begin Broadband Development new text end

new text begin 35,250,000 new text end

new text begin 35,250,000 new text end

new text begin (a) $250,000 each year is for the Broadband
Development Office.
new text end

new text begin (b) $35,000,000 each year is for deposit in the
border-to-border broadband fund account
created under Minnesota Statutes, section
116J.396, and may be used for the purposes
provided in Minnesota Statutes, section
116J.395. This is a onetime appropriation.
This appropriation is available until spent.
new text end

new text begin Subd. 4. new text end new text begin Minnesota Trade Office new text end

new text begin 2,292,000 new text end

new text begin 2,292,000 new text end

new text begin (a) $300,000 each year is for the STEP grants
in Minnesota Statutes, section 116J.979.
new text end

new text begin (b) $180,000 each year is for the Invest
Minnesota Marketing Initiative in Minnesota
Statutes, section 116J.9781.
new text end

new text begin (c) $270,000 each year is for the Minnesota
Trade Offices under Minnesota Statutes,
section 116J.978.
new text end

new text begin (d) $50,000 each year is for the trade policy
advisory group under Minnesota Statutes,
section 116J.9661.
new text end

new text begin Subd. 5. new text end new text begin Workforce Development new text end

new text begin 32,213,000 new text end

new text begin 31,716,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 11,289,000 new text end	new text begin 11,289,000 new text end
new text begin Workforce Development new text end	new text begin 20,427,000 new text end	new text begin 20,924,000 new text end

new text begin (a) $4,039,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the pathways to
prosperity competitive grant program. Of this
amount, up to four percent is for
administration and monitoring of the program.
new text end

new text begin (b) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.
new text end

new text begin (c) $1,000,000 each year is from the workforce
development fund for the youthbuild program
under Minnesota Statutes, sections 116L.361
to 116L.366.
new text end

new text begin (d) $2,250,000 each year is from the general
fund and $3,348,000 each year is from the
workforce development fund for the youth at
work competitive grant program under
Minnesota Statutes, section 116L.562. Of this
amount, up to five percent is for administration
and monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The base for this program in fiscal year 2022
is $750,000 from the general fund and
$3,348,000 from the workforce development
fund.
new text end

new text begin (e) $500,000 each year from the general fund
and $500,000 each year from the workforce
development fund are for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
under Minnesota Statutes, section 116L.667.
new text end

new text begin (f) $250,000 each year is for the higher
education career advising program.
new text end

new text begin (g) $1,000,000 each year is for a competitive
grant program for grants to organizations
providing services to relieve economic
disparities in the Southeast Asian community
through workforce recruitment, development,
job creation, assistance of smaller
organizations to increase capacity, and
outreach. Of this amount, up to five percent
is for administration and monitoring of the
program.
new text end

new text begin (h) $1,000,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
four percent is for administration and
monitoring of the program.
new text end

new text begin (i) $750,000 each year is for the high-wage,
high-demand, nontraditional jobs grant
program under Minnesota Statutes, section
116L.99. Of this amount, up to five percent is
for administration and monitoring of the
program.
new text end

new text begin (j) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs. This
appropriation shall be divided equally among
the eligible centers.
new text end

new text begin (k) $250,000 each year is from the workforce
development fund for a grant to YWCA St.
Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling. This is a onetime appropriation.
new text end

new text begin (l) $525,000 each year is from the workforce
development fund for a grant to the YWCA
of Minneapolis to provide economically
challenged individuals the jobs skills training,
career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early childhood education.
This is a onetime appropriation.
new text end

new text begin (m) $1,000,000 each year is from the
workforce development fund for a grant to
EMERGE Community Development, in
collaboration with community partners, for
services targeting Minnesota communities
with the highest concentrations of African and
African-American joblessness, based on the
most recent census tract data, to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and adult
diploma program. This is a onetime
appropriation.
new text end

new text begin (n) $1,000,000 each year is from the
workforce development fund for a grant to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment. This is
a onetime appropriation.
new text end

new text begin (o) $1,297,000 in fiscal year 2020 and
$800,000 in fiscal year 2021 are from the
workforce development fund for performance
grants under Minnesota Statutes, section
116J.8747, to Twin Cities R!SE to provide
training to hard-to-train individuals. This is a
onetime appropriation.
new text end

new text begin (p) $750,000 each year is from the workforce
development fund for a grant to Latino
Communities United in Service (CLUES) to
expand culturally tailored programs that
address employment and education skill gaps
for working parents and underserved youth by
providing new job skills training to stimulate
higher wages for low-income people, family
support systems designed to reduce
intergenerational poverty, and youth
programming to promote educational
advancement and career pathways. At least
50 percent of this amount must be used for
programming targeted at greater Minnesota.
This is a onetime appropriation.
new text end

new text begin (q) $250,000 each year is for transfer to the
Department of Education for a grant to the
American Indian Opportunities and
Industrialization Center, in collaboration with
the Northwest Indian Community
Development Center, to reduce academic
disparities for American Indian students and
adults. This is a onetime appropriation. The
grant funds may be used to provide:
new text end

new text begin (1) student tutoring and testing support
services;
new text end

new text begin (2) training in information technology;
new text end

new text begin (3) assistance in obtaining a GED;
new text end

new text begin (4) remedial training leading to enrollment in
a postsecondary higher education institution;
new text end

new text begin (5) real-time work experience in information
technology fields; and
new text end

new text begin (6) contextualized adult basic education.
new text end

new text begin After notification to the legislature, the
commissioner may transfer this appropriation
to the commissioner of education.
new text end

new text begin (r) $600,000 each year from the workforce
development fund is for a grant to Ujamaa
Place for job training, employment
preparation, internships, education, training
in the construction trades, housing, and
organizational capacity-building. This is a
onetime appropriation.
new text end

new text begin (s) $1,000,000 each year from the workforce
development fund is for a grant to the
Construction Careers Foundation for the
construction career pathway initiative to
provide year-round educational and
experiential learning opportunities for teens
and young adults under the age of 21 that lead
to careers in the construction industry. This is
a onetime appropriation. Grant funds must be
used to:
new text end

new text begin (1) increase construction industry exposure
activities for middle school and high school
youth, parents, and counselors to reach a more
diverse demographic and broader statewide
audience. This requirement includes, but is
not limited to, an expansion of programs to
provide experience in different crafts to youth
and young adults throughout the state;
new text end

new text begin (2) increase the number of high schools in
Minnesota offering construction classes during
the academic year that utilize a multicraft
curriculum;
new text end

new text begin (3) increase the number of summer internship
opportunities;
new text end

new text begin (4) enhance activities to support graduating
seniors in their efforts to obtain employment
in the construction industry;
new text end

new text begin (5) increase the number of young adults
employed in the construction industry and
ensure that they reflect Minnesota's diverse
workforce; and
new text end

new text begin (6) enhance an industrywide marketing
campaign targeted to youth and young adults
about the depth and breadth of careers within
the construction industry.
new text end

new text begin Programs and services supported by grant
funds must give priority to individuals and
groups that are economically disadvantaged
or historically underrepresented in the
construction industry, including but not limited
to women, veterans, and members of minority
and immigrant groups.
new text end

new text begin (t) $1,000,000 each year is for grants for
positive youth development, community
engagement, legal services, and capacity
building for community-based organizations
serving Somali youth, including youth
engagement, risk prevention, and intervention
activities that help build the resiliency of the
Somali-Minnesotan community and address
challenges facing Somali youth. Of this
amount, $1,000,000 is for a grant to
Youthprise for activities provided in this
paragraph. Funded projects must provide
culturally and linguistically relevant services.
To the maximum extent possible, 50 percent
of the funding must be distributed in greater
Minnesota, and 50 percent of the funding must
be distributed within the metropolitan area, as
defined in Minnesota Statutes, section
473.121, subdivision 2. Of the amount
appropriated for grants to be awarded by the
commissioner, up to five percent is for
administration and monitoring of the program.
This is a onetime appropriation and is
available until June 30, 2022.
new text end

new text begin (u) $250,000 each year is for increased grantee
support from the department to ensure
successful program delivery and improved
program outcome analysis. This is a onetime
appropriation.
new text end

new text begin (v) $500,000 each year is from the workforce
development fund for the Nonprofit Assistance
Grant Fund to make grants for infrastructure
support to small nonprofit organizations that
serve historically underserved cultural
communities.
new text end

new text begin Subd. 6. new text end new text begin Vocational Rehabilitation new text end

new text begin 37,191,000 new text end

new text begin 37,191,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 29,361,000 new text end	new text begin 29,361,000 new text end
new text begin Workforce Development new text end	new text begin 7,830,000 new text end	new text begin 7,830,000 new text end

new text begin (a) $14,800,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A.
new text end

new text begin (b) $3,011,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.
new text end

new text begin (c) $6,995,000 each year from the workforce
development fund and $6,830,000 each year
from the general fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.
new text end

new text begin (d) $1,000,000 each year is from the
workforce development fund for grants under
Minnesota Statutes, section 268A.16, for
employment services for persons, including
transition-aged youth, who are deaf, deafblind,
or hard-of-hearing. If the amount in the first
year is insufficient, the amount in the second
year is available in the first year. Of this
amount, up to five percent is for administration
and monitoring of the program.
new text end

new text begin (e) $2,555,000 each year is for grants to
programs that provide employment support
services to persons with mental illness under
Minnesota Statutes, sections 268A.13 and
268A.14.
new text end

new text begin Subd. 7. new text end new text begin Services for the Blind new text end

new text begin 6,425,000 new text end

new text begin 6,425,000 new text end

new text begin $500,000 each year is to provide services for
senior citizens who are becoming blind. At
least half of the funds appropriated must be
used to provide training services for seniors
who are becoming blind. Training services
must provide independent living skills to
seniors who are becoming blind to allow them
to continue to live independently in their
homes.
new text end

new text begin Subd. 8. new text end new text begin General Support Services new text end

new text begin 4,726,000 new text end

new text begin 4,726,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,671,000 new text end	new text begin 4,671,000 new text end
new text begin Workforce Development new text end	new text begin 55,000 new text end	new text begin 55,000 new text end

new text begin (a) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.4011.
new text end

new text begin (b) $1,269,000 each year is for transfer to the
Minnesota Housing Finance Agency for
operating the Olmstead Implementation
Office.
new text end

new text begin (c) $500,000 each year is for the
capacity-building grant program to assist
nonprofit organizations offering or seeking to
offer workforce development and economic
development programming.
new text end

new text begin Subd. 9. new text end new text begin Paid Family Leave new text end

new text begin 54,250,000 new text end

new text begin 13,750,000 new text end

new text begin This amount is for costs related to the
implementation of a paid family leave
program. This is a onetime appropriation.
new text end

Sec. 3. new text begin HOUSING FINANCE AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 66,798,000 new text end

new text begin $ new text end

new text begin 64,798,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Unless otherwise specified, this appropriation
is for transfer to the housing development fund
for the programs specified in this section.
Except as otherwise indicated, this transfer is
part of the agency's permanent budget base.
new text end

new text begin Subd. 2. new text end new text begin Challenge Program new text end

new text begin 17,925,000 new text end

new text begin 17,925,000 new text end

new text begin This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
Of this amount, $1,208,000 each year shall be
made available during the first 11 months of
the fiscal year exclusively for housing projects
for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.
new text end

new text begin The base for this program in fiscal year 2022
and beyond is $13,925,000.
new text end

new text begin Subd. 3. new text end new text begin Workforce Housing Development new text end

new text begin 2,000,000 new text end

new text begin 2,000,000 new text end

new text begin This appropriation is for the workforce
housing development program under
Minnesota Statutes, section 462A.39. If
requested by the applicant and approved by
the agency, funded properties may include a
portion of income and rent restricted units.
new text end

new text begin Subd. 4. new text end new text begin Housing Trust Fund new text end

new text begin 11,646,000 new text end

new text begin 11,646,000 new text end

new text begin This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.
new text end

new text begin Subd. 5. new text end new text begin Rental Assistance for Mentally Ill new text end

new text begin 4,588,000 new text end

new text begin 4,588,000 new text end

new text begin This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.
new text end

new text begin Subd. 6. new text end new text begin Family Homeless Prevention new text end

new text begin 10,519,000 new text end

new text begin 10,519,000 new text end

new text begin This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.
new text end

new text begin Subd. 7. new text end new text begin Homework Starts with Home new text end

new text begin 3,000,000 new text end

new text begin 3,000,000 new text end

new text begin This appropriation is for the homework starts
with home program under Minnesota Statutes,
sections 462A.201, subdivision 2, paragraph
(a), clause (4), and 462A.204, subdivision 8,
to provide assistance to homeless or highly
mobile families with children eligible for
enrollment in a prekindergarten through grade
12 academic program.
new text end

new text begin Subd. 8. new text end new text begin Home Ownership Assistance Fund new text end

new text begin 885,000 new text end

new text begin 885,000 new text end

new text begin This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.
new text end

new text begin Subd. 9. new text end new text begin Affordable Rental Investment Fund new text end

new text begin 4,218,000 new text end

new text begin 4,218,000 new text end

new text begin (a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.
new text end

new text begin (b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted. The owner must
also enter into an agreement that gives local
units of government, housing and
redevelopment authorities, and nonprofit
housing organizations the right of first refusal
if the rental property is offered for sale.
Priority must be given among comparable
federally assisted rental properties to
properties with the longest remaining term
under an agreement for federal assistance.
Priority must also be given among comparable
rental housing developments to developments
that are or will be owned by local government
units, a housing and redevelopment authority,
or a nonprofit housing organization.
new text end

new text begin (c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.
new text end

new text begin Subd. 10. new text end new text begin Housing Rehabilitation new text end

new text begin 7,015,000 new text end

new text begin 7,015,000 new text end

new text begin This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $3,272,000 each year is for the
rehabilitation of owner-occupied housing and
$3,743,000 each year is for the rehabilitation
of eligible rental housing. In administering a
rehabilitation program for rental housing, the
agency may apply the processes and priorities
adopted for administration of the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33,
and may provide grants or forgivable loans if
approved by the agency.
new text end

new text begin Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 11. new text end new text begin Homeownership Education, Counseling, and Training new text end

new text begin 857,000 new text end

new text begin 857,000 new text end

new text begin This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
new text end

new text begin Subd. 12. new text end new text begin Capacity-Building Grants new text end

new text begin 645,000 new text end

new text begin 645,000 new text end

new text begin This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b.
new text end

new text begin Subd. 13. new text end new text begin Homeownership Capacity new text end

new text begin 1,000,000 new text end

new text begin 1,000,000 new text end

new text begin This appropriation is for competitive grants
to nonprofit housing organizations, housing
and redevelopment authorities, or other
political subdivisions to provide intensive
financial education and coaching services to
individuals or families who have the goal of
homeownership. Financial education and
coaching services include but are not limited
to asset building, development of spending
plans, credit report education, repair and
rebuilding, consumer protection training, and
debt reduction. Priority must be given to
organizations that have experience serving
underserved populations.
new text end

new text begin Subd. 14. new text end new text begin Direct Appropriation new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin This appropriation is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program including program
outreach, financial literacy education, and
budget and debt counseling.
new text end

new text begin Subd. 15. new text end new text begin Local Housing Trust Fund new text end

new text begin 2,000,000 new text end

new text begin -0- new text end

new text begin $2,000,000 in fiscal year 2020 is for grants to
housing trust funds established under
Minnesota Statutes, section 462C.16, or other
comparable statutory authority, to incentivize
local funding. This is a onetime appropriation.
Grants shall be used to provide matching funds
of 100 percent of the amount not exceeding
$150,000, and 50 percent of the amount over
$150,000, but not exceeding $300,000 that a
housing trust fund receives from local
own-source revenues. For the purpose of this
subdivision, "local own-source revenues"
means revenue from any source other than the
state or federal government. Priority may be
given to local governments that are creating
a new local housing trust fund.
new text end

Sec. 4. new text begin DEPARTMENT OF HUMAN SERVICES new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin This appropriation is for the homeless
management information system.
new text end

Sec. 5. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 32,770,000 new text end

new text begin $ new text end

new text begin 30,620,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 4,898,000 new text end	new text begin 5,748,000 new text end
new text begin Workers' Compensation new text end	new text begin 25,088,000 new text end	new text begin 22,088,000 new text end
new text begin Workforce Development new text end	new text begin 2,784,000 new text end	new text begin 2,784,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Workers' Compensation new text end

new text begin 14,882,000 new text end

new text begin 11,882,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin $3,000,000 in fiscal year 2020 is for workers'
compensation system upgrades. This amount
is available until June 30, 2021. This is a
onetime appropriation.
new text end

new text begin This appropriation includes funds for
information technology project services and
support subject to Minnesota Statutes, section
16E.0466. Any ongoing information
technology costs must be incorporated into
the service level agreement and must be paid
to the Office of MN.IT Services by the
commissioner of labor and industry under the
rates and mechanism specified in that
agreement.
new text end

new text begin Subd. 3. new text end new text begin Labor Standards and Apprenticeship new text end

new text begin 5,032,000 new text end

new text begin 4,882,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,648,000 new text end	new text begin 3,498,000 new text end
new text begin Workforce Development new text end	new text begin 1,384,000 new text end	new text begin 1,384,000 new text end

new text begin (a) $2,350,000 in fiscal year 2020 and
$2,200,000 in fiscal year 2021 are for wage
theft prevention. The base for this in fiscal
year 2022 is $2,200,000.
new text end

new text begin (b) $1,133,000 each year is from the
workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178.
new text end

new text begin (c) $151,000 each year is from the workforce
development fund for prevailing wage
enforcement.
new text end

new text begin (d) $100,000 each year is from the workforce
development fund for labor education and
advancement program grants under Minnesota
Statutes, section 178.11, to expand and
promote registered apprenticeship training for
minorities and women. The base for fiscal year
2022 is $100,000.
new text end

new text begin Subd. 4. new text end new text begin Workplace Safety new text end

new text begin 4,167,000 new text end

new text begin 4,167,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin Subd. 5. new text end new text begin General Support new text end

new text begin 8,689,000 new text end

new text begin 9,689,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,250,000 new text end	new text begin 2,250,000 new text end
new text begin Workers' Compensation new text end	new text begin 6,039,000 new text end	new text begin 6,039,000 new text end
new text begin Workforce Development new text end	new text begin 1,400,000 new text end	new text begin 1,400,000 new text end

new text begin (a) $300,000 each year is from the workforce
development fund for the PIPELINE program.
new text end

new text begin (b) $1,100,000 each year is from the
workforce development fund for youth skills
training grants under Minnesota Statutes,
section 175.46. The commissioner shall award
grants not to exceed $100,000 per local
partnership grant. $100,000 each year is from
the workforce development fund for the
administration of the grant program.
new text end

new text begin (c) $1,250,000 in fiscal year 2020 and
$2,250,000 in fiscal year 2021 are for system
upgrades. The base appropriation is
$1,725,000 in fiscal year 2022 and $0 in fiscal
year 2023. Funds are available until June 30,
2023. This appropriation includes funds for
information technology project services and
support subject to Minnesota Statutes, section
16E.0466. Any ongoing information
technology costs must be incorporated into
the service level agreement and must be paid
to the Office of MN.IT Services by the
commissioner of labor and industry under the
rates and mechanism specified in that
agreement.
new text end

Sec. 6. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin 2,654,000 new text end

new text begin $ new text end

new text begin 2,654,000 new text end

new text begin (a) $68,000 each year is for grants to area
labor management committees. Grants may
be awarded for a 12-month period beginning
July 1 each year. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.
new text end

new text begin (b) $394,000 each year is for the Office of
Collaboration and Dispute Resolution under
Minnesota Statutes, section 179.90. Of this
amount, $160,000 each year is for grants under
Minnesota Statutes, section 179.91, and
$234,000 each year is for intergovernmental
and public policy collaboration and operation
of the office.
new text end

new text begin (c) $125,000 each year is for the Public
Employment Relations Board under Minnesota
Statutes, section 179A.041.
new text end

Sec. 7. new text begin WORKERS' COMPENSATION COURT OF APPEALS new text end

new text begin $ new text end

new text begin 2,222,000 new text end

new text begin $ new text end

new text begin 2,283,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

Sec. 8. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 42,134,000 new text end

new text begin $ new text end

new text begin 41,131,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 28,110,000 new text end	new text begin 27,106,000 new text end
new text begin Special Revenue new text end	new text begin 1,610,000 new text end	new text begin 1,610,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,056,000 new text end	new text begin 1,056,000 new text end
new text begin Workers' Compensation new text end	new text begin 758,000 new text end	new text begin 759,000 new text end
new text begin Renewable Development new text end	new text begin 10,600,000 new text end	new text begin 10,600,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Financial Institutions new text end

new text begin 831,000 new text end

new text begin 836,000 new text end

new text begin $400,000 each year is for grants to Prepare
and Prosper for purposes of developing,
marketing, evaluating, and distributing a
financial services inclusion program that will
assist low-income and financially underserved
populations to build savings, strengthen credit,
and provide services to assist them in being
more financially stable and secure. Grants in
fiscal year 2020 must be matched by nonstate
contributions. Money remaining after the first
year is available for the second year.
new text end

new text begin Subd. 3. new text end new text begin Petroleum Tank Release Compensation Board new text end

new text begin 1,056,000 new text end

new text begin 1,056,000 new text end

new text begin This appropriation is from the petroleum tank
fund.
new text end

new text begin To account for base adjustments provided in
Minnesota Statutes, section 115C.13, the base
for the petroleum tank release cleanup fund
in fiscal year 2023 is $0.
new text end

new text begin Subd. 4. new text end new text begin Administrative Services new text end

new text begin 10,170,000 new text end

new text begin 8,955,000 new text end

new text begin (a) $475,000 in fiscal year 2020 and $350,000
in fiscal year 2021 are from the general fund
for system modernization and cybersecurity
upgrades for the unclaimed property program.
The base in fiscal year 2022 is $350,000.
new text end

new text begin (b) $368,000 in fiscal year 2020 and $702,000
in fiscal year 2021 are for additional
operations of the unclaimed property program.
The base in fiscal year 2022 is $702,000.
new text end

new text begin (c) $100,000 each year is for the support of
broadband development.
new text end

new text begin (d) To account for base adjustments provided
in Laws 2018, chapter 211, section 1,
paragraph (a), the base is increased by $1,000
in fiscal year 2022.
new text end

new text begin Subd. 5. new text end new text begin Telecommunications new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,037,000 new text end	new text begin 1,047,000 new text end
new text begin Special Revenue new text end	new text begin 1,610,000 new text end	new text begin 1,610,000 new text end

new text begin $1,610,000 each year is from the
telecommunication access fund for the
following transfers. These amounts are added
to the base for this purpose.
new text end

new text begin (1) $1,170,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of the Deaf, DeafBlind and
Hard of Hearing;
new text end

new text begin (2) $290,000 each year is to the chief
information officer for the purpose of
coordinating technology accessibility and
usability;
new text end

new text begin (3) $100,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage; and
new text end

new text begin (4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants to other state agencies related
to accessibility of their web-based services.
new text end

new text begin Subd. 6. new text end new text begin Enforcement new text end

new text begin 6,417,000 new text end

new text begin 6,507,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,217,000 new text end	new text begin 6,307,000 new text end
new text begin Workers' Compensation new text end	new text begin 200,000 new text end	new text begin 200,000 new text end

new text begin (a) $250,000 in fiscal year 2020 and $250,000
in fiscal year 2021 are to create and execute a
statewide education and outreach campaign
to protect seniors age 60 years or older,
vulnerable adults as defined in Minnesota
Statutes, section 626.5572, subdivision 21,
and their caregivers from financial fraud and
exploitation. The education and outreach
campaign must be statewide and at a minimum
must include the dissemination of information
through television, print, or other media;
training and outreach to senior living facilities;
and the creation of a senior fraud toolkit.
new text end

new text begin (b) The revenue transferred in Minnesota
Statutes, section 297I.11, subdivision 2, to the
insurance fraud prevention account must be
used in part for compensation for two new
employees in the Commerce Fraud Bureau to
perform analytical duties. The new employees
must not be peace officers.
new text end

new text begin Subd. 7. new text end new text begin Energy Resources new text end

new text begin 15,430,000 new text end

new text begin 15,480,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,830,000 new text end	new text begin 4,880,000 new text end
new text begin Renewable Development new text end	new text begin 10,600,000 new text end	new text begin 10,600,000 new text end

new text begin (a) $150,000 each year is to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end

new text begin (b) $832,000 each year is for energy regulation
and planning unit staff.
new text end

new text begin (c) $100,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, to administer the
Made in Minnesota solar energy production
incentive program in Minnesota Statutes,
section 216C.417. Any remaining unspent
funds cancel back to the renewable
development account at the end of the
biennium.
new text end

new text begin (d) $10,000,000 each year is from the
renewable development account in the special
revenue fund for a solar on schools program
of which $500,000 per year can be spent on
administration. The amount is available until
June 30, 2023. This is a onetime appropriation.
new text end

new text begin $500,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for costs associated
with any third-party expert evaluation of a
proposal submitted in response to a request
for proposal to the renewable development
advisory group under Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(l). No portion of this appropriation may be
expended or retained by the commissioner of
commerce. Any funds appropriated under this
paragraph that are unexpended at the end of a
fiscal year cancel to the renewable
development account.
new text end

new text begin Subd. 8. new text end new text begin Insurance new text end

new text begin 5,583,000 new text end

new text begin 5,640,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 5,025,000 new text end	new text begin 5,081,000 new text end
new text begin Workers' Compensation new text end	new text begin 558,000 new text end	new text begin 559,000 new text end

new text begin To account for the base adjustments provided
in Laws 2018, chapter 211, article 21, section
1, paragraph (a), the base in the workers'
compensation fund is increased by $2,000 in
fiscal year 2022.
new text end

Sec. 9. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 8,018,000 new text end

new text begin $ new text end

new text begin 7,493,000 new text end

ARTICLE 2

MINNESOTA INNOVATION COLLABORATIVE

Section 1. new text begin MINNESOTA INNOVATION COLLABORATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Minnesota Innovation Collaborative is established
within the Business and Community Development Division of the Department of
Employment and Economic Development to encourage and support the development of
new private sector technologies and support the science and technology policies under
Minnesota Statutes, section 3.222. The Minnesota Innovation Collaborative must provide
entrepreneurs and emerging technology-based companies business development assistance
and financial assistance to spur growth.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this subdivision
have the meanings given.
new text end

new text begin (b) "Advisory board" means the board established under subdivision 11.
new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (d) "Department" means the Department of Employment and Economic Development.
new text end

new text begin (e) "Entrepreneur" means a Minnesota resident who is involved in establishing a business
entity and secures resources directed to its growth while bearing the risk of loss.
new text end

new text begin (f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan
area as defined in section 473.121, subdivision 2.
new text end

new text begin (g) "High technology" includes aerospace, agricultural processing, renewable energy,
energy efficiency and conservation, environmental engineering, food technology, cellulosic
ethanol, information technology, materials science technology, nanotechnology,
telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics,
biologicals, chemistry, veterinary science, and similar fields.
new text end

new text begin (h) "Institution of higher education" has the meaning given in Minnesota Statutes, section
136A.28, subdivision 6.
new text end

new text begin (i) "Minority group member" means a United States citizen who is Asian, Pacific Islander,
Black, Hispanic, or Native American.
new text end

new text begin (j) "Minority-owned business" means a business for which one or more minority group
members:
new text end

new text begin (1) own at least 50 percent of the business or, in the case of a publicly owned business,
own at least 51 percent of the stock; and
new text end

new text begin (2) manage the business and control the daily business operations.
new text end

new text begin (k) "Research and development" means any activity that is:
new text end

new text begin (1) a systematic, intensive study directed toward greater knowledge or understanding
of the subject studies;
new text end

new text begin (2) a systematic study directed specifically toward applying new knowledge to meet a
recognized need; or
new text end

new text begin (3) a systematic application of knowledge toward the production of useful materials,
devices, systems and methods, including design, development and improvement of prototypes
and new processes to meet specific requirements.
new text end

new text begin (l) "Start-up" means a business entity that has been in operation for less than ten years,
has operations in Minnesota, and is in the development stage defined as devoting substantially
all of its efforts to establishing a new business and either of the following conditions exists:
new text end

new text begin (1) planned principal operations have not commenced; or
new text end

new text begin (2) planned principal operations have commenced, but have generated less than
$1,000,000 in revenue.
new text end

new text begin (m) "Technology-related assistance" means the application and utilization of
technological-information and technologies to assist in the development and production of
new technology-related products or services or to increase the productivity or otherwise
enhance the production or delivery of existing products or services.
new text end

new text begin (n) "Trade association" means a nonprofit membership organization organized to promote
businesses and business conditions and having an election under Internal Revenue Code
section 501(c)(3) or 501(c)(6).
new text end

new text begin (o) "Women" means persons of the female gender.
new text end

new text begin (p) "Women-owned business" means a business for which one or more women:
new text end

new text begin (1) own at least 50 percent of the business or, in the case of a publicly owned business,
own at least 51 percent of the stock; and
new text end

new text begin (2) manage the business and control the daily business operations.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The Minnesota Innovation Collaborative shall:
new text end

new text begin (1) support innovation and initiatives designed to accelerate the growth of high-technology
start-ups in Minnesota;
new text end

new text begin (2) offer classes and instructional sessions on how to start a high-tech and innovative
start-up;
new text end

new text begin (3) promote activities for entrepreneurs and investors regarding the state's growing
innovation economy;
new text end

new text begin (4) hold events and meetings that gather key stakeholders in the state's innovation sector;
new text end

new text begin (5) conduct outreach and education on innovation activities and related financial programs
available from the department and other organizations, particularly for underserved
communities;
new text end

new text begin (6) interact and collaborate with statewide partners including but not limited to businesses,
nonprofits, trade associations, and higher education institutions;
new text end

new text begin (7) administer an advisory board to assist with direction, grant application review,
program evaluation, report development, and partnerships;
new text end

new text begin (8) commission research in partnership with the University of Minnesota and Minnesota
State Colleges and Universities to study innovation and its impacts on the state's economy
with emphasis on the state's labor market;
new text end

new text begin (9) accept grant applications under subdivisions 5 and 6 and work with the advisory
board to evaluate the applications and provide funding recommendations to the commissioner;
and
new text end

new text begin (10) perform other duties at the commissioner's discretion.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) The department shall employ an executive director in the
unclassified service. The executive director shall:
new text end

new text begin (1) hire no more than two staff;
new text end

new text begin (2) assist the commissioner and the advisory board in performing the duties of the
Minnesota Innovation Collaborative; and
new text end

new text begin (3) comply with all state and federal program requirements, and all state and federal
securities and tax laws and regulations.
new text end

new text begin (b) To the extent possible, the space that the Minnesota Innovation Collaborative shall
occupy and lease must be a private coworking facility that includes office space for staff
and space for community engagement for training entrepreneurs. The space leased under
this paragraph is exempt from the requirements in Minnesota Statutes, section 16B.24,
subdivision 6.
new text end

new text begin (c) Except for grants under subdivision 7, the Minnesota Innovation Collaborative must
accept grant applications under this section and provide funding recommendations to the
commissioner, who shall distribute grants based in part on the recommendations.
new text end

new text begin Subd. 5. new text end

new text begin Application process. new text end

new text begin (a) The commissioner shall establish the application form
and procedures for innovation grants.
new text end

new text begin (b) Upon receiving recommendations from the Minnesota Innovation Collaborative
under subdivision 4, paragraph (c), the department is responsible for evaluating all
applications using evaluation criteria developed by the Minnesota Innovation Collaborative,
the advisory board, and the commissioner. Priority shall be given if the applicant is:
new text end

new text begin (1) a business or entrepreneur located in greater Minnesota; or
new text end

new text begin (2) a business owner or entrepreneur who is a woman or minority group member.
new text end

new text begin (c) The department staff, and not the Minnesota Innovation Collaborative staff, is
responsible for awarding funding, disbursing funds, and monitoring grantee performance
for all grants awarded under this section.
new text end

new text begin (d) Grantees must provide matching funds by equal expenditures and grant payments
must be provided on a reimbursement basis after review of submitted receipts by the
department.
new text end

new text begin (e) Grant applications must be accepted on a regular periodic basis by the Minnesota
Innovation Collaborative and must be reviewed by the collaborative and the advisory board
before being submitted to the commissioner with their recommendations.
new text end

new text begin Subd. 6. new text end

new text begin Innovation grants. new text end

new text begin (a) The commissioner shall distribute innovation grants
under this subdivision.
new text end

new text begin (b) The commissioner shall provide a grant of up to $50,000 to an eligible business or
entrepreneur for research and development expenses. Research and development expenditures
may be related but not limited to proof of concept activities, intellectual property protection,
prototype designs and production, and commercial feasibility. Expenditures funded under
this subdivision are not eligible for the research and development tax credit under Minnesota
Statutes, section 290.068. Each business or entrepreneur may receive only one grant under
this paragraph.
new text end

new text begin (c) The commissioner shall provide a grant of up to $25,000 to an eligible start-up or
entrepreneur for direct business expenses including but not limited to rent, equipment
purchases, supplier invoices, and staffing. Taxes imposed by the federal, state, or local
government entities may be not be reimbursed under this paragraph. Each start-up or
entrepreneur may receive only one grant under this paragraph.
new text end

new text begin (d) The commissioner shall provide a grant of up to $7,500 to reimburse an entrepreneur
for health care, housing, or child care expenses for the entrepreneur, spouse, or children 26
years of age or younger. Each entrepreneur may receive only one grant under this paragraph.
new text end

new text begin (e) The commissioner shall provide a grant of up to $50,000 to an eligible business or
entrepreneur that, as a registered client of the Small Business Innovation Research (SBIR)
program, has been awarded a Phase 2 award pursuant to the SBIR or Small Business
Technology Transfer (STTR) programs after July 1, 2019. Each business or entrepreneur
may receive only one grant under this paragraph. Grants under this paragraph are not subject
to the requirements of subdivision 2, paragraph (l), and are awarded without the review or
recommendation of the Minnesota Innovation Collaborative.
new text end

new text begin (f) The commissioner shall provide a grant of up to $25,000 to provide financing to
start-ups to purchase technical assistance and services from public higher education
institutions and nonprofit entities to assist in the development or commercialization of
innovative new products or services.
new text end

new text begin Subd. 7. new text end

new text begin Entrepreneur education grants. new text end

new text begin (a) The commissioner shall make entrepreneur
education grants to institutions of higher education and other organizations to provide
educational programming to entrepreneurs and provide outreach to and collaboration with
businesses, federal and state agencies, institutions of higher education, trade associations,
and other organizations working to advance innovative, high technology businesses
throughout Minnesota.
new text end

new text begin (b) Applications for entrepreneur education grants under this subdivision must be
submitted to the commissioner and evaluated by department staff other than the Minnesota
Innovation Collaborative. The evaluation criteria must be developed by the Minnesota
Innovation Collaborative, the advisory board, and the commissioner with priority given to
an applicant who demonstrates activity assisting businesses or entrepreneurs residing in
greater Minnesota or who are women or minority group members.
new text end

new text begin (c) Department staff other than the Minnesota Innovation Collaborative staff is responsible
for awarding funding, disbursing funds, and monitoring grantee performance under this
subdivision.
new text end

new text begin (d) Grantees may use the grant funds to deliver the following services:
new text end

new text begin (1) development and delivery to high technology businesses of industry specific or
innovative product or process specific counseling on issues of business formation, market
structure, market research and strategies, securing first mover advantage or overcoming
barriers to entry, protecting intellectual property, and securing debt or equity capital. This
counseling is to be delivered in a classroom setting or using distance media presentations;
new text end

new text begin (2) outreach and education to businesses and organizations on the small business
investment tax credit program under Minnesota Statutes, section 116J.8737, the MNvest
crowd-funding program under Minnesota Statutes, section 80A.461, and other state programs
that support high technology business creation especially in underserved communities;
new text end

new text begin (3) collaboration with institutions of higher education, local organizations, federal and
state agencies, the Small Business Development Center, and the Small Business Assistance
Office to create and offer educational programming and ongoing counseling in greater
Minnesota that is consistent with those services offered in the metropolitan area; and
new text end

new text begin (4) events and meetings with other innovation-related organizations to inform
entrepreneurs and potential investors about Minnesota's growing information economy.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin The Minnesota Innovation Collaborative shall report by February 1,
2020, and again on February 1, 2021, to the chairs and ranking minority members of the
committees of the house of representatives and senate having jurisdiction over economic
development policy and finance issues on the work completed, including awards made by
the department under this section.
new text end

new text begin Subd. 9. new text end

new text begin Advisory board. new text end

new text begin (a) The commissioner shall establish an advisory board to
advise the executive director regarding the activities of the Minnesota Innovation
Collaborative and to perform the recommendations described in this section.
new text end

new text begin (b) The advisory board shall consist of ten members and is governed by Minnesota
Statutes, section 15.059. A minimum of six members must be from the private sector
representing business and at least two members but no more than four members from
government and higher education. Appointees shall represent a range of interests, including
entrepreneurs, large businesses, industry organizations, investors, and both public and private
small business service providers.
new text end

new text begin (c) The advisory board shall select a chair from its private sector members. The executive
director shall provide administrative support to the committee.
new text end

ARTICLE 3

OSHA

Section 1.

Minnesota Statutes 2018, section 182.659, subdivision 8, is amended to read:

Subd. 8.

Protection from subpoena; data.

Neither the commissioner nor any employee
of the department deleted text begin , including those employees of the Department of Health providing services
to the Department of Labor and Industry, pursuant to section 182.67, subdivision 1, deleted text end is subject
to subpoena for purposes of inquiry into any occupational safety and health inspection
except in enforcement proceedings brought under this chapter. Data that identify individuals
who provide data to the department as part of an investigation conducted under this chapter
shall be private.

Sec. 2.

Minnesota Statutes 2018, section 182.666, subdivision 1, is amended to read:

Subdivision 1.

Willful or repeated violations.

Any employer who willfully or repeatedly
violates the requirements of section 182.653, or any standard, rule, or order adopted under
the authority of the commissioner as provided in this chapter, may be assessed a fine not to
exceed deleted text begin $70,000 deleted text end new text begin $129,335 new text end for each violation. The minimum fine for a willful violation is
deleted text begin $5,000 deleted text end new text begin $9,240 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 3.

Minnesota Statutes 2018, section 182.666, subdivision 2, is amended to read:

Subd. 2.

Serious violations.

Any employer who has received a citation for a serious
violation of its duties under section 182.653, or any standard, rule, or order adopted under
the authority of the commissioner as provided in this chapter, shall be assessed a fine not
to exceed deleted text begin $7,000 deleted text end new text begin $12,935 new text end for each violation. If a serious violation under section 182.653,
subdivision 2, causes or contributes to the death of an employee, the employer shall be
assessed a fine of up to $25,000 new text begin for each violation new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 4.

Minnesota Statutes 2018, section 182.666, subdivision 3, is amended to read:

Subd. 3.

Nonserious violations.

Any employer who has received a citation for a violation
of its duties under section 182.653, subdivisions 2 to 4, where the violation is specifically
determined not to be of a serious nature as provided in section 182.651, subdivision 12,
may be assessed a fine of up to deleted text begin $7,000 deleted text end new text begin $12,935 new text end for each violation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 5.

Minnesota Statutes 2018, section 182.666, subdivision 4, is amended to read:

Subd. 4.

Failure to correct a violation.

Any employer who fails to correct a violation
for which a citation has been issued under section 182.66 within the period permitted for
its correction, which period shall not begin to run until the date of the final order of the
commissioner in the case of any review proceedings under this chapter initiated by the
employer in good faith and not solely for delay or avoidance of penalties, may be assessed
a fine of not more than deleted text begin $7,000 deleted text end new text begin $12,935 new text end for each day during which the failure or violation
continues.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 6.

Minnesota Statutes 2018, section 182.666, subdivision 5, is amended to read:

Subd. 5.

Posting violations.

Any employer who violates any of the posting requirements,
as prescribed under this chapter, except those prescribed under section 182.661, subdivision
3a, shall be assessed a fine of up to deleted text begin $7,000 deleted text end new text begin $12,935 new text end for each violation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 7.

Minnesota Statutes 2018, section 182.666, is amended by adding a subdivision to
read:

new text begin Subd. 6a. new text end

new text begin Increases for inflation. new text end

new text begin (a) No later than August 31 of each year, beginning
in 2019, the commissioner shall determine the percentage increase in the rate of inflation,
as measured by the implicit price deflator, national data for personal consumption
expenditures as determined by the United States Department of Commerce, Bureau of
Economic Analysis during the 12-month period immediately preceding that August or, if
that data is unavailable, during the most recent 12-month period for which data is available.
The fines in subdivisions 1, 2, 3, 4, and 5, except for the fine for a serious violation under
section 182.653, subdivision 2, that causes or contributes to the death of an employee, are
increased by the lesser of (1) 2.5 percent, rounded to the nearest dollar amount evenly
divisible by ten, or (2) the percentage calculated by the commissioner, rounded to the nearest
dollar amount evenly divisible by ten.
new text end

new text begin (b) The fines increased under paragraph (a) shall not be increased to an amount greater
than the corresponding federal penalties for the specified violations promulgated in United
States Code, title 29, section, 666, subsections (a)-(d), (i), as amended through November
5, 1990, and adjusted according to United States Code, title 28, section 2461, note (Federal
Civil Penalties Inflation Adjustment), as amended through November 2, 2015.
new text end

new text begin (c) A fine must not be reduced under this subdivision. A fine increased under this
subdivision takes effect on the next January 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

ARTICLE 4

CONSTRUCTION CODES

Section 1.

Minnesota Statutes 2018, section 326B.802, subdivision 15, is amended to read:

Subd. 15.

Special skill.

"Special skill" means one of the following eight categories:

(a) Excavation. Excavation includes work in any of the following areas:

(1) excavation;

(2) trenching;

(3) grading; and

(4) site grading.

(b) Masonry and concrete. Masonry and concrete includes work in any of the following
areas:

(1) drain systems;

(2) poured walls;

(3) slabs and poured-in-place footings;

(4) masonry walls;

(5) masonry fireplaces;

(6) masonry veneer; and

(7) water resistance and waterproofing.

(c) Carpentry. Carpentry includes work in any of the following areas:

(1) rough framing;

(2) finish carpentry;

(3) doors, windows, and skylights;

(4) porches and decks, excluding footings;

(5) wood foundations; and

(6) drywall installation, excluding taping and finishing.

(d) Interior finishing. Interior finishing includes work in any of the following areas:

(1) floor covering;

(2) wood floors;

(3) cabinet and counter top installation;

(4) insulation and vapor barriers;

(5) interior or exterior painting;

(6) ceramic, marble, and quarry tile;

(7) ornamental guardrail and installation of prefabricated stairs; and

(8) wallpapering.

(e) Exterior finishing. Exterior finishing includes work in any of the following areas:

(1) siding;

(2) soffit, fascia, and trim;

(3) exterior plaster and stucco;

(4) painting; and

(5) rain carrying systems, including gutters and down spouts.

(f) Drywall and plaster. Drywall and plaster includes work in any of the following
areas:

(1) installation;

(2) taping;

(3) finishing;

(4) interior plaster;

(5) painting; and

(6) wallpapering.

(g) Residential roofing. Residential roofing includes work in any of the following areas:

(1) roof coverings;

(2) roof sheathing;

(3) roof weatherproofing and insulation; deleted text begin and
deleted text end

(4) repair of roof support system, but not construction of new roof support system deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) penetration of roof covering for purposes of attaching a solar photovoltaic system.
new text end

(h) General installation specialties. Installation includes work in any of the following
areas:

(1) garage doors and openers;

(2) pools, spas, and hot tubs;

(3) fireplaces and wood stoves;

(4) asphalt paving and seal coating; deleted text begin and
deleted text end

(5) ornamental guardrail and prefabricated stairs deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) assembly of the support system for a solar photovoltaic system.
new text end

ARTICLE 5

COMBATIVE SPORTS

Section 1.

Minnesota Statutes 2018, section 341.30, subdivision 1, is amended to read:

Subdivision 1.

Licensure; individuals.

All referees, judges, promoters, trainers, deleted text begin ring
announcers, deleted text end timekeepers, ringside physicians, combatants, deleted text begin managers, deleted text end and seconds are
required to be licensed by the commissioner. The commissioner shall not permit any of
these persons to participate in any matter with any combative sport contest unless the
commissioner has first issued the person a license.

Sec. 2.

Minnesota Statutes 2018, section 341.32, subdivision 1, is amended to read:

Subdivision 1.

Annual licensure.

The commissioner may establish and issue annual
licenses subject to the collection of advance fees by the commissioner for promoters,
deleted text begin managers, deleted text end judges, referees, deleted text begin ring announcers, deleted text end ringside physicians, timekeepers, combatants,
trainers, and seconds.

Sec. 3.

Minnesota Statutes 2018, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

(a) The fee schedule for professional and amateur licenses issued by the commissioner
is as follows:

(1) referees, deleted text begin $80 deleted text end new text begin $25 new text end ;

(2) promoters, $700;

(3) judges and knockdown judges, deleted text begin $80 deleted text end new text begin $25 new text end ;

(4) trainers and seconds, $80;

deleted text begin (5) ring announcers, $80;
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end timekeepers, deleted text begin $80 deleted text end new text begin $25 new text end ;

deleted text begin (7) deleted text end new text begin (6) new text end professional combatants, $70;

deleted text begin (8) deleted text end new text begin (7) new text end amateur combatants, $50;

deleted text begin (9) managers, $80; deleted text end and

deleted text begin (10) deleted text end new text begin (8) new text end ringside physicians, deleted text begin $80 deleted text end new text begin $25 new text end .

License fees for promoters are due at least six weeks prior to the combative sport contest.
All other license fees shall be paid no later than the weigh-in prior to the contest. No license
may be issued until all prelicensure requirements are satisfied and fees are paid.

(b) The commissioner shall establish a contest fee for each combative sport contest and
shall consider the size and type of venue when establishing a contest fee. The combative
sport contest fee is $1,500 per event or not more than four percent of the gross ticket sales,
whichever is greater, as determined by the commissioner when the combative sport contest
is scheduled.

(c) A professional or amateur combative sport contest fee is nonrefundable and shall be
paid as follows:

(1) $500 at the time the combative sport contest is scheduled; and

(2) $1,000 at the weigh-in prior to the contest.

If four percent of the gross ticket sales is greater than $1,500, the balance is due to the
commissioner within seven days of the completed contest.

(d) The commissioner may establish the maximum number of complimentary tickets
allowed for each event by rule.

(e) All fees and penalties collected by the commissioner must be deposited in the
commissioner account in the special revenue fund.

ARTICLE 6

COMMUNITY PROSPERITY GRANTS

Section 1.

new text begin COMMUNITY PROSPERITY FUND GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The community prosperity fund grant program
is established to provide grants to public or 501(c)(3) nonprofit entities to implement
innovative economic development projects that will support economic growth in their
community.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have the
meanings given them:
new text end

new text begin (1) "economic development" means activities, services, investments, and infrastructure
that support the economic success of individuals, businesses, and communities by facilitating
an economic environment that produces net new jobs;
new text end

new text begin (2) "innovative project" means the provision of a public service or good that was absent
in the community or of insufficient quantity or quality;
new text end

new text begin (3) "local governmental unit" means a county, city, town, special district, public higher
education institution, or other political subdivision or public corporation; and
new text end

new text begin (4) "community" means any geographic area defined by one or more census tracts.
new text end

new text begin Subd. 3. new text end

new text begin Community prosperity fund grants. new text end

new text begin The commissioner of employment and
economic development shall:
new text end

new text begin (1) develop and implement a community prosperity fund grant program that will provide
matching grants up to 85 percent of total project cost up to $100,000 to implement innovative
economic development projects that will induce economic growth in their community;
new text end

new text begin (2) develop a request for proposals;
new text end

new text begin (3) review responses to requests for proposals and award grants under this section;
new text end

new text begin (4) establish a transparent and objective accountability process focused on outcomes
that grantees agree to achieve; and
new text end

new text begin (5) maintain data on outcomes reported by grantees.
new text end

new text begin Subd. 4. new text end

new text begin Eligible grantees. new text end

new text begin Organizations eligible to receive grant funding under this
section include:
new text end

new text begin (1) local government units; and
new text end

new text begin (2) nonprofit 501(c)(3) organizations that have established partnerships with one or more
local government units to implement economic development projects or activities.
new text end

new text begin Subd. 5. new text end

new text begin Priority of proposals; grant awards. new text end

new text begin The commissioner shall prioritize the
award of grants to proposals that demonstrate that the project:
new text end

new text begin (1) will serve communities with a population of 5,000 or less;
new text end

new text begin (2) will support the economic success of individuals, businesses, and communities by
facilitating an economic environment that produces net new jobs;
new text end

new text begin (3) will provide public services or goods that was absent in the community or of
insufficient quantity or quality;
new text end

new text begin (4) serves a defined geographic area; racial, ethnic, or minority community; or American
Indian community experiencing any the following: below state average wages, above state
average unemployment rate, or below state average labor force participation rate;
new text end

new text begin (5) will be sustainable or continue to have impact beyond the one-time funding from
this program;
new text end

new text begin (6) will be successfully implemented based on the qualifications of the lead organization;
and
new text end

new text begin (7) will serve two or more local government units.
new text end

new text begin Subd. 6. new text end

new text begin Geographic distribution of grants. new text end

new text begin The commissioner shall ensure that a
minimum of 50 percent of grant funds are awarded to communities outside the seven-county
metropolitan area.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin Grantees must report grant program outcomes to the commissioner on
the forms and according to the timelines established by the commissioner.
new text end

ARTICLE 7

CHILD CARE ECONOMIC GRANT PROGRAM

Section 1.

new text begin CHILD CARE ECONOMIC DEVELOPMENT GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established under the Department of
Employment and Economic Development to award grants to eligible local communities to
increase the availability of child care in order to reduce the child care shortage in the
community, and support increased workforce participation, business expansion and retention,
and new business location.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have the
meanings given them:
new text end

new text begin (1) "commissioner" means the commissioner of employment and economic development;
new text end

new text begin (2) "child care" has the meaning given in section 119B.011;
new text end

new text begin (3) "political subdivision" means a county, statutory or home rule charter city, or school
district; and
new text end

new text begin (4) "Indian tribe" means one of the federally recognized Minnesota tribes listed in section
3.922, subdivision 1, clause (1).
new text end

new text begin Subd. 3. new text end

new text begin Eligible expenditures. new text end

new text begin The commissioner may make grants under this section
to implement solutions to reduce the child care shortage in the state including but not limited
to funding for child care business start-ups or expansions, training, facility modifications
or improvements required for licensing, and assistance with licensing and other regulatory
requirements.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin Eligible applicants for grants awarded under this section
include:
new text end

new text begin (1) a political subdivision;
new text end

new text begin (2) an Indian tribe;
new text end

new text begin (3) a Minnesota nonprofit organization organized under chapter 317 having experience
in one or more of the following: the operation of, planning for, financing of, advocacy for,
or advancement of the delivery of child care services in a defined service area spanning the
boundaries of one or more political subdivisions.
new text end

new text begin Subd. 5. new text end

new text begin Application process. new text end

new text begin (a) An eligible applicant must submit an application to
the commissioner on a form prescribed by the commissioner. The commissioner shall
develop procedures governing the application and grant award process. The commissioner
shall act as fiscal agent for the grant program and shall be responsible for receiving and
reviewing grant applications and awarding grants under this section.
new text end

new text begin (b) At least 30 days prior to the first day applications may be submitted each fiscal year,
the commissioner must publish on the department's website the specific criteria and any
quantitative weighting scheme or scoring system the commissioner will use to evaluate or
rank applications and award grants under subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Application contents. new text end

new text begin An applicant for a grant under this section shall provide
the following information on the application:
new text end

new text begin (1) the service area of the project;
new text end

new text begin (2) the project budget;
new text end

new text begin (3) evidence of the child care shortage in the community in which the project is to be
located;
new text end

new text begin (4) the number of licensed child care slots that will be created as a result of the project;
new text end

new text begin (5) the number of families with children under age six that will have access to child care
as a result of the project;
new text end

new text begin (6) community employers and businesses that will benefit from the proposed project;
new text end

new text begin (7) evidence of community support for the project;
new text end

new text begin (8) the total cost of the project;
new text end

new text begin (9) sources of funding or in-kind contributions for the project that will supplement any
grant award; and
new text end

new text begin (10) any additional information requested by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Awarding grants. new text end

new text begin (a) In evaluating applications and awarding grants, the
commissioner may give priority to applications that:
new text end

new text begin (1) are in areas that have a documented shortage of affordable quality child care;
new text end

new text begin (2) demonstrate programmatic or financial collaborations and partnering among private
sector employers, public and nonprofit organizations within geographic areas;
new text end

new text begin (3) serve areas of the state experiencing worker shortages, low prime age workforce
participation rates, or prime age worker population loss that is significantly greater than the
statewide average;
new text end

new text begin (4) provide evidence of strong support for the project from citizens, government,
businesses, and institutions in the community;
new text end

new text begin (5) leverage greater amounts of funding for the project from private and nonstate public
sources.
new text end

new text begin (b) The commissioner shall endeavor to award grants under this section to qualified
applicants in all regions of the state.
new text end

new text begin Subd. 8. new text end

new text begin Limitation. new text end

new text begin (a) No grant awarded under this section may fund more than 50
percent of the total cost of a project.
new text end

new text begin (b) Grants awarded to a single project under this section must not exceed $100,000.
new text end

ARTICLE 8

MINNESOTA INVESTMENT FUND

Section 1.

Minnesota Statutes 2018, section 116J.8731, subdivision 5, is amended to read:

Subd. 5.

Grant limits.

new text begin (a) new text end A Minnesota investment fund grant may not be approved for
an amount in excess of $1,000,000. This limit covers all money paid to complete the same
project, whether paid to one or more grant recipients and whether paid in one or more fiscal
years. A local community or recognized Indian tribal government may retain 40 percent,
but not more than $100,000, of a Minnesota investment fund grant when it is repaid to the
local community or recognized Indian tribal government by the person or entity to which
it was loaned by the local community or Indian tribal government.

new text begin (b) Repayment of funds to a local community or recognized Indian tribal government
under this section may be used for purposes under section 116J.407, and for other economic
or community development projects including loans to businesses in any industry and
community development planning. Funds may be used for the proposed purposes upon the
receipt and approval by the commissioner of employment and economic development of a
resolution passed by the local community or the recognized Indian tribal government that
documents the proposed uses. Activities approved under this paragraph are not limited by
the provisions in this section.
new text end

new text begin (c) new text end Money repaid to the state must be credited to a Minnesota investment revolving loan
account in the state treasury. Funds in the account are appropriated to the commissioner
and must be used in the same manner as are funds appropriated to the Minnesota investment
fund. Funds repaid to the state through existing Minnesota investment fund agreements
must be credited to the Minnesota investment revolving loan account effective July 1, 2005.

new text begin (d) new text end A grant or loan may not be made to a person or entity for the operation or expansion
of a casino or a store which is used solely or principally for retail sales.

new text begin (e) new text end Persons or entities receiving grants or loans must pay each employee total
compensation, including benefits not mandated by law, that on an annualized basis is equal
to at least 110 percent of the federal poverty level for a family of four.

ARTICLE 9

JOB CREATION FUND

Section 1.

Minnesota Statutes 2018, section 116J.8748, subdivision 4, is amended to read:

Subd. 4.

Certification; benefits.

(a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
and (c) when the business has achieved its job creation and capital investment goals noted
in its agreement under subdivision 3.

(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best interests
of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located
outside the metropolitan area may be for up to seven years in length. The eligibility for the
following benefits begins the date the commissioner certifies the business as a qualified
Minnesota job creation fund business under this subdivision:

(1) up to five percent rebate for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
area, on capital investment on qualifying purchases as provided in subdivision 5 with the
total rebate for a project not to exceed $500,000;

(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
in subdivision 6 with the total award not to exceed $500,000;

(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
are allowable for projects that have at least $25,000,000 in capital investment and 200 new
employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75
new employees for projects located outside the metropolitan area;

(4) up to $1,000,000 in capital investment rebates are allowable for projects that have
at least $25,000,000 in capital investment and 200 retained employees for projects located
in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for
projects located outside the metropolitan area; and

(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures are
not eligible for the capital investment rebate provided under subdivision 5.

(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided for
in its agreement under subdivision 3 and the total award does not exceed $500,000 except
as provided under paragraph (b), clauses (3) and (4).

(d) No rebates or award may be provided until the Minnesota job creation fund business
or a third party constructing or managing the project deleted text begin has at least $500,000 in capital
investment in the project and at least ten full-time jobs deleted text end new text begin : (1) meets the capital investment
requirements as provided in subdivision 3, clause (3); and (2) the new full-time jobs as
provided in subdivision 3, clause (3), item (i), new text end have been created and maintained for at least
one year or the retained employees, as provided in paragraph (b), clause (4), remain for at
least one year. The agreement may require additional performance outcomes that need to
be achieved before rebates and awards are provided. If fewer retained jobs are maintained,
but still above the minimum under this subdivision, the capital investment award shall be
reduced on a proportionate basis.

(e) The forms needed to be submitted to document performance by the Minnesota job
creation fund business must be in the form and be made under the procedures specified by
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
and other provisions as specified by the commissioner.

(f) Minnesota job creation fund businesses must pay each new full-time employee added
pursuant to the agreement total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least 110 percent of the federal poverty level for a
family of four.

(g) A Minnesota job creation fund business must demonstrate reasonable progress on
capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement under
subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
for benefits under the submitted application and will need to work with the local government
unit to resubmit a new application and request to be a Minnesota job creation fund business.
Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
be considered a default of the business subsidy agreement.

ARTICLE 10

WAGE THEFT PREVENTION

Section 1.

Minnesota Statutes 2018, section 16C.285, subdivision 3, is amended to read:

Subd. 3.

Minimum criteria.

"Responsible contractor" means a contractor that conforms
to the responsibility requirements in the solicitation document for its portion of the work
on the project and verifies that it meets the following minimum criteria:

(1) the contractor:

(i) is in compliance with workers' compensation and unemployment insurance
requirements;

(ii) is in compliance with Department of Revenue and Department of Employment and
Economic Development registration requirements if it has employees;

(iii) has a valid federal tax identification number or a valid Social Security number if
an individual; and

(iv) has filed a certificate of authority to transact business in Minnesota with the secretary
of state if a foreign corporation or cooperative;

(2) the contractor or related entity is in compliance with and, during the three-year period
before submitting the verification, has not violated section 177.24, 177.25, 177.41 to 177.44,
new text begin 181.03, 181.101, new text end 181.13, 181.14, or 181.722, and has not violated United States Code, title
29, sections 201 to 219, or United States Code, title 40, sections 3141 to 3148. For purposes
of this clause, a violation occurs when a contractor or related entity:

(i) repeatedly fails to pay statutorily required wages or penalties on one or more separate
projects for a total underpayment of $25,000 or more within the three-year period, provided
that a failure to pay is "repeated" only if it involves two or more separate and distinct
occurrences of underpayment during the three-year period;

(ii) has been issued an order to comply by the commissioner of labor and industry that
has become final;

(iii) has been issued at least two determination letters within the three-year period by
the Department of Transportation finding an underpayment by the contractor or related
entity to its own employees;

(iv) has been found by the commissioner of labor and industry to have repeatedly or
willfully violated any of the sections referenced in this clause pursuant to section 177.27;

(v) has been issued a ruling or findings of underpayment by the administrator of the
Wage and Hour Division of the United States Department of Labor that have become final
or have been upheld by an administrative law judge or the Administrative Review Board;
deleted text begin or
deleted text end

(vi) has been found liable for underpayment of wages or penalties or misrepresenting a
construction worker as an independent contractor in an action brought in a court having
jurisdiction deleted text begin . deleted text end new text begin ; or
new text end

new text begin (vii) has been convicted of a violation of section 177.32, subdivision 1, or 609.52,
subdivision 2, clause (19).
new text end

Provided that, if the contractor or related entity contests a determination of underpayment
by the Department of Transportation in a contested case proceeding, a violation does not
occur until the contested case proceeding has concluded with a determination that the
contractor or related entity underpaid wages or penalties;

(3) the contractor or related entity is in compliance with and, during the three-year period
before submitting the verification, has not violated section 181.723 or chapter 326B. For
purposes of this clause, a violation occurs when a contractor or related entity has been issued
a final administrative or licensing order;

(4) the contractor or related entity has not, more than twice during the three-year period
before submitting the verification, had a certificate of compliance under section 363A.36
revoked or suspended based on the provisions of section 363A.36, with the revocation or
suspension becoming final because it was upheld by the Office of Administrative Hearings
or was not appealed to the office;

(5) the contractor or related entity has not received a final determination assessing a
monetary sanction from the Department of Administration or Transportation for failure to
meet targeted group business, disadvantaged business enterprise, or veteran-owned business
goals, due to a lack of good faith effort, more than once during the three-year period before
submitting the verification;

(6) the contractor or related entity is not currently suspended or debarred by the federal
government or the state of Minnesota or any of its departments, commissions, agencies, or
political subdivisions that have authority to debar a contractor; and

(7) all subcontractors and motor carriers that the contractor intends to use to perform
project work have verified to the contractor through a signed statement under oath by an
owner or officer that they meet the minimum criteria listed in clauses (1) to (6).

Any violations, suspensions, revocations, or sanctions, as defined in clauses (2) to (5),
occurring prior to July 1, 2014, shall not be considered in determining whether a contractor
or related entity meets the minimum criteria.

Sec. 2.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Authority to investigate. new text end

new text begin To carry out the purposes of this chapter and chapters
181, 181A, and 184, and utilizing the enforcement authority of section 175.20, the
commissioner is authorized to enter the places of business and employment of any employer
in the state to investigate wages, hours, and other conditions and practices of work, collect
evidence, and conduct interviews. The commissioner is authorized to enter the places of
business and employment during working hours and without delay. The commissioner may
use investigation methods that include but are not limited to examination, surveillance,
transcription, copying, scanning, photographing, audio or video recording, testing, and
sampling along with taking custody of evidence. Evidence that may be collected includes
but is not limited to documents, records, books, registers, payrolls, electronically and digitally
stored information, machinery, equipment, tools, and other tangible items that in any way
relate to wages, hours, and other conditions and practices of work. The commissioner may
privately interview any individual, including owners, employers, operators, agents, workers,
and other individuals who may have knowledge of the conditions and practices of work
under investigation.
new text end

Sec. 3.

Minnesota Statutes 2018, section 177.27, subdivision 2, is amended to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer
of employees working in the state to submit to the commissioner photocopies, certified
copies, or, if necessary, the originals of employment records which the commissioner deems
necessary or appropriate. The records which may be required include full and correct
statements in writing, including sworn statements by the employer, containing information
relating to wages, new text begin gratuities, new text end hours, names, addresses, and any other information pertaining
to the employer's employees and the conditions of their employment as the commissioner
deems necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery
or, if necessary, by personal delivery by the employer or a representative of the employer,
as authorized by the employer in writing.

deleted text begin The commissioner may fine the employer up to $1,000 for each failure to submit or
deliver records as required by this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
under this subdivision, the appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.
deleted text end

Sec. 4.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Penalties. new text end

new text begin The commissioner may fine an employer up to $10,000 for each
failure to submit or deliver records as required by this chapter and chapters 181, 181A, and
184. This penalty is in addition to any penalties provided under sections 177.30 and 177.32,
subdivision 1. In determining the amount of a civil penalty under this subdivision, the
appropriateness of the penalty to the size of the employer's business and the gravity of the
violation as provided in section 14.045, subdivision 3, paragraph (a), shall be considered.
new text end

Sec. 5.

Minnesota Statutes 2018, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, or with any rule promulgated
under section 177.28. The commissioner shall issue an order requiring an employer to
comply with sections 177.41 to 177.435 if the violation is repeated. For purposes of this
subdivision only, a violation is repeated if at any time during the two years that preceded
the date of violation, the commissioner issued an order to the employer for violation of
sections 177.41 to 177.435 and the order is final or the commissioner and the employer
have entered into a settlement agreement that required the employer to pay back wages that
were required by sections 177.41 to 177.435. The department shall serve the order upon the
employer or the employer's authorized representative in person or by certified mail at the
employer's place of business. An employer who wishes to contest the order must file written
notice of objection to the order with the commissioner within 15 calendar days after being
served with the order. A contested case proceeding must then be held in accordance with
sections 14.57 to 14.69. new text begin The employer to whom the order is issued and the commissioner,
who may designate appropriate representation to appear on behalf of the commissioner in
the administrative proceeding, are the parties to the hearing. new text end If, within 15 calendar days
after being served with the order, the employer fails to file a written notice of objection with
the commissioner, the order becomes a final order of the commissioner.

Sec. 6.

Minnesota Statutes 2018, section 177.27, subdivision 7, is amended to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have
violated a section identified in subdivision 4, or any rule adopted under section 177.28, and
the commissioner issues an order to comply, the commissioner shall order the employer to
cease and desist from engaging in the violative practice and to take such affirmative steps
that in the judgment of the commissioner will effectuate the purposes of the section or rule
violated. The commissioner shall order the employer to pay to the aggrieved parties deleted text begin back
pay, deleted text end new text begin wages owed, new text end gratuities new text begin received new text end , and compensatory damages, less any amount actually
paid to the employee by the employer, and for an additional equal amount as liquidated
damages. Any employer who is found by the commissioner to have repeatedly or willfully
violated a section or sections identified in subdivision 4 new text begin , or found to owe to aggrieved parties
wages or gratuities in an amount that exceeds $1,000, new text end shall be subject to a civil penalty of
up to deleted text begin $1,000 deleted text end new text begin $2,000 new text end for each violation for each employee. In determining the amount of a
civil penalty under this subdivision, the appropriateness of such penalty to the size of the
employer's business and the gravity of the violation shall be considered. In addition, the
commissioner may order the employer to reimburse the department and the attorney general
for all appropriate litigation and hearing costs expended in preparation for and in conducting
the contested case proceeding, unless payment of costs would impose extreme financial
hardship on the employer. If the employer is able to establish extreme financial hardship,
then the commissioner may order the employer to pay a percentage of the total costs that
will not cause extreme financial hardship. Costs include but are not limited to the costs of
services rendered by the attorney general, private attorneys if engaged by the department,
administrative law judges, court reporters, and expert witnesses as well as the cost of
transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's
order from the date the order is signed by the commissioner until it is paid, at an annual rate
provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish
escrow accounts for purposes of distributing damages.

Sec. 7.

Minnesota Statutes 2018, section 177.27, subdivision 8, is amended to read:

Subd. 8.

Court actions; suits brought by private parties.

An employee may bring a
civil action seeking redress for a violation or violations of sections 177.21 to 177.44 directly
to district court. An employer who pays an employee less than the wages and overtime
compensation to which the employee is entitled under sections 177.21 to 177.44 is liable
to the employee for the full amount of the wages, gratuities, and overtime compensation,
less any amount the employer is able to establish was actually paid to the employee and for
deleted text begin an additional equal deleted text end new text begin double the new text end amount as liquidated damages. In addition, in an action under
this subdivision the employee may seek damages and other appropriate relief provided by
subdivision 7 and otherwise provided by law. An agreement between the employee and the
employer to work for less than the applicable wage is not a defense to the action.

Sec. 8.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Subpoenas. new text end

new text begin In order to carry out the purposes of this chapter and chapters
181, 181A, and 184, the commissioner may issue subpoenas to compel persons to appear
before the commissioner to give testimony and produce and permit inspection, copying,
testing, or sampling of designated documents, records, books, registers, payrolls,
electronically and digitally stored information, machinery, equipment, tools, and other
tangible items that in any way relate to wages, hours, and other conditions and practices of
work in the possession, custody, or control of that person that are deemed necessary or
appropriate by the commissioner. A subpoena may specify the form or format in which
electronically or digitally stored information is to be produced. Upon the application of the
commissioner, a district court shall treat the failure of any person to obey a subpoena lawfully
issued by the commissioner under this subdivision as a contempt of court.
new text end

Sec. 9.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Court orders for entrance and inspection. new text end

new text begin To carry out the purposes of this
chapter and chapters 181, 181A, and 184, and utilizing the enforcement authority of section
175.20, the commissioner is authorized to enter places of business and employment of any
employer in the state to investigate wages, hours, and other conditions and practices of
work, collect evidence, and conduct interviews. The commissioner is authorized to enter
the places of business and employment during working hours and without delay. Upon the
anticipated refusal based on a refusal to permit entrance on a prior occasion or actual refusal
of an employer, owner, operator, or agent in charge of an employer's place of business or
employment, the commissioner may apply for an order in the district court in the county in
which the place of business or employment is located, to compel an employer, owner,
operator, or agent in charge of the place of business or employment to permit the
commissioner entry to investigate wages, hours, and other conditions and practices of work,
collect evidence, and interview witnesses.
new text end

Sec. 10.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin State licensing or regulatory power. new text end

new text begin In the case of an employer which is
subject to the licensing or regulatory power of the state or any political subdivision or agency
thereof, if the commissioner issues an order to comply under subdivision 4, the commissioner
may provide the licensing or regulatory agency a copy of the order to comply. Unless the
order to comply is reversed in the course of administrative or judicial review, the order to
comply is binding on the agency and the agency may take appropriate action, including
action related to the eligibility, renewal, suspension, or revocation of a license or certificate
of public convenience and necessity if the agency is otherwise authorized to take such action.
new text end

Sec. 11.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Public contracts. new text end

new text begin In the case of an employer that is a party to a public contract,
if the commissioner issues an order to comply under subdivision 4, the commissioner may
provide a copy of the order to comply to the contract letting agency. Unless the order to
comply is reversed in the course of administrative or judicial review, an order to comply is
binding on the contract letting agency and the agency may take appropriate administrative
action, including the imposition of financial penalties and eligibility for, termination or
nonrenewal of a contract, in whole or in part, if the agency is otherwise authorized to take
the action.
new text end

Sec. 12.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 15. new text end

new text begin Notice to employees of compliance orders and citations. new text end

new text begin In a compliance
order or citation issued under this chapter and chapters 181, 181A, and 184, the commissioner
may require that the provisions of a compliance order or citation setting out the violations
found by the commissioner and any subsequent document setting out the resolution of the
compliance order or citation through settlement agreement or other final disposition, upon
receipt by the employer, be made available for review by the employees of the employer
using the means the employer uses to provide other work-related notices to the employer's
employees. The means used by the employer must be at least as effective as the following
options for providing notice: (1) posting a copy of the compliance order or citation at each
location where employees perform work and where the notice must be readily observed and
easily reviewed by all employees performing work; or (2) providing a paper or electronic
copy of the compliance order or citation to employees. Each citation and proposed penalty
shall be posted or made available to employees for a minimum period of 20 days. Upon
issuance of a compliance order or citation to an employer, the commissioner may also
provide the provisions of the compliance order or citation setting out the violations found
by the commissioner and any resolution of a compliance order or citation through settlement
agreement or other final disposition to the employer's employees who may be affected by
the order or citation and how the order or citation and resolution may affect their interests.
new text end

Sec. 13.

Minnesota Statutes 2018, section 177.30, is amended to read:

177.30 KEEPING RECORDS; PENALTY.

(a) Every employer subject to sections 177.21 to 177.44 new text begin and 181.01 to 181.171 new text end must
make and keep a record of:

(1) the name, address, new text begin job title or classification, new text end and occupation of each employee;

(2) the rate of pay, and the amount paid each pay period to each employee new text begin , including
whether each employee is paid by the hour, shift, day, week, salary, piece, commission, or
other method new text end ;

(3) the hours worked each day and each workweek by the employee new text begin , including for all
employees paid at piece rate, the number of pieces completed at each piece rate new text end ;

new text begin (4) any personnel policies provided to employees;
new text end

new text begin (5) a copy of the notice provided to each employee as required by section 181.032,
paragraph (d);
new text end

deleted text begin (4) deleted text end new text begin (6) new text end for each employer subject to sections 177.41 to 177.44, and while performing
work on public works projects funded in whole or in part with state funds, the employer
shall furnish under oath signed by an owner or officer of an employer to the contracting
authority and the project owner every two weeks, a certified payroll report with respect to
the wages and benefits paid each employee during the preceding weeks specifying for each
employee: name; identifying number; prevailing wage master job classification; hours
worked each day; total hours; rate of pay; gross amount earned; each deduction for taxes;
total deductions; net pay for week; dollars contributed per hour for each benefit, including
name and address of administrator; benefit account number; and telephone number for
health and welfare, vacation or holiday, apprenticeship training, pension, and other benefit
programs; and

deleted text begin (5) deleted text end new text begin (7) new text end other information the commissioner finds necessary and appropriate to enforce
sections 177.21 to 177.435. The records must be kept for three years deleted text begin in or near the premises
where an employee works deleted text end except each employer subject to sections 177.41 to 177.44, and
while performing work on public works projects funded in whole or in part with state funds,
the records must be kept for three years after the contracting authority has made final payment
on the public works project.

deleted text begin (b) The commissioner may fine an employer up to $1,000 for each failure to maintain
records as required by this section. This penalty is in addition to any penalties provided
under section 177.32, subdivision 1. In determining the amount of a civil penalty under this
subdivision, the appropriateness of such penalty to the size of the employer's business and
the gravity of the violation shall be considered.
deleted text end

new text begin (b) All records required to be made and kept under paragraph (a) must be made available
for inspection by the commissioner upon demand. The records must be either kept at the
place where employees are working or kept in a manner that allows the employer to comply
with this paragraph within 24 hours.
new text end

new text begin (c) The commissioner may fine an employer up to $10,000 for each failure to make and
keep accurate records as required by this chapter and chapters 181, 181A, and 184. This
penalty is in addition to any penalties provided under sections 177.27, subdivision 2, and
177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision,
the appropriateness of such penalty to the size of the employer's business and the gravity
of the violation as provided in section 14.045, subdivision 3, paragraph (a), shall be
considered. Penalties issued for a de minimis error in making and keeping records required
by this chapter and chapters 181, 181A, and 184, shall not exceed $1,000 for a first finding
of violation by the commissioner if the employer immediately corrects the error identified
by the commissioner. If an employer fails to make or keep or fails to submit or deliver
records as required by this chapter and chapter 181, 181A, or 184, and as a result issues
arise as to whether the employer has committed alleged violations, it shall be presumed that
the employer has committed the violations alleged and the employer shall bear the burden
of rebutting that presumption through clear and convincing evidence. The commissioner
may make a determination of wages, salary, earnings, commissions, and gratuities owed
based on available evidence and any contemporaneous records maintained by an employee
on rates of pay, days and hours worked, work performed and wages, salary, earnings,
commissions, and gratuities received by the employee, which shall be given deference in
determining wages owed the employee.
new text end

Sec. 14.

Minnesota Statutes 2018, section 177.32, subdivision 1, is amended to read:

Subdivision 1.

Misdemeanors.

new text begin (a) new text end An employer who does any of the following is guilty
of a misdemeanor:

(1) hinders or delays the commissioner in the performance of duties required under
sections 177.21 to 177.435 new text begin , and chapter 181 new text end ;

(2) refuses to admit the commissioner to the place of business or employment of the
employer, as required by section 177.27, deleted text begin subdivision 1 deleted text end new text begin subdivision 1a new text end ;

(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;

(4) falsifies any record;

(5) refuses to make any record available, or to furnish a sworn statement of the record
or any other information as required by section 177.27;

(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary
of the applicable rules as required by section 177.31;

(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21
to 177.44;

(8) refuses to allow adequate time from work as required by section 177.253; or

(9) otherwise violates any provision of sections 177.21 to 177.44.

new text begin (b) An employer is guilty of a gross misdemeanor if the employer is found to have
intentionally retaliated against an employee for asserting rights or remedies under sections
177.21 to 177.44, or section 181.03.
new text end

Sec. 15.

new text begin [177.45] ENFORCEMENT; REMEDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Public enforcement. new text end

new text begin In addition to the enforcement of this chapter by
the department, the attorney general may enforce this chapter under section 8.31.
new text end

new text begin Subd. 2. new text end

new text begin Remedies cumulative. new text end

new text begin The remedies provided in this chapter are cumulative
and do not restrict any remedy that is otherwise available, including remedies provided
under section 8.31. The remedies available under this section are not exclusive and are in
addition to any other requirements, rights, remedies, and penalties provided by law.
new text end

Sec. 16.

Minnesota Statutes 2018, section 181.03, subdivision 1, is amended to read:

Subdivision 1.

Prohibited practices.

deleted text begin An employer may not, directly or indirectly and
with intent to defraud:
deleted text end

new text begin (a) No employer shall commit wage theft.
new text end

new text begin (b) For the purposes of this section, wage theft is committed if:
new text end

new text begin (1) an employer has failed to pay an employee all owed wages, salary, gratuities, earnings,
or commissions at the employee's rate or rates of pay or at the rate or rates required by law,
including any applicable statute, regulation, rule, ordinance, government resolution or policy,
contract, or other legal authority, whichever rate of pay is greater;
new text end

deleted text begin (1) cause deleted text end new text begin (2) an employer directly or indirectly causes new text end any employee to give a receipt
for wages for a greater amount than that actually paid to the employee for services rendered;

deleted text begin (2) deleted text end new text begin (3) an employer new text end directly or indirectly deleted text begin demand or receive deleted text end new text begin demands or receives new text end from
any employee any rebate or refund from the wages owed the employee under contract of
employment with the employer; or

deleted text begin (3) deleted text end new text begin (4) an employer new text end in any manner deleted text begin make deleted text end new text begin makes new text end or deleted text begin attempt deleted text end new text begin attempts new text end to make it appear
that the wages paid to any employee were greater than the amount actually paid to the
employee.

Sec. 17.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Retaliation. new text end

new text begin An employer may not retaliate against an employee for asserting
rights or remedies under this section. A rebuttable presumption of unlawful retaliation under
this section exists whenever an employer takes adverse action against an employee within
90 days of the employee asserting rights or remedies under this section.
new text end

Sec. 18.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin The use of an enforcement provision in this section shall not
preclude the use of any other enforcement provision provided by law.
new text end

Sec. 19.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Citations. new text end

new text begin (a) In addition to other remedies and penalties provided by this
chapter and chapter 177, the commissioner may issue a citation for a civil penalty of up to
$1,000 for any wage theft of up to $1,000 by serving the citation on the employer. The
citation may direct the employer to pay employees in a manner prescribed by the
commissioner any wages, salary, gratuities, earnings, or commissions owed to the employee
within 15 days of service of the citation on the employer. The commissioner shall serve the
citation upon the employer or the employer's authorized representative in person or by
certified mail at the employer's place of business or registered office address with the
secretary of state. The citation shall require the employer to correct the violation and cease
and desist from committing the violation.
new text end

new text begin (b) In determining the amount of the civil penalty, the commissioner shall consider the
size of the employer's business and the gravity of the violation as provided in section 14.045,
subdivision 3, paragraph (a). If the citation includes a penalty assessment, the penalty is
due and payable on the date the citation becomes final. The commissioner may vacate the
citation if the employer pays the amount of wages, salaries, commissions, earnings, and
gratuities due in the citation within five days after the citation is served on the employer.
new text end

Sec. 20.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Administrative review. new text end

new text begin (a) Within 15 days after the commissioner issues a
citation under subdivision 6, the employer to whom the citation is issued may request a
hearing to review the citation. The request for hearing must be in writing and must be served
on the commissioner at the address specified in the citation. If the employer does not request
a hearing or if the employer's written request for hearing is not served on the commissioner
by the 15th day after the commissioner issues the citation, the citation becomes a final order
of the commissioner and is not subject to review by any court or agency. The hearing request
must state the reasons for seeking review of the citation.
new text end

new text begin (b) The employer to whom the citation is issued and the commissioner, who may
designate appropriate representation to appear on behalf of the commissioner in the
administrative proceeding, are the parties to the hearing. The commissioner must notify the
employer to whom the citation is issued of the time and place of the hearing at least 15 days
before the hearing. The hearing shall be conducted under Minnesota Rules, parts 1400.8510
to 1400.8612, as modified by this section.
new text end

new text begin (c) If a hearing has been held, the commissioner shall not issue a final order until at least
five days after the date of the administrative law judge's report. Any person aggrieved by
the administrative law judge's report may, within those five days, serve written comments
to the commissioner on the report and the commissioner shall consider and enter the
comments in the record. The commissioner's final order shall comply with sections 14.61,
subdivision 2, and 14.62, subdivisions 1 and 2a, and may be appealed in the manner provided
in sections 14.63 to 14.69.
new text end

Sec. 21.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Effect on other laws. new text end

new text begin Nothing in this section shall be construed to limit the
application of other state or federal laws.
new text end

Sec. 22.

Minnesota Statutes 2018, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER new text begin ; NOTICE
TO EMPLOYEE new text end .

(a) At the end of each pay period, the employer shall provide each employee an earnings
statement, either in writing or by electronic means, covering that pay period. An employer
who chooses to provide an earnings statement by electronic means must provide employee
access to an employer-owned computer during an employee's regular working hours to
review and print earnings statements.

(b) The earnings statement may be in any form determined by the employer but must
include:

(1) the name of the employee;

(2) the deleted text begin hourly deleted text end rate new text begin or rates new text end of pay deleted text begin (if applicable) deleted text end new text begin and basis thereof, including whether
the employee is paid by the hour, shift, day, week, salary, piece, commission, or other
method new text end ;

new text begin (3) allowances, if any, claimed pursuant to permitted meals and lodging;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end the total number of hours worked by the employee unless exempt from chapter
177;

deleted text begin (4) deleted text end new text begin (5) new text end the total amount of gross pay earned by the employee during that period;

deleted text begin (5) deleted text end new text begin (6) new text end a list of deductions made from the employee's pay;

deleted text begin (6) deleted text end new text begin (7) new text end the net amount of pay after all deductions are made;

deleted text begin (7) deleted text end new text begin (8) new text end the date on which the pay period ends; deleted text begin and
deleted text end

deleted text begin (8) deleted text end new text begin (9) new text end the legal name of the employer and the operating name of the employer if different
from the legal name deleted text begin . deleted text end new text begin ;
new text end

new text begin (10) the physical address of the employer's main office or principal place of business
and a mailing address if different; and
new text end

new text begin (11) the telephone number of the employer.
new text end

(c) An employer must provide earnings statements to an employee in writing, rather
than by electronic means, if the employer has received at least 24 hours notice from an
employee that the employee would like to receive earnings statements in written form. Once
an employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.

new text begin (d) At the start of employment, an employer shall provide each employee a written notice
containing the following information:
new text end

new text begin (1) the rate or rates of pay, including the specific application of any additional rates, and
basis thereof, including whether the employee is paid by the hour, shift, day, week, salary,
piece, commission, or other method;
new text end

new text begin (2) allowances, if any, claimed pursuant to permitted meals and lodging;
new text end

new text begin (3) paid vacation, sick time, or other paid time off accruals and terms of use;
new text end

new text begin (4) the employee's employment status and whether the employee is exempt from minimum
wage, overtime, and other provisions of chapter 177, and on what basis;
new text end

new text begin (5) a list of deductions that may be made from the employee's pay;
new text end

new text begin (6) the dates on which the pay periods start and end and the regularly scheduled payday;
new text end

new text begin (7) the legal name of the employer and the operating name of the employer if different
from the legal name;
new text end

new text begin (8) the address of the employer's principal place of business and a mailing address if
different; and
new text end

new text begin (9) the telephone number of the employer.
new text end

new text begin (e) The employer must keep a copy of the notice under paragraph (d) signed by each
employee acknowledging receipt of the notice. The notice must be provided to each employee
in English and in the employee's native language.
new text end

new text begin (f) An employer must provide the employee any written changes to the information
contained in the notice under paragraph (d) at least seven calendar days prior to the time
the changes take effect. The changes must be signed by the employee before the changes
go into effect. The employer must keep a signed copy of all notice of changes as well as
the initial notices under paragraph (d).
new text end

Sec. 23.

Minnesota Statutes 2018, section 181.101, is amended to read:

181.101 WAGES; HOW OFTEN PAID.

(a) Except as provided in paragraph (b), every employer must pay all wages earned by
an employee at least once every deleted text begin 31 deleted text end new text begin 16 new text end days on a regular payday designated in advance by
the employer regardless of whether the employee requests payment at longer intervals.
deleted text begin Unless paid earlier, the wages earned during the first half of the first 31-day pay period
become due on the first regular payday following the first day of work. deleted text end new text begin An employer's pay
period must be no longer than 16 days. All wages earned in a pay period must be paid to
an employee within ten days of the end of that pay period. new text end If wages earned are not paid, the
commissioner of labor and industry or the commissioner's representative may new text begin serve a new text end demand
new text begin for new text end payment on behalf of an employee. If payment is not made within deleted text begin ten deleted text end new text begin five new text end days of new text begin service
of the new text end demand, the commissioner may charge and collect the wages earned and deleted text begin a penalty deleted text end new text begin
liquidated damages new text end in the amount of the employee's average daily earnings at the new text begin employee's
new text end rate deleted text begin agreed upon in the contract of employment, not exceeding 15 days in all, deleted text end new text begin or rates of
pay or at the rate or rates required by law, including any applicable statute, regulation, rule,
ordinance, government resolution or policy, contract, or other legal authority, whichever
rate of pay is greater, new text end for each day beyond the deleted text begin ten-day deleted text end new text begin five-day new text end limit following the demand.
Money collected by the commissioner must be paid to the employee concerned. This section
does not prevent an employee from prosecuting a claim for wages. This section does not
prevent a school district, other public school entity, or other school, as defined under section
120A.22, from paying any wages earned by its employees during a school year on regular
paydays in the manner provided by an applicable contract or collective bargaining agreement,
or a personnel policy adopted by the governing board. For purposes of this section,
"employee" includes a person who performs agricultural labor as defined in section 181.85,
subdivision 2. For purposes of this section, wages are earned on the day an employee works.

(b) An employer of a volunteer firefighter, as defined in section 424A.001, subdivision
10, a member of an organized first responder squad that is formally recognized by a political
subdivision in the state, or a volunteer ambulance driver or attendant must pay all wages
earned by the volunteer firefighter, first responder, or volunteer ambulance driver or attendant
at least once every 31 days, unless the employer and the employee mutually agree upon
payment at longer intervals.

Sec. 24.

new text begin [181.1721] ENFORCEMENT; REMEDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Public enforcement. new text end

new text begin In addition to the enforcement of this chapter by
the department, the attorney general may enforce this chapter under section 8.31.
new text end

new text begin Subd. 2. new text end

new text begin Remedies cumulative. new text end

new text begin The remedies provided in this chapter are cumulative
and do not restrict any remedy that is otherwise available, including remedies provided
under section 8.31. The remedies available under this section are not exclusive and are in
addition to any other requirements, rights, remedies, and penalties provided by law.
new text end

Sec. 25.

Minnesota Statutes 2018, section 609.52, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

In this section:

(1) "Property" means all forms of tangible property, whether real or personal, without
limitation including documents of value, electricity, gas, water, corpses, domestic animals,
dogs, pets, fowl, and heat supplied by pipe or conduit by municipalities or public utility
companies and articles, as defined in clause (4), representing trade secrets, which articles
shall be deemed for the purposes of Extra Session Laws 1967, chapter 15 to include any
trade secret represented by the article.

(2) "Movable property" is property whose physical location can be changed, including
without limitation things growing on, affixed to, or found in land.

(3) "Value" means the retail market value at the time of the theft, or if the retail market
value cannot be ascertained, the cost of replacement of the property within a reasonable
time after the theft, or in the case of a theft or the making of a copy of an article representing
a trade secret, where the retail market value or replacement cost cannot be ascertained, any
reasonable value representing the damage to the owner which the owner has suffered by
reason of losing an advantage over those who do not know of or use the trade secret. For a
check, draft, or other order for the payment of money, "value" means the amount of money
promised or ordered to be paid under the terms of the check, draft, or other order. For a
theft committed within the meaning of subdivision 2, clause (5), items (i) and (ii), if the
property has been restored to the owner, "value" means the value of the use of the property
or the damage which it sustained, whichever is greater, while the owner was deprived of
its possession, but not exceeding the value otherwise provided herein. For a theft committed
within the meaning of subdivision 2, clause (9), if the property has been restored to the
owner, "value" means the rental value of the property, determined at the rental rate contracted
by the defendant or, if no rental rate was contracted, the rental rate customarily charged by
the owner for use of the property, plus any damage that occurred to the property while the
owner was deprived of its possession, but not exceeding the total retail value of the property
at the time of rental. new text begin For a theft committed within the meaning of subdivision 2, clause (19),
"value" means the difference between wages legally required to be reported or paid to an
employee and the amount actually reported or paid to the employee.
new text end

(4) "Article" means any object, material, device or substance, including any writing,
record, recording, drawing, sample specimen, prototype, model, photograph, microorganism,
blueprint or map, or any copy of any of the foregoing.

(5) "Representing" means describing, depicting, containing, constituting, reflecting or
recording.

(6) "Trade secret" means information, including a formula, pattern, compilation, program,
device, method, technique, or process, that:

(i) derives independent economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use, and

(ii) is the subject of efforts that are reasonable under the circumstances to maintain its
secrecy.

(7) "Copy" means any facsimile, replica, photograph or other reproduction of an article,
and any note, drawing, or sketch made of or from an article while in the presence of the
article.

(8) "Property of another" includes property in which the actor is co-owner or has a lien,
pledge, bailment, or lease or other subordinate interest, property transferred by the actor in
circumstances which are known to the actor and which make the transfer fraudulent as
defined in section 513.44, property possessed pursuant to a short-term rental contract, and
property of a partnership of which the actor is a member, unless the actor and the victim
are husband and wife. It does not include property in which the actor asserts in good faith
a claim as a collection fee or commission out of property or funds recovered, or by virtue
of a lien, setoff, or counterclaim.

(9) "Services" include but are not limited to labor, professional services, transportation
services, electronic computer services, the supplying of hotel accommodations, restaurant
services, entertainment services, advertising services, telecommunication services, and the
supplying of equipment for use including rental of personal property or equipment.

(10) "Motor vehicle" means a self-propelled device for moving persons or property or
pulling implements from one place to another, whether the device is operated on land, rails,
water, or in the air.

(11) "Motor fuel" has the meaning given in section 604.15, subdivision 1.

(12) "Retailer" has the meaning given in section 604.15, subdivision 1.

Sec. 26.

Minnesota Statutes 2018, section 609.52, subdivision 2, is amended to read:

Subd. 2.

Acts constituting theft.

(a) Whoever does any of the following commits theft
and may be sentenced as provided in subdivision 3:

(1) intentionally and without claim of right takes, uses, transfers, conceals or retains
possession of movable property of another without the other's consent and with intent to
deprive the owner permanently of possession of the property; or

(2) with or without having a legal interest in movable property, intentionally and without
consent, takes the property out of the possession of a pledgee or other person having a
superior right of possession, with intent thereby to deprive the pledgee or other person
permanently of the possession of the property; or

(3) obtains for the actor or another the possession, custody, or title to property of or
performance of services by a third person by intentionally deceiving the third person with
a false representation which is known to be false, made with intent to defraud, and which
does defraud the person to whom it is made. "False representation" includes without
limitation:

(i) the issuance of a check, draft, or order for the payment of money, except a forged
check as defined in section 609.631, or the delivery of property knowing that the actor is
not entitled to draw upon the drawee therefor or to order the payment or delivery thereof;
or

(ii) a promise made with intent not to perform. Failure to perform is not evidence of
intent not to perform unless corroborated by other substantial evidence; or

(iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost
report used to establish a rate or claim for payment for medical care provided to a recipient
of medical assistance under chapter 256B, which intentionally and falsely states the costs
of or actual services provided by a vendor of medical care; or

(iv) the preparation or filing of a claim for reimbursement for providing treatment or
supplies required to be furnished to an employee under section 176.135 which intentionally
and falsely states the costs of or actual treatment or supplies provided; or

(v) the preparation or filing of a claim for reimbursement for providing treatment or
supplies required to be furnished to an employee under section 176.135 for treatment or
supplies that the provider knew were medically unnecessary, inappropriate, or excessive;
or

(4) by swindling, whether by artifice, trick, device, or any other means, obtains property
or services from another person; or

(5) intentionally commits any of the acts listed in this subdivision but with intent to
exercise temporary control only and:

(i) the control exercised manifests an indifference to the rights of the owner or the
restoration of the property to the owner; or

(ii) the actor pledges or otherwise attempts to subject the property to an adverse claim;
or

(iii) the actor intends to restore the property only on condition that the owner pay a
reward or buy back or make other compensation; or

(6) finds lost property and, knowing or having reasonable means of ascertaining the true
owner, appropriates it to the finder's own use or to that of another not entitled thereto without
first having made reasonable effort to find the owner and offer and surrender the property
to the owner; or

(7) intentionally obtains property or services, offered upon the deposit of a sum of money
or tokens in a coin or token operated machine or other receptacle, without making the
required deposit or otherwise obtaining the consent of the owner; or

(8) intentionally and without claim of right converts any article representing a trade
secret, knowing it to be such, to the actor's own use or that of another person or makes a
copy of an article representing a trade secret, knowing it to be such, and intentionally and
without claim of right converts the same to the actor's own use or that of another person. It
shall be a complete defense to any prosecution under this clause for the defendant to show
that information comprising the trade secret was rightfully known or available to the
defendant from a source other than the owner of the trade secret; or

(9) leases or rents personal property under a written instrument and who:

(i) with intent to place the property beyond the control of the lessor conceals or aids or
abets the concealment of the property or any part thereof; or

(ii) sells, conveys, or encumbers the property or any part thereof without the written
consent of the lessor, without informing the person to whom the lessee sells, conveys, or
encumbers that the same is subject to such lease or rental contract with intent to deprive the
lessor of possession thereof; or

(iii) does not return the property to the lessor at the end of the lease or rental term, plus
agreed-upon extensions, with intent to wrongfully deprive the lessor of possession of the
property; or

(iv) returns the property to the lessor at the end of the lease or rental term, plus
agreed-upon extensions, but does not pay the lease or rental charges agreed upon in the
written instrument, with intent to wrongfully deprive the lessor of the agreed-upon charges.

For the purposes of items (iii) and (iv), the value of the property must be at least $100.

Evidence that a lessee used a false, fictitious, or not current name, address, or place of
employment in obtaining the property or fails or refuses to return the property or pay the
rental contract charges to lessor within five days after written demand for the return has
been served personally in the manner provided for service of process of a civil action or
sent by certified mail to the last known address of the lessee, whichever shall occur later,
shall be evidence of intent to violate this clause. Service by certified mail shall be deemed
to be complete upon deposit in the United States mail of such demand, postpaid and addressed
to the person at the address for the person set forth in the lease or rental agreement, or, in
the absence of the address, to the person's last known place of residence; or

(10) alters, removes, or obliterates numbers or symbols placed on movable property for
purpose of identification by the owner or person who has legal custody or right to possession
thereof with the intent to prevent identification, if the person who alters, removes, or
obliterates the numbers or symbols is not the owner and does not have the permission of
the owner to make the alteration, removal, or obliteration; or

(11) with the intent to prevent the identification of property involved, so as to deprive
the rightful owner of possession thereof, alters or removes any permanent serial number,
permanent distinguishing number or manufacturer's identification number on personal
property or possesses, sells or buys any personal property knowing or having reason to
know that the permanent serial number, permanent distinguishing number or manufacturer's
identification number has been removed or altered; or

(12) intentionally deprives another of a lawful charge for cable television service by:

(i) making or using or attempting to make or use an unauthorized external connection
outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or
other connection; or by

(ii) attaching any unauthorized device to any cable, wire, microwave, or other component
of a licensed cable communications system as defined in chapter 238. Nothing herein shall
be construed to prohibit the electronic video rerecording of program material transmitted
on the cable communications system by a subscriber for fair use as defined by Public Law
94-553, section 107; or

(13) except as provided in clauses (12) and (14), obtains the services of another with
the intention of receiving those services without making the agreed or reasonably expected
payment of money or other consideration; or

(14) intentionally deprives another of a lawful charge for telecommunications service
by:

(i) making, using, or attempting to make or use an unauthorized connection whether
physical, electrical, by wire, microwave, radio, or other means to a component of a local
telecommunication system as provided in chapter 237; or

(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other
component of a local telecommunication system as provided in chapter 237.

The existence of an unauthorized connection is prima facie evidence that the occupier
of the premises:

(A) made or was aware of the connection; and

(B) was aware that the connection was unauthorized;

(15) with intent to defraud, diverts corporate property other than in accordance with
general business purposes or for purposes other than those specified in the corporation's
articles of incorporation; or

(16) with intent to defraud, authorizes or causes a corporation to make a distribution in
violation of section 302A.551, or any other state law in conformity with it; or

(17) takes or drives a motor vehicle without the consent of the owner or an authorized
agent of the owner, knowing or having reason to know that the owner or an authorized agent
of the owner did not give consent; or

(18) intentionally, and without claim of right, takes motor fuel from a retailer without
the retailer's consent and with intent to deprive the retailer permanently of possession of
the fuel by driving a motor vehicle from the premises of the retailer without having paid
for the fuel dispensed into the vehicle deleted text begin . deleted text end new text begin ; or
new text end

new text begin (19) intentionally engages in or authorizes a prohibited practice of wage theft as described
in section 181.03, subdivision 1.
new text end

(b) Proof that the driver of a motor vehicle into which motor fuel was dispensed drove
the vehicle from the premises of the retailer without having paid for the fuel permits the
factfinder to infer that the driver acted intentionally and without claim of right, and that the
driver intended to deprive the retailer permanently of possession of the fuel. This paragraph
does not apply if: (1) payment has been made to the retailer within 30 days of the receipt
of notice of nonpayment under section 604.15; or (2) a written notice as described in section
604.15, subdivision 4, disputing the retailer's claim, has been sent. This paragraph does not
apply to the owner of a motor vehicle if the vehicle or the vehicle's license plate has been
reported stolen before the theft of the fuel.

Sec. 27.

Minnesota Statutes 2018, section 609.52, subdivision 3, is amended to read:

Subd. 3.

Sentence.

Whoever commits theft may be sentenced as follows:

(1) to imprisonment for not more than 20 years or to payment of a fine of not more than
$100,000, or both, if the property is a firearm, or the value of the property or services stolen
is more than $35,000 and the conviction is for a violation of subdivision 2, clause (3), (4),
(15), deleted text begin or deleted text end (16), new text begin or 19, new text end or section 609.2335, subdivision 1, clause (1) or (2), item (i); or

(2) to imprisonment for not more than ten years or to payment of a fine of not more than
$20,000, or both, if the value of the property or services stolen exceeds $5,000, or if the
property stolen was an article representing a trade secret, an explosive or incendiary device,
or a controlled substance listed in Schedule I or II pursuant to section 152.02 with the
exception of marijuana; or

(3) to imprisonment for not more than five years or to payment of a fine of not more
than $10,000, or both, if any of the following circumstances exist:

(a) the value of the property or services stolen is more than $1,000 but not more than
$5,000; or

(b) the property stolen was a controlled substance listed in Schedule III, IV, or V pursuant
to section 152.02; or

(c) the value of the property or services stolen is more than $500 but not more than
$1,000 and the person has been convicted within the preceding five years for an offense
under this section, section 256.98; 268.182; 609.24; 609.245; 609.53; 609.582, subdivision
1, 2, or 3; 609.625; 609.63; 609.631; or 609.821, or a statute from another state, the United
States, or a foreign jurisdiction, in conformity with any of those sections, and the person
received a felony or gross misdemeanor sentence for the offense, or a sentence that was
stayed under section 609.135 if the offense to which a plea was entered would allow
imposition of a felony or gross misdemeanor sentence; or

(d) the value of the property or services stolen is not more than $1,000, and any of the
following circumstances exist:

(i) the property is taken from the person of another or from a corpse, or grave or coffin
containing a corpse; or

(ii) the property is a record of a court or officer, or a writing, instrument or record kept,
filed or deposited according to law with or in the keeping of any public officer or office; or

(iii) the property is taken from a burning, abandoned, or vacant building or upon its
removal therefrom, or from an area of destruction caused by civil disaster, riot, bombing,
or the proximity of battle; or

(iv) the property consists of public funds belonging to the state or to any political
subdivision or agency thereof; or

(v) the property stolen is a motor vehicle; or

(4) to imprisonment for not more than one year or to payment of a fine of not more than
$3,000, or both, if the value of the property or services stolen is more than $500 but not
more than $1,000; or

(5) in all other cases where the value of the property or services stolen is $500 or less,
to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000,
or both, provided, however, in any prosecution under subdivision 2, clauses (1), (2), (3),
(4), and (13), the value of the money or property or services received by the defendant in
violation of any one or more of the above provisions within any six-month period may be
aggregated and the defendant charged accordingly in applying the provisions of this
subdivision; provided that when two or more offenses are committed by the same person
in two or more counties, the accused may be prosecuted in any county in which one of the
offenses was committed for all of the offenses aggregated under this paragraph.

Sec. 28. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 177.27, subdivisions 1 and 3, new text end new text begin are repealed.
new text end

ARTICLE 11

HOUSING FINANCE AGENCY

Section 1.

Minnesota Statutes 2018, section 327C.095, subdivision 1, is amended to read:

Subdivision 1.

Conversion of use; minimum notice.

new text begin (a) new text end At least deleted text begin nine deleted text end new text begin 12 new text end months before
the conversion of all or a portion of a manufactured home park to another use, or before
closure of a manufactured home park or cessation of use of the land as a manufactured home
park, the park owner must prepare a closure statement and provide a copy to the
commissioners of health and the housing finance agency, the local planning agency, and a
resident of each manufactured home where the residential use is being converted. The
closure statement must include the following language in a font no smaller than 14 point:
"YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA
MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE
MINNESOTA HOUSING FINANCE AGENCY." A resident may not be required to vacate
until deleted text begin 60 deleted text end new text begin 90 new text end days after the conclusion of the public hearing required under subdivision 4. If
a lot is available in another section of the park that will continue to be operated as a park,
the park owner must allow the resident to relocate the home to that lot unless the home,
because of its size or local ordinance, is not compatible with that lot.

new text begin (b) Closure statements issued more than 24 months prior to the park closure must contain
a closure date. If the closure does not take place within 24 months and the original statement
does not contain a closure date, the statement must be reissued to the commissioners of
health and the Housing Finance Agency, the local planning agency, and a resident of each
manufactured home where the residential use is being converted.
new text end

Sec. 2.

Minnesota Statutes 2018, section 327C.095, subdivision 2, is amended to read:

Subd. 2.

Notice of hearing; proposed change in land use.

If the planned conversion
or cessation of operation requires a variance or zoning change, the deleted text begin municipality deleted text end new text begin local
government authority new text end must mail a notice at least ten days before the hearing to a resident
of each manufactured home in the park stating the time, place, and purpose of the public
hearing. The park owner shall provide the deleted text begin municipality deleted text end new text begin local government authority new text end with a
list of the names and addresses of at least one resident of each manufactured home in the
park at the time application is made for a variance or zoning change.

Sec. 3.

Minnesota Statutes 2018, section 327C.095, subdivision 3, is amended to read:

Subd. 3.

Closure statement.

Upon receipt of the closure statement from the park owner,
the local planning agency shall submit the closure statement to the governing body of the
deleted text begin municipality deleted text end new text begin local government authority new text end and request the governing body to schedule a public
hearing. The deleted text begin municipality deleted text end new text begin local government authority new text end must mail a notice at least ten days
before the hearing to a resident of each manufactured home in the park stating the time,
place, and purpose of the public hearing. The park owner shall provide the deleted text begin municipality deleted text end new text begin
local government authority new text end with a list of the names and addresses of at least one resident
of each manufactured home in the park at the time the closure statement is submitted to the
local planning agency.

Sec. 4.

Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:

Subd. 4.

Public hearing; relocation compensation; neutral third party.

new text begin (a) new text end The
governing body of the affected deleted text begin municipality deleted text end new text begin local government authority new text end shall hold a public
hearing to review the closure statement and any impact that the park closing may have on
the displaced residents and the park owner. At the time of, and in the notice for, the public
hearing, displaced residents must be informed that they may be eligible for payments from
the Minnesota manufactured home relocation trust fund under section 462A.35 as
compensation for reasonable relocation costs under subdivision 13, paragraphs (a) and (e).

new text begin (b) new text end The governing body of the deleted text begin municipality deleted text end new text begin local government authority new text end may also require
that other parties, including the deleted text begin municipality deleted text end new text begin local government authority new text end , but excluding the
park owner or its purchaser, involved in the park closing provide additional compensation
to residents to mitigate the adverse financial impact of the park closing upon the residents.

new text begin (c) new text end At the public hearing, the deleted text begin municipality deleted text end new text begin local government authority new text end shall appoint a
neutral third party, to be agreed upon by both the manufactured home park owner and
manufactured home owners, whose hourly cost must be reasonable and paid from the
Minnesota manufactured home relocation trust fund. The neutral third party shall act as a
paymaster and arbitrator, with decision-making authority to resolve any questions or disputes
regarding any contributions or disbursements to and from the Minnesota manufactured
home relocation trust fund by either the manufactured home park owner or the manufactured
home owners. If the parties cannot agree on a neutral third party, the deleted text begin municipality will deleted text end new text begin local
government authority shall new text end make a determination.

new text begin (d) At the public hearing, the governing body of the local government authority shall
make a determination if any ordinance was in effect on May 26, 2007, that would provide
compensation to displaced residents and provide this information to the third party neutral
to determine the applicable amount of compensation under subdivision 13, paragraph (f).
new text end

Sec. 5.

Minnesota Statutes 2018, section 327C.095, subdivision 12, is amended to read:

Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the commissioner of management and budget for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.35, the lesser amount of the
actual costs of moving or purchasing the manufactured home approved by the neutral third
party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph
(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
multisection manufactured home, for which a manufactured home owner has made
application for payment of relocation costs under subdivision 13, paragraph (c). The
manufactured home park owner shall make payments required under this section to the
Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than deleted text begin $1,000,000 deleted text end new text begin $3,000,000 new text end as of June 30 of each year, the commissioner of
management and budget shall assess each manufactured home park owner by mail the total
amount of $15 for each licensed lot in their park, payable on or before September 15 of that
year. The commissioner of management and budget shall deposit any payments in the
Minnesota manufactured home relocation trust fund. On or before July 15 of each year, the
commissioner of management and budget shall prepare and distribute to park owners a letter
explaining whether funds are being collected for that year, information about the collection,
an invoice for all licensed lots, and a sample form for the park owners to collect information
on which park residents have been accounted for. If assessed under this paragraph, the park
owner may recoup the cost of the $15 assessment as a lump sum or as a monthly fee of no
more than $1.25 collected from park residents together with monthly lot rent as provided
in section 327C.03, subdivision 6. Park owners may adjust payment for lots in their park
that are vacant or otherwise not eligible for contribution to the trust fund under section
327C.095, subdivision 12, paragraph (b), and deduct from the assessment accordingly.

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 6.

Minnesota Statutes 2018, section 327C.095, subdivision 13, is amended to read:

Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a deleted text begin 25-mile deleted text end new text begin 50-mile new text end radius of the park that is
being closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection
manufactured home. The actual relocation costs must include the reasonable cost of taking
down, moving, and setting up the manufactured home, including equipment rental, utility
connection and disconnection charges, minor repairs, modifications necessary for
transportation of the home, necessary moving permits and insurance, moving costs for any
appurtenances, which meet applicable local, state, and federal building and construction
codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the Minnesota Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current deleted text begin and that
the annual $15 payments to the Minnesota manufactured home relocation trust fund have
been paid when due deleted text end ; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d) If the neutral third party has acted reasonably and does not approve or deny payment
within 45 days after receipt of the information set forth in paragraph (c), the payment is
deemed approved. Upon approval and request by the neutral third party, the Minnesota
Housing Finance Agency shall issue two checks in equal amount for 50 percent of the
contract price payable to the mover and towing contractor for relocating the manufactured
home in the amount of the actual relocation cost, plus a check to the home owner for
additional certified costs associated with third-party vendors, that were necessary in relocating
the manufactured home. The moving or towing contractor shall receive 50 percent upon
execution of the contract and 50 percent upon completion of the relocation and approval
by the manufactured home owner. The moving or towing contractor may not apply the funds
to any other purpose other than relocation of the manufactured home as provided in the
contract. A copy of the approval must be forwarded by the neutral third party to the park
owner with an invoice for payment of the amount specified in subdivision 12, paragraph
(a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the commissioner of management and budget in the
amount established in subdivision 12, paragraph (a), less any documented costs submitted
to the neutral third party, required for demolition and removal of the home, and any debris
or refuse left on the lot, not to exceed $1,000. The manufactured home owner must also
provide a copy of the certificate of title endorsed by the owner of record, and certify to the
neutral third party, with a copy to the park owner, that none of the exceptions to receipt of
compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the
manufactured home owner, and that the home owner will vacate the home within 60 days
after receipt of payment or the date of park closure, whichever is earlier, provided that the
monthly lot rent is kept current.

(f) deleted text begin The Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007. deleted text end Notwithstanding paragraph (a), the manufactured home owner's
compensation for relocation costs from the fund under section 462A.35, is the greater of
the amount provided under this subdivision, or the amount under the local ordinance in
effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this
paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

(h) The agency shall report to the chairs of the senate Finance Committee and house of
representatives Ways and Means Committee by January 15 of each year on the Minnesota
manufactured home relocation trust fund, including the account balance, payments to
claimants, the amount of any advances to the fund, the amount of any insufficiencies
encountered during the previous calendar year, and any administrative charges or expenses
deducted from the trust fund balance. If sufficient funds become available, the Minnesota
Housing Finance Agency shall pay the manufactured home owner whose unpaid claim is
the earliest by time and date of approval.

ARTICLE 12

SOLAR ON SCHOOLS

Section 1.

new text begin [216C.375] SOLAR ON SCHOOLS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Developer" means an entity that installs a solar energy system on a building owned
by a school district that has been awarded a grant under this section.
new text end

new text begin (c) "Energy storage system" means a commercially available technology capable of:
new text end

new text begin (1) absorbing and storing electrical energy; and
new text end

new text begin (2) dispatching stored electrical energy at a later time.
new text end

new text begin (d) "In proximity of" means within an aggregation of school meters.
new text end

new text begin (e) "Investor" means an entity that finances the design, purchase, installation, operation,
and maintenance of a solar energy system installed at a school building in a school district
that received a grant under this section.
new text end

new text begin (f) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
new text end

new text begin (g) "School district" means an independent or special school district.
new text end

new text begin (h) "Solar energy system" means photovoltaic or solar thermal devices installed alone
or in conjunction with an energy storage system.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar on schools program is established in the
Department of Commerce. The purpose of the program is to provide grants and lease
agreements to stimulate the installation of solar energy systems in school districts throughout
the state by reducing the cost to purchase and install a solar energy system.
new text end

new text begin Subd. 3. new text end

new text begin Expenditures. new text end

new text begin Expenditures can be made for:
new text end

new text begin (1) grant awards made under this section; and
new text end

new text begin (2) administrative costs incurred by the department to administer this section up to
$500,000 per year that the program is in operation.
new text end

new text begin Subd. 4. new text end

new text begin Eligible system. new text end

new text begin A grant may be awarded under this section to an eligible school
district only if the solar energy system that is the subject of the grant:
new text end

new text begin (1) is placed on or adjacent to the school district building using the electricity generated;
and
new text end

new text begin (2) has a capacity that does not exceed the lesser of:
new text end

new text begin (i) for a school building receiving retail electric service from a public utility subject to
section 116C.779, subdivision 1, one megawatt or 120 percent of the estimated electric load
of the school district building at which the solar energy system is proposed to be installed;
or
new text end

new text begin (ii) for a school building receiving retail electric service from a public utility not subject
to section 116C.779, subdivision 1, 40 kilowatts or 120 percent of the estimated electric
load of the school district building where the solar energy system is proposed to be installed.
new text end

new text begin Subd. 5. new text end

new text begin Lease agreement; design. new text end

new text begin The commissioner must design a lease agreement
that must be used by an applicant seeking a grant under this section. The lease agreement
must:
new text end

new text begin (1) make the commissioner a party to the lease agreement;
new text end

new text begin (2) contain a formula to calculate the future fair market value of the solar energy system;
new text end

new text begin (3) contain a formula to calculate the future value of payments made by the school district
to the investor under the lease agreement described in clause (6);
new text end

new text begin (4) specify an escalator for the allowable rate of increase for the lease payments;
new text end

new text begin (5) not exceed a term of 20 years;
new text end

new text begin (6) provide the school district an option to purchase the solar array from the investor at
the end of the lease contract term for a price based on a fair market value calculation, as
determined by the commissioner;
new text end

new text begin (7) include basic requirements regarding the removal and recycling of the system; and
new text end

new text begin (8) specify the investor must operate and maintain the leased system.
new text end

new text begin Subd. 6. new text end

new text begin Adjustment. new text end

new text begin (a) Every five years after entering into the lease agreement, and
90 days prior to the proposed termination of the lease agreement, the school district and the
investor must reexamine the projected values based on the formulas in the lease agreement
described in subdivision 6, clauses (2) to (4).
new text end

new text begin (b) The parties must notify the commissioner of any significant adjustments that should
be made to the forecasts of future values in subdivision 6, clauses (2) to (4), based on
experience under the lease agreement or for other reasons.
new text end

new text begin (c) The commissioner must review the adjustments requested by the parties, and must
approve the adjustments if the commissioner determines the adjustments are:
new text end

new text begin (1) reasonable;
new text end

new text begin (2) unforeseeable to the parties at the time the lease agreement was executed or at the
previous reexamination of the projected values; and
new text end

new text begin (3) in the public interest.
new text end

new text begin (d) The commissioner must adjust the grant amount reserved in the reserve account for
the solar energy system consistent with adjustments approved under this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Program requirements. new text end

new text begin (a) The commissioner must develop a master lease
program.
new text end

new text begin (b) Within the master lease program, the commissioner must develop a standard request
for proposals to solicit services.
new text end

new text begin (c) The commissioner must develop a quantitative weighting system for the information
provided in the application in order to rank applications. In the weighting system, the
commissioner must consider (1) under-resourced schools, as determined by 50 percent or
more of the student body qualifying for free or reduced-price lunches, and (2) geographic
dispersion of school districts applying.
new text end

new text begin (d) The commissioner must develop administrative procedures to govern the application
and grant award process.
new text end

new text begin (e) The program must include a prepaid lease option to buy out the lease prior to the end
of the lease.
new text end

new text begin (f) The developer must maintain the system through a minimum level of production, as
determined by the commissioner and communicated in program documents, through the
term of the lease.
new text end

new text begin (g) The program must require the developer to operate and maintain the solar energy
system through the term of the lease.
new text end

new text begin Subd. 8. new text end

new text begin Application process. new text end

new text begin (a) A developer may apply for a grant under this section
on behalf of a school district.
new text end

new text begin (b) An application submitted to the commissioner under this subdivision must include,
at a minimum, the following information:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

new text begin (2) the current energy demand of the school building where the solar energy generating
system is proposed to be installed;
new text end

new text begin (3) the size of any energy storage system that is proposed to be installed as part of a
solar energy system;
new text end

new text begin (4) the total cost to purchase and install the proposed solar energy system, including the
life-cycle cost;
new text end

new text begin (5) a copy of the proposed lease agreement between the school district and an investor;
new text end

new text begin (6) a plan detailing how the school intends to make the solar energy system serve as a
visible learning tool for students, teachers, and visitors to the school, including how the
solar energy system may be integrated into the school's curriculum;
new text end

new text begin (7) information that demonstrates the school district's need for financial assistance
available under this section;
new text end

new text begin (8) information that demonstrates the readiness of the school district to implement the
project, including but not limited to the availability of the land to install the solar energy
system on, and the level of the school district's engagement with the utility providing electric
service to the school building where the solar energy system is to be installed with respect
to issues relevant to the implementation of the project, including metering and other issues;
new text end

new text begin (9) the developer's willingness and ability to pay employees and contractors prevailing
wage; and
new text end

new text begin (10) any other information deemed relevant by the commissioner.
new text end

new text begin (c) As a condition of a site permit for construction, the commission may require the
recipient, including their construction contractors and subcontractors, to pay the prevailing
wage rate as defined in section 177.42.
new text end

new text begin Subd. 9. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, prior to a grant
award under this section the school district must provide the commissioner information
regarding energy conservation measures implemented at the school building where the solar
energy system is to be installed. The commissioner may make recommendations to the
school district regarding cost-effective conservation measures it may implement and may
provide technical assistance and direct the school district to available financial assistance
programs.
new text end

new text begin Subd. 10. new text end

new text begin Commissioner duties. new text end

new text begin The commissioner must:
new text end

new text begin (1) provide technical assistance to school districts to develop and execute projects; and
new text end

new text begin (2) convene an advisory committee composed of representatives of solar energy
developers, school districts, and investors to develop procedures and policies that result in
the successful operation of the program established under this section.
new text end

new text begin Subd. 11. new text end

new text begin Grant payments. new text end

new text begin The commissioner must use grant money to buy down lease
payments for the school district to (1) decrease the school district's lease period, and (2)
enable the school district to obtain full ownership rights over the solar energy system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

ARTICLE 13

UNCLAIMED PROPERTY; GENERAL

Section 1.

new text begin [345A.101] DEFINITIONS.
new text end

new text begin (1) For the purposes of this chapter, the terms defined in this section have the meanings
given them.
new text end

new text begin (2) "Administrator" means the commissioner of commerce.
new text end

new text begin (3) "Administrator's agent" means a person with which the administrator contracts to
conduct an examination under this chapter on behalf of the administrator. The term includes
an independent contractor of the person and each individual participating in the examination
on behalf of the person or contractor.
new text end

new text begin (4) "Affiliated group of merchants" means two or more affiliated merchants or other
persons that are related by common ownership or common corporate control and that share
the same name, mark, or logo. Affiliated group of merchants also applies to two or more
merchants or other persons that agree among themselves, by contract or otherwise, to redeem
cards, codes, or other devices bearing the same name, mark, or logo, other than the mark,
logo, or brand of a payment network, for the purchase of goods or services solely at such
merchants or persons. However, merchants or other persons are not considered affiliated
merely because they agree to accept a card that bears the mark, logo, or brand of a payment
network.
new text end

new text begin (5) "Apparent owner" means a person whose name appears on the records of a holder
as the owner of property held, issued, or owing by the holder.
new text end

new text begin (6) "Business association" means a corporation, joint stock company, investment
company, other than an investment company registered under the Investment Company Act
of 1940, as amended, United States Code, title 15, sections 80a-1 to 80a-64, partnership,
unincorporated association, joint venture, limited liability company, business trust, trust
company, land bank, safe deposit company, safekeeping depository, financial organization,
insurance company, federally chartered entity, utility, sole proprietorship, or other business
entity, whether or not for profit.
new text end

new text begin (7) "District court" means Ramsey County District Court.
new text end

new text begin (8) "Domicile" means:
new text end

new text begin (A) for a corporation, the state of its incorporation;
new text end

new text begin (B) for a business association whose formation requires a filing with a state, other than
a corporation, the state of its filing;
new text end

new text begin (C) for a federally chartered entity or an investment company registered under the
Investment Company Act of 1940, as amended, United States Code, title 15, sections 80a-1
to 80a-64, the state of its home office; and
new text end

new text begin (D) for any other holder, the state of its principal place of business.
new text end

new text begin (9) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
new text end

new text begin (10) "E-mail" means a communication by electronic means which is automatically
retained and stored and may be readily accessed or retrieved.
new text end

new text begin (11) "Financial organization" means a savings and loan association, building and loan
association, savings bank, industrial bank, bank, banking organization, or credit union.
new text end

new text begin (12) "Game-related digital content" means digital content that exists only in an electronic
game or electronic-game platform. The term:
new text end

new text begin (A) includes:
new text end

new text begin i. game-play currency such as a virtual wallet, even if denominated in United States
currency; and
new text end

new text begin ii. the following if for use or redemption only within the game or platform or another
electronic game or electronic-game platform:
new text end

new text begin 1. points sometimes referred to as gems, tokens, gold, and similar names; and
new text end

new text begin 2. digital codes; and
new text end

new text begin (B) does not include an item that the issuer:
new text end

new text begin i. permits to be redeemed for use outside a game or platform for:
new text end

new text begin ii. money; or
new text end

new text begin iii. goods or services that have more than minimal value; or
new text end

new text begin iv. otherwise monetizes for use outside a game or platform.
new text end

new text begin (13) "Gift card" means:
new text end

new text begin (A) a stored-value card:
new text end

new text begin i. issued on a prepaid basis for a specified amount;
new text end

new text begin ii. the value of which does not expire;
new text end

new text begin iii. that is not subject to a dormancy, inactivity, or service fee;
new text end

new text begin iv. that may be decreased in value only by redemption for merchandise, goods, or services
upon presentation at a single merchant or an affiliated group of merchants;
new text end

new text begin v. that, unless required by law, may not be redeemed for or converted into money or
otherwise monetized by the issuer; and
new text end

new text begin (B) includes a prepaid commercial mobile radio service, as defined in Code of Federal
Regulations, title 47, section 20.3, as amended.
new text end

new text begin (14) "Holder" means a person obligated to hold for the account of, or to deliver or pay
to, the owner, property subject to this chapter.
new text end

new text begin (15) "Insurance company" means an association, corporation, or fraternal or
mutual-benefit organization, whether or not for profit, engaged in the business of providing
life endowments, annuities, or insurance, including accident, burial, casualty, credit-life,
contract-performance, dental, disability, fidelity, fire, health, hospitalization, illness, life,
malpractice, marine, mortgage, surety, wage-protection, and worker-compensation insurance.
new text end

new text begin (16) "Loyalty card" means a record given without direct monetary consideration under
an award, reward, benefit, loyalty, incentive, rebate, or promotional program which may
be used or redeemed only to obtain goods or services or a discount on goods or services.
Loyalty card does not include a record that may be redeemed for money or otherwise
monetized by the issuer.
new text end

new text begin (17) "Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon,
cement material, sand and gravel, road material, building stone, chemical raw material,
gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other
geothermal resources, and any other substance defined as a mineral by law of this state other
than this chapter.
new text end

new text begin (18) "Mineral proceeds" means an amount payable for extraction, production, or sale of
minerals, or, on the abandonment of the amount, an amount that becomes payable after
abandonment. Mineral proceeds includes an amount payable:
new text end

new text begin (A) for the acquisition and retention of a mineral lease, including a bonus, royalty,
compensatory royalty, shut-in royalty, minimum royalty, and delay rental;
new text end

new text begin (B) for the extraction, production, or sale of minerals, including a net revenue interest,
royalty, overriding royalty, extraction payment, and production payment; and
new text end

new text begin (C) under an agreement or option, including a joint-operating agreement, unit agreement,
pooling agreement, and farm-out agreement.
new text end

new text begin (19) "Money order" means a payment order for a specified amount of money. Money
order includes an express money order and a personal money order on which the remitter
is the purchaser.
new text end

new text begin (20) "Municipal bond" means a bond or evidence of indebtedness issued by a municipality
or other political subdivision of a state.
new text end

new text begin (21) "Net card value" means the original purchase price or original issued value of a
stored-value card, plus amounts added to the original price or value, minus amounts used
and any service charge, fee, or dormancy charge permitted by law.
new text end

new text begin (22) "Nonfreely transferable security" means a security that cannot be delivered to the
administrator by the Depository Trust Clearing Corporation or similar custodian of securities
providing post-trade clearing and settlement services to financial markets or cannot be
delivered because there is no agent to effect transfer. Nonfreely transferable security includes
a worthless security.
new text end

new text begin (23) "Owner" means a person that has a legal, beneficial, or equitable interest in property
subject to this chapter or the person's legal representative when acting on behalf of the
owner. Owner includes:
new text end

new text begin (A) a depositor, for a deposit;
new text end

new text begin (B) a beneficiary, for a trust other than a deposit in trust;
new text end

new text begin (C) a creditor, claimant, or payee, for other property; and
new text end

new text begin (D) the lawful bearer of a record that may be used to obtain money, a reward, or a thing
of value.
new text end

new text begin (24) "Payroll card" means a record that evidences a payroll card account as defined in
Regulation E, Code of Federal Regulations, title 12, part 1005, as amended.
new text end

new text begin (25) "Person" means an individual, estate, business association, public corporation,
government or governmental subdivision, agency, instrumentality, or other legal entity
whether or not for profit.
new text end

new text begin (26) "Property" means tangible property described in section 345A.205 or a fixed and
certain interest in intangible property held, issued, or owed in the course of a holder's business
or by a government, governmental subdivision, agency, or instrumentality. Property:
new text end

new text begin (A) includes all income from or increments to the property;
new text end

new text begin (B) includes property referred to as or evidenced by:
new text end

new text begin i. money, virtual currency, interest, dividend, check, draft, deposit, or payroll card;
new text end

new text begin ii. a credit balance, customer's overpayment, stored-value card, security deposit, refund,
credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to
provide a refund, mineral proceeds, or unidentified remittance;
new text end

new text begin iii. a security except for:
new text end

new text begin 1. a worthless security; or
new text end

new text begin 2. a security that is subject to a lien, legal hold, or restriction evidenced on the records
of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts
the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;
new text end

new text begin iv. a bond, debenture, note, or other evidence of indebtedness;
new text end

new text begin v. money deposited to redeem a security, make a distribution, or pay a dividend;
new text end

new text begin vi. an amount due and payable under an annuity contract or insurance policy; and
new text end

new text begin vii. an amount distributable from a trust or custodial fund established under a plan to
provide health, welfare, pension, vacation, severance, retirement, death, stock purchase,
profit-sharing, employee savings, supplemental unemployment insurance, or a similar
benefit; and
new text end

new text begin (C) does not include:
new text end

new text begin i. property held in a plan described in section 529A of the Internal Revenue Code, as
amended, United States Code, title 26, section 529A;
new text end

new text begin ii. game-related digital content;
new text end

new text begin iii. a loyalty card;
new text end

new text begin iv. a gift card; or
new text end

new text begin v. money held or owing by a public pension fund enumerated in section 356.20,
subdivision 2, or 356.30, subdivision 3; or covered by sections 69.77 or 69.771 to 69.776,
if the plan governing the public pension fund includes a provision governing the disposition
of unclaimed amounts of money.
new text end

new text begin (27) "Putative holder" means a person believed by the administrator to be a holder, until
the person pays or delivers to the administrator property subject to this chapter or the
administrator or a court makes a final determination that the person is or is not a holder.
new text end

new text begin (28) "Record" means information that is inscribed on a tangible medium or that is stored
in an electronic or other medium and is retrievable in perceivable form. "Records of the
holder" includes records maintained by a third party that has contracted with the holder.
new text end

new text begin (29) "Security" means:
new text end

new text begin (A) a security as defined in article 8 of the Uniform Commercial Code, section 336.8-102;
new text end

new text begin (B) a security entitlement as defined in article 8 of the Uniform Commercial Code,
section 336.8-102, including a customer security account held by a registered broker-dealer,
to the extent the financial assets held in the security account are not:
new text end

new text begin i. registered on the books of the issuer in the name of the person for which the
broker-dealer holds the assets;
new text end

new text begin ii. payable to the order of the person; or
new text end

new text begin iii. specifically endorsed to the person; or
new text end

new text begin (C) an equity interest in a business association not included in subparagraph (A) or (B).
new text end

new text begin (30) "State" means a state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States.
new text end

new text begin (31) "Stored-value card" means a record evidencing a promise made for consideration
by the seller or issuer of the record that goods, services, or money will be provided to the
owner of the record to the value or amount shown in the record. Stored-value card:
new text end

new text begin (A) includes:
new text end

new text begin i. a record that contains or consists of a microprocessor chip, magnetic strip, or other
means for the storage of information, which is prefunded and whose value or amount is
decreased on each use and increased by payment of additional consideration; and
new text end

new text begin ii. a payroll card; and
new text end

new text begin (B) does not include a loyalty card, gift card, or game-related digital content.
new text end

new text begin (32) "Utility" means a person that owns or operates for public use a plant, equipment,
real property, franchise, or license for the following public services:
new text end

new text begin (A) transmission of communications or information;
new text end

new text begin (B) production, storage, transmission, sale, delivery, or furnishing of electricity, water,
steam, or gas; or
new text end

new text begin (C) provision of sewage or septic services, or trash, garbage, or recycling disposal.
new text end

new text begin (33) "Virtual currency" means a digital representation of value used as a medium of
exchange, unit of account, or store of value, which does not have legal tender status
recognized by the United States. Virtual currency does not include:
new text end

new text begin (A) the software or protocols governing the transfer of the digital representation of value;
new text end

new text begin (B) game-related digital content; or
new text end

new text begin (C) a loyalty card or gift card.
new text end

new text begin (34) "Worthless security" means a security whose cost of liquidation and delivery to the
administrator would exceed the value of the security on the date a report is due under this
chapter.
new text end

Sec. 2.

new text begin [345A.102] INAPPLICABILITY TO FOREIGN TRANSACTION.
new text end

new text begin This chapter does not apply to property held, due, and owing in a foreign country if the
transaction out of which the property arose was a foreign transaction.
new text end

ARTICLE 14

UNCLAIMED PROPERTY; PRESUMPTION OF ABANDONMENT

Section 1.

new text begin [345A.201] WHEN PROPERTY PRESUMED ABANDONED.
new text end

new text begin Subject to section 345A.210, the following property is presumed abandoned if it is
unclaimed by the apparent owner during the period specified below:
new text end

new text begin (1) a traveler's check, 15 years after issuance;
new text end

new text begin (2) a money order, seven years after issuance;
new text end

new text begin (3) cooperative property, including any profit distribution or other sum held or owing
by a cooperative to a participating patron is presumed abandoned only if it has remained
unclaimed by the owner for more than seven years after it became payable or distributable;
new text end

new text begin (4) a state or municipal bond, bearer bond, or original-issue discount bond, three years
after the earliest of the date the bond matures or is called or the obligation to pay the principal
of the bond arises;
new text end

new text begin (5) a debt of a business association, three years after the obligation to pay arises;
new text end

new text begin (6) demand, savings, or time deposit, including a deposit that is automatically renewable,
three years after the later of the maturity or the date of the last indication of interest in the
property by the apparent owner, except a deposit that is automatically renewable is deemed
matured three years after its initial date of maturity unless the apparent owner consented to
renewal in a record on file with the holder at or about the time of the renewal;
new text end

new text begin (7) money or a credit owed to a customer as a result of a retail business transaction, other
than in-store credit for returned merchandise, three years after the obligation arose;
new text end

new text begin (8) an amount owed by an insurance company on a life or endowment insurance policy
or an annuity contract that has matured or terminated, three years after the obligation to pay
arose under the terms of the policy or contract or, if a policy or contract for which an amount
is owed on proof of death has not matured by proof of the death of the insured or annuitant,
as follows:
new text end

new text begin (A) with respect to an amount owed on a life or endowment insurance policy, the earlier
of:
new text end

new text begin i. three years after the death of the insured; or
new text end

new text begin ii. two years after the insured has attained, or would have attained if living, the limiting
age under the mortality table in which the reserve for the policy is based; and
new text end

new text begin (B) with respect to an amount owed on an annuity contract, three years after the date of
the death of the annuitant;
new text end

new text begin (9) funds on deposit or held in trust for the prepayment of funeral or other funeral-related
expenses, the earliest of:
new text end

new text begin (A) two years after the date of death of the beneficiary;
new text end

new text begin (B) one year after the date the beneficiary has attained, or would have attained if living,
the age of 105 where the holder does not know whether the beneficiary is deceased; or
new text end

new text begin (C) 30 years after the contract for prepayment was executed;
new text end

new text begin (10) property distributable by a business association in the course of dissolution, one
year after the property becomes distributable;
new text end

new text begin (11) property held by a court, including property received as proceeds of a class action,
three years after the property becomes distributable;
new text end

new text begin (12) property held by a government or governmental subdivision, agency, or
instrumentality, including municipal bond interest and unredeemed principal under the
administration of a paying agent or indenture trustee, one year after the property becomes
distributable;
new text end

new text begin (13) wages, commissions, bonuses, or reimbursements to which an employee is entitled,
or other compensation for personal services, including amounts held on a payroll card, one
year after the amount becomes payable;
new text end

new text begin (14) a deposit or refund owed to a subscriber by a utility, one year after the deposit or
refund becomes payable; and
new text end

new text begin (15) property not specified in this section or sections 345A.202 to 345A.208, the earlier
of three years after the owner first has a right to demand the property or the obligation to
pay or distribute the property arises.
new text end

new text begin Notwithstanding any provision in this section to the contrary, and subject to section
345A.210, a deceased owner cannot indicate interest in the owner's property. If the owner
is deceased and the abandonment period for the owner's property specified in this section
is greater than two years, then the property, excluding any amounts owed by an insurance
company on a life or endowment insurance policy or an annuity contract that has matured
or terminated, shall instead be presumed abandoned two years from the date of the owner's
last indication of interest in the property.
new text end

Sec. 2.

new text begin [345A.202] WHEN TAX-DEFERRED RETIREMENT ACCOUNT
PRESUMED ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, property held in a pension account or retirement account
that qualifies for tax deferral under the income tax laws of the United States is presumed
abandoned if it is unclaimed by the apparent owner after the later of:
new text end

new text begin (1) three years after the following dates:
new text end

new text begin (A) except as in subparagraph (B), the date a communication sent by the holder by
first-class United States mail to the apparent owner is returned to the holder undelivered by
the United States Postal Service; or
new text end

new text begin (B) if such communication is re-sent within 30 days after the date the first communication
is returned undelivered, the date the second communication was returned undelivered by
the United States Postal Service; or
new text end

new text begin (2) the earlier of the following dates:
new text end

new text begin (A) three years after the date the apparent owner becomes 70.5 years of age, if
determinable by the holder; or
new text end

new text begin (B) one year after the date of mandatory distribution following death if the Internal
Revenue Code, as amended, United States Code, title 26, section 1, et seq., requires
distribution to avoid a tax penalty and the holder:
new text end

new text begin (i) receives confirmation of the death of the apparent owner in the ordinary course of
its business; or
new text end

new text begin (ii) confirms the death of the apparent owner under subsection (b).
new text end

new text begin (b) If a holder in the ordinary course of its business receives notice or an indication of
the death of an apparent owner and subsection (a)(2) applies, the holder shall attempt, not
later than 90 days after receipt of the notice or indication, to confirm whether the apparent
owner is deceased.
new text end

new text begin (c) If the holder does not send communications to the apparent owner of an account
described in subsection (a) by first-class United States mail, the holder shall attempt to
confirm the apparent owner's interest in the property by sending the apparent owner an
e-mail communication not later than two years after the apparent owner's last indication of
interest in the property; however, the holder promptly shall attempt to contact the apparent
owner by first-class United States mail if:
new text end

new text begin (1) the holder does not have information needed to send the apparent owner an e-mail
communication or the holder believes that the apparent owner's e-mail address in the holder's
records is not valid;
new text end

new text begin (2) the holder receives notification that the e-mail communication was not received; or
new text end

new text begin (3) the apparent owner does not respond to the e-mail communication not later than 30
days after the communication was sent.
new text end

new text begin (d) If first-class United States mail sent under subsection (c) is returned to the holder
undelivered by the United States Postal Service, the property is presumed abandoned three
years after the later of:
new text end

new text begin (1) except as in paragraph (2), the date a communication to contact the apparent owner
sent by first-class United States mail is returned to the holder undelivered;
new text end

new text begin (2) if such communication is sent later than 30 days after the date the first communication
is returned undelivered, the date the second communication was returned undelivered; or
new text end

new text begin (3) the date established by subsection (a)(2).
new text end

Sec. 3.

new text begin [345A.203] WHEN OTHER TAX-DEFERRED ACCOUNT PRESUMED
ABANDONED.
new text end

new text begin (a) Subject to section 345A.210 and except for property described in section 345A.202
and property held in a plan described in section 529A of the Internal Revenue Code, as
amended; United States Code, title 26, section 529A, property held in an account or plan,
including a health savings account, that qualifies for tax deferral under the income tax laws
of the United States is presumed abandoned if it is unclaimed by the apparent owner three
years after the earlier of:
new text end

new text begin (1) the date, if determinable by the holder, specified in the income tax laws and
regulations of the United States by which distribution of the property must begin to avoid
a tax penalty, with no distribution having been made; or
new text end

new text begin (2) 30 years after the date the account was opened.
new text end

new text begin (b) If the owner is deceased, property subject to this section is presumed abandoned two
years from the earliest of:
new text end

new text begin (1) the date of the distribution or attempted distribution of the property;
new text end

new text begin (2) the date the required distribution as stated in the plan or trust agreement governing
the plan; or
new text end

new text begin (3) the date, if determinable by the holder, specified in the income tax laws of the United
States by which distribution of the property must begin in order to avoid a tax penalty.
new text end

Sec. 4.

new text begin [345A.204] WHEN CUSTODIAL ACCOUNT FOR MINOR PRESUMED
ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, property held in an account established under a state's
Uniform Gifts to Minors Act or Uniform Transfers to Minors Act is presumed abandoned
if it is unclaimed by or on behalf of the minor on whose behalf the account was opened
three years after the later of:
new text end

new text begin (1) except as in paragraph (2), the date a communication sent by the holder by first-class
United States mail to the custodian of the minor on whose behalf the account was opened
is returned undelivered to the holder by the United States Postal Service;
new text end

new text begin (2) if the communication is re-sent later than 30 days after the date the first
communication is returned undelivered, the date the second communication was returned
undelivered; or
new text end

new text begin (3) the date on which the custodian is required to transfer the property to the minor or
the minor's estate in accordance with the Uniform Gifts to Minors Act or Uniform Transfers
to Minors Act of the state in which the account was opened.
new text end

new text begin (b) If the holder does not send communications to the custodian of the minor on whose
behalf an account described in subsection (a) was opened by first-class United States mail,
the holder shall attempt to confirm the custodian's interest in the property by sending the
custodian an e-mail communication not later than two years after the custodian's last
indication of interest in the property; however, the holder promptly shall attempt to contact
the custodian by first-class United States mail if:
new text end

new text begin (1) the holder does not have information needed to send the custodian an e-mail
communication or the holder believes that the custodian's e-mail address in the holder's
records is not valid;
new text end

new text begin (2) the holder receives notification that the e-mail communication was not received; or
new text end

new text begin (3) the custodian does not respond to the e-mail communication not later than 30 days
after the communication was sent.
new text end

new text begin (c) If first-class United States mail sent under subsection (b) is returned undelivered to
the holder by the United States Postal Service, the property is presumed abandoned three
years after the later of:
new text end

new text begin (1) the date a communication to contact the custodian by first-class United States mail
is returned to the holder undelivered by the United States Postal Service; or
new text end

new text begin (2) the date established by subsection (a)(3).
new text end

new text begin (d) When the property in the account described in subsection (a) is transferred to the
minor on whose behalf an account was opened or to the minor's estate, the property in the
account is no longer subject to this section.
new text end

Sec. 5.

new text begin [345A.205] WHEN CONTENTS OF SAFE DEPOSIT BOX PRESUMED
ABANDONED.
new text end

new text begin Tangible property held in a safe deposit box and proceeds from a sale of the property
by the holder permitted by law of this state other than this chapter are presumed abandoned
if the property remains unclaimed by the apparent owner five years after the earlier of the:
new text end

new text begin (1) expiration of the lease or rental period for the safe deposit box; or
new text end

new text begin (2) earliest date when the lessor of the safe deposit box is authorized by law of this state
other than this chapter to enter the safe deposit box and remove or dispose of the contents
without consent or authorization of the lessee.
new text end

Sec. 6.

new text begin [345A.206] WHEN STORED-VALUE CARD PRESUMED ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, the net card value of a stored-value card, other than a
payroll card or a gift card, is presumed abandoned on the latest of three years after:
new text end

new text begin (1) December 31 of the year in which the card is issued or additional funds are deposited
into it;
new text end

new text begin (2) the most recent indication of interest in the card by the apparent owner; or
new text end

new text begin (3) a verification or review of the balance by or on behalf of the apparent owner.
new text end

new text begin (b) The amount presumed abandoned in a stored-value card is the net card value at the
time it is presumed abandoned.
new text end

new text begin (c) If a holder has reported and remitted to the administrator the net card value on a
stored-value card presumed abandoned under this section and the stored-value card does
not have an expiration date, then the holder must honor the card on presentation indefinitely
and may then request reimbursement from the administrator under section 345A.605.
new text end

Sec. 7.

new text begin [345A.208] WHEN SECURITY PRESUMED ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, a security is presumed abandoned after the earlier of
the following:
new text end

new text begin (1) three years after the date a communication sent by the holder by first-class United
States mail to the apparent owner is returned to the holder undelivered by the United States
Postal Service or if such communication is re-sent no later than 30 days after the first
communication is returned, the date the second communication is returned undelivered to
the holder by the United States Postal Service; or
new text end

new text begin (2) five years after the date of the apparent owner's last indication of interest in the
security.
new text end

new text begin (b) If the holder does not send communications to the apparent owner of a security by
first-class United States mail, the holder shall attempt to confirm the apparent owner's
interest in the security by sending the apparent owner an e-mail communication not later
than two years after the apparent owner's last indication of interest in the security; however,
the holder promptly shall attempt to contact the apparent owner by first-class United States
mail if:
new text end

new text begin (1) the holder does not have information needed to send the apparent owner an e-mail
communication or the holder believes that the apparent owner's e-mail address in the holder's
records is not valid;
new text end

new text begin (2) the holder receives notification that the e-mail communication was not received; or
new text end

new text begin (3) the apparent owner does not respond to the e-mail communication not later than 30
days after the communication was sent.
new text end

new text begin (c) If first-class United States mail sent under subsection (b) is returned to the holder
undelivered by the United States Postal Service, the security is presumed abandoned in
accordance with subsection (a)(2).
new text end

new text begin (d) If a holder, in the ordinary course of business, receives notice or an indication of the
death of an apparent owner, the holder shall attempt, not later than 90 days after receipt of
the notice or indication, to confirm whether the apparent owner is deceased. Notwithstanding
the standards set forth in subsections (a), (b), and (c), if the holder either receives
confirmation of the death of the apparent owner in the ordinary course of business or confirms
the death of the apparent owner under this subsection, then the property shall be presumed
abandoned two years after the date of the owner's death.
new text end

Sec. 8.

new text begin [345A.209] WHEN RELATED PROPERTY PRESUMED ABANDONED.
new text end

new text begin At and after the time property is presumed abandoned under this chapter, any other
property right or interest accrued or accruing from the property and not previously presumed
abandoned is also presumed abandoned.
new text end

Sec. 9.

new text begin [345A.210] INDICATION OF APPARENT OWNER INTEREST IN
PROPERTY.
new text end

new text begin (a) The period after which property is presumed abandoned is measured from the later:
new text end

new text begin (1) the date the property is presumed abandoned under sections 345A.201 to 345A.211;
or
new text end

new text begin (2) the latest indication of interest by the apparent owner in the property.
new text end

new text begin (b) Under this chapter, an indication of an apparent owner's interest in property includes:
new text end

new text begin (1) a record communicated by the apparent owner to the holder or agent of the holder
concerning the property or the account in which the property is held;
new text end

new text begin (2) an oral communication by the apparent owner to the holder or agent of the holder
concerning the property or the account in which the property is held, if the holder or its
agent contemporaneously makes and preserves a record of the fact of the apparent owner's
communication;
new text end

new text begin (3) presentment of a check or other instrument of payment of a dividend, interest payment,
or other distribution, or evidence of receipt of a distribution made by electronic or similar
means, with respect to an account, underlying security, or interest in a business association.
new text end

new text begin (4) activity directed by an apparent owner in the account in which the property is held,
including accessing the account or information concerning the account, or a direction by
the apparent owner to increase, decrease, or otherwise change the amount or type of property
held in the account;
new text end

new text begin (5) a deposit into or withdrawal from an account at a financial organization, except for
an automatic debit or credit previously authorized by the apparent owner or an automatic
reinvestment of dividends or interest; and
new text end

new text begin (6) subject to subsection (e), payment of a premium on an insurance policy.
new text end

new text begin (c) An action by an agent or other representative of an apparent owner, other than the
holder acting as the apparent owner's agent, is presumed to be an action on behalf of the
apparent owner.
new text end

new text begin (d) A communication with an apparent owner by a person other than the holder or the
holder's representative is not an indication of interest in the property by the apparent owner
unless a record of the communication evidences the apparent owner's knowledge of a right
to the property.
new text end

new text begin (e) If the insured dies or the insured or beneficiary of an insurance policy otherwise
becomes entitled to the proceeds before depletion of the cash surrender value of the policy
by operation of an automatic premium loan provision or other nonforfeiture provision
contained in the policy, the operation does not prevent the policy from maturing or
terminating.
new text end

new text begin (f) If the apparent owner has other property with the holder to which section 345A.201,
paragraph (6), applies, the activity directed by the apparent owner toward any other accounts,
including but not limited to loan accounts, at the financial organization holding an inactive
account of the apparent owner shall be an indication of interest in all such accounts if:
new text end

new text begin (1) the apparent owner engages in one or more of the following activities:
new text end

new text begin (A) the apparent owner undertakes one or more of the actions described in subsection
(b) regarding an account that appears on a consolidated statement with the inactive account;
new text end

new text begin (B) the apparent owner increases or decreases the amount of funds in any other account
the apparent owner has with the financial organization; or
new text end

new text begin (C) the apparent owner engages in any other relationship with the financial organization,
including payment of any amounts due on a loan; and
new text end

new text begin (2) the mailing address for the apparent owner in the financial organization's records is
the same for both the inactive account and the active account.
new text end

Sec. 10.

new text begin [345A.211] KNOWLEDGE OF DEATH OF INSURED OR ANNUITANT.
new text end

new text begin (a) In this section, "death master file" ("DMF") means the United States Social Security
Administration Death Master File or other database or service that is at least as
comprehensive as the United States Social Security Administration Death Master File for
determining that an individual reportedly has died.
new text end

new text begin (b) With respect to a life or endowment insurance policy or annuity contract for which
an amount is owed on proof of death, but which has not matured by proof of death of the
insured or annuitant, the company has knowledge of the death of an insured or annuitant
when:
new text end

new text begin (1) the company receives a death certificate or court order determining that the insured
or annuitant has died;
new text end

new text begin (2) the company receives notice of the death of the insured or annuitant from the
administrator or an unclaimed property administrator of another state, a beneficiary, a policy
owner, a relative of the insured, a representative under the Probate Act of 1975, or an
executor or other legal representative of the insured's or annuitant's estate and validates the
death of the insured or annuitant;
new text end

new text begin (3) the company conducts a comparison for any purpose between a DMF and the names
of some or all of the company's insureds or annuitants, finds a match that provides notice
that the insured or annuitant has died, and validates the death; or
new text end

new text begin (4) the administrator or the administrator's agent conducts a comparison for the purpose
of finding matches during an examination conducted under this chapter between a DMF
and the names of some or all of the company's insureds or annuitants, and finds a match
that provides notice that the insured or annuitant has died.
new text end

new text begin (c) A holder shall perform a comparison of its insureds' in-force policies, annuity
contracts, and retained asset accounts against a DMF on at least a semiannual basis by using
the full DMF once and thereafter using DMF updated files for future comparisons to identify
potential matches of its insureds.
new text end

new text begin (d) A death master file match under subsection (b)(3) or (4) occurs if the criteria for an
exact or partial match are satisfied.
new text end

new text begin (1) an exact match occurs when the Social Security number, first and last name, and
date of birth contained in the holder's records matches exactly to the data contained in the
DMF;
new text end

new text begin (2) a partial match occurs in any of the following circumstances:
new text end

new text begin (A) when the Social Security number contained in the data found in the holder's records
matches exactly or in accordance with the fuzzy match criteria listed below to the Social
Security number contained in the DMF, the first and last names match either exactly or in
accordance with the fuzzy match criteria listed below, and the date of birth matches exactly
or in accordance with the fuzzy match criteria listed below;
new text end

new text begin (B) when the holder's records do not include a Social Security number or where the
Social Security number is incomplete or otherwise invalid, and there is a first name, last
name, and date of birth combination in the holder's data that is a match against the data
contained in the DMF where the first and last names match either exactly or in accordance
with the fuzzy match criteria listed below and the date of birth matches exactly or in
accordance with the fuzzy match criteria listed below;
new text end

new text begin (C) if there is more than one potentially matched individual returned as a result of the
process described in paragraphs (A) and (B) above, the holder shall search the Social Security
numbers obtained from the DMF for the potential matched individuals against Accurint for
Insurance or an equivalent database. If a search of those databases shows that the DMF
Social Security number is listed at the address in the holder's records for the insured, a
partial match will be considered to have been made only for individuals with a matching
address;
new text end

new text begin (D) fuzzy match criteria includes the following:
new text end

new text begin (i) a first name fuzzy match includes one or more of the following: a nickname; an initial
instead of a full first name; accepted industry standard phonetic name-matching algorithm;
data entry mistakes with a maximum difference of one character with at least five characters
in length; a first and last name are provided and cannot be reliably distinguished from one
another; use of interchanged first name and middle name; a misused compound name; and
the use of a "Mrs." in conjunction with a spouse's name where the date of birth and Social
Security number match exactly and the last name matches exactly or in accordance with
the fuzzy match criteria listed herein;
new text end

new text begin (ii) a last name fuzzy match includes one or more of the following: Anglicized forms
of last names; compound last name; blank spaces in last name; accepted industry standard
phonetic name-matching algorithm; a first and last name are provided and cannot be reliably
distinguished from one another; use of apostrophe or other punctuation; data entry mistakes
with a maximum difference of one character for last name with at least eight characters in
length; and married female last name variations;
new text end

new text begin (iii) a date of birth fuzzy match includes one of the following: two dates with a maximum
of two digits in difference, but only one entry mistake per full date is allowable; transposition
of the month and date portion of the date of birth; if the holder's records do not contain a
complete date of birth, then a fuzzy match date of birth will be found to exist where the data
available in the holder's records does not conflict with the data contained in the DMF; if
the holder provided a first and last name match, either exactly or in accordance with the
fuzzy match criteria herein and the Social Security number matches exactly against the
DMF, the date of birth is a fuzzy match if the holder provided a date of birth that is within
two years of the DMF-listed date of birth;
new text end

new text begin (iv) a Social Security number fuzzy match includes one of the following: two Social
Security numbers with a maximum of two digits in difference, any number position; two
consecutive numbers are transposed; and the Social Security number is less than nine digits
in length, but at least seven digits, and is entirely embedded within the other Social Security
number;
new text end

new text begin (3) the DMF match does not constitute proof of death for the purpose of submission to
an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or
contract for an amount due under an insurance policy or annuity contract;
new text end

new text begin (4) the DMF match or validation of the insured's or annuitant's death does not alter the
requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim
to receive proceeds under the terms of the policy or contract;
new text end

new text begin (5) an insured or an annuitant is presumed dead if the date of the person's death is
indicated by the DMF match under either subsection (b)(3) or (4), unless the insurer has
competent and substantial evidence that the person is living, including but not limited to a
contact made by the insurer with the person or the person's legal representation.
new text end

new text begin (e) This chapter does not affect the determination of the extent to which an insurance
company before the effective date of this chapter had knowledge of the death of an insured
or annuitant or was required to conduct a DMF comparison to determine whether amounts
owed by the company on a life or endowment insurance policy or annuity contract were
presumed abandoned or unclaimed.
new text end

Sec. 11.

new text begin [345A.211] DEPOSIT ACCOUNT FOR PROCEEDS OF INSURANCE
POLICY OR ANNUITY CONTRACT.
new text end

new text begin If proceeds payable under a life or endowment insurance policy or annuity contract are
deposited into an account with check or draft-writing privileges for the beneficiary of the
policy or contract and, under a supplementary contract not involving annuity benefits other
than death benefits, the proceeds are retained by the insurance company or the financial
organization where the account is held, the policy or contract includes the assets in the
account.
new text end

ARTICLE 15

UNCLAIMED PROPERTY; RULES FOR TAKING CUSTODY OF PROPERTY
PRESUMED ABANDONED

Section 1.

new text begin [345A.301] ADDRESS OF APPARENT OWNER TO ESTABLISH
PRIORITY.
new text end

new text begin In sections 345A.301 to 345A.307, the following rules apply:
new text end

new text begin (1) The last known address of an apparent owner is any description, code, or other
indication of the location of the apparent owner which identifies the state, even if the
description, code, or indication of location is not sufficient to direct the delivery of first-class
United States mail to the apparent owner.
new text end

new text begin (2) If the United States postal zip code associated with the apparent owner is for a post
office located in this state, this state is deemed to be the state of the last known address of
the apparent owner unless other records associated with the apparent owner specifically
identify the physical address of the apparent owner to be in another state.
new text end

new text begin (3) If the address under paragraph (2) is in another state, the other state is deemed to be
the state of the last known address of the apparent owner.
new text end

new text begin (4) The address of the apparent owner of a life or endowment insurance policy or annuity
contract or its proceeds is presumed to be the address of the insured or annuitant if a person
other than the insured or annuitant is entitled to the amount owed under the policy or contract
and the address of the other person is not known by the insurance company and cannot be
determined under section 345A.302.
new text end

Sec. 2.

new text begin [345A.302] ADDRESS OF APPARENT OWNER IN THIS STATE.
new text end

new text begin The administrator may take custody of property that is presumed abandoned, whether
located in this state, another state, or a foreign country, if:
new text end

new text begin (1) the last known address of the apparent owner in the records of the holder is in this
state; or
new text end

new text begin (2) the records of the holder do not reflect the identity or last known address of the
apparent owner, but the administrator has determined that the last known address of the
apparent owner is in this state.
new text end

Sec. 3.

new text begin [345A.303] IF RECORDS SHOW MULTIPLE ADDRESSES OF APPARENT
OWNER.
new text end

new text begin (a) Except as provided in subsection (b), if records of a holder reflect multiple addresses
for an apparent owner and this state is the state of the last known address, this state may
take custody of property presumed abandoned, whether located in this state or another state.
new text end

new text begin (b) If it appears from records of the holder that the last known address of the apparent
owner under subsection (a) is a temporary address and this state is the state of the next most
recently recorded address that is not a temporary address, this state may take custody of the
property presumed abandoned.
new text end

Sec. 4.

new text begin [345A.304] HOLDER DOMICILED IN THIS STATE.
new text end

new text begin (a) Except as provided in subsection (b) or section 345A.302 or 345A.303, the
administrator may take custody of property presumed abandoned, whether located in this
state, another state, or a foreign country, if the holder is domiciled in this state, another state,
or a governmental subdivision, agency, or instrumentality of this state and:
new text end

new text begin (1) another state or foreign country is not entitled to the property because there is no last
known address of the apparent owner or other person entitled to the property in the records
of the holder; or
new text end

new text begin (2) the state or foreign country of the last known address of the apparent owner or other
person entitled to the property does not provide for custodial taking of the property.
new text end

new text begin (b) Property is not subject to custody of the administrator under subsection (a) if the
property is specifically exempt from custodial taking under the law of this state, another
state, or foreign country of the last known address of the apparent owner.
new text end

new text begin (c) If a holder's state of domicile has changed since the time the property was presumed
abandoned, the holder's state of domicile in this section is deemed to be the state where the
holder was domiciled at the time the property was presumed abandoned.
new text end

Sec. 5.

new text begin [345A.305] CUSTODY IF TRANSACTION TOOK PLACE IN THIS STATE.
new text end

new text begin Except as provided in sections 345A.302 to 345A.304, the administrator may take custody
of property presumed abandoned whether located in this state or another state if:
new text end

new text begin (1) the transaction out of which the property arose took place in this state;
new text end

new text begin (2) the holder is domiciled in a state that does not provide for the custodial taking of the
property, except that if the property is specifically exempt from custodial taking under the
law of the state of the holder's domicile, the property is not subject to the custody of the
administrator; and
new text end

new text begin (3) the last known address of the apparent owner or other person entitled to the property
is unknown or in a state that does not provide for the custodial taking of the property, except
that if the property is specifically exempt from custodial taking under the law of the state
of the last known address, the property is not subject to the custody of the administrator.
new text end

Sec. 6.

new text begin [345A.306] TRAVELER'S CHECK, MONEY ORDER, OR SIMILAR
INSTRUMENT.
new text end

new text begin The administrator may take custody of sums payable on a traveler's check, money order,
or similar instrument presumed abandoned to the extent permissible under United States
Code, title 12, sections 2501 through 2503, as amended.
new text end

Sec. 7.

new text begin [345A.307] BURDEN OF PROOF TO ESTABLISH ADMINISTRATOR'S
RIGHT TO CUSTODY.
new text end

new text begin Subject to this chapter, if the administrator asserts a right to custody of unclaimed
property and there is a dispute concerning such property, the administrator has the initial
burden to prove:
new text end

new text begin (1) the amount of the property;
new text end

new text begin (2) the property is presumed abandoned; and
new text end

new text begin (3) the property is subject to the custody of the administrator.
new text end

ARTICLE 16

UNCLAIMED PROPERTY; REPORT BY HOLDER

Section 1.

new text begin [345A.401] REPORT REQUIRED BY HOLDER.
new text end

new text begin (a) A holder of property presumed abandoned and subject to the custody of the
administrator shall report in a record to the administrator concerning the property. A holder
shall submit an electronic report in a format prescribed by, and acceptable to, the
administrator.
new text end

new text begin (b) A holder may contract with a third party to make the report required under subsection
(a).
new text end

new text begin (c) Whether or not a holder contracts with a third party under subsection (b), the holder
is responsible:
new text end

new text begin (1) to the administrator for the complete, accurate, and timely reporting of property
presumed abandoned; and
new text end

new text begin (2) for paying or delivering to the administrator property described in the report.
new text end

Sec. 2.

new text begin [345A.402] CONTENT OF REPORT.
new text end

new text begin (a) The report required under section 345A.401 must:
new text end

new text begin (1) be signed by or on behalf of the holder and verified as to its completeness and
accuracy;
new text end

new text begin (2) be filed electronically, unless exception is granted, and be in a secure format approved
by the administrator which protects confidential information of the apparent owner;
new text end

new text begin (3) describe the property;
new text end

new text begin (4) except for a traveler's check, money order, or similar instrument, contain the name,
if known, last known address, if known, and Social Security number or taxpayer identification
number, if known or readily ascertainable, of the apparent owner of property with a value
of $50 or more;
new text end

new text begin (5) for an amount held or owing under a life or endowment insurance policy or annuity
contract, contain the name and last known address of the insured, annuitant, or other apparent
owner of the policy or contract and of the beneficiary;
new text end

new text begin (6) for property held in or removed from a safe deposit box, indicate the location of the
property, and where it may be inspected by the administrator;
new text end

new text begin (7) contain the commencement date for determining abandonment under sections
345A.201 to 345A.211;
new text end

new text begin (8) state that the holder has complied with the notice requirements of section 345A.501;
new text end

new text begin (9) identify property that is a nonfreely transferable security and explain why it is a
nonfreely transferable security; and
new text end

new text begin (10) contain other information prescribed by the administrator.
new text end

new text begin (b) A report under section 345A.401 may include in the aggregate items valued under
$50 each. If the report includes items in the aggregate valued under $50 each, the
administrator may not require the holder to provide the name and address of an apparent
owner of an item unless the information is necessary to verify or process a claim in progress
by the apparent owner.
new text end

new text begin (c) A report under section 345A.401 may include personal information as defined in
section 345A.401(a) about the apparent owner or the apparent owner's property.
new text end

new text begin (d) If a holder has changed its name while holding property presumed abandoned or is
a successor to another person that previously held the property for the apparent owner, the
holder must include in the report under section 345A.401 its former name or the name of
the previous holder, if any, and the known name and address of each previous holder of the
property.
new text end

Sec. 3.

new text begin [345A.403] WHEN REPORT TO BE FILED.
new text end

new text begin (a) Except as otherwise provided in subsection (b) and subject to subsection (c), the
report under section 345A.401 must be filed before November 1 of each year and cover the
12 months preceding July 1 of that year.
new text end

new text begin (b) Subject to subsection (c), the report under section 345A.401 to be filed by an insurance
company must be filed before May 1 of each year for the immediately preceding calendar
year.
new text end

new text begin (c) Before the date for filing the report under section 345A.401, the holder of property
presumed abandoned may request the administrator to extend the time for filing. The
administrator may grant an extension. If the extension is granted, the holder may pay or
make a partial payment of the amount the holder estimates ultimately will be due. The
payment or partial payment terminates accrual of interest on the amount paid.
new text end

Sec. 4.

new text begin [345A.404] RETENTION OF RECORDS BY HOLDER.
new text end

new text begin A holder required to file a report under section 345A.401 shall retain records for ten
years after the later of the date the report was filed or the last date a timely report was due
to be filed, unless a shorter period is provided by rule of the administrator. The holder may
satisfy the requirement to retain records under this section through an agent. The records
must contain:
new text end

new text begin (1) the information required to be included in the report;
new text end

new text begin (2) the date, place, and nature of the circumstances that gave rise to the property right;
new text end

new text begin (3) the amount or value of the property;
new text end

new text begin (4) the last known address of the apparent owner, if known to the holder; and
new text end

new text begin (5) if the holder sells, issues, or provides to others for sale or issue in this state traveler's
checks, money orders, or similar instruments, other than third-party bank checks, on which
the holder is directly liable, a record of the instruments while they remain outstanding,
indicating the state and date of issue.
new text end

Sec. 5.

new text begin [345A.405] PROPERTY REPORTABLE AND PAYABLE OR
DELIVERABLE ABSENT OWNER DEMAND.
new text end

new text begin Property is reportable and payable or deliverable under this chapter even if the owner
fails to make demand or present an instrument or document otherwise required to obtain
payment.
new text end

ARTICLE 17

UNCLAIMED PROPERTY; NOTICE TO APPARENT OWNER OF PROPERTY
PRESUMED ABANDONED

Section 1.

new text begin [345A.501] NOTICE TO APPARENT OWNER BY HOLDER.
new text end

new text begin (a) Subject to subsection (b), the holder of property presumed abandoned shall send to
the apparent owner notice by first-class United States mail that complies with section
345A.502 in a format acceptable to the administrator not more than 180 days nor less than
60 days before filing the report under section 345A.401 if:
new text end

new text begin (1) the holder has in its records an address for the apparent owner which the holder's
records do not disclose to be invalid and is sufficient to direct the delivery of first-class
United States mail to the apparent owner; and
new text end

new text begin (2) the value of the property is $50 or more.
new text end

new text begin (b) If an apparent owner has consented to receive e-mail delivery from the holder, the
holder shall send the notice described in subsection (a) both by first-class United States
mail to the apparent owner's last known mailing address and by e-mail, unless the holder
believes that the apparent owner's e-mail address is invalid.
new text end

new text begin (c) The holder of securities presumed abandoned under sections 345A.202, 345A.203,
or 345A.208 shall send the apparent owner notice by certified United States mail that
complies with section 345A.502, and in a format acceptable to the administrator, not less
than 60 days before filing the report under section 345A.401, if:
new text end

new text begin (1) the holder has in its records an address for the apparent owner which the holder's
records do not disclose to be invalid and is sufficient to direct the delivery of United States
mail to the apparent owner; and
new text end

new text begin (2) the value of the property is $1,000 or more.
new text end

new text begin (d) In addition to other indications of an apparent owner's interest in property pursuant
to section 345A.210, a signed return receipt in response to a notice sent pursuant to this
section by certified United States mail shall constitute a record communicated by the apparent
owner to the holder concerning the property or the account in which the property is held.
new text end

Sec. 2.

new text begin [345A.502] CONTENTS OF NOTICE BY HOLDER.
new text end

new text begin (a) Notice under section 345A.501 must contain a heading that reads substantially as
follows: "Notice. The State of Minnesota requires us to notify you that your property may
be transferred to the custody of the commissioner of commerce if you do not contact us
before (insert date that is 30 days after the date of this notice)."
new text end

new text begin (b) The notice under section 345A.501 must:
new text end

new text begin (1) identify the nature and, except for property that does not have a fixed value, the value
of the property that is the subject of the notice;
new text end

new text begin (2) state that the property will be turned over to the administrator;
new text end

new text begin (3) state that after the property is turned over to the administrator an apparent owner
that seeks return of the property must file a claim with the administrator;
new text end

new text begin (4) state that property that is not legal tender of the United States may be sold by the
administrator; and
new text end

new text begin (5) provide instructions that the apparent owner must follow to prevent the holder from
reporting and paying or delivering the property to the administrator.
new text end

Sec. 3.

new text begin [345A.503] NOTICE BY ADMINISTRATOR.
new text end

new text begin (a) The administrator shall give notice to an apparent owner that property presumed
abandoned and that appears to be owned by the apparent owner is held by the administrator
under this chapter.
new text end

new text begin (b) In providing notice under subsection (a), the administrator shall:
new text end

new text begin (1) publish every 12 months in at least one newspaper of general circulation in each
county in this state notice of property held by the administrator which must include:
new text end

new text begin (A) the total value of property received by the administrator during the preceding
12-month period, taken from the reports under section 345A.401;
new text end

new text begin (B) the total value of claims paid by the administrator during the preceding 12-month
period;
new text end

new text begin (C) the Internet address of the unclaimed property website maintained by the
administrator;
new text end

new text begin (D) a telephone number and e-mail address to contact the administrator to inquire about
or claim property; and
new text end

new text begin (E) a statement that a person may access the Internet by a computer to search for
unclaimed property and a computer may be available as a service to the public at a local
public library; and
new text end

new text begin (2) maintain a website or database accessible by the public and electronically searchable
which contains the names reported to the administrator of all apparent owners for whom
property is being held by the administrator. The administrator need not list property on such
website when:
new text end

new text begin (A) no owner name was reported;
new text end

new text begin (B) a claim has been initiated or is pending for the property;
new text end

new text begin (C) the administrator has made direct contact with the apparent owner of the property;
and
new text end

new text begin (D) other instances exist where the administrator reasonably believes exclusion of the
property is in the best interests of both the state and the owner of the property.
new text end

new text begin (c) The website or database maintained under subsection (b)(2) must include instructions
for filing with the administrator a claim to property and a printable claim form with
instructions for its use.
new text end

new text begin (d) In addition to giving notice under subsection (b), publishing the information under
subsection (b)(1), and maintaining the website or database under subsection (b)(2), the
administrator may use other printed publication, telecommunication, the Internet, or other
media to inform the public of the existence of unclaimed property held by the administrator.
new text end

ARTICLE 18

UNCLAIMED PROPERTY; TAKING CUSTODY OF PROPERTY BY
ADMINISTRATOR

Section 1.

new text begin [345A.601] DORMANCY CHARGE.
new text end

new text begin (a) A holder may deduct a dormancy charge from property required to be paid or delivered
to the administrator if:
new text end

new text begin (1) a valid contract between the holder and the apparent owner authorizes imposition of
the charge for the apparent owner's failure to claim the property within a specified time;
and
new text end

new text begin (2) the holder regularly imposes the charge and regularly does not reverse or otherwise
cancel the charge.
new text end

new text begin (b) The amount of the deduction under subsection (a) is limited to an amount that is not
unconscionable considering all relevant factors, including the marginal transactional costs
incurred by the holder in maintaining the apparent owner's property and any services received
by the apparent owner.
new text end

new text begin (c) A holder may not deduct an escheat fee or impose other charges solely by virtue of
property being reported as presumed abandoned.
new text end

Sec. 2.

new text begin [345A.602] PAYMENT OR DELIVERY OF PROPERTY TO
ADMINISTRATOR.
new text end

new text begin (a) Except as otherwise provided in this section, on filing a report under section 345A.401,
the holder shall pay or deliver to the administrator the property described in the report.
new text end

new text begin (b) If property in a report under section 345A.401 is an automatically renewable deposit
and a penalty or forfeiture in the payment of interest would result from paying the deposit
to the administrator at the time of the report, the date for payment of the property to the
administrator is extended until a penalty or forfeiture no longer would result from payment,
if the holder informs the administrator of the extended date.
new text end

new text begin (c) Tangible property in a safe deposit box may not be delivered to the administrator
until 60 days after filing the report under section 345A.401.
new text end

new text begin (d) If property reported to the administrator under section 345A.401 is a security, the
administrator may:
new text end

new text begin (1) make an endorsement, instruction, or entitlement order on behalf of the apparent
owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to
transfer the security; or
new text end

new text begin (2) dispose of the security under section 345A.702.
new text end

new text begin (e) If the holder of property reported to the administrator under section 345A.401 is the
issuer of a certificated security, the administrator may obtain a replacement certificate in
physical or book-entry form under section 336.8-405. An indemnity bond is not required.
new text end

new text begin (f) The administrator shall establish procedures for the registration, issuance, method
of delivery, transfer, and maintenance of securities delivered to the administrator by a holder.
new text end

new text begin (g) An issuer, holder, and transfer agent or other person acting under this section under
instructions of and on behalf of the issuer or holder is not liable to the apparent owner for,
and must be indemnified by the state against, a claim arising with respect to property after
the property has been delivered to the administrator.
new text end

new text begin (h) A holder is not required to deliver to the administrator a security identified by the
holder as a nonfreely transferable security. If the administrator or holder determines that a
security is no longer a nonfreely transferable security, the holder shall deliver the security
on the next regular date prescribed for delivery of securities under this chapter. The holder
shall make a determination annually whether a security identified in a report filed under
section 345A.401 as a nonfreely transferable security is no longer a nonfreely transferable
security.
new text end

Sec. 3.

new text begin [345A.603] EFFECT OF PAYMENT OR DELIVERY OF PROPERTY TO
ADMINISTRATOR.
new text end

new text begin On payment or delivery of property to the administrator under this chapter, the
administrator, as agent for the state, assumes custody and responsibility for safekeeping the
property. A holder that pays or delivers property to the administrator in good faith and
substantially complies with sections 345A.501 and 345A.502 is relieved of liability which
may arise thereafter with respect to the property so paid or delivered.
new text end

Sec. 4.

new text begin [345A.604] RECOVERY OF PROPERTY BY HOLDERS FROM
ADMINISTRATOR.
new text end

new text begin (a) A holder that under this chapter pays money to the administrator may file a claim
for reimbursement from the administrator of the amount paid if the holder:
new text end

new text begin (1) paid the money in error; or
new text end

new text begin (2) after paying the money to the administrator, paid money to a person the holder
reasonably believed entitled to the money.
new text end

new text begin (b) If a claim for return of property is made, the holder shall include with the claim
evidence sufficient to establish that the apparent owner has claimed the property from the
holder or that the property was delivered by the holder to the administrator in error.
new text end

Sec. 5.

new text begin [345A.605] CREDITING INCOME OR GAIN TO OWNER'S ACCOUNT.
new text end

new text begin If property other than money is delivered to the administrator, the owner is entitled to
receive from the administrator income or gain realized or accrued on the property before
the property is sold. If the property was interest-bearing, the administrator shall pay interest
at the lesser of the rate of the weekly average one-year constant maturity treasury yield, as
published by the Board of Governors of the Federal Reserve System, for the calendar week
preceding the beginning of the fiscal quarter in which the property was sold or the rate the
property earned while in the possession of the holder. Interest begins to accrue when the
property is delivered to the administrator and ends on the earlier of the expiration of ten
years after its delivery or the date on which payment is made to the owner.
new text end

Sec. 6.

new text begin [345A.606] ADMINISTRATOR'S OPTIONS AS TO CUSTODY.
new text end

new text begin (a) The administrator may decline to take custody of property reported under section
345A.401 if the administrator determines that:
new text end

new text begin (1) the property has a value less than the estimated expenses of notice and sale of the
property; or
new text end

new text begin (2) taking custody of the property would be unlawful.
new text end

new text begin (b) A holder may pay or deliver property to the administrator before the property is
presumed abandoned under this chapter if the holder:
new text end

new text begin (1) sends the apparent owner of the property notice required by section 345A.501 and
provides the administrator evidence of the holder's compliance with this paragraph;
new text end

new text begin (2) includes with the payment or delivery a report regarding the property conforming to
section 345A.402; and
new text end

new text begin (3) first obtains the administrator's written consent to accept payment or delivery.
new text end

new text begin (c) A holder's request for the administrator's consent under subsection (b)(3) must be in
a record. If the administrator fails to respond to the request not later than 30 days after
receipt of the request, the administrator is deemed to consent to the payment or delivery of
the property and the payment or delivery is considered to have been made in good faith.
new text end

new text begin (d) On payment or delivery of property under subsection (b), the property is presumed
abandoned.
new text end

Sec. 7.

new text begin [345A.607] DISPOSITION OF PROPERTY HAVING NO SUBSTANTIAL
VALUE; IMMUNITY FROM LIABILITY.
new text end

new text begin (a) If the administrator takes custody of property delivered under this chapter and later
determines that the property has no substantial commercial value or that the cost of disposing
of the property will exceed the value of the property, the administrator may return the
property to the holder or destroy or otherwise dispose of the property.
new text end

new text begin (b) An action or proceeding may not be commenced against the state, an agency of the
state, the administrator, another officer, employee, or agent of the state, or a holder for or
because of an act of the administrator under this section, except for intentional misconduct
or malfeasance.
new text end

Sec. 8.

new text begin [345A.608] PERIODS OF LIMITATION AND REPOSE.
new text end

new text begin (a) Expiration, before, on, or after the effective date of this chapter, of a period of
limitation on an owner's right to receive or recover property, whether specified by contract,
statute, or court order, does not prevent the property from being presumed abandoned or
affect the duty of a holder under this chapter to file a report or pay or deliver property to
the administrator.
new text end

new text begin (b) An action or proceeding may not be maintained by the administrator to enforce this
act's reporting, delivery, or payment requirements more than ten years after the holder
specifically identified the property in a report filed with the administrator, or gave express
notice to the administrator of a dispute regarding the property. In the absence of such a
report or other express notice, the period of limitation is tolled. The period of limitation is
also tolled by filing a fraudulent report.
new text end

ARTICLE 19

UNCLAIMED PROPERTY; SALE OF PROPERTY BY ADMINISTRATOR

Section 1.

new text begin [345A.701] PUBLIC SALE OF PROPERTY.
new text end

new text begin (a) Subject to section 345A.702, not earlier than three years after receipt of property
presumed abandoned, the administrator may sell the property.
new text end

new text begin (b) Before selling property under subsection (a), the administrator shall give notice to
the public of:
new text end

new text begin (1) the date of the sale; and
new text end

new text begin (2) a reasonable description of the property.
new text end

new text begin (c) A sale under subsection (a) must be to the highest bidder:
new text end

new text begin (1) at public sale at a location in this state which the administrator determines to be the
most favorable market for the property;
new text end

new text begin (2) on the Internet; or
new text end

new text begin (3) on another forum the administrator determines is likely to yield the highest net
proceeds of sale.
new text end

new text begin (d) The administrator may decline the highest bid at a sale under this section and reoffer
the property for sale if the administrator determines the highest bid is insufficient.
new text end

new text begin (e) If a sale held under this section is to be conducted other than on the Internet, the
administrator must publish at least one notice of the sale, at least two weeks but not more
than five weeks before the sale, in a newspaper of general circulation in the county in which
the property is sold. For purposes of this subsection, the reasonable description of property
to be sold required by subsection (b) may be satisfied by posting such information on the
administrator's website so long as the newspaper notice includes the website address where
such information is posted.
new text end

Sec. 2.

new text begin [345A.702] DISPOSAL OF SECURITIES.
new text end

new text begin (a) The administrator may not sell or otherwise liquidate a security until one year after
the administrator receives the security, unless requested to do so by the owner of the security
in making a claim for the property.
new text end

new text begin (b) The administrator may not sell a security listed on an established stock exchange for
less than the price prevailing on the exchange at the time of sale. The administrator may
sell a security not listed on an established exchange by any commercially reasonable method.
new text end

Sec. 3.

new text begin [345A.704] PURCHASER OWNS PROPERTY AFTER SALE.
new text end

new text begin A purchaser of property at a sale conducted by the administrator under this chapter takes
the property free of all claims of the owner, a previous holder, or a person claiming through
the owner or holder. The administrator shall execute documents necessary to complete the
transfer of ownership to the purchaser.
new text end

ARTICLE 20

UNCLAIMED PROPERTY; ADMINISTRATION OF PROPERTY

Section 1.

new text begin [345A.801] DEPOSIT OF FUNDS BY ADMINISTRATOR.
new text end

new text begin (a) The administrator shall deposit in the general fund all funds received under this
chapter, including proceeds from the sale of property under sections 345A.701 to 345A.704,
except:
new text end

new text begin (1) expenses of disposition of property delivered to the administrator under this chapter;
new text end

new text begin (2) expenses incurred in examining records of or collecting property from a putative
holder or holder; and
new text end

new text begin (3) as otherwise provided in this chapter.
new text end

Sec. 2.

new text begin [345A.802] ADMINISTRATOR TO RETAIN RECORDS OF PROPERTY.
new text end

new text begin The administrator shall:
new text end

new text begin (1) record and retain the name and last known address of each person shown on a report
filed under section 345A.401 to be the apparent owner of property delivered to the
administrator;
new text end

new text begin (2) record and retain the name and last known address of each insured or annuitant and
beneficiary shown on the report;
new text end

new text begin (3) for each policy of insurance or annuity contract listed in the report of an insurance
company, record and retain the policy or account number, the name of the company, and
the amount due or paid; and
new text end

new text begin (4) for each apparent owner listed in the report, record and retain the name of the holder
that filed the report and the amount due or paid.
new text end

ARTICLE 21

UNCLAIMED PROPERTY; CONFIDENTIALITY AND SECURITY OF
INFORMATION

Section 1.

new text begin [345A.901] DATA PRACTICES.
new text end

new text begin (a) All working papers, recorded information, documents, and copies thereof produced
by, obtained by, or disclosed to the administrator or the administrator's agent in the course
of an examination made under this chapter are classified private or nonpublic for purposes
of the Minnesota Government Data Practices Act, Minnesota Statutes, chapter 13, are not
subject to subpoena, and may only be disclosed to:
new text end

new text begin (1) the extent required or permitted by law to report upon or take special action regarding
compliance and delivery of unclaimed property, or ordered by a court of law to testify or
produce evidence in a civil or criminal proceeding;
new text end

new text begin (2) another department or agency of this state or the United States;
new text end

new text begin (3) the person that administers the unclaimed property law of another state, if the other
state accords substantially reciprocal privileges to the administrator of this state and maintains
the confidentiality and security of information obtained in a substantially equivalent manner;
new text end

new text begin (4) a person subject to an examination as required by this chapter; and
new text end

new text begin (5) the auditor or administrator of a joint examination conducted with another state, the
United States, a foreign country or subordinate unit of a foreign country, or any other
governmental entity if the governmental entity conducting the examination maintains the
confidentiality and security of information in a substantially equivalent manner.
new text end

new text begin (b) All personal information derived or otherwise obtained by or communicated to the
administrator or the administrator's agent from a person making a claim for personal property
are classified private or nonpublic for purposes of the Minnesota Government Data Practices
Act, Minnesota Statutes, chapter 13, and may not be made public by the administrator or
the administrator's agent, except to:
new text end

new text begin (1) the subject, or the subject's personal representative, attorney, other legal representative,
heir, or agent designated to have the information;
new text end

new text begin (2) the personal representative of an estate, other legal representative, agent designated
by a deceased apparent owner, or a person entitled to inherit from a deceased apparent
owner;
new text end

new text begin (3) another department or agency of this state or the United States; and
new text end

new text begin (4) the extent required or permitted by law or ordered by a court of law to testify or
produce evidence in a civil or criminal proceeding.
new text end

new text begin (c) Except as otherwise provided by law, the administrator shall include on its website
or in the database required by section 345A.503(b)(2) the name of each apparent owner of
property held by the administrator. The administrator may include in published notices,
printed publications, telecommunications, the Internet, or other media and on the website
or in the database additional information concerning the apparent owner's property if the
administrator believes the information will assist in identifying and returning property to
the owner and does not disclose personal information except the home or physical address
of an apparent owner.
new text end

ARTICLE 22

UNCLAIMED PROPERTY; HEARINGS, PROCEDURE, AND JUDICIAL REVIEW

Section 1.

Minnesota Statutes 2018, section 345.515, is amended to read:

345.515 AGREEMENTS TO LOCATE REPORTED PROPERTY.

It is unlawful for a person to seek or receive from another person or contract with a
person for a fee or compensation for locating property, deleted text begin knowing it to have been reported or
paid or delivered to the commissioner pursuant to chapter 345 deleted text end prior to 24 months after the
date the property is paid or delivered to the deleted text begin commissioner deleted text end new text begin administrator new text end .

deleted text begin No deleted text end new text begin An new text end agreement deleted text begin entered into after 24 months after the date the property is paid or
delivered to the commissioner deleted text end is valid new text begin only new text end if deleted text begin a person thereby undertakes to locate property
included in a report for a fee or other compensation exceeding ten percent of the value of
the recoverable property unless deleted text end the agreement is in writing deleted text begin and deleted text end new text begin , is new text end signed by the owner deleted text begin and deleted text end new text begin , new text end
discloses the nature and value of the property and the name and address of the holder thereof
as such facts have been reported new text begin , and provides for compensation in an amount that is no
more than 15 percent of the amount collected new text end . Nothing in this section shall be construed to
prevent an owner from asserting at any time that an agreement to locate property is based
upon an excessive or unjust consideration.

Sec. 2.

Minnesota Statutes 2018, section 345.53, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Commissioner's deleted text end new text begin Administrator's new text end duties.

new text begin (a) new text end The deleted text begin commissioner deleted text end new text begin
administrator or the administrator's agent new text end may at reasonable times and upon reasonable
notice examine the records of any person new text begin , including examination of appropriate records in
the possession of an agent of the person under examination, new text end if deleted text begin there is reason to believe that
the person has failed to report property that should have been reported pursuant to sections
345.31 to 345.60. deleted text end new text begin the records are reasonably necessary to determine whether the person has
complied with this chapter. The administrator may issue an administrative subpoena requiring
the person or agent of the person to make records available for examination, and bring an
action seeking judicial enforcement of the subpoena, as well as impose penalties under
section 345.55.
new text end

new text begin (b) The administrator may contract with a person to conduct an examination under this
chapter. The contract shall be awarded pursuant to a request for proposals issued in
compliance with the state procurement rules.
new text end

new text begin (1) If the administrator contracts with a person under this subsection, the contract may
provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee.
new text end

new text begin (2) A contract under subsection (b) is public data.
new text end

new text begin (3) If the administrator conducts an examination under subsection (a), each person under
examination shall pay an examination fee upon the request of the administrator and to be
based on the salary cost of examiners or assistants, and at such an average rate per day or
fraction thereof so as to provide for the total cost of such examinations.
new text end

new text begin (c) All data gathered in the course of an examination or audit of a holder or purported
holder under this chapter is classified as private or nonpublic information under the Minnesota
Government Data Practices Act, Minnesota Statutes, chapter 13, except as set forth in section
(b)(2) and except that such data may be disclosed as follows:
new text end

new text begin (1) to the extent required or permitted by law to report upon or take special action
regarding compliance and delivery of unclaimed property, or ordered by a court of law;
new text end

new text begin (2) to another department or agency of this state or the United States;
new text end

new text begin (3) to the person that administers the unclaimed property law of another state, if the
other state accords substantially reciprocal privileges to the administrator of this state, and
maintains the confidentiality and security of information by law or by agreement in a
substantially equivalent manner;
new text end

new text begin (4) to a person subject to an examination as required by this chapter; and
new text end

new text begin (5) to the auditor or administrator of a joint examination conducted with another state,
the United States, a foreign country or subordinate unit of a foreign country, or any other
governmental entity if the governmental entity conducting the examination maintains the
confidentiality and security of information by law or by agreement in a substantially
equivalent manner.
new text end

Sec. 3.

Minnesota Statutes 2018, section 345.53, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Failure of person examined to retain records. new text end

new text begin If a person subject to
examination under this chapter does not retain the records required by section 345A.404,
the administrator may determine the value of property due using a reasonable method of
estimation based on all information available to the administrator, including extrapolation
and use of statistical sampling when appropriate and necessary. A payment made based on
estimation under this section is a penalty for failure to maintain the records required by
section 345A.404, and does not relieve a person from an obligation to report and deliver
property to a state in which the holder is domiciled.
new text end

Sec. 4.

new text begin [345A.950] HEARINGS, PROCEDURE, JUDICIAL REVIEW.
new text end

new text begin (a) Any person aggrieved by a decision of the administrator under this chapter as it
relates to holder examinations may, within 21 days after that decision, make a written request
to the administrator for a hearing pursuant to this article to determine whether the decision
complies with the requirements of this chapter.
new text end

new text begin (b) Any person aggrieved by a decision of the administrator under this chapter as it
relates to claims of ownership of unclaimed property may, within 21 days after that decision
or within 180 days from the filing of the claim if the administrator fails to act on a claim,
make a written request to the administrator for a hearing pursuant to this article to determine
whether the decision complies with the requirements of this chapter.
new text end

new text begin (c) At the administrator's discretion, a hearing may be based upon written submissions,
and nothing contained in this section requires the observance of formal rules of pleading or
evidence.
new text end

new text begin (d) The administrator shall commence a hearing within 45 days after receipt of the
request and shall give not less than 15 days' written notice of the hearing. Within 30 days
after the hearing, the administrator shall affirm, reverse, or modify the previous action and
specify the reasons for that decision in writing.
new text end

new text begin (e) An order or decision of the administrator is a final decision subject to appeal in
accordance with chapter 14.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 345.53, subdivision 2, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-3338

177.27 POWERS AND DUTIES OF COMMISSIONER.

Subdivision 1.

Examination of records.

The commissioner may enter during reasonable office hours or upon request and inspect the place of business or employment of any employer of employees working in the state, to examine and inspect books, registers, payrolls, and other records of any employer that in any way relate to wages, hours, and other conditions of employment of any employees. The commissioner may transcribe any or all of the books, registers, payrolls, and other records as the commissioner deems necessary or appropriate and may question the employees to ascertain compliance with sections 177.21 to 177.435. The commissioner may investigate wage claims or complaints by an employee against an employer if the failure to pay a wage may violate Minnesota law or an order or rule of the department.

Subd. 3.

Adequacy of records.

If the records maintained by the employer do not provide sufficient information to determine the exact amount of back wages due an employee, the commissioner may make a determination of wages due based on available evidence and mediate a settlement with the employer.

345.53 EXAMINATION OF RECORDS.

Subd. 2.

Examination charges.

If an examination of the records of a person results in the disclosure of property reportable and deliverable under sections 345.31 to 345.60, the commissioner may assess the cost of the examination against the holder at the rate of $15 per hour per examiner, but in no case may the charges exceed the value of the property found to be reportable and deliverable.