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Capital IconMinnesota Legislature

HF 2209

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/30/2017 10:16am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18
2.19 2.20
2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34
2.35 2.36 2.37 2.38 2.39 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18
29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33
34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29
37.30 37.31 37.32 37.33 37.34 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32
38.33 38.34 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9
39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33
45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31
46.32 46.33 46.34 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19
48.20 48.21 48.22 48.23 48.24 48.25 48.26
48.27 48.28 48.29 48.30 48.31
49.1 49.2 49.3 49.4 49.5 49.6
49.7
49.8 49.9
49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20
50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26
53.27 53.28 53.29 53.30 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.31 54.30 54.33 54.32 54.35 54.34 55.1 55.2 55.3
55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15
55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19
56.20 56.21
56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 57.1 57.2 57.3 57.4
57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21
57.22 57.23 57.24 57.25 57.26 57.27 57.28 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11
59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26
59.27 59.28 59.29 59.30 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14
60.15 60.16 60.17 60.18 60.19 60.20
60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20
61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 62.1 62.2 62.3 62.4
62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 63.1 63.2
63.3 63.4 63.5 63.6 63.7 63.8
63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25
63.26 63.27 63.28 63.29 63.30 63.31 64.1 64.2
64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25
64.26 64.27 64.28 64.29 64.30 64.31
64.32
65.1 65.2
65.3 65.4 65.5
65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20
65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 66.1 66.2 66.3 66.4 66.5 66.6
66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24
66.25
66.26 66.27 66.28 66.29 66.30 66.31 66.32 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 68.1 68.2 68.3 68.4 68.5 68.6
68.7
68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 70.1 70.2 70.3 70.4
70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18
71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 73.1 73.2 73.3
73.4
73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30
74.31
74.32 74.33 74.34 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15
75.16 75.17
75.18 75.19 75.20
75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12
76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20
76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32
77.1 77.2 77.3 77.4 77.5
77.6 77.7
77.8 77.9
77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8
78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 80.1
80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12
80.13 80.14 80.15 80.16 80.17 80.18
80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 81.1 81.2 81.3
81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15
81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 82.1 82.2 82.3 82.4 82.5 82.6 82.7
82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25
82.26 82.27 82.28 82.29 82.30 82.31 83.1 83.2 83.3 83.4
83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21
83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22
84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20
85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 87.1 87.2 87.3 87.4 87.5
87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 88.1 88.2
88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16
88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32
89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12
89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31
90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8
90.9 90.10 90.11 90.12 90.13
90.14 90.15 90.16 90.17
90.18 90.19 90.20 90.21
90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32
92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9
93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21
94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15
95.16 95.17
95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 96.1 96.2 96.3 96.4 96.5 96.6 96.7
96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15
96.16 96.17 96.18 96.19 96.20 96.21
96.22 96.23 96.24 96.25 96.26
96.27 96.28 96.29 96.30 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19
97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29
97.30 97.31 97.32 97.33 97.34
98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9
98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 99.1 99.2 99.3 99.4 99.5
99.6 99.7 99.8 99.9 99.10
99.11 99.12 99.13 99.14 99.15 99.16
99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13
100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29
100.30 100.31 100.32 101.1 101.2
101.3 101.4 101.5 101.6 101.7 101.8
101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17
101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31
103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33
105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 106.1 106.2 106.3 106.4 106.5 106.6
106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17
106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24
107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 108.1 108.2
108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11
108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 109.1 109.2
109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 110.1 110.2 110.3 110.4 110.5 110.6 110.7
110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27
112.28 112.29 112.30 112.31 112.32 112.33 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30
113.31 113.32 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8
114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18
114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28
114.29 114.30 114.31 114.32 114.33 115.1 115.2
115.3 115.4 115.5 115.6 115.7 115.8 115.9
115.10 115.11 115.12 115.13 115.14
115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22
115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17
117.18 117.19
117.20 117.21 117.22 117.23 117.24 117.25 117.26
117.27 117.28 117.29
118.1 118.2 118.3
118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20
118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31
119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12
119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29
120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21
121.22 121.23 121.24
121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 125.1 125.2 125.3
125.4 125.5 125.6 125.7 125.8
125.9 125.10 125.11 125.12 125.13
125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11
126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 127.1 127.2 127.3 127.4 127.5
127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25
127.26 127.27 127.28 127.29 127.30 127.31 127.32 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25
129.26 129.27 129.28
129.29 129.30 129.31
130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25
130.26 130.27 130.28 130.29 130.30 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16
131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27
131.28 131.29 131.30 131.31 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25
132.26 132.27 132.28 132.29 132.30 132.31 132.32 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11
133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25
133.26 133.27 133.28 133.29 133.30 133.31 133.32 134.1 134.2 134.3 134.4 134.5
134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30
135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28
136.29 136.30 136.31 136.32 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13
137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26
137.27 137.28 137.29 137.30 137.31 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16
139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13
140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11
141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 142.1 142.2 142.3
142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11
142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19
142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11
143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17
145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8
146.9 146.10 146.11 146.12 146.13 146.14 146.15
146.16 146.17 146.18 146.19 146.20
146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29
147.1 147.2
147.3 147.4
147.5 147.6 147.7 147.8 147.9 147.10 147.11
147.12 147.13 147.14 147.15 147.16 147.17 147.18
147.19
147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12
149.13
149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 150.1 150.2 150.3
150.4 150.5 150.6 150.7 150.8 150.9 150.10
150.11
150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24
150.25 150.26 150.27 150.28 150.29 150.30 150.31 151.1 151.2 151.3 151.4 151.5 151.6
151.7
151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32
151.33
152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8
152.9 152.10 152.11
152.12 152.13 152.14 152.15 152.16
152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24
152.25
152.26 152.27
152.28 152.29 152.30 152.31 153.1 153.2 153.3 153.4
153.5 153.6 153.7 153.8 153.9 153.10 153.11
153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27
154.28 154.29 154.30 154.31 154.32 155.1 155.2
155.3
155.4 155.5
155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29
155.30
156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9
157.10
157.11 157.12 157.13 157.14 157.15 157.16 157.17
157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31
160.32
161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14
161.15
161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27
161.28
161.29 161.30 161.31 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19
164.20
164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11
165.12
165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24
165.25
165.26 165.27 165.28 165.29 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8
166.9 166.10
166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 166.33 166.34
167.1 167.2
167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21
167.22 167.23
167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 167.33 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29
168.30
169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 169.33 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29
170.30
170.31 170.32 170.33 170.34 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16
172.17
172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 173.32 173.33 173.34 173.35 174.1 174.2 174.3 174.4 174.5 174.6
174.7
174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12
175.13
175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20
177.21
177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 177.33 177.34 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31
178.32
179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16
179.17 179.18 179.19
179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33
180.1 180.2
180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19
180.20
180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10
182.11
182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22
182.23
182.24 182.25 182.26 182.27 182.28 182.29 182.30 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11
183.12
183.13 183.14 183.15 183.16 183.17 183.18 183.19
183.20
183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18
184.19
184.20 184.21 184.22 184.23 184.24
184.25 184.26 184.27 184.28 184.29 184.30 184.31 185.1 185.2 185.3 185.4 185.5
185.6
185.7 185.8 185.9 185.10 185.11 185.12
185.13
185.14 185.15 185.16 185.17 185.18 185.19 185.20
185.21
185.22 185.23 185.24 185.25 185.26
185.27
185.28 185.29 186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19
186.20
186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 187.1 187.2
187.3
187.4 187.5 187.6 187.7 187.8
187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22
187.23
187.24 187.25 187.26 187.27 187.28 187.29 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13
188.14
188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 189.1 189.2 189.3 189.4 189.5 189.6 189.7
189.8
189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20
191.21
191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29
191.30
192.1 192.2 192.3 192.4 192.5
192.6
192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15
193.16
193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15
194.16
194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24
194.25
194.26 194.27
194.28 194.29 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26
195.27 195.28
195.29 195.30 195.31 195.32 195.33 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32 196.33 196.34 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16
197.17 197.18
197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 198.35
199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 200.1 200.2 200.3 200.4 200.5 200.6
200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29
201.30 201.31 201.32 201.33 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12
203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25
203.26 203.27 203.28
203.29 203.30 203.31 203.32 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14
204.15 204.16 204.17
204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 204.33 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11
205.12 205.13 205.14
205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 208.33 208.34 209.1 209.2 209.3
209.4 209.5
209.6 209.7 209.8 209.9 209.10 209.11
209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28
210.1 210.2 210.3 210.4 210.5 210.6 210.7
210.8

A bill for an act
relating to state government; appropriating money for jobs and economic
development; appropriating money for the Department of Employment and
Economic Development, Housing Finance Agency, Department of Labor and
Industry, Bureau of Mediation Services, Workers' Compensation Court of Appeals,
Department of Commerce, Public Utilities Commission, Public Facilities Authority,
and the Department of Iron Range Resources and Rehabilitation; making policy
and housekeeping changes to labor and industry provisions; making policy changes
to employment, economic development, and workforce development provisions;
making policy changes to the Department of Iron Range Resources and
Rehabilitation; making policy, housekeeping, and technical changes regarding
unemployment insurance; making changes to commerce, telecommunications, and
energy policy; making other miscellaneous policy changes; allocating workforce
housing tax-exempt bonds; modifying fees; modifying rulemaking procedures;
modifying criminal penalties; requiring reports; amending Minnesota Statutes
2016, sections 3.732, subdivision 1; 3.736, subdivision 3; 3.8851, subdivision 1;
15.01; 15.38, subdivision 7; 15A.0815, subdivision 3; 16B.323; 43A.02, subdivision
22; 45.013; 45.0135, subdivision 6; 65B.84, subdivision 1; 85.0146, subdivision
1; 116.03, by adding a subdivision; 116C.779, subdivision 1, by adding a
subdivision; 116C.7792; 116D.04, subdivision 1a; 116J.01, subdivision 5; 116J.013;
116J.423, subdivision 2; 116J.424; 116J.994, subdivisions 3, 5, 7; 116L.17,
subdivision 1; 175.45; 216A.03, subdivision 1, by adding a subdivision; 216B.03;
216B.16, subdivisions 1a, 6; 216B.161, subdivision 1; 216B.1691, subdivision 2f;
216B.1694, subdivision 1; 216B.241, subdivisions 1b, 1c, 2, 5, 5d, 7; 216B.2422,
subdivisions 2, 3, 4; 216B.243, subdivision 8; 216C.05, subdivision 2; 216C.41,
subdivisions 2, 5a; 216C.435, by adding a subdivision; 216E.03, subdivisions 3,
9; 216E.04, subdivision 7; 216F.01, subdivision 2; 216F.011; 216F.04; 216H.03,
subdivisions 3, 4, 7; 237.01, by adding subdivisions; 268.031, subdivision 1;
268.035, subdivisions 15, 20, 21d, 23, 30; 268.042, subdivision 1; 268.046,
subdivision 3; 268.051, subdivisions 1, 9; 268.065, subdivision 2; 268.07,
subdivisions 2, 3a, 3b; 268.085, subdivisions 1, 6, 7, 12, 13, 13a; 268.0865,
subdivision 5; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.105,
subdivision 2; 268.131; 268.18, subdivisions 2, 2b, 5; 268.182; 268.184; 268.194,
subdivisions 1, 4; 276A.01, subdivisions 8, 17; 276A.06, subdivision 8; 282.38,
subdivisions 1, 3; 297I.11, subdivision 2; 298.001, subdivision 8, by adding a
subdivision; 298.018, subdivision 1; 298.17; 298.22, subdivisions 1, 1a, 5a, 6, 10,
11, by adding subdivisions; 298.221; 298.2211, subdivisions 3, 6; 298.2212;
298.2214, subdivision 2; 298.223; 298.227; 298.27; 298.28, subdivisions 7, 7a,
9c, 9d, 11; 298.292, subdivision 2; 298.296; 298.2961; 298.297; 298.46,
subdivisions 2, 5, 6; 325J.06; 326B.092, subdivision 7; 326B.153, subdivision 1;
326B.37, by adding subdivisions; 326B.435, subdivision 2; 326B.50, subdivision
3, by adding subdivisions; 326B.55, subdivisions 2, 4; 326B.805, subdivision 3;
326B.89, subdivisions 1, 5; 345.42, subdivision 1, by adding a subdivision; 462.355,
subdivision 4; 462A.201, subdivision 2; 462A.204, subdivision 8; 466.03,
subdivision 6c; 469.310, subdivision 9; 473.145; 473.254, subdivisions 2, 3a;
474A.02, subdivision 21; Laws 2010, chapter 389, article 5, section 7; Laws 2014,
chapter 211, section 13, as amended; Laws 2014, chapter 312, article 2, section
14, as amended; Laws 2015, First Special Session chapter 1, article 1, sections 2,
subdivision 6; 5, subdivision 2; Laws 2016, chapter 189, article 7, section 46;
proposing coding for new law in Minnesota Statutes, chapters 14; 116C; 116J;
175; 216C; 216G; 237; 239; 326B; 462A; 462C; 471; 474A; repealing Minnesota
Statutes 2016, sections 3.8852; 116C.779, subdivision 3; 116J.549; 174.187;
216B.2424; 216B.8109; 216B.811; 216B.812; 216B.813; 216B.815; 216C.29;
216C.411; 216C.412; 216C.413; 216C.414; 216C.415; 216C.416; 298.22,
subdivision 8; 298.2213; 298.298; 326B.89, subdivision 14; Laws 2005, chapter
112, article 1, section 14; Laws 2013, chapter 85, article 6, section 11.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginJOBS AND ECONOMIC DEVELOPMENT.
new text end

new text begin (a) 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 "2018" and "2019" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The
biennium" is fiscal years 2018 and 2019.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2017 legislative
session, the appropriation must be given effect only once.
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 2018
new text end
new text begin 2019
new text end

Sec. 2. new text beginDEPARTMENT 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 128,211,000
new text end
new text begin $
new text end
new text begin 111,024,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2018
new text end
new text begin 2019
new text end
new text begin General
new text end
new text begin 93,997,000
new text end
new text begin 84,160,000
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 26,164,000
new text end
new text begin 26,164,000
new text end
new text begin Special Revenue
new text end
new text begin 7,350,000
new text end
new text begin 0
new text end

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

new text begin (b) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of
employment and economic development must
not allow transfers of money appropriated in
this section between divisions or programs of
the Department of Employment and Economic
Development.
new text end

new text begin (c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of employment and economic
development must not allow billing between
divisions or programs within the Department
of Employment and Economic Development,
or otherwise use any "Internal Billing
Expenditures."
new text end

new text begin (d) Notwithstanding Minnesota Statutes,
sections 16B.37, subdivision 4, and 471.59,
except for work performed by MN.IT under
Minnesota Statutes, chapter 16E, the
commissioner of employment and economic
development must not allow billing or
transfers between other executive branch
agencies or departments and the Department
of Employment and Economic Development.
new text end

new text begin Subd. 2. new text end

new text begin Business and Community Development
new text end

new text begin 48,084,000
new text end
new text begin 38,834,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 39,134,000
new text end
new text begin 37,234,000
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 900,000
new text end
new text begin 900,000
new text end
new text begin Special Revenue
new text end
new text begin 7,350,000
new text end
new text begin 0
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $4,154,000 in fiscal
year 2018 and $4,219,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 40.2 full-time
equivalent positions in fiscal year 2018 and
40.2 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b)(1) $12,000,000 the first year and
$11,000,000 the second year are for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses and
technology upgrades. This appropriation is
available until June 30, 2021.
new text end

new text begin (2) Of the amount appropriated in fiscal year
2018, $4,000,000 is for a loan to construct and
equip a wholesale electronic component
distribution center investing a minimum of
$200,000,000 and constructing a facility at
least 700,000 square feet in size. Loan funds
may be used for purchases of materials,
supplies, and equipment for the construction
of the facility and are available from July 1,
2017, to June 30, 2021. The commissioner of
employment and economic development shall
forgive the loan after verification that the
project has satisfied performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.
new text end

new text begin (3) Of the amount appropriated in fiscal year
2018, $700,000 is for a loan to extend an
effluent pipe that will deliver wastewater to
an innovative waste-to-biofuel project
investing a minimum of $150,000,000 and
constructing a facility that is designed to
process approximately 400,000 tons of waste
annually. Loan funds are available until June
30, 2021.
new text end

new text begin (c)(1) $5,000,000 each year is for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses. This
appropriation is available until expended. In
fiscal year 2020 and beyond the base amount
is $6,500,000.
new text end

new text begin (2) Notwithstanding Minnesota Statutes,
section 116J.8748, for applications in fiscal
years 2018 and 2019, the only businesses
eligible to enter the program under section
116J.8748 are those located in counties in
which the average unemployment rate for the
prior 12 months is equal to or greater than the
state average for the same 12 months, as
determined by the commissioner of
employment and economic development.
new text end

new text begin (d) $1,272,000 in fiscal year 2018 and
$2,272,000 in fiscal year 2019 are for
contaminated site cleanup and development
grants under Minnesota Statutes, sections
116J.551 to 116J.558. This appropriation is
available until expended. In fiscal year 2020
and beyond, the base amount is $1,272,000.
new text end

new text begin (e) $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 (f) $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 June 30, 2021.
new text end

new text begin (g) $163,000 each year is 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 (h) $750,000 each year is 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 June 30, 2021.
new text end

new text begin (i) $875,000 each year is for the Host
Community Economic Development Program
established in Minnesota Statutes, section
116J.548.
new text end

new text begin (j) $300,000 each year is for grants to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.
new text end

new text begin (k)(1) $2,300,000 the first year and $1,300,000
the second year are for the greater Minnesota
business development public infrastructure
grant program under Minnesota Statutes,
section 116J.431. This appropriation is
available until spent. Funds available under
this paragraph may be used for site preparation
of property owned and to be used by private
entities.
new text end

new text begin (2) Of the amount appropriated in fiscal year
2018, $1,000,000 is for a grant to the city of
Thief River Falls to support utility extensions,
roads, and other public improvements related
to the construction of a wholesale electronic
component distribution center at least 700,000
square feet in size and investing a minimum
of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is
not required. Grant funds are available from
July 1, 2017, to June 30, 2021.
new text end

new text begin (l)(1) $500,000 in fiscal year 2018 is for grants
to local communities to increase the supply of
quality child care providers in order to support
economic development. At least 60 percent of
grant funds must go to communities located
outside of the seven-county metropolitan area,
as defined under Minnesota Statutes, section
473.121, subdivision 2. Grant recipients must
obtain a 50 percent nonstate match to grant
funds in either cash or in-kind contributions.
Grant funds available under this paragraph
must be used 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 expansion, training,
facility modifications or improvements
required for licensing, and assistance with
licensing and other regulatory requirements.
In awarding grants, the commissioner must
give priority to communities that have
documented a shortage of child care providers
in the area.
new text end

new text begin (2) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of local funds invested.
new text end

new text begin (3) By January 1 of each year, starting in 2019,
the commissioner must report to the standing
committees of the legislature having
jurisdiction over child care and economic
development on the outcomes of the program
to date.
new text end

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

new text begin (n) $1,175,000 each year is for grants 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.
new text end

new text begin (o) $125,000 each year is for grants 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.
new text end

new text begin (p) $1,375,000 in fiscal year 2018 and
$1,575,000 in fiscal year 2019 are for grants
to Enterprise Minnesota, Inc.
new text end

new text begin (q) $250,000 in fiscal year 2018 is for a grant
to the Minnesota Design Center at the
University of Minnesota for the greater
Minnesota community design pilot project.
new text end

new text begin (r) $225,000 in fiscal year 2018 is for a grant
to WomenVenture to provide business
training, mentoring, technical assistance, and
loans in order to establish two pilot
women-run cooperative child care businesses
in low-income urban areas. The commissioner
shall report data on outcomes and
recommendations for replication of this pilot
program throughout Minnesota to the governor
and the legislative committees with
jurisdiction over child care by January 31,
2020. Funds are available until June 30, 2019.
new text end

new text begin (s) $125,000 in fiscal year 2018 is for a grant
to WomenVenture to operate a business
training program for child care providers and
to create materials that could be used, free of
charge, for start-up, expansion, and operation
of child care businesses statewide, with the
goal of helping new and existing child care
businesses in underserved areas of the state
become profitable and sustainable. The
commissioner shall report data on outcomes
and recommendations for replication of this
training program throughout Minnesota to the
governor and the committees of the house of
representatives and the senate with jurisdiction
over child care by December 15, 2019. Funds
are available until June 30, 2019.
new text end

new text begin (t)(1) $125,000 each year is for small business
development center (SBDC) services to
support business transition planning. In fiscal
year 2020 and beyond, the base amount is $0.
For purposes of this paragraph, business
transition planning includes, but is not limited
to:
new text end

new text begin (i) succession planning for next generation
proprietors. For purposes of this item, next
generation proprietors do not include
immediate family members of the current
business owner;
new text end

new text begin (ii) providing business owners seeking to sell
existing businesses and aspiring business
owners with a venue and opportunity to
exchange information. Such services under
this clause may be targeted to small businesses
located in economically disadvantaged
communities or areas of declining population.
For purposes of this item, "economically
disadvantaged communities" means
communities in which average household
income is less than 80 percent of statewide
median household income as measured by the
United States Census Bureau; or communities
that contain two or more contiguous census
tracts in which average household income is
less than 80 percent of the statewide median
household income as measured by the United
States Census Bureau; and
new text end

new text begin (iii) providing information and counseling
services to business owners, prospective
owners, and others regarding the importance
of business transition and succession planning,
the transition and succession process, and
financing options and requirements related to
the business transition and succession process.
new text end

new text begin (2) Funds available under this paragraph may
be used to:
new text end

new text begin (i) provide the necessary information and
services under clause (1);
new text end

new text begin (ii) build small business development center
staff capacity to provide business transition
and succession planning services; and
new text end

new text begin (iii) match funds under the federal Small
Business Development Center Program under
United States Code, title 15, section 648, and
other federal, state, or local funds available
for the purposes of this paragraph.
new text end

new text begin (u) $350,000 in fiscal year 2018 is for a grant
to the Hallie Q. Brown Community Center,
Inc., for youth intervention services through
the community ambassadors and youth
employment program.
new text end

new text begin (v)(1) $500,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is onetime and is
available until June 30, 2021. The
appropriation shall fund the work of African
Economic Development Solutions, the Asian
Economic Development Association, the
Dayton's Bluff Community Council, and the
Latino Economic Development Center in a
collaborative approach to economic
development that is effective with smaller,
culturally diverse communities that seek to
increase the productivity and success of new
immigrant and minority populations living
and working in the community. Programs shall
provide minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.
new text end

new text begin (2) In fiscal year 2019 ESEC shall use funds
to share its integrated service model and
evolving collaboration principles with civic
and economic development leaders in greater
Minnesota communities which have diverse
populations similar to the East Side of St. Paul.
ESEC shall submit a report of activities and
program outcomes, including quantifiable
measures of success, annually to the house of
representatives and senate committees with
jurisdiction over economic development.
new text end

new text begin (w) $100,000 in fiscal year 2018 is for a grant
to the city of Virginia to be used for grants to
city businesses for infrastructure revitalization
and code compliance. In making grants, the
city must give preference to projects that
promote economic development and that
include private dollar contributions.
new text end

new text begin (x) In fiscal year 2020 and beyond, the base
amount for the rural agriculture diversification
initiative under Minnesota Statutes, section
116J.6582, is $5,000,000.
new text end

new text begin (y) $50,000 in fiscal year 2018 is from the
workforce development fund for a grant to
Fighting Chance for behavioral intervention
programs for at-risk youth.
new text end

new text begin (z) $1,000,000 each year is for the central
Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. These appropriations are available
until June 30, 2022. Starting in fiscal year
2020, the base amount for this program shall
be $0.
new text end

new text begin (aa) $75,000 each year is for grants to the
state's recipient of funding from the Federal
and State Technology (FAST) Partnership
Program to strengthen the technological
competitiveness of small businesses.
new text end

new text begin (bb) $900,000 each year is from the workforce
development fund and $461,000 in fiscal year
2018 and $1,461,000 in fiscal year 2019 are
for job training grants under Minnesota
Statutes, section 116L.42.
new text end

new text begin (cc) $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 June 30, 2021.
new text end

new text begin (dd) $350,000 in fiscal year 2018 is from the
energy fund account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for a grant to the
East Phillips Improvement Coalition to create
the East Phillips Neighborhood Institute
(EPNI) to expand culturally tailored resources
that address small business growth and job
creation. The grant shall fund the collaborative
work of Tamales y Bicicletas, Little Earth of
the United Tribes, a nonprofit serving East
Africans, and other coalition members towards
developing EPNI as a community space to
host activities including, but not limited to,
creation and expansion of small businesses,
culturally specific entrepreneurial activities,
indoor urban farming, job training, education,
and skills development. Eligible uses for grant
funds include, but are not limited to, planning
and start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. Funds
are available until June 30, 2020.
new text end

new text begin (ee) $2,000,000 in fiscal year 2018 is from the
energy fund account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for a grant to the city
of Duluth to upgrade the municipal district
heating facility and systems, including
conversion of the distribution system along
Superior Street from steam with no condensate
return to closed-loop hot water. This
appropriation is for one or more of the project
elements or phases: predesign, design,
engineering, renovation, construction,
furnishing, and equipping the facility, systems,
and infrastructure.
new text end

new text begin (ff) $5,000,000 in fiscal year 2018 is from the
energy fund account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for a grant to Dakota
County under Minnesota Statutes, sections
103G.511 and 103G.515, to design and
construct capital improvements to the
hydroelectric generating facility, including
replacement of obsolete turbines, at the
Byllesby Dam, located on the Cannon River.
new text end

new text begin Subd. 3. new text end

new text begin Workforce Development
new text end

new text begin 31,829,000
new text end
new text begin 30,829,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 14,412,000
new text end
new text begin 13,475,000
new text end
new text begin Workforce
Development
new text end
new text begin 17,417,000
new text end
new text begin 17,417,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $773,000 in fiscal
year 2018 and $780,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 16.1 full-time
equivalent positions in fiscal year 2018 and
16.1 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $600,000 each year is for performance
grants under Minnesota Statutes, section
116J.8747, to Twin Cities R!SE to provide
training to hard-to-train individuals.
new text end

new text begin (c) $250,000 each year is for pilot programs
in the workforce service areas to combine
career and higher education advising.
new text end

new text begin (d) $500,000 each year is for rural career
counseling coordinator positions in the
workforce service areas and for the purposes
specified in Minnesota Statutes, section
116L.667. The commissioner of employment
and economic development, in consultation
with local workforce investment boards and
local elected officials in each of the service
areas receiving funds, shall develop a method
of distributing funds to provide equitable
services across workforce service areas.
new text end

new text begin (e) $1,000,000 each year is for grants 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. 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 (f) $5,000,000 each year is for the Pathways
to Prosperity adult workforce development
competitive grant program. Of this amount,
up to three percent is for administration and
monitoring of the program. When awarding
grants under this paragraph, the commissioner
of employment and economic development
may give preference to any previous grantee
with demonstrated success in job training and
placement for hard-to-train individuals. Grants
may be used for:
new text end

new text begin (1) competitive 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;
new text end

new text begin (2) the high-wage, high-demand,
nontraditional jobs grant program under
Minnesota Statutes, section 116L.99;
new text end

new text begin (3) the youth-at-work competitive grant
program under Minnesota Statutes, section
116L.562, subdivision 3;
new text end

new text begin (4) the Minnesota emerging entrepreneur
program under Minnesota Statutes, section
116M.18;
new text end

new text begin (5) the capacity building grant program to
assist nonprofit organizations offering or
seeking to offer workforce development and
economic development programming; and
new text end

new text begin (6) competitive 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 clause
must focus on low-income communities,
young adults from families with a history of
intergenerational poverty, and communities
of color.
new text end

new text begin (g) $250,000 each year is for grants to YWCA
St. Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling.
new text end

new text begin (h) $1,000,000 each year is for grants 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.
new text end

new text begin (i) $1,000,000 each year is for grants to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment.
new text end

new text begin (j) $750,000 each year is for grants 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.
new text end

new text begin (k) $250,000 each year is for grants 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. 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 (l) $600,000 each year is for grants to Ujamaa
Place for job training, employment
preparation, internships, education, training
in the construction trades, housing, and
organizational capacity building.
new text end

new text begin (m) $375,000 each year is for grants to the
YWCA of Minneapolis to provide
economically challenged individuals the job
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.
new text end

new text begin (n) $250,000 in fiscal year 2018 is for a grant
to the Bois Forte Tribal Employment Rights
Office for an American Indian workforce
development training pilot project.
new text end

new text begin (o) $750,000 each year is for grants to Summit
Academy OIC to expand their contextualized
GED and employment placement program.
new text end

new text begin (p) $600,000 in fiscal year 2018 and $750,000
in fiscal year 2019 are for grants to Goodwill
Easter Seals Minnesota and its partners. The
grant shall be used to continue the FATHER
Project in Rochester, Park Rapids, St. Cloud,
Minneapolis, and the surrounding areas to
assist fathers in overcoming barriers that
prevent fathers from supporting their children
economically and emotionally.
new text end

new text begin (q) $200,000 each year is for displaced
homemaker programs under Minnesota
Statutes, section 116L.96. The commissioner,
through the adult career pathways program,
shall distribute the funds to existing nonprofit
and state displaced homemaker programs. In
fiscal year 2020 and beyond, the base amount
is $0.
new text end

new text begin (r) $190,000 in fiscal year 2018 is for transfer
to the Cook County Higher Education Board
to provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This amount is in
addition to other funds previously transferred
by the commissioner.
new text end

new text begin (s)(1) $150,000 in fiscal year 2018 is for a
grant to Anoka County to develop and
implement a pilot program to increase
competitive employment opportunities for
transition-age youth ages 18 to 21.
new text end

new text begin (2) The competitive employment for
transition-age youth pilot program shall
include career guidance components, including
health and life skills, to encourage, train, and
assist transition-age youth in job-seeking
skills, workplace orientation, and job site
knowledge.
new text end

new text begin (3) In operating the pilot program, Anoka
County shall collaborate with schools,
disability providers, jobs and training
organizations, vocational rehabilitation
providers, and employers to build upon
opportunities and services, to prepare
transition-age youth for competitive
employment, and to enhance employer
connections that lead to employment for the
individuals served.
new text end

new text begin (4) Grant funds may be used to create an
on-the-job training incentive to encourage
employers to hire and train qualifying
individuals. A participating employer may
receive up to 50 percent of the wages paid to
the employee as a cost reimbursement for
on-the-job training provided.
new text end

new text begin (t) $497,000 in fiscal year 2018 is for grants
to Twin Cities R!SE, in collaboration with
Metro Transit and Hennepin Technical College
for the Metro Transit technician training
program. Funds are available until June 30,
2020.
new text end

new text begin (u) $200,000 each year is for grants to the
Minnesota Alliance of Boys and Girls Clubs
to administer a statewide project of youth job
skills and career development. This project,
which may have career guidance components
including health and life skills, is designed to
encourage, train, and assist youth in early
access to education and job-seeking skills,
work-based learning experience including
career pathways in STEM learning, career
exploration and matching, and first job
placement through local community
partnerships and on-site job opportunities. This
grant requires a 25 percent match from
nonstate resources. In fiscal year 2020 and
beyond, the base amount is $0.
new text end

new text begin (v) $1,500,000 each year is from the
workforce development fund for grants to
FastTRAC - Minnesota Adult Careers
Pathways Program. Up to five percent of this
appropriation may be used to provide
leadership, oversight, and technical assistance
services for low-skilled, low-income adults.
new text end

new text begin (w) $150,000 each year is from the workforce
development fund for grants to the YWCA of
Minneapolis to provide economically
challenged individuals the job 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.
new text end

new text begin (x) $3,104,000 each year is from the
workforce development fund for the adult
workforce development competitive grant
program. Of this amount, up to three percent
is for administration and monitoring of the
adult workforce 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 (y) $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, to
provide employment and career advising to
youth, including career guidance in secondary
schools, to address the youth career advising
deficiency, to carry out activities outlined in
Minnesota Statutes, section 116L.561, to
provide support services, and to provide work
experience to youth in the workforce service
areas. The funds in this paragraph may be used
for expansion of the pilot program combining
career and higher education advising in Laws
2013, chapter 85, article 3, section 27.
Activities in workforce services areas under
this paragraph may serve all youth up to age
24.
new text end

new text begin (z) $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 (aa) $450,000 each year is from the workforce
development fund for grants to Minnesota
Diversified Industries, Inc., to provide
progressive development and employment
opportunities for people with disabilities.
new text end

new text begin (bb) $3,348,000 each year is from the
workforce development fund for the "Youth
at Work" youth workforce development
competitive grant program. 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.
new text end

new text begin (cc) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs.
new text end

new text begin (dd) $750,000 each year is from the workforce
development fund for grants to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills
development. This project, which may have
career guidance components, including health
and life skills, is to encourage, train, and assist
youth in job-seeking skills, workplace
orientation, and job-site knowledge through
coaching. This grant requires a 25 percent
match from nonstate resources.
new text end

new text begin (ee) $215,000 each year is from the workforce
development fund for grants to Big Brothers,
Big Sisters of the Greater Twin Cities for
workforce readiness, employment exploration,
and skills development for youth ages 12 to
21. The grant must serve youth in the Twin
Cities, Central Minnesota, and Southern
Minnesota Big Brothers, Big Sisters chapters.
new text end

new text begin (ff) $1,350,000 each year is from the
workforce development fund for grants to the
Minnesota High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two- and
four-year college students and graduate
students in their field of study. The internship
opportunities must match students with paid
internships within STEM disciplines at small,
for-profit companies located in Minnesota,
having fewer than 250 employees worldwide.
At least 300 students must be matched in the
first year and at least 350 students must be
matched in the second year. No more than 15
percent of the hires may be graduate students.
Selected hiring companies shall receive from
the grant 50 percent of the wages paid to the
intern, capped at $2,500 per intern. The
program must work toward increasing the
participation among women or other
underserved populations.
new text end

new text begin (gg) $500,000 each year is from the workforce
development fund for grants to Resource, Inc.
to provide low-income individuals career
education and job skills training that are fully
integrated with chemical and mental health
services.
new text end

new text begin (hh) $500,000 each year is from the workforce
development fund for rural career counseling
coordinator positions in the workforce service
areas and for the purposes specified in
Minnesota Statutes, section 116L.667. The
commissioner of employment and economic
development, in consultation with local
workforce investment boards and local elected
officials in each of the service areas receiving
funds, shall develop a method of distributing
funds to provide equitable services across
workforce service areas.
new text end

new text begin Subd. 4. new text end

new text begin General Support Services
new text end

new text begin 2,670,000
new text end
new text begin 2,670,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin 2,653,000
new text end
new text begin 2,653,000
new text end
new text begin Workforce
Development
new text end
new text begin 17,000
new text end
new text begin 17,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $1,027,000 in fiscal
year 2018 and $1,027,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 9.7 full-time
equivalent positions in fiscal year 2018 and
9.7 full-time equivalent positions in fiscal year
2019.
new text end

new text begin (b) $1,269,000 each year is for operating the
Olmstead Implementation Office.
new text end

new text begin Subd. 5. new text end

new text begin Minnesota Trade Office
new text end

new text begin 1,762,000
new text end
new text begin 1,762,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $1,319,000 in fiscal
year 2018 and $1,332,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 12.9 full-time
equivalent positions in fiscal year 2018 and
12.9 full-time equivalent positions in fiscal
year 2019.
new text end

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

new text begin Subd. 6. new text end

new text begin Vocational Rehabilitation
new text end

new text begin 30,191,000
new text end
new text begin 30,191,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 22,361,000
new text end
new text begin 22,361,000
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) Of the amounts appropriated in this
subdivision, no more than $524,000 in fiscal
year 2018 and $524,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 5.1 full-time
equivalent positions in fiscal year 2018 and
5.1 full-time equivalent positions in fiscal year
2019.
new text end

new text begin (b) $10,800,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A.
new text end

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

new text begin (d) $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 (e) $5,995,000 each year from the general fund
and $6,830,000 each year from the workforce
development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.
new text end

new text begin (f) $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-age
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.
new text end

new text begin Subd. 7. new text end

new text begin Competitive Grant Limitations
new text end

new text begin An organization that receives a direct
appropriation under this section is not eligible
to participate in competitive grant programs
under this section, either directly or by
receiving funds from a third party that received
a competitive grant under this section, during
the fiscal years in which the direct
appropriations are received.
new text end

new text begin Subd. 8. 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 Of the amounts appropriated in this
subdivision, no more than $3,209,000 in fiscal
year 2018 and $3,224,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 45 full-time
equivalent positions in fiscal year 2018 and
45 full-time equivalent positions in fiscal year
2019.
new text end

new text begin Subd. 9. new text end

new text begin Broadband Development
new text end

new text begin 7,250,000
new text end
new text begin 250,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $174,000 in fiscal
year 2018 and $177,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 1.5 full-time
equivalent positions in fiscal year 2018 and
1.5 full-time equivalent positions in fiscal year
2019.
new text end

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

new text begin (c) $7,000,000 in fiscal year 2018 is for
deposit in the border-to-border broadband fund
account in the special revenue fund established
under Minnesota Statutes, section 116J.396.
new text end

Sec. 3. new text beginHOUSING 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 56,798,000
new text end
new text begin $
new text end
new text begin 39,873,000
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 18,925,000
new text end
new text begin 2,000,000
new text end

new text begin (a) Beginning in fiscal year 2020, the base
amount for the challenge program is
$11,717,000.
new text end

new text begin (b) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
The agency must continue to strengthen its
efforts to address the disparity rate between
white households and indigenous American
Indians and communities of color. Of this
amount, $1,208,000 in fiscal year 2018 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 fiscal year
2018 shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.
In fiscal year 2020 and beyond, the base
amount is $1,208,000.
new text end

new text begin (c) $4,000,000 in fiscal year 2018 is for the
purposes of the workforce housing
development program under Minnesota
Statutes, section 462A.39. In fiscal year 2020
and beyond, the base amount is $0.
new text end

new text begin (d) $250,000 each year is for grants to
programs under Minnesota Statutes, section
462A.204, subdivision 8. In fiscal year 2020
and beyond, the base amount is $250,000.
new text end

new text begin (e) $1,750,000 each year is to the housing trust
fund for the rental assistance to highly mobile
students program under Minnesota Statutes,
section 462A.201, subdivision 2, paragraph
(a), clause (4). In fiscal year 2020 and beyond,
the base amount is $1,750,000.
new text end

new text begin Subd. 3. new text end

new text begin Housing Trust Fund
new text end

new text begin 11,471,000
new text end
new text begin 11,471,000
new text end

new text begin This appropriation is for deposit in the housing
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. 4. new text end

new text begin Rental Assistance for Mentally Ill
new text end

new text begin 4,088,000
new text end
new text begin 4,088,000
new text end

new text begin This appropriation is for the rental housing
assistance program 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. 5. new text end

new text begin Family Homeless Prevention
new text end

new text begin 8,519,000
new text end
new text begin 8,519,000
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. 6. 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.
new text end

new text begin Subd. 7. 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. For purposes of this subdivision,
"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. 8. new text end

new text begin Housing Rehabilitation
new text end

new text begin 6,515,000
new text end
new text begin 6,515,000
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, $2,772,000 each year is for the
rehabilitation of owner-occupied housing,
$3,743,000 each year is for the rehabilitation
of eligible rental housing, and $1,000,000 in
fiscal year 2018 is prioritized to complete
interim controls or lead abatement measures
to reduce the risk of lead exposure in rental
housing statewide. Any funds not committed
in the first 11 months of 2018 shall be
available for any eligible activity under this
section. 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.
new text end

new text begin Subd. 9. 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.
Priority may be given to funding programs
that are aimed at culturally specific groups
who are providing services to members of their
communities.
new text end

new text begin Subd. 10. new text end

new text begin Capacity Building Grants
new text end

new text begin 875,000
new text end
new text begin 875,000
new text end

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

new text begin (1) $125,000 each year is for support of the
Homeless Management Information System
(HMIS); and
new text end

new text begin (2) $500,000 each year is for grants to Build
Wealth MN to provide a family stabilization
plan program including program outreach,
financial literacy education, and budget and
debt counseling.
new text end

Sec. 4. new text beginDEPARTMENT 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 27,934,000
new text end
new text begin $
new text end
new text begin 27,934,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2018
new text end
new text begin 2019
new text end
new text begin General
new text end
new text begin 1,652,000
new text end
new text begin 1,652,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 24,975,000
new text end
new text begin 24,975,000
new text end
new text begin Workforce
Development
new text end
new text begin 1,307,000
new text end
new text begin 1,307,000
new text end

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

new text begin (b) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of labor
and industry must not allow transfers of
money appropriated in this section between
divisions or programs of the Department of
Labor and Industry.
new text end

new text begin (c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of labor and industry must not
allow billing between divisions or programs
within the Department of Labor and Industry,
or otherwise use any "Internal Billing
Expenditures."
new text end

new text begin (d) Notwithstanding Minnesota Statutes,
sections 16B.37, subdivision 4, and 471.59,
except for work performed by MN.IT under
Minnesota Statutes, chapter 16E, the
commissioner of labor and industry must not
allow billing or transfers between other
executive branch agencies or departments and
the Department of Labor and Industry.
new text end

new text begin Subd. 2. new text end

new text begin Workers' Compensation
new text end

new text begin 14,782,000
new text end
new text begin 14,782,000
new text end

new text begin (a) This appropriation is from the workers'
compensation fund. Of the amount
appropriated, no more than $10,560,000 in
fiscal year 2018 and $10,560,000 in fiscal year
2019 may be expended on full-time equivalent
positions, totaling no more than 109.6
full-time equivalent positions in fiscal year
2018 and 109.6 full-time equivalent positions
in fiscal year 2019.
new text end

new text begin (b)(1) $3,000,000 each year is for workers'
compensation system upgrades. This amount
is available until June 30, 2021. The base
amount for fiscal year 2020 and beyond is $0.
new text end

new text begin (2) This appropriation includes funds for
information technology project services and
support subject to the provisions of 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 2,759,000
new text end
new text begin 2,759,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 1,452,000
new text end
new text begin 1,452,000
new text end
new text begin Workforce
Development
new text end
new text begin 1,307,000
new text end
new text begin 1,307,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $2,234,000 in fiscal
year 2018 and $2,238,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 21.7 full-time
equivalent positions in fiscal year 2018 and
19.7 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $1,202,000 each year is from the general
fund for the labor standards and apprenticeship
program.
new text end

new text begin (c) $125,000 each year is from the general
fund for wage theft prevention under the
division of labor standards.
new text end

new text begin (d) $1,029,000 each year is from the
workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178.
new text end

new text begin (e) $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.
new text end

new text begin (f) $150,000 each year is from the workforce
development fund for prevailing wage
enforcement.
new text end

new text begin Subd. 4. new text end

new text begin Workplace Safety
new text end

new text begin 4,154,000
new text end
new text begin 4,154,000
new text end

new text begin This appropriation is from the workers'
compensation fund. Of the amount
appropriated, not more than $3,320,000 in
fiscal year 2018 and $3,320,000 in fiscal year
2019 may be expended on full-time equivalent
positions, totaling no more than 82.6 full-time
equivalent positions in fiscal year 2018 and
82.6 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin Subd. 5. new text end

new text begin General Support
new text end

new text begin 6,239,000
new text end
new text begin 6,239,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin 200,000
new text end
new text begin 200,000
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 (a) Of the amount appropriated in this
subdivision, no more than $3,148,000 in fiscal
year 2018 and $3,234,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 57.1 full-time
equivalent positions in fiscal year 2018 and
57.1 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) Except as provided in paragraph (c), this
appropriation is from the workers'
compensation fund.
new text end

new text begin (c) $200,000 each year is from the general
fund for grants to the Construction Careers
Foundation Inc. for the Helmets to Hardhats
Minnesota Initiative. Grant funds must be used
to recruit, retain, assist, and support National
Guard, reserve, active duty military members,
and veteran's participation into apprenticeship
programs registered with the Department of
Labor and Industry and connect them with
career training and employment in the building
and construction industry. The recruitment,
selection, employment, and training must be
without discrimination due to race, color,
creed, religion, national origin, sex, sexual
orientation, marital status, physical or mental
disability, receipt of public assistance, or age.
new text end

Sec. 5. new text beginBUREAU OF MEDIATION SERVICES
new text end

new text begin $
new text end
new text begin 1,853,000
new text end
new text begin $
new text end
new text begin 1,853,000
new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of
mediation services must not allow transfers
of money appropriated in this section between
divisions or programs of the Bureau of
Mediation Services.
new text end

new text begin (b) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of mediation services must not
allow billing between divisions or programs
within the Bureau of Mediation Services, or
otherwise use any "Internal Billing
Expenditures."
new text end

new text begin (c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, and Minnesota
Statutes, section 471.59, except for work
performed by MN.IT under Minnesota
Statutes, chapter 16E, the commissioner of
mediation services must not allow billing or
transfers between other executive branch
agencies or departments and the Bureau of
Mediation Services.
new text end

new text begin (d) Of the amounts appropriated in this
section, no more than $1,639,000 in fiscal year
2018 and $1,639,000 in fiscal year 2019 may
be expended on full-time equivalent positions,
totaling no more than 15.1 full-time equivalent
positions in fiscal year 2018 and 15.1 full-time
equivalent positions in fiscal year 2019.
new text end

new text begin (e) $68,0000 each year is from the general
fund 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

Sec. 6. new text beginWORKERS' COMPENSATION COURT
OF APPEALS
new text end

new text begin $
new text end
new text begin 1,913,000
new text end
new text begin $
new text end
new text begin 1,913,000
new text end

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

new text begin (b) Of the amounts appropriated in this
section, no more than $1,683,000 in fiscal year
2018 and $1,683,000 in fiscal year 2019 may
be expended on full-time equivalent positions,
totaling no more than 12 full-time equivalent
positions in fiscal year 2018 and 12 full-time
equivalent positions in fiscal year 2019.
new text end

Sec. 7. new text beginDEPARTMENT 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 30,175,000
new text end
new text begin $
new text end
new text begin 30,050,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 27,032,000
new text end
new text begin 26,707,000
new text end
new text begin Special Revenue
new text end
new text begin 1,340,000
new text end
new text begin 1,540,000
new text end
new text begin Petroleum Tank
new text end
new text begin 1,052,000
new text end
new text begin 1,052,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 751,000
new text end
new text begin 751,000
new text end

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

new text begin (b) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of
commerce must not allow transfers of money
appropriated in this section between divisions
or programs of the Department of Commerce.
new text end

new text begin (c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of commerce must not allow
billing between divisions or programs within
the Department of Commerce, or otherwise
use any "Internal Billing Expenditures."
new text end

new text begin (d) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, and Minnesota
Statutes, section 471.59, except for work
performed by MN.IT under Minnesota
Statutes, chapter 16E, the commissioner of
commerce must not allow billing or transfers
between other executive branch agencies or
departments and the Department of
Commerce.
new text end

new text begin Subd. 2. new text end

new text begin Financial Institutions
new text end

new text begin 5,285,000
new text end
new text begin 5,410,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $4,343,000 in fiscal
year 2018 and $4,343,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 45.3 full-time
equivalent positions in fiscal year 2018 and
45.3 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $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 build savings, strengthen credit,
and provide services to assist them in being
more financially stable and secure. Grants
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 1,052,000
new text end
new text begin 1,052,000
new text end

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

new text begin (b) Of the amounts appropriated in this
subdivision, no more than $710,000 in fiscal
year 2018 and $710,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 6.9 full-time
equivalent positions in fiscal year 2018 and
6.9 full-time equivalent positions in fiscal year
2019.
new text end

new text begin Subd. 4. new text end

new text begin Administrative Services
new text end

new text begin 7,603,000
new text end
new text begin 7,353,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 7,353,000
new text end
new text begin 7,103,000
new text end
new text begin Special Revenue
new text end
new text begin 250,000
new text end
new text begin 250,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $4,709,000 in fiscal
year 2018 and $4,709,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 49.9 full-time
equivalent positions in fiscal year 2018 and
49.9 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $625,000 in fiscal year 2018 and $375,000
in fiscal year 2019 are to fund Minnesota
Statutes, section 345.42, subdivision 1a,
paragraph (b).
new text end

new text begin (c) $33,000 each year is for rulemaking and
administration under Minnesota Statutes,
section 80A.461.
new text end

new text begin (d) $250,000 each year is from the energy fund
account in the special revenue fund established
in Minnesota Statutes, section 116C.779,
subdivision 1, for transfer to the Board of
Regents of the University of Minnesota for
operations and maintenance of the Natural
Resources Research Institute at the University
of Minnesota Duluth. The funds shall be used
for operations, maintenance, research, and
staff support to strengthen applied research
activities and accelerate innovation and
economic development in key areas such as
minerals, mining and water, energy and the
environment, and forest products and
bioeconomy. In fiscal year 2020 and beyond,
the base amount is $0.
new text end

new text begin Subd. 5. new text end

new text begin Telecommunications
new text end

new text begin 2,219,000
new text end
new text begin 2,219,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 979,000
new text end
new text begin 979,000
new text end
new text begin Special Revenue
new text end
new text begin 1,240,000
new text end
new text begin 1,240,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $759,000 in fiscal
year 2018 and $759,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than seven
full-time equivalent positions in fiscal year
2018 and seven full-time equivalent positions
in fiscal year 2019.
new text end

new text begin (b) $1,610,000 each year is from the
telecommunication access fund for the
following transfers. This appropriation is
added to the department's base.
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 Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans;
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. This transfer is subject
to Minnesota Statutes, section 16A.281; 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 5,299,000
new text end
new text begin 5,099,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 5,101,000
new text end
new text begin 4,901,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 198,000
new text end
new text begin 198,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $4,732,000 in fiscal
year 2018 and $4,732,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 48.5 full-time
equivalent positions in fiscal year 2018 and
48.5 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $279,000 each year is for health care
enforcement.
new text end

new text begin (c)(1) $200,000 in fiscal year 2018 is to create
and execute a statewide education and
outreach campaign to protect seniors, meaning
those 60 years of age or older, vulnerable
adults, as defined in Minnesota Statutes,
section 626.5572, subdivision 21, and their
caregivers from financial fraud and
exploitation.
new text end

new text begin (2) The education and outreach campaign must
be statewide, and must include, but is not
limited to, 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 (3) The commissioner of commerce shall
report by January 15, 2018, to the chairs and
ranking minority members of the committees
of the house of representatives and senate
having jurisdiction over commerce issues
regarding the results of the statewide education
and outreach campaign, and recommendations
for supporting ongoing efforts to prevent
financial fraud from occurring to, and the
financial exploitation of, seniors, vulnerable
adults, and their caregivers.
new text end

new text begin Subd. 7. new text end

new text begin Energy Resources
new text end

new text begin 4,099,000
new text end
new text begin 4,299,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 3,999,000
new text end
new text begin 3,999,000
new text end
new text begin Special Revenue
new text end
new text begin 100,000
new text end
new text begin 300,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $3,689,000 in fiscal
year 2018 and $3,689,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 26.8 full-time
equivalent positions in fiscal year 2018 and
26.8 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $430,000 each year is for costs associated
with competitive rates for energy-intensive,
trade-exposed electric utility customers. All
general fund appropriations for costs
associated with competitive rates for
energy-intensive, trade-exposed electric utility
customers are recovered through assessments
under Minnesota Statutes, section 216B.62.
new text end

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

new text begin (d) $200,000 in fiscal year 2019 is to
remediate 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. This is a onetime
appropriation.
new text end

new text begin (e) $100,000 each year is from the energy fund
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 energy fund account at the
end of the biennium.
new text end

new text begin Subd. 8. new text end

new text begin Insurance
new text end

new text begin 4,868,000
new text end
new text begin 4,868,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 4,315,000
new text end
new text begin 4,315,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 553,000
new text end
new text begin 553,000
new text end

new text begin (a) Of the amounts appropriated in this
subdivision, no more than $4,431,000 in fiscal
year 2018 and $4,431,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 37.3 full-time
equivalent positions in fiscal year 2018 and
37.3 full-time equivalent positions in fiscal
year 2019.
new text end

new text begin (b) $642,000 each year is for health insurance
rate review staffing.
new text end

new text begin (c) $412,000 each year is for actuarial work
to prepare for implementation of
principle-based reserves.
new text end

Sec. 8. new text beginPUBLIC UTILITIES COMMISSION
new text end

new text begin $
new text end
new text begin 7,242,000
new text end
new text begin $
new text end
new text begin 7,242,000
new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 16A.285, the Public Utilities
Commission and its members must not allow
transfers of money appropriated in this section
between divisions or programs of the Public
Utilities Commission.
new text end

new text begin (b) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the Public
Utilities Commission and its members must
not allow billing between divisions or
programs within the Public Utilities
Commission, or otherwise use any "Internal
Billing Expenditures."
new text end

new text begin (c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, and section
471.59, or any other law to the contrary,
except for work performed by MN.IT, under
Minnesota Statutes, chapter 16E, the Public
Utilities Commission and its members must
not allow billing or transfers between other
executive branch agencies or departments and
the Public Utilities Commission.
new text end

new text begin (d) Of the amount appropriated in this section,
no more than $6,072,000 in fiscal year 2018
and $6,072,000 in fiscal year 2019 may be
expended on full-time equivalent positions,
totaling no more than 55 full-time equivalent
positions in fiscal year 2018 and 55 full-time
equivalent positions in fiscal year 2019.
new text end

new text begin (e) $21,000 each year is for the purposes of
Minnesota Statutes, section 237.045.
new text end

Sec. 9. new text beginPUBLIC FACILITIES AUTHORITY
new text end

new text begin $
new text end
new text begin 7,450,000
new text end
new text begin $
new text end
new text begin 0
new text end

new text begin (a) $300,000 in fiscal year 2018 is for a grant
to the city of New Trier to replace water
infrastructure under Hogan Avenue, including
related road reconstruction, and to acquire land
for predesign, design, and construction of a
storm water pond that will be colocated with
the pond of the new subdivision. This
appropriation does not require a nonstate
contribution.
new text end

new text begin (b) $3,500,000 in fiscal year 2018 is for a
grant for land acquisition, design, engineering,
and construction of facilities and infrastructure
necessary for Phase 3 of the Lewis and Clark
Regional Water System project. Phase 3
includes extension of the project from the
Lincoln-Pipestone Rural Water System
connection near Adrian to Worthington,
construction of a reservoir in Nobles County
and a meter building in Worthington, and
acquisition and installation of a supervisory
control and data acquisition system.
new text end

new text begin (c) $1,200,000 in fiscal year 2018 is for a grant
to the Clear Lake-Clearwater Sewer Authority
to remove and replace the existing wastewater
treatment facility. This project is intended to
prevent the discharge of phosphorus into the
Mississippi River. This appropriation is not
available until the commissioner of
management and budget determines that at
least $200,000 is committed to the project
from nonstate sources and the authority has
applied for at least two grants to offset the
cost. An amount equal to any grant money
received by the authority must be returned to
the general fund.
new text end

new text begin (d) $1,200,000 in fiscal year 2018 is for a
grant to the Ramsey/Washington Recycling
and Energy Board to design, construct, and
equip capital improvements to the
Ramsey/Washington Recycling and Energy
Center in Newport.
new text end

new text begin (e) $750,000 in fiscal year 2018 is for a grant
to the city of Cold Spring to acquire land,
predesign, design, engineer, construct, furnish,
and equip water infrastructure, including
drilling new wells, a water treatment plant,
and piping for water distribution.
new text end

new text begin (f) $500,000 in fiscal year 2018 is for a grant
to the Big Lake Area Sanitary District to
construct a pressure sewer system and force
main to convey sewage to the Western Lake
Superior Sanitary District connection in the
city of Cloquet. This appropriation is in
addition to the appropriation in Laws 2014,
chapter 294, article 1, section 22, subdivision
4.
new text end

Sec. 10. new text beginDEPARTMENT OF IRON RANGE
RESOURCES AND REHABILITATION.
new text end

new text begin $
new text end
new text begin 1,500,000
new text end
new text begin $
new text end
new text begin 0
new text end

new text begin This appropriation is from the energy fund
account in the special revenue fund established
in Minnesota Statutes, section 116C.779,
subdivision 1, for grants for innovative energy
solutions on the Iron Range.
new text end

Sec. 11. new text beginGENERAL FUND TRANSFER TO ENERGY FUND ACCOUNT.
new text end

new text begin The commissioner of management and budget must transfer $500,000 in fiscal year
2018 and $3,500,000 in fiscal year 2019 from the general fund to the energy fund account
in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision
1.
new text end

Sec. 12. new text beginMINNESOTA FILM AND TV BOARD APPROPRIATION
CANCELLATION.
new text end

new text begin All unspent funds, estimated to be $350,000, appropriated for the film production jobs
program under Minnesota Statutes, section 116U.26, under Laws 2016, chapter 189, article
7, section 2, subdivision 2, are canceled to the general fund the day following final enactment
of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

DEPARTMENT OF LABOR AND INDUSTRY POLICY

Section 1.

Minnesota Statutes 2016, section 175.45, is amended to read:


175.45 deleted text beginCOMPETENCYdeleted text end STANDARDS FOR DUAL TRAINING.

Subdivision 1.

Duties; goal.

The commissioner of labor and industry shall new text beginconvene
industry representatives,
new text endidentify new text beginoccupational new text endcompetency standards deleted text beginfor dual trainingdeleted text endnew text begin, and
provide technical assistance to develop dual-training programs
new text end. deleted text beginThe goal of dual training
is to provide employees of an employer with training to acquire competencies that the
employer requires.
deleted text end The new text begincompetency new text endstandards shall be identified for employment in
occupations in advanced manufacturing, health care services, information technology, and
agriculture. Competency standards are not rules and are exempt from the rulemaking
provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do
not apply.

Subd. 2.

deleted text beginDefinition; competency standardsdeleted text endnew text begin Definitionsnew text end.

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

new text begin (1) new text end"competency standards" means the specific knowledge and skills necessary for a
particular occupationdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) "dual-training program" means an employment-based earn-as-you-learn program
where the trainee is employed by a participating employer and receives structured on-the-job
training and technical instruction in accordance with the competency standards.
new text end

Subd. 3.

Competency standards identification process.

In identifying competency
standards, the commissioner shall consult with the commissioner of the Office of Higher
Education and the commissioner of employment and economic development and convene
recognized industry experts, representative employers, higher education institutions,
representatives of the disabled community, and representatives of labor to assist in identifying
credible competency standards. Competency standards must be consistent with, to the extent
available and practical, recognized international and national standards.

Subd. 4.

Duties.

The commissioner shall:

(1) new text beginconvene industry representatives to identify, develop, and implement dual-training
programs;
new text end

new text begin (2) new text endidentify competency standards for deleted text beginentry leveldeleted text endnew text begin entry-levelnew text end and higher skill levels;

deleted text begin (2)deleted text endnew text begin (3)new text end verify the competency standards and skill levels and their transferability by subject
matter expert representatives of each respective industry;

deleted text begin (3)deleted text endnew text begin (4)new text end develop models for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established;

deleted text begin (4)deleted text endnew text begin (5)new text end encourage participation by employers and labor in the new text begincompetency new text endstandard
identification process for occupations in their industry; deleted text beginand
deleted text end

deleted text begin (5)deleted text endnew text begin (6)new text end align deleted text begindual training competency standardsdeleted text endnew text begin dual-training programsnew text end with other
workforce initiativesdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (7) provide technical assistance to develop dual-training programs.
new text end

Subd. 5.

Notification.

The commissioner must communicate identified competency
standards to the commissioner of the Office of Higher Education for the purpose of the deleted text begindual
training
deleted text endnew text begin dual-trainingnew text end competency grant program under section 136A.246. The commissioner
of labor and industry shall maintain the competency standards on the department's Web
site.

Sec. 2.

new text begin [175.46] YOUTH SKILLS TRAINING PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established; grants authorized. new text end

new text begin The commissioner shall
approve youth skills training programs established for the purpose of providing work-based
skills training for student learners ages 16 and older.
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 in this subdivision have
the meanings given.
new text end

new text begin (b) "School district" means a school district or charter school.
new text end

new text begin (c) "Local partnership" means a school district, nonpublic school, intermediate school
district, or postsecondary institution, in partnership with other school districts, nonpublic
schools, intermediate school districts, postsecondary institutions, workforce development
authorities, economic development authorities, nonprofit organizations, labor unions, or
individuals who have an agreement with one or more local employers to be responsible for
implementing and coordinating a local youth skills training program.
new text end

new text begin (d) "Student learner" means a student who is both enrolled in a course of study at a public
or nonpublic school to obtain related instruction for academic credit and is employed under
a written agreement to obtain on-the-job skills training under a youth skills training program
approved under this section.
new text end

new text begin (e) "Commissioner" means the commissioner of labor and industry.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The commissioner shall:
new text end

new text begin (1) approve youth skills training programs in high growth, high demand occupations
that provide:
new text end

new text begin (i) that the work of the student learner in the occupations declared particularly hazardous
shall be incidental to the training;
new text end

new text begin (ii) that the work shall be intermittent and for short periods of time, and under the direct
and close supervision of a qualified and experienced person;
new text end

new text begin (iii) that safety instruction shall be provided to the student learner and may be given by
the school and correlated by the employer with on-the-job training;
new text end

new text begin (iv) a schedule of organized and progressive work processes to be performed on the job;
new text end

new text begin (v) a schedule of wage rates in compliance with section 177.24; and
new text end

new text begin (vi) whether the student learner will obtain secondary school academic credit,
postsecondary credit, or both, for the training program;
new text end

new text begin (2) approve occupations and maintain a list of approved occupations for programs under
this section;
new text end

new text begin (3) work with individuals representing industry and labor to develop new youth skills
training programs;
new text end

new text begin (4) develop model program guides;
new text end

new text begin (5) monitor youth skills training programs;
new text end

new text begin (6) provide technical assistance to local partnership grantees;
new text end

new text begin (7) work with providers to identify paths for receiving postsecondary credit for
participation in the youth skills training program; and
new text end

new text begin (8) approve other activities as necessary to implement the program.
new text end

new text begin (b) The commissioner shall collaborate with stakeholders, including, but not limited to,
representatives of secondary school institutions, career and technical education instructors,
postsecondary institutions, businesses, and labor, in developing youth skills training
programs, and identifying and approving occupations and competencies for youth skills
training programs.
new text end

new text begin Subd. 4. new text end

new text begin Training agreement. new text end

new text begin Each student learner shall sign a written training agreement
on a form prescribed by the commissioner. Each agreement shall contain the name of the
student learner, and be signed by the employer, the school coordinator or administrator, and
the student learner, or if the student learner is a minor, by the student's parent or legal
guardian. Copies of each agreement shall be kept on file by both the school and the employer.
new text end

new text begin Subd. 5. new text end

new text begin Program approval. new text end

new text begin The commissioner may grant exemptions from the
provisions of chapter 181A for student learners participating in youth skills training programs
approved by the commissioner under this section. The approval of a youth skills training
program will be reviewed annually. The approval of a youth skills training program may
be revoked at any time if the commissioner finds that:
new text end

new text begin (1) all provisions of subdivision 3 have not been met in the previous year; or
new text end

new text begin (2) reasonable precautions have not been observed for the safety of minors.
new text end

new text begin The commissioner shall maintain and annually update a list of occupations and tasks suitable
for student learners in compliance with federal law.
new text end

new text begin Subd. 6. new text end

new text begin Interactions with education finance. new text end

new text begin (a) For the purpose of computing state
aids for the enrolling school district, the hours a student learner participates in a youth skills
training program under this section must be counted in the student's hours of average daily
membership under section 126C.05.
new text end

new text begin (b) Educational expenses for a participating student learner must be included in the
enrolling district's career and technical revenue as provided under section 124D.4531.
new text end

new text begin Subd. 7. new text end

new text begin Academic credit. new text end

new text begin A school district may grant academic credit to student learners
participating in youth skills training programs under this section in accordance with local
requirements.
new text end

new text begin Subd. 8. new text end

new text begin Postsecondary credit. new text end

new text begin A postsecondary institution may award postsecondary
credit to a student learner who successfully completes a youth skills training program.
new text end

new text begin Subd. 9. new text end

new text begin Work-based learning program. new text end

new text begin A youth skills training program shall qualify
as a work-based learning program if it meets requirements for a career and technical education
program and is supervised by a qualified teacher with appropriate licensure for a work-based
learning teacher-coordinator.
new text end

new text begin Subd. 10. new text end

new text begin School coordinator. new text end

new text begin Unless otherwise required for a work-based learning
program, a youth skills training program may be supervised by a qualified teacher or by an
administrator as determined by the school district.
new text end

new text begin Subd. 11. new text end

new text begin Other apprenticeship programs. new text end

new text begin (a) This section shall not affect programs
under section 124D.47.
new text end

new text begin (b) A registered apprenticeship program governed by chapter 178 may grant credit
toward the completion of a registered apprenticeship for the successful completion of a
youth skills training program under this section.
new text end

new text begin Subd. 12. new text end

new text begin Outcomes. new text end

new text begin The following outcomes are expected of a local youth skills training
program:
new text end

new text begin (1) at least 80 percent of the student learners who participate in a youth skills training
program receive a high school diploma when eligible on completion of the training program;
and
new text end

new text begin (2) at least 60 percent of the student learners who participate in a youth skills training
program receive a recognized credential on completion of the training program.
new text end

new text begin Subd. 13. new text end

new text begin Reporting. new text end

new text begin (a) By February 1, 2019, and annually thereafter, the commissioner
shall report on the activity and outcomes of the program for the preceding fiscal year to the
chairs of the legislative committees with jurisdiction over jobs and economic growth policy
and finance. At a minimum, the report must include:
new text end

new text begin (1) the number of student learners who commenced the training program and the number
who completed the training program; and
new text end

new text begin (2) recommendations, if any, for changes to the program.
new text end

new text begin (b) The initial report shall include a detailed description of the differences between the
state and federal systems in child safety standards.
new text end

Sec. 3.

Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read:


Subd. 7.

License fees and license renewal fees.

(a) The license fee for each license is
the base license fee plus any applicable board fee, continuing education fee, and contractor
recovery fund fee and additional assessment, as set forth in this subdivision.

(b) For purposes of this section, "license duration" means the number of years for which
the license is issued except that if the initial license is not issued for a whole number of
years, the license duration shall be rounded up to the next whole number.

(c) The base license fee shall depend on whether the license is classified as an entry
level, master, journeyman, or business license, and on the license duration. The base license
fee shall be:

License Classification
License Duration
1 year
2 years
Entry level
$10
$20
Journeyworker
$20
$40
Master
$40
$80
Business
$180

(d) If there is a continuing education requirement for renewal of the license, then a
continuing education fee must be included in the renewal license fee. The continuing
education fee for all license classifications shall be: $10 if the renewal license duration is
one year; and $20 if the renewal license duration is two years.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925,
then a board fee must be included in the license fee and the renewal license fee. The board
fee for all license classifications shall be: $4 if the license duration is one year; and $8 if
the license duration is two years.

(f) If the application is for the renewal of a license issued under sections 326B.802 to
326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision
3, and any additional assessment required under section 326B.89, subdivision 16, must be
included in the license renewal fee.

(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period
July 1, deleted text begin2015deleted text endnew text begin 2017new text end, through deleted text beginJune 30, 2017deleted text endnew text begin September 30, 2021new text end, the following fees apply:

License Classification
License Duration
1 year
2 years
Entry level
$10
$20
Journeyworker
$15
deleted text begin $35
deleted text end new text begin $30
new text end
Master
$30
deleted text begin $75
deleted text end new text begin $60
new text end
Business
deleted text begin $160
deleted text end new text begin $120
new text end

If there is a continuing education requirement for renewal of the license, then a continuing
education fee must be included in the renewal license fee. The continuing education fee for
all license classifications shall be $5.

Sec. 4.

new text begin [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO
CODE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "place of public accommodation"
means a publicly or privately owned facility that is designed for occupancy by 200 or more
people and includes a sports or entertainment arena, stadium, theater, community or
convention hall, special event center, indoor amusement facility or water park, or swimming
pool.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin Construction, additions, and alterations to a place of public
accommodation must be designed and constructed to comply with the State Building Code.
new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin In a municipality that has not adopted the code by ordinance
under section 326B.121, subdivision 2, the commissioner shall enforce this section in
accordance with section 326B.107, subdivision 1.
new text end

Sec. 5.

Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:


Subdivision 1.

Building permits.

(a) Fees for building permits submitted as required
in section deleted text begin326B.106deleted text endnew text begin 326B.107new text end include:

(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality;
and

(2) the surcharge required by section 326B.148.

(b) The total valuation and fee schedule is:

(1) $1 to $500, deleted text begin$29.50deleted text endnew text begin $21new text end;

(2) $501 to $2,000, deleted text begin$28deleted text endnew text begin $21new text end for the first $500 plus deleted text begin$3.70deleted text endnew text begin $2.75new text end for each additional $100
or fraction thereof, to and including $2,000;

(3) $2,001 to $25,000, deleted text begin$83.50deleted text endnew text begin $62.25new text end for the first $2,000 plus deleted text begin$16.55deleted text endnew text begin $12.50new text end for each
additional $1,000 or fraction thereof, to and including $25,000;

(4) $25,001 to $50,000, deleted text begin$464.15deleted text endnew text begin $349.75new text end for the first $25,000 plus deleted text begin$12deleted text endnew text begin $9new text end for each
additional $1,000 or fraction thereof, to and including $50,000;

(5) $50,001 to $100,000, deleted text begin$764.15deleted text endnew text begin $574.75new text end for the first $50,000 plus deleted text begin$8.45deleted text endnew text begin $6.25new text end for
each additional $1,000 or fraction thereof, to and including $100,000;

(6) $100,001 to $500,000, deleted text begin$1,186.65deleted text endnew text begin $887.25new text end for the first $100,000 plus deleted text begin$6.75deleted text endnew text begin $5new text end for
each additional $1,000 or fraction thereof, to and including $500,000;

(7) $500,001 to $1,000,000, deleted text begin$3,886.65deleted text endnew text begin $2,887.25new text end for the first $500,000 plus deleted text begin$5.50deleted text endnew text begin $4.25new text end
for each additional $1,000 or fraction thereof, to and including $1,000,000; and

(8) $1,000,001 and up, deleted text begin$6,636.65deleted text endnew text begin $5,012.25new text end for the first $1,000,000 plus deleted text begin$4.50deleted text endnew text begin $2.75new text end
for each additional $1,000 or fraction thereof.

(c) Other inspections and fees are:

(1) inspections outside of normal business hours (minimum charge two hours), $63.25
per hour;

(2) reinspection fees, $63.25 per hour;

(3) inspections for which no fee is specifically indicated (minimum charge one-half
hour), $63.25 per hour; and

(4) additional plan review required by changes, additions, or revisions to approved plans
(minimum charge one-half hour), $63.25 per hour.

(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25,
then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment,
hourly wages, and fringe benefits of the employees involved.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective
July 1, 2017, and the amendments to it expire October 1, 2021.
new text end

Sec. 6.

Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
read:


new text begin Subd. 16. new text end

new text begin Wind electric systems. new text end

new text begin (a) The inspection fee for the installation of a wind
turbine is:
new text end

new text begin (1) zero watts to and including 100,000 watts, $80;
new text end

new text begin (2) 100,001 watts to and including 500,000 watts, $105;
new text end

new text begin (3) 500,001 watts to and including 1,000,000 watts, $120;
new text end

new text begin (4) 1,000,001 watts to and including 1,500,000 watts, $125;
new text end

new text begin (5) 1,500,001 watts to and including 2,000,000 watts, $130;
new text end

new text begin (6) 2,000,001 watts to and including 3,000,000 watts, $145; and
new text end

new text begin (7) 3,000,001 watts and larger, $160.
new text end

new text begin (b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
current energy output of one individual wind turbine.
new text end

Sec. 7.

Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
read:


new text begin Subd. 17. new text end

new text begin Solar photovoltaic systems. new text end

new text begin (a) The inspection fee for the installation of a
solar photovoltaic system is:
new text end

new text begin (1) zero watts to and including 5,000 watts, $60;
new text end

new text begin (2) 5,001 watts to and including 10,000 watts, $100;
new text end

new text begin (3) 10,001 watts to and including 20,000 watts, $150;
new text end

new text begin (4) 20,001 watts to and including 30,000 watts, $200;
new text end

new text begin (5) 30,001 watts to and including 40,000 watts, $250;
new text end

new text begin (6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional
10,000 watts over 40,000 watts;
new text end

new text begin (7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts
over 1,000,000 watts; and
new text end

new text begin (8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over
5,000,000 watts.
new text end

new text begin (b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
current energy output of the solar photovoltaic system.
new text end

Sec. 8.

Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:


Subd. 2.

Powers; duties; administrative support.

(a) The board shall have the power
to:

(1) elect its chair, vice-chair, and secretary;

(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
and containing such other provisions as may be useful and necessary for the efficient conduct
of the business of the board;

(3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code
amendments thereto. The Plumbing Code shall include the minimum standards described
in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the
Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in
subdivision 6, paragraphs (b), (c), and (d);

(4) review requests for final interpretations and issue final interpretations as provided
in section 326B.127, subdivision 5;

(5) adopt rules that regulate the licensure, certification, or registration of plumbing
contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers,
restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and
testers, water conditioning contractors, and water conditioning installers, and other persons
engaged in the design, installation, and alteration of plumbing systems or engaged in or
working at the business of water conditioning installation or service, or engaged in or
working at the business of medical gas system installation, maintenance, or repair, except
for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall
adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e)
and (f);

(6) adopt rules that regulate continuing education for individuals licensed as master
plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers,
new text begin registered unlicensed individuals, new text endwater conditioning deleted text begincontractorsdeleted text endnew text begin mastersnew text end, and water
conditioning deleted text begininstallersdeleted text endnew text begin journeymennew text end, and for individuals certified under sections 326B.437
and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in
subdivision 6, paragraphs (e) and (f);

(7) refer complaints or other communications to the commissioner, whether oral or
written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
order that the commissioner has the authority to enforce pertaining to code compliance,
licensure, or an offering to perform or performance of unlicensed plumbing services;

(8) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;

(9) approve license reciprocity agreements;

(10) select from its members individuals to serve on any other state advisory council,
board, or committee; and

(11) recommend the fees for licenses, registrations, and certifications.

Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
Board of High Pressure Piping Systems, the commissioner of labor and industry shall
administer and enforce the provisions of this chapter and any rules promulgated pursuant
thereto.

(b) The board shall comply with section 15.0597, subdivisions 2 and 4.

(c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards created pursuant
to this chapter. The commissioner shall provide staff support to the board. The support
includes professional, legal, technical, and clerical staff necessary to perform rulemaking
and other duties assigned to the board. The commissioner of labor and industry shall supply
necessary office space and supplies to assist the board in its duties.

Sec. 9.

Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:


Subd. 3.

Water conditioning installation.

"Water conditioning installation" means the
installation of appliances, appurtenances, and fixtures designed to treat water so as to alter,
modify, add or remove mineral, chemical or bacterial content, said installation to be made
in a water distribution system servingnew text begin:
new text end

new text begin (1)new text end a single family residential unit, which has been initially established by a licensed
plumber, and does not involve a direct connection without an air gap to a soil or waste pipedeleted text begin.deleted text endnew text begin;
or
new text end

new text begin (2) a multifamily or nonresidential building, where the plumbing installation has been
initially established by a licensed plumber. Isolation valves shall be required for all water
conditioning installations and shall be readily accessible. Water conditioning installation
does not include:
new text end

new text begin (i) a valve that allows isolation of the water conditioning installation;
new text end

new text begin (ii) piping greater than two-inch nominal pipe size; or
new text end

new text begin (iii) a direct connection without an air gap to a soil or waste pipe.
new text end

Sec. 10.

Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Direct supervision. new text end

new text begin "Direct supervision," with respect to direct supervision of
a registered unlicensed individual, means that:
new text end

new text begin (1) at all times while the registered unlicensed individual is performing water conditioning
installation work, a direct supervisor is present at the location where the registered unlicensed
individual is working;
new text end

new text begin (2) the direct supervisor is physically present and immediately available to the registered
unlicensed individual at all times for assistance and direction;
new text end

new text begin (3) any form of electronic supervision does not meet the requirement of being physically
present;
new text end

new text begin (4) the direct supervisor reviews the water conditioning installation work performed by
the registered unlicensed individual before the water conditioning installation is operated;
and
new text end

new text begin (5) the direct supervisor determines that all water conditioning installation work
performed by the registered unlicensed individual is performed in compliance with sections
326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code,
and all orders issued under section 326B.082.
new text end

Sec. 11.

Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Direct supervisor. new text end

new text begin "Direct supervisor" means a master plumber, journeyman
plumber, restricted master plumber, restricted journeyman plumber, water conditioning
master, or water conditioning journeyman responsible for providing direct supervision of
a registered unlicensed individual.
new text end

Sec. 12.

Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:


Subd. 2.

Qualifications for licensing.

(a) A water conditioning master license shall be
issued only to an individual who has demonstrated skill in planning, superintending, deleted text beginanddeleted text end
servicingnew text begin, and installingnew text end water conditioning installations, and has successfully passed the
examination for water conditioning masters. A water conditioning journeyman license shall
only be issued to an individual other than a water conditioning master who has demonstrated
practical knowledge of water conditioning installation, and has successfully passed the
examination for water conditioning journeymen. A water conditioning journeyman must
successfully pass the examination for water conditioning masters before being licensed as
a water conditioning master.

(b) Each water conditioning contractor must designate a responsible licensed master
plumber or a responsible licensed water conditioning master, who shall be responsible for
the performance of all water conditioning installation and servicing in accordance with the
requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to
326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If
the water conditioning contractor is an individual or sole proprietorship, the responsible
licensed master must be the individual, proprietor, or managing employee. If the water
conditioning contractor is a partnership, the responsible licensed master must be a general
partner or managing employee. If the water conditioning contractor is a limited liability
company, the responsible licensed master must be a chief manager or managing employee.
If the water conditioning contractor is a corporation, the responsible licensed master must
be an officer or managing employee. If the responsible licensed master is a managing
employee, the responsible licensed master must be actively engaged in performing water
conditioning work on behalf of the water conditioning contractor and cannot be employed
in any capacity as a water conditioning master or water conditioning journeyman for any
other water conditioning contractor. An individual must not be the responsible licensed
master for more than one water conditioning contractor.

(c) All applications and renewals for water conditioning contractor licenses shall include
a verified statement that the applicant or licensee has complied with paragraph (b).

(d) Each application and renewal for a water conditioning master license, water
conditioning journeyman license, or a water conditioning contractor license shall be
accompanied by all fees required by section 326B.092.

Sec. 13.

Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:


Subd. 4.

Plumber's apprentices.

(a) A plumber's apprentice who is registered under
section 326B.47 is authorized to assist in water conditioning installation and water
conditioning servicing only while under the direct supervision of a master plumber,
journeyman plumber, new text beginrestricted master plumber, restricted journeyman plumber, new text endwater
conditioning master, or water conditioning journeyman. The master or journeyman is
responsible for ensuring that all water conditioning work performed by the plumber's
apprentice complies with the plumbing code and rules adopted under sections 326B.50 to
326B.59. The supervising master or journeyman must be licensed and must be employed
by the same employer as the plumber's apprentice. Licensed individuals shall not permit
plumber's apprentices to perform water conditioning work except under the direct supervision
of an individual actually licensed to perform such work. Plumber's apprentices shall not
supervise the performance of plumbing work or make assignments of plumbing work to
unlicensed individuals.

(b) Water conditioning contractors employing plumber's apprentices to perform water
conditioning work shall maintain records establishing compliance with this subdivision that
shall identify all plumber's apprentices performing water conditioning work, and shall permit
the department to examine and copy all such records.

Sec. 14.

new text begin [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
new text end

new text begin Subdivision 1. new text end

new text begin Registration; supervision; records. new text end

new text begin (a) All unlicensed individuals
engaged in water conditioning installation must be registered under subdivision 3.
new text end

new text begin (b) A registered unlicensed individual is authorized to assist in water conditioning
installations in a single family residential unit only when a master plumber, journeyman
plumber, restricted master plumber, restricted journeyman plumber, water conditioning
master, or water conditioning journeyman is available and responsible for ensuring that all
water conditioning installation work performed by the unlicensed individual complies with
the applicable provisions of the plumbing and water conditioning codes and rules adopted
pursuant to such codes. For all other water conditioning installation work, the registered
unlicensed individual must be under the direct supervision of a responsible licensed water
conditioning master.
new text end

new text begin (c) Water conditioning contractors employing registered unlicensed individuals to perform
water conditioning installation work shall maintain records establishing compliance with
this subdivision that shall identify all unlicensed individuals performing water conditioning
installations, and shall permit the department to examine and copy all such records.
new text end

new text begin Subd. 2. new text end

new text begin Journeyman exam. new text end

new text begin A registered unlicensed individual who has completed
875 hours of practical water conditioning installation, servicing, and training is eligible to
take the water conditioning journeyman examination. Up to 100 hours of practical water
conditioning installation and servicing experience prior to becoming a registered unlicensed
individual may be applied to the practical experience requirement. However, none of this
practical experience may be applied if the unlicensed individual did not have any practical
experience in the 12-month period immediately prior to becoming a registered unlicensed
individual.
new text end

new text begin Subd. 3. new text end

new text begin Registration, renewals, and fees. new text end

new text begin An unlicensed individual may register by
completing and submitting to the commissioner an application form provided by the
commissioner, with all fees required by section 326B.58. A completed application form
must state the date, the individual's age, schooling, previous experience and employer, and
other information required by the commissioner. The plumbing board may prescribe rules,
not inconsistent with this section, for the registration of unlicensed individuals. Applications
for initial registration may be submitted at any time. Registration must be renewed annually
and shall be for the period from July 1 of each year to June 30 of the following year.
new text end

Sec. 15.

Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:


Subd. 3.

Prohibition.

Except as provided in subdivision 6, no persons required to be
licensed by subdivision 1 may act or hold themselves out as a residential building contractor,
residential remodeler, residential roofer, or manufactured home installer for compensation
without a license issued by the commissioner.new text begin Unlicensed residential building contractor,
residential remodeler, or residential roofer activity is a gross misdemeanor.
new text end

Sec. 16.

Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Gross annual receipts" means the total amount derived from residential contracting
or residential remodeling activities, regardless of where the activities are performed, and
must not be reduced by costs of goods sold, expenses, losses, or any other amount.

(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.

(d) "Residential real estate" means a new or existing building constructed for habitation
by one to four families, and includes detached garagesnew text begin intended for storage of vehicles
associated with the residential real estate
new text end.

(e) "Fund" means the contractor recovery fund.

(f) "Owner" when used in connection with real property, means a person who has any
legal or equitable interest in real property and includes a condominium or townhome
association that owns common property located in a condominium building or townhome
building or an associated detached garage. Owner does not include any real estate developer
or any owner using, or intending to use, the property for a business purpose and not as
owner-occupied residential real estate.

Sec. 17.

Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:


Subd. 5.

Payment limitations.

The commissioner shall not pay compensation from the
fund to an owner or a lessee in an amount greater than $75,000 per licensee. The
commissioner shall not pay compensation from the fund to owners and lessees in an amount
that totals more than deleted text begin$150,000deleted text endnew text begin $300,000new text end per licensee. The commissioner shall only pay
compensation from the fund for a final judgment that is based on a contract directly between
the licensee and the homeowner or lessee that was entered into prior to the cause of action
and that requires licensure as a residential building contractor or residential remodeler.

Sec. 18.

Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is
amended to read:


Subd. 2.

Workers' Compensation

15,226,000
17,782,000

This appropriation is from the workers'
compensation fund.

$4,000,000 in fiscal year 2016 and $6,000,000
in fiscal year 2017 are for workers'
compensation system upgradesnew text begin and are
available through June 30, 2021
new text end. The base
appropriation for this purpose is $3,000,000
in fiscal year 2018 and $3,000,000 in fiscal
year 2019. The base appropriation for fiscal
year 2020 and beyond is zero.

This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs will be
incorporated into the service level agreement
and will 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.

Sec. 19. new text beginRULEMAKING.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2016, section 326B.89, subdivision 14, new text end new text begin is repealed.
new text end

ARTICLE 3

EMPLOYMENT, ECONOMIC DEVELOPMENT, AND WORKFORCE
DEVELOPMENT POLICY

Section 1.

Minnesota Statutes 2016, section 116J.01, subdivision 5, is amended to read:


Subd. 5.

Departmental organization.

(a) The commissioner shall organize the
department as provided in section 15.06.

(b) The commissioner may establish divisions and offices within the department. The
commissioner may employ deleted text beginfourdeleted text endnew text begin onenew text end deputy deleted text begincommissionersdeleted text endnew text begin commissionernew text end in the unclassified
service.

(c) The commissioner shall:

(1) employ assistants and other officers, employees, and agents that the commissioner
considers necessary to discharge the functions of the commissioner's office;

(2) define the duties of the officers, employees, and agents, and delegate to them any of
the commissioner's powers, duties, and responsibilities, subject to the commissioner's control
and under conditions prescribed by the commissioner.

(d) The commissioner shall ensure that there are at least three employment and economic
development officers in state offices in nonmetropolitan areas of the state who will work
with local units of government on developing local employment and economic development.

Sec. 2.

Minnesota Statutes 2016, section 116J.013, is amended to read:


116J.013 COST-OF-LIVING STUDY; ANNUAL REPORT.

(a) The commissioner shall conduct an annual cost-of-living study in Minnesota. The
study shall include:

(1) a calculation of the statewide basic needs cost of living, new text beginincluding reasonable
retirement and long-term care savings,
new text endadjusted for family size;

(2) a calculation of the basic needs cost of living,new text begin including reasonable retirement and
long-term care savings,
new text end adjusted for family size, for each county;

(3) an analysis of statewide and county cost-of-living data, employment data, and job
vacancy data; and

(4) recommendations to aid in the assessment of employment and economic development
planning needs throughout the state.

(b) The commissioner shall report on the cost-of-living study and recommendations by
February 1 of each year to the governor and to the chairs of the standing committees of the
house of representatives and the senate having jurisdiction over employment and economic
development issues.

Sec. 3.

new text begin [116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND.
new text end

new text begin (a) A rural policy and development center fund is established as an account in the special
revenue fund in the state treasury. The commissioner of management and budget shall credit
to the account the amounts authorized under this section and appropriations and transfers
to the account. The State Board of Investment shall ensure that account money is invested
under section 11A.24. All money earned by the account must be credited to the account.
The principal of the account and any unexpended earnings must be invested and reinvested
by the State Board of Investment.
new text end

new text begin (b) Gifts and donations, including land or interests in land, may be made to the account.
Noncash gifts and donations must be disposed of for cash as soon as the board prudently
can maximize the value of the gift or donation. Gifts and donations of marketable securities
may be held or be disposed of for cash at the option of the board. The cash receipts of gifts
and donations of cash or capital assets and marketable securities disposed of for cash must
be credited immediately to the principal of the account. The value of marketable securities
at the time the gift or donation is made must be credited to the principal of the account and
any earnings from the marketable securities are earnings of the account. The earnings in
the account are annually appropriated to the board of the Center for Rural Policy and
Development to carry out the duties of the center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [116J.6582] SHRIMP PRODUCTION INCENTIVE.
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 terms defined in this
subdivision have the meanings given them.
new text end

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

new text begin (c) "Feed" means pelletized material produced from agricultural sources.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) A facility eligible for payment under this section must acquire
at least 80 percent of feed from Minnesota. The facility must be located in Minnesota, must
begin production at a specific location by June 30, 2025, and must not begin production
before July 1, 2019. Eligible facilities include existing companies and facilities that are
adding shrimp production capacity, or retrofitting existing capacity, as well as new companies
and facilities. Eligible shrimp production facilities must produce at least 25,000 pounds of
shrimp each quarter.
new text end

new text begin (b) No payments shall be made for shrimp production that occurs after June 30, 2028,
for those eligible producers under paragraph (a).
new text end

new text begin (c) An eligible producer of shrimp shall not transfer the producer's eligibility for payments
under this section to a facility at a different location.
new text end

new text begin (d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.
new text end

new text begin Subd. 3. new text end

new text begin Payment amounts; limits. new text end

new text begin (a) The commissioner shall make payments to
eligible producers of shrimp. The amount of the payment for each eligible producer's
quarterly production is 69 cents per pound of shrimp produced at a specific location for
three years after the start of production.
new text end

new text begin (b) Total payments under this section to an eligible shrimp producer in a quarter may
not exceed the amount necessary for 2,000,000 pounds of shrimp produced. Total payments
under this section to all eligible shrimp producers in a quarter may not exceed $1,250,000.
If the total amount for which all shrimp producers are eligible in a quarter exceeds the
amount available for payments, the commissioner shall award payments on a pro rata basis
within the limits of available funding.
new text end

new text begin (c) For purposes of this section, an entity that holds a controlling interest in more than
one shrimp facility is considered a single eligible producer.
new text end

new text begin Subd. 4. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each eligible
shrimp producer shall file a claim for payment for shrimp production during the preceding
three calendar months. An eligible shrimp producer that files a claim under this subdivision
shall include a statement of the eligible producer's total pounds of shrimp produced during
the quarter covered by the claim. For each claim and statement of total pounds of shrimp
filed under this subdivision, the pounds of shrimp produced must be examined by a certified
public accounting firm with a valid permit to practice under chapter 326A, in accordance
with Statements on Standards for Attestation Engagements established by the American
Institute of Certified Public Accountants.
new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15, and
August 15. A separate payment must be made for each claim filed.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By January 15 each year, the commissioner shall report on the program
under this section to the legislative committees with jurisdiction over agricultural policy
and finance and economic development. The report shall include information on production
and incentive expenditures under the program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [116J.9922] CENTRAL MINNESOTA OPPORTUNITY GRANT 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.
new text end

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

new text begin (c) "Community initiative" means a nonprofit organization which provides services to
central Minnesota communities of color in one or more of the program areas listed in
subdivision 4, paragraph (a).
new text end

new text begin (d) "Foundation" means the Central Minnesota Community Foundation.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a central Minnesota
opportunity grant program, administered by the foundation, to identify and support
community initiatives in the St. Cloud area that enhance long-term economic self-sufficiency
by improving education, housing, and economic outcomes for central Minnesota communities
of color.
new text end

new text begin Subd. 3. new text end

new text begin Grant to the Central Minnesota Community Foundation. new text end

new text begin The commissioner
shall award all grant funds to the foundation, which shall administer the central Minnesota
opportunity grant program. The foundation may use up to five percent of grant funds for
administrative costs.
new text end

new text begin Subd. 4. new text end

new text begin Grants to community initiatives. new text end

new text begin (a) The foundation must award funds through
a competitive grant process to community initiatives that will provide services, either alone
or in partnership with another nonprofit organization, in one or more of the following areas:
new text end

new text begin (1) economic development, including but not limited to programs to foster
entrepreneurship or small business development;
new text end

new text begin (2) education, including but not limited to programs to encourage civic engagement or
provide youth after-school or recreation programs; or
new text end

new text begin (3) housing, including but not limited to programs to prevent and respond to homelessness
or to provide access to loans or grants for housing stability and affordability.
new text end

new text begin (b) To receive grant funds, a community initiative must submit a written application to
the foundation, using a form developed by the foundation. This grant application must
include:
new text end

new text begin (1) a description of the activities that will be funded by the grant;
new text end

new text begin (2) an estimate of the cost of each grant activity;
new text end

new text begin (3) the total cost of the project;
new text end

new text begin (4) the sources and amounts of nonstate funds supplementing the grant;
new text end

new text begin (5) how the project aims to achieve stated outcomes in areas including improved job
training; workforce development; small business support; early childhood, kindergarten
through grade 12, and higher education achievement; and access to housing, including loans;
and
new text end

new text begin (6) any additional information requested by the foundation.
new text end

new text begin (c) In awarding grants under this subdivision, the foundation shall give weight to
applications from organizations that demonstrate:
new text end

new text begin (1) a history of successful provision of the services listed in paragraph (a); and
new text end

new text begin (2) a history of successful fund-raising from private sources for such services.
new text end

new text begin (d) In evaluating grant applications, the foundation shall not consider the composition
of a community initiative's governing board.
new text end

new text begin (e) Grant funds may be used by a community initiative for the following purposes:
new text end

new text begin (1) operating costs, including but not limited to staff, office space, computers, software,
and Web development and maintenance services;
new text end

new text begin (2) program costs;
new text end

new text begin (3) travel within Minnesota;
new text end

new text begin (4) consultants directly related to and necessary for delivering services listed in paragraph
(a); and
new text end

new text begin (5) capacity building.
new text end

new text begin Subd. 5. new text end

new text begin Reports to the legislature. new text end

new text begin By January 15, 2019, and each January 15 thereafter
through 2022, the commissioner must submit a report to the chairs and ranking minority
members of the house of representatives and the senate committees with jurisdiction over
economic development that details the use of grant funds. This report must include data on
the number of individuals served and, to the extent practical, measures of progress toward
achieving the outcomes stated in subdivision 4, paragraph (b), clause (5).
new text end

Sec. 6.

Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time
employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment or
reemployment in the same or a similar occupation in the area in which the individual resides,
including older individuals who may have substantial barriers to employment by reason of
age;

(3) has been terminated or has received a notice of termination of employment as a result
of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides or
because of natural disasters;

deleted text begin (5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
deleted text end

deleted text begin (6)deleted text endnew text begin (5)new text end is a veteran as defined by section 197.447, has been discharged or released from
active duty under honorable conditions within the last 36 months, and (i) is unemployed or
(ii) is employed in a job verified to be below the skill level and earning capacity of the
veteran;

deleted text begin (7)deleted text endnew text begin (6)new text end is an individual determined by the United States Department of Labor to be
covered by trade adjustment assistance under United States Code, title 19, sections 2271 to
2331, as amended; or

deleted text begin (8)deleted text endnew text begin (7)new text end is a displaced homemaker. A "displaced homemaker" is an individual who has
spent a substantial number of years in the home providing homemaking service and (i) has
been dependent upon the financial support of another; and now due to divorce, separation,
death, or disability of that person, must find employment to self support; or (ii) derived the
substantial share of support from public assistance on account of dependents in the home
and no longer receives such support. To be eligible under this clause, the support must have
ceased while the worker resided in Minnesota.

new text begin For the purposes of this section, "dislocated worker" does not include an individual who
was an employee, at the time employment ceased, of a political committee, political fund,
principle campaign committee, or party unit, as those terms are used in chapter 10A, or an
organization required to file with the federal elections commission.
new text end

(d) "Eligible organization" means a state or local government unit, nonprofit organization,
community action agency, business organization or association, or labor organization.

(e) "Plant closing" means the announced or actual permanent shutdown of a single site
of employment, or one or more facilities or operating units within a single site of
employment.

(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a
result of a plant closing, and which results in an employment loss at a single site of
employment during any 30-day period for at least 50 employees excluding those employees
that work less than 20 hours per week.

Sec. 7.

Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter
189, article 7, section 8, is amended to read:


Sec. 14. ASSIGNED RISK TRANSFER.

(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an
audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1). This is a onetime transfer.

(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
determines on the basis of an audit that there is an excess surplus in the assigned risk plan
created under Minnesota Statutes, section 79.252, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year,
to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423.
This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251,
subdivision 1
, paragraph (a), clause (1), but after the deleted text begintransferdeleted text endnew text begin transfersnew text end authorized in deleted text beginparagraphdeleted text endnew text begin
paragraphs
new text end (a)new text begin and (f)new text end. The total amount authorized for all transfers under this paragraph
must not exceed $24,100,000. This paragraph expires the day following the transfer in which
the total amount transferred under this paragraph to the Minnesota minerals 21st century
fund equals $24,100,000.

(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an
audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a
transfer occurs under this paragraph, the amount transferred is appropriated from the general
fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section
15. Both the transfer and appropriation under this paragraph are onetime.

(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an
audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a
transfer occurs under this paragraph, the amount transferred is appropriated from the general
fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section
15. Both the transfer and appropriation under this paragraph are onetime.

(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
management and budget shall transfer to the general fund, any unencumbered or unexpended
balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or
the date the commissioner of commerce determines that an excess surplus in the assigned
risk plan does not exist, whichever occurs earlier.

new text begin (f) By June 30, 2017, and each year thereafter, if the commissioner of commerce
determines on the basis of an audit that there is an excess surplus in the assigned risk plan
created under Minnesota Statutes, section 79.252, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each year,
to the rural policy and development center fund under Minnesota Statutes, section 116J.4221.
This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes,
section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all
transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day
following the transfer in which the total amount transferred under this paragraph to the rural
policy and development center fund equals $2,000,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is
amended to read:


Subd. 6.

Vocational Rehabilitation

Appropriations by Fund
General
22,611,000
21,611,000
Workforce
Development
7,830,000
7,830,000

(a) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
268A.

(b) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.

(c) $5,745,000 each year from the general fund
and $6,830,000 each year from the workforce
development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.

(d) $250,000 in fiscal year 2016 and $250,000
in fiscal year 2017 are for rate increases to
providers of extended employment services
for persons with severe disabilities under
Minnesota Statutes, section 268A.15. This
appropriation is added to the agency's base.

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

(f) $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.

(g) $1,000,000 in fiscal year 2016 is for a
grant to Assistive Technology of Minnesota,
a statewide nonprofit organization that is
exclusively dedicated to the issues of access
to and the acquisition of assistive technology.
deleted text begin The purpose of the grant is to acquire assistive
technology and to work in tandem with
individuals using this technology to create
career paths
deleted text endnew text begin Assistive Technology of
Minnesota must use the funds to provide
low-interest loans to individuals of all ages
and types of disabilities to purchase assistive
technology and employment-related
equipment
new text end. This is a onetime appropriation.

(h) For purposes of this subdivision,
Minnesota Diversified Industries, Inc. is an
eligible provider of services for persons with
severe disabilities under Minnesota Statutes,
section 268A.15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2015.
new text end

Sec. 9.

Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read:


Subd. 3.

Qualification requirements.

To qualify for assistance under this section, a
business must:

(1) be located within one of the following municipalities surrounding Lake Mille Lacs:

(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
Roosevelt;

(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
Malmo, or township of Lakeside; or

(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;

(2) document a reduction of at least deleted text begintendeleted text endnew text begin fivenew text end percent in gross receipts in any two-year
period since 2010; and

(3) be a business in one of the following industries, as defined within the North American
Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
historical sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by Mille Lacs County
in consultation with the commissioner of employment and economic development.

Sec. 10.

Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to
read:


EFFECTIVE DATE.

This section, except for subdivision 4, is effective July 1, 2016,
and expires June 30, deleted text begin2017deleted text endnew text begin 2018new text end. Subdivision 4 is effective July 1, 2016, and expires on the
date the last loan is repaid or forgiven as provided under this section.

Sec. 11. new text beginGREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The Minnesota Design Center at the University of Minnesota
shall partner with relevant organizations in selected communities within greater Minnesota
to establish a pilot project for community design. The pilot project shall identify current
and future opportunities for rural development, create designs, seek funding from existing
sources, and assist with the implementation of economically, environmentally, and culturally
sensitive projects that respond to current community conditions, needs, capabilities, and
aspirations in support of the selected communities. For the purposes of this section, "greater
Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault,
Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley,
Steele, Wabasha, Waseca, Watonwan, and Winona.
new text end

new text begin Subd. 2. new text end

new text begin Community selection. new text end

new text begin In order to be considered for inclusion in the pilot
project, communities with fewer than 12,000 residents within the counties listed in
subdivision 1 must submit a letter of interest to the Minnesota Design Center. The Minnesota
Design Center may choose up to ten communities for participation in the pilot project.
new text end

new text begin Subd. 3. new text end

new text begin Pilot project activities. new text end

new text begin Among other activities, the Minnesota Design Center,
in partnership with relevant organizations within the selected communities, shall:
new text end

new text begin (1) assess community capacity to engage in design, development, and implementation;
new text end

new text begin (2) create community and project designs that respond to a community's culture and
needs, reinforce its identity as a special place, and support its future aspirations;
new text end

new text begin (3) create an implementation strategy; and
new text end

new text begin (4) build capacity to implement design work by identifying potential funding strategies
and sources and assisting in grant writing to secure funding.
new text end

Sec. 12. new text beginDEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT;
MANDATED REPORT HOLIDAY.
new text end

new text begin (a) Notwithstanding any law to the contrary, any report required by state law from the
Department of Employment and Economic Development that is due in fiscal year 2018 or
2019 is optional. The commissioner of employment and economic development may produce
any reports at the commissioner's discretion or as may be required by federal law.
new text end

new text begin (b) This section does not apply to workforce programs outcomes reporting under
Minnesota Statutes, section 116L.98.
new text end

Sec. 13. new text beginONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA
INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116J.8731, subdivision 2, a home rule
charter or statutory city, county, or town that has uncommitted money received from
repayment of funds awarded under Minnesota Statutes, section 116J.8731, may choose to
transfer 20 percent of the balance of that money to the state general fund before June 30,
2018. A home rule charter or statutory city, county, or town that does so may then use the
remaining 80 percent of the uncommitted money for any purposes not otherwise forbidden
by law other than Minnesota Statutes, section 116J.8731, but must submit a report by January
20, 2020, to the chairs and ranking minority members of the house of representatives and
the senate committees with jurisdiction over economic development that details how the
money was used.
new text end

Sec. 14. new text beginEXISTING DEPUTY COMMISSIONERS MAY SERVE UNTIL JANUARY
1, 2019.
new text end

new text begin All existing deputy commissioners under Minnesota Statutes, section 116J.01, may serve
until January 1, 2019. Vacancies that occur in these positions before January 1, 2019, must
not be filled.
new text end

Sec. 15. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2016, section 116J.549, new text end new text begin is repealed.
new text end

ARTICLE 4

IRON RANGE RESOURCES AND REHABILITATION POLICY

Section 1.

Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section and section 3.736 the terms defined
in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and
officers in the executive, legislative, and judicial branches of the state of Minnesota and
includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
Education, the Higher Education Facilities Authority, the Health Technology Advisory
Committee, the Armory Building Commission, the Zoological Board, the new text beginDepartment of
new text end Iron Range Resources and Rehabilitation deleted text beginBoarddeleted text end, the Minnesota Historical Society, the State
Agricultural Society, the University of Minnesota, the Minnesota State Colleges and
Universities, state hospitals, and state penal institutions. It does not include a city, town,
county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or
employees of the state, members of the Minnesota National Guard, members of a bomb
disposal unit approved by the commissioner of public safety and employed by a municipality
defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an official
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section 3.736 only,
a guardian ad litem acting under court appointment, or members of the Minnesota National
Guard while engaged in training or duty under United States Code, title 10, or title 32,
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
of the state" includes a district public defender or assistant district public defender in the
Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
and any officer, agent, or employee of the state of Wisconsin performing work for the state
of Minnesota pursuant to a joint state initiative.

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:


Subd. 3.

Exclusions.

Without intent to preclude the courts from finding additional cases
where the state and its employees should not, in equity and good conscience, pay
compensation for personal injuries or property losses, the legislature declares that the state
and its employees are not liable for the following losses:

(a) a loss caused by an act or omission of a state employee exercising due care in the
execution of a valid or invalid statute or rule;

(b) a loss caused by the performance or failure to perform a discretionary duty, whether
or not the discretion is abused;

(c) a loss in connection with the assessment and collection of taxes;

(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does
not abut a publicly owned building or a publicly owned parking lot, except when the condition
is affirmatively caused by the negligent acts of a state employee;

(e) a loss caused by wild animals in their natural state, except as provided in section
3.7371;

(f) a loss other than injury to or loss of property or personal injury or death;

(g) a loss caused by the condition of unimproved real property owned by the state, which
means land that the state has not improved, state land that contains idled or abandoned mine
pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither
affixed nor improved;

(h) a loss involving or arising out of the use or operation of a recreational motor vehicle,
as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as
defined in section 160.02, except that the state is liable for conduct that would entitle a
trespasser to damages against a private person;

(i) a loss incurred by a user arising from the construction, operation, or maintenance of
the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the
construction, operation, maintenance, or administration of grants-in-aid trails as defined in
section 85.018, or for a loss arising from the construction, operation, or maintenance of a
water access site created by the new text beginDepartment of new text endIron Range Resources and Rehabilitation
deleted text begin Boarddeleted text end, except that the state is liable for conduct that would entitle a trespasser to damages
against a private person. For the purposes of this clause, a water access site, as defined in
section 86A.04 or created by the new text begincommissioner of new text endIron Range resources and rehabilitation
deleted text begin Boarddeleted text end, that provides access to an idled, water filled mine pit, also includes the entire water
filled area of the pit and, further, includes losses caused by the caving or slumping of the
mine pit walls;

(j) a loss of benefits or compensation due under a program of public assistance or public
welfare, except if state compensation for loss is expressly required by federal law in order
for the state to receive federal grants-in-aid;

(k) a loss based on the failure of a person to meet the standards needed for a license,
permit, or other authorization issued by the state or its agents;

(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person
at a state hospital or state corrections facility where reasonable use of available appropriations
has been made to provide care;

(m) loss, damage, or destruction of property of a patient or inmate of a state institution
except as provided under section 3.7381;

(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;

(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to
increase dissolved oxygen or maintain open water on the ice of public waters, that is operated
under a permit issued by the commissioner of natural resources;

(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state
is liable for conduct that would entitle a trespasser to damages against a private person;

(q) a loss arising out of a person's use of a logging road on public land that is maintained
exclusively to provide access to timber on that land by harvesters of the timber, and is not
signed or otherwise held out to the public as a public highway; and

(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the
Minnesota National Guard or the Department of Military Affairs, except that the state is
liable for conduct that would entitle a trespasser to damages against a private person.

The state will not pay punitive damages.

Sec. 3.

Minnesota Statutes 2016, section 15.01, is amended to read:


15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the
Department of Administration; the Department of Agriculture; the Department of Commerce;
the Department of Corrections; the Department of Education; the Department of Employment
and Economic Development; the Department of Health; the Department of Human Rights;new text begin
the Department of Iron Range Resources and Rehabilitation;
new text end the Department of Labor and
Industry; the Department of Management and Budget; the Department of Military Affairs;
the Department of Natural Resources; the Department of Public Safety; the Department of
Human Services; the Department of Revenue; the Department of Transportation; the
Department of Veterans Affairs; and their successor departments.

Sec. 4.

Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:


Subd. 7.

new text beginDepartment of new text endIron Range Resources and Rehabilitation deleted text beginBoarddeleted text end.

new text beginAfter
seeking a recommendation from the Legislative Commission on Iron Range Resources and
Rehabilitation,
new text endthe new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end may
purchase insurance deleted text beginit considersdeleted text end new text beginthe commissioner deems new text endnecessary and appropriate to insure
facilities operated by the deleted text beginboarddeleted text endnew text begin commissionernew text end.

Sec. 5.

Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:


Subd. 3.

Group II salary limits.

The salary for a position listed in this subdivision shall
not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's Web site. This subdivision applies
to the following positions:

Executive director of Gambling Control Board;

Commissionerdeleted text begin,deleted text endnew text begin ofnew text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Developmental Disabilities;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

Sec. 6.

Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:


Subd. 22.

Executive branch.

"Executive branch" means heads of all agencies of state
government, elective or appointive, established by statute or Constitution and all employees
of those agency heads who have within their particular field of responsibility statewide
jurisdiction and who are not within the legislative or judicial branches of government. The
executive branch also includes employees of the new text beginDepartment of new text endIron Range Resources and
Rehabilitation deleted text beginBoarddeleted text end. The executive branch does not include agencies with jurisdiction in
specifically defined geographical areas, such as regions, counties, cities, towns,
municipalities, or school districts, the University of Minnesota, the Public Employees
Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
Association, the Minnesota Historical Society, and all of their employees, and any other
entity which is incorporated, even though it receives state funds.

Sec. 7.

Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:


Subdivision 1.

Advisory council created.

The Cuyuna Country State Recreation Area
Citizens Advisory Council is established. Membership on the advisory council shall include:

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;

(2) a representative of the Croft Mine Historical Park Joint Powers Board;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
as a miner in the local area;

(4) a representative of the Crow Wing County Board;

(5) an elected state official;

(6) a representative of the Grand Rapids regional office of the Department of Natural
Resources;

(7) a designee of the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end;

(8) a designee of the local business community selected by the area chambers of
commerce;

(9) a designee of the local environmental community selected by the Crow Wing County
District 5 commissioner;

(10) a designee of a local education organization selected by the Crosby-Ironton School
Board;

(11) a designee of one of the recreation area user groups selected by the Cuyuna Range
Chamber of Commerce; and

(12) a member of the Cuyuna Country Heritage Preservation Society.

Sec. 8.

Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:


Subd. 1a.

Definitions.

For the purposes of this chapter, the following terms have the
meanings given to them in this subdivision.

(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.

(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02,
subdivision 5
.

(c) "Environmental assessment worksheet" means a brief document which is designed
to set out the basic facts necessary to determine whether an environmental impact statement
is required for a proposed action.

(d) "Governmental action" means activities, including projects wholly or partially
conducted, permitted, assisted, financed, regulated, or approved by units of government
including the federal government.

(e) "Governmental unit" means any state agency and any general or special purpose unit
of government in the state including, but not limited to, watershed districts organized under
chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic
development authorities established under sections 469.090 to 469.108, but not including
courts, school districts, new text beginthe Department of new text endIron Range Resources and Rehabilitation, and
regional development commissions other than the Metropolitan Council.

Sec. 9.

Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:


Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make loans or
equity investments in mineral, steel, or any other industry processing, production,
manufacturing, or technology project that would enhance the economic diversification and
that is located within the taconite deleted text beginreliefdeleted text end tax new text beginrelief new text endarea as defined under section 273.134.
The commissioner must, prior to making any loans or equity investments and after
consultation with industry and public officials, develop a strategy for making loans and
equity investments that assists the taconite relief area in retaining and enhancing its economic
competitiveness. Money in the fund may also be used to pay for the costs of carrying out
the commissioner's due diligence duties under this section.

Sec. 10.

Minnesota Statutes 2016, section 116J.424, is amended to read:


116J.424 IRON RANGE RESOURCES AND REHABILITATION deleted text beginBOARDdeleted text end
CONTRIBUTION.

The commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation deleted text beginBoard with approval
by the board
deleted text end,new text begin after consultation with the Legislative Commission on Iron Range Resources
and Rehabilitation and complying with the requirements for expenditures under section
298.22,
new text end may provide an equal match for any loan or equity investment made for a project
located in the tax relief area defined in section 273.134, paragraph (b), by the Minnesota
21st century fund created by section 116J.423. The match may be in the form of a loan or
equity investment, notwithstanding whether the fund makes a loan or equity investment.
The state shall not acquire an equity interest because of an equity investment or loan by the
deleted text begin board and the board at its sole discretion shalldeleted text endnew text begin commissioner of Iron Range resources and
rehabilitation and the commissioner, after consultation with the commission, shall have sole
discretion to
new text end decide what interest deleted text beginitdeleted text end new text beginthe fund new text endacquires in a project. The commissioner of
employment and economic development may require a commitment from the deleted text beginboarddeleted text endnew text begin
commissioner of Iron Range resources and rehabilitation
new text end to make the match prior to
disbursing money from the fund.

Sec. 11.

Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:


Subd. 3.

Subsidy agreement.

(a) A recipient must enter into a subsidy agreement with
the grantor of the subsidy that includes:

(1) a description of the subsidy, including the amount and type of subsidy, and type of
district if the subsidy is tax increment financing;

(2) a statement of the public purposes for the subsidy;

(3) measurable, specific, and tangible goals for the subsidy;

(4) a description of the financial obligation of the recipient if the goals are not met;

(5) a statement of why the subsidy is needed;

(6) a commitment to continue operations in the jurisdiction where the subsidy is used
for at least five years after the benefit date;

(7) the name and address of the parent corporation of the recipient, if any; and

(8) a list of all financial assistance by all grantors for the project.

(b) Business subsidies in the form of grants must be structured as forgivable loans. For
other types of business subsidies, the agreement must state the fair market value of the
subsidy to the recipient, including the value of conveying property at less than a fair market
price, or other in-kind benefits to the recipient.

(c) If a business subsidy benefits more than one recipient, the grantor must assign a
proportion of the business subsidy to each recipient that signs a subsidy agreement. The
proportion assessed to each recipient must reflect a reasonable estimate of the recipient's
share of the total benefits of the project.

(d) The state or local government agency and the recipient must both sign the subsidy
agreement and, if the grantor is a local government agency, the agreement must be approved
by the local elected governing body, except for the St. Paul Port Authority and a seaway
port authority.

(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be
authorized to move from the jurisdiction where the subsidy is used within the five-year
period after the benefit date if, after a public hearing, the grantor approves the recipient's
request to move. For the purpose of this paragraph, if the grantor is a state government
agency other than the new text beginDepartment of new text endIron Range Resources and Rehabilitation deleted text beginBoarddeleted text end,
"jurisdiction" means a city or township.

Sec. 12.

Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:


Subd. 5.

Public notice and hearing.

(a) Before granting a business subsidy that exceeds
$500,000 for a state government grantor and $150,000 for a local government grantor, the
grantor must provide public notice and a hearing on the subsidy. A public hearing and notice
under this subdivision is not required if a hearing and notice on the subsidy is otherwise
required by law.

(b) Public notice of a proposed business subsidy under this subdivision by a state
government grantor, other than the new text begincommissioner of new text endIron Range resources and rehabilitation
deleted text begin Boarddeleted text end, must be published in the State Register. Public notice of a proposed business subsidy
under this subdivision by a local government grantor or the new text begincommissioner of new text endIron Range
resources and rehabilitation deleted text beginBoarddeleted text end must be published in a local newspaper of general
circulation. The public notice must identify the location at which information about the
business subsidy, including a summary of the terms of the subsidy, is available. Published
notice should be sufficiently conspicuous in size and placement to distinguish the notice
from the surrounding text. The grantor must make the information available in printed paper
copies and, if possible, on the Internet. The government agency must provide at least a
ten-day notice for the public hearing.

(c) The public notice must include the date, time, and place of the hearing.

(d) The public hearing by a state government grantor other than the new text begincommissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end must be held in St. Paul.

(e) If more than one nonstate grantor provides a business subsidy to the same recipient,
the nonstate grantors may designate one nonstate grantor to hold a single public hearing
regarding the business subsidies provided by all nonstate grantors. For the purposes of this
paragraph, "nonstate grantor" includes the new text begincommissioner of new text endIron Range resources and
rehabilitation deleted text beginBoarddeleted text end.

(f) The public notice of any public meeting about a business subsidy agreement, including
those required by this subdivision and by subdivision 4, must include notice that a person
with residence in or the owner of taxable property in the granting jurisdiction may file a
written complaint with the grantor if the grantor fails to comply with sections 116J.993 to
116J.995, and that no action may be filed against the grantor for the failure to comply unless
a written complaint is filed.

Sec. 13.

Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:


Subd. 7.

Reports by recipients to grantors.

(a) A business subsidy grantor must monitor
the progress by the recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals and results for two years after
the benefit date or until the goals are met, whichever is later. If the goals are not met, the
recipient must continue to provide information on the subsidy until the subsidy is repaid.
The information must be filed on forms developed by the commissioner in cooperation with
representatives of local government. Copies of the completed forms must be sent to the
local government agency that provided the subsidy or to the commissioner if the grantor is
a state agency. If the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end is the
grantor, the copies must be sent to the board. The report must include:

(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
is tax increment financing;

(2) the hourly wage of each job created with separate bands of wages;

(3) the sum of the hourly wages and cost of health insurance provided by the employer
with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy agreement and an update on achievement
of those goals;

(6) the location of the recipient prior to receiving the business subsidy;

(7) the number of employees who ceased to be employed by the recipient when the
recipient relocated to become eligible for the business subsidy;

(8) why the recipient did not complete the project outlined in the subsidy agreement at
their previous location, if the recipient was previously located at another site in Minnesota;

(9) the name and address of the parent corporation of the recipient, if any;

(10) a list of all financial assistance by all grantors for the project; and

(11) other information the commissioner may request.

A report must be filed no later than March 1 of each year for the previous year. The local
agency and the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end must forward
copies of the reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
requirements of this subdivision, except that the report of the recipient must include instead:

(1) the type, public purpose, and amount of the financial assistance, and type of district
if the assistance is tax increment financing;

(2) progress towards meeting goals stated in the assistance agreement and the public
purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage of each job created with
separate bands of wages;

(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;

(5) the location of the recipient prior to receiving the assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local government agency must mail
the recipient a warning within one week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a report, the recipient must
pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
maximum penalty shall not exceed $1,000.

Sec. 14.

Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of
the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections
469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
economic development authority established under sections 469.090 to 469.108; a
redevelopment agency as defined in sections 469.152 to 469.165; thenew text begin commissioner ofnew text end Iron
Range resources and rehabilitation deleted text beginBoarddeleted text end established under section 298.22; a municipality
that is administering a development district created under sections 469.124 to 469.133 or
any special law; a municipality that undertakes a project under sections 469.152 to 469.165,
except a town located outside the metropolitan area as defined in section 473.121, subdivision
2
, or with a population of 5,000 persons or less; or a municipality that exercises the powers
of a port authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
also includes any county.

Sec. 15.

Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:


Subdivision 1.

Definition.

For the purposes of this section, the term "innovative energy
project" means a proposed energy-generation facility or group of facilities which may be
located on up to three sites:

(1) that makes use of an innovative generation technology utilizing coal as a primary
fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur
dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
technologies;

(2) that the project developer or owner certifies is a project capable of offering a long-term
supply contract at a hedged, predictable cost; and

(3) that is designated by the commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation
deleted text begin Boarddeleted text end as a project that is located in the taconite tax relief area on a site that has substantial
real property with adequate infrastructure to support new or expanded development and
that has received prior financial and other support from the board.

Sec. 16.

Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:


Subd. 8.

Municipality.

"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area,
the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion thereof
that is located in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation and population
of the entire municipality. A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural use.
The new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end and the commissioner
of revenue shall jointly make this determination annually and shall notify those municipalities
that are ineligible to participate in the tax base sharing program provided in this chapter for
the following year.new text begin Before making the determination, the commissioner of Iron Range
resources and rehabilitation must consult the Legislative Commission on Iron Range
Resources and Rehabilitation.
new text end

Sec. 17.

Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:


Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the new text begincommissioner of new text endIron Range resources and
rehabilitation deleted text beginBoarddeleted text endnew text begin, after consultation with the Legislative Commission on Iron Range
Resources and Rehabilitation,
new text end to be used for the purposes of the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
.

(b) The allocation under paragraph (a) shall only be made after the new text begincommissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin, after consultation with the Legislative
Commission on Iron Range Resources and Rehabilitation,
new text end has certified by June 30 that the
Iron Range school consolidation and cooperatively operated account has insufficient funds
to make payments as authorized under section 298.28, subdivision 7a.

Sec. 18.

Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:


Subd. 8.

Certification of values; payment.

The administrative auditor shall determine
for each county the difference between the total levy on distribution value pursuant to
subdivision 3, clause (1), including the school fund allocation within the county and the
total tax on contribution value pursuant to subdivision 7, within the county. On or before
May 16 of each year, the administrative auditor shall certify the differences so determined
and the county's portion of the school fund allocation to each county auditor. In addition,
the administrative auditor shall certify to those county auditors for whose county the total
tax on contribution value exceeds the total levy on distribution value the settlement the
county is to make to the other counties of the excess of the total tax on contribution value
over the total levy on distribution value in the county. On or before June 15 and November
15 of each year, each county treasurer in a county having a total tax on contribution value
in excess of the total levy on distribution value shall pay one-half of the excess to the other
counties in accordance with the administrative auditor's certification. On or before June 15
and November 15 of each year, each county treasurer shall pay to the administrative auditor
that county's share of the school fund allocation. On or before December 1 of each year,
the administrative auditor shall pay the school fund allocation to the new text begincommissioner of new text endIron
Range resources and rehabilitation deleted text beginBoarddeleted text end for deposit in the Iron Range school consolidation
and cooperatively operated account.

Sec. 19.

Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:


Subdivision 1.

Development.

In any county where the county board by proper resolution
sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
deleted text begin with the approval of the boarddeleted text endnew text begin, after consultation with the Legislative Commission on Iron
Range Resources and Rehabilitation,
new text end may upon request of the county board assist said
county in carrying out any project for the long range development of its forest resources
through matching of funds or otherwise.

Sec. 20.

Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:


Subd. 3.

Not to affect commissioner of Iron Range resourcesnew text begin and rehabilitationnew text end.

Nothing herein shall be construed to limit or abrogate the authority of the commissioner of
Iron Range resourcesnew text begin and rehabilitationnew text end to give temporary assistance to any county in the
development of its land use program.

Sec. 21.

Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:


Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue of the
state of Minnesotanew text begin, except that when used in sections 298.22 to 298.227 and 298.291 to
298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation
new text end.

Sec. 22.

Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Commission. new text end

new text begin "Commission" means the Legislative Commission on Iron
Range Resources and Rehabilitation, as established under section 298.22.
new text end

Sec. 23.

Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:


Subdivision 1.

Within taconite assistance area.

The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:

(1) five percent to the city or town within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one taxing
district, the commissioner shall apportion equitably the proceeds among the cities and towns
by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction,
and the remainder to the concentrating plant and to the processes of concentration, and with
respect to each thereof giving due consideration to the relative extent of the respective
operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282;

(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;

(5) 20 percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) five percent to the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end
for the purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund; and

(9) seven percent to the taconite environmental protection fund.

The proceeds of the tax shall be distributed on July 15 each year.

Sec. 24.

Minnesota Statutes 2016, section 298.17, is amended to read:


298.17 OCCUPATION TAXES TO BE APPORTIONED.

(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.

(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually to the
commissioner of natural resources to fund agency staff to work on environmental issues
and provide regulatory services for ferrous and nonferrous mining operations in this state.
Payment to the mining environmental and regulatory account shall be made by July 1
annually. The commissioner of natural resources shall execute an interagency agreement
with the Pollution Control Agency to assist with the provision of environmental regulatory
services such as monitoring and permitting required for ferrous and nonferrous mining
operations; (2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end account in the special revenue fund an amount equal to that which
would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
ton produced in the preceding calendar year, to be expended for the purposes of section
298.22; and (3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account shall be made by May 15 annually.

(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b)
, or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to thenew text begin commissioner ofnew text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end
regarding the loans. Payment to the Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account
shall be made by May 15 annually.

(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.

Sec. 25.

Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginThe Office of Commissionerdeleted text endnew text begin Departmentnew text end of Iron Range Resources
and Rehabilitation.

(a) The deleted text beginOffice of the Commissionerdeleted text endnew text begin Departmentnew text end of Iron Range
Resources and Rehabilitation is created as an agency in the executive branch of state
government. The governor shall appoint the commissioner of Iron Range resources and
rehabilitation under section 15.06.

(b) The commissioner may hold other positions or appointments that are not incompatible
with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
may appoint a deputy commissioner. All expenses of the commissioner, including the
payment of staff and other assistance as may be necessary, must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
options available under section 471.345 when the commissioner determines it is in the best
interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.

(c) When the commissioner determines that distress and unemployment exists or may
exist in the future in any county by reason of the removal of natural resources or a possibly
limited use of natural resources in the future and any resulting decrease in employment, the
commissioner may use whatever amounts of the appropriation made to the commissioner
of revenue in section 298.28 that are determined to be necessary and proper in the
development of the remaining resources of the county and in the vocational training and
rehabilitation of its residentsdeleted text begin, except that the amount needed to cover cost overruns awarded
to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
effect after July 1, 1985, is appropriated from the general fund
deleted text end. For the purposes of this
section, "development of remaining resources" includes, but is not limited to, the promotion
of tourism.

new text begin (d) The commissioner shall annually submit a budget proposal to the Legislative
Commission on Iron Range Resources and Rehabilitation. The commission must review
and make recommendations on the commissioner's budget proposal and the governor must
approve the commissioner's budget proposal as provided in subdivisions 1b, 1c, and 11.
This paragraph applies to transfers and expenditures from the following funds or accounts:
new text end

new text begin (1) the taconite area environmental protection fund under section 298.223, including
grants under section 298.2961;
new text end

new text begin (2) the Douglas J. Johnson economic protection trust fund under sections 298.291 to
298.298, including grants under section 298.2961;
new text end

new text begin (3) the Iron Range resources and rehabilitation account in the special revenue fund;
new text end

new text begin (4) the Iron Range school consolidation and cooperatively operated school account under
section 298.28, subdivision 7a, except as provided under paragraph (e);
new text end

new text begin (5) the Minnesota 21st century fund match requirements under section 116J.424; and
new text end

new text begin (6) the Iron Range higher education account under section 298.28, subdivision 9d.
new text end

new text begin (e) Paragraph (d) does not apply to expenditures for:
new text end

new text begin (1) the commissioner's obligations under sections 298.221; 298.2211, subdivision 4;
298.225, subdivision 2; and 298.292, subdivision 2, clause (3);
new text end

new text begin (2) payments of amounts authorized under section 298.28, subdivisions 2, 3, 4, 5, 6, 7a,
clause (4), and 9a; or
new text end

new text begin (3) other expenditures required to pay bonds or binding contracts entered into prior to
the effective date of this section.
new text end

Sec. 26.

Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:


Subd. 1a.

new text beginLegislative Commission on new text endIron Range Resources and Rehabilitation
deleted text begin Boarddeleted text end.

new text begin(a) new text endThe new text beginLegislative Commission on new text endIron Range Resources and Rehabilitation deleted text beginBoarddeleted text endnew text begin
is created in the legislative branch. The commissioner shall consult the commission before
making expenditures or undertaking projects authorized under this chapter. The commission
new text end
consists of the state senators and representatives elected from state senatorial or legislative
districts in which one-third or more of the residents reside in a taconite assistance area as
defined in section 273.1341. One additional state senator shall also be appointed by the
senate Subcommittee on Committees of the Committee on Rules and Administration. deleted text beginAll
expenditures and projects made by the commissioner shall first be submitted to the board
for approval. The expenses of the board shall be paid by the state from the funds raised
pursuant to this section.
deleted text end Members of the board may be reimbursed for expenses in the
manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per diem
payments during the interims between legislative sessions in the manner provided in section
3.099, subdivision 1.

deleted text begin The members shall be appointed in January of every odd-numbered year, and shall serve
until January of the next odd-numbered year. Vacancies on the board shall be filled in the
same manner as original members were chosen.
deleted text end

new text begin (b) The most senior legislator will serve as temporary chair for the purposes of convening
the first meeting, at which members shall develop procedures to elect a chair. The chair
shall preside and convene meetings as often as necessary to conduct duties prescribed by
this chapter. The commission must meet at least quarterly to review the actions of the
commissioner.
new text end

new text begin (c) The appointed legislative member shall serve on the commission for a two-year term,
beginning January 1 of each odd-numbered year. The appointed legislative member serves
until their successor is appointed and qualified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. The
additional state senator shall be appointed under this section no later than July 1, 2018.
new text end

Sec. 27.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Evaluation of proposed budgets and projects. new text end

new text begin (a) In evaluating budgets
proposed by the commissioner, the commission must consider factors including but not
limited to the extent to which the proposed budget:
new text end

new text begin (1) contributes to increasing the effectiveness of promoting or managing Iron Range
economic and workforce development, community development, minerals and natural
resources development, and any other issue as determined by the commission; and
new text end

new text begin (2) advances the strategic plan adopted under subdivision 1c.
new text end

new text begin (b) In evaluating projects proposed by the commissioner, the commission must consider
factors including but not limited to:
new text end

new text begin (1) whether, and the extent to which, an applicant could complete the proposed project
without funding from the commissioner;
new text end

new text begin (2) job creation or retention goals for the proposed project, including but not limited to
wages and benefits; whether the jobs created are full time, part time, temporary, or permanent;
and whether the stated job creation or retention goals in the proposal can be adequately
measured using methods established by the commissioner;
new text end

new text begin (3) how and to what extent the proposed project is expected to impact the economic
climate of the Iron Range resources and rehabilitation services area;
new text end

new text begin (4) how the proposed project would meet match requirements, if any; and
new text end

new text begin (5) whether the proposed project meets the written objectives, priorities, and policies
established by the commissioner.
new text end

Sec. 28.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1c. new text end

new text begin Strategic plan required. new text end

new text begin The commissioner, in consultation with the
commission, shall adopt a strategic plan for making expenditures including identifying the
priority areas for funding for the next six years. The strategic plan must be reviewed every
two years. The strategic plan must have clearly stated short- and long-term goals and
strategies for expenditures, provide measurable outcomes for expenditures, and determine
areas of emphasis for funding.
new text end

Sec. 29.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1d. new text end

new text begin Administrative and staff assistance. new text end

new text begin The Legislative Coordinating
Commission shall provide administrative and staff support to the commission. The
commissioner shall provide additional information and research assistance to the commission,
as requested by the commission.
new text end

Sec. 30.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1e. new text end

new text begin Expenses of the commission. new text end

new text begin All expenses of the commission, including the
payment of per diems and expenses under subdivision 1a must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
new text end

Sec. 31.

Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:


Subd. 5a.

Forest trust.

The commissioner, deleted text beginupon approval by the boarddeleted text endnew text begin after consultation
with the commission
new text end, may purchase forest lands in the taconite assistance area defined deleted text beginindeleted text end
under section 273.1341 with funds specifically authorized for the purchase. The acquired
forest lands must be held in trust for the benefit of the citizens of the taconite assistance
area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
and developed for recreation and economic development purposes. The commissioner, deleted text beginupon
approval by the board
deleted text endnew text begin after consultation with the commissionnew text end, may sell forest lands purchased
under this subdivision if the deleted text beginboard findsdeleted text end new text begincommissioner determines new text endthat the sale advances
the purposes of the trust. Proceeds derived from the management or sale of the lands and
from the sale of timber or removal of gravel or other minerals from these forest lands shall
be deposited into an Iron Range Miners' Memorial Forest account that is established within
the state financial accounts. Funds may be expended from the account deleted text beginupon approval by
the board
deleted text endnew text begin by the commissioner, after consultation with the commissionnew text end, to purchase, manage,
administer, convey interests in, and improve the forest lands. deleted text beginWith approval by the board,deleted text endnew text begin
After consultation with the commission, the commissioner may transfer
new text end money in the Iron
Range Miners' Memorial Forest account deleted text beginmay be transferreddeleted text end into the corpus of the Douglas
J. Johnson economic protection trust fund established under sections 298.291 to 298.294.
The property acquired under the authority granted by this subdivision and income derived
from the property or the operation or management of the property are exempt from taxation
by the state or its political subdivisions while held by the forest trust.new text begin The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.
new text end

Sec. 32.

Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:


Subd. 6.

Private entity participation.

The deleted text beginboarddeleted text end new text begincommissioner, after consultation with
the commission,
new text endmay acquire an equity interest in any project for which deleted text beginitdeleted text endnew text begin the commissionernew text end
provides funding. The commissioner maynew text begin, after consultation with the commission,new text end establish,
participate in the management of, and dispose of the assets of charitable foundations,
nonprofit limited liability companies, and nonprofit corporations associated with any project
for which deleted text beginitdeleted text endnew text begin the commissionernew text end provides funding, including specifically, but without limitation,
a corporation within the meaning of section 317A.011, subdivision 6.new text begin The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.
new text end

Sec. 33.

Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:


Subd. 10.

Sale or privatization of functions.

The commissioner deleted text beginof Iron Range resources
and rehabilitation
deleted text end may not sell or privatize the Ironworld Discovery Center or Giants Ridge
Golf and Ski Resort without deleted text beginprior approval by the boarddeleted text endnew text begin first seeking the recommendation
of the commission
new text end.

Sec. 34.

Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:


Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the deleted text beginIron Range Resources and Rehabilitation Boarddeleted text endnew text begin commissionnew text end. After new text beginthe
commission has been consulted, its recommendations and the commissioner's budget shall
be submitted to the governor. Once
new text endthe budget is approved by deleted text beginthe board anddeleted text end the governor,
the commissioner may spend money in accordance with the approved budget.new text begin If unanticipated
needs for funds arise outside of the annual budget process, the commissioner must consult
the commission and receive the governor's approval before spending the funds.
new text end

Sec. 35.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin Grants and loans; requirements. new text end

new text begin (a) Prior to awarding any grants or approving
loans from any fund or account from which the commissioner has the authority under law
to expend money, the commissioner must evaluate applications based on criteria including,
but not limited to:
new text end

new text begin (1) whether, and the extent to which, an applicant could complete a project without
funding from the commissioner;
new text end

new text begin (2) job creation or retention goals for the project, including but not limited to wages and
benefits, and whether the jobs created are full time, part time, temporary, or permanent;
new text end

new text begin (3) whether the applicant's stated job creation or retention goals can be adequately
measured using methods established by the commissioner;
new text end

new text begin (4) how and to what extent the project proposed by the applicant is expected to impact
the economic climate of the Iron Range resources and rehabilitation services area;
new text end

new text begin (5) how the applicant would meet match requirements, if any; and
new text end

new text begin (6) whether the project for which a grant or loan application has been submitted meets
the written objectives, priorities, and policies established by the commissioner.
new text end

new text begin (b) The commissioner, if appropriate, must include incentives in loan and grant award
agreements to promote and assist grant recipients in achieving the stated job creation and
retention objectives established by the commissioner.
new text end

new text begin (c) For all loans and grants awarded from funds under the commissioner's authority
pursuant to this chapter, the commissioner must:
new text end

new text begin (1) create and maintain a database for tracking loan and grant awards;
new text end

new text begin (2) create and maintain an objective mechanism for measuring job creation and retention;
new text end

new text begin (3) verify achievement of job creation and retention goals by grant and loan recipients;
new text end

new text begin (4) monitor grant and loan awards to ensure that projects comply with applicable Iron
Range resources and rehabilitation policies; and
new text end

new text begin (5) verify that grant or loan recipients have met applicable matching fund requirements.
new text end

Sec. 36.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 14. new text end

new text begin Expenditures; taconite assistance area. new text end

new text begin Expenditures subject to the
requirements of this section may be expended only within or for the benefit of the taconite
assistance area defined in section 273.1341.
new text end

Sec. 37.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 15. new text end

new text begin Reports to the legislature. new text end

new text begin The commissioner shall submit to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over economic development policy an annual report of expenditures
under this section.
new text end

Sec. 38.

Minnesota Statutes 2016, section 298.221, is amended to read:


298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
to the terms of any contract entered into by the state under authority of section 298.22 and
any fees which may, in the discretion of the commissioner of Iron Range resources and
rehabilitation, be charged in connection with any project pursuant to that section as amended,
shall be deposited in the state treasury to the credit of the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end account in the special revenue fund and are hereby appropriated for
the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
of the Iron Range resources and rehabilitation deleted text beginBoarddeleted text end for payment of advertising contracts
if the commissioner determines that the merchandise can be used for special event prizes
or mementos at facilities operated by the deleted text beginboarddeleted text endnew text begin commissionernew text end. Nothing in this paragraph
authorizes the commissioner or a member of the deleted text beginboarddeleted text endnew text begin commissionnew text end to receive merchandise
for personal use.

(c) All fees charged by the commissioner in connection with public use of the state-owned
ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
by the commissioner from the operation or lease of those facilities and from the lease, sale,
or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
deposited into an Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account are
appropriated to the commissioner deleted text beginto be expended, subject to approval by the boarddeleted text end,new text begin and
may only be used,
new text end as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 39.

Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:


Subd. 3.

Project approval.

deleted text beginAll projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
by the board
deleted text endnew text begin To get approval of a project under this section, the commissioner must comply
with all the requirements for expenditures under section 298.22
new text end. Prior to the commencement
of a project involving the exercise by the commissioner of any authority of sections 469.174
to 469.179, the governing body of each municipality in which any part of the project is
located and the county board of any county containing portions of the project not located
in an incorporated area shall by majority vote approve or disapprove the project. deleted text beginAny project
approved by the board and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.
deleted text end

Sec. 40.

Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:


Subd. 6.

Fee setting.

Fees for admission to or use of facilities operated by the
new text begin commissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end that have been established
according to prevailing market conditions and to recover operating costs need not be set by
rule.

Sec. 41.

Minnesota Statutes 2016, section 298.2212, is amended to read:


298.2212 INVESTMENT OF FUNDS.

All funds credited to the Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account in the
special revenue fund for the purposes of section 298.22 must be invested pursuant to law.
The net interest and dividends from the investments are included and become part of the
funds available for purposes of section 298.22.

Sec. 42.

Minnesota Statutes 2016, section 298.2214, subdivision 2, is amended to read:


Subd. 2.

Iron Range Higher Education Committee; membership.

The members of
the committee shall consist of:

(1) one member appointed by the governor;

(2) one member appointed by the president of the University of Minnesota;

(3) four members of the new text beginLegislative Commission on new text endIron Range Resources and
Rehabilitation deleted text beginBoarddeleted text end appointed by the chair;

(4) the commissioner of Iron Range resources and rehabilitation; and

(5) the president of the Northeast Higher Education District or its successor.

Sec. 43.

Minnesota Statutes 2016, section 298.223, is amended to read:


298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.

Subdivision 1.

Creation; purposes.

A fund called the taconite environmental protection
fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
Minnesota located within the taconite assistance area defined in section 273.1341, that are
adversely affected by the environmentally damaging operations involved in mining taconite
and iron ore and producing iron ore concentrate and for the purpose of promoting the
economic development of northeast Minnesota. The taconite environmental protection fund
shall be used for the following purposes:

(1) to initiate investigations into matters thenew text begin commissioner ofnew text end Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end determines are in need of study and which will determine the
environmental problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
by state law;

(3) local economic development projects deleted text beginbut only if those projects are approved by the
board,
deleted text end and public works, including construction of sewer and water systems located within
the taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;
and

(5) local public works projects under section 298.227, paragraph (c).

Subd. 2.

Administration.

deleted text begin(a)deleted text end The taconite area environmental protection fund shall be
administered by the commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation deleted text beginBoard.
The commissioner shall by September 1 of each year submit to the board a list of projects
to be funded from the taconite area environmental protection fund, with such supporting
information including description of the projects, plans, and cost estimates as may be
necessary.
deleted text endnew text begin in compliance with the requirements for expenditures under section 298.22.
new text end

deleted text begin (b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including construction
of sewer and water systems, as specified under subdivision 1, clause (3). The Iron Range
Resources and Rehabilitation Board may waive the requirements of this paragraph.
deleted text end

deleted text begin (c) Upon approval by the board, the list of projects approved under this subdivision shall
be submitted to the governor by November 1 of each year. By December 1 of each year,
the governor shall approve or disapprove, or return for further consideration, each project.
Funds for a project may be expended only upon approval of the project by the board and
the governor. The commissioner may submit supplemental projects to the board and governor
for approval at any time.
deleted text end

Subd. 3.

Appropriation.

There is annually appropriated to the commissioner of Iron
Range resources and rehabilitation taconite area environmental protection funds necessary
to carry out approved projects and programs and the funds necessary for administration of
this section. Annual administrative costs, not including detailed engineering expenses for
the projects, shall not exceed five percent of the amount annually expended from the fund.

Funds for the purposes of this section are provided by section 298.28, subdivision 11,
relating to the taconite area environmental protection fund.

Sec. 44.

Minnesota Statutes 2016, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
new text begin commissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end in a separate taconite
economic development fund for each taconite and direct reduced ore producer. Money from
the fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees. The
review must be completed no later than six months after the producer presents a proposal
for expenditure of the funds to the committee. The funds held pursuant to this section may
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure equal to
the amount of the distribution to be used for the same purpose beginning with distributions
in 2014. Effective for proposals for expenditures of money from the fund beginning May
26, 2007, the commissioner may not release the funds before the next scheduled meeting
of the board. If a proposed expenditure is not approved deleted text beginby the boarddeleted text endnew text begin under the requirements
for expenditures under section 298.22
new text end, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. deleted text beginIf a producer uses money
which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
mobile equipment, or mining shovels, and the producer removes the piece of equipment
from the taconite tax relief area defined in section 273.134 within ten years from the date
of receipt of the money from the fund, a portion of the money granted from the fund must
be repaid to the taconite economic development fund. The portion of the money to be repaid
is 100 percent of the grant if the equipment is removed from the taconite tax relief area
within 12 months after receipt of the money from the fund, declining by ten percent for
each of the subsequent nine years during which the equipment remains within the taconite
tax relief area.
deleted text end If a taconite production facility is sold after operations at the facility had
ceased, any money remaining in the fund for the former producer may be released to the
purchaser of the facility on the terms otherwise applicable to the former producer under this
section. If a producer fails to provide matching funds for a proposed expenditure within six
months after the commissioner approves release of the funds, the funds are available for
release to another producer in proportion to the distribution provided and under the conditions
of this section. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section 298.223 and the Douglas J. Johnson economic protection
trust fund created in section 298.292 for placement in their respective special accounts.
Two-thirds of the unreleased funds shall be distributed to the taconite environmental
protection fund and one-third to the Douglas J. Johnson economic protection trust fund.

deleted text begin (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed under
paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
wood product facility located in the taconite tax relief area and in a county that contains a
city of the first class. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of the
loan or grant is subject to approval by the board. If the money is provided as a loan, interest
must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
Repayments of the loan and interest, if any, must be deposited in the taconite environment
protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
paragraph by July 1, 2012, the amount that had been made available for the loan under this
paragraph must be transferred to the taconite environment protection fund under sections
298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
pro rata basis.
deleted text end

deleted text begin (c) Repayment or transfer of money to the taconite environmental protection fund under
paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
Board for public works projects in house legislative districts in the same proportion as
taxable tonnage of production in 2007 in each house legislative district, for distribution in
2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
Notwithstanding any other law to the contrary, expenditures under this paragraph do not
require approval by the governor. For purposes of this paragraph, "house legislative districts"
means the legislative districts in existence on May 15, 2009.
deleted text end

Sec. 45.

Minnesota Statutes 2016, section 298.27, is amended to read:


298.27 COLLECTION AND PAYMENT OF TAX.

The taxes provided by section 298.24 shall be paid directly to each eligible county and
the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end. The commissioner of
revenue shall notify each producer of the amount to be paid each recipient prior to February
15. Every person subject to taxes imposed by section 298.24 shall file a correct report
covering the preceding year. The report must contain the information required by the
commissionernew text begin of revenuenew text end. The report shall be filed by each producer on or before February
1. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be
paid on or before February 24. A remittance equal to the remaining total tax required to be
paid hereunder shall be paid on or before August 24. On or before February 25 and August
25, the county auditor shall make distribution of the payments previously received by the
county in the manner provided by section 298.28. Reports shall be made and hearings held
upon the determination of the tax in accordance with procedures established by the
commissioner of revenue. The commissioner of revenue shall have authority to make
reasonable rules as to the form and manner of filing reports necessary for the determination
of the tax hereunder, and by such rules may require the production of such information as
may be reasonably necessary or convenient for the determination and apportionment of the
tax. All the provisions of the occupation tax law with reference to the assessment and
determination of the occupation tax, including all provisions for appeals from or review of
the orders of the commissioner of revenue relative thereto, but not including provisions for
refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent
herewith. If any person subject to section 298.24 shall fail to make the report provided for
in this section at the time and in the manner herein provided, the commissioner of revenue
shall in such case, upon information possessed or obtained, ascertain the kind and amount
of ore mined or produced and thereon find and determine the amount of the tax due from
such person. There shall be added to the amount of tax due a penalty for failure to report
on or before February 1, which penalty shall equal ten percent of the tax imposed and be
treated as a part thereof.

If any person responsible for making a tax payment at the time and in the manner herein
provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount
so due, which penalty shall be treated as part of the tax due.

In the case of any underpayment of the tax payment required herein, there may be added
and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.

A person having a liability of $120,000 or more during a calendar year must remit all
liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401, must be on or before the
date the tax is due. If the date the tax is due is not a funds transfer business day, as defined
in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the
funds transfer business day next following the date the tax is due.

Sec. 46.

Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:


Subd. 7.

Iron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin accountnew text end.

For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text endnew text begin accountnew text end for the purposes of section 298.22. That amount shall be
increased for distribution years 1999 through 2014 and for distribution in 2018 and
subsequent years in the same proportion as the increase in the implicit price deflator as
provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision
shall be expended within or for the benefit of the taconite assistance area defined in section
273.1341new text begin and in compliance with the requirements for expenditures under section 298.22new text end.deleted text begin
No part of the fund provided in this subdivision may be used to provide loans for the
operation of private business unless the loan is approved by the governor.
deleted text end

Sec. 47.

Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:


Subd. 7a.

Iron Range school consolidation and cooperatively operated school account.

(a) The following amounts must be allocated to the Iron Range resources and rehabilitationdeleted text begin
Board
deleted text endnew text begin accountnew text end to be deposited in the Iron Range school consolidation and cooperatively
operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
under section 298.24; and

(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third
to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(4) any other amount as provided by law.

(b) Expenditures from this account shall be made only to provide disbursements to assist
school districts with the payment of bonds that were issued for qualified school projects,
or for any other school disbursement as approved by the new text begincommissioner of new text endIron Range
resources and rehabilitation deleted text beginBoarddeleted text endnew text begin, after consultation with the commissionnew text end. For purposes
of this section, "qualified school projects" means school projects within the taconite assistance
area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
2006; and (2) approved by the commissioner of education pursuant to section 123B.71.

(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.

(d) No expenditure under this section shall be made unless deleted text beginapproved by seven members
of the Iron Range Resources and Rehabilitation Board
deleted text endnew text begin the commissioner has complied with
the requirements for expenditures under section 298.22
new text end.

Sec. 48.

Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:


Subd. 9c.

Distribution; city of Eveleth.

0.20 cent per taxable ton must be paid to the
city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the
Hockey Hall of Fame, provided that it continues to operate in that city, and provided that
the city of Eveleth certifies to the St. Louis County auditor that it has received donations
for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame
ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and
the governing body of the city determines that it is unlikely to resume operation there within
a six-month period, the distribution under this subdivision shall be made to the new text begincommissioner
of
new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end.

Sec. 49.

Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:


Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must be
deleted text begin allocated to the Iron Range Resources and Rehabilitation Board to bedeleted text end deposited in an Iron
Range higher education account that is hereby created, to be used for higher education
programs conducted at educational institutions in the taconite assistance area defined in
section 273.1341. The Iron Range Higher Education committee under section 298.2214,
and the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin, after complying
with all the requirements for expenditures under section 298.22,
new text end must approve all
expenditures from the account.

Sec. 50.

Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:


Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
interest earned on all money distributed under this section prior to distribution, shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows:
Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund. The proceeds shall be placed in the respective
special accounts.

(b) There shall be distributed to each city, town, and county the amount that it received
under new text beginMinnesota Statutes 1978, new text endsection 294.26new text begin,new text end in calendar year 1977; provided, however,
that the amount distributed in 1981 to the unorganized territory number 2 of Lake County
and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company
will be distributed in 1982 and subsequent years to the unorganized territory number 2 of
Lake County and the towns of Beaver Bay and Stony River based on the miles of track of
Erie Mining Company in each taxing district.

(c) There shall be distributed to the Iron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin accountnew text end
the amounts it received in 1977 under new text beginMinnesota Statutes 1978, new text endsection 298.22. The amount
distributed under this paragraph shall be expended within or for the benefit of the taconite
assistance area defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under new text beginMinnesota Statutes 1978, new text endsection 294.26new text begin,new text end in calendar year 1977.

Sec. 51.

Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:


Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner deleted text beginupon approval by the boarddeleted text endnew text begin, after consultation with the commissionnew text end. The net
proceeds must be deposited in the trust fund for the purposes and uses of this section.

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 52.

Minnesota Statutes 2016, section 298.296, is amended to read:


298.296 OPERATION OF FUND.

Subdivision 1.

Project approval.

The deleted text beginboard anddeleted text end commissioner deleted text beginshall by August 1 of
each year prepare a list of projects to be funded from the Douglas J. Johnson economic
protection trust with necessary supporting information including description of the projects,
plans, and cost estimates
deleted text endnew text begin must comply with the requirements for expenditures under section
298.22
new text end. deleted text beginThesedeleted text end Projects shall be consistent with the priorities established in section 298.292
and shall not be deleted text beginapproved by the board unless itdeleted text endnew text begin proposed by the commissioner unless the
commissioner
new text end finds that:

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

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

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

deleted text begin Each project must be approved by over one-half of all of the members of the board and
the commissioner of Iron Range resources and rehabilitation. The list of projects shall be
submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
or return for further consideration, each project. The money for a project may be expended
only upon approval of the project by the governor. The board may submit supplemental
projects for approval at any time.
deleted text end

Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended on
projects and for administration of the trust fund only from the net interest, earnings, and
dividends arising from the investment of the trust at any time, including net interest, earnings,
and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
to make school bond payments and payments to recipients of taconite production tax proceeds
pursuant to section 298.225, may be taken from the corpus of the trust.

(b) Additionally, deleted text beginupon recommendation by the board,deleted text endnew text begin the commissioner, after consulting
the commission, may choose to make
new text end up to $13,000,000 from the corpus of the trust deleted text beginmay
be made
deleted text end available for use as provided in subdivision 4, and up to $10,000,000 from the
corpus of the trust may be made available for use as provided in section 298.2961.

(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
section 17, may be expended on projects. deleted text beginFundsdeleted text endnew text begin The commissionernew text end may deleted text beginbe expendeddeleted text endnew text begin expend
funds
new text end for projects under this paragraph only if deleted text beginthe projectdeleted text end:

(1) new text beginthe project new text endis for the purposes established under section 298.292, subdivision 1,
clause (1) or (2); and

(2) deleted text beginis approved by two-thirds of all of the members of the boarddeleted text endnew text begin the commissioner
complied with the requirements for expenditures under section 298.22
new text end.

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the new text beginDepartment of new text endIron Range resources and
rehabilitation deleted text beginBoarddeleted text end or expenses relating to any facilities owned or operated by the deleted text beginboarddeleted text endnew text begin
commissioner
new text end on May 18, 2002.

(d) deleted text beginUpon recommendation by a unanimous vote of all members of the board,deleted text endnew text begin The
commissioner may spend
new text end amounts in addition to those authorized under paragraphs (a), (b),
and (c) deleted text beginmay be expendeddeleted text end on projects described in section 298.292, subdivision 1new text begin, if the
commissioner complies with the requirements for expenditures under section 298.22
new text end.

(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) Principal and interest received in repayment of loans made pursuant to this section,
and earnings on other investments made under section 298.292, subdivision 2, clause (4),
shall be deposited in the state treasury and credited to the trust. These receipts are
appropriated to the board for the purposes of sections 298.291 to 298.298.

(g) Additionally, notwithstanding section 298.293, deleted text beginupon the approval of the boarddeleted text endnew text begin if the
commissioner complies with the requirements for expenditures under section 298.22
new text end, money
from the corpus of the trust may be expanded to purchase forest lands within the taconite
assistance area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2,
clause (5).

Subd. 3.

Administration.

The commissioner deleted text beginand staffdeleted text end of deleted text beginthedeleted text end Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end shall administer the program under which funds are expended pursuant
to sections 298.292 to 298.298.

Subd. 4.

Temporary loan authority.

(a) deleted text beginThe board may recommend thatdeleted text end new text beginIf the
commissioner complies with the requirements for expenditures under section 298.22, the
commissioner may use
new text endup to $7,500,000 from the corpus of the trust deleted text beginmay be useddeleted text end for loans,
loan guarantees, grants, or equity investments as provided in this subdivision. The money
would be available for loans for construction and equipping of facilities constituting (1) a
value added iron products plant, which may be either a new plant or a facility incorporated
into an existing plant that produces iron upgraded to a minimum of 75 percent iron content
or any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or
minerals processing plant for any mineral subject to the net proceeds tax imposed under
section 298.015. A loan or loan guarantee under this paragraph may not exceed $5,000,000
for any facility.

(b) Additionally, deleted text beginthe board must reservedeleted text end the first $2,000,000 of the net interest, dividends,
and earnings arising from the investment of the trust after June 30, 1996, deleted text beginto be useddeleted text endnew text begin must
be reserved
new text end for grants, loans, loan guarantees, or equity investments for the purposes set
forth in paragraph (a). This amount must be reserved until it is used as described in this
subdivision.

(c) Additionally, deleted text beginthe board may recommend thatdeleted text end up to $5,500,000 from the corpus of
the trust may be used for additional grants, loans, loan guarantees, or equity investments
for the purposes set forth in paragraph (a).

(d) The deleted text beginboarddeleted text endnew text begin commissioner, after consultation with the commission,new text end may require thatdeleted text begin
it
deleted text endnew text begin the fundnew text end receive an equity percentage in any project to which it contributes under this
section.

Sec. 53.

Minnesota Statutes 2016, section 298.2961, is amended to read:


298.2961 PRODUCER GRANTS.

Subdivision 1.

Appropriation.

(a) $10,000,000 is appropriated from the Douglas J.
Johnson economic protection trust fund to a special account in the taconite area environmental
protection fund for grants to producers on a project-by-project basis as provided in this
section.

(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
appropriated for grants to producers on a project-by-project basis as provided in this section.

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added iron
products plant.

(b) deleted text beginTo be proposed by the board, a project must be approved by the board. The money
for a project may be spent only upon approval of the project by the governor. The board
may submit supplemental projects for approval at any time
deleted text endnew text begin For all such projects, the
commissioner must comply with the requirements for expenditures under section 298.22
new text end.

(c) The deleted text beginboarddeleted text endnew text begin commissioner, after consultation with the commission,new text end may require that
deleted text begin itdeleted text endnew text begin the fundnew text end receive an equity percentage in any project to which it contributes under this
section.

Subd. 3.

Redistribution.

(a) If a taconite production facility is sold after operations at
the facility had ceased, any money remaining in the taconite environmental fund for the
former producer may be released to the purchaser of the facility on the terms otherwise
applicable to the former producer under this section.

(b) Any portion of the taconite environmental fund that is not released by the
commissioner within three years of its deposit in the taconite environmental fund shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds must be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.

Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions under
section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
Any grant or loan made under this subdivision must deleted text beginbe approved by the board, established
under section 298.22
deleted text endnew text begin comply with the requirements for expenditures under section 298.22new text end.

(b) All distributions received in 2009 and subsequent years are allocated for projects
under section 298.223, subdivision 1.

Sec. 54.

Minnesota Statutes 2016, section 298.297, is amended to read:


298.297 ADVISORY COMMITTEES.

Before submission of a project to the deleted text beginboarddeleted text endnew text begin commissionnew text end, the commissioner of Iron Range
resources and rehabilitation shall appoint a technical advisory committee consisting of one
or more persons who are knowledgeable in areas related to the objectives of the proposal.
Members of the committees shall be compensated as provided in section 15.059, subdivision
3
. The deleted text beginboard shall not actdeleted text endnew text begin commission shall not make recommendationsnew text end on a proposal until
it has received the evaluation and recommendations of the technical advisory committee or
until 15 days have elapsed since the proposal was transmitted to the advisory committee,
whichever occurs first.

Sec. 55.

Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:


Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the new text begincommissioner of new text endIron Range
resources and rehabilitation deleted text beginBoarddeleted text end for authority to petition the county assessor to verify the
existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
with established engineering and geological exploration methods, in order that such taxing
district may be able to forecast in a proper manner its future economic and fiscal potentials.new text begin
The commissioner may grant the authority to petition only after consultation with the
commission.
new text end

Sec. 56.

Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:


Subd. 5.

Payment of costs; reimbursement.

The cost of such exploration or drilling
plus any damages to the property which may be assessed by the district court shall be paid
by the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end from amounts
appropriated to deleted text beginthat boarddeleted text endnew text begin the commissionernew text end under section 298.22. The new text begincommissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end shall be reimbursed for one-half of the
amounts thus expended. Such reimbursement shall be made by the taxing districts in the
proportion that each such taxing district's levy on the property involved bears to the total
levy on such property. Such reimbursement shall be made to the new text begincommissioner of new text endIron
Range resources and rehabilitation deleted text beginBoarddeleted text end in the manner provided by section 298.221.

Sec. 57.

Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:


Subd. 6.

Refusal to reimburse; reduction of other payments.

If any taxing district
refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor
is hereby authorized to reduce payments required to be made by the county to such taxing
district under other provisions of law. Thereafter the auditor shall draw a warrant, which
shall be deposited with the state treasury in accordance with section 298.221, to the credit
of the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end.

Sec. 58.

Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:


Subd. 6c.

Water access sites.

Any claim based upon the construction, operation, or
maintenance by a municipality of a water access site created by the new text begincommissioner of new text endIron
Range resources and rehabilitation deleted text beginBoarddeleted text end. A water access site under this subdivision that
provides access to an idled, water filled mine pit also includes the entire water filled area
of the pit, and, further, claims related to a mine pit water access site under this subdivision
include those based upon the caving or slumping of mine pit walls.

Sec. 59.

Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:


Subd. 9.

Local government unit.

"Local government unit" means a statutory or home
rule charter city, county, town, new text beginthe Department of new text endIron Range Resources and Rehabilitation
deleted text begin agencydeleted text end, regional development commission, or a federally designated economic development
district.

Sec. 60.

Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:


Subd. 21.

Preliminary resolution.

"Preliminary resolution" means a resolution adopted
by the governing body or board of the issuer, or deleted text beginin the case of thedeleted text end new text beginby the commissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoard by the commissionerdeleted text end. The resolution must
express a preliminary intention of the issuer to issue obligations for a specific project,
identify the proposed project, and disclose the proposed amount of qualified bonds to be
issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify
a specific project.

Sec. 61.

Laws 2010, chapter 389, article 5, section 7, is amended to read:


Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.

Subdivision 1.

Additional taxes authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city
of Biwabik, upon approval both by its governing body and by the vote of at least seven
members of the Iron Range Resources and Rehabilitation Board, may impose any or all of
the taxes described in this section.

Subd. 2.

Use of proceeds.

The proceeds of any taxes imposed under this section, less
refunds and costs of collection, must be deposited into the Iron Range Resources and
Rehabilitation deleted text beginBoarddeleted text end account enterprise fund created under the provisions of Minnesota
Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation deleted text beginBoard, upon approval by the
vote of at least seven members of
deleted text endnew text begin after consultation withnew text end the new text beginLegislative Commission on
new text end Iron Range Resources and Rehabilitation deleted text beginBoarddeleted text end, to pay costs for the construction, renovation,
improvement, expansion, and maintenance of public recreational facilities located in those
portions of the city within the Giants Ridge Recreation Area as defined in Minnesota Statutes,
section 298.22, subdivision 7, or to pay any principal, interest, or premium on any bond
issued to finance the construction, renovation, improvement, or expansion of such public
recreational facilities.

Subd. 3.

Lodging tax.

new text begin(a) new text endThe city of Biwabik, upon approval both by its governing
body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
Area as defined in Minnesota Statutes, section 298.22, subdivision 7.

new text begin (b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.
new text end

Subd. 4.

Admissions and recreation tax.

(a) The city of Biwabik, upon approval both
by its governing body and by the vote of at least seven members of the Iron Range Resources
and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent
on admission receipts to entertainment and recreational facilities and on receipts from the
rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined
in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes,
section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration,
collection, and enforcement of the tax authorized in this subdivision.

(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an
exemption for purchases of season tickets or passes.

new text begin (c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.
new text end

Subd. 5.

Food and beverage tax.

new text begin(a) new text endThe city of Biwabik, upon approval both by its
governing body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than
one percent on gross receipts of food and beverages sold whether it is consumed on or off
the premises by restaurants and places of refreshment as defined by resolution of the city
within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
subdivision 7
. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions
2 and 3, govern the imposition, administration, collection, and enforcement of the tax
authorized in this subdivision.

new text begin (b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, without local approval
pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end

Sec. 62. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes, with cooperation from the House Research Department and the
Office of Senate Counsel, Research, and Fiscal Analysis, shall prepare legislation that makes
conforming changes in accordance with the provisions of this article. The revisor shall
submit the proposal, in a form ready for introduction, during the 2018 regular legislative
session to the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over taxes.
new text end

Sec. 63. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, new text end new text begin are
repealed.
new text end

ARTICLE 5

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
POLICY

Section 1.

Minnesota Statutes 2016, section 268.046, subdivision 3, is amended to read:


Subd. 3.

Penalties; application.

(a) Any person that violates the requirements of this
section and any taxpaying employer that violates subdivision 1, paragraph (b), or any
nonprofit or government employer that violates subdivision 2, paragraph (b), is subject to
the penalties under section 268.184, subdivision 1a. Penalties are credited to the trust fund.

(b) Section 268.051, subdivision 4, does not apply to contracts under this section. This
section does not limit or prevent the application of section 268.051, subdivision 4, to any
other transactions or acquisitions involving the taxpaying employer. This section does not
limit or prevent the application of section 268.051, subdivision 4a.

(c) An assignment of an account upon the execution of a contract under this section and
a termination of a contract with the corresponding assignment of the account is not deleted text beginconsidereddeleted text end
a separation from employment of any worker covered by the contract. Nothing under this
subdivision causes the person to be liable for any amounts past due under this chapter from
the taxpaying employer or the nonprofit or government employer.

(d) deleted text beginThis section applies to, but is not limited to, persons registered under section 79.255,
but does not apply to persons that obtain
deleted text end An exemption from registration under section
79.255, subdivision 9new text begin, does not determine the application of this sectionnew text end.

Sec. 2.

Minnesota Statutes 2016, section 268.065, subdivision 2, is amended to read:


Subd. 2.

Employee leasing company, professional employer organization, or similar
person.

(a) A person whose work force consists of 50 percent or more of workers provided
by an employee leasing company, professional employer organization, or similar person
for a fee, is jointly and severally liable for the unpaid amounts that are due under this chapter
or section 116L.20 on the wages paid on the contract with the employee leasing company,
professional employer organization, or similar person.

(b) deleted text beginThis subdivision applies to, but is not limited to, persons registered under section
79.255, but does not apply to agreements with persons that obtain
deleted text end An exemption from
registration under section 79.255, subdivision 9new text begin, does not determine the application of this
section
new text end.

Sec. 3.

Minnesota Statutes 2016, section 268.085, subdivision 13, is amended to read:


Subd. 13.

Suspension from employment.

(a) An applicant who has been suspended
from employment without pay for 30 calendar days or less, as a result of employment
misconduct new text beginor aggravated employment misconduct new text endas defined under section 268.095,
deleted text begin subdivision 6,deleted text end
is ineligible for unemployment benefits beginning the Sunday of the week
that the applicant was suspended and continuing for the duration of the suspension.

(b) A suspension from employment without paynew text begin that is of indefinite duration or isnew text end for
more than 30 calendar days is considerednew text begin, at the time the suspension begins,new text end a discharge
from employment deleted text beginunderdeleted text endnew text begin subject tonew text end section 268.095deleted text begin, subdivision 5deleted text end.

(c) A suspension from employment with pay, regardless of duration, is not deleted text beginconsidereddeleted text end
a separation from employment and the applicant is ineligible for unemployment benefits
for the duration of the suspension with pay.

Sec. 4.

Minnesota Statutes 2016, section 268.095, subdivision 5, is amended to read:


Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any words
or actions by an employer would lead a reasonable employee to believe that the employer
will no longer allow the employee to work for the employer in any capacity. A layoff because
of lack of work is a discharge.

new text begin (b)new text end A suspension from employment without pay new text beginthat is new text endof new text beginan indefinite duration or is
for
new text endmore than 30 calendar days isnew text begin considerednew text end a dischargenew text begin at the time the suspension beginsnew text end.

deleted text begin (b)deleted text endnew text begin (c)new text end When determining if an applicant was discharged, the theory of a constructive
discharge does not apply.

deleted text begin (c)deleted text endnew text begin (d)new text end An employee who gives notice of intention to quit the employment and is not
allowed by the employer to work the entire notice period is discharged from the employment
as of the date the employer will no longer allow the employee to work. If the discharge
occurs within 30 calendar days before the intended date of quitting, then, as of the intended
date of quitting, the separation from employment is a quit from employment subject to
subdivision 1.

deleted text begin (d)deleted text endnew text begin (e)new text end The end of a job assignment with the client of a staffing service is a discharge
from employment with the staffing service unless subdivision 2, paragraph (e), applies.

Sec. 5.

Minnesota Statutes 2016, section 268.101, subdivision 2, is amended to read:


Subd. 2.

Determination.

(a) The commissioner must determine any issue of ineligibility
raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
and send to the applicant and any involved employer, by mail or electronic transmission, a
document titled a determination of eligibility or a determination of ineligibility, as is
appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
of the applicant must state the effect on the employer under section 268.047. A determination
must be made in accordance with this paragraph even if a notified employer has not raised
the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an employer
and send to the applicant and that employer, by mail or electronic transmission, a document
titled a determination of eligibility or a determination of ineligibility as is appropriate. The
determination on an issue of ineligibility as a result of a quit or discharge of the applicant
must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for unemployment
benefits;

(2) did not employ the applicant during the six calendar months before the application
for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant should
be determined ineligible for unemployment benefits for that communication to be considered
to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
or a similar term without more information does not constitute raising an issue of ineligibility
for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon that
information required of an applicant, any information that may be obtained from an applicant
or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not required
to send to an applicant a copy of the determination where the applicant has satisfied a period
of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.

(e) The deleted text begincommissioner maydeleted text endnew text begin department is authorized tonew text end issue a determination on an issue
of ineligibility within 24 months from the establishment of a benefit account based upon
information from any source, even if the issue of ineligibility was not raised by the applicant
or an employer.

If an applicant obtained unemployment benefits through deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end under
section 268.18, subdivision 2,new text begin the department is authorized to issuenew text end a determination of
ineligibility deleted text beginmay be issueddeleted text end within 48 months of the establishment of the benefit account.

new text begin If the department has filed an intervention in a worker's compensation matter under
section 176.361, the department is authorized to issue a determination of ineligibility within
48 months of the establishment of the benefit account.
new text end

(f) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant or employer within 20 calendar days after sending. The determination
must contain a prominent statement indicating the consequences of not appealing.
Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

ARTICLE 6

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
HOUSEKEEPING

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 20, is amended to read:


Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof, including
military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government;

(4) employment covered under the federal Railroad Unemployment Insurance Act;

(5) employment for a church or convention or association of churches, or a nonprofit
organization operated primarily for religious purposes that is operated, supervised, controlled,
or principally supported by a church or convention or association of churches;

new text begin (6) employment for an elementary or secondary school with a curriculum that includes
religious education that is operated by a church, a convention or association of churches,
or a nonprofit organization that is operated, supervised, controlled, or principally supported
by a church or convention or association of churches;
new text end

deleted text begin (6)deleted text endnew text begin (7)new text end employment for Minnesota or a political subdivision, or a nonprofit organization,
of a duly ordained or licensed minister of a church in the exercise of a ministry or by a
member of a religious order in the exercise of duties required by the order;

deleted text begin (7)deleted text endnew text begin (8)new text end employment for Minnesota or a political subdivision, or a nonprofit organization,
of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the
purpose of carrying out a program of rehabilitation for individuals whose earning capacity
is impaired by age or physical or mental deficiency or injury or a program providing
"sheltered" work for individuals who because of an impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market. This clause applies only to
services performed in a facility certified by the Rehabilitation Services Branch of the
department or in a day training or habilitation program licensed by the Department of Human
Services;

deleted text begin (8)deleted text endnew text begin (9)new text end employment for Minnesota or a political subdivision, or a nonprofit organization,
of an individual receiving work relief or work training as part of an unemployment work
relief or work training program deleted text beginassisted ordeleted text end financed in whole or in part by any federal agency
or an agency of a state or political subdivision thereof. This clause does not apply to programs
that require unemployment benefit coverage for the participants;

deleted text begin (9)deleted text endnew text begin (10)new text end employment for Minnesota or a political subdivision, as an elected official, a
member of a legislative body, or a member of the judiciary;

deleted text begin (10)deleted text endnew text begin (11)new text end employment as a member of the Minnesota National Guard or Air National
Guard;

deleted text begin (11)deleted text endnew text begin (12)new text end employment for Minnesota or a political subdivision, or instrumentality thereof,
of an individual serving on a temporary basis in case of fire, flood, tornado, or similar
emergency;

deleted text begin (12)deleted text endnew text begin (13)new text end employment as an election official or election worker for Minnesota or a
political subdivision, if the compensation for that employment was less than $1,000 in a
calendar year;

deleted text begin (13)deleted text endnew text begin (14)new text end employment for Minnesota that is a major policy-making or advisory position
in the unclassified service;

deleted text begin (14)deleted text endnew text begin (15)new text end employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

deleted text begin (15)deleted text endnew text begin (16)new text end employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

deleted text begin (16)deleted text endnew text begin (17)new text end domestic employment in a private household, local college club, or local chapter
of a college fraternity or sorority, if the wages paid in any calendar quarter in either the
current or prior calendar year to all individuals in domestic employment totaled less than
$1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or sorority
as distinguished from service as an employee in the pursuit of an employer's trade or business;

deleted text begin (17)deleted text endnew text begin (18)new text end employment of an individual by a son, daughter, or spouse, and employment
of a child under the age of 18 by the child's father or mother;

deleted text begin (18)deleted text endnew text begin (19)new text end employment of an inmate of a custodial or penal institution;

deleted text begin (19)deleted text endnew text begin (20)new text end employment for a school, college, or university, by a student who is enrolled
and whose primary relation to the school, college, or university is as a student. This does
not include an individual whose primary relation to the school, college, or university is as
an employee who also takes courses;

deleted text begin (20)deleted text endnew text begin (21)new text end employment of an individual who is enrolled as a student in a full-time program
at a nonprofit or public educational institution that maintains a regular faculty and curriculum
and has a regularly organized body of students in attendance at the place where its educational
activities are carried on, taken for credit at the institution, that combines academic instruction
with work experience, if the employment is an integral part of the program, and the institution
has so certified to the employer, except that this clause does not apply to employment in a
program established for or on behalf of an employer or group of employers;

deleted text begin (21)deleted text endnew text begin (22)new text end employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (22)deleted text endnew text begin (23)new text end employment for a hospital by a patient of the hospital. "Hospital" means an
institution that has been licensed by the Department of Health as a hospital;

deleted text begin (23)deleted text endnew text begin (24)new text end employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

deleted text begin (24)deleted text endnew text begin (25)new text end employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

deleted text begin (25)deleted text endnew text begin (26)new text end employment as an insurance salesperson, by other than a corporate officer, if
all the wages from the employment is solely by way of commission. The word "insurance"
includes an annuity and an optional annuity;

deleted text begin (26)deleted text endnew text begin (27)new text end employment as an officer of a township mutual insurance company or farmer's
mutual insurance company under chapter 67A;

deleted text begin (27)deleted text endnew text begin (28)new text end employment of a corporate officer, if the officer directly or indirectly, including
through a subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the member
directly or indirectly, including through a subsidiary or holding company, owns 25 percent
or more of the employer limited liability company;

deleted text begin (28)deleted text endnew text begin (29)new text end employment as a real estate salesperson, other than a corporate officer, if all
the wages from the employment is solely by way of commission;

deleted text begin (29)deleted text endnew text begin (30)new text end employment as a direct seller as defined in United States Code, title 26, section
3508;

deleted text begin (30)deleted text endnew text begin (31)new text end employment of an individual under the age of 18 in the delivery or distribution
of newspapers or shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;

deleted text begin (31)deleted text endnew text begin (32)new text end casual employment performed for an individual, other than domestic
employment under clause deleted text begin(16)deleted text endnew text begin (17)new text end, that does not promote or advance that employer's trade
or business;

deleted text begin (32)deleted text endnew text begin (33)new text end employment in "agricultural employment" unless it is "covered agricultural
employment" under subdivision 11; or

deleted text begin (33)deleted text endnew text begin (34)new text end if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is covered employment; but if during
more than one-half of any pay period the employment was noncovered employment, then
all of the employment for the pay period is noncovered employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation is ordinarily
made to the employee by the employer.

Sec. 2.

Minnesota Statutes 2016, section 268.035, subdivision 21d, is amended to read:


Subd. 21d.

Staffing service.

A "staffing service" is an employer whose business involves
employing individuals directly for the purpose of furnishing temporary assignment workers
to deleted text beginclientsdeleted text endnew text begin support or supplement the workforce of the business that is a clientnew text end of the staffing
service.

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 9, is amended to read:


Subd. 9.

Assessments, fees, and surcharges; treatment.

deleted text beginAny assessment, fee, or
surcharge imposed under the Minnesota Unemployment Insurance Law is treated the same
as, and considered as, a tax.
deleted text end Any assessment, fee, or surcharge is subject to the same
collection procedures that apply to past due taxes.

Sec. 4.

Minnesota Statutes 2016, section 268.07, subdivision 3b, is amended to read:


Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating within seven calendar days of the date the application is filed. An application
may be backdated only if the applicant was unemployed during the period of the backdating.
If an individual attempted to file an application for unemployment benefits, but was prevented
from filing an application by the department, the application is effective the Sunday of the
calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the application
for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit account;
and

(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.

new text begin A benefit account may be withdrawn after the expiration of the benefit year, and the
new work requirements of subdivision 2, paragraph (b), do not apply if the applicant was
not paid any unemployment benefits on the benefit account that is being withdrawn.
new text end

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday following
the expiration of the benefit year on a prior benefit account. Except as allowed under
paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.
This paragraph applies to benefit accounts established under any federal law or the law of
any other state.

Sec. 5.

Minnesota Statutes 2016, section 268.085, subdivision 1, is amended to read:


Subdivision 1.

Eligibility conditions.

An applicant may be eligible to receive
unemployment benefits for any week if:

(1) the applicant has filed a continued request for unemployment benefits for that week
under section 268.0865;

(2) the week for which unemployment benefits are requested is in the applicant's benefit
year;

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

(4) the applicant was available for suitable employment as defined in subdivision 15.
The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the
applicant is unavailable for suitable employment. This clause does not apply to an applicant
who is in reemployment assistance training, or each day the applicant is on jury duty or
serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision
16. This clause does not apply to an applicant who is in reemployment assistance training
or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable period of one week that the applicant is
otherwise eligible for some amount of unemployment benefits. This clause does not apply
if the applicant would have been eligible for federal disaster unemployment assistance
because of a disaster in Minnesota, but for the applicant's establishment of a benefit account
under section 268.07; and

(7) the applicant has been participating in reemployment assistance services, such as
development of, and adherence to, a work search plan, if the applicant has been directed to
participate by the commissioner. This clause does not apply if the applicant has good cause
for failing to participate.new text begin "Good cause" is a reason that would have prevented a reasonable
person acting with due diligence from participating.
new text end

Sec. 6.

Minnesota Statutes 2016, section 268.085, subdivision 13a, is amended to read:


Subd. 13a.

Leave of absence.

(a) An applicant on a voluntary leave of absence is
ineligible for unemployment benefits for the duration of the leave of absence. An applicant
on an involuntary leave of absence is not ineligible under this subdivision.

A leave of absence is voluntary when work that the applicant can then perform is available
with the applicant's employer but the applicant chooses not to work. A medical leave of
absence is not presumed to be voluntary.

(b) A period of vacation requested by the applicant, paid or unpaid, is deleted text beginconsidereddeleted text end a
voluntary leave of absence. A vacation period assigned by an employer under: (1) a uniform
vacation shutdown; (2) a collective bargaining agreement; or (3) an established employer
policy, is deleted text beginconsidereddeleted text end an involuntary leave of absence.

(c) new text beginA leave of absence is a temporary stopping of work that has been approved by the
employer.
new text endA voluntary leave of absence is not deleted text beginconsidereddeleted text end a quit and an involuntary leave
of absence is not deleted text beginconsidereddeleted text end a discharge from employment for purposes of section 268.095.

(d) An applicant who is on a paid leave of absence, whether the leave of absence is
voluntary or involuntary, is ineligible for unemployment benefits for the duration of the
leave.

(e) This subdivision applies to a leave of absence from a base period employer, an
employer during the period between the end of the base period and the effective date of the
benefit account, or an employer during the benefit year.

Sec. 7.

Minnesota Statutes 2016, section 268.105, subdivision 2, is amended to read:


Subd. 2.

Request for reconsideration.

(a) Any party, or the commissioner, may within
20 calendar days of the sending of the unemployment law judge's decision under subdivision
1a, file a request for reconsideration asking the judge to reconsider that decision.

(b) Upon a request for reconsideration having been filed, the chief unemployment law
judge must send a notice, by mail or electronic transmission, to all parties that a request for
reconsideration has been filed. The notice must inform the parties:

(1) that reconsideration is the procedure for the unemployment law judge to correct any
factual or legal mistake in the decision, or to order an additional hearing when appropriate;

(2) of the opportunity to provide comment on the request for reconsideration, and the
right under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered
or received into evidence at the hearing;

(3) that providing specific comments as to a perceived factual or legal mistake in the
decision, or a perceived mistake in procedure during the hearing, will assist the
unemployment law judge in deciding the request for reconsideration;

(4) of the right to obtain any comments and submissions provided by any other party
regarding the request for reconsideration; and

(5) of the provisions of paragraph (c) regarding additional evidence.

This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not
mean the unemployment law judge has decided the request for reconsideration was timely
filed.

(c) In deciding a request for reconsideration, the unemployment law judge must not
consider any evidence that was not submitted at the hearing, except for purposes of
determining whether to order an additional hearing.

The unemployment law judge must order an additional hearing if a party shows that
evidence which was not submitted at the hearing:

(1) would likely change the outcome of the decision and there was good cause for not
having previously submitted that evidence; or

(2) would show that the evidence that was submitted at the hearing was likely false and
that the likely false evidence had an effect on the outcome of the decision.

new text begin "Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from submitting the evidence.
new text end

(d) If the party who filed the request for reconsideration failed to participate in the
hearing, the unemployment law judge must issue an order setting aside the decision and
ordering an additional hearing if the party who failed to participate had good cause for
failing to do so. The party who failed to participate in the hearing must be informed of the
requirement to show good cause for failing to participate. If the unemployment law judge
determines that good cause for failure to participate has not been shown, the judge must
state that in the decision issued under paragraph (f).

Submission of a written statement at the hearing does not constitute participation for
purposes of this paragraph.

"Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating in the hearing.

(e) A request for reconsideration must be decided by the unemployment law judge who
issued the decision under subdivision 1a unless that judge:

(1) is no longer employed by the department;

(2) is on an extended or indefinite leave; or

(3) has been removed from the proceedings by the chief unemployment law judge.

(f) If a request for reconsideration is timely filed, the unemployment law judge must
issue:

(1) a decision affirming the findings of fact, reasons for decision, and decision issued
under subdivision 1a;

(2) a decision modifying the findings of fact, reasons for decision, and decision under
subdivision 1a; or

(3) an order setting aside the findings of fact, reasons for decision, and decision issued
under subdivision 1a, and ordering an additional hearing.

The unemployment law judge must issue a decision dismissing the request for
reconsideration as untimely if the judge decides the request for reconsideration was not
filed within 20 calendar days after the sending of the decision under subdivision 1a.

The unemployment law judge must send to all parties, by mail or electronic transmission,
the decision or order issued under this subdivision. A decision affirming or modifying the
previously issued findings of fact, reasons for decision, and decision, or a decision dismissing
the request for reconsideration as untimely, is the final decision on the matter and is binding
on the parties unless judicial review is sought under subdivision 7.

ARTICLE 7

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
TECHNICAL

Section 1.

Minnesota Statutes 2016, section 268.031, subdivision 1, is amended to read:


Subdivision 1.

Standard of proof.

All issues deleted text beginof factdeleted text end under the Minnesota Unemployment
Insurance Law are determined by a preponderance of the evidence.

Sec. 2.

Minnesota Statutes 2016, section 268.035, subdivision 15, is amended to read:


Subd. 15.

Employment.

(a) "Employment" means service performed by:

(1) an individual who is deleted text beginconsidereddeleted text end an employee under the common law of
employer-employee and not deleted text beginconsidereddeleted text end an independent contractor;

(2) an officer of a corporation;

(3) a member of a limited liability company who is deleted text beginconsidereddeleted text end an employee under the
common law of employer-employee;new text begin or
new text end

(4) product demonstrators in retail stores or other locations to aid in the sale of products.
The person that pays the wages is deleted text beginconsidereddeleted text end the employerdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (5) an individual who performs services for a person for compensation, as:
deleted text end

deleted text begin (i) an agent-driver or commission-driver engaged in distributing meat products, vegetable
products, fruit products, beverages, or laundry or dry cleaning services; or
deleted text end

deleted text begin (ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
engaged full-time in the solicitation on behalf of the person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar establishments for
merchandise for resale or supplies for use in their business operations.
deleted text end

deleted text begin This clause applies only if the contract of service provides that substantially all of the
services are to be performed personally by the individual, and the services are part of a
continuing relationship with the person for whom the services are performed, and the
individual does not have a substantial investment in facilities used in connection with the
performance of the services, other than facilities for transportation.
deleted text end

(b) Employment does not include service as a juror.

new text begin (c) Construction industry employment is defined in subdivision 9a. Trucking and
messenger/courier industry employment is defined in subdivision 25b. Rules on determining
worker employment status are described under Minnesota Rules, chapter 3315.
new text end

Sec. 3.

Minnesota Statutes 2016, section 268.035, subdivision 23, is amended to read:


Subd. 23.

State's average annual and average weekly wage.

(a) On or before June 30
of each year, the commissioner must calculatenew text begin, from wage detail reports under section
268.044,
new text end the state's average annual wage and the state's average weekly wage in the following
manner:

(1) the sum of the total monthly covered employment reported by all employers for the
prior calendar year is divided by 12 to calculate the average monthly covered employmentdeleted text begin.deleted text endnew text begin;
new text end

(2) the sum of the total wages paid for all covered employment reported by all employers
for the prior calendar year is divided by the average monthly covered employment to calculate
the state's average annual wagedeleted text begin.deleted text endnew text begin; and
new text end

(3) the state's average annual wage is divided by 52 to calculate the state's average weekly
wage.

(b) For purposes of calculating the amount of taxable wagesnew text begin under subdivision 24new text end, the
state's average annual wage applies to the calendar year following the calculation.

(c) For purposes of calculating deleted text begin(1)deleted text end the state's maximum weekly unemployment benefit
amount available on any benefit account under section 268.07, subdivision 2a, deleted text beginand (2)deleted text endnew text begin the
state's average weekly wage applies to the one-year period beginning the last Sunday in
October of the calendar year of the calculation.
new text end

new text begin (d) For purposes of calculatingnew text end the wage credits necessary to establish a benefit account
under section 268.07, subdivision 2, the state's average weekly wage applies to the one-year
period beginning the last Sunday in October of the calendar year of the calculation.

Sec. 4.

Minnesota Statutes 2016, section 268.035, subdivision 30, is amended to read:


Subd. 30.

Wages paid.

(a) "Wages paid" means the amount of wages:

(1) that have been actually paid; or

(2) that have been credited to or set apart so that payment and disposition is under the
control of the employee.

(b) Wage payments delayed beyond the regularly scheduled pay date are deleted text beginconsidereddeleted text end
"wages paid" on the missed pay date. Back pay is deleted text beginconsidereddeleted text end "wages paid" on the date of
actual payment. Any wages earned but not paid with no scheduled date of payment deleted text beginis
considered
deleted text endnew text begin arenew text end "wages paid" on the last day of employment.

(c) Wages paid does not include wages earned but not paid except as provided for in
this subdivision.

Sec. 5.

Minnesota Statutes 2016, section 268.042, subdivision 1, is amended to read:


Subdivision 1.

Employer registration.

(a) Each employer must, upon or before the
submission of its first wage detail report under section 268.044, register with the
commissioner for a tax account or a reimbursable account, by electronic transmission in a
format prescribed by the commissioner. The employer must provide all required information
for registration, including the actual physical street and city address of the employer.

(b) Within 30 calendar days, each employer must notify the commissioner by electronic
transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or
acquisition of a business conducted in Minnesota, in whole or in part, if the transaction
results in the creation of a new or different employer or affects the establishment of employer
accounts, the assignment of tax rates, or the transfer of experience rating history.

(c) Except as provided in subdivision 3, any person that is or becomes an employer
deleted text begin subject to the Minnesota Unemployment Insurance Lawdeleted text endnew text begin with covered employmentnew text end within
any calendar year is deleted text beginconsidered to bedeleted text end subject to this chapter the entire calendar year.

(d) Within 30 calendar days of the termination of business, an employer that has been
assigned a tax account or reimbursable account must notify the commissioner by electronic
transmission, in a format prescribed by the commissioner, if that employer does not intend
or expect to pay wages to any employees in covered employment during the current or the
next calendar year. Upon notification, the employer is no longer required to file wage detail
reports under section 268.044, subdivision 1, paragraph (d), and the employer's account
must be terminated.

(e) An employer that has its account terminated regains its previous tax account under
section 268.045, with the experience rating history of that account, if the employer again
commences business and again pays wages in covered employment if:

(1) less than 14 calendar quarters have elapsed in which no wages were paid for covered
employment;

(2) the experience rating history regained contains taxable wages; and

(3) the experience rating history has not been transferred to a successor under section
268.051, subdivision 4.

Sec. 6.

Minnesota Statutes 2016, section 268.051, subdivision 1, is amended to read:


Subdivision 1.

Payments.

(a) Unemployment insurance taxes deleted text beginand any special
assessments, fees, or surcharges
deleted text end accrue and become payable by each employer for each
calendar year on the taxable wages that the employer paid to employees in covered
employment, except for:

(1) nonprofit organizations that elect to make reimbursements as provided in section
268.053; and

(2) the state of Minnesota and political subdivisions that make reimbursements, unless
they elect to pay taxes as provided in section 268.052.

Each employer must pay taxes quarterly, at the employer's assigned tax rate under
subdivision 6, on the taxable wages paid to each employee. The commissioner must compute
the tax due from the wage detail report required under section 268.044 and notify the
employer of the tax due. The taxes deleted text beginand any special assessments, fees, or surchargesdeleted text end must
be paid to the trust fund and must be received by the department on or before the last day
of the month following the end of the calendar quarter.

(b) If for any reason the wages on the wage detail report under section 268.044 are
adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
and assess the employer for any amount due or credit the employer as appropriate.

Sec. 7.

Minnesota Statutes 2016, section 268.07, subdivision 2, is amended to read:


Subd. 2.

Benefit account requirements.

(a) Unless paragraph (b) applies, to establish
a benefit account an applicant must have deleted text begintotaldeleted text end wage credits deleted text beginin the applicant's four quarter
base period
deleted text end of at least 5.3 percent of the state's average annual wage rounded down to the
next lower $100.

(b) To establish a new benefit account following the expiration of the benefit year on a
prior benefit account, an applicant must have performed actual work in subsequent covered
employment and have been paid wages in one or more completed calendar quarters that
started after the effective date of the prior benefit account. The wages paid for that
employment must be at least enough to meet the requirements of paragraph (a). A benefit
account under this paragraph may not be established effective earlier than the Sunday
following the end of the most recent completed calendar quarter in which the requirements
of paragraph (a) were met. An applicant may not establish a second benefit account as a
result of one loss of employment.

Sec. 8.

Minnesota Statutes 2016, section 268.07, subdivision 3a, is amended to read:


Subd. 3a.

Right of appeal.

(a) A determination or amended determination of benefit
account is final unless an applicant or base period employer within 20 calendar days after
the sending of the determination or amended determination files an appeal. Every
determination or amended determination of benefit account must contain a prominent
statement indicating in clear language the consequences of not appealing. Proceedings on
the appeal are conducted in accordance with section 268.105.

(b) Any applicant or base period employer may appeal from a determination or amended
determination of benefit account on the issue of whether services performed constitute
employment, whether the employment is deleted text beginconsidereddeleted text end covered employment, and whether
money paid constitutes wages. deleted text beginProceedings on the appeal are conducted in accordance with
section 268.105.
deleted text end

Sec. 9.

Minnesota Statutes 2016, section 268.085, subdivision 6, is amended to read:


Subd. 6.

Receipt of back pay.

(a) Back pay received by an applicant within 24 months
of the establishment of the benefit account with respect to any week must be deducted from
unemployment benefits paid for that week, and the applicant is deleted text beginconsidered to have beendeleted text end
overpaid the unemployment benefits under section 268.18, subdivision 1.

If the back pay is not paid with respect to a specific period, the back pay must be applied
to the period immediately following the last day of employment.

(b) If the back pay is reduced by the amount of unemployment benefits that have been
paid, the amount of back pay withheld and not paid the applicant must be:

(1) paid by the taxpaying or reimbursing employer to the trust fund within 30 calendar
days and is subject to the same collection procedures that apply to past due taxes and
reimbursements; and

(2) when received by the trust fund:

(i) an overpayment of unemployment benefits must be created which, under section
268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account of any
effect; and

(ii) the back pay must then be applied to the unemployment benefit overpayment,
eliminating any effect on the applicant.

(c) The following must result when applying paragraph (b):

(1) an employer neither overpays nor underpays the employer's proper portion of the
unemployment benefit costs; and

(2) the applicant is placed in the same position as never having been paid the
unemployment benefits.

(d) This subdivision applies to payments labeled front pay, settlement pay, and other
terms describing or dealing with wage loss.

Sec. 10.

Minnesota Statutes 2016, section 268.085, subdivision 7, is amended to read:


Subd. 7.

School employeesnew text begin; between terms denialnew text end.

(a) deleted text beginNodeleted text end Wage credits deleted text beginin any amountdeleted text end
from deleted text beginanydeleted text end employment with deleted text beginanydeleted text endnew text begin annew text end educational institution or institutions deleted text beginearned in any
capacity
deleted text end may new text beginnot new text endbe used for unemployment benefit purposes for any week during the period
between two successive academic years or terms if:

(1) the applicant had employment for deleted text beginanydeleted text endnew text begin annew text end educational institution or institutions in the
prior academic year or term; and

(2) there is a reasonable assurance that the applicant will have employment for deleted text beginanydeleted text endnew text begin annew text end
educational institution or institutions in the following academic year or termdeleted text begin, unless thatdeleted text endnew text begin.
new text end

new text begin This paragraph applies to a vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess. This paragraph also applies to the period between two regular but not
successive terms if there is an agreement for that schedule between the applicant and the
educational institution.
new text end

new text begin This paragraph does not apply if thenew text end subsequent employment is substantially less
favorable than the employment of the prior academic year or termnew text begin, or the employment prior
to the vacation period or holiday recess
new text end.

(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic
year or term, had an agreement for a definite period of employment between academic years
or terms in other than an instructional, research, or principal administrative capacity and
the educational institution or institutions failed to provide that employment.

(c) If unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or
principal administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant is entitled to retroactive
unemployment benefits for each week during the period between academic years or terms
that the applicant filed a timely continued request for unemployment benefits, but
unemployment benefits were denied solely because of paragraph (a).

deleted text begin (d) An educational assistant is not considered to be in an instructional, research, or
principal administrative capacity.
deleted text end

deleted text begin (e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess.
deleted text end

deleted text begin (f)deleted text endnew text begin (d)new text end This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational
service agency" means a governmental deleted text beginagency ordeleted text end entity established and operated deleted text beginexclusivelydeleted text end
for the purpose of providing services to one or more educational institutions.

new text begin (e) new text endThis subdivision deleted text beginalsodeleted text end applies to employment with Minnesota deleted text beginordeleted text endnew text begin,new text end a political
subdivision, or a nonprofit organization, if the services are provided to or on behalf of an
educational institution or institutions.

deleted text begin (g) Paragraphs (a) and (e) applydeleted text endnew text begin (f) Paragraph (a) appliesnew text end beginning the Sunday of the
week that there is a reasonable assurance of employment.

deleted text begin (h)deleted text endnew text begin (g)new text end Employment new text beginand a reasonable assurance new text endwith multiple education institutions
must be aggregated for purposes of application of this subdivision.

deleted text begin (i)deleted text endnew text begin (h)new text end If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant
has a reasonable assurance of any on-call employment with any educational institution or
institutions for the following academic year or term, it is not considered substantially less
favorable employment.

deleted text begin (j) Paragraph (a) also applies to the period between two regular but not successive terms.
deleted text end

deleted text begin (k)deleted text endnew text begin (i)new text end A "reasonable assurance" may be written, oral, implied, or established by custom
or practice.

deleted text begin (l)deleted text endnew text begin (j)new text end An "educational institution" is deleted text beginandeleted text endnew text begin a school, college, university, or othernew text end educational
entity operated by Minnesota deleted text beginordeleted text endnew text begin,new text end a political subdivision or deleted text beginandeleted text end instrumentality thereof, or deleted text beginan
educational
deleted text endnew text begin a nonprofitnew text end organization deleted text begindescribed in United States Code, title 26, section
501(c)(3) of the federal Internal Revenue Code, and exempt from income tax under section
501(a)
deleted text end.

new text begin (k) An "instructional, research, or principal administrative capacity" does not include
an educational assistant.
new text end

Sec. 11.

Minnesota Statutes 2016, section 268.085, subdivision 12, is amended to read:


Subd. 12.

Aliens.

(a) An alien is ineligible for unemployment benefits for any week the
alien is not authorized to work in the United States under federal law. Information from the
Bureau of Citizenship and Immigration Services is deleted text beginconsidereddeleted text end conclusive, absent specific
evidence that the information was erroneous. Under the existing agreement between the
United States and Canada, this paragraph does not apply to an applicant who is a Canadian
citizen and has returned to and is living in Canada each week unemployment benefits are
requested.

(b) deleted text beginUnemployment benefits must not be paid on the basis ofdeleted text endnew text begin An alien'snew text end wage credits
deleted text begin earned by an aliendeleted text endnew text begin may not be used for unemployment benefit purposesnew text end unless the aliennew text begin
was:
new text end

(1) deleted text beginwasdeleted text end lawfully admitted for permanent residence at the time of the employmentdeleted text begin,deleted text endnew text begin;
new text end

(2) deleted text beginwasdeleted text end lawfully present for the purposes of the employmentdeleted text begin,deleted text endnew text begin;new text end or

(3) deleted text beginwasdeleted text end permanently residing in the United States under color of law at the time of the
employment.

(c) deleted text beginAnydeleted text end Information required of applicants applying for unemployment benefits to
determine eligibility because of their alien status must be required deleted text beginfromdeleted text endnew text begin ofnew text end all applicants.

Sec. 12.

Minnesota Statutes 2016, section 268.0865, subdivision 5, is amended to read:


Subd. 5.

Good cause defined.

(a) "Good cause" for purposes of this section is a
deleted text begin compelling substantialdeleted text end reason that would have prevented a reasonable person acting with
due diligence from filing a continued request for unemployment benefits within the time
periods required.

(b) "Good cause" does not include forgetfulness, loss of the continued request form if
filing by mail, having returned to work, having an appeal pending, or inability to file a
continued request for unemployment benefits by the method designated if the applicant was
aware of the inability and did not make diligent effort to have the method of filing a continued
request changed by the commissioner. "Good cause" does not include having previously
made an attempt to file a continued request for unemployment benefits but where the
communication was not considered a continued request because the applicant failed to
submit all required information.

Sec. 13.

Minnesota Statutes 2016, section 268.095, subdivision 1, is amended to read:


Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the employer
as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that provided
equal to or better terms and conditions of employment, but the applicant did not work long
enough at the second employment to have sufficient subsequent wages paid to satisfy the
period of ineligibility that would otherwise be imposed under subdivision 10 for quitting
the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment and the employment was unsuitable;

(4) the employment was unsuitable and the applicant quit to enter reemployment
assistance training;

(5) the employment was part time and the applicant also had full-time employment in
the base period, from which full-time employment the applicant separated because of reasons
for which the applicant deleted text beginisdeleted text endnew text begin wouldnew text end not new text beginbe new text endineligible, and the wage credits from the full-time
employment are sufficient to meet the minimum requirements to establish a benefit account
under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant was
going to be laid off because of lack of work within 30 calendar days. An applicant who quit
employment within 30 calendar days of a notified date of layoff because of lack of work is
ineligible for unemployment benefits through the end of the week that includes the scheduled
date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or injury
made it medically necessary that the applicant quit; or (ii) in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant.
This exception only applies if the applicant informs the employer of the medical problem
and requests accommodation and no reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception does not apply
if the applicant was previously diagnosed as chemically dependent or had treatment for
chemical dependency, and since that diagnosis or treatment has failed to make consistent
efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable employment
under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the applicant
to quit the employment, provided the applicant made reasonable effort to obtain other child
care and requested time off or other accommodation from the employer and no reasonable
accommodation is available.

This exception raises an issue of the applicant's being available for suitable employment
under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant
or an immediate family member of the applicant, necessitated the applicant's quitting the
employment.

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections 609.342
to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

(10) the applicant quit in order to relocate to accompany a spouse:

deleted text begin (1)deleted text endnew text begin (i)new text end who is in the military; or

deleted text begin (2)deleted text endnew text begin (ii)new text end whose job was transferred by the spouse's employer to a new location making it
impractical for the applicant to commute.

Sec. 14.

Minnesota Statutes 2016, section 268.095, subdivision 2, is amended to read:


Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.

(b) When determining if an applicant quit, the theory of a constructive quit does not
apply.

(c) An employee who has been notified that the employee will be discharged in the
future, who chooses to end the employment while employment in any capacity is still
available, has quit the employment.

(d) new text beginA notice of quitting in the future does not constitute a quit at the time the notice is
given.
new text endAn employee who seeks to withdraw a previously submitted notice of quitting new text beginin the
future
new text endhas quit the employment, as of the intended date of quitting, if the employer does not
agree that the notice may be withdrawn.

(e) An applicant has quit employment with a staffing service if, within five calendar
days after completion of a suitable job assignment from a staffing service, the applicant:

(1) fails without good cause to affirmatively request an additional suitable job assignment;

(2) refuses without good cause an additional suitable job assignment offered; or

(3) accepts employment with the client of the staffing service. Accepting employment
with the client of the staffing service meets the requirements of the exception to ineligibility
under subdivision 1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the staffing
service, the applicant signed and was provided a copy of a separate document written in
clear and concise language that informed the applicant of this paragraph and that
unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that would compel an average,
reasonable worker, who would otherwise want an additional suitable job assignment with
the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered
assignment.

Sec. 15.

Minnesota Statutes 2016, section 268.131, is amended to read:


268.131 deleted text beginRECIPROCAL UNEMPLOYMENT BENEFITdeleted text endnew text begin COMBINED WAGEnew text end
ARRANGEMENTSnew text begin FOR WORK IN MULTIPLE STATESnew text end.

deleted text begin Subdivision 1. deleted text end

deleted text begin Cooperation with other states on combining wages. deleted text end

(a) In accordance
with the requirements of deleted text beginUnited States Code, title 26, section 3304(a)(9)(B),deleted text end the Federal
Unemployment Tax Act, the commissioner must participate deleted text beginin reciprocal arrangementsdeleted text end with
other states for the payment of unemployment benefits on the basis of combining an
applicant's wages from multiple states for the purposes of collecting unemployment benefits
from a single state. deleted text beginThe reciprocal agreement must include provisions for applying the base
period of a single state law to a benefit account involving the combining of an applicant's
wages and employment and avoiding the duplicate use of wages by reason of such combining.
deleted text end
The commissioner may deleted text beginnot enter into any reciprocal arrangement unless it contains provisions
for
deleted text endnew text begin only pay unemployment benefits from the trust fund under this section if:
new text end

new text begin (1) there are new text endreimbursements to the trust fund, by the other state, for unemployment
benefits paid from the trust fund deleted text beginto applicantsdeleted text end based upon wages and employment covered
under the laws of the other statedeleted text begin.deleted text endnew text begin; and
new text end

deleted text begin (b) The commissioner is authorized to pay unemployment benefits based upon an
applicant's wages paid in covered employment in another state only if
deleted text endnew text begin (2)new text end the applicant is
combining Minnesota wage credits with the wages paid in covered employment from another
state deleted text beginor statesdeleted text end.

deleted text begin (c) Section 268.23 does not apply to this subdivision.
deleted text end

deleted text begin (d) On any reciprocal arrangement,deleted text endnew text begin (b) Under this section,new text end the wages paid an applicant
from employment covered under an unemployment insurance program of another state are
considered wages from covered employment for the purpose of determining the applicant's
rights to unemployment benefits under the Minnesota Unemployment Insurance Law.

deleted text begin Subd. 2. deleted text end

deleted text begin Cooperation with foreign governments. deleted text end

deleted text begin The commissioner is authorized to
enter into or cooperate in arrangements whereby facilities and services provided under the
Minnesota Unemployment Insurance Law and facilities and services provided under the
unemployment insurance program of any foreign government, may be used for the taking
of applications for unemployment benefits and continued requests and the payment of
unemployment benefits under this law or under a similar law of a foreign government.
deleted text end

Sec. 16.

Minnesota Statutes 2016, section 268.18, subdivision 2, is amended to read:


Subd. 2.

Overpayment because of deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end.

(a) An applicant has
committed deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end if the applicant is overpaid unemployment benefits bydeleted text begin:
deleted text end

deleted text begin (1) knowingly misrepresenting, misstating, or failing to disclose any material fact; or
deleted text end

deleted text begin (2)deleted text end making a false statement or representation without a good faith belief as to the
correctness of the statement or representation.

After the discovery of facts indicating deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end, the commissioner must
issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the
amount overpaid. This penalty is in addition to penalties under section 268.182.

(b) Unless the applicant files an appeal within 20 calendar days after the sending of a
determination of overpayment penalty to the applicant by mail or electronic transmission,
the determination is final. Proceedings on the appeal are conducted in accordance with
section 268.105.

(c) A determination of overpayment penalty must state the methods of collection the
commissioner may use to recover the overpayment, penalty, and interest assessed. Money
received in repayment of overpaid unemployment benefits, penalties, and interest is first
applied to the benefits overpaid, then to the penalty amount due, then to any interest due.
62.5 percent of the payments made toward the penalty are credited to the contingent account
and 37.5 percent credited to the trust fund.

(d) new text beginThe department is authorized to issue new text enda determination of overpayment penalty under
this subdivision deleted text beginmay be issueddeleted text end within 48 months of the establishment of the benefit account
upon which the unemployment benefits were obtained through deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end.

Sec. 17.

Minnesota Statutes 2016, section 268.18, subdivision 2b, is amended to read:


Subd. 2b.

Interest.

On any unemployment benefits deleted text beginfraudulentlydeleted text end obtainednew text begin by
misrepresentation
new text end, and any penalty amounts assessed under subdivision 2, the commissioner
must assess interest at the rate of one percent per month on any amount that remains unpaid
beginning 30 calendar days after the date of a determination of overpayment penalty. A
determination of overpayment penalty must state that interest will be assessed. Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
Interest payments collected under this subdivision are credited to the trust fund.

Sec. 18.

Minnesota Statutes 2016, section 268.18, subdivision 5, is amended to read:


Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not deleted text beginconsidereddeleted text end an election
of a method of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
under section 176.361 is not deleted text beginconsidereddeleted text end an election of a remedy and does not prevent the
commissioner from determining deleted text beginanydeleted text endnew text begin an applicant ineligible fornew text end unemployment benefits
deleted text begin overpaid under subdivision 1 or 2deleted text end or taking action under section 268.182.

Sec. 19.

Minnesota Statutes 2016, section 268.182, is amended to read:


268.182 deleted text beginAPPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF
FACTS
deleted text endnew text begin FRAUDnew text end; new text beginCRIMINAL new text endPENALTY.

Subdivision 1.

Criminal penalties.

deleted text beginWhoeverdeleted text end new text beginAn individual has committed fraud and is
guilty of theft and must be sentenced under section 609.52 if the individual
new text endobtains, or
attempts to obtain, or aids or abets any new text beginother new text endindividual to obtainnew text begin,new text end by deleted text beginmeans ofdeleted text end an intentional
false statement or representation, by intentional concealment of a material fact, or by
impersonation or other fraudulent means, unemployment benefits that the individual is not
entitled deleted text beginor unemployment benefits greater than the individual is entitleddeleted text endnew text begin tonew text end under this chapter,
or under deleted text beginthedeleted text endnew text begin federalnew text end law deleted text beginof any state or of the federal government, either personally or for
any other individual, is guilty of theft and must be sentenced under section 609.52
deleted text end.

Subd. 2.

Administrative penalties.

(a) Any applicant who deleted text beginknowingly makes a false
statement or representation, who knowingly fails to disclose a material fact, or who
deleted text end makes
a false statement or representation without a good faith belief as to the correctness of the
statement or representation, in order to obtain or in an attempt to obtain unemployment
benefits may be assessed, in addition to any other penalties, an administrative penalty of
being ineligible for unemployment benefits for 13 to 104 weeks.

(b) A determination of ineligibility setting out the weeks the applicant is ineligible must
be sent to the applicant by mail or electronic transmission. new text beginThe department is authorized to
issue
new text enda determination of ineligibility under this subdivision deleted text beginmay be issueddeleted text end within 48 months
of the establishment of the benefit account upon which the unemployment benefits were
obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of
sending, the determination is final. Proceedings on the appeal are conducted in accordance
with section 268.105.

Sec. 20.

Minnesota Statutes 2016, section 268.184, is amended to read:


268.184 EMPLOYER deleted text beginMISCONDUCT; PENALTYdeleted text endnew text begin MISREPRESENTATION AND
MISREPORTING; ADMINISTRATIVE PENALTIES
new text end.

Subdivision 1.

new text beginMisrepresentation; new text endadministrative penalties.

(a) The commissioner
must penalize an employer if that employer or any employee, officer, or agent of that
employerdeleted text begin, is in collusion with any applicant for the purpose of assisting the applicant to
receive unemployment benefits fraudulently. The penalty is $500 or the amount of
unemployment benefits determined to be overpaid, whichever is greater.
deleted text end

deleted text begin (b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer: (1) made a false statement or representation knowing it
to be false; (2)
deleted text end made a false statement or representation without a good faith belief as to
correctness of the statement or representationdeleted text begin; (3)deleted text endnew text begin ornew text end knowingly failed to disclose a material
factdeleted text begin; or (4) made an offer of employment to an applicant when, in fact, the employer had
no employment available.
deleted text endnew text begin in order to:
new text end

new text begin (1) assist an applicant to receive unemployment benefits to which the applicant is not
entitled;
new text end

new text begin (2) prevent or reduce the payment of unemployment benefits to an applicant; or
new text end

new text begin (3) avoid or reduce any payment required from an employer under this chapter or section
116L.20.
new text end

The penalty is the greater of $500 or 50 percent of the following resulting from the employer's
action:

(i) the amount of any overpaid unemployment benefits to an applicant;

(ii) the amount of unemployment benefits not paid to an applicant that would otherwise
have been paid; or

(iii) the amount of any payment required from the employer under this chapter or section
116L.20 that was not paid.

deleted text begin (c)deleted text endnew text begin (b)new text end The commissioner must penalize an employer if that employer failed or refused
to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of
enforcing the subpoena, including attorney fees.

deleted text begin (d)deleted text endnew text begin (c)new text end Penalties under this subdivision and under section 268.047, subdivision 4,
paragraph (b), are in addition to any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
issuance of the determination of penalty and credited to the trust fund.

deleted text begin (e)deleted text endnew text begin (d)new text end The determination of penalty is final unless the employer files an appeal within
20 calendar days after the sending of the determination of penalty to the employer by mail
or electronic transmission. Proceedings on the appeal are conducted in accordance with
section 268.105.

Subd. 1a.

Notification and misreporting penalties.

(a) If the commissioner finds that
any employer or agent of an employer failed to meet the notification requirements of section
268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two percent
of the first full quarterly payroll acquired, whichever is higher. Payroll is wages paid as
defined in section 268.035, subdivision 30. The penalty under this paragraph must be
canceled if the commissioner determines that the failure occurred because of ignorance or
inadvertence.

(b) If the commissioner finds that any individual advised an employer to violate the
employer's notification requirements under section 268.051, subdivision 4, the individual,
and that individual's employer, must each be assessed the penalty in paragraph (a).

(c) If the commissioner finds that any person or agent of a person violated the reporting
requirements of section 268.046, the person must be assessed a penalty of $5,000 or two
percent of the quarterly payroll reported in violation of section 268.046, whichever is higher.
Payroll is wages paid as defined in section 268.035, subdivision 30.

(d) Penalties under this subdivision are in addition to any other penalties and subject to
the same collection procedures that apply to past due amounts from an employer. Penalties
must be paid within 30 calendar days after sending of the determination of penalty and
credited to the trust fund.

(e) The determination of penalty is final unless the person assessed files an appeal within
20 calendar days after sending of the determination of penalty by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

Subd. 2.

Criminal penalties.

Any employer or any officer or agent of an employer or
any other individual deleted text beginwhodeleted text endnew text begin has committed fraud and is guilty of a crime, if in order to avoid
or reduce any payment required from an employer under this chapter or section 116L.20,
or to prevent or reduce the payment of unemployment benefits to an applicant
new text end:

(1) makes a false statement or representation knowing it to be false;

(2) knowingly fails to disclose a material fact, including notification required under
section 268.051, subdivision 4; or

(3) knowingly advises or assists an employer in violating clause (1) or (2)deleted text begin, to avoid or
reduce any payment required from an employer under this chapter or section 116L.20, or
to prevent or reduce the payment of unemployment benefits to any applicant,
deleted text endnew text begin.
new text end

new text begin The individualnew text end is guilty of a gross misdemeanor deleted text beginunlessdeleted text endnew text begin ifnew text end the underpayment deleted text beginexceedsdeleted text endnew text begin isnew text end $500deleted text begin,
in that case
deleted text endnew text begin or less.new text end The individual is guilty of a felonynew text begin if the underpayment exceeds $500new text end.

Sec. 21.

Minnesota Statutes 2016, section 268.194, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

There is established as a special state trust fund, separate
and apart from all other public money or funds of this state, an unemployment insurance
trust fund, that is administered by the commissioner exclusively for the payment of
unemployment benefits. This trust fund consists of:

(1) all taxes collected;

(2) interest earned upon any money in the trust fund;

(3) reimbursements paid by nonprofit organizationsnew text begin,new text end and the state and political
subdivisions;

(4) tax rate buydown payments under section 268.051, subdivision 7;

(5) deleted text beginanydeleted text end money received as a loan from the federal unemployment trust fund in accordance
with United States Code, title 42, section 1321, of the Social Security Act;

(6) deleted text beginany otherdeleted text end money received under a deleted text beginreciprocal unemployment benefitdeleted text endnew text begin combined wagenew text end
arrangement with the federal government or any other state;

new text begin (7) money received from the federal government for unemployment benefits paid under
a federal program;
new text end

deleted text begin (7)deleted text endnew text begin (8)new text end money recovered on overpaid unemployment benefits;

deleted text begin (8)deleted text endnew text begin (9)new text end all money credited to the account under this chapter;

deleted text begin (9)deleted text endnew text begin (10)new text end all money credited to the account of Minnesota in the federal unemployment
trust fund under United States Code, title 42, section 1103, of the Social Security Act, also
known as the Reed Act; and

deleted text begin (10)deleted text endnew text begin (11)new text end all money received for the trust fund from any other source.

Sec. 22.

Minnesota Statutes 2016, section 268.194, subdivision 4, is amended to read:


Subd. 4.

Reimbursements.

The commissioner is authorized to make to other state or
federal agencies and to receive from other state or federal agencies, reimbursements from
or to the trust fund, in accordance with deleted text beginreciprocaldeleted text endnew text begin combined wagenew text end arrangements entered
into under section 268.131.

Money received under a deleted text beginreciprocal agreementdeleted text endnew text begin combined wage arrangementnew text end must be
placed directly in the unemployment benefit payment account of the trust fund.

Sec. 23. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the following sections of Minnesota Statutes, the revisor of statutes shall delete the
term "considered": Minnesota Statutes, sections 268.035, subdivisions 21c and 26; 268.07,
subdivision 1; 268.085, subdivisions 4a, 13c, 15, and 16; 268.095, subdivision 3; 268.101,
subdivision 6; and 268.105, subdivisions 3a and 7.
new text end

Sec. 24. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) In Minnesota Statutes, section 268.18, the revisor of statutes shall change the term
"fraud" to "misrepresentation" and "nonfraud" to "nonmisrepresentation."
new text end

new text begin (b) The revisor of statutes shall renumber Minnesota Statutes, section 268.184,
subdivision 2, as Minnesota Statutes, section 268.182, subdivision 1, paragraph (b).
new text end

new text begin (c) The revisor of statutes shall renumber Minnesota Statutes, section 268.182, subdivision
2, as Minnesota Statutes, section 268.183.
new text end

new text begin (d) The revisor of statutes shall make cross-reference changes needed arising out of the
renumbering in Minnesota Statutes, section 268.032, subdivision 20.
new text end

Sec. 25. new text beginREPEALER.
new text end

new text begin Laws 2005, chapter 112, article 1, section 14, new text end new text begin is repealed.
new text end

ARTICLE 8

COMMERCE POLICY

Section 1.

Minnesota Statutes 2016, section 45.013, is amended to read:


45.013 POWER TO APPOINT STAFF.

The commissioner of commerce may appoint deleted text beginfourdeleted text endnew text begin onenew text end deputy deleted text begincommissionersdeleted text endnew text begin
commissioner
new text end, four assistant commissioners, and an assistant to the commissioner. Those
positions, as well as that of a confidential secretary, are unclassified. The commissioner
may appoint other employees necessary to carry out the duties and responsibilities entrusted
to the commissioner.

Sec. 2.

Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:


Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention account
is created in the state treasury. Money received from assessments under subdivision 7 and
transferred from the automobile theft prevention account in deleted text beginsectiondeleted text endnew text begin sectionsnew text end 65B.84,
subdivision 1
new text begin, and 297I.11, subdivision 2new text end, is deposited in the account. Money in this fund
is appropriated to the commissioner of commerce for the purposes specified in this section
and sections 60A.951 to 60A.956.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:


Subdivision 1.

Program described; commissioner's duties; appropriation.

(a) The
commissioner of commerce shall:

(1) develop and sponsor the implementation of statewide plans, programs, and strategies
to combat automobile theft, improve the administration of the automobile theft laws, and
provide a forum for identification of critical problems for those persons dealing with
automobile theft;

(2) coordinate the development, adoption, and implementation of plans, programs, and
strategies relating to interagency and intergovernmental cooperation with respect to
automobile theft enforcement;

(3) annually audit the plans and programs that have been funded in whole or in part to
evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need of
further financial support from the fund;

(4) develop a plan of operation including:

(i) an assessment of the scope of the problem of automobile theft, including areas of the
state where the problem is greatest;

(ii) an analysis of various methods of combating the problem of automobile theft;

(iii) a plan for providing financial support to combat automobile theft;

(iv) a plan for eliminating car hijacking; and

(v) an estimate of the funds required to implement the plan; and

(5) distribute money, in consultation with the commissioner of public safety, pursuant
to subdivision 3 from the automobile theft prevention special revenue account for automobile
theft prevention activities, including:

(i) paying the administrative costs of the program;

(ii) providing financial support to the State Patrol and local law enforcement agencies
for automobile theft enforcement teams;

(iii) providing financial support to state or local law enforcement agencies for programs
designed to reduce the incidence of automobile theft and for improved equipment and
techniques for responding to automobile thefts;

(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;

(v) providing financial support to judicial agencies for programs designed to reduce the
incidence of automobile theft;

(vi) providing financial support for neighborhood or community organizations or business
organizations for programs designed to reduce the incidence of automobile theft and to
educate people about the common methods of automobile theft, the models of automobiles
most likely to be stolen, and the times and places automobile theft is most likely to occur;
and

(vii) providing financial support for automobile theft educational and training programs
for state and local law enforcement officials, driver and vehicle services exam and inspections
staff, and members of the judiciary.

(b) The commissioner may not spend in any fiscal year more than ten percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to the
automobile theft prevention special revenue account each year, less the transfer of $1,300,000
each year to the deleted text begingeneral funddeleted text endnew text begin insurance fraud prevention accountnew text end described in section 297I.11,
subdivision 2
.

(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
in the auto theft prevention account to the insurance fraud prevention account under section
45.0135, subdivision 6.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 4.

new text begin [239.7511] GAS TAX SIGN ON PETROLEUM DISPENSER.
new text end

new text begin (a) The director must ensure that signs having 12-point font or greater are affixed on
retail petroleum dispensers as follows:
new text end

new text begin (1) for regular or premium gasoline, a sign that reads: "The price for each gallon of
gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline
tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and
bridges, according to the Minnesota Constitution."; and
new text end

new text begin (2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes
the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents
per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according
to the Minnesota Constitution."
new text end

new text begin (b) The director must distribute the signs under this section to the owner or operator of
retail petroleum dispensers. To the extent possible, the director must coordinate the
distribution of signs with other duties the director may have involving retail petroleum
dispensers.
new text end

new text begin (c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2),
changes, the director must distribute revised signs to reflect the updated gasoline tax amounts
within 12 calendar months of the change.
new text end

new text begin (d) The director is prohibited from assessing any penalty, fine, or fee on the owner or
operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise
damaged gas tax sign.
new text end

Sec. 5.

Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:


Subd. 2.

Automobile theft prevention account.

A special revenue account in the state
treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1.
Of the revenue in the account, $1,300,000 each year must be transferred to the deleted text begingeneral funddeleted text endnew text begin
insurance fraud prevention account under section 45.0135, subdivision 6
new text end. Revenues in excess
of $1,300,000 each year may be used only for the automobile theft prevention program
described in section 65B.84.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 6.

Minnesota Statutes 2016, section 325J.06, is amended to read:


325J.06 EFFECT OF NONREDEMPTION.

(a) A pledgor shall have no obligation to redeem pledged goods or make any payment
on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of
the pawn transactiondeleted text begin, renewal, or extensiondeleted text end shall automatically be forfeited to the
pawnbroker, and qualified right, title, and interest in and to the goods shall automatically
vest in the pawnbroker.

(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a)
is qualified only by the pledgor's right, while the pledged goods remain in possession of the
pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees
and/or interest accrued up to the date of redemption.

(c) A pawn transaction that involves holding only the title to property is subject to chapter
168A or 336.

Sec. 7.

Minnesota Statutes 2016, section 345.42, subdivision 1, is amended to read:


Subdivision 1.

Commissioner's duty.

Within the calendar year next following the year
in which abandoned property has been paid or delivered to the commissioner, the
commissioner shall provide public notice of the abandoned property in the mannernew text begin described
in subdivision 1a
new text end and deleted text beginfrequencydeleted text endnew text begin otherwise asnew text end the commissioner determines to be most
effective and efficient in communicating to the persons appearing to be owners of this
property. deleted text beginPublic notice may include the use of print, broadcast, or electronic media.deleted text end The
commissioner shall, at a minimum, expend 15 percent of the funds allocated by the legislature
to the operations of the unclaimed property division, to comply with the public notice
requirements of this deleted text beginsubdivisiondeleted text endnew text begin section and shall report to the legislature annually on how
those funds are expended. Public notice must include public outreach efforts including the
use of newspapers and other mass media, but must not include costs incurred by the
commissioner to develop, maintain, or improve the Department of Commerce Web site
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Public notice. new text end

new text begin (a) Public notice provided by the commissioner shall include
the following:
new text end

new text begin (1) posting on the Department of Commerce Web site a list of all persons appearing to
be owners of abandoned property. The list shall be arranged in alphabetical order by the
last name of the person and further organized by county. The list of persons must be updated
at least three times per year and must remain on the Department of Commerce Web site at
all times;
new text end

new text begin (2) publication in a qualified newspaper of a list of persons appearing to be owners of
abandoned property having a value of $500 or more. The list must be published in a qualified
newspaper of general circulation in each county, and must include the names of all persons
whose last known address is within the county. The list must be published at least once per
year. The commissioner may stagger publication of the entire list of owners by publishing
a partial list at least twice, but no more than three times per year. Each qualified newspaper
that publishes the list shall, at no additional charge to the commissioner, also post the list
on its Web site or on a central Web site that can be accessed directly from the qualified
newspaper's Web site. The list must be accessible on the Web site for not less than 180 days
and at no cost to the public. The qualified newspaper must include in its publication of the
list a reference to its Web site or a central Web site; and
new text end

new text begin (3) dissemination of information to persons appearing to be owners of abandoned property
through other means and media, including broadcast media, the Internet, and social media.
new text end

new text begin (b) Beginning July 1, 2017, and annually thereafter, the commissioner shall provide to
each member of the legislature a list of all persons appearing to be owners of abandoned
property whose last known address is located in the legislator's respective legislative district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

new text begin [471.9998] MERCHANT BAGS.
new text end

new text begin Subdivision 1. new text end

new text begin Merchant option. new text end

new text begin All merchants, itinerant vendors, and peddlers doing
business in this state shall have the option to provide customers a paper, plastic, or reusable
bag for the packaging of any item or good purchased, provided such purchase is of a size
and manner commensurate with the use of paper, plastic, or reusable bags.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition; bag ban. new text end

new text begin Notwithstanding any other provision of law, no political
subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for
packaging of any item or good purchased from a merchant, itinerant vendor, or peddler.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 31, 2017. Ordinances existing on
the effective date of this section that would be prohibited under this section are invalid as
of the effective date of this section.
new text end

Sec. 10. new text beginEXISTING DEPUTY COMMISSIONERS MAY SERVE UNTIL JANUARY
1, 2019.
new text end

new text begin All existing deputy commissioners under Minnesota Statutes, section 45.013, may serve
until January 1, 2019. Vacancies that occur in these positions before January 1, 2019, must
not be filled.
new text end

Sec. 11. new text beginREPORT ON UNCLAIMED PROPERTY DIVISION.
new text end

new text begin The commissioner shall report by February 15, 2018, to the chairs and ranking minority
members of the standing committees of the house of representatives and senate having
jurisdiction over commerce regarding the process owners of abandoned property must
comply with in order to file an allowed claim under Minnesota Statutes, chapter 345. The
report shall include information regarding the documentation and identification necessary
for owners of each type of abandoned property under Minnesota Statutes, chapter 345, to
file an allowed claim.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 9

TELECOMMUNICATIONS POLICY

Section 1.

Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Voice-over-Internet protocol service. new text end

new text begin "Voice-over-Internet protocol service"
or "VoIP service" means any service that (1) enables real-time two-way voice
communications that originate from or terminate at the user's location in Internet protocol
or any successor protocol, and (2) permits users generally to receive calls that originate on
the public switched telephone network and terminate calls to the public switched telephone
network.
new text end

Sec. 2.

Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision to
read:


new text begin Subd. 11. new text end

new text begin Internet protocol-enabled service. new text end

new text begin "Internet protocol-enabled service" or
"IP-enabled service" means any service, capability, functionality, or application provided
using Internet protocol, or any successor protocol, that enables an end user to send or receive
a communication in Internet protocol format or any successor format, regardless of whether
that communication is voice, data, or video.
new text end

Sec. 3.

new text begin [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND
INTERNET PROTOCOL-ENABLED SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Regulation prohibited. new text end

new text begin Except as provided in this section, no state
agency, including the commission and the Department of Commerce, or political subdivision
of this state shall by rule, order, or other means directly or indirectly regulate the entry,
rates, terms, quality of service, availability, classification, or any other aspect of VoIP service
or IP-enabled service.
new text end

new text begin Subd. 2. new text end

new text begin VoIP regulation. new text end

new text begin (a) To the extent permitted by federal law, VoIP service is
subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to
the collection and remittance of the surcharges governed by those sections.
new text end

new text begin (b) A provider of VoIP service must comply with the requirements of chapter 403
applicable to the provision of access to 911 service by service providers, except to the extent
those requirements conflict with federal requirements for the provision of 911 service by
VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP provider is
entitled to the benefit of the limitation of liability provisions of section 403.07, subdivision
5. Beginning June 1, 2017, and continuing each June 1 thereafter, each VoIP provider shall
file a plan with the commission describing how it will comply with the requirements of this
paragraph. After its initial filing under this paragraph, a VoIP provider shall file with the
commission either an update of the plan or a statement certifying that the plan and personnel
contact information previously filed is still current.
new text end

new text begin Subd. 3. new text end

new text begin Relation to other law. new text end

new text begin Nothing in this section restricts, creates, expands, or
otherwise affects or modifies:
new text end

new text begin (1) the commission's authority under the Federal Communications Act of 1934, United
States Code, title 47, sections 251 and 252;
new text end

new text begin (2) any applicable wholesale tariff or any commission authority related to wholesale
services;
new text end

new text begin (3) any commission jurisdiction over (i) intrastate switched access rates, terms, and
conditions, including the implementation of federal law with respect to intercarrier
compensation, or (ii) existing commission authority to address or affect the resolution of
disputes regarding intercarrier compensation;
new text end

new text begin (4) the rights of any entity, or the authority of the commission and local government
authorities, with respect to the use and regulation of public rights-of-way under sections
237.162 and 237.163;
new text end

new text begin (5) the establishment or enforcement of standards, requirements or procedures in
procurement policies, internal operational policies, or work rules of any state agency or
political subdivision of the state relating to the protection of intellectual property; or
new text end

new text begin (6) the authority of the attorney general to apply and enforce chapters 325C to 325G,
325K to 325M, and other laws of general applicability governing consumer protection and
trade practices.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin The following services delivered by IP-enabled service are not
regulated under this chapter:
new text end

new text begin (1) video services provided by a cable communications system, as defined in section
238.02, subdivision 3;
new text end

new text begin (2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
new text end

new text begin (3) any other IP-enabled video service.
new text end

new text begin Subd. 5. new text end

new text begin Preservation of existing landline telephone service. new text end

new text begin Nothing in this section
restricts, creates, expands, or otherwise affects or modifies the obligations of a telephone
company under this chapter to offer landline telephone service that is not Voice-over-Internet
protocol service.
new text end

Sec. 4.

new text begin [237.417] PERSONAL INFORMATION; PROHIBITION.
new text end

new text begin No telecommunications or Internet service provider that has entered into a franchise
agreement, right-of-way agreement, or other contract with the state of Minnesota or a
political subdivision, or that uses facilities that are subject to such agreements, even if it is
not a party to the agreement, may collect personal information from a customer resulting
from the customer's use of the telecommunications or Internet service provider without
express written approval from the customer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 10

ENERGY POLICY

Section 1.

Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

(a) There is established a Legislative Energy Commission
to study and to make recommendations for legislation concerning issues related to its duties
under subdivision 3.

(b) The commission consists of:

(1) deleted text begintendeleted text endnew text begin fivenew text end members of the house of representativesnew text begin, three of whom arenew text end appointed by
the speaker of the house, deleted text beginfourdeleted text endnew text begin and twonew text end of whom deleted text beginmust be fromdeleted text endnew text begin are appointed by the leader
of
new text end the minority caucusdeleted text begin, and including the chair of the committee with primary jurisdiction
over energy policy; the chair or another member of each of the committees with primary
jurisdiction over environmental policy, agricultural policy, and transportation policy
deleted text end; and

(2) deleted text begintendeleted text endnew text begin fivenew text end members of the senate deleted text beginto bedeleted text endnew text begin, three of whom arenew text end appointed by the
deleted text begin Subcommittee on Committeesdeleted text endnew text begin leader of the majority caucusnew text end, deleted text beginfourdeleted text endnew text begin and twonew text end of whom deleted text beginmust
be from
deleted text endnew text begin are appointed by the leader ofnew text end the minority caucusdeleted text begin, and including the chair of the
committee with primary jurisdiction over energy policy; and the chair or another member
of each of the committees with primary jurisdiction over environmental policy, agricultural
policy, and transportation policy
deleted text end.

(c) The commission may employ full-time and part-time staff, contract for consulting
services, and may reimburse the expenses of persons requested to assist it in its duties. The
director of the Legislative Coordinating Commission shall assist the commission in
administrative matters. The commission shall elect cochairs, one member of the house of
representatives and one member of the senate from among the committee and subcommittee
chairs named to the commission. The commission members from the house of representatives
shall elect the house of representatives cochair, and the commission members from the
senate shall elect the senate cochair.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 16B.323, is amended to read:


16B.323 SOLAR ENERGY IN STATE BUILDINGS.

Subdivision 1.

Definitions.

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

deleted text begin (b) "Made in Minnesota" means the manufacture in this state of:
deleted text end

deleted text begin (1) components of a solar thermal system certified by the Solar Rating and Certification
Corporation; or
deleted text end

deleted text begin (2) solar photovoltaic modules that:
deleted text end

deleted text begin (i) are manufactured at a manufacturing facility in Minnesota that is registered and
authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory,
CSA International, Intertek, or an equivalent independent testing agency;
deleted text end

deleted text begin (ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek,
or an equivalent independent testing agency; and
deleted text end

deleted text begin (iii) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), clauses
(1), (5), and (6).
deleted text end

deleted text begin For the purposes of clause (2), "manufactured" has the meaning given in section
116C.7791, subdivision 1, paragraph (b), clauses (1) and (2).
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end "Major renovation" means a substantial addition to an existing building, or a
substantial change to the interior configuration or the energy system of an existing building.

deleted text begin (d)deleted text endnew text begin (c)new text end "Solar energy system" means deleted text beginsolardeleted text end photovoltaic deleted text beginmodulesdeleted text endnew text begin devicesnew text end alone or installed
in conjunction with a solar thermal system.

deleted text begin (e) "Solar Photovoltaic moduledeleted text endnew text begin (d) "Photovoltaic devicenew text end" has the meaning given in
section deleted text begin116C.7791, subdivision 1, paragraph (e)deleted text endnew text begin 216C.06, subdivision 16new text end.

deleted text begin (f)deleted text endnew text begin (e)new text end "Solar thermal system" has the meaning given "qualifying solar thermal project"
in section 216B.2411, subdivision 2, paragraph (e).

deleted text begin (g)deleted text endnew text begin (f)new text end "State building" means a building whose construction or renovation is paid wholly
or in part by the state from the bond proceeds fund.

Subd. 2.

Solar energy system.

(a) As provided in paragraphs (b) and (c), a project for
the construction or major renovation of a state building, after the completion of a cost-benefit
analysis, may include installation of deleted text begin"Made in Minnesota"deleted text end solar energy systems of new text beginup to new text end40
kilowatts capacity on, adjacent, or in proximity to the state building.

(b) The capacity of a solar new text beginenergy new text endsystem must be less than 40 kilowatts to the extent
necessary to match the electrical load of the building or to the extent necessary to keep the
costs for the installation below the five percent maximum set by paragraph (c).

(c) The cost of the solar new text beginenergy new text endsystem must not exceed five percent of the appropriations
from the bond proceeds fund for the construction or renovation of the state building. Purchase
and installation of a solar thermal system may account for no more than 25 percent of the
cost of a solar new text beginenergy new text endsystem installation.

(d) A project subject to this section is ineligible to receive a rebate for the installation
of a solar energy system under section 116C.7791 or from any utility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 116.03, is amended by adding a subdivision to
read:


new text begin Subd. 7. new text end

new text begin Clean Air Act settlement money. new text end

new text begin "Clean Air Act settlement money" means
money received by or required to be paid to the state as a result of litigation or settlements
of alleged violations of the federal Clean Air Act, United States Code, title 42, section 7401,
et seq., or rules adopted thereunder, by an automobile manufacturer. Clean Air Act settlement
money may not be spent until it is specifically appropriated by law.
new text end

Sec. 4.

Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginRenewable developmentdeleted text endnew text begin Energy fundnew text end account.

(a) new text beginThe energy fund
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account are credited to the account. Earnings, such as
interest, dividends, and any other earnings arising from assets of the account, are credited
to the account. Funds remaining in the account at the end of a fiscal year do not cancel to
the general fund, but remain in the account until expended.
new text end

new text begin (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the energy fund account
established in paragraph (a). Funds awarded to grantees in previous grant cycles that have
not yet been expended and unencumbered funds required to be paid in calendar year 2017
under sections 116C.7791, 116C.7792, and 216C.41 are not subject to transfer under this
paragraph.
new text end

new text begin (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter,
new text endthe public utility that owns the Prairie Island nuclear generating
plant must transfer to deleted text begina renewable developmentdeleted text endnew text begin the energy fundnew text end account $500,000 each
year for each dry cask containing spent fuel that is located at the Prairie Island power plant
for each year the plant is in operation, and $7,500,000 each year the plant is not in operation
if ordered by the commission pursuant to paragraph deleted text begin(c)deleted text endnew text begin (f)new text end. The fund transfer must be made
if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie
Island for any part of a year.

deleted text begin (b)deleted text endnew text begin (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter,
new text end the public utility that owns the Monticello nuclear generating
plant must transfer to the deleted text beginrenewable developmentdeleted text endnew text begin energy fundnew text end account $350,000 each year
for each dry cask containing spent fuel that is located at the Monticello nuclear power plant
for each year the plant is in operation, and $5,250,000 each year the plant is not in operation
if ordered by the commission pursuant to paragraph deleted text begin(c)deleted text endnew text begin (f)new text end. The fund transfer must be made
if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at
Monticello for any part of a year.

new text begin (e) Each year, the public utility must withhold from the funds transferred to the energy
fund account under paragraphs (c) and (d) the amount necessary to pay its obligations under
sections 116C.7791, 116C.7792, and 216C.41 for that calendar year.
new text end

deleted text begin (c)deleted text endnew text begin (f)new text end After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
at the facility to a permanent or interim storage site out of the state. This determination shall
be made at least every two years.

new text begin (g) Funds in the account may only be expended to support projects that:
new text end

new text begin (1) result in lower rates for Xcel's Minnesota retail electricity customers;
new text end

new text begin (2) result in reduced air emissions from Xcel's Minnesota electric generating facilities;
and
new text end

new text begin (3) provide incentives for the development of new energy technologies that meet the
conditions of clause (1) or (2).
new text end

new text begin Except as provided in section 116C.7793, subdivision 7, expenditures from the fund must
only benefit Minnesota ratepayers receiving electric service from the utility that owns a
nuclear-powered electric generating plant in this state or the Prairie Island Indian community
or its members.
new text end

deleted text begin (d) Funds in the account may be expended only for any of the following purposes:
deleted text end

deleted text begin (1) to increase the market penetration within the state of renewable electric energy
resources at reasonable costs;
deleted text end

deleted text begin (2) to promote the start-up, expansion, and attraction of renewable electric energy projects
and companies within the state;
deleted text end

deleted text begin (3) to stimulate research and development within the state into renewable electric energy
technologies; and
deleted text end

deleted text begin (4) to develop near-commercial and demonstration scale renewable electric projects or
near-commercial and demonstration scale electric infrastructure delivery projects if those
delivery projects enhance the delivery of renewable electric energy.
deleted text end

deleted text begin The utility that owns a nuclear generating plant is eligible to apply for renewable development
account grants.
deleted text end

deleted text begin (e) Expenditures authorized by this subdivision from the account may be made only
after approval by order of the Public Utilities Commission upon a petition by the public
utility. The commission may approve proposed expenditures, may disapprove proposed
expenditures that it finds to be not in compliance with this subdivision or otherwise not in
the public interest, and may, if agreed to by the public utility, modify proposed expenditures.
The commission may approve reasonable and necessary expenditures for administering the
account in an amount not to exceed five percent of expenditures. Commission approval is
not required for expenditures required under subdivisions 2 and 3, section 116C.7791, or
other law.
deleted text end

deleted text begin (f) The account shall be managed by the public utility but the public utility must consult
about account expenditures with an advisory group that includes, among others,
representatives of its ratepayers. The commission may require that other interests be
represented on the advisory group. The advisory group must be consulted with respect to
the general scope of expenditures in designing a request for proposal and in evaluating
projects submitted in response to a request for proposals. In addition to consulting with the
advisory group, the public utility must utilize an independent third-party expert to evaluate
proposals submitted in response to a request for proposal, including all proposals made by
deleted text end deleted text begin the public utility. A request for proposal for research and development under paragraph (d),
clause (3), may be limited to or include a request to higher education institutions located in
Minnesota for multiple projects authorized under paragraph (d), clause (3). The request for
multiple projects may include a provision that exempts the projects from the third-party
expert review and instead provides for project evaluation and selection by a merit peer
review grant system. The utility should attempt to reach agreement with the advisory group
after consulting with it but the utility has full and sole authority to determine which
expenditures shall be submitted to the commission for commission approval. In the process
of determining request for proposal scope and subject and in evaluating responses to request
for proposals, the public utility must strongly consider, where reasonable, potential benefit
to Minnesota citizens and businesses and the utility's ratepayers.
deleted text end

deleted text begin (g) Funds in the account may not be directly appropriated by the legislature by a law
enacted after January 1, 2012, and unless appropriated by a law enacted prior to that date
may be expended only pursuant to an order of the commission according to this subdivision.
deleted text end

deleted text begin (h) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.
deleted text end

deleted text begin (i) The public utility must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.
deleted text end

deleted text begin (j) A project receiving funds from the account must produce a written final report that
includes sufficient detail for technical readers and a clearly written summary for nontechnical
readers. The report must include an evaluation of the project's financial, environmental, and
other benefits to the state and the public utility's ratepayers.
deleted text end

deleted text begin (k) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public Web site designated by the commission.
deleted text end

deleted text begin (l) All final reports must acknowledge that the project was made possible in whole or
part by the Minnesota renewable development fund, noting that the fund is financed by the
public utility's ratepayers.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2016, section 116C.779, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Payment termination. new text end

new text begin (a) The commissioner shall track the cumulative
transfers made to the account and its predecessor, the renewable development account, each
year since 1999 for each dry cask containing spent fuel that is stored at an independent
spent-fuel storage facility at Prairie Island or Monticello. During the time when state law
required the public utility to transfer a specific amount of funds to the account for all the
casks stored, the per-cask allocation shall be calculated by dividing the total amount
transferred by the number of casks stored that year.
new text end

new text begin (b) When the commissioner determines that the cumulative transfers calculated under
paragraph (a) for a specific cask reach $10,000,000, the commissioner shall notify the public
utility that no additional transfers to the account for that cask shall be made.
new text end

new text begin (c) This subdivision does not affect any provisions of subdivision 1, paragraph (c) or
(d), with respect to transfers to the account made after a plant has ceased operation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2016, section 116C.7792, is amended to read:


116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

The utility subject to section 116C.779 shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total nameplate capacity
of 20 kilowatts direct current. The program shall be operated for five consecutive calendar
years commencing in 2014. $5,000,000 shall be allocated for each of the five years from
the deleted text beginrenewable developmentdeleted text endnew text begin energy fundnew text end account established in section 116C.779 to a separate
account for the purpose of the solar production incentive program. The solar system must
be sized to less than 120 percent of the customer's on-site annual energy consumption. The
production incentive must be paid for ten years commencing with the commissioning of
the system. The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [116C.7793] LEGISLATIVE RENEWABLE ENERGY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The Legislative Renewable Energy Council of 11
members is established in the legislative branch, consisting of:
new text end

new text begin (1) five members of the house of representatives appointed by the speaker of the house,
three of whom are from the majority caucus and two of whom are from the minority caucus;
and
new text end

new text begin (2) five members of the senate appointed by the Subcommittee on Committees of the
Committee on Rules and Administration, three of whom are from the majority caucus and
two of whom are from the minority caucus; and
new text end

new text begin (3) one representative of the Prairie Island Indian Community appointed by that
community's tribal council.
new text end

new text begin (b) Eight legislative members appointed to the council must represent legislative districts
in which at least 60 percent of residents receive electric service from the utility that owns
a nuclear powered electric generating plant in this state. No member may be appointed to
the council from a legislative district that does not contain any electric retail customers of
the utility that owns a nuclear powered electric generating plant in this state. Council
members must be geographically balanced to represent the entire electric service area of
that utility.
new text end

new text begin (c) Council members shall elect a chair, a vice-chair, and other officers as determined
by the council. The chair may convene meetings as necessary to conduct the duties prescribed
by this section.
new text end

new text begin (d) The Legislative Coordinating Commission may appoint nonpartisan staff and contract
with consultants as necessary to support the functions of the council. The council has final
approval authority to hire an executive director. Up to one-half of one percent of the money
appropriated from the fund may be used to pay for the council's administrative expenses.
new text end

new text begin Subd. 2. new text end

new text begin Council recommendations. new text end

new text begin (a) The council must make recommendations to
the legislature on appropriations from the energy fund account established under section
116C.779 that are consistent with that section and state law. The council's recommendations
must be submitted no later than December 15 each year. The council must present its
recommendations to the senate and house of representatives committees with jurisdiction
over energy policy and finance by February 15 in odd-numbered years, and within the first
four weeks of the legislative session in even-numbered years.
new text end

new text begin (b) Recommendations of the council, including approval of recommendations for
expenditures from the energy fund account, require an affirmative vote of at least eight
members of the council.
new text end

new text begin (c) The council must develop and implement a decision-making process that ensures
citizens and potential recipients of funds are included at each stage of the process. The
process must include a fair, equitable, and thorough method to review funding requests,
and a clear and easily understood process to rank projects.
new text end

new text begin Subd. 3. new text end

new text begin Conflict of interest. new text end

new text begin (a) A council member may not be an advocate for or
against a council action or vote on any action that may be a conflict of interest. A conflict
of interest must be disclosed as soon as it is discovered. The council must follow the policies
and requirements related to conflicts of interest developed by the Office of Grants
Management under section 16B.98.
new text end

new text begin (b) For the purposes of this section, a conflict of interest exists when a person has an
organizational conflict of interest or a direct financial conflict of interest, and the conflict
of interest presents the appearance that it will be difficult for the person to impartially fulfill
the person's duties as a member of the council. An organizational conflict of interest exists
when a person has an affiliation with an organization subject to council activities that presents
the appearance of a conflict between organizational interests and the council member's
duties under this section. An organizational conflict of interest does not exist if the person's
only affiliation with an organization is being a member of the organization.
new text end

new text begin Subd. 4. new text end

new text begin Audit. new text end

new text begin The legislative auditor must audit energy fund account expenditures
recommended by the council, including administrative and staffing expenditures, to ensure
the money is spent in compliance with all applicable laws.
new text end

new text begin Subd. 5. new text end

new text begin Recipient requirements. new text end

new text begin (a) A recipient of a direct appropriation from the
energy fund account recommended by the council must compile and submit all information
for funded projects or programs, including proposed measurable outcomes required by the
council.
new text end

new text begin (b) A recipient's future eligibility to receive funds from the energy fund account is
contingent upon the recipient satisfying all applicable requirements under this section, as
well as any additional requirements contained in applicable law. If the Office of the
Legislative Auditor, in the course of an audit or investigation, publicly reports that a recipient
of funds from the energy fund account has not complied with the laws, rules, or regulations
under this section or other laws applicable to the recipient, the recipient is not eligible for
future funding from the energy fund account until the recipient demonstrates compliance
to the legislative auditor.
new text end

new text begin (c) A recipient of a direct appropriation from the energy fund account pursuant to a
recommendation by the council may not receive funds from another direct appropriation
from the council until four years after completion of the project funded by the prior direct
appropriation.
new text end

new text begin Subd. 6. new text end

new text begin Accomplishment plans. new text end

new text begin As a condition of accepting funds appropriated from
the energy fund account on the council's recommendation, a recipient must agree to submit
an accomplishment plan and periodic accomplishment reports to the council in the form
determined by the council. The accomplishment plan must identify the project manager
responsible for expending the appropriation and the final product. The accomplishment plan
must account for the use of the appropriation, identify outcomes of the expenditure, and
include an evaluation of results.
new text end

new text begin Subd. 7. new text end

new text begin Expenditures. new text end

new text begin (a) The council's recommendations regarding expenditures from
the energy fund account may include but are not limited to research and development
projects, demonstration projects, and statewide programs and financial incentives.
new text end

new text begin (b) If general fund money is transferred to the energy fund account, the council may
recommend the expenditure of, and the legislature may appropriate, funds from the account
up to the amount of general fund money present in the account for purposes that do not
exclusively benefit Minnesota ratepayers receiving electric service from the utility that owns
a nuclear powered generating plant in this state.
new text end

new text begin Subd. 8. new text end

new text begin Administration. new text end

new text begin The council shall develop administrative procedures for the
submission and review of proposals seeking funding from the council.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2016, section 216A.03, subdivision 1, is amended to read:


Subdivision 1.

Members.

new text begin(a) new text endThe Public Utilities Commission shall consist of five
members. The terms of members shall be six years and until their successors have been
appointed and qualified. deleted text beginEach commissioner shall be appointed by the governor by and with
the advice and consent of the senate.
deleted text end Not more than three commissioners shall belong to
the same political party. At least one commissioner must have been domiciled at the time
of appointment outside the seven-county metropolitan area. If the membership of the
commission deleted text beginafter July 31, 1986,deleted text end does not consist of at least one member domiciled at the
time of appointment outside the seven-county metropolitan area, the membership shall
conform to this requirement following normal attrition of the present commissioners. deleted text beginThe
governor
deleted text end When selecting commissionersnew text begin, the appropriating authorities under paragraph (c)new text end
shall give consideration to persons learned in the law or persons who have engaged in the
profession of engineering, public accounting, property and utility valuation, finance, physical
or natural sciences, production agriculture, or natural resources as well as being representative
of the general public.

new text begin (b) new text endFor purposes of this subdivision, "seven-county metropolitan area" means Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties.

new text begin (c) The legislature and the governor shall appoint members of the commission as follows:
new text end

new text begin (1) the speaker of the house of representatives shall appoint one member;
new text end

new text begin (2) the leader of the majority caucus in the senate shall appoint one member;
new text end

new text begin (3) the leader of the minority caucus in the house of representatives shall appoint one
member;
new text end

new text begin (4) the leader of the minority caucus in the senate shall appoint one member; and
new text end

new text begin (5) the governor shall appoint one member.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2016, section 216A.03, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Transition. new text end

new text begin (a) This subdivision governs the membership of the commission
between July 1, 2017, and July 1, 2019.
new text end

new text begin (b) On or before July 1, 2017, the leaders of the senate majority and minority caucuses
shall each appoint one commissioner to serve a term ending July 1, 2023, to replace
commissioners whose terms expire in 2022 and 2023.
new text end

new text begin (c) On or before February 1, 2019, the governor shall appoint a commissioner to serve
a term ending July 1, 2025, to replace a commissioner whose term ends in 2021.
new text end

new text begin (d) On or before July 1, 2019, the leaders of the house majority and minority caucuses
shall each appoint one commissioner to serve a term ending July 1, 2025, to replace
commissioners whose terms expire in 2019 and 2020.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2016, section 216B.03, is amended to read:


216B.03 REASONABLE RATE.

Every rate made, demanded, or received by any public utility, or by any two or more
public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
and consistent in application to a class of consumers. To the maximum reasonable extent,
the commission shall set rates to encourage new text begineconomic growth, job retention, new text endenergy
conservation deleted text beginanddeleted text endnew text begin,new text end renewable energy usenew text begin,new text end and to further the goals of sections 216B.164,
new text begin 216B.1696, new text end216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in
favor of the consumer. For rate-making purposes a public utility may treat two or more
municipalities served by it as a single class wherever the populations are comparable in size
or the conditions of service are similar.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies immediately to all proceedings pending before the commission.
new text end

Sec. 11.

Minnesota Statutes 2016, section 216B.16, subdivision 1a, is amended to read:


Subd. 1a.

Settlement.

(a) When a public utility submits a general rate filing, the Office
of Administrative Hearings, before conducting a contested case hearing, shall convene a
settlement conference including all of the parties for the purpose of encouraging settlement
of any or all of the issues in the contested case. If a stipulated settlement is not reached
before the contested case hearing, the Office of Administrative Hearings may reconvene
the settlement conference during or after completion of the contested case hearing at its
discretion or a party's request. The Office of Administrative Hearings or the commission
may, upon the request of any party and the public utility, extend the procedural schedule
of the contested case in order to permit the parties to engage in settlement discussions. An
extension must be for a definite period of time not to exceed 60 days.

(b) If the applicant and all intervening parties agree to a stipulated settlement of the case
or parts of the case, the settlement must be submitted to the commission. The commission
shall accept or reject the settlement in its entirety and, at any time until its final order is
issued in the case, may require the Office of Administrative Hearings to conduct a contested
case hearing. The commission may accept the settlement on finding that deleted text beginto do sodeleted text endnew text begin the
settlement is supported by substantial evidence and approving the settlement
new text end is in the public
interest deleted text beginand is supported by substantial evidencedeleted text end.new text begin The analysis must consider the impact of
the proposed settlement on the economy, job growth, and job retention.
new text end If the commission
does not accept the settlement, it may issue an order modifying the settlement subject to
the approval of the parties. Each party shall have ten days in which to reject the proposed
modification. If no party rejects the proposed modification, the commission's order becomes
final. If the commission rejects the settlement, or a party rejects the commission's proposed
modification, a contested case hearing must be completed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies immediately to all proceedings pending before the commission.
new text end

Sec. 12.

Minnesota Statutes 2016, section 216B.16, subdivision 6, is amended to read:


Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable servicenew text begin, as well as
the need for competitive electric rates, job preservation, and economic growth,
new text end and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. In determining the rate base upon which the utility is to be
allowed to earn a fair rate of return, the commission shall give due consideration to evidence
of the cost of the property when first devoted to public use, to prudent acquisition cost to
the public utility less appropriate depreciation on each, to construction work in progress, to
offsets in the nature of capital provided by sources other than the investors, and to other
expenses of a capital nature. For purposes of determining rate base, the commission shall
consider the original cost of utility property included in the base and shall make no allowance
for its estimated current replacement value. If the commission orders a generating facility
to terminate its operations before the end of the facility's physical life in order to comply
with a specific state or federal energy statute or policy, the commission may allow the public
utility to recover any positive net book value of the facility as determined by the commission.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies immediately to all proceedings pending before the commission.
new text end

Sec. 13.

Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:


Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and 2b, each public utility shall generate or procure sufficient electricity generated by solar
energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
generated by solar energy.

new text begin (b) For a public utility with more than 200,000 retail electric customers, new text endat least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less.

new text begin (c) A public utility with between 50,000 and 200,000 retail electric customers:
new text end

new text begin (1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and
new text end

new text begin (2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.
new text end

deleted text begin (b)deleted text endnew text begin (d)new text end The solar energy standard established in this subdivision is subject to all the
provisions of this section governing a utility's standard obligation under subdivision 2a.

deleted text begin (c)deleted text endnew text begin (e)new text end It is an energy goal of the state of Minnesota that, by 2030, ten percent of the
retail electric sales in Minnesota be generated by solar energy.

deleted text begin (d)deleted text endnew text begin (f)new text end For the purposes of calculating the total retail electric sales of a public utility
under this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

deleted text begin (e)deleted text endnew text begin (g)new text end A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

deleted text begin (f)deleted text endnew text begin (h)new text end Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

deleted text begin (g)deleted text endnew text begin (i)new text end Beginning July 1, 2014, and each July 1 through 2020, each public utility shall
file a report with the commission reporting its progress in achieving the solar energy standard
established under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 14.

Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read:


Subd. 1b.

Conservation improvement by cooperative association or municipality.

(a) This subdivision applies to:

(1) a cooperative electric association that provides retail service to deleted text beginitsdeleted text endnew text begin more than 5,000new text end
members;

(2) a municipality that provides electric service tonew text begin more than 1,000new text end retail customers; and

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

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

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

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

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

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

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

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

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

deleted text begin (h) MS 2010 [Expired, 1Sp2003 c 11 art 3 s 4; 2007 c 136 art 2 s 5]
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:


Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) Each individual utility and association shall have an annual energy-savings goal
equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the most
recent three-year weather-normalized average. A utility or association may elect to carry
forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar
years, except that savings from electric utility infrastructure projects allowed under paragraph
(d) may be carried forward for five years. A particular energy savings can be used only for
one year's goal.

(c) The commissioner must adopt a filing schedule that is designed to have all utilities
and associations operating under an energy-savings plan by calendar year 2010.

(d) In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based on its
historical conservation investment experience, customer class makeup, load growth, a
conservation potential study, or other factors the commissioner determines warrants an
adjustment. The commissioner may not approve a plan of a public utility that provides for
an annual energy-savings goal of less than one percent of gross annual retail energy sales
from energy conservation improvements.

A utility or association may include in its energy conservation plan energy savings from
electric utility infrastructure projects approved by the commission under section 216B.1636
or waste heat recovery converted into electricity projects that may count as energy savings
in addition to a minimum energy-savings goal of at least one percent for energy conservation
improvements. Energy savings from electric utility infrastructure projects, as defined in
section 216B.1636, may be included in the energy conservation plan of a municipal utility
or cooperative electric association. Electric utility infrastructure projects must result in
increased energy efficiency greater than that which would have occurred through normal
maintenance activity.

(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.

(f) An association or utility is not required to make energy conservation investments to
attain the energy-savings goals of this subdivision that are not cost-effective even if the
investment is necessary to attain the energy-savings goals. For the purpose of this paragraph,
in determining cost-effectiveness, the commissioner shall consider the costs and benefits
to ratepayers, the utility, participants, and society. In addition, the commissioner shall
consider the rate at which an association or municipal utility is increasing its energy savings
and its expenditures on energy conservation.

(g) On an annual basis, the commissioner shall produce and make publicly available a
report on the annual energy savings and estimated carbon dioxide reductions achieved by
the energy conservation improvement programs for the two most recent years for which
data is available. The commissioner shall report on program performance both in the
aggregate and for each entity filing an energy conservation improvement plan for approval
or review by the commissioner.

(h) By January 15, 2010, the commissioner shall report to the legislature whether the
spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.

new text begin (i) This subdivision does not apply to:
new text end

new text begin (1) a cooperative electric association with fewer than 5,000 members;
new text end

new text begin (2) a municipal utility with fewer than 1,000 retail electric customers; or
new text end

new text begin (3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales
to retail natural gas customers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read:


Subd. 2.

Programs.

(a) The commissioner may require public utilities to make
investments and expenditures in energy conservation improvements, explicitly setting forth
the interest rates, prices, and terms under which the improvements must be offered to the
customers. The required programs must cover no more than a three-year period. Public
utilities shall file conservation improvement plans by June 1, on a schedule determined by
order of the commissioner, but at least every three years. Plans received by a public utility
by June 1 must be approved or approved as modified by the commissioner by December 1
of that same year. The commissioner shall evaluate the program on the basis of
cost-effectiveness and the reliability of technologies employed. The commissioner's order
must provide to the extent practicable for a free choice, by consumers participating in the
program, of the device, method, material, or project constituting the energy conservation
improvement and for a free choice of the seller, installer, or contractor of the energy
conservation improvement, provided that the device, method, material, or project seller,
installer, or contractor is duly licensed, certified, approved, or qualified, including under
the residential conservation services program, where applicable.

(b) The commissioner may require a utilitynew text begin subject to subdivision 1cnew text end to make an energy
conservation improvement investment or expenditure whenever the commissioner finds
that the improvement will result in energy savings at a total cost to the utility less than the
cost to the utility to produce or purchase an equivalent amount of new supply of energy.
The commissioner shall nevertheless ensure that every public utility operate one or more
programs under periodic review by the department.

(c) Each public utility subject to subdivision 1a may spend and invest annually up to ten
percent of the total amount required to be spent and invested on energy conservation
improvements under this section by the utility on research and development projects that
meet the definition of energy conservation improvement in subdivision 1 and that are funded
directly by the public utility.

(d) A public utility may not spend for or invest in energy conservation improvements
that directly benefit a large energy facility or a large electric customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The
commissioner shall consider and may require a utility to undertake a program suggested by
an outside source, including a political subdivision, a nonprofit corporation, or community
organization.

(e) A utility, a political subdivision, or a nonprofit or community organization that has
suggested a program, the attorney general acting on behalf of consumers and small business
interests, or a utility customer that has suggested a program and is not represented by the
attorney general under section 8.33 may petition the commission to modify or revoke a
department decision under this section, and the commission may do so if it determines that
the program is not cost-effective, does not adequately address the residential conservation
improvement needs of low-income persons, has a long-range negative effect on one or more
classes of customers, or is otherwise not in the public interest. The commission shall reject
a petition that, on its face, fails to make a reasonable argument that a program is not in the
public interest.

(f) The commissioner may order a public utility to include, with the filing of the utility's
annual status report, the results of an independent audit of the utility's conservation
improvement programs and expenditures performed by the department or an auditor with
experience in the provision of energy conservation and energy efficiency services approved
by the commissioner and chosen by the utility. The audit must specify the energy savings
or increased efficiency in the use of energy within the service territory of the utility that is
the result of the spending and investments. The audit must evaluate the cost-effectiveness
of the utility's conservation programs.

(g) A gas utility may not spend for or invest in energy conservation improvements that
directly benefit a large customer facility or commercial gas customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or
(e). The commissioner shall consider and may require a utility to undertake a program
suggested by an outside source, including a political subdivision, a nonprofit corporation,
or a community organization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read:


Subd. 5.

Efficient lighting program.

(a) Each public utility, cooperative electric
association, and municipal utility that provides electric service to retail customersnew text begin and is
subject to subdivision 1c
new text end shall include as part of its conservation improvement activities a
program to strongly encourage the use of fluorescent and high-intensity discharge lamps.
The program must include at least a public information campaign to encourage use of the
lamps and proper management of spent lamps by all customer classifications.

(b) A public utility that provides electric service at retail to 200,000 or more customers
shall establish, either directly or through contracts with other persons, including lamp
manufacturers, distributors, wholesalers, and retailers and local government units, a system
to collect for delivery to a reclamation or recycling facility spent fluorescent and
high-intensity discharge lamps from households and from small businesses as defined in
section 645.445 that generate an average of fewer than ten spent lamps per year.

(c) A collection system must include establishing reasonably convenient locations for
collecting spent lamps from households and financial incentives sufficient to encourage
spent lamp generators to take the lamps to the collection locations. Financial incentives may
include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash
back system, or any other financial incentive or group of incentives designed to collect the
maximum number of spent lamps from households and small businesses that is reasonably
feasible.

(d) A public utility that provides electric service at retail to fewer than 200,000 customers,
a cooperative electric association, or a municipal utility that provides electric service at
retail to customers may establish a collection system under paragraphs (b) and (c) as part
of conservation improvement activities required under this section.

(e) The commissioner of the Pollution Control Agency may not, unless clearly required
by federal law, require a public utility, cooperative electric association, or municipality that
establishes a household fluorescent and high-intensity discharge lamp collection system
under this section to manage the lamps as hazardous waste as long as the lamps are managed
to avoid breakage and are delivered to a recycling or reclamation facility that removes
mercury and other toxic materials contained in the lamps prior to placement of the lamps
in solid waste.

(f) If a public utility, cooperative electric association, or municipal utility contracts with
a local government unit to provide a collection system under this subdivision, the contract
must provide for payment to the local government unit of all the unit's incremental costs of
collecting and managing spent lamps.

(g) All the costs incurred by a public utility, cooperative electric association, or municipal
utility for promotion and collection of fluorescent and high-intensity discharge lamps under
this subdivision are conservation improvement spending under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read:


Subd. 5d.

On-bill repayment programs.

(a) For the purposes of this subdivision:

(1) "utility" means a public utility, municipal utility, or cooperative electric associationnew text begin
subject to subdivision 1c
new text end that provides electric or natural gas service to retail customers;
and

(2) "on-bill repayment program" means a program in which a utility collects on a
customer's bill repayment of a loan to the customer by an eligible lender to finance the
customer's investment in eligible energy conservation or renewable energy projects, and
remits loan repayments to the lender.

(b) A utility may include as part of its conservation improvement plan an on-bill
repayment program to enable a customer to finance eligible projects with installment loans
originated by an eligible lender. An eligible project is one that is either an energy conservation
improvement, or a project installed on the customer's site that uses an eligible renewable
energy source as that term is defined in section 216B.2411, subdivision 2, paragraph (b),
but does not include mixed municipal solid waste or refuse-derived fuel from mixed
municipal solid waste. An eligible renewable energy source also includes solar thermal
technology that collects the sun's radiant energy and uses that energy to heat or cool air or
water, and meets the requirements of section 216C.25. To be an eligible lender, a lender
must:

(1) have a federal or state charter and be eligible for federal deposit insurance;

(2) be a government entity, including an entity established under chapter 469, that has
authority to provide financial assistance for energy efficiency and renewable energy projects;

(3) be a joint venture by utilities established under section 452.25; or

(4) be licensed, certified, or otherwise have its lending activities overseen by a state or
federal government agency.

The commissioner must allow a utility broad discretion in designing and implementing an
on-bill repayment program, provided that the program complies with this subdivision.

(c) A utility may establish an on-bill repayment program for all customer classes or for
a specific customer class.

(d) A public utility that implements an on-bill repayment program under this subdivision
must enter into a contract with one or more eligible lenders that complies with the
requirements of this subdivision and contains provisions addressing capital commitments,
loan origination, transfer of loans to the public utility for on-bill repayment, and acceptance
of loans returned due to delinquency or default.

(e) A public utility's contract with a lender must require the lender to comply with all
applicable federal and state laws, rules, and regulations related to lending practices and
consumer protection; to conform to reasonable and prudent lending standards; and to provide
businesses that sell, maintain, and install eligible projects the ability to participate in an
on-bill repayment program under this subdivision on a nondiscriminatory basis.

(f) A public utility's contract with a lender may provide:

(1) for the public utility to purchase loans from the lender with a condition that the lender
must purchase back loans in delinquency or default; or

(2) for the lender to retain ownership of loans with the public utility servicing the loans
through on-bill repayment as long as payments are current.

The risk of default must remain with the lender. The lender shall not have recourse against
the public utility except in the event of negligence or breach of contract by the utility.

(g) If a public utility customer makes a partial payment on a utility bill that includes a
loan installment, the partial payment must be credited first to the amount owed for utility
service, including taxes and fees. A public utility may not suspend or terminate a customer's
utility service for delinquency or default on a loan that is being serviced through the public
utility's on-bill repayment program.

(h) An outstanding balance on a loan being repaid under this subdivision is a financial
obligation only of the customer who is signatory to the loan, and not to any subsequent
customer occupying the property associated with the loan. If the public utility purchases
loans from the lender as authorized under paragraph (f), clause (1), the public utility must
return to the lender a loan not repaid when a customer borrower no longer occupies the
property.

(i) Costs incurred by a public utility under this subdivision are recoverable as provided
in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs
for billing system modifications necessary to implement and operate an on-bill repayment
program and for ongoing costs to operate the program. Costs in a plan approved by the
commissioner may be counted toward a utility's conservation spending requirements under
subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting
from this section may be counted toward satisfying a utility's energy-savings goals under
subdivision 1c.

(j) This subdivision does not require a utility to terminate or modify an existing financing
program and does not prohibit a utility from establishing an on-bill financing program in
which the utility provides the financing capital.

(k) A municipal utility or cooperative electric association that implements an on-bill
repayment program shall design the program to address the issues identified in paragraphs
(d) through (h) as determined by the governing board of the utility or association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read:


Subd. 7.

Low-income programs.

(a) The commissioner shall ensure that each utility
and associationnew text begin subject to subdivision 1cnew text end provides low-income programs. When approving
spending and energy-savings goals for low-income programs, the commissioner shall
consider historic spending and participation levels, energy savings for low-income programs,
and the number of low-income persons residing in the utility's service territory. A municipal
utility that furnishes gas service must spend at least 0.2 percent, and a public utility furnishing
gas service must spend at least 0.4 percent, of its most recent three-year average gross
operating revenue from residential customers in the state on low-income programs. A utility
or association that furnishes electric service must spend at least 0.1 percent of its gross
operating revenue from residential customers in the state on low-income programs. For a
generation and transmission cooperative association, this requirement shall apply to each
association's members' aggregate gross operating revenue from sale of electricity to residential
customers in the state. Beginning in 2010, a utility or association that furnishes electric
service must spend 0.2 percent of its gross operating revenue from residential customers in
the state on low-income programs.

(b) To meet the requirements of paragraph (a), a utility or association may contribute
money to the energy and conservation account. An energy conservation improvement plan
must state the amount, if any, of low-income energy conservation improvement funds the
utility or association will contribute to the energy and conservation account. Contributions
must be remitted to the commissioner by February 1 of each year.

(c) The commissioner shall establish low-income programs to utilize money contributed
to the energy and conservation account under paragraph (b). In establishing low-income
programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and
community organizations, especially organizations engaged in providing energy and
weatherization assistance to low-income persons. Money contributed to the energy and
conservation account under paragraph (b) must provide programs for low-income persons,
including low-income renters, in the service territory of the utility or association providing
the money. The commissioner shall record and report expenditures and energy savings
achieved as a result of low-income programs funded through the energy and conservation
account in the report required under subdivision 1c, paragraph (g). The commissioner may
contract with a political subdivision, nonprofit or community organization, public utility,
municipality, or cooperative electric association to implement low-income programs funded
through the energy and conservation account.

(d) A utility or association may petition the commissioner to modify its required spending
under paragraph (a) if the utility or association and the commissioner have been unable to
expend the amount required under paragraph (a) for three consecutive years.

(e) The costs and benefits associated with any approved low-income gas or electric
conservation improvement program that is not cost-effective when considering the costs
and benefits to the utility may, at the discretion of the utility, be excluded from the calculation
of net economic benefits for purposes of calculating the financial incentive to the utility.
The energy and demand savings may, at the discretion of the utility, be applied toward the
calculation of overall portfolio energy and demand savings for purposes of determining
progress toward annual goals and in the financial incentive mechanism.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:


Subd. 2.

Resource plan filing and approval.

new text begin(a) new text endA utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined in section
216B.02, subdivision 4, consistent with the public interest.new text begin The analysis must consider the
economy, job growth, and job retention.
new text end

new text begin (b)new text end In the resource plan proceedings of all other utilities, the commission's order shall
be advisory and the order's findings and conclusions shall constitute prima facie evidence
which may be rebutted by substantial evidence in all other proceedings. With respect to
utilities other than those defined in section 216B.02, subdivision 4, the commission shall
consider the filing requirements and decisions in any comparable proceedings in another
jurisdiction.

new text begin (c)new text end As a part of its resource plan filing, a utility shall include the least cost plan for
meeting 50 and 75 percent of all new text beginenergy needs from both new text endnew and refurbished deleted text begincapacity
needs
deleted text endnew text begin generating facilitiesnew text end through a combination of conservation and renewable energy
resources.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2016, section 216B.2422, subdivision 3, is amended to read:


Subd. 3.

Environmental costs.

(a) The commission shall, to the extent practicable,
quantify and establish a range of environmental costs associated with each method of
electricity generation. A utility shall use the values established by the commission in
conjunction with other external factors, including socioeconomic costs, when evaluating
and selecting resource options in all proceedings before the commission, including resource
plan and certificate of need proceedings.new text begin As part of the resource options and socioeconomic
cost analysis under this section, the utility must calculate the impact of resource options on
customers' bills and utility rates. Any doubt regarding the various resource options before
the commission must be resolved in favor of supporting the economy, job growth, and job
retention.
new text end

(b) The commission shall establish interim environmental cost values associated with
each method of electricity generation by March 1, 1994. These values expire on the date
the commission establishes environmental cost values under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies immediately to all proceedings pending before the commission.
new text end

Sec. 22.

Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:


Subd. 4.

Preference for renewable energy facility.

The commission shall not approve
a new or refurbished nonrenewable energy facility in an integrated resource plan or a
certificate of need, pursuant to section 216B.243, nor shall the commission allow rate
recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the
utility has demonstrated that a renewable energy facility is not in the public interest. new text beginWhen
making
new text endthe public interest determinationnew text begin, the commissionnew text end must deleted text beginincludedeleted text endnew text begin consider:
new text end

new text begin (1)new text end whether the resource plan helps the utility achieve the greenhouse gas reduction
goals under section 216H.02, the renewable energy standard under section 216B.1691, or
the solar energy standard under section 216B.1691, subdivision 2fdeleted text begin.deleted text endnew text begin;
new text end

new text begin (2) impacts on local and regional grid reliability;
new text end

new text begin (3) utility and ratepayer impacts resulting from the intermittent nature of renewable
energy facilities, including but not limited to the costs of purchasing wholesale electricity
in the market and the costs of providing ancillary services; and
new text end

new text begin (4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
changes in transmission costs, portfolio diversification, and environmental compliance
costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 23.

Minnesota Statutes 2016, section 216B.243, subdivision 8, is amended to read:


Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a wind energy conversion system or solar electric generation facility if the system
or facility is owned and operated by an independent power producer and the electric output
of the system or facility is not sold to an entity that provides retail service in Minnesota or
wholesale electric service to another entity in Minnesota other than an entity that is a federally
recognized regional transmission organization or independent system operator; deleted text beginor
deleted text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2
, or a solar energy generating large energy facility, as defined in section deleted text begin216B.2421,
subdivision 2
deleted text endnew text begin 216E.01, subdivision 9anew text end, engaging in a repowering project that:

(i) will not result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increasedeleted text begin.deleted text endnew text begin;
new text end

new text begin (9) a large wind energy conversion system, as defined in section 216F.01, subdivision
2;
new text end

new text begin (10) a solar energy generating system, as defined in section 216E.01, subdivision 9a,
with a capacity of five megawatts or more;
new text end

new text begin (11) a pipeline transporting crude oil or refined petroleum products;
new text end

new text begin (12) a pipeline transporting natural gas or propane; or
new text end

new text begin (13) a replacement pipeline.
new text end

(b) For the purpose of this subdivision, new text beginthe following terms have the meanings given:
new text end

new text begin (1) new text end"repowering project" means:

deleted text begin (1)deleted text endnew text begin (i)new text end modifying a large wind energy conversion system or a solar energy generating
large energy facility to increase its efficiency without increasing its nameplate capacity;

deleted text begin (2)deleted text endnew text begin (ii)new text end replacing turbines in a large wind energy conversion system without increasing
the nameplate capacity of the system; or

deleted text begin (3)deleted text endnew text begin (iii)new text end increasing the nameplate capacity of a large wind energy conversion systemnew text begin;
and
new text end

new text begin (2) "replacement pipeline" means a pipeline constructed in a new or existing right-of-way
that replaces service provided by an existing pipeline that will be permanently removed
from service within 180 days of the date of initial service of the replacement pipeline
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read:


Subd. 2.

Energy policy goals.

It is the energy policy of the state of Minnesota that:

(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
electricity and natural gas be achieved through cost-effective energy efficiency;

(2) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the
year 2015, through increased reliance on energy efficiency and renewable energy alternatives;
deleted text begin and
deleted text end

(3) 25 percent of the total energy used in the state be derived from renewable energy
resources by the year 2025deleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) retail electricity rates be at least ten percent below the national average for commercial
customers and at least five percent below the national average for all other customer classes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 25.

Minnesota Statutes 2016, section 216C.41, subdivision 2, is amended to read:


Subd. 2.

Incentive payment; appropriation.

(a) Incentive payments must be made
according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner
or operator of a qualified hydropower facility or qualified wind energy conversion facility
for electric energy generated and sold by the facility, (3) a publicly owned hydropower
facility for electric energy that is generated by the facility and used by the owner of the
facility outside the facility, or (4) the owner of a publicly owned dam that is in need of
substantial repair, for electric energy that is generated by a hydropower facility at the dam
and the annual incentive payments will be used to fund the structural repairs and replacement
of structural components of the dam, or to retire debt incurred to fund those repairs.

(b) Payment may only be made upon receipt by the commissioner of commerce of an
incentive payment application that establishes that the applicant is eligible to receive an
incentive payment and that satisfies other requirements the commissioner deems necessary.
The application must be in a form and submitted at a time the commissioner establishes.

(c) There is annually appropriated from the deleted text beginrenewable developmentdeleted text endnew text begin energy fundnew text end account
new text begin established new text endunder section 116C.779 to the commissioner of commerce sums sufficient to
make the payments required under this section, in addition to the amounts funded by the
deleted text begin renewable developmentdeleted text endnew text begin energy fundnew text end account as specified in subdivision 5a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 26.

Minnesota Statutes 2016, section 216C.41, subdivision 5a, is amended to read:


Subd. 5a.

deleted text beginRenewable development accountdeleted text endnew text begin Payment authorizationnew text end.

The Department
of Commerce shall authorize payment of the renewable energy production incentive to wind
energy conversion systems that are eligible under this section or Laws 2005, chapter 40, to
on-farm biogas recovery facilities, and to hydroelectric facilities. Payment of the incentive
shall be made from the deleted text beginrenewabledeleted text end energy deleted text begindevelopmentdeleted text endnew text begin fundnew text end account as provided under
section 116C.779, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27.

new text begin [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA"
SOLAR ENERGY PRODUCTION INCENTIVES.
new text end

new text begin Subdivision 1. new text end

new text begin General provisions. new text end

new text begin Payment of a "Made in Minnesota" solar energy
production incentive to an owner whose application was approved by the commissioner of
commerce under section 216C.415 prior to the effective date of this section must be
administered under the provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413;
216C.414, subdivisions 1 to 3 and 5; and 216C.415. No incentive payments may be made
under this section to an owner whose application was approved by the commissioner after
the effective date of this section.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) Unspent money remaining in the account established under
Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the
energy fund account in the special revenue fund established under section 116C.779,
subdivision 1.
new text end

new text begin (b) There is annually appropriated from the energy fund account in the special revenue
fund established in section 116C.779 to the commissioner of commerce money sufficient
to make the incentive payments required under Minnesota Statutes 2016, section 216C.415.
new text end

new text begin (c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of
this appropriation may be used for administrative costs.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility window; payment duration. new text end

new text begin (a) Payments may be made under this
subdivision only for solar photovoltaic module installations that meet the requirements of
subdivision 1 and that first begin generating electricity between January 1, 2014, and
December 31, 2017.
new text end

new text begin (b) The payment eligibility window of the incentive begins and runs consecutively from
the date the solar photovoltaic module first begins generating electricity.
new text end

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

new text begin (d) No payment may be made under this section for electricity generated after December
31, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 28.

Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
to read:


new text begin Subd. 7a. new text end

new text begin Multifamily residential dwelling. new text end

new text begin "Multifamily residential dwelling" means
a residential dwelling containing five or more units intended for use as a residence by tenants
or lessees of the owner.
new text end

Sec. 29.

Minnesota Statutes 2016, section 216E.03, subdivision 3, is amended to read:


Subd. 3.

Application.

Any person seeking to construct a large electric power generating
plant or a high-voltage transmission line must apply to the commission for a site or route
permit. The application shall contain such information as the commission may require. The
applicant deleted text beginshalldeleted text end new text beginmaynew text end propose at least two sites for a large electric power generating plant and
two routes for a high-voltage transmission line. Neither of the two proposed routes may be
designated as a preferred route and all proposed routes must be numbered and designated
as alternatives. The commission shall determine whether an application is complete and
advise the applicant of any deficiencies within ten days of receipt. An application is not
incomplete if information not in the application can be obtained from the applicant during
the first phase of the process and that information is not essential for notice and initial public
meetings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 30.

Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:


Subd. 9.

Timing.

The commission shall make a final decision on an application within
60 days after receipt of the report of the administrative law judge. A final decision on the
request for a site permit or route permit shall be made within one year after the commission's
determination that an application is complete. The commission may extend this time limit
for up to deleted text beginthree monthsdeleted text end new text begin30 days new text endfor just cause or upon agreement of the applicant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 31.

Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:


Subd. 7.

Timing.

The commission shall make a final decision on an application within
60 days after completion of the public hearing. A final decision on the request for a site
permit or route permit under this section shall be made within six months after the
commission's determination that an application is complete. The commission may extend
this time limit for up to deleted text beginthree monthsdeleted text end new text begin30 days new text endfor just cause or upon agreement of the
applicant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 32.

Minnesota Statutes 2016, section 216F.01, subdivision 2, is amended to read:


Subd. 2.

Large wind energy conversion system or LWECS.

"Large wind energy
conversion system" or "LWECS" means any combination of WECS with a combined
nameplate capacity of 5,000 kilowatts or morenew text begin and transmission lines directly associated
with the LWECS that are necessary to interconnect the LWECS to the transmission system
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 33.

Minnesota Statutes 2016, section 216F.011, is amended to read:


216F.011 SIZE DETERMINATION.

(a) The total size of a combination of wind energy conversion systems for the purpose
of determining what jurisdiction has siting authority under this chapter must be determined
according to this section. The nameplate capacity of one wind energy conversion system
must be combined with the nameplate capacity of any other wind energy conversion system
that:

(1) is located within five miles of the wind energy conversion system;

(2) is constructed within the same 12-month period as the wind energy conversion
system; and

(3) exhibits characteristics of being a single development, including, but not limited to,
ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing
arrangements, and common debt or equity financing.

(b) The commissioner shall provide forms and assistance for project developers to make
a request for a size determination. Upon written request of a project developer, the
commissioner of commerce shall provide a written size determination within 30 days of
receipt of the request and of any information new text beginneeded to complete the size determination that
has been
new text endrequested by the commissioner. In the case of a dispute, the chair of the Public
Utilities Commission shall make the final size determination.

(c) An application to a county for a permit under this chapter for a wind energy conversion
system is not complete without a size determination made under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 34.

Minnesota Statutes 2016, section 216F.04, is amended to read:


216F.04 SITE PERMIT.

(a) No person may construct an LWECS without a site permit issued by the Public
Utilities Commission.

(b) Any person seeking to construct an LWECS shall submit an application to the
commission for a site permit in accordance with this chapter and any rules adopted by the
commission. The permitted site need not be contiguous land.

(c) The commission shall make a final decision on an application for a site permit for
an LWECS within 180 days after acceptance of a complete application by the commission.
The commission may extend this deadline deleted text beginfor causedeleted text endnew text begin if the proposer agrees to an extension
in writing
new text end.

(d) The commission may place conditions in a permit and may deny, modify, suspend,
or revoke a permit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 35.

new text begin [216G.025] ALTERNATIVE PIPELINE ROUTES; RESTRICTION.
new text end

new text begin Notwithstanding section 116D.04, subdivisions 2a and 6, and any other law or rule, no
environmental analysis of alternative routes for a pipeline seeking a routing permit may
include an alternative route that does not connect the pipeline's termini as proposed by the
applicant.
new text end

Sec. 36.

Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read:


Subd. 3.

Long-term increased emissions from power plants prohibited.

Unless
preempted by federal law, until a comprehensive and enforceable state law or rule pertaining
to greenhouse gases that directly limits and substantially reduces, over time, statewide power
sector carbon dioxide emissions is enacted and in effect, and except as allowed in
subdivisions 4 to 7, on and after August 1, 2009, no person shalldeleted text begin:
deleted text end

deleted text begin (1)deleted text end construct within the state a new large energy facility that would contribute to statewide
power sector carbon dioxide emissionsdeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) import or commit to import from outside the state power from a new large energy
facility that would contribute to statewide power sector carbon dioxide emissions; or
deleted text end

deleted text begin (3) enter into a new long-term power purchase agreement that would increase statewide
power sector carbon dioxide emissions. For purposes of this section, a long-term power
purchase agreement means an agreement to purchase 50 megawatts of capacity or more for
a term exceeding five years.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 37.

Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read:


Subd. 4.

Exception for facilities that offset emissions.

(a) The deleted text beginprohibitions indeleted text endnew text begin prohibition
under
new text end subdivision 3 deleted text begindodeleted text endnew text begin doesnew text end not apply if the project proponent demonstrates to the Public
Utilities Commission's satisfaction that it will offset the new contribution to statewide power
sector carbon dioxide emissions with a carbon dioxide reduction project identified in
paragraph (b) and in compliance with paragraph (c).

(b) A project proponent may offset in an amount equal to or greater than the proposed
new contribution to statewide power sector carbon dioxide emissions in either, or a
combination of both, of the following ways:

(1) by reducing an existing facility's contribution to statewide power sector carbon
dioxide emissions; or

(2) by purchasing carbon dioxide allowances from a state or group of states that has a
carbon dioxide cap and trade system in place that produces verifiable emissions reductions.

(c) The Public Utilities Commission shall not find that a proposed carbon dioxide
reduction project identified in paragraph (b) acceptably offsets a new contribution to statewide
power sector carbon dioxide emissions unless the proposed offsets are permanent,
quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section
does not exempt emissions that have been offset under this subdivision and emissions
exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 38.

Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read:


Subd. 7.

Other exemptions.

The deleted text beginprohibitions indeleted text endnew text begin prohibition undernew text end subdivision 3 deleted text begindodeleted text endnew text begin doesnew text end
not apply to:

(1) a new large energy facility under consideration by the Public Utilities Commission
pursuant to proposals or applications filed with the Public Utilities Commission before April
1, 2007, or to any power purchase agreement related to a facility described in this clause.
The exclusion of pending proposals and applications from the prohibitions in subdivision
3 does not limit the applicability of any other law and is not an expression of legislative
intent regarding whether any pending proposal or application should be approved or denied;

(2) a contract not subject to commission approval that was entered into prior to April 1,
2007, to purchase power from a new large energy facility that was approved by a comparable
authority in another state prior to that date, for which municipal or public power district
bonds have been issued, and on which construction has begun;

(3) a new large energy facility deleted text beginor a power purchase agreement between a Minnesota
utility and a new large energy facility
deleted text end located deleted text beginoutsidedeleted text endnew text begin withinnew text end Minnesota that the Public
Utilities Commission has determined is essential to ensure the long-term reliability of
Minnesota's electric system, to allow electric service for increased industrial demand, or to
avoid placing a substantial financial burden on Minnesota ratepayers. An order of the
commission granting an exemption under this clause is stayed until the June 1 following
the next regular or annual session of the legislature that begins after the date of the
commission's final order; or

(4) a new large energy facility with a combined electric generating capacity of less than
100 megawatts, which did not require a Minnesota certificate of need, which received an
air pollution control permit to construct from an adjoining state before January 1, 2008, and
on which construction began before July 1, 2008, or to any power purchase agreement
related to a facility described in this clause.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 39. new text beginRESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK
FORCE PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Residential PACE Consumer Protection Legislation
Task Force shall develop recommendations for consumer protection legislation for any
energy improvements financing program implemented under Minnesota Statutes, sections
216C.435 to 216C.436, for single-family residential dwellings. For purposes of this section,
"residential PACE" or "PACE" means energy improvement financing programs for
single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435
to 216C.436.
new text end

new text begin Subd. 2. new text end

new text begin Task force. new text end

new text begin (a) The task force consists of 16 members as follows:
new text end

new text begin (1) one member appointed by the Minnesota Association of Realtors;
new text end

new text begin (2) one member appointed by the Center for Energy and Environment;
new text end

new text begin (3) one member appointed by the Minnesota Bankers Association;
new text end

new text begin (4) one member appointed by the Legal Services Advocacy Project;
new text end

new text begin (5) one member appointed by the Minnesota Credit Union Network;
new text end

new text begin (6) one member appointed by the Minnesota Solar Energy Industry Association;
new text end

new text begin (7) one member appointed by the St. Paul Port Authority;
new text end

new text begin (8) one member appointed by the League of Minnesota Cities;
new text end

new text begin (9) one member appointed by the Association of Minnesota Counties;
new text end

new text begin (10) one member appointed by AARP Minnesota;
new text end

new text begin (11) one member appointed by Fresh Energy;
new text end

new text begin (12) one member appointed by the Citizens Utility Board of Minnesota;
new text end

new text begin (13) one member appointed by Clean Energy Economy Minnesota;
new text end

new text begin (14) one member appointed by the Minnesota Land Title Association;
new text end

new text begin (15) one member appointed by an organization with experience implementing residential
PACE programs in other states; and
new text end

new text begin (16) the commissioner of commerce or a designee.
new text end

new text begin (b) Any public member can designate a substitute from the same organization to replace
that member at a meeting of the task force.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The task force must develop recommendations to:
new text end

new text begin (1) address concerns regarding the possible constraints on free alienation of residential
property caused by existence and amount of the PACE liens;
new text end

new text begin (2) reduce and minimize any point-of-sale confusion in transactions involving
PACE-encumbered homes;
new text end

new text begin (3) ensure conspicuous and meaningful disclosure of, among other things:
new text end

new text begin (i) all costs and fees of a residential PACE loan; and
new text end

new text begin (ii) the risks, such as foreclosure and higher costs, that may be associated with residential
PACE loans relative to other financing mechanisms;
new text end

new text begin (4) ensure that the ability to repay standard uses commonly accepted underwriting
principles;
new text end

new text begin (5) ensure that consumer provisions required of and protections that apply to conventional
loans and other financing options, including but not limited to the Truth in Lending Act and
the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
new text end

new text begin (6) address any unique protections necessary for elderly, low-income homeowners and
other financially vulnerable homeowners;
new text end

new text begin (7) establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy
improvements; and
new text end

new text begin (8) address any other issues the task force identifies that are necessary to protect
consumers.
new text end

new text begin Subd. 4. new text end

new text begin Administrative support. new text end

new text begin The commissioner of commerce shall provide
administrative support and meeting space for the task force.
new text end

new text begin Subd. 5. new text end

new text begin Compensation. new text end

new text begin Members serve without compensation and shall not be
reimbursed for expenses.
new text end

new text begin Subd. 6. new text end

new text begin Chair. new text end

new text begin The commissioner of commerce or the commissioner's designee shall
serve as chair.
new text end

new text begin Subd. 7. new text end

new text begin Meetings. new text end

new text begin The task force shall meet regularly, at the call of the chair. Meetings
of the task force are subject to Minnesota Statutes, chapter 13D.
new text end

new text begin Subd. 8. new text end

new text begin Appointments; first meeting. new text end

new text begin Appointments must be made by June 1, 2017.
The commissioner of commerce must convene the first meeting by July 15, 2017.
new text end

new text begin Subd. 9. new text end

new text begin Report to legislature. new text end

new text begin By January 15, 2018, the commissioner shall submit a
report detailing the task force's findings and recommendations to the chairs and ranking
minority members of the senate and house of representatives committees with jurisdiction
over energy and consumer protection policy and finance. The report must include any draft
legislation necessary to implement the recommendations of the task force.
new text end

new text begin Subd. 10. new text end

new text begin Suspension of residential PACE. new text end

new text begin Until legislation is enacted establishing
consumer protections that address, but are not limited to, the concerns identified in
subdivision 3, no programs for the financing of energy improvements on a single-family
residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436,
may be operated after the effective date of this section.
new text end

new text begin Subd. 11. new text end

new text begin Expiration. new text end

new text begin The task force expires January 15, 2018, or after submitting the
report required in this section, whichever is earlier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 40. new text beginPROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
THERMAL REBATES.
new text end

new text begin (a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
of a solar thermal system whose application was approved by the commissioner of commerce
after the effective date of this section.
new text end

new text begin (b) Unspent money remaining in the account established under Minnesota Statutes 2014,
section 216C.416, as of July 2, 2017, must be transferred to the energy fund account
established under Minnesota Statutes 2016, section 116C.779, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 41. new text beginBIOMASS MANDATE PROJECTS; CONTINUING ADMINISTRATION.
new text end

new text begin Projects developed to meet the biomass mandate under Minnesota Statutes, section
216B.2424, prior to the effective date of this section continue to be governed by Minnesota
Statutes 2016, section 216B.2424, as amended by this article's amendments to that section,
applicable rules, applicable orders issued by the commission, and section 42.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 42. new text beginADJUSTMENT OF BIOMASS FUEL REQUIREMENT.
new text end

new text begin (a) Notwithstanding any provision in this section, a public utility that operates a
nuclear-powered electric generating plant may file a petition with the commission for
approval of a new or amended power purchase agreement, or, with the agreement of all
parties, the early termination of a power purchase agreement, with a facility that was
previously approved to satisfy a portion of the biomass mandate in Minnesota Statutes 2016,
section 216B.2424.
new text end

new text begin (b) A new or amended power purchase agreement under this subdivision may be approved
by the commission regardless of the fuel requirements of this section if, by its terms:
new text end

new text begin (1) all parties to the power purchase agreement agree to the terms and conditions of the
new or amended power purchase agreement; and
new text end

new text begin (2) the new or amended power purchase agreement is in the best interest of the customers
of the public utility that operates a nuclear-powered electric generating plant, taking into
consideration any savings to customers resulting from the new or amended power purchase
agreement and any costs imposed on customers under paragraph (f).
new text end

new text begin (c) The termination of a power purchase agreement under this subdivision may be
approved by the commission if:
new text end

new text begin (1) all parties to the power purchase agreement agree to the early termination of the
agreement; and
new text end

new text begin (2) the termination of the power purchase agreement is in the best interest of the customers
of the public utility that operates a nuclear-powered electric generating plant, taking into
consideration any savings to customers resulting from the termination of the power purchase
agreement and any costs imposed on customers under paragraph (f).
new text end

new text begin (d) A new or amended power purchase agreement approved under paragraph (b) may
be for any term agreed to by the parties for any amount of energy agreed to by the parties.
new text end

new text begin (e) The approval of a new or amended power purchase agreement under paragraph (b),
or the approval of a termination of a power purchase agreement under paragraph (c), shall
not require the public utility that operates a nuclear-powered electric generation plant to
purchase replacement biomass energy under this section.
new text end

new text begin (f) A utility may petition the commission to approve a rate schedule that provides for
the automatic adjustment of charges to recover investments, expenses and costs, and earnings
on the investment associated with the new or amended power purchase agreement or the
termination of a power purchase agreement. The commission may approve the rate schedule
upon a showing that the recovery of investments, expenses and costs, and earnings on the
investment is less than the costs that would have been recovered from customers had the
utility continued to purchase energy under the power purchase agreement that was terminated.
new text end

new text begin (g) This section does not apply to a St. Paul district heating and cooling system
cogeneration facility, and nothing in this subdivision precludes a public utility that operates
a nuclear-power electric generating plant from filing a petition with the commission for
approval of a new or amended power purchase agreement with such a facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 43. new text beginRENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
UNEXPENDED GRANT FUNDS.
new text end

new text begin (a) No later than 30 days after the effective date of this section, the utility subject to
Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
who received a grant funded from the renewable development account previously established
under that subdivision:
new text end

new text begin (1) after January 1, 2012; and
new text end

new text begin (2) before January 1, 2012, if the funded project remains incomplete as of the effective
date of this section.
new text end

new text begin The notice must contain the provisions of this section and instructions directing grant
recipients how unexpended funds can be transferred to the energy fund account.
new text end

new text begin (b) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after
receiving the notice required under paragraph (a), transfer any grant funds that remain
unexpended as of the effective date of this section to the energy fund account if, by that
effective date, all of the following conditions are met:
new text end

new text begin (1) the grant was awarded more than five years before the effective date of this section;
new text end

new text begin (2) the grant recipient has failed to obtain control of the site on which the project is to
be constructed;
new text end

new text begin (3) the grant recipient has failed to secure all necessary permits or approvals from any
unit of government with respect to the project; and
new text end

new text begin (4) construction of the project has not begun.
new text end

new text begin (c) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds
that remain unexpended five years after the grant funds are received by the grant recipient
if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
of the receipt of the grant funds.
new text end

new text begin (d) A person who transfers funds to the energy fund account under this section is eligible
to apply for funding from the Legislative Renewable Energy Council under Minnesota
Statutes, section 116C.7793.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 44. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Laws 2013, chapter 85, article 6, section 11, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2016, sections 216B.8109; 216B.811; 216B.812; 216B.813; and
216B.815,
new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2016, sections 3.8852; 116C.779, subdivision 3; 216B.2424; and
216C.29,
new text end new text begin are repealed.
new text end

new text begin (d) new text end new text begin Minnesota Statutes 2016, sections 174.187; 216C.411; 216C.412; 216C.413;
216C.414; 216C.415; and 216C.416,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 11

MISCELLANEOUS

Section 1.

new text begin [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
REMODELING; LEGISLATIVE NOTICE AND REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin As used in this section, "residential construction" means the
new construction or remodeling of any building subject to the Minnesota Residential Code.
new text end

new text begin Subd. 2. new text end

new text begin Impact on housing cost; agency determination. new text end

new text begin An agency must determine
if implementation of a proposed rule, or any portion of a proposed rule, will, on average,
increase the cost of residential construction or remodeling by $1,000 or more per unit. The
agency must make this determination before the close of the hearing record, or before the
agency submits the record to the administrative law judge if there is no hearing. The
administrative law judge must review and approve or disapprove an agency's determination
under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Notice to legislature; legislative approval. new text end

new text begin (a) If the agency determines that
the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision
2, or if the administrative law judge disapproves the agency's determination that the impact
does not meet or exceed that threshold, the agency must notify, in writing, the chairs and
ranking minority members of the policy committees of the house of representatives and the
senate with jurisdiction over the subject matter of the proposed rule within ten days of the
determination or disapproval.
new text end

new text begin (b) If a committee of either the house of representatives or senate with jurisdiction over
the subject matter of the proposed rule votes to advise an agency that the rule should not
be adopted as proposed, the agency may not adopt the rule unless the rule is approved by
a law enacted after the vote of the committee. Section 14.126, subdivision 2, applies to a
vote of a committee under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Severability. new text end

new text begin If the agency or an administrative law judge determines that part
of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a
severable portion of the proposed rule does not meet or exceed that threshold, the agency
may proceed to adopt the severable portions of the proposed rule regardless of whether a
legislative committee vote is conducted under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to
administrative rules proposed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read:


Subd. 4.

Interim ordinance.

(a) If a municipality is conducting studies or has authorized
a study to be conducted or has held or has scheduled a hearing for the purpose of considering
adoption or amendment of a comprehensive plan or official controls as defined in section
462.352, subdivision 15, or if new territory for which plans or controls have not been adopted
is annexed to a municipality, the governing body of the municipality may adopt an interim
ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning
process and the health, safety and welfare of its citizens. The interim ordinance may regulate,
restrict, or prohibit any use, development, or subdivision within the jurisdiction or a portion
thereof for a period not to exceed one year from the date it is effective.

(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities
relating to livestock production, a public hearing must be held following a ten-day notice
given by publication in a newspaper of general circulation in the municipality before the
interim ordinance takes effect.

new text begin (c)(1) A statutory or home rule charter city may adopt an interim ordinance that regulates,
restricts, or prohibits a housing proposal only if the ordinance is approved by at least
two-thirds of city council members present.
new text end

new text begin (2) Before adopting the interim ordinance, the city council must hold a public hearing
after providing written notice to any person who has submitted written information to the
city regarding a housing proposal that is potentially affected by the proposed interim
ordinance. The written notice must be provided at least three business days before the public
hearing. Notice also must be posted on the city's official Web site, if the city has an official
Web site.
new text end

new text begin (3) The date of the public hearing shall be the earlier of the next regularly scheduled
city council meeting after the notice period or within ten days of the notice.
new text end

new text begin (4) The activities proposed to be restricted by the proposed interim ordinance may not
be undertaken before the public hearing.
new text end

new text begin (5) For the purposes of this paragraph, "housing proposal" means a written request for
city approval of a project intended primarily to provide residential dwellings, either single
family or multi-family, and involves the subdivision or development of land or the
demolition, construction, reconstruction, alteration, repair, or occupancy of residential
dwellings.
new text end

deleted text begin (c)deleted text endnew text begin (d)new text end The period of an interim ordinance applicable to an area that is affected by a city's
master plan for a municipal airport may be extended for such additional periods as the
municipality may deem appropriate, not exceeding a total additional period of 18 months.
In all other cases, no interim ordinance may halt, delay, or impede a subdivision that has
been given preliminary approval, nor may any interim ordinance extend the time deadline
for agency action set forth in section 15.99 with respect to any application filed prior to the
effective date of the interim ordinance. The governing body of the municipality may extend
the interim ordinance after a public hearing and written findings have been adopted based
upon one or more of the conditions in clause (1), (2), or (3). The public hearing must be
held at least 15 days but not more than 30 days before the expiration of the interim ordinance,
and notice of the hearing must be published at least ten days before the hearing. The interim
ordinance may be extended for the following conditions and durations, but, except as
provided in clause (3), an interim ordinance may not be extended more than an additional
18 months:

(1) up to an additional 120 days following the receipt of the final approval or review by
a federal, state, or metropolitan agency when the approval is required by law and the review
or approval has not been completed and received by the municipality at least 30 days before
the expiration of the interim ordinance;

(2) up to an additional 120 days following the completion of any other process required
by a state statute, federal law, or court order, when the process is not completed at least 30
days before the expiration of the interim ordinance; or

(3) up to an additional one year if the municipality has not adopted a comprehensive
plan under this section at the time the interim ordinance is enacted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for interim ordinances proposed on or
after August 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 462A.201, subdivision 2, is amended to read:


Subd. 2.

Low-income housing.

(a) The agency may use money from the housing trust
fund account to provide loans or grants for:

(1) projects for the development, construction, acquisition, preservation, and rehabilitation
of low-income rental and limited equity cooperative housing units, including temporary
and transitional housing;

(2) the costs of operating rental housing, as determined by the agency, that are unique
to the operation of low-income rental housing or supportive housing; deleted text beginand
deleted text end

(3) rental assistance, either project-based or tenant-basednew text begin; and
new text end

new text begin (4) rental assistance to secure stable housing for families with children, or unaccompanied
homeless youth, eligible for enrollment in a prekindergarten through grade 12 academic
program
new text end.

For purposes of this section, "transitional housing" has the meaning given by the United
States Department of Housing and Urban Development. Loans or grants for residential
housing for migrant farmworkers may be made under this section.

(b) The housing trust fund account must be used for the benefit of persons and families
whose income, at the time of initial occupancy, does not exceed 60 percent of median income
as determined by the United States Department of Housing and Urban Development for the
metropolitan area. At least 75 percent of the funds in the housing trust fund account must
be used for the benefit of persons and families whose income, at the time of initial occupancy,
does not exceed 30 percent of the median family income for the metropolitan area as defined
in section 473.121, subdivision 2. For purposes of this section, a household with a housing
assistance voucher under Section 8 of the United States Housing Act of 1937, as amended,
is deemed to meet the income requirements of this section.

The median family income may be adjusted for families of five or more.

(c) Rental assistance under this section must be provided by governmental units which
administer housing assistance supplements or by for-profit or nonprofit organizations
experienced in housing management. Rental assistance shall be limited to households whose
income at the time of initial receipt of rental assistance does not exceed 60 percent of median
income, as determined by the United States Department of Housing and Urban Development
for the metropolitan area. Priority among comparable applications for tenant-based rental
assistance will be given to proposals that will serve households whose income at the time
of initial application for rental assistance does not exceed 30 percent of median income, as
determined by the United States Department of Housing and Urban Development for the
metropolitan area. Rental assistance must be terminated when it is determined that 30 percent
of a household's monthly income for four consecutive months equals or exceeds the market
rent for the unit in which the household resides plus utilities for which the tenant is
responsible. Rental assistance may only be used for rental housing units that meet the housing
maintenance code of the local unit of government in which the unit is located, if such a code
has been adopted, or the housing quality standards adopted by the United States Department
of Housing and Urban Development, if no local housing maintenance code has been adopted.

(d) In making the loans or grants, the agency shall determine the terms and conditions
of repayment and the appropriate security, if any, should repayment be required. To promote
the geographic distribution of grants and loans, the agency may designate a portion of the
grant or loan awards to be set aside for projects located in specified congressional districts
or other geographical regions specified by the agency. The agency may adopt rules for
awarding grants and loans under this subdivision.

Sec. 4.

Minnesota Statutes 2016, section 462A.204, subdivision 8, is amended to read:


Subd. 8.

School stability.

(a) The agency in consultation with the Interagency deleted text beginTask
Force
deleted text endnew text begin Councilnew text end on Homelessness may establish a school stability project under the family
homeless prevention and assistance program. The purpose of the project is to secure stable
housing for families with school-age children who have moved frequently and for
unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors
who are leaving foster care or juvenile correctional facilities, or minors who meet the
definition of a child in need of services or protection under section 260C.007, subdivision
6
, but for whom no court finding has been made pursuant to that statute.

(b) The agency shall make grants to family homeless prevention and assistance projects
in communities with a school or schools that have a significant degree of student mobility.

(c) Each project must be designed to reduce school absenteeism; stabilize children in
one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each
project must include plans for the following:

(1) targeting of families with children deleted text beginunder age 12 who, in the last 12 months have
either: changed schools or homes at least once or been absent from school at least 15 percent
of the school year and who have either been evicted from their housing;
deleted text endnew text begin who are eligible
for a prekindergarten through grade 12 academic program and
new text end are living in overcrowded
conditions in their current housing; deleted text beginordeleted text endnew text begin whonew text end are paying more than 50 percent of their income
for rent;new text begin or who lack a fixed, regular, and adequate nighttime residence;
new text end

(2) targeting of unaccompanied youth in need of an alternative residential setting;

(3) connecting families with the social services necessary to maintain the families'
stability in their home; and

(4) one or more of the following:

(i) provision of rental assistance for a specified period of time, which may exceed 24
months; or

(ii) deleted text begindevelopment of permanent supportive housing or transitional housingdeleted text endnew text begin provision of
support and case management services to improve housing stability, including but not limited
to housing navigation and family outreach
new text end.

(d) deleted text beginNotwithstanding subdivision 2, grants under this section may be used to acquire,
rehabilitate, or construct transitional or permanent housing
deleted text endnew text begin In selecting projects for funding
under this subdivision, preference shall be given to organizations granted funding under
section 462A.201, subdivision 2, paragraph (a), clause (4), and groups working in
collaboration with such organizations
new text end.

(e) deleted text beginEach grantee under the project must include representatives of the local school district
or targeted schools, or both, and of the local community correction agencies on its advisory
committee
deleted text endnew text begin No grantee under this subdivision is required to have an advisory committee as
described in subdivision 6
new text end.

Sec. 5.

new text begin [462A.39] WORKFORCE HOUSING DEVELOPMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of Minnesota housing finance shall
establish a workforce housing development program to award grants or deferred loans to
eligible project areas to be used for qualified expenditures.
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 following terms have the
meanings given.
new text end

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin The commissioner shall develop forms and procedures for soliciting
and reviewing application for grants or deferred loans under this section. At a minimum, a
city must include in its application a resolution of its governing body certifying that the
matching amount as required under this section is available and committed.
new text end

new text begin Subd. 4. new text end

new text begin Program requirements. new text end

new text begin (a) The commissioner must not award a grant or
deferred loans to an eligible project area under this section until the following determinations
are made:
new text end

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

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

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

new text begin (b) Preference for grants or deferred loans awarded under this section shall be given to
eligible project areas with less than 18,000 people.
new text end

new text begin Subd. 5. new text end

new text begin Allocation. new text end

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

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2018, the commissioner must annually submit
a report to the chairs and ranking minority members of the senate and house of representatives
committees having jurisdiction over taxes and workforce development specifying the projects
that received grants or deferred loans under this section and the specific purposes for which
the grant funds were used.
new text end

Sec. 6.

new text begin [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING
DEVELOPMENT.
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 to them.
new text end

new text begin (b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
new text end

new text begin (c) "Fund" means a local housing trust fund or a regional housing trust fund.
new text end

new text begin (d) "Local government" means any statutory or home rule charter city or a county.
new text end

new text begin (e) "Local housing trust fund" means a fund established by a local government with one
or more dedicated sources of public revenue for housing.
new text end

new text begin (f) "Regional housing trust fund" means a fund established and administered under a
joint powers agreement entered into by two or more local governments with one or more
dedicated sources of public revenue for housing.
new text end

new text begin Subd. 2. new text end

new text begin Creation and administration. new text end

new text begin (a) A local government may establish a local
housing trust fund by ordinance or participate in a joint powers agreement to establish a
regional housing trust fund.
new text end

new text begin (b) A local or regional housing trust fund may be, but is not required to be, administered
through a nonprofit organization. If administered through a nonprofit organization, that
organization shall encourage private charitable donations to the fund.
new text end

new text begin Subd. 3. new text end

new text begin Authorized expenditures. new text end

new text begin Money in a local or regional housing trust fund may
be used only to:
new text end

new text begin (1) pay for administrative expenses, but not more than ten percent of the balance of the
fund may be spent on administration;
new text end

new text begin (2) make grants, loans, and loan guarantees for the development, rehabilitation, or
financing of housing;
new text end

new text begin (3) match other funds from federal, state, or private resources for housing projects; or
new text end

new text begin (4) provide down payment assistance, rental assistance, and homebuyer counseling
services.
new text end

new text begin Subd. 4. new text end

new text begin Funding. new text end

new text begin (a) A local government may finance its local or regional housing
trust fund with any money available to the local government, unless expressly prohibited
by state law. Sources of these funds include, but are not limited to:
new text end

new text begin (1) donations;
new text end

new text begin (2) bond proceeds;
new text end

new text begin (3) grants and loans from a state, federal, or private source;
new text end

new text begin (4) appropriations by a local government to the fund;
new text end

new text begin (5) investment earnings of the fund; and
new text end

new text begin (6) housing and redevelopment authority levies.
new text end

new text begin (b) The local government may alter a source of funding for the local or regional housing
trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts
or expenditures authorized by the fund in its budget.
new text end

new text begin Subd. 5. new text end

new text begin Reports. new text end

new text begin A local or regional housing trust fund established under this section
must report annually to the local government that created the fund. The local government
or governments must post this report on its public Web site.
new text end

new text begin Subd. 6. new text end

new text begin Effect of legislation on existing local or regional housing trust funds. new text end

new text begin A
local or regional housing trust fund existing on the effective date of this section is not
required to alter the existing terms of its governing documents or take any additional
authorizing actions required by subdivision 2.
new text end

Sec. 7.

Minnesota Statutes 2016, section 473.145, is amended to read:


473.145 DEVELOPMENT GUIDE.

The Metropolitan Council shall prepare and adopt, after appropriate study and such
public hearings as may be necessary, a comprehensive development guide for the
metropolitan area. It shall consist of a compilation of policy statements, goals, standards,
programs, and maps prescribing guides for the orderly and economical development, public
and private, of the metropolitan area. The comprehensive development guide shall recognize
and encompass physical, social, or economic needs of the metropolitan area and those future
developments which will have an impact on the entire area including but not limited to such
matters as land use, parks and open space land needs, the necessity for and location of
airports, highways, transit facilities, public hospitals, libraries, schools, and other public
buildings.new text begin Notwithstanding any council action to adopt it, a plan or plan element relating
to housing does not take effect until a law is enacted approving the plan.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to plans adopted before, on, or after that date. This section
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 8.

Minnesota Statutes 2016, section 473.254, subdivision 2, is amended to read:


Subd. 2.

Affordable, life-cycle goals.

The council shall negotiate with each municipality
to establish affordable and life-cycle housing goals for that municipality that are consistent
with and promote the policies of the Metropolitan Council as provided in the adopted
Metropolitan Development Guide. The council shall adopt, by resolution after a public
hearing, the negotiated affordable and life-cycle housing goals for each municipality by
January 15, 1996, and by January 15 in each succeeding year for each municipality newly
electing to participate in the program or for each municipality with which new housing
goals have been negotiated. By June 30, 1996, and by June 30 in each succeeding year for
each municipality newly electing to participate in the program or for each municipality with
which new housing goals have been negotiated, each municipality shall identify to the
council the actions it plans to take to meet the established housing goals.

new text begin Beginning in 2018, the negotiated affordable and life-cycle housing goals for each
municipality must be submitted by January 15 each year to the chairs and ranking minority
members of the legislative committees with jurisdiction over the Metropolitan Council and
housing policy and finance, and may be adopted by the council only after a law is enacted
approving them or the legislature has adjourned its regular session for that calendar year
without taking any action on the matter.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 9.

Minnesota Statutes 2016, section 473.254, subdivision 3a, is amended to read:


Subd. 3a.

Affordable, life-cycle housing opportunities amount.

(a) Each municipality's
"affordable and life-cycle housing opportunities amount" for that year must be determined
annually by the council using the method in this subdivision. The affordable and life-cycle
housing opportunities amount must be determined for each calendar year for all municipalities
in the metropolitan area.

(b) The council must allocate to each municipality its portion of the $1,000,000 of the
revenue generated by the levy authorized in section 473.249 which is credited to the local
housing incentives account pursuant to subdivision 5, paragraph (b). The allocation must
be made by determining the amount levied for and payable in each municipality in the
previous calendar year pursuant to the council levy in section 473.249 divided by the total
amount levied for and payable in the metropolitan area in the previous calendar year pursuant
to such levy and multiplying that result by $1,000,000.

(c) The council must also determine the amount levied for and payable in each
municipality in the previous calendar year pursuant to the council levy in section 473.253,
subdivision 1
.

(d) A municipality's affordable and life-cycle housing opportunities amount for the
calendar year is the sum of the amounts determined under paragraphs (b) and (c).

new text begin (e) The council must report to the chairs and ranking minority members of the legislative
committees with jurisdiction over the Metropolitan Council and housing policy and finance
by March 15 each year the council's estimated amount under paragraph (d). The legislature
may approve, modify, or reject the amounts the council will use in paragraph (f). If no law
is enacted to approve, modify, or reject the amounts during the regular legislative session
for that calendar year, the council may proceed with its proposed amounts.
new text end

deleted text begin (e)deleted text endnew text begin (f)new text end By August 1 of each year, the council must notify each municipality of its
affordable and life-cycle housing opportunities amount for the following calendar year
determined by the method in this subdivision.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 10.

new text begin [474A.22] WORKFORCE HOUSING, TAX-EXEMPT BONDING
ALLOCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin In addition to the definitions in section 474A.02, for the
purposes of this section, the following terms have the meanings given them:
new text end

new text begin (1) "aggregate bond limitation" means 55 percent of the reasonably expected aggregate
basis of the project and the land on which the project is located;
new text end

new text begin (2) "AMI" means the area median income as published by the Department of Housing
and Urban Development, adjusted for household size; and
new text end

new text begin (3) "workforce housing" means a multifamily housing project in which, for a period of
at least 15 years following completion, at least 80 percent of rental units are occupied or
held for occupancy by persons or families whose adjusted income does not exceed 60 percent
of AMI and at least 80 percent of rental units in the project are rent restricted in an amount
of 30 percent to 60 percent of AMI.
new text end

new text begin Subd. 2. new text end

new text begin No single-family set aside for two years. new text end

new text begin Notwithstanding section 474A.03,
subdivision 1, clause (2), the commissioner of management and budget shall not set aside
any of the housing pool for single-family housing programs prior to December 31, 2019.
new text end

new text begin Subd. 3. new text end

new text begin Additional application requirements. new text end

new text begin In addition to any other application
requirements for an allocation under sections 474A.061, subdivision 1, and 474A.091,
subdivision 2, for a residential rental project, an applicant must provide a statement as to:
new text end

new text begin (1) whether the project owner intends to apply for and receive low-income housing tax
credits for the project under section 42 of the Internal Revenue Code of 1986, as amended,
from the applicable allocating agency;
new text end

new text begin (2) whether the proposed residential rental project meets the definition of workforce
housing; and
new text end

new text begin (3) whether the aggregate of the amount of tax-exempt bonds previously allocated to a
project under section 474A.061 or 474A.091, if any, and the amount of bonds requested in
the application for that same project exceeds the aggregate bond limitation.
new text end

new text begin Subd. 4. new text end

new text begin Re-prioritized housing pool allocations. new text end

new text begin Notwithstanding section 474A.061,
subdivision 2a, paragraph (a), commencing on the second Tuesday in January and continuing
on each Monday through July 15, the commissioner shall allocate available bonding authority
from the housing pool to applications received on or before the Monday of the preceding
week for residential rental projects that meet the eligibility criteria under section 474A.047,
and after the second Tuesday in January through July 15, for single-family housing programs.
Allocations of available bonding authority from the housing pool for eligible uses shall be
awarded in the following order of priority:
new text end

new text begin (1) residential rental projects that preserve existing federally subsidized housing and the
aggregate amount of bonds requested in the application and any previous allocation of bonds
do not exceed the aggregate bond limitation;
new text end

new text begin (2) residential rental projects that:
new text end

new text begin (i) intend to apply for and receive low-income housing tax credits under section 42 of
the Internal Revenue Code and meet the definition of workforce housing; and
new text end

new text begin (ii) the aggregate amount of bonds requested in the application and any previous allocation
of bonds to the project do not exceed the aggregate bond limitation;
new text end

new text begin (3) other residential rental projects that intend to apply for and receive low-income
housing tax credits under section 42 of the Internal Revenue Code;
new text end

new text begin (4) single-family housing programs described in section 474A.061, subdivision 2a,
paragraph (b); and
new text end

new text begin (5) other residential rental projects.
new text end

new text begin If there are two or more applications for residential rental projects from the housing pool
with equal priority and there is insufficient bonding authority to provide allocations for all
residential rental projects in any one allocation period, the available bonding authority shall
be awarded by lot including a partial allocation until all remaining bonding authority is
allocated unless otherwise agreed to by the respective issuers. If a residential rental project
receives some, but less than the requested amount of allocation contained in its application,
and the project applies in the future to the housing pool for additional allocation of bonds,
the project shall be fully funded up to its original application request for bonding authority
before any new project, applying in the same allocation period, that has an equal priority
shall receive bonding authority. If an issuer that receives an allocation under this paragraph
does not issue obligations equal to all or a portion of the allocation received within 120 days
of the allocation or returns the allocation to the commissioner, the amount of the allocation
is canceled and returned for reallocation through the housing pool or to the unified pool
after July 15.
new text end

new text begin (b) Subject to paragraph (a), the commissioner shall otherwise follow the provisions of
section 474A.061.
new text end

new text begin Subd. 5. new text end

new text begin Re-prioritized unified pool allocation. new text end

new text begin (a) Notwithstanding section 474A.091,
subdivision 3, paragraph (f), if there are two or more applications for residential rental
projects from the unified pool and there is insufficient bonding authority to provide
allocations for all residential rental projects in any one allocation period, the available
bonding authority shall be awarded in the following order of priority:
new text end

new text begin (1) residential rental projects that preserve existing federally subsidized housing and the
aggregate amount of bonds requested in the application and any previous allocation of bonds
do not exceed the aggregate bond limitation;
new text end

new text begin (2) residential rental projects that:
new text end

new text begin (i) intend to apply for and receive low-income housing tax credits under section 42 of
the Internal Revenue Code and meet the definition of workforce housing; and
new text end

new text begin (ii) the aggregate amount of bonds requested in the application and any previous allocation
of bonds to that same project do not exceed the aggregate bond limitation;
new text end

new text begin (3) other residential rental projects that intend to apply for and receive low-income
housing tax credits under section 42 of the Internal Revenue Code; and
new text end

new text begin (4) other residential rental projects.
new text end

new text begin If there are two or more applications for residential rental projects from the unified pool
with equal priority and there is insufficient bonding authority to provide allocations for all
residential rental projects in any one allocation period, the available bonding authority shall
be awarded by lot including a partial allocation until all remaining bonding authority is
allocated unless otherwise agreed to by the respective issuers. If a residential rental project
receives some, but less than the requested amount of allocation contained in its application,
and the project applies in the future to the unified pool for additional allocation of bonds,
the project shall be fully funded up to its original application request for bonding authority
before any new residential project, applying in the same allocation period, that has an equal
priority shall receive bonding authority.
new text end

new text begin (b) Notwithstanding section 474A.091, subdivision 3, paragraph (g), the reservation
within the unified pool for small issue bonds is from the first Monday in August through
the last Monday in October.
new text end

new text begin Subd. 6. new text end

new text begin Mortgage bonds. new text end

new text begin Notwithstanding section 474A.091, subdivision 3a, paragraph
(a), bonding authority remaining in the unified pool on October 1 is available for
single-family housing programs only for cities that applied in January and received an
allocation under section 474A.061, subdivision 2a, in the same calendar year. The Minnesota
Housing Finance Agency shall receive an allocation for mortgage bonds pursuant to this
section, minus any amounts for a city or consortium that intends to issue bonds on its own
behalf under paragraph (c).
new text end

new text begin Subd. 7. new text end

new text begin Unified pool allocation plan. new text end

new text begin (a) By January 15 of each year, the commissioner
of the Minnesota Housing Finance Agency shall annually prepare a tax-exempt bond
allocation plan that identifies:
new text end

new text begin (1) the amount of tax-exempt bonds allocated to the Minnesota Housing Finance Agency
during the previous calendar year;
new text end

new text begin (2) whether or not the Minnesota Housing Finance Agency intends to carry forward
such bonds not otherwise allocated in the previous year as qualified residential rental bonds
or qualified mortgage bonds or mortgage credit certificates consistent with the requirements
of Internal Revenue Service Form 8328; and
new text end

new text begin (3) the carryforward balance of any tax-exempt bonds allocated to the Minnesota Housing
Finance Agency including those bonds carried forward as qualified residential rental bonds
and qualified mortgage bonds or mortgage credit certificates.
new text end

new text begin (b) Prior to January 15 of each year, the Minnesota Housing Finance Agency must post
on its official Web site the plan under paragraph (a) and invite public comment until February
1. The Minnesota Housing Finance Agency shall not file the Internal Revenue Service Form
8328 until the public comment period has closed on February 1 unless otherwise required
by federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and expires December 31,
2019.
new text end

Sec. 11.

Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special
Session chapter 1, article 7, section 1, and Laws 2016, chapter 189, article 7, section 42, is
amended to read:


Sec. 13. EFFECTIVE DATE.

Sections 1 to 3 and 6 to 11 are effective July 1, deleted text begin2017deleted text endnew text begin 2036new text end. Sections 4, 5, and 12 are
effective July 1, 2014.

Sec. 12. new text beginAGENCY ACTIVITY AND EXPENDITURE REPORTS.
new text end

new text begin (a) The commissioners of employment and economic development, housing finance,
labor and industry, and commerce, as well as the Public Utilities Commission, must each
submit a report, as described in paragraph (b), to the chairs and ranking minority members
of the house of representatives and senate committees and divisions with jurisdiction over
their budget appropriations by October 15, 2018.
new text end

new text begin (b) The reports must include:
new text end

new text begin (1) the number of employees in each operational division and descriptions of the work
of each employee;
new text end

new text begin (2) a description of the responsibilities that fall under each operational division;
new text end

new text begin (3) a detailed list of the source of all revenue, including any fees, taxes, or other revenues
collected, as well as details of base budgets, including all prior appropriation riders;
new text end

new text begin (4) how much of each budgetary division appropriation passes through as grants, as well
as the costs related to each grant program;
new text end

new text begin (5) a detailed description of the costs related to each budgetary division, as well as the
statutory authority under which those costs are allocated; and
new text end

new text begin (6) the statutory authority for all expenditures.
new text end

Sec. 13. new text beginHOUSING FINANCE AGENCY ADMINISTRATIVE COSTS.
new text end

new text begin The cost of administering programs operated by the Housing Finance Agency that are
funded by the general fund or other resources, including bonds and federal funding, must
not be higher than the amount expended for direct or indirect administrative costs in fiscal
year 2017. The Housing Finance Agency must not have more full-time equivalent positions
than the number of full-time equivalent positions at the Housing Finance Agency on June
30, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective from July 1, 2017, to July 1, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: H2209-1

3.8852 PLANNING STRATEGY FOR SUSTAINABLE ENERGY FUTURE.

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

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

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

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

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

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

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

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

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

116C.779 FUNDING FOR RENEWABLE DEVELOPMENT.

Subd. 3.

Initiative for Renewable Energy and the Environment.

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

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

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

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

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

(4) energy storage technologies; and

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

(c) For the purposes of this subdivision:

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

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

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

116J.549 WORKFORCE HOUSING DEVELOPMENT PROGRAM.

Subdivision 1.

Establishment.

The commissioner of employment and economic development shall establish a workforce housing development program to award grants to eligible project areas to be used for qualified expenditures.

Subd. 2.

Definitions.

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

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

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

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

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

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

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

Subd. 3.

Application.

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

Subd. 4.

Program requirements.

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

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

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

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

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

Subd. 5.

Allocation.

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

Subd. 6.

Report.

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

174.187 MADE IN MINNESOTA SOLAR INSTALLATIONS.

Subdivision 1.

Definitions.

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

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

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

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

(3) that are manufactured in Minnesota:

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

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

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

Subd. 2.

Made in Minnesota solar energy system requirement.

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

Subd. 3.

Application.

Subdivision 2 does not apply if:

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

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

216B.2424 BIOMASS POWER MANDATE.

Subdivision 1.

Farm-grown closed-loop biomass.

(a) For the purposes of this section, "farm-grown closed-loop biomass" means herbaceous crops, trees, agricultural waste, and aquatic plant matter that is used to generate electricity, but does not include mixed municipal solid waste, as defined in section 115A.03, and that:

(1) is intentionally cultivated, harvested, and prepared for use, in whole or in part, as a fuel for the generation of electricity;

(2) when combusted, releases an amount of carbon dioxide that is less than or approximately equal to the carbon dioxide absorbed by the biomass fuel during its growing cycle; and

(3) is fired in a new or substantially retrofitted electric generating facility that is:

(i) located within 400 miles of the site of the biomass production; and

(ii) designed to use biomass to meet at least 75 percent of its fuel requirements.

(b) The legislature finds that the negative environmental impacts within 400 miles of the facility resulting from transporting and combusting the biomass are offset in that region by the environmental benefits to air, soil, and water of the biomass production.

(c) Among the biomass fuel sources that meet the requirements of paragraph (a), clauses (1) and (2), are poplar, aspen, willow, switch grass, sorghum, alfalfa, cultivated prairie grass, and sustainably managed woody biomass.

(d) For the purpose of this section, "sustainably managed woody biomass" means:

(1) brush, trees, and other biomass harvested from within designated utility, railroad, and road rights-of-way;

(2) upland and lowland brush harvested from lands incorporated into brushland habitat management activities of the Minnesota Department of Natural Resources;

(3) upland and lowland brush harvested from lands managed in accordance with Minnesota Department of Natural Resources "Best Management Practices for Managing Brushlands";

(4) logging slash or waste wood that is created by harvest, by precommercial timber stand improvement to meet silvicultural objectives, or by fire, disease, or insect control treatments, and that is managed in compliance with the Minnesota Forest Resources Council's "Sustaining Minnesota Forest Resources: Voluntary Site-Level Forest Management Guidelines for Landowners, Loggers and Resource Managers" as modified by the requirement of this subdivision; and

(5) trees or parts of trees that do not meet the utilization standards for pulpwood, posts, bolts, or sawtimber as described in the Minnesota Department of Natural Resources Division of Forestry Timber Sales Manual, 1998, as amended as of May 1, 2005, and the Minnesota Department of Natural Resources Timber Scaling Manual, 1981, as amended as of May 1, 2005, except as provided in paragraph (a), clause (1), and this paragraph, clauses (1) to (3).

Subd. 1a.

Municipal waste-to-energy project.

(a) This subdivision applies only to a biomass project owned or controlled, directly or indirectly, by two municipal utilities as described in subdivision 5a, paragraph (b).

(b) Woody biomass from state-owned land must be harvested in compliance with an adopted management plan and a program of ecologically based third-party certification.

(c) The project must prepare a fuel plan on an annual basis after commercial operation of the project as described in the power contract between the project and the public utility, and must also prepare annually certificates reflecting the types of fuel used in the preceding year by the project, as described in the power contract. The fuel plans and certificates shall also be filed with the Minnesota Department of Natural Resources and the Minnesota Department of Commerce within 30 days after being provided to the public utility, as provided by the power contract. Any person who believes the fuel plans, as amended, and certificates show that the project does not or will not comply with the fuel requirements of this subdivision may file a petition with the commission seeking such a determination.

(d) The wood procurement process must utilize third-party audit certification systems to verify that applicable best management practices were utilized in the procurement of the sustainably managed biomass. If there is a failure to so verify in any two consecutive years during the original contract term, the farm-grown closed-loop biomass requirements of subdivision 2 must be increased to 50 percent for the remaining contract term period; however, if in two consecutive subsequent years after the increase has been implemented, it is verified that the conditions in this subdivision have been met, then for the remaining original contract term the closed-loop biomass mandate reverts to 25 percent. If there is a subsequent failure to verify in a year after the first failure and implementation of the 50 percent requirement, then the closed-loop percentage shall remain at 50 percent for each remaining year of the contract term.

(e) In the closed-loop plantation, no transgenic plants may be used.

(f) No wood may be harvested from any lands identified by the final or preliminary Minnesota County Biological Survey as having statewide significance as native plant communities, large populations or concentrations of rare species, or critical animal habitat.

(g) A wood procurement plan must be prepared every five years and public meetings must be held and written comments taken on the plan and documentation must be provided on why or why not the public inputs were used.

(h) Guidelines or best management practices for sustainably managed woody biomass must be adopted by:

(1) the Minnesota Department of Natural Resources for managing and maintaining brushland and open land habitat on public and private lands, including, but not limited to, provisions of sections 84.941, 84.942, and 97A.125; and

(2) the Minnesota Forest Resources Council for logging slash, using the most recent available scientific information regarding the removal of woody biomass from forest lands, to sustain the management of forest resources as defined by section 89.001, subdivisions 8 and 9, with particular attention to soil productivity, biological diversity as defined by section 89A.01, subdivision 3, and wildlife habitat.

These guidelines must be completed by July 1, 2007, and the process of developing them must incorporate public notification and comment.

(i) The University of Minnesota Initiative for Renewable Energy and the Environment is encouraged to solicit and fund high-quality research projects to develop and consolidate scientific information regarding the removal of woody biomass from forest and brush lands, with particular attention to the environmental impacts on soil productivity, biological diversity, and sequestration of carbon. The results of this research shall be made available to the public.

(j) The two utilities owning or controlling, directly or indirectly, the biomass project described in subdivision 5a, paragraph (b), shall fund or obtain funding from nonstate sources of up to $150,000 by April 1, 2006, to complete the guidelines or best management practices described in paragraph (h). The expenditures to be funded under this paragraph do not include any of the expenditures to be funded under paragraph (i).

Subd. 2.

Interim exemption.

(a) A biomass project proposing to use, as its primary fuel over the life of the project, short-rotation woody crops, may use as an interim fuel agricultural waste and other biomass which is not farm-grown closed-loop biomass for up to six years after the project's electric generating facility becomes operational; provided, the project developer demonstrates the project will use the designated short-rotation woody crops as its primary fuel after the interim period and provided the location of the interim fuel production meets the requirements of subdivision 1, paragraph (a), clause (3).

(b) A biomass project proposing to use, as its primary fuel over the life of the project, short-rotation woody crops, may use as an interim fuel agricultural waste and other biomass which is not farm-grown closed-loop biomass for up to three years after the project's electric generating facility becomes operational; provided, the project developer demonstrates the project will use the designated short-rotation woody crops as its primary fuel after the interim period.

(c) A biomass project that uses an interim fuel under the terms of paragraph (b) may, in addition, use an interim fuel under the terms of paragraph (a) for six years less the number of years that an interim fuel was used under paragraph (b).

(d) A project developer proposing to use an exempt interim fuel under paragraphs (a) and (b) must demonstrate to the public utility that the project will have an adequate supply of short-rotation woody crops which meet the requirements of subdivision 1 to fuel the project after the interim period.

(e) If a biomass project using an interim fuel under this subdivision is or becomes owned or controlled, directly or indirectly, by two municipal utilities as described in subdivision 5a, paragraph (b), the project is deemed to comply with the requirement under this subdivision to use as its primary fuel farm-grown closed-loop biomass if farm-grown closed-loop biomass comprises no less than 25 percent of the fuel used over the life of the project. For purposes of this subdivision, "life of the project" means 20 years from the date the project becomes operational or the term of the applicable power purchase agreement between the project owner and the public utility, whichever is longer.

Subd. 3.

Fuel exemption.

Over the duration of the contract of a biomass power facility selected to satisfy the mandate in subdivision 5, fuel sources that are not biomass may be used to satisfy up to 25 percent of the fuel requirements of a biomass power facility selected to satisfy the biomass power mandate in subdivision 5, except that agricultural crop wastes, such as oat hulls, may be used to satisfy more than 25 percent of the fuel requirements of a power facility selected to satisfy the biomass power mandate in subdivision 5 if the wastes are co-fired with the fuel authorized for the facility. A biomass power facility selected to satisfy the mandate in subdivision 5 also may use fuel sources that are not biomass during any period when biomass fuel sources are not reasonably available to the facility due to any circumstances constituting an act of God. Fuel sources that are not biomass used during such a period of biomass fuel source unavailability shall not be counted toward the 25 percent exemption provided in this subdivision. For purposes of this subdivision, "act of God" means any natural disaster or other natural phenomenon of an exceptional, inevitable, or irresistible character, including, but not limited to, flood, fire, drought, earthquake, and crop failure resulting from climatic conditions, infestation, or disease.

Subd. 4.

Financial viability.

A biomass project developer must demonstrate to the public utility evidence of sufficient financial viability necessary for the construction and operation of the biomass project.

Subd. 5.

Mandate.

(a) A public utility, as defined in section 216B.02, subdivision 4, that operates a nuclear-powered electric generating plant within this state must construct and operate, purchase, or contract to construct and operate (1) by December 31, 1998, 50 megawatts of electric energy installed capacity generated by farm-grown closed-loop biomass scheduled to be operational by December 31, 2001; and (2) by December 31, 1998, an additional 75 megawatts of installed capacity so generated scheduled to be operational by December 31, 2002.

(b) Of the 125 megawatts of biomass electricity installed capacity required under this subdivision, no more than 55 megawatts of this capacity may be provided by a facility that uses poultry litter as its primary fuel source and any such facility:

(1) need not use biomass that complies with the definition in subdivision 1;

(2) must enter into a contract with the public utility for such capacity, that has an average purchase price per megawatt hour over the life of the contract that is equal to or less than the average purchase price per megawatt hour over the life of the contract in contracts approved by the Public Utilities Commission before April 1, 2000, to satisfy the mandate of this section, and file that contract with the Public Utilities Commission prior to September 1, 2000; and

(3) must schedule such capacity to be operational by December 31, 2002.

(c) Of the total 125 megawatts of biomass electric energy installed capacity required under this section, no more than 75 megawatts may be provided by a single project.

(d) Of the 75 megawatts of biomass electric energy installed capacity required under paragraph (a), clause (2), no more than 33 megawatts of this capacity may be provided by a St. Paul district heating and cooling system cogeneration facility utilizing waste wood as a primary fuel source. The St. Paul district heating and cooling system cogeneration facility need not use biomass that complies with the definition in subdivision 1.

(e) The public utility must accept and consider on an equal basis with other biomass proposals:

(1) a proposal to satisfy the requirements of this section that includes a project that exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or (2), and that proposes to sell the excess capacity to the public utility or to other purchasers; and

(2) a proposal for a new facility to satisfy more than ten but not more than 20 megawatts of the electrical generation requirements by a small business-sponsored independent power producer facility to be located within the northern quarter of the state, which means the area located north of Constitutional Route No. 8 as described in section 161.114, subdivision 2, and that utilizes biomass residue wood, sawdust, bark, chipped wood, or brush to generate electricity. A facility described in this clause is not required to utilize biomass complying with the definition in subdivision 1, but must be under construction by December 31, 2005.

(f) If a public utility files a contract with the commission for electric energy installed capacity that uses poultry litter as its primary fuel source, the commission must do a preliminary review of the contract to determine if it meets the purchase price criteria provided in paragraph (b), clause (2). The commission shall perform its review and advise the parties of its determination within 30 days of filing of such a contract by a public utility. A public utility may submit by September 1, 2000, a revised contract to address the commission's preliminary determination.

(g) The commission shall finally approve, modify, or disapprove no later than July 1, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet the mandate set forth in this subdivision.

(h) If a public utility subject to this section exercises an option to increase the generating capacity of a project in a contract approved by the commission prior to April 25, 2000, to satisfy the mandate in this subdivision, the public utility must notify the commission by September 1, 2000, that it has exercised the option and include in the notice the amount of additional megawatts to be generated under the option exercised. Any review by the commission of the project after exercise of such an option shall be based on the same criteria used to review the existing contract.

(i) A facility specified in this subdivision qualifies for exemption from property taxation under section 272.02, subdivision 45.

Subd. 5a.

Reduction of biomass mandate.

(a) Notwithstanding subdivision 5, the biomass electric energy mandate must be reduced from 125 megawatts to 110 megawatts.

(b) The Public Utilities Commission shall approve a request pending before the commission as of May 15, 2003, for amendments to and assignment of a power purchase agreement with the owner of a facility that uses short-rotation, woody crops as its primary fuel previously approved to satisfy a portion of the biomass mandate if the owner of the project agrees to reduce the size of its project from 50 megawatts to 35 megawatts, while maintaining an average price for energy in nominal dollars measured over the term of the power purchase agreement at or below $104 per megawatt-hour, exclusive of any price adjustments that may take effect subsequent to commission approval of the power purchase agreement, as amended. The commission shall also approve, as necessary, any subsequent assignment or sale of the power purchase agreement or ownership of the project to an entity owned or controlled, directly or indirectly, by two municipal utilities located north of Constitutional Route No. 8, as described in section 161.114, which currently own electric and steam generation facilities using coal as a fuel and which propose to retrofit their existing municipal electrical generating facilities to utilize biomass fuels in order to perform the power purchase agreement.

(c) If the power purchase agreement described in paragraph (b) is assigned to an entity that is, or becomes, owned or controlled, directly or indirectly, by two municipal entities as described in paragraph (b), and the power purchase agreement meets the price requirements of paragraph (b), the commission shall approve any amendments to the power purchase agreement necessary to reflect the changes in project location and ownership and any other amendments made necessary by those changes. The commission shall also specifically find that:

(1) the power purchase agreement complies with and fully satisfies the provisions of this section to the full extent of its 35-megawatt capacity;

(2) all costs incurred by the public utility and all amounts to be paid by the public utility to the project owner under the terms of the power purchase agreement are fully recoverable pursuant to section 216B.1645;

(3) subject to prudency review by the commission, the public utility may recover from its Minnesota retail customers the amounts that may be incurred and paid by the public utility during the full term of the power purchase agreement; and

(4) if the purchase power agreement meets the requirements of this subdivision, it is reasonable and in the public interest.

(d) The commission shall specifically approve recovery by the public utility of any and all Minnesota jurisdictional costs incurred by the public utility to improve, construct, install, or upgrade transmission, distribution, or other electrical facilities owned by the public utility or other persons in order to permit interconnection of the retrofitted biomass-fueled generating facilities or to obtain transmission service for the energy provided by the facilities to the public utility pursuant to section 216B.1645, and shall disapprove any provision in the power purchase agreement that requires the developer or owner of the project to pay the jurisdictional costs or that permit the public utility to terminate the power purchase agreement as a result of the existence of those costs or the public utility's obligation to pay any or all of those costs.

(e) Upon request by the project owner, the public utility shall agree to amend the power purchase agreement described in paragraph (b) and approved by the commission as required by paragraph (c). The amendment must be negotiated and executed within 45 days of May 14, 2013, and must apply to prices paid after January 1, 2014. The average price for energy in nominal dollars measured over the term of the power purchase agreement must not exceed $109.20 per megawatt hour. The public utility shall request approval of the amendment by the commission within 30 days of execution of the amended power purchase agreement. The amendment is not effective until approval by the commission. The commission shall act on the amendment within 90 days of submission of the request by the public utility. Upon approval of the amended power purchase agreement, the commission shall allow the public utility to recover the costs of the amended power purchase agreement, as provided in section 216B.1645.

(f) With respect to the power purchase agreement described in paragraph (b), and amended and approved by the commission pursuant to paragraphs (c) and (e), upon request by the project owner, the public utility shall agree to amend the power purchase agreement to include a fuel cost adjustment clause which requires the public utility to reimburse the project owner monthly for all costs incurred by the project owner during the applicable month to procure and transport all fuel used to produce energy for delivery to the public utility pursuant to the power purchase agreement to the extent such costs exceeded $3.40 per million metric British thermal unit (MMBTU), in addition to the price to be paid for the energy produced and delivered by the project owner. Reimbursable costs include but are not limited to: (1) all costs incurred to load fuel at its source; (2) costs to transport fuel (i) to the biomass-fueled generating facilities or to an intermediate woodyard, storage facility, or handling facility, or (ii) from a facility to the biomass-fueled generating facilities; (3) depreciation of any depreciable loading, woodyard, storage, handling, or transportation equipment whether the vehicle or equipment is located at the fuel source, a woodyard, storage facility, handling facility, or at the generating facilities; and (4) costs to unload fuel at the generating facilities. Beginning with 2014, at the end of each calendar year of the term of the power purchase agreement, the project owner shall calculate the amount by which actual fuel costs for the year exceeded $3.40 per MMBTU, and prior monthly payment for such fuel costs shall be reconciled against actual fuel costs for the applicable calendar year. If such prior monthly fuel payments for the year in the aggregate exceed the amount due based on the annual calculation, the project owner shall credit the public utility for the excess paid. If the annual calculation of fuel costs due exceeds the prior monthly fuel payments for the year in the aggregate, the project owner shall be entitled to be paid for the deficiency with the next invoice to the public utility. The amendment shall be negotiated and executed within 45 days of May 13, 2013, and shall be effective for fuel costs incurred and prices after January 1, 2014. The public utility shall request approval of the amendment by the commission, and the commission shall approve the amendment as reasonable and in the public interest and allow the public utility to recover from its Minnesota retail customers the amounts paid by the public utility to the project owner pursuant to the power purchase agreement during the full term of the power purchase agreement, including the reimbursement of fuel costs pursuant to the power purchase agreement amendment, reimbursable costs as provided in this paragraph, pursuant to section 216B.1645, or otherwise.

(g) With respect to the power purchase agreement described in paragraph (b) and approved by the commission pursuant to paragraphs (c) and (e), the public utility is prohibited from recovering from the project owner any costs which were not actually and reasonably incurred by the utility, notwithstanding any provision in the power purchase agreement to the contrary. In addition, beginning with 2012, the public utility shall pay for all energy delivered by the project owner pursuant to the power purchase agreement at the full price for such energy in the power purchase agreement approved and amended pursuant to paragraph (e), provided that the project owner does not deliver more than 110 percent of the amount scheduled for delivery in any year of the power purchase agreement, and does not deliver, on average over any five consecutive years of the power purchase agreement, an amount greater than 105 percent of the amount scheduled for delivery over the five-year period.

Subd. 6.

Remaining megawatt compliance process.

(a) If there remain megawatts of biomass power generating capacity to fulfill the mandate in subdivision 5 after the commission has taken final action on all contracts filed by September 1, 2000, by a public utility, as amended and assigned, this subdivision governs final compliance with the biomass energy mandate in subdivision 5 subject to the requirements of subdivisions 7 and 8.

(b) To the extent not inconsistent with this subdivision, the provisions of subdivisions 2, 3, 4, and 5 apply to proposals subject to this subdivision.

(c) A public utility must submit proposals to the commission to complete the biomass mandate. The commission shall require a public utility subject to this section to issue a request for competitive proposals for projects for electric generation utilizing biomass as defined in paragraph (f) of this subdivision to provide the remaining megawatts of the mandate. The commission shall set an expedited schedule for submission of proposals to the utility, selection by the utility of proposals or projects, negotiation of contracts, and review by the commission of the contracts or projects submitted by the utility to the commission.

(d) Notwithstanding the provisions of subdivisions 1 to 5 but subject to the provisions of subdivisions 7 and 8, a new or existing facility proposed under this subdivision that is fueled either by biomass or by co-firing biomass with nonbiomass may satisfy the mandate in this section. Such a facility need not use biomass that complies with the definition in subdivision 1 if it uses biomass as defined in paragraph (f) of this subdivision. Generating capacity produced by co-firing of biomass that is operational as of April 25, 2000, does not meet the requirements of the mandate, except that additional co-firing capacity added at an existing facility after April 25, 2000, may be used to satisfy this mandate. Only the number of megawatts of capacity at a facility which co-fires biomass that are directly attributable to the biomass and that become operational after April 25, 2000, count toward meeting the biomass mandate in this section.

(e) Nothing in this subdivision precludes a facility proposed and approved under this subdivision from using fuel sources that are not biomass in compliance with subdivision 3.

(f) Notwithstanding the provisions of subdivision 1, for proposals subject to this subdivision, "biomass" includes farm-grown closed-loop biomass; agricultural wastes, including animal, poultry, and plant wastes; and waste wood, including chipped wood, bark, brush, residue wood, and sawdust.

(g) Nothing in this subdivision affects in any way contracts entered into as of April 25, 2000, to satisfy the mandate in subdivision 5.

(h) Nothing in this subdivision requires a public utility to retrofit its own power plants for the purpose of co-firing biomass fuel, nor is a utility prohibited from retrofitting its own power plants for the purpose of co-firing biomass fuel to meet the requirements of this subdivision.

Subd. 7.

Effect on existing projects.

The commission may not approve a project proposed after April 25, 2000, which would have an adverse impact on the ability of a project approved before April 25, 2000, to obtain an adequate supply of the fuel source designated for the project.

Subd. 8.

Agricultural biomass requirement.

Of the 125 megawatts mandated in subdivision 5, or 110 megawatts mandated in subdivision 5a, at least 75 megawatts of the generating capacity must be generated by facilities that use agricultural biomass as the principal fuel source. For purposes of this subdivision, agricultural biomass includes only farm-grown closed-loop biomass and agricultural waste, including animal, poultry, and plant wastes. For purposes of this subdivision, "principal fuel source" means a fuel source that satisfies at least 75 percent of the fuel requirements of an electric power generating facility. Nothing in this subdivision is intended to expand the fuel source requirements of subdivision 5.

216B.8109 HYDROGEN ENERGY ECONOMY GOAL.

It is a goal of this state that Minnesota move to hydrogen as an increasing source of energy for its electrical power, heating, and transportation needs.

216B.811 DEFINITIONS.

Subdivision 1.

Scope.

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

Subd. 2.

Fuel cell.

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

Subd. 3.

Hydrogen.

"Hydrogen" means hydrogen produced using renewable energy sources.

Subd. 4.

Related technologies.

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

216B.812 FOSTERING USE OF HYDROGEN ENERGY.

Subdivision 1.

State purchase and use of renewable hydrogen technologies.

(a) The Department of Commerce, in coordination with the Department of Administration and the Pollution Control Agency, shall identify opportunities for deploying renewable hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets, and operations in ways that demonstrate their commercial performance and economics.

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

(1) provide needed performance data to the marketplace;

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

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

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

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

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

Subd. 2.

Pilot projects.

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

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

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

(3) demonstrate nonvehicle applications for hydrogen;

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

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

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

(1) advance energy security;

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

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

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

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

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

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

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

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

(10) serve other needs beyond hydrogen development.

Subd. 3.

Establishing multifuel hydrogen fueling stations.

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

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

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

216B.813 MINNESOTA RENEWABLE HYDROGEN INITIATIVE.

Subdivision 1.

Road map.

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

Subd. 2.

Grants.

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

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

216B.815 REGIONAL ENERGY RESEARCH AND EDUCATION PARTNERSHIP.

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

(b) Initiatives undertaken by the partnership may include:

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

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

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

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

216C.29 SUBPOENA POWER.

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

216C.411 DEFINITIONS.

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

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

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

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

(3) that are manufactured in Minnesota:

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

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

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

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

216C.412 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE ACCOUNT.

Subdivision 1.

Account established; account management.

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

Subd. 2.

Payments from public utilities.

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

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

216C.413 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE; QUALIFICATION.

Subdivision 1.

Application.

A manufacturer of solar photovoltaic modules seeking to qualify those modules as eligible to receive the "Made in Minnesota" solar energy production incentive must submit an application to the commissioner of commerce on a form prescribed by the commissioner. The application must contain:

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

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

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

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

Subd. 2.

Certification.

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

Subd. 3.

Revocation of certification.

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

216C.414 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE.

Subdivision 1.

Setting incentive.

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

Subd. 2.

Criteria for determining incentive amount.

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

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

(2) the average insolation rate in Minnesota;

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

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

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

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

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

Subd. 3.

Metering of production.

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

Subd. 4.

Payment due date.

Payments must be made no later than July 1 following the year of production.

Subd. 5.

Renewable energy credits.

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

216C.415 "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE; PAYMENT.

Subdivision 1.

Incentive payment.

Incentive payments may be made under this section only to an owner of grid-connected solar photovoltaic modules with a total nameplate capacity below 40 kilowatts direct current who:

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

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

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

Subd. 2.

Application process.

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

Subd. 3.

Commissioner approval of incentive application.

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

Subd. 4.

Eligibility window; payment duration.

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

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

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

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

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

Subd. 5.

Allocation of payments.

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

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

(c) For purposes of this subdivision:

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

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

Subd. 6.

Limitation.

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

216C.416 SOLAR THERMAL REBATES.

Subdivision 1.

Rebate program created.

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

Subd. 2.

Account; funding.

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

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

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

Subd. 3.

Individual incentives.

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

Subd. 4.

Application process.

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

298.22 IRON RANGE RESOURCES AND REHABILITATION.

Subd. 8.

Spending priority.

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

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.

Subdivision 1.

Appropriation.

$4,000,000 is appropriated from the general fund to the commissioner of Iron Range resources and rehabilitation. $300,000 of this appropriation must be used in the same manner as money appropriated under section 298.17.

Subd. 2.

Purpose of expenditures.

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

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

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

Subd. 3.

Use of money.

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

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

Subd. 4.

Project approval.

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

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

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

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

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

Subd. 5.

Advisory committees.

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

Subd. 6.

Use of repayments and earnings.

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

298.298 LONG-RANGE PLAN.

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

326B.89 CONTRACTOR RECOVERY FUND.

Subd. 14.

Accelerated compensation.

(a) Payments made from the fund to compensate owners and lessees that do not exceed the jurisdiction limits for conciliation court matters as specified in section 491A.01 may be paid on an accelerated basis if all of the following requirements in paragraphs (b) and (c) have been satisfied.

(b) The owner or the lessee has served upon the commissioner a verified application for compensation that complies with the requirements set out in subdivision 6 and the commissioner determines based on review of the application that compensation should be paid from the fund. The commissioner shall calculate the actual and direct out-of-pocket loss in the transaction, minus attorney fees, litigation costs or fees, interest on the loss and on the judgment obtained as a result of the loss, and any satisfaction of the judgment, and make payment to the owner or the lessee up to the conciliation court jurisdiction limits within 45 days after the owner or lessee serves the verified application.

(c) The commissioner may pay compensation to owners or lessees that totals not more than $50,000 per licensee per fiscal year under this accelerated process. The commissioner may prorate the amount of compensation paid to owners or lessees under this subdivision if applications submitted by owners and lessees seek compensation in excess of $50,000 against a licensee. Any unpaid portion of a verified application that has been prorated under this subdivision shall be satisfied in the manner set forth in subdivision 9.

Repealed Minnesota Session Laws: H2209-1

Laws 2005, chapter 112, article 1, section 14

Sec. 14. new text beginMANDATORY FEDERAL IMPLEMENTATION REQUIREMENT.new text end

new text begin The commissioner must implement systems and processes to detect, investigate, and enforce section 268.051, subdivisions 4 and 4a. new text end

Laws 2013, chapter 85, article 6, section 11

Sec. 11. new text beginSOLAR PHOTOVOLTAIC MODULES.new text end

new text begin No solar photovoltaic module may be installed that is financed directly or indirectly, wholly or in part, with money appropriated in this act, unless the solar photovoltaic module is made in Minnesota as defined in Minnesota Statutes, section 16B.323, subdivision 1, paragraph (b). new text end