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HF 2749

Conference Committee Report - 89th Legislature (2015 - 2016) Posted on 06/21/2017 11:01am

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1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 2749
1.2A bill for an act
1.3relating to state government; conforming buyback level for the budget reserve
1.4with the most recent forecast; eliminating obsolete language; providing policy
1.5and finance for the Office of Higher Education, the Minnesota State Colleges
1.6and Universities, and the University of Minnesota, including programs for
1.7student loans, students with disabilities, fetal tissue research, psychiatric drug
1.8trials, and collegiate recovery; providing funding and policy for early childhood
1.9and family, prekindergarten through grade 12, and adult education, including
1.10general education, education excellence, charter schools, special education, early
1.11childhood education, self-sufficiency, lifelong learning, and state agencies;
1.12appropriating money; requiring reports;amending Minnesota Statutes 2014,
1.13sections 120A.22, subdivision 12; 120A.42; 120B.02, by adding a subdivision;
1.14120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a, 2, 3, 4, 5; 120B.15;
1.15120B.31, by adding subdivisions; 120B.35; 120B.36, as amended; 121A.53;
1.16121A.61, subdivision 1; 121A.64; 122A.07, subdivision 2; 122A.09, subdivision
1.1710, by adding a subdivision; 122A.14, subdivision 9; 122A.16; 122A.18,
1.18subdivisions 7c, 8; 122A.21, subdivision 1, by adding a subdivision; 122A.245,
1.19subdivision 8; 122A.31, subdivision 3; 122A.40, subdivision 10; 122A.41, by
1.20adding a subdivision; 122A.4144; 122A.416; 122A.42; 122A.72, subdivision
1.215; 123A.24, subdivision 2; 123B.147, subdivision 3; 123B.49, subdivision
1.224; 123B.571, subdivision 2; 123B.60, subdivision 1; 123B.71, subdivision 8;
1.23123B.79, subdivisions 5, 8, 9; 124D.111, by adding a subdivision; 124D.13,
1.24subdivisions 1, 5, 9; 124D.135, subdivisions 5, 7; 124D.15, subdivisions 1, 3a,
1.2515; 124D.16, subdivisions 3, 5; 124D.165, as amended; 124D.52, subdivisions
1.261, 2; 124D.55; 124D.59, by adding a subdivision; 124D.861, as amended;
1.27124D.896; 125A.091, subdivision 11; 125A.0942, subdivision 4; 126C.10,
1.28subdivisions 2e, 24; 126C.15, subdivision 3; 126C.17, subdivision 9a; 126C.40,
1.29subdivision 5; 126C.63, subdivision 7; 127A.095; 127A.353, subdivision 4;
1.30127A.41, subdivision 2; 127A.45, subdivision 6a; 127A.51; 129C.10, subdivision
1.311; 136A.01, by adding a subdivision; 136A.101, subdivision 10; 245.92; 245.94;
1.32245.945; 245.95, subdivision 1; 245.97, subdivision 5; Minnesota Statutes
1.332015 Supplement, sections 16A.152, subdivision 2; 120B.021, subdivision 4;
1.34120B.125; 120B.30, subdivisions 1, 1a; 120B.301; 120B.31, subdivision 4;
1.35122A.09, subdivision 4; 122A.21, subdivision 2; 122A.30; 122A.40, subdivision
1.368; 122A.41, subdivision 5; 122A.414, subdivisions 1, 2, 2b; 122A.415,
1.37subdivision 3; 122A.60, subdivision 4; 123B.53, subdivision 1; 123B.595,
1.38subdivisions 4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.16, subdivision
1.392; 124D.231, subdivision 2; 124D.73, subdivision 4; 124E.05, subdivisions 4,
1.405, 7; 124E.10, subdivisions 1, 5; 124E.16, subdivision 2; 125A.08; 125A.083;
1.41125A.0942, subdivision 3; 125A.11, subdivision 1; 125A.21, subdivision 3;
1.42125A.63, subdivision 4; 125A.76, subdivision 2c; 125A.79, subdivision 1;
1.43126C.10, subdivisions 1, 13a; 126C.15, subdivisions 1, 2; 126C.48, subdivision
2.18; 127A.05, subdivision 6; 127A.47, subdivision 7; 136A.121, subdivision
2.27a; 136A.125, subdivisions 2, 4; 136A.1791, subdivisions 4, 5, 6; 136A.87;
2.3136F.302, subdivision 1; Laws 2010, chapter 396, section 7; Laws 2011, First
2.4Special Session chapter 11, article 4, section 8; Laws 2012, chapter 263, section
2.51, as amended; Laws 2013, chapter 116, article 7, section 19, as amended; Laws
2.62015, chapter 69, article 1, sections 3, subdivisions 19, 28; 5, subdivision 2;
2.7article 3, sections 20, subdivision 15; 24, subdivision 1; Laws 2015, First Special
2.8Session chapter 3, article 1, section 27, subdivisions 2, 4, 5, 6, 7, 9; article 2,
2.9section 70, subdivisions 2, 3, 4, 5, 6, 7, 11, 12; article 3, section 15, subdivision
2.103; article 4, sections 4; 9, subdivision 2; article 5, section 30, subdivisions 2, 3, 5;
2.11article 6, section 13, subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3,
2.124; article 9, section 8, subdivisions 5, 6, 7, 9; article 10, section 3, subdivision 2;
2.13article 11, section 3, subdivisions 2, 3; article 12, section 4; proposing coding
2.14for new law in Minnesota Statutes, chapters 119A; 120B; 121A; 122A; 124D;
2.15125B; 127A; 129C; 136A; 136F; 137; 181; repealing Minnesota Statutes
2.162014, sections 120B.299, subdivision 5; 122A.40, subdivision 11; 122A.41,
2.17subdivision 14; 122A.413, subdivision 3; 122A.74; 123B.60, subdivision 2;
2.18123B.79, subdivisions 2, 6; Minnesota Statutes 2015 Supplement, section
2.19122A.413, subdivisions 1, 2; Minnesota Rules, part 3535.0110, subparts 6, 7, 8.
2.20May 22, 2016
2.21The Honorable Kurt L. Daudt
2.22Speaker of the House of Representatives
2.23The Honorable Sandra L. Pappas
2.24President of the Senate
2.25We, the undersigned conferees for H. F. No. 2749 report that we have agreed upon
2.26the items in dispute and recommend as follows:
2.27That the Senate recede from its amendments and that H. F. No. 2749 be further
2.28amended as follows:
2.29Delete everything after the enacting clause and insert:

"2.30ARTICLE 1
2.31HIGHER EDUCATION

2.32
Section 1. APPROPRIATIONS.
2.33The sums shown in the columns marked "Appropriations" are added to the
2.34appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the
2.35agencies and for the purposes specified in this article. The appropriations are from the
2.36general fund, or another named fund, and are available for the fiscal years indicated
2.37for each purpose. The figures "2016" and "2017" used in this article mean that the
2.38appropriations listed under them are available for the fiscal year ending June 30, 2016, or
2.39June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
2.40year 2017. "The biennium" is fiscal years 2016 and 2017.
2.41
APPROPRIATIONS
2.42
Available for the Year
2.43
Ending June 30
2.44
2016
2017

3.1
3.2
Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION
3.3
Subdivision 1.Total Appropriations
$
-0-
$
3,210,000
3.4The amounts that may be spent for each
3.5purpose are specified in the following
3.6subdivisions.
3.7
3.8
Subd. 2.Equity in Postsecondary Education
Grants
-0-
500,000
3.9For equity in postsecondary attainment
3.10grants under section 31. This appropriation
3.11is available until June 30, 2020. Of this
3.12appropriation, $25,000 may be used for
3.13administration expenses to administer
3.14the grant program. This is a onetime
3.15appropriation.
3.16
Subd. 3.State Grant
-0-
2,000,000
3.17For the state grant program under Minnesota
3.18Statutes, section 136A.121. This is a onetime
3.19appropriation.
3.20
3.21
Subd. 4.Addiction Medicine Graduate
Fellowship Program
-0-
210,000
3.22For establishing a grant program used to
3.23support up to four physicians who are enrolled
3.24each year in an addiction medicine fellowship
3.25program. A grant recipient must be enrolled
3.26in a program that trains fellows in diagnostic
3.27interviewing, motivational interviewing,
3.28addiction counseling, recognition and care
3.29of common acute withdrawal syndromes
3.30and complications, pharmacotherapies
3.31of addictive disorders, epidemiology and
3.32pathophysiology of addiction, addictive
3.33disorders in special populations, secondary
3.34interventions, use of screening and diagnostic
3.35instruments, inpatient care, and working
4.1within a multidisciplinary team, and prepares
4.2doctors to practice addiction medicine in
4.3rural and underserved areas of the state. The
4.4base for this program is $210,000 in fiscal
4.5year 2018 and $0 in fiscal year 2019.
4.6
4.7
Subd. 5.Student and Employer Connection
Information System
-0-
500,000
4.8For a grant to the Saint Paul Foundation
4.9for the creation of a web-based job and
4.10intern-seeking software tool that blind
4.11matches the needs of employers located
4.12in Minnesota with the individual profiles
4.13of high school seniors and postsecondary
4.14students attending Minnesota high schools
4.15and postsecondary institutions. No more
4.16than three percent of this appropriation may
4.17be used for administrative expenses of the
4.18foundation. The foundation must report by
4.19January 15, 2017, on activities under this
4.20subdivision to the chairs and ranking minority
4.21members of the legislative committees with
4.22jurisdiction over higher education finance.
4.23The base for this appropriation is $405,000
4.24in fiscal year 2018.

4.25
4.26
4.27
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
4.28
Subdivision 1.Total Appropriations
$
-0-
$
790,000
4.29The amounts that may be spent for each
4.30purpose are specified in the following
4.31subdivisions.
4.32
4.33
Subd. 2. Operating Support and Protecting
Affordability
-0-
570,000
4.34
Subd. 3.MnSCU Open Textbooks
-0-
100,000
5.1(a) For programs on system campuses
5.2that promote adoption of open textbooks.
5.3Programs must focus on the review, creation,
5.4and promotion of new or existing open
5.5textbooks and on saving money for students
5.6while meeting the academic needs of faculty.
5.7This is a onetime appropriation.
5.8(b) By January 15, 2017, the board shall
5.9report to the chairs and ranking minority
5.10members of the legislative committees with
5.11jurisdiction over higher education regarding
5.12the progress of the pilot programs. The
5.13report shall include a summary of each pilot
5.14program and the total savings expected for
5.15students as a result of the programs.
5.16
Subd. 4.MnSCU Open Textbook Library
-0-
100,000
5.17To expand and promote the open textbook
5.18library to faculty across the state. This is a
5.19onetime appropriation.
5.20
Subd. 5.Cook County Higher Education Board
-0-
20,000
5.21For transfer to the Cook County Higher
5.22Education Board to provide educational
5.23programming and academic support services
5.24to remote regions in northeastern Minnesota.
5.25This appropriation is in addition to other
5.26funds previously appropriated for transfer to
5.27the board.

5.28
5.29
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
5.30
Subdivision 1.Total Appropriation
$
-0-
$
900,000
5.31The amounts that may be spent for each
5.32purpose are specified in the following
5.33subdivisions.
6.1
Subd. 2.Health Training Restoration
800,000
6.2This appropriation must be used to support
6.3all of the following:
6.4(1) faculty physicians who teach at eight
6.5residency program sites, including medical
6.6resident and student training programs in the
6.7Department of Family Medicine;
6.8(2) the Mobile Dental Clinic; and
6.9(3) expansion of geriatric education and
6.10family programs.
6.11
6.12
Subd. 3.Rochester Campus, Collegiate
Recovery Program
-0-
100,000
6.13(a) To design and implement a collegiate
6.14recovery program at its Rochester campus.
6.15This is a onetime appropriation and is
6.16available until June 30, 2019.
6.17(b) The purpose of the collegiate recovery
6.18program is to provide structured support
6.19for students in recovery from alcohol,
6.20chemical, or other addictive behaviors.
6.21Program activities may include, but are not
6.22limited to, specialized professional support
6.23through academic, career, and financial
6.24advising; establishment of on-campus
6.25or residential peer support communities;
6.26and opportunities for personal growth
6.27through leadership development and other
6.28community engagement activities.
6.29(c) No later than January 15, 2020, the
6.30Board of Regents must submit a report to
6.31the chairs and ranking minority members of
6.32the legislative committees with jurisdiction
6.33over higher education finance and policy on
6.34campus recovery program outcomes. Based
7.1on available data, the report must describe,
7.2in summary form, the number of students
7.3participating in the program and the success
7.4rate of participants, including retention and
7.5graduation rates, and long-term recovery and
7.6relapse rates.

7.7
7.8
7.9
Sec. 5. OFFICE OF OMBUDSMAN
FOR MENTAL HEALTH AND
DEVELOPMENTAL DISABILITIES
$
-0-
$
100,000
7.10For the duties of the office related to clinical
7.11drug trials at the Department of Psychiatry at
7.12the University of Minnesota.

7.13    Sec. 6. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE
7.14COSTS.
7.15The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision
7.1618, paragraph (c), for fiscal year 2017 for information technology and administrative costs
7.17is available on the effective date of this section and until June 30, 2017.
7.18EFFECTIVE DATE.This section is effective the day following final enactment.

7.19    Sec. 7. [136A.0412] ACCEPTANCE OF PRIVATE FUNDS; APPROPRIATION.
7.20The commissioner may accept donations, grants, bequests, and other gifts of money
7.21to carry out the purposes of section 136A.01. Donations, nonfederal grants, bequests, or
7.22other gifts of money accepted by the commissioner must be deposited in an account in
7.23the special revenue fund and is appropriated to the commissioner for the purpose for
7.24which it was given.

7.25    Sec. 8. Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:
7.26    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means
7.27the amount of a family's contribution to a student's cost of attendance, as determined by a
7.28federal need analysis. For dependent students, the assigned family responsibility is 96
7.2994 percent of the parental contribution. For independent students with dependents other
7.30than a spouse, the assigned family responsibility is 86 percent of the student contribution.
7.31For independent students without dependents other than a spouse, the assigned family
7.32responsibility is 50 percent of the student contribution.

8.1    Sec. 9. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:
8.2    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress"
8.3means satisfactory academic progress as defined under Code of Federal Regulations, title
8.434, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual
8.5disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled
8.6in an approved comprehensive transition and postsecondary program under that section
8.7is subject to the institution's published satisfactory academic process standards for that
8.8program as approved by the Office of Higher Education.

8.9    Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a,
8.10is amended to read:
8.11    Subd. 7a. Surplus appropriation. If the amount appropriated is determined by the
8.12office to be more than sufficient to fund projected grant demand in the second year of the
8.13biennium, the office may increase the living and miscellaneous expense allowance or the
8.14tuition and fee maximums in the second year of the biennium by up to an amount that
8.15retains sufficient appropriations to fund the projected grant demand. The adjustment may
8.16be made one or more times. In making the determination that there are more than sufficient
8.17funds, the office shall balance the need for sufficient resources to meet the projected
8.18demand for grants with the goal of fully allocating the appropriation for state grants. An
8.19increase in the living and miscellaneous expense allowance under this subdivision does
8.20not carry forward into a subsequent biennium.

8.21    Sec. 11. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2,
8.22is amended to read:
8.23    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
8.24the applicant:
8.25    (1) is a resident of the state of Minnesota or the applicant's spouse is a resident
8.26of the state of Minnesota;
8.27    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
8.28disabled as defined in section 125A.02, and who is receiving or will receive care on a
8.29regular basis from a licensed or legal, nonlicensed caregiver;
8.30    (3) is income eligible as determined by the office's policies and rules, but is not a
8.31recipient of assistance from the Minnesota family investment program;
8.32    (4) either has not earned a baccalaureate degree and has been enrolled full time less
8.33than eight semesters or the equivalent, or has earned a baccalaureate degree and has been
9.1enrolled full time less than eight semesters or the equivalent in a graduate or professional
9.2degree program;
9.3    (5) is pursuing a nonsectarian program or course of study that applies to an
9.4undergraduate, graduate, or professional degree, diploma, or certificate;
9.5    (6) is enrolled in at least half time six credits in an undergraduate program or one
9.6credit in a graduate or professional program in an eligible institution; and
9.7    (7) is in good academic standing and making satisfactory academic progress.
9.8    (b) A student who withdraws from enrollment for active military service after
9.9December 31, 2002, because the student was ordered to active military service as defined
9.10in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a
9.11medical professional, that substantially limits the student's ability to complete the term
9.12is entitled to an additional semester or the equivalent of grant eligibility and will be
9.13considered to be in continuing enrollment status upon return.

9.14    Sec. 12. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4,
9.15is amended to read:
9.16    Subd. 4. Amount and length of grants. (a) The amount of a child care grant
9.17must be based on:
9.18    (1) the income of the applicant and the applicant's spouse;
9.19    (2) the number in the applicant's family, as defined by the office; and
9.20    (3) the number of eligible children in the applicant's family.
9.21    (b) The maximum award to the applicant shall be $2,800 for each eligible child per
9.22academic year, except that the campus financial aid officer may apply to the office for
9.23approval to increase grants by up to ten percent to compensate for higher market charges
9.24for infant care in a community. The office shall develop policies to determine community
9.25market costs and review institutional requests for compensatory grant increases to ensure
9.26need and equal treatment. The office shall prepare a chart to show the amount of a grant
9.27that will be awarded per child based on the factors in this subdivision. The chart shall
9.28include a range of income and family size.
9.29(c) Applicants with family incomes at or below a percentage of the federal poverty
9.30level, as determined by the commissioner, will qualify for the maximum award. The
9.31commissioner shall attempt to set the percentage at a level estimated to fully expend the
9.32available appropriation for child care grants. Applicants with family incomes exceeding
9.33that threshold will receive the maximum award minus ten percent of their income
9.34exceeding that threshold. If the result is less than zero, the grant is zero.
10.1(d) The academic year award amount must be disbursed by academic term using the
10.2following formula:
10.3(1) the academic year amount described in paragraph (b);
10.4(2) divided by the number of terms in the academic year;
10.5(3) divided by 15 for undergraduate students and six for graduate and professional
10.6students; and
10.7(4) multiplied by the number of credits for which the student is enrolled that
10.8academic term, up to 15 credits for undergraduate students and six for graduate and
10.9professional students.
10.10(e) Payments shall be made each academic term to the student or to the child care
10.11provider, as determined by the institution. Institutions may make payments more than
10.12once within the academic term.

10.13    Sec. 13. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4,
10.14is amended to read:
10.15    Subd. 4. Application for loan forgiveness. Each applicant for loan forgiveness,
10.16according to rules adopted by the commissioner, shall:
10.17(1) apply for teacher shortage loan forgiveness and promptly submit any additional
10.18information required by the commissioner; and
10.19(2) annually reapply for up to five consecutive school years and submit information
10.20the commissioner requires to determine the applicant's continued eligibility for loan
10.21forgiveness; and
10.22(3) (2) submit to the commissioner a completed affidavit, prescribed by the
10.23commissioner, affirming the teacher is teaching in: (i) a licensure field and in identified by
10.24the commissioner as experiencing a teacher shortage; or (ii) an economic development
10.25region identified by the commissioner as experiencing a teacher shortage.

10.26    Sec. 14. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5,
10.27is amended to read:
10.28    Subd. 5. Amount of loan forgiveness. (a) To the extent funding is available, the
10.29annual amount of teacher shortage loan forgiveness for an approved applicant shall not
10.30exceed $1,000 or the cumulative balance of the applicant's qualified educational loans,
10.31including principal and interest, whichever amount is less.
10.32(b) Recipients must secure their own qualified educational loans. Teachers who
10.33graduate from an approved teacher preparation program or teachers who add a licensure
11.1field, consistent with the teacher shortage requirements of this section, are eligible to
11.2apply for the loan forgiveness program.
11.3(c) No teacher shall receive more than five annual awards.

11.4    Sec. 15. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6,
11.5is amended to read:
11.6    Subd. 6. Disbursement. (a) The commissioner must make annual disbursements
11.7directly to the participant of the amount for which a participant is eligible, for each year
11.8that a participant is eligible.
11.9(b) Within 60 days of receipt of a the disbursement date, the participant must provide
11.10the commissioner with verification that the full amount of loan repayment disbursement
11.11has been applied toward the designated loans. A participant that previously received
11.12funds under this section but has not provided the commissioner with such verification
11.13is not eligible to receive additional funds.

11.14    Sec. 16. [136A.1792] PROMOTION OF FEDERAL PUBLIC SERVICE LOAN
11.15FORGIVENESS PROGRAMS.
11.16    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
11.17have the meanings given.
11.18(b) "Employer" means an organization, agency, or entity that is a public service
11.19organization under Code of Federal Regulations, title 34, part 685, section 219, provided
11.20that the following are not employers:
11.21(1) a federal or tribal government organization, agency, or entity; and
11.22(2) a tribal college or university.
11.23(c) "Employment certification form" means the form used by the United States
11.24Department of Education to certify an individual's employment at a public service
11.25organization for the purposes of the federal public service loan forgiveness program.
11.26(d) "Federal loan forgiveness program" means a loan forgiveness program offered
11.27under Code of Federal Regulations, title 34, part 685.
11.28(e) "Public service loan forgiveness program" means the loan forgiveness program
11.29under Code of Federal Regulations, title 34, part 685, section 219.
11.30(f) "Public service organization" means a public service organization under Code of
11.31Federal Regulations, title 34, part 685, section 219.
11.32    Subd. 2. Promotion of federal public service loan forgiveness programs. (a) The
11.33commissioner must develop and distribute informational materials designed to increase
11.34awareness of federal public service loan forgiveness programs among Minnesota residents
12.1who are eligible for those programs. At a minimum, the commissioner must develop and
12.2distribute informational materials that public service organizations may use to promote
12.3awareness of the federal public service loan forgiveness program, including:
12.4(1) a one-page letter addressed to individuals who may be eligible for the public
12.5service loan forgiveness program that briefly summarizes the program, provides
12.6information on what an eligible individual must do in order to participate, and recommends
12.7that they contact their student loan servicer or servicers for additional information;
12.8(2) a detailed fact sheet describing the public service loan forgiveness program; and
12.9(3) a document containing answers to frequently asked questions about the public
12.10service loan forgiveness program.
12.11(b) In place of developing and publishing an informational document required under
12.12paragraph (a), the commissioner may distribute a document published by a federal agency
12.13that meets the requirements of paragraph (a).
12.14    Subd. 3. Publication of informational materials. The commissioner must make
12.15the informational materials required under subdivision 2 available on the office's Web
12.16site and must verify each biennium that the informational materials contain current
12.17information. The commissioner must update and correct any informational materials that
12.18the commissioner finds inaccurate or outdated.
12.19    Subd. 4. Employer information. (a) An employer must provide an employee with
12.20information about the employee's potential eligibility for the federal public service loan
12.21forgiveness program. An employer must annually provide to each employee in written or
12.22electronic form the one-page letter, fact sheet, and frequently asked questions required
12.23under subdivision 2. In addition, an employer must provide a newly hired employee with
12.24that information within two weeks of the employee's first day of employment.
12.25(b) At an employee's request, an employer must provide the employee with a copy
12.26of the employment certification form.
12.27EFFECTIVE DATE.Subdivision 4 is effective January 1, 2017.

12.28    Sec. 17. [136A.1793] PROMOTION OF TEACHER LOAN FORGIVENESS
12.29PROGRAMS.
12.30The commissioner shall provide information to public and private teacher education
12.31programs concerning public and private student loan programs that provide for full or
12.32partial repayment forgiveness. Teacher education programs must provide the information
12.33furnished by the commissioner to their teacher education students.

13.1    Sec. 18. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
13.2adding a subdivision to read:
13.3    Subd. 10. Dual training account. A dual training account is created in the special
13.4revenue fund in the state treasury. The commissioner shall deposit into the account
13.5appropriations made for the purposes of this section. Money in the account is appropriated
13.6to the commissioner for the purposes for which it was appropriated.

13.7    Sec. 19. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
13.8adding a subdivision to read:
13.9    Subd. 11. Administration expenses. The commissioner may expend up to five
13.10percent of the appropriation made for the purposes of this section for administration
13.11of this section.

13.12    Sec. 20. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
13.13136A.87 PLANNING INFORMATION FOR POSTSECONDARY
13.14EDUCATION.
13.15(a) The office shall make available to all residents beginning in 7th grade through
13.16adulthood information about planning and preparing for postsecondary opportunities.
13.17Information must be provided to all 7th grade students and their parents annually
13.18by September 30 about planning for their postsecondary education. The office may
13.19also provide information to high school students and their parents, to adults, and to
13.20out-of-school youth.
13.21(b) The office shall gather and share information with students and parents about
13.22the dual credit acceptance policies of each Minnesota public and private college and
13.23university. The office shall gather and share information related to the acceptance policies
13.24for concurrent enrollment courses, postsecondary enrollment options courses, advanced
13.25placement courses, and international baccalaureate courses. This information must be
13.26shared on the office's Web site and included in the information under paragraph (a).
13.27(c) The information provided under paragraph (a) may include the following:
13.28(1) the need to start planning early;
13.29(2) the availability of assistance in educational planning from educational institutions
13.30and other organizations;
13.31(3) suggestions for studying effectively during high school;
13.32(4) high school courses necessary to be adequately prepared for postsecondary
13.33education;
13.34(5) encouragement to involve parents actively in planning for all phases of education;
14.1(6) information about postsecondary education and training opportunities existing
14.2in the state, their respective missions and expectations for students, their preparation
14.3requirements, admission requirements, and student placement;
14.4(7) ways to evaluate and select postsecondary institutions;
14.5(8) the process of transferring credits among Minnesota postsecondary institutions
14.6and systems;
14.7(9) the costs of postsecondary education and the availability of financial assistance
14.8in meeting these costs, including specific information about the Minnesota Promise;
14.9(10) the interrelationship of assistance from student financial aid, public assistance,
14.10and job training programs; and
14.11(11) financial planning for postsecondary education.
14.12EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
14.13later.

14.14    Sec. 21. Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1,
14.15is amended to read:
14.16    Subdivision 1. ACT or SAT college ready score. (a) A state college or university
14.17may must not require an individual to take a remedial, noncredit course in a subject area if
14.18the individual has received a college ready ACT or SAT score in that subject area.
14.19(b) When deciding if an individual is admitted to or if an individual may enroll in a
14.20state college or university, the state college or university must consider the individual's
14.21scores on the high school Minnesota Comprehensive Assessments, in addition to other
14.22factors determined relevant by the college or university.

14.23    Sec. 22. Minnesota Statutes 2014, section 245.92, is amended to read:
14.24245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS;
14.25FUNCTION.
14.26The ombudsman for persons receiving services or treatment for mental illness,
14.27developmental disabilities, chemical dependency, or emotional disturbance shall promote
14.28the highest attainable standards of treatment, competence, efficiency, and justice. The
14.29ombudsman may gather information and data about decisions, acts, and other matters of an
14.30agency, facility, or program, and shall monitor the treatment of individuals participating in
14.31a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman
14.32is appointed by the governor, serves in the unclassified service, and may be removed only
14.33for just cause. The ombudsman must be selected without regard to political affiliation and
15.1must be a person who has knowledge and experience concerning the treatment, needs,
15.2and rights of clients, and who is highly competent and qualified. No person may serve as
15.3ombudsman while holding another public office.

15.4    Sec. 23. Minnesota Statutes 2014, section 245.94, is amended to read:
15.5245.94 POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS;
15.6RECOMMENDATIONS.
15.7    Subdivision 1. Powers. (a) The ombudsman may prescribe the methods by which
15.8complaints to the office are to be made, reviewed, and acted upon. The ombudsman may
15.9not levy a complaint fee.
15.10(b) The ombudsman may mediate or advocate on behalf of a client.
15.11(c) The ombudsman may investigate the quality of services provided to clients and
15.12determine the extent to which quality assurance mechanisms within state and county
15.13government work to promote the health, safety, and welfare of clients, other than clients
15.14in acute care facilities who are receiving services not paid for by public funds. The
15.15ombudsman is a health oversight agency as defined in Code of Federal Regulations,
15.16title 45, section 164.501.
15.17(d) At the request of a client, or upon receiving a complaint or other information
15.18affording reasonable grounds to believe that the rights of a client who is not capable
15.19of requesting assistance have been adversely affected, the ombudsman may gather
15.20information and data about and analyze, on behalf of the client, the actions of an agency,
15.21facility, or program.
15.22(e) The ombudsman may gather, on behalf of a client, records of an agency, facility,
15.23or program, or records related to clinical drug trials from the University of Minnesota
15.24Department of Psychiatry, if the records relate to a matter that is within the scope of the
15.25ombudsman's authority. If the records are private and the client is capable of providing
15.26consent, the ombudsman shall first obtain the client's consent. The ombudsman is
15.27not required to obtain consent for access to private data on clients with developmental
15.28disabilities. The ombudsman is not required to obtain consent for access to private data
15.29on decedents who were receiving services for mental illness, developmental disabilities,
15.30or emotional disturbance. All data collected, created, received, or maintained by the
15.31ombudsman are governed by chapter 13 and other applicable law.
15.32(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person
15.33to appear, give testimony, or produce documents or other evidence that the ombudsman
15.34considers relevant to a matter under inquiry. The ombudsman may petition the appropriate
15.35court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part
16.1of an investigation possesses the same privileges that a witness possesses in the courts or
16.2under the law of this state. Data obtained from a person under this paragraph are private
16.3data as defined in section 13.02, subdivision 12.
16.4(g) The ombudsman may, at reasonable times in the course of conducting a review,
16.5enter and view premises within the control of an agency, facility, or program.
16.6(h) The ombudsman may attend Department of Human Services Review Board
16.7and Special Review Board proceedings; proceedings regarding the transfer of patients
16.8or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions
16.9operated by the Department of Human Services; and, subject to the consent of the affected
16.10client, other proceedings affecting the rights of clients. The ombudsman is not required to
16.11obtain consent to attend meetings or proceedings and have access to private data on clients
16.12with developmental disabilities.
16.13(i) The ombudsman shall gather data of agencies, facilities, or programs classified
16.14as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding
16.15services provided to clients with developmental disabilities.
16.16(j) To avoid duplication and preserve evidence, the ombudsman shall inform
16.17relevant licensing or regulatory officials before undertaking a review of an action of
16.18the facility or program.
16.19(k) The ombudsman shall monitor the treatment of individuals participating in
16.20a University of Minnesota Department of Psychiatry clinical drug trial and ensure that
16.21all protections for human subjects required by federal law and the Institutional Review
16.22Board are provided.
16.23(l) Sections 245.91 to 245.97 are in addition to other provisions of law under which
16.24any other remedy or right is provided.
16.25    Subd. 2. Matters appropriate for review. (a) In selecting matters for review by the
16.26office, the ombudsman shall give particular attention to unusual deaths or injuries of a
16.27client or reports of emergency use of manual restraint as identified in section 245D.061,
16.28served by an agency, facility, or program, or actions of an agency, facility, or program that:
16.29(1) may be contrary to law or rule;
16.30(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of
16.31an agency, facility, or program;
16.32(3) may be mistaken in law or arbitrary in the ascertainment of facts;
16.33(4) may be unclear or inadequately explained, when reasons should have been
16.34revealed;
16.35(5) may result in abuse or neglect of a person receiving treatment;
17.1(6) may disregard the rights of a client or other individual served by an agency
17.2or facility;
17.3(7) may impede or promote independence, community integration, and productivity
17.4for clients; or
17.5(8) may impede or improve the monitoring or evaluation of services provided to
17.6clients.
17.7(b) The ombudsman shall, in selecting matters for review and in the course of the
17.8review, avoid duplicating other investigations or regulatory efforts.
17.9(c) The ombudsman shall give particular attention to the death or unusual injury of
17.10any individual who is participating in a University of Minnesota Department of Psychiatry
17.11clinical drug trial.
17.12    Subd. 2a. Mandatory reporting. Within 24 hours after a client suffers death or
17.13serious injury, the agency, facility, or program director, or lead investigator of a clinical
17.14drug trial at the University of Minnesota Department of Psychiatry shall notify the
17.15ombudsman of the death or serious injury. The emergency use of manual restraint must
17.16be reported to the ombudsman as required under section 245D.061, subdivision 8. The
17.17ombudsman is authorized to receive identifying information about a deceased client
17.18according to Code of Federal Regulations, title 42, section 2.15, paragraph (b).
17.19    Subd. 3. Complaints. (a) The ombudsman may receive a complaint from any
17.20source concerning an action of an agency, facility, or program. After completing a review,
17.21the ombudsman shall inform the complainant and the agency, facility, or program.
17.22No client may be punished nor may the general condition of the client's treatment be
17.23unfavorably altered as a result of an investigation, a complaint by the client, or by another
17.24person on the client's behalf. An agency, facility, or program shall not retaliate or take
17.25adverse action against a client or other person, who in good faith makes a complaint or
17.26assists in an investigation. The ombudsman may classify as confidential, the identity of a
17.27complainant, upon request of the complainant.
17.28(b) The ombudsman shall receive a complaint from any source concerning an
17.29action or inaction of the University of Minnesota Department of Psychiatry related
17.30to an individual who is enrolled in a department-approved clinical drug trial. No
17.31individual participating in the trial may be punished, nor may the general condition of
17.32the individual's treatment be unfavorably altered, as a result of an investigation or a
17.33complaint by the individual or the individual's advocate. The university shall not retaliate
17.34or take adverse action against any person who in good faith makes a complaint or assists
17.35in an investigation. The ombudsman may classify the identity of the complainant as
17.36confidential, upon request of the complainant.
18.1    Subd. 4. Recommendations to agency. (a) If, after reviewing a complaint or
18.2conducting an investigation and considering the response of an agency, facility, or
18.3program and any other pertinent material, the ombudsman determines that the complaint
18.4has merit or the investigation reveals a problem, the ombudsman may recommend that
18.5the agency, facility, or program:
18.6(1) consider the matter further;
18.7(2) modify or cancel its actions;
18.8(3) alter a rule, order, or internal policy;
18.9(4) explain more fully the action in question; or
18.10(5) take other action.
18.11(b) At the ombudsman's request, the agency, facility, or program shall, within a
18.12reasonable time, inform the ombudsman about the action taken on the recommendation
18.13or the reasons for not complying with it.
18.14    Subd. 5. Recommendations to University of Minnesota. If, after reviewing a
18.15complaint or conducting an investigation and considering the response of the clinical drug
18.16trial's primary investigator or the Department of Psychiatry, the ombudsman determines
18.17that the complaint has merit or the investigation reveals noncompliance with the federal
18.18protection of human subjects requirements or the requirements of the Institutional Review
18.19Board, the ombudsman shall recommend that the Board of Regents of the University of
18.20Minnesota take corrective action to remedy the violations.

18.21    Sec. 24. Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:
18.22    Subdivision 1. Specific reports. The ombudsman may send conclusions and
18.23suggestions concerning any matter reviewed to the governor. Before making public a
18.24conclusion or recommendation that expressly or implicitly criticizes an agency, facility,
18.25program, or any person, the ombudsman shall consult with the governor and the agency,
18.26facility, program, or person concerning the conclusion or recommendation. When sending
18.27a conclusion or recommendation to the governor that is adverse to an agency, facility,
18.28program, or any person, the ombudsman shall include any statement of reasonable length
18.29made by that agency, facility, program, or person in defense or mitigation of the office's
18.30conclusion or recommendation. For purposes of this subdivision, "agency, facility,
18.31program, or any person" includes the University of Minnesota Department of Psychiatry
18.32and its employees working in clinical drug trials.

18.33    Sec. 25. Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:
19.1    Subd. 5. Medical Review Subcommittee. At least five members of the committee,
19.2including at least three physicians, one of whom is a psychiatrist, must be designated by
19.3the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies,
19.4and compensation are governed by subdivision 2. The governor shall designate one of
19.5the members to serve as chair of the subcommittee. The Medical Review Subcommittee
19.6may have access to private and confidential data collected or created by the ombudsman
19.7that are necessary to fulfill the duties of the Medical Review Subcommittee under this
19.8section and may:
19.9(1) make a preliminary determination of whether the death of a client that has been
19.10brought to its attention is unusual or reasonably appears to have resulted from causes other
19.11than natural causes and warrants investigation;
19.12(2) review the causes of and circumstances surrounding the death;
19.13(3) request the county coroner or medical examiner to conduct an autopsy;
19.14(4) assist an agency in its investigations of unusual deaths and deaths from causes
19.15other than natural causes; and
19.16(5) make a preliminary determination of whether the death of a participant in a
19.17clinical drug trial conducted by the University of Minnesota Department of Psychiatry
19.18appears to have resulted from causes other than natural causes and warrants investigation
19.19and reporting as required by federal laws on the protection of human subjects; and
19.20(6) submit a report regarding the death of a client to the committee, the ombudsman,
19.21the client's next-of-kin, and the facility where the death occurred and, where appropriate,
19.22make recommendations to prevent recurrence of similar deaths to the head of each affected
19.23agency or facility, or the Board of Regents of the University of Minnesota.

19.24    Sec. 26. Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:
19.25    Subd. 15. Reporting. (a) A college must report to the commissioner the following
19.26information:
19.27(1) the number of grantees and their race, gender, and ethnicity;
19.28(2) grantee persistence and completion;
19.29(3) employment outcomes; and
19.30(4) other information requested by the commissioner.
19.31(b) The commissioner shall report annually by January 15, 2017, and January 15,
19.322018, to the chairs and ranking minority members of the legislative committees with
19.33jurisdiction over higher education finance by college and in aggregate on the information
19.34submitted to the commissioner under paragraph (a). The commissioner may include in the
19.35report recommendations for changes in the grant program.

20.1    Sec. 27. Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to read:
20.2    Subdivision 1. Pilot program created. The commissioner of the Office of Higher
20.3Education shall make a grant to a nonprofit qualified debt counseling organization to
20.4provide individual student loan debt repayment counseling to borrowers who are Minnesota
20.5residents concerning loans obtained to attend a Minnesota postsecondary institution. The
20.6counseling shall be provided to borrowers who are 30 to 60 days delinquent when they
20.7are referred to or otherwise identified by the organization as candidates for counseling.
20.8The number of individuals receiving counseling may be limited to those capable of being
20.9served with available appropriations for that purpose. A goal of the counseling program is
20.10to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.
20.11The purpose of the counseling is to assist borrowers to:
20.12(1) understand their loan and repayment options;
20.13(2) manage loan repayment; and
20.14(3) develop a workable budget based on the borrower's full financial situation
20.15regarding income, expenses, and other debt.
20.16EFFECTIVE DATE.This section is effective the day following final enactment
20.17and is retroactive to July 1, 2015.

20.18    Sec. 28. STATE GRANT TUITION CAPS.
20.19For the purposes of the state grant program under Minnesota Statutes, section
20.20136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736
20.21for students in two-year programs and the tuition maximum is $14,186 for students in
20.22four-year programs.

20.23    Sec. 29. MNSCU PROGRAM FOR STUDENTS WITH INTELLECTUAL AND
20.24DEVELOPMENTAL DISABILITIES; PLAN REQUIRED.
20.25    Subdivision 1. Development of plan required. The Board of Trustees of the
20.26Minnesota State Colleges and Universities must develop a plan for offering an academic
20.27program for students with intellectual and developmental disabilities, consistent with the
20.28principles established in subdivisions 2 to 4.
20.29    Subd. 2. Program locations. The plan developed must assume the program will be
20.30offered at up to four college or university campuses chosen based on (1) their ability to
20.31offer a robust program using existing facilities and resources and (2) a goal to provide the
20.32program in diverse geographic regions of the state.
21.1    Subd. 3. Enrollment and admission. The plan developed must assume an
21.2enrollment goal for each campus's program of at least ten incoming students per academic
21.3year. The plan may allow for students to be admitted based on an application process
21.4that includes an in-person interview; an independent assessment of an applicant's
21.5interest, motivation, and likelihood of success in the program; and any other eligibility
21.6requirements established by the board. Upon successful completion, a student must be
21.7awarded a certificate, diploma, or other appropriate academic credential.
21.8    Subd. 4. Curriculum and activities. (a) The plan developed must assume a
21.9program that provides an inclusive, two-year full-time residential college experience
21.10for students with intellectual and developmental disabilities. The required curriculum
21.11must include core courses that develop life skills, financial literacy, and the ability to
21.12live independently; rigorous academic work in a student's chosen field of study; and an
21.13internship, apprenticeship, or other skills-based experience to prepare for meaningful
21.14employment upon completion of the program.
21.15(b) In addition to academic requirements, the plan developed must allow
21.16participating students the opportunity to engage fully in campus life. Program activities
21.17must include but are not limited to (1) the establishment of on-campus mentoring and
21.18peer support communities and (2) opportunities for personal growth through leadership
21.19development and other community engagement activities.
21.20(c) A participating campus may tailor its program curriculum and activities to
21.21highlight academic programs, student and community life experiences, and employment
21.22opportunities unique to that campus or the region of the state where the campus is located.
21.23    Subd. 5. Report to legislature. The board must submit a report on the plan required
21.24to be developed by this section to the chairs and ranking minority members of the
21.25committees of the legislature with jurisdiction over higher education finance and policy and
21.26human services finance and policy no later than January 15, 2017. The report must describe
21.27program plans, including strategies for recruitment of applicants, and strategies to address
21.28anticipated program needs that cannot be filled using existing campus or system resources.
21.29EFFECTIVE DATE.This section is effective the day following final enactment.

21.30    Sec. 30. UNIVERSITY OF MINNESOTA AND MNSCU BUDGET
21.31ALLOCATION REPORTS.
21.32(a) The Board of Regents of the University of Minnesota shall report by February
21.331, 2017, to the chairs and ranking minority members of the legislative committees with
21.34primary jurisdiction over higher education finance on the factors it considers when
22.1allocating funds to system campuses. The report must specifically, without limitation,
22.2address the following questions:
22.3(1) what circumstances would lead the university to adopt an alternate budget model
22.4to the Resource Responsibility Center (RRC) model for a system campus;
22.5(2) what were the rationale and factors considered for the initial base budget
22.6allocation to system campuses when the RRC was first established; and
22.7(3) what factors would lead the university to consider adjusting the initial base
22.8allocation model.
22.9(b) The Board of Trustees of the Minnesota State Colleges and Universities shall
22.10report by February 1, 2017, to the chairs and ranking minority members of the legislative
22.11committees with primary jurisdiction over higher education finance on the factors it
22.12considers when allocating state funds to colleges and universities. The report must
22.13specifically, without limitations, address the following areas:
22.14(1) the design and methodology for the allocation of state funds to the colleges
22.15and universities; and
22.16(2) the factors considered in the allocation process.

22.17    Sec. 31. EQUITY IN EDUCATION AND JOB CONNECTION GRANT
22.18PROGRAM.
22.19    Subdivision 1. Grants. (a) The commissioner of the Office of Higher Education
22.20shall award grants to improve postsecondary attendance, completion, and retention and
22.21the obtaining of well-paying jobs for which the postsecondary education provides training
22.22by providing services to historically underrepresented college students. Grants must be
22.23awarded to Minnesota state colleges and universities and private organization programs
22.24that help the state reach the attainment goals under Minnesota Statutes, section 135A.012.
22.25Programs must provide services targeted to make the improvements including, but not
22.26limited to:
22.27    (1) academic and nonacademic counseling or advising;
22.28    (2) mentoring in education and career opportunities;
22.29    (3) structured tutoring;
22.30    (4) career awareness and exploration including internships and post graduation
22.31job placements;
22.32    (5) orientation to college life;
22.33(6) financial aid counseling;
22.34    (7) academic instruction programs in core curricular areas of mathematics and
22.35language arts;
23.1    (8) supplemental instruction programs for college courses with high failure and
23.2withdrawal rates; and
23.3    (9) co-requisite college course models for delivery of academic support.
23.4(b) The office shall structure the grants for sustainability of programs funded by a
23.5grant.
23.6(c) To the extent there are sufficient qualified applicants, approximately 50 percent
23.7of grant dollars must be awarded to private organization programs.
23.8(d) A grant must not be made to a private organization that is a postsecondary
23.9institution.
23.10    Subd. 2. Application process. (a) The commissioner shall develop a grant
23.11application process. The commissioner shall attempt to support projects in a manner that
23.12ensures that eligible students throughout the state have access to program services.
23.13    (b) The grant application must include, at a minimum, the following information:
23.14    (1) a description of the characteristics of the students to be served reflective of the
23.15need for services listed in subdivision 1;
23.16    (2) a description of the services to be provided and a timeline for implementation
23.17of the service activities;
23.18    (3) a description of how the services provided will foster postsecondary retention
23.19and completion;
23.20    (4) a description of how the services will be evaluated to determine whether the
23.21program goals were met;
23.22(5) the history of the applicant in achieving successful improvements using the
23.23services for which a grant is sought;
23.24(6) the assumed cost per student of achieving successful outcomes;
23.25(7) the effect of the grant on assisting students to obtain well-paying jobs;
23.26(8) the proposed grant match;
23.27(9) the organizational commitment to program sustainability; and
23.28    (10) other information as identified by the commissioner.
23.29Grant recipients must specify both program and student outcome goals, and performance
23.30measures for each goal.
23.31    Subd. 3. Advisory committee. The commissioner may establish and convene an
23.32advisory committee to assist the commissioner in reviewing applications and advise the
23.33commissioner on grantees and grant amounts. The members of the committee may include
23.34representatives of postsecondary institutions, organizations providing postsecondary
23.35academic and career services, and others deemed appropriate by the commissioner.
24.1    Subd. 4. Outcome report. Each grant recipient must annually submit a report to
24.2the Office of Higher Education identifying its program and student goals and activities
24.3implemented. A report must include, but not be limited to, information on:
24.4(1) number of students served;
24.5(2) course taking and grade point average of participating students;
24.6    (3) persistence and retention rates of participating students;
24.7(4) postsecondary graduation rates of participating students;
24.8    (5) the number of students who required postsecondary academic remediation and
24.9number of remedial courses for each of those students and in the aggregate; and
24.10(6) jobs and wage rates of students after postsecondary graduation.
24.11To the extent possible, the report must breakdown outcomes by Pell grant qualification,
24.12race, and ethnicity.
24.13    Subd. 5. Legislative report. By January 15 of each year through 2021, the office
24.14shall submit a report to the chairs and ranking minority members of the committees in the
24.15house of representatives and the senate with jurisdiction over higher education finance
24.16regarding the grant recipients and their activities. The report shall include information
24.17about the students served, the organizations providing services, program activities,
24.18program goals and outcomes, and program revenue sources and funding levels.

24.19ARTICLE 2
24.20AGRICULTURE

24.21
Section 1. APPROPRIATIONS.
24.22The sums shown in the columns marked "Appropriations" are added to the
24.23appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
24.24agencies and for the purposes specified in this article. The appropriations are from the
24.25general fund, or another named fund, and are available for the fiscal year indicated for
24.26each purpose. The figures "2016" and "2017" used in this article mean that the addition
24.27to the appropriations listed under them are available for the fiscal year ending June 30,
24.282016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
24.29year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
24.30following final enactment.
24.31
APPROPRIATIONS
24.32
Available for the Year
24.33
Ending June 30
24.34
2016
2017

25.1
Sec. 2. DEPARTMENT OF AGRICULTURE
$
-0-
$
4,433,000
25.2$250,000 the second year is for the tractor
25.3rollover protection pilot program under
25.4Minnesota Statutes, section 17.119. This is a
25.5onetime appropriation.
25.6$250,000 the second year is to administer
25.7the industrial hemp pilot program under
25.8Minnesota Statutes, section 18K.09. This is
25.9a onetime appropriation.
25.10$1,000,000 the second year is for grants
25.11to the Board of Regents of the University
25.12of Minnesota to fund the Forever Green
25.13Agriculture Initiative and to protect the
25.14state's natural resources while increasing
25.15the efficiency, profitability, and productivity
25.16of Minnesota farmers by incorporating
25.17perennial and winter annual crops into
25.18existing agricultural practices. This is a
25.19onetime appropriation and is available until
25.20June 30, 2019. The appropriation in Laws
25.212015, First Special Session chapter 2, article
25.222, section 3, paragraph (i), is available until
25.23June 30, 2018.
25.24$600,000 the second year is for a grant
25.25to the Board of Regents of the University
25.26of Minnesota to develop, in consultation
25.27with the commissioner of agriculture and
25.28the Board of Animal Health, a software
25.29tool or application through the Veterinary
25.30Diagnostic Laboratory that empowers
25.31veterinarians and producers to understand
25.32the movement of unique pathogen strains in
25.33livestock and poultry production systems,
25.34monitor antibiotic resistance, and implement
26.1effective biosecurity measures that promote
26.2animal health and limit production losses.
26.3The base for fiscal year 2020 is $0.
26.4In addition to the amounts appropriated in
26.5Laws 2015, First Special Session chapter 4,
26.6article 1, section 2, subdivision 4:
26.7(1) $450,000 the second year is appropriated
26.8for transfer to the Board of Regents of the
26.9University of Minnesota for the cultivated
26.10wild rice breeding project at the North
26.11Central Research and Outreach Center to
26.12include a tenure track/research associate
26.13plant breeder; and
26.14(2) $350,000 the second year is appropriated
26.15for transfer to the Board of Regents of the
26.16University of Minnesota for potato breeding.
26.17$283,000 the second year is for a grant to
26.18the Board of Regents of the University of
26.19Minnesota to maintain and increase animal
26.20disease testing capacity through the purchase
26.21of Veterinary Diagnostic Laboratory
26.22equipment. This is a onetime appropriation.
26.23$250,000 the second year is appropriated
26.24for transfer to the good food access account
26.25created under Minnesota Statutes, section
26.2617.1017, subdivision 3. This is a onetime
26.27appropriation and is available until June 30,
26.282019.
26.29$1,000,000 the second year is appropriated
26.30for transfer to the agricultural emergency
26.31account in the agricultural fund. This is a
26.32onetime transfer.

27.1    Sec. 3. [17.041] AGRICULTURAL EMERGENCY ACCOUNT;
27.2APPROPRIATION.
27.3    Subdivision 1. Establishment; appropriation. An agricultural emergency account
27.4is established in the agricultural fund. Money in the account, including interest, is
27.5appropriated to the commissioner for emergency response and preparedness activities
27.6for agricultural emergencies affecting producers of livestock, poultry, crops, or other
27.7agricultural products. Eligible uses include, but are not limited to, purchasing necessary
27.8equipment and reimbursing costs incurred by local units of government that are not
27.9eligible for reimbursement from other sources.
27.10    Subd. 2. Transfer authorized. The commissioner may transfer money in the
27.11account to the Board of Animal Health, other state agencies, or the University of
27.12Minnesota for purposes of subdivision 1.
27.13    Subd. 3. Annual report. No later than February 1 each year, the commissioner
27.14must report activities and expenditures under this section to the legislative committees
27.15and divisions with jurisdiction over agriculture finance.

27.16    Sec. 4. [17.1017] GOOD FOOD ACCESS PROGRAM.
27.17    Subdivision 1. Definitions. (a) For purposes of this section, unless the language
27.18or context indicates that a different meaning is intended, the following terms have the
27.19meanings given them.
27.20(b) "Account" means the good food access account established in subdivision 3.
27.21(c) "Commissioner" means the commissioner of agriculture.
27.22(d) "Economic or community development financial institution (ECDFI)" means
27.23a lender, including but not limited to a community development financial institution
27.24(CDFI), an economic development district (EDD), a political subdivision of the state, a
27.25microenterprise firm, or a nonprofit community lending organization that has previous
27.26experience lending to a food retailer, producer, or another healthy food enterprise in an
27.27underserved community in a low-income or moderate-income area, as defined in this
27.28section; has been in existence and operating prior to January 1, 2014; has demonstrated
27.29the ability to raise matching capital and in-kind services to leverage appropriated money;
27.30has the demonstrated ability to underwrite loans and grants; and has partnered previously
27.31with nonprofit healthy food access, public health, or related governmental departments or
27.32community organizations.
27.33(e) "Farmers' market" means an association of three or more persons who assemble
27.34at a defined location that is open to the public for the purpose of selling directly to the
28.1consumer the products of a farm or garden occupied and cultivated by the person selling
28.2the product.
28.3(f) "Financing" means loans, including low-interest loans, zero-interest loans,
28.4forgivable loans, and other types of financial assistance other than grants.
28.5(g) "Food hub" means a centrally located facility with a business management
28.6structure that facilitates the aggregation, storage, processing, distribution, marketing, and
28.7sale of locally or regionally produced food products, and which may include a small-scale
28.8retail grocery operation.
28.9(h) "Good Food Access Program Advisory Committee" means the Good Food
28.10Access Program Advisory Committee under section 17.1018.
28.11(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail
28.12establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries,
28.13and dairy products and may also sell household products, sundries, and other products.
28.14Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery
28.15establishment and may include a mobile food market or a delivery service operation.
28.16(j) "Low-income area" means a census tract as reported in the most recently
28.17completed decennial census published by the United States Bureau of the Census that has
28.18a poverty rate of at least 20 percent or in which the median family income does not exceed
28.1980 percent of the greater of the statewide or metropolitan median family income.
28.20(k) "Moderate-income area" means a census tract as reported in the most recently
28.21completed decennial census published by the United States Bureau of the Census in which
28.22the median family income is between 81 percent and 95 percent of the median family
28.23income for that area.
28.24(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or
28.25cooperative retail grocery operation located in a movable new or renovated truck, bus, or
28.26other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood,
28.27fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal
28.28supply of cooking utensils and equipment and other household products and sundries.
28.29(m) "Program" means the good food access program established in this section.
28.30(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery
28.31store as defined in this section. Small food retailer includes, but is not limited to, a corner
28.32store, convenience store, farmers' market, mobile food market, and a retail food outlet
28.33operated by an emergency food program or food hub.
28.34(o) "Technical assistance" means needs-based project assistance provided through
28.35the program, including sustainability-focused individualized guidance, presentations,
28.36workshops, trainings, printed materials, mentorship opportunities, peer-to-peer
29.1opportunities, or other guidance and resources on relevant topics such as business
29.2planning, sales projections, cash flow, succession planning, financing, fund-raising,
29.3marketing, food preparation demonstrations, and workforce training.
29.4(p) "Underserved community" means a census tract that is federally designated
29.5as a food desert by the United States Department of Agriculture, or a census tract in a
29.6low-income or moderate-income area that includes a substantial subpopulation such as
29.7the elderly or the disabled that has low supermarket access, regardless of distance, due
29.8to lack of transportation.
29.9    Subd. 2. Program established. (a) A good food access program is established within
29.10the Department of Agriculture to increase the availability of and access to affordable,
29.11nutritious, and culturally appropriate food, including fresh fruits and vegetables, for
29.12underserved communities in low-income and moderate-income areas by providing financial
29.13support and sustainable public-private projects to open, renovate, or expand the operations
29.14of grocery stores and small food retailers; expanding access to credit and reducing barriers
29.15to investment in underserved communities in low- and moderate-income areas; and to
29.16provide technical assistance, primarily for small food retailers with demonstrated need,
29.17to increase availability and sustainable sales of affordable, nutritious, and culturally
29.18appropriate food, including fresh fruits and vegetables, to underserved communities in
29.19low-income and moderate-income areas. The commissioner, in cooperation with public
29.20and private partners, shall establish and implement the program as provided in this section.
29.21(b) The good food access program shall be comprised of state or private grants, loans,
29.22or other types of financial and technical assistance for the establishment, construction,
29.23expansion of operations, or renovation of grocery stores and small food retailers to increase
29.24the availability of and access to affordable fresh produce and other nutritious, culturally
29.25appropriate food to underserved communities in low-income and moderate-income areas.
29.26    Subd. 3. Good food access account. A good food access account is established in
29.27the agricultural fund. The account consists of money appropriated by the legislature to the
29.28commissioner, as provided by law, and any other money donated, allotted, transferred,
29.29or otherwise provided to the account. Money in the account, including interest, is
29.30appropriated to the commissioner for the purposes of this section, and shall be used, to
29.31the extent practicable, to leverage other forms of public and private financing or financial
29.32assistance for the projects.
29.33    Subd. 4. Program administration. (a) The commissioner shall be the administrator
29.34of the account for auditing purposes and shall establish program requirements and a
29.35competitive process for projects applying for financial and technical assistance.
30.1(b) The commissioner may receive money or other assets from any source, including
30.2but not limited to philanthropic foundations and financial investors, for deposit into the
30.3account.
30.4(c) Through issuance of requests for proposals, the commissioner may contract
30.5with one or more qualified economic or community development financial institutions
30.6to manage the financing component of the program and with one or more qualified
30.7organizations or public agencies with financial or other program-related expertise to
30.8manage the provision of technical assistance to project grantees.
30.9(d) Money in the account at the close of each fiscal year shall remain in the account
30.10and shall not cancel. In each biennium, the commissioner shall determine the appropriate
30.11proportion of money to be allocated to loans, grants, technical assistance, and any other
30.12types of financial assistance.
30.13(e) To encourage public-private, cross-sector collaboration and investment in the
30.14account and program and to ensure that the program intent is maintained throughout
30.15implementation, the commissioner shall convene and maintain the Good Food Access
30.16Program Advisory Committee.
30.17(f) The commissioner, in cooperation with the Good Food Access Program Advisory
30.18Committee, shall manage the program, establish program criteria, facilitate leveraging of
30.19additional public and private investment, and promote the program statewide.
30.20(g) The commissioner, in cooperation with the Good Food Access Program Advisory
30.21Committee, shall establish annual monitoring and accountability mechanisms for all
30.22projects receiving financing or other financial or technical assistance through this program.
30.23    Subd. 5. Eligible projects. (a) The commissioner, in cooperation with the program
30.24partners and advisors, shall establish project eligibility guidelines and application
30.25processes to be used to review and select project applicants for financing or other financial
30.26or technical assistance. All projects must be located in an underserved community or must
30.27serve primarily underserved communities in low-income and moderate-income areas.
30.28(b) Projects eligible for financing include, but are not limited to, new construction,
30.29renovations, expansions of operations, and infrastructure upgrades of grocery stores and
30.30small food retailers to improve the availability of and access to affordable, nutritious food,
30.31including fresh fruits and vegetables, and build capacity in areas of greatest need.
30.32(c) Projects eligible for other types of financial assistance such as grants or
30.33technical assistance are primarily projects throughout the state, including, but not limited
30.34to, feasibility studies, new construction, renovations, expansion of operations, and
30.35infrastructure upgrades of small food retailers.
31.1    Subd. 6. Qualifications for receipt of financing and other financial or technical
31.2assistance. (a) An applicant for receipt of financing through an economic or community
31.3development financial institution, or an applicant for a grant or other financial or technical
31.4assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
31.5proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
31.6or nonprofit community development organization. Each applicant must:
31.7(1) demonstrate community engagement in and support for the project;
31.8(2) demonstrate the capacity to successfully implement the project;
31.9(3) demonstrate a viable plan for long-term sustainability, including the ability to
31.10increase the availability of and access to affordable, nutritious, and culturally appropriate
31.11food, including fresh fruits and vegetables, for underserved communities in low-income
31.12and moderate-income areas; and
31.13(4) demonstrate the ability to repay the debt, to the extent that the financing requires
31.14repayment.
31.15(b) Each applicant must also agree to comply with the following conditions for a
31.16period of at least five years, except as otherwise specified in this section:
31.17(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;
31.18(2) apply to accept Special Supplemental Nutrition Program for Women, Infants,
31.19and Children (WIC) benefits and, if approved, accept WIC benefits;
31.20(3) allocate at least 30 percent of retail space for the sale of affordable, nutritious,
31.21and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat
31.22dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute
31.23beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins,
31.24consistent with nutrition standards in national guidelines described in the current United
31.25States Department of Agriculture Dietary Guidelines for Americans;
31.26(4) comply with all data collection and reporting requirements established by the
31.27commissioner; and
31.28(5) promote the hiring, training, and retention of local or regional residents from
31.29low-income and moderate-income areas that reflect area demographics, including
31.30communities of color.
31.31(c) A selected project that is a small food retailer is not subject to the allocation
31.32agreement under paragraph (b), clause (3), and may use financing, grants, or other financial
31.33or technical assistance for refrigeration, displays, or onetime capital expenditures for the
31.34promotion and sale of perishable foods, including a combination of affordable, nutritious,
31.35and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats,
32.1poultry, and fish, consistent with nutrition standards in national guidelines described in the
32.2current United States Department of Agriculture Dietary Guidelines for Americans.
32.3    Subd. 7. Additional selection criteria. In determining which qualified projects to
32.4finance, and in determining which qualified projects to provide with grants or other types
32.5of financial or technical assistance, the commissioner, in cooperation with any entities
32.6with which the commissioner contracts for those purposes and the Good Food Access
32.7Program Advisory Committee, shall also consider:
32.8(1) the level of need in the area to be served;
32.9(2) the degree to which the project requires an investment of public support, or
32.10technical assistance where applicable, to move forward, build capacity, create community
32.11impact, or be competitive;
32.12(3) the likelihood that the project will have positive economic and health impacts on
32.13the underserved community, including creation and retention of jobs for local or regional
32.14residents from low-income and moderate-income areas that reflect area demographics,
32.15including communities of color;
32.16(4) the degree to which the project will participate in state and local health department
32.17initiatives to educate consumers on nutrition, promote healthy eating and healthy weight,
32.18and support locally grown food products through programs such as Minnesota Grown; and
32.19(5) any other criteria that the commissioner, in cooperation with public and private
32.20partners, determines to be consistent with the purposes of this chapter.
32.21    Subd. 8. Eligible costs. Financing for project loans, including low-interest,
32.22zero-interest, and forgivable loans, grants, and other financial or technical assistance, may
32.23be used to support one or more of the following purposes:
32.24(1) site acquisition and preparation;
32.25(2) predevelopment costs, including but not limited to feasibility studies, market
32.26studies, and appraisals;
32.27(3) construction and build-out costs;
32.28(4) equipment and furnishings;
32.29(5) workforce or retailer training; and
32.30(6) working capital.
32.31    Subd. 9. Legislative report. The commissioner, in cooperation with any economic
32.32or community development financial institution and any other entity with which it
32.33contracts, shall submit an annual report on the good food access program by January 15 of
32.34each year to the chairs and ranking minority members of the house of representatives and
32.35senate committees and divisions with jurisdiction over agriculture policy and finance. The
32.36annual report shall include, but not be limited to, a summary of the following metrics:
33.1(1) the number and types of projects financed;
33.2(2) the amount of dollars leveraged or matched per project;
33.3(3) the geographic distribution of financed projects;
33.4(4) the number and types of technical assistance recipients;
33.5(5) any market or commodity expansion associated with increased access;
33.6(6) the demographics of the areas served;
33.7(7) the costs of the program;
33.8(8) the number of SNAP and WIC dollars spent;
33.9(9) any increase in retail square footage;
33.10(10) the number of loans or grants to minority-owned or female-owned businesses;
33.11and
33.12(11) measurable economic and health outcomes, including, but not limited to,
33.13increases in sales and consumption of locally sourced and other fresh fruits and vegetables,
33.14the number of construction and retail jobs retained or created, and any health initiatives
33.15associated with the program.

33.16    Sec. 5. [17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY
33.17COMMITTEE.
33.18    Subdivision 1. Definitions. As used in this section, the following terms have the
33.19meanings given them:
33.20(1) "program" means the good food access program under section 17.1017; and
33.21(2) "commissioner" means the commissioner of agriculture.
33.22    Subd. 2. Creation. The Good Food Access Program Advisory Committee consists
33.23of the following members, appointed by the commissioner of agriculture, unless otherwise
33.24specified:
33.25(1) the commissioners of health, employment and economic development, and
33.26human services, or their respective designees;
33.27(2) one person representing the grocery industry;
33.28(3) two people representing economic or community development, one rural
33.29member and one urban or suburban member;
33.30(4) two people representing political subdivisions of the state;
33.31(5) one person designated by the Council for Minnesotans of African Heritage;
33.32(6) one person designated by the Minnesota Indian Affairs Council;
33.33(7) one person designated by the Council on Asian Pacific Minnesotans;
33.34(8) one person designated by the Chicano Latino Affairs Council;
33.35(9) one person designated by the Minnesota Farmers Union;
34.1(10) one person representing public health experts;
34.2(11) one person representing philanthropic foundations;
34.3(12) one person representing economic or community development financial
34.4institutions;
34.5(13) one person representing the University of Minnesota Regional Sustainable
34.6Development Partnerships;
34.7(14) two people representing organizations engaged in addressing food security,
34.8one representative from a statewide hunger relief organization and one from a
34.9community-based organization;
34.10(15) one person representing immigrant farmer-led organizations;
34.11(16) one person representing small business technical assistance with experience
34.12in food retail; and
34.13(17) up to four additional members with economic development, health equity,
34.14financial, or other relevant expertise.
34.15At least half of the members must reside in or their organizations must serve rural
34.16Minnesota. The commissioner may remove members and fill vacancies as provided in
34.17section 15.059, subdivision 4.
34.18    Subd. 3. Duties. The advisory committee must advise the commissioner of
34.19agriculture on managing the program, establishing program criteria, establishing project
34.20eligibility guidelines, establishing application processes and additional selection criteria,
34.21establishing annual monitoring and accountability mechanisms, facilitating leveraging of
34.22additional public and private investments, and promoting the program statewide.
34.23    Subd. 4. Meetings. The commissioner must convene the advisory committee at
34.24least two times per year to achieve the committee's duties.
34.25    Subd. 5. Administrative support. The commissioner of agriculture must provide
34.26staffing, meeting space, and administrative services for the advisory committee.
34.27    Subd. 6. Chair. The commissioner of agriculture or the commissioner's designee
34.28shall serve as chair of the committee.
34.29    Subd. 7. Compensation. The public members of the advisory committee serve
34.30without compensation or payment of expenses.
34.31    Subd. 8. Expiration. The advisory committee does not expire.

34.32    Sec. 6. Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:
34.33    Subd. 4. Definitions. (a) For the purposes of this section, the terms defined in this
34.34subdivision have the meanings given them.
35.1    (b) "Agricultural and environmental revolving accounts" means accounts in the
35.2agricultural fund, controlled by the commissioner, which hold funds available to the
35.3program.
35.4    (c) "Agriculture supply business" means a person, partnership, joint venture,
35.5corporation, limited liability company, association, firm, public service company,
35.6or cooperative that provides materials, equipment, or services to farmers or
35.7agriculture-related enterprises.
35.8    (d) "Allocation" means the funds awarded to an applicant for implementation of best
35.9management practices through a competitive or noncompetitive application process.
35.10    (e) "Applicant" means a local unit of government eligible to participate in this
35.11program that requests an allocation of funds as provided in subdivision 6b.
35.12    (f) "Best management practices" has the meaning given in sections 103F.711,
35.13subdivision 3
, and 103H.151, subdivision 2, or. Best management practices also means
35.14other practices, techniques, and measures that have been demonstrated to the satisfaction
35.15of the commissioner: (1) to prevent or reduce adverse environmental impacts by using
35.16the most effective and practicable means of achieving environmental goals; or (2) to
35.17achieve drinking water quality standards under chapter 103H or under Code of Federal
35.18Regulations, title 40, parts 141 and 143, as amended.
35.19    (g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
35.20applying for a low-interest loan.
35.21    (h) "Commissioner" means the commissioner of agriculture, including when the
35.22commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
35.23designee of the commissioner.
35.24    (i) "Committed project" means an eligible project scheduled to be implemented at
35.25a future date:
35.26    (1) that has been approved and certified by the local government unit; and
35.27    (2) for which a local lender has obligated itself to offer a loan.
35.28    (j) "Comprehensive water management plan" means a state approved and locally
35.29adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
35.30103D.401 , or 103D.405.
35.31    (k) "Cost incurred" means expenses for implementation of a project accrued because
35.32the borrower has agreed to purchase equipment or is obligated to pay for services or
35.33materials already provided as a result of implementing an approved eligible project.
35.34    (l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
35.35company, association, firm, public service company, or cooperative that regularly
35.36participates in physical labor or operations management of farming and files a Schedule F
36.1as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
36.2the primary business activity under Schedule C, K, or S, or any other applicable report to
36.3the United States Internal Revenue Service.
36.4    (m) "Lender agreement" means an agreement entered into between the commissioner
36.5and a local lender which contains terms and conditions of participation in the program.
36.6    (n) "Local government unit" means a county, soil and water conservation district,
36.7or an organization formed for the joint exercise of powers under section 471.59 with
36.8the authority to participate in the program.
36.9    (o) "Local lender" means a local government unit as defined in paragraph (n), a state
36.10or federally chartered bank, a savings association, a state or federal credit union, Agribank
36.11and its affiliated organizations, or a nonprofit economic development organization or other
36.12financial lending institution approved by the commissioner.
36.13    (p) "Local revolving loan account" means the account held by a local government unit
36.14and a local lender into which principal repayments from borrowers are deposited and new
36.15loans are issued in accordance with the requirements of the program and lender agreements.
36.16    (q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
36.17    (r) "Program" means the agriculture best management practices loan program
36.18in this section.
36.19    (s) "Project" means one or more components or activities located within Minnesota
36.20that are required by the local government unit to be implemented for satisfactory
36.21completion of an eligible best management practice.
36.22    (t) "Rural landowner" means the owner of record of Minnesota real estate located
36.23in an area determined by the local government unit to be rural after consideration of
36.24local land use patterns, zoning regulations, jurisdictional boundaries, local community
36.25definitions, historical uses, and other pertinent local factors.
36.26    (u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
36.27(d), except as expressly limited in this section.

36.28    Sec. 7. Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:
36.29    Subd. 11a. Eligible projects. (a) All projects that remediate or mitigate adverse
36.30environmental impacts are eligible if:
36.31(1) the project is eligible under the an allocation agreement and funding sources
36.32designated by the local government unit to finance the project; and.
36.33(2) (b) A manure management projects remediate project is eligible if the project
36.34remediates or mitigate mitigates impacts from facilities with less than 1,000 animal units
37.1as defined in Minnesota Rules, chapter 7020, and otherwise meets the requirements of
37.2this section.
37.3(c) A drinking water project is eligible if the project:
37.4(1) remediates the adverse environmental impacts or presence of contaminants in
37.5private well water;
37.6(2) implements best management practices to achieve drinking water standards; and
37.7(3) otherwise meets the requirements of this section.

37.8    Sec. 8. [17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT
37.9PROGRAM.
37.10    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share
37.11grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that
37.12retrofit eligible tractors with eligible rollover protective structures. Grants are limited to
37.1370 percent of the farmer's or school's documented cost to purchase, ship, and install an
37.14eligible rollover protective structure. The commissioner must increase the grant award
37.15amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or
37.16school's cost per tractor to no more than $500.
37.17(b) A rollover protective structure is eligible if it meets or exceeds SAE International
37.18standard J2194.
37.19(c) A tractor is eligible if the tractor was built before 1987.
37.20    Subd. 2. Promotion; administration. The commissioner may spend up to 20
37.21percent of total program dollars each fiscal year to promote and administer the program to
37.22Minnesota farmers and schools.
37.23    Subd. 3. Nonstate sources; appropriation. The commissioner must accept
37.24contributions from nonstate sources to supplement state appropriations for this program.
37.25Contributions received under this subdivision are appropriated to the commissioner for
37.26purposes of this section.
37.27    Subd. 4. Expiration. This section expires on June 30, 2019.

37.28    Sec. 9. Minnesota Statutes 2014, section 18B.26, subdivision 3, is amended to read:
37.29    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
37.30pesticide, a registrant shall pay an annual registration application fee for each agricultural
37.31pesticide of $350. The fee is due by December 31 preceding the year for which the
37.32application for registration is made. The fee is nonrefundable.
37.33(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
37.34registration application fee for each nonagricultural pesticide of $350. The fee is due by
38.1December 31 preceding the year for which the application for registration is made. The fee
38.2is nonrefundable. The If the registrant's annual gross sales of the nonagricultural pesticide
38.3exceeded $70,000 in the previous calendar year, the registrant of a nonagricultural pesticide
38.4shall pay, in addition to the $350 minimum fee, a fee of equal to 0.5 percent of that portion
38.5of the annual gross sales of the over $70,000. For purposes of this subdivision, gross sales
38.6includes both nonagricultural pesticide sold in the state and the annual gross sales of the
38.7nonagricultural pesticide sold into the state for use in this state. No additional fee is
38.8required if the fee due amount based on percent of annual gross sales of a nonagricultural
38.9pesticide is less than $10. The registrant shall secure sufficient sales information of
38.10nonagricultural pesticides distributed into this state from distributors and dealers,
38.11regardless of distributor location, to make a determination. Sales of nonagricultural
38.12pesticides in this state and sales of nonagricultural pesticides for use in this state by
38.13out-of-state distributors are not exempt and must be included in the registrant's annual
38.14report, as required under paragraph (g), and fees shall be paid by the registrant based upon
38.15those reported sales. Sales of nonagricultural pesticides in the state for use outside of
38.16the state are exempt from the gross sales fee in this paragraph if the registrant properly
38.17documents the sale location and distributors. A registrant paying more than the minimum
38.18fee shall pay the balance due by March 1 based on the gross sales of the nonagricultural
38.19pesticide by the registrant for the preceding calendar year. A pesticide determined by the
38.20commissioner to be a sanitizer or disinfectant is exempt from the gross sales fee.
38.21(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
38.22pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
38.23agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
38.24sold into the state for use in this state.
38.25(d) In those cases where a registrant first sells an agricultural pesticide in or into the
38.26state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
38.27license and is responsible for payment of the annual gross sales fee under paragraph (c),
38.28record keeping under paragraph (i), and all other requirements of section 18B.316.
38.29(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
38.30by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
38.31commissioner, after a public hearing, may increase proportionally the pesticide sales and
38.32product registration fees under this chapter by the amount necessary to ensure this level
38.33of revenue is achieved. The authority under this section expires on June 30, 2014. The
38.34commissioner shall report any fee increases under this paragraph 60 days before the fee
38.35change is effective to the senate and house of representatives agriculture budget divisions.
39.1    (f) An additional fee of 50 percent of the registration application fee must be paid by
39.2the applicant for each pesticide to be registered if the application is a renewal application
39.3that is submitted after December 31.
39.4    (g) A registrant must annually report to the commissioner the amount, type and
39.5annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
39.6otherwise distributed in the state. The report shall be filed by March 1 for the previous
39.7year's registration. The commissioner shall specify the form of the report or approve
39.8the method for submittal of the report and may require additional information deemed
39.9necessary to determine the amount and type of nonagricultural pesticide annually
39.10distributed in the state. The information required shall include the brand name, United
39.11States Environmental Protection Agency registration number, and amount of each
39.12nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
39.13the information collected, if made public, shall be reported in a manner which does not
39.14identify a specific brand name in the report.
39.15(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
39.16report to the commissioner the amount, type, and annual gross sales of each registered
39.17agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
39.18state for use in the state. The report must be filed by January 31 for the previous year's
39.19sales. The commissioner shall specify the form, contents, and approved electronic method
39.20for submittal of the report and may require additional information deemed necessary to
39.21determine the amount and type of agricultural pesticide annually distributed within the
39.22state or into the state. The information required must include the brand name, United States
39.23Environmental Protection Agency registration number, and amount of each agricultural
39.24pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
39.25(i) A person who registers a pesticide with the commissioner under paragraph (b),
39.26or a registrant under paragraph (d), shall keep accurate records for five years detailing
39.27all distribution or sales transactions into the state or in the state and subject to a fee and
39.28surcharge under this section.
39.29(j) The records are subject to inspection, copying, and audit by the commissioner
39.30and must clearly demonstrate proof of payment of all applicable fees and surcharges
39.31for each registered pesticide product sold for use in this state. A person who is located
39.32outside of this state must maintain and make available records required by this subdivision
39.33in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
39.34auditing of the records.
40.1(k) The commissioner may adopt by rule regulations that require persons subject
40.2to audit under this section to provide information determined by the commissioner to be
40.3necessary to enable the commissioner to perform the audit.
40.4    (l) A registrant who is required to pay more than the minimum fee for any pesticide
40.5under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
40.6paid after March 1 in the year for which the license is to be issued.

40.7    Sec. 10. Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:
40.8    Subd. 2. Activities authorized. For the purposes of this program, the commissioner
40.9may issue grants, loans, or other forms of financial assistance. Eligible activities include,
40.10but are not limited to, grants to livestock producers under the livestock investment grant
40.11program under section 17.118, bioenergy awards made by the NextGen Energy Board
40.12under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and
40.13financial assistance to support other rural economic infrastructure activities.

40.14    Sec. 11. Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:
40.1541A.14 AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND
40.16TECHNOLOGY TRANSFER GRANT PROGRAM.
40.17    Subdivision 1. Duties; grants. The agriculture research, education, extension, and
40.18technology transfer grant program is created. The purpose of the grant program is to
40.19provide investments that will most efficiently achieve long-term agricultural productivity
40.20increases through improved infrastructure, vision, and accountability. The scope and
40.21intent of the grants, to the extent possible, shall provide for a long-term base funding
40.22that allows the research grantee to continue the functions of the research, education, and
40.23extension, and technology transfer efforts to a practical conclusion. Priority for grants
40.24shall be given to human infrastructure. The commissioner shall provide grants for:
40.25(1) agricultural research, extension, and technology transfer needs and recipients
40.26including agricultural research and extension at the University of Minnesota, research and
40.27outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the
40.28Minnesota Agricultural Experiment Station, University of Minnesota Extension Service,
40.29the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
40.30the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
40.31Education Council; for use by any of the following:
40.32(i) the College of Food, Agricultural and Natural Resource Sciences;
40.33(ii) the Minnesota Agricultural Experiment Station;
40.34(iii) the University of Minnesota Extension Service;
41.1(iv) the University of Minnesota Veterinary School;
41.2(v) the Veterinary Diagnostic Laboratory; or
41.3(vi) the Stakman-Borlaug Center;
41.4(2) agriculture rapid response for plant and animal diseases and pests; and
41.5(3) agricultural education including but not limited to the Minnesota Agriculture
41.6Education Leadership Council, farm business management, mentoring programs, graduate
41.7debt forgiveness, and high school programs.
41.8    Subd. 2. Advisory panel. (a) In awarding grants under this section, the
41.9commissioner and a representative of the College of Food, Agricultural and Natural
41.10Resource Sciences at the University of Minnesota must consult with an advisory panel
41.11consisting of the following stakeholders:
41.12(1) a representative of the College of Food, Agricultural and Natural Resource
41.13Sciences at the University of Minnesota;
41.14(2) (1) a representative of the Minnesota State Colleges and Universities system;
41.15(3) (2) a representative of the Minnesota Farm Bureau;
41.16(4) (3) a representative of the Minnesota Farmers Union;
41.17(5) (4) a person representing agriculture industry statewide;
41.18(6) (5) a representative of each of the state commodity councils organized under
41.19section 17.54 and the Minnesota Pork Board;
41.20(7) (6) a person representing an association of primary manufacturers of forest
41.21products;
41.22(8) (7) a person representing organic or sustainable agriculture; and
41.23(9) (8) a person representing statewide environment and natural resource
41.24conservation organizations.
41.25(b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their
41.26respective organizations.
41.27    Subd. 3. Account. An agriculture research, education, extension, and technology
41.28transfer account is created in the agricultural fund in the state treasury. The account
41.29consists of money received in the form of gifts, grants, reimbursement, or appropriations
41.30from any source for any of the purposes provided in subdivision 1, and any interest or
41.31earnings of the account. Money in the account is appropriated to the commissioner of
41.32agriculture for the purposes under subdivision 1.
41.33EFFECTIVE DATE.This section is effective the day following final enactment.

41.34    Sec. 12. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
41.35subdivision to read:
42.1    Subd. 2a. Biobased content. "Biobased content" means a chemical, polymer,
42.2monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a
42.3biobased percentage of at least 51 percent as determined by testing representative samples
42.4using American Society for Testing and Materials specification D6866.

42.5    Sec. 13. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
42.6subdivision to read:
42.7    Subd. 2b. Biobased formulated product. "Biobased formulated product" means
42.8a product that is not sold primarily for use as food, feed, or fuel and that has a biobased
42.9content percentage of at least ten percent as determined by testing representative samples
42.10using American Society for Testing and Materials specification D6866, or that contains
42.11a biobased chemical constituent that displaces a known hazardous or toxic constituent
42.12previously used in the product formulation.

42.13    Sec. 14. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
42.14subdivision to read:
42.15    Subd. 2c. Biobutanol. "Biobutanol" means fermentation isobutyl alcohol that is
42.16derived from agricultural products, including potatoes, cereal grains, cheese whey, and
42.17sugar beets; forest products; or other renewable resources, including residue and waste
42.18generated from the production, processing, and marketing of agricultural products, forest
42.19products, and other renewable resources.

42.20    Sec. 15. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
42.21subdivision to read:
42.22    Subd. 2d. Biobutanol facility. "Biobutanol facility" means a facility at which
42.23biobutanol is produced.

42.24    Sec. 16. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
42.25subdivision to read:
42.26    Subd. 9a. Quarterly. "Quarterly" means any of the following three-month intervals
42.27in a calendar year: January through March, April through June, July through September,
42.28or October through December.

42.29    Sec. 17. Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is
42.30amended to read:
43.1    Subd. 10. Renewable chemical. "Renewable chemical" means a chemical with
43.2biobased content as defined in section 41A.105, subdivision 1a.

43.3    Sec. 18. Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is
43.4amended to read:
43.5    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
43.6source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
43.7less from the state border, raw materials may be sourced from within a 100-mile radius.
43.8Raw materials must be from agricultural or forestry sources or from solid waste. The
43.9facility must be located in Minnesota, must begin production at a specific location by June
43.1030, 2025, and must not begin operating above 95,000 23,750 MMbtu of annual quarterly
43.11biofuel production before July 1, 2015. Eligible facilities include existing companies and
43.12facilities that are adding advanced biofuel production capacity, or retrofitting existing
43.13capacity, as well as new companies and facilities. Production of conventional corn ethanol
43.14and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must
43.15produce at least 95,000 23,750 MMbtu a year of biofuel quarterly.
43.16(b) No payments shall be made for advanced biofuel production that occurs after
43.17June 30, 2035, for those eligible biofuel producers under paragraph (a).
43.18(c) An eligible producer of advanced biofuel shall not transfer the producer's
43.19eligibility for payments under this section to an advanced biofuel facility at a different
43.20location.
43.21(d) A producer that ceases production for any reason is ineligible to receive
43.22payments under this section until the producer resumes production.
43.23(e) Renewable chemical production for which payment has been received under
43.24section 41A.17, and biomass thermal production for which payment has been received
43.25under section 41A.18, are not eligible for payment under this section.
43.26(f) Biobutanol is eligible under this section.

43.27    Sec. 19. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is
43.28amended to read:
43.29    Subdivision 1. Eligibility. (a) A facility eligible for payment under this program
43.30must source at least 80 percent biobased content, as defined in section 41A.105,
43.31subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
43.32state border, biobased content must be sourced from within a 100-mile radius. Biobased
43.33content must be from agricultural or forestry sources or from solid waste. The facility must
43.34be located in Minnesota, must begin production at a specific location by June 30, 2025, and
44.1must not begin production of 3,000,000 750,000 pounds of chemicals annually quarterly
44.2before January 1, 2015. Eligible facilities include existing companies and facilities that are
44.3adding production capacity, or retrofitting existing capacity, as well as new companies and
44.4facilities. Eligible renewable chemical facilities must produce at least 3,000,000 750,000
44.5pounds per year of renewable chemicals quarterly. Renewable chemicals produced
44.6through processes that are fully commercial before January 1, 2000, are not eligible.
44.7(b) No payments shall be made for renewable chemical production that occurs after
44.8June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
44.9(c) An eligible producer of renewable chemicals shall not transfer the producer's
44.10eligibility for payments under this section to a renewable chemical facility at a different
44.11location.
44.12(d) A producer that ceases production for any reason is ineligible to receive
44.13payments under this section until the producer resumes production.
44.14(e) Advanced biofuel production for which payment has been received under section
44.1541A.16 , and biomass thermal production for which payment has been received under
44.16section 41A.18, are not eligible for payment under this section.

44.17    Sec. 20. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is
44.18amended to read:
44.19    Subd. 2. Payment amounts; bonus; limits. (a) The commissioner shall make
44.20payments to eligible producers of renewable chemicals located in the state. The amount of
44.21the payment for each producer's annual production is $0.03 per pound of sugar-derived
44.22renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
44.23cellulosic-derived renewable chemical produced at a specific location for ten years after
44.24the start of production.
44.25(b) An eligible facility producing renewable chemicals using agricultural cellulosic
44.26biomass is eligible for a 20 percent bonus payment for each MMbtu pound produced from
44.27agricultural biomass that is derived from perennial crop or cover crop biomass.
44.28(c) Total payments under this section to an eligible renewable chemical producer in
44.29a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
44.30chemical production. Total payments under this section to all eligible renewable chemical
44.31producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
44.32renewable chemical production. The commissioner shall award payments on a first-come,
44.33first-served basis within the limits of available funding.
44.34(d) For purposes of this section, an entity that holds a controlling interest in more
44.35than one renewable chemical production facility is considered a single eligible producer.

45.1    Sec. 21. Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is
45.2amended to read:
45.3    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
45.4source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
45.5less from the state border, raw materials should be sourced from within a 100-mile radius.
45.6Raw materials must be from agricultural or forestry sources. The facility must be located
45.7in Minnesota, must have begun production at a specific location by June 30, 2025, and
45.8must not begin before July 1, 2015. Eligible facilities include existing companies and
45.9facilities that are adding production capacity, or retrofitting existing capacity, as well as
45.10new companies and facilities. Eligible biomass thermal production facilities must produce
45.11at least 1,000 250 MMbtu per year of biomass thermal quarterly.
45.12(b) No payments shall be made for biomass thermal production that occurs after June
45.1330, 2035, for those eligible biomass thermal producers under paragraph (a).
45.14(c) An eligible producer of biomass thermal production shall not transfer the
45.15producer's eligibility for payments under this section to a biomass thermal production
45.16facility at a different location.
45.17(d) A producer that ceases production for any reason is ineligible to receive
45.18payments under this section until the producer resumes production.
45.19(e) Biofuel production for which payment has been received under section 41A.16,
45.20and renewable chemical production for which payment has been received under section
45.2141A.17 , are not eligible for payment under this section.

45.22    Sec. 22. [41A.20] SIDING PRODUCTION INCENTIVE.
45.23    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
45.24this subdivision have the meanings given them.
45.25(b) "Commissioner" means the commissioner of agriculture.
45.26(c) "Forest resources" means raw wood logs and material primarily made up of
45.27cellulose, hemicellulose, or lignin, or a combination of those ingredients.
45.28    Subd. 2. Eligibility. (a) A facility eligible for payment under this section must
45.29source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles
45.30or less from the state border, raw materials may be sourced from within a 100-mile
45.31radius. Raw materials must be from forest resources. The facility must be located in
45.32Minnesota, must begin production at a specific location by June 30, 2025, and must not
45.33begin operating before July 1, 2017. Eligible facilities include existing companies and
45.34facilities that are adding siding production capacity, or retrofitting existing capacity, as
46.1well as new companies and facilities. Eligible siding production facilities must produce at
46.2least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year.
46.3(b) No payments shall be made for siding production that occurs after June 30, 2035,
46.4for those eligible producers under paragraph (a).
46.5(c) An eligible producer of siding shall not transfer the producer's eligibility for
46.6payments under this section to a facility at a different location.
46.7(d) A producer that ceases production for any reason is ineligible to receive
46.8payments under this section until the producer resumes production.
46.9    Subd. 3. Payment amounts; limits. (a) The commissioner shall make payments
46.10to eligible producers of siding. The amount of the payment for each eligible producer's
46.11annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of
46.12siding produced at a specific location for ten years after the start of production.
46.13(b) Total payments under this section to an eligible siding producer in a fiscal year
46.14may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch
46.15nominal basis of siding produced. Total payments under this section to all eligible siding
46.16producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding
46.17square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award
46.18payments on a first-come, first-served basis within the limits of available funding.
46.19(c) For purposes of this section, an entity that holds a controlling interest in more
46.20than one siding facility is considered a single eligible producer.
46.21    Subd. 4. Forest resources requirements. Forest resources that come from land
46.22parcels greater than 160 acres must be certified by the Forest Stewardship Council,
46.23Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from
46.24parcels of 160 acres or less and federal land must be harvested by a logger who has
46.25completed training from the Minnesota logger education program or the equivalent, and
46.26have a forest stewardship plan.
46.27    Subd. 5. Claims. (a) By the last day of October, January, April, and July, each
46.28eligible siding producer shall file a claim for payment for siding production during the
46.29preceding three calendar months. An eligible siding producer that files a claim under this
46.30subdivision shall include a statement of the eligible producer's total board feet of siding
46.31produced during the quarter covered by the claim. For each claim and statement of total
46.32board feet of siding filed under this subdivision, the board feet of siding produced must
46.33be examined by a certified public accounting firm with a valid permit to practice under
46.34chapter 326A, in accordance with Statements on Standards for Attestation Engagements
46.35established by the American Institute of Certified Public Accountants.
47.1(b) The commissioner must issue payments by November 15, February 15, May 15,
47.2and August 15. A separate payment must be made for each claim filed.
47.3    Subd. 6. Appropriation. A sum sufficient to make the payments required by this
47.4section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the
47.5general fund to the commissioner.

47.6    Sec. 23. Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a,
47.7is amended to read:
47.8    Subd. 2a. When prepared. Where there is potential for significant environmental
47.9effects resulting from any major governmental action, the action shall be preceded by a
47.10detailed environmental impact statement prepared by the responsible governmental unit.
47.11The environmental impact statement shall be an analytical rather than an encyclopedic
47.12document which describes the proposed action in detail, analyzes its significant
47.13environmental impacts, discusses appropriate alternatives to the proposed action and
47.14their impacts, and explores methods by which adverse environmental impacts of an
47.15action could be mitigated. The environmental impact statement shall also analyze those
47.16economic, employment, and sociological effects that cannot be avoided should the action
47.17be implemented. To ensure its use in the decision-making process, the environmental
47.18impact statement shall be prepared as early as practical in the formulation of an action.
47.19    (a) The board shall by rule establish categories of actions for which environmental
47.20impact statements and for which environmental assessment worksheets shall be prepared
47.21as well as categories of actions for which no environmental review is required under this
47.22section. A mandatory environmental assessment worksheet shall not be required for the
47.23expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
47.24(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
47.25biobutanol facility as defined in section 41A.105 41A.15, subdivision 1a 2d, based on
47.26the capacity of the expanded or converted facility to produce alcohol fuel, but must be
47.27required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other
47.28categories of actions for which environmental assessment worksheets must be prepared.
47.29The responsible governmental unit for an ethanol plant or biobutanol facility project for
47.30which an environmental assessment worksheet is prepared shall be the state agency with
47.31the greatest responsibility for supervising or approving the project as a whole.
47.32A mandatory environmental impact statement shall not be required for a facility
47.33or plant located outside the seven-county metropolitan area that produces less than
47.34125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less
47.35than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as
48.1defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined
48.2in section 41A.105 41A.15, subdivision 1a, clause (1) 2d; or a cellulosic biofuel facility.
48.3A facility or plant that only uses a cellulosic feedstock to produce chemical products for
48.4use by another facility as a feedstock shall not be considered a fuel conversion facility as
48.5used in rules adopted under this chapter.
48.6    (b) The responsible governmental unit shall promptly publish notice of the
48.7completion of an environmental assessment worksheet by publishing the notice in at least
48.8one newspaper of general circulation in the geographic area where the project is proposed,
48.9by posting the notice on a Web site that has been designated as the official publication site
48.10for publication of proceedings, public notices, and summaries of a political subdivision in
48.11which the project is proposed, or in any other manner determined by the board and shall
48.12provide copies of the environmental assessment worksheet to the board and its member
48.13agencies. Comments on the need for an environmental impact statement may be submitted
48.14to the responsible governmental unit during a 30-day period following publication of the
48.15notice that an environmental assessment worksheet has been completed. The responsible
48.16governmental unit's decision on the need for an environmental impact statement shall be
48.17based on the environmental assessment worksheet and the comments received during the
48.18comment period, and shall be made within 15 days after the close of the comment period.
48.19The board's chair may extend the 15-day period by not more than 15 additional days upon
48.20the request of the responsible governmental unit.
48.21    (c) An environmental assessment worksheet shall also be prepared for a proposed
48.22action whenever material evidence accompanying a petition by not less than 100
48.23individuals who reside or own property in the state, submitted before the proposed
48.24project has received final approval by the appropriate governmental units, demonstrates
48.25that, because of the nature or location of a proposed action, there may be potential for
48.26significant environmental effects. Petitions requesting the preparation of an environmental
48.27assessment worksheet shall be submitted to the board. The chair of the board shall
48.28determine the appropriate responsible governmental unit and forward the petition to it.
48.29A decision on the need for an environmental assessment worksheet shall be made by
48.30the responsible governmental unit within 15 days after the petition is received by the
48.31responsible governmental unit. The board's chair may extend the 15-day period by not
48.32more than 15 additional days upon request of the responsible governmental unit.
48.33    (d) Except in an environmentally sensitive location where Minnesota Rules, part
48.344410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
48.35review under this chapter and rules of the board, if:
48.36    (1) the proposed action is:
49.1    (i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
49.2    (ii) an expansion of an existing animal feedlot facility with a total cumulative
49.3capacity of less than 1,000 animal units;
49.4    (2) the application for the animal feedlot facility includes a written commitment by
49.5the proposer to design, construct, and operate the facility in full compliance with Pollution
49.6Control Agency feedlot rules; and
49.7    (3) the county board holds a public meeting for citizen input at least ten business
49.8days prior to the Pollution Control Agency or county issuing a feedlot permit for the
49.9animal feedlot facility unless another public meeting for citizen input has been held with
49.10regard to the feedlot facility to be permitted. The exemption in this paragraph is in
49.11addition to other exemptions provided under other law and rules of the board.
49.12    (e) The board may, prior to final approval of a proposed project, require preparation
49.13of an environmental assessment worksheet by a responsible governmental unit selected
49.14by the board for any action where environmental review under this section has not been
49.15specifically provided for by rule or otherwise initiated.
49.16    (f) An early and open process shall be utilized to limit the scope of the environmental
49.17impact statement to a discussion of those impacts, which, because of the nature or location
49.18of the project, have the potential for significant environmental effects. The same process
49.19shall be utilized to determine the form, content and level of detail of the statement as well
49.20as the alternatives which are appropriate for consideration in the statement. In addition,
49.21the permits which will be required for the proposed action shall be identified during the
49.22scoping process. Further, the process shall identify those permits for which information
49.23will be developed concurrently with the environmental impact statement. The board
49.24shall provide in its rules for the expeditious completion of the scoping process. The
49.25determinations reached in the process shall be incorporated into the order requiring the
49.26preparation of an environmental impact statement.
49.27    (g) The responsible governmental unit shall, to the extent practicable, avoid
49.28duplication and ensure coordination between state and federal environmental review
49.29and between environmental review and environmental permitting. Whenever practical,
49.30information needed by a governmental unit for making final decisions on permits
49.31or other actions required for a proposed project shall be developed in conjunction
49.32with the preparation of an environmental impact statement. When an environmental
49.33impact statement is prepared for a project requiring multiple permits for which two or
49.34more agencies' decision processes include either mandatory or discretionary hearings
49.35before a hearing officer prior to the agencies' decision on the permit, the agencies
49.36may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
50.1consolidated hearing process if requested by the proposer. All agencies having jurisdiction
50.2over a permit that is included in the consolidated hearing shall participate. The responsible
50.3governmental unit shall establish appropriate procedures for the consolidated hearing
50.4process, including procedures to ensure that the consolidated hearing process is consistent
50.5with the applicable requirements for each permit regarding the rights and duties of parties to
50.6the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.
50.7    (h) An environmental impact statement shall be prepared and its adequacy
50.8determined within 280 days after notice of its preparation unless the time is extended by
50.9consent of the parties or by the governor for good cause. The responsible governmental
50.10unit shall determine the adequacy of an environmental impact statement, unless within 60
50.11days after notice is published that an environmental impact statement will be prepared,
50.12the board chooses to determine the adequacy of an environmental impact statement. If an
50.13environmental impact statement is found to be inadequate, the responsible governmental
50.14unit shall have 60 days to prepare an adequate environmental impact statement.
50.15    (i) The proposer of a specific action may include in the information submitted to the
50.16responsible governmental unit a preliminary draft environmental impact statement under
50.17this section on that action for review, modification, and determination of completeness and
50.18adequacy by the responsible governmental unit. A preliminary draft environmental impact
50.19statement prepared by the project proposer and submitted to the responsible governmental
50.20unit shall identify or include as an appendix all studies and other sources of information
50.21used to substantiate the analysis contained in the preliminary draft environmental impact
50.22statement. The responsible governmental unit shall require additional studies, if needed,
50.23and obtain from the project proposer all additional studies and information necessary for
50.24the responsible governmental unit to perform its responsibility to review, modify, and
50.25determine the completeness and adequacy of the environmental impact statement.

50.26    Sec. 24. Minnesota Statutes 2015 Supplement, section 583.215, is amended to read:
50.27583.215 EXPIRATION.
50.28Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
50.29to 583.32, expire June 30, 2016 2018.
50.30EFFECTIVE DATE.This section is effective the day following final enactment.

50.31    Sec. 25. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 2,
50.32is amended to read:
50.33
Subd. 2.Protection Services
16,452,000
16,402,000
51.1
Appropriations by Fund
51.2
2016
2017
51.3
General
15,874,000
15,824,000
51.4
Agricultural
190,000
190,000
51.5
Remediation
388,000
388,000
51.6$25,000 the first year and $25,000 the second
51.7year are to develop and maintain cottage
51.8food license exemption outreach and training
51.9materials.
51.10$75,000 the first year is for the commissioner,
51.11in consultation with the Northeast Regional
51.12Corrections Center and the United Food
51.13and Commercial Workers, to study and
51.14provide recommendations for upgrading the
51.15existing processing facility on the campus of
51.16the Northeast Regional Corrections Center
51.17into a USDA-certified food processing
51.18facility. The commissioner shall report these
51.19recommendations to the chairs of the house
51.20of representatives and senate committees
51.21with jurisdiction over agriculture finance by
51.22March 15, 2016.
51.23$75,000 the second year is for a coordinator
51.24for to coordinate the correctional facility
51.25vocational training pilot program and to assist
51.26entities that have explored the feasibility of
51.27establishing a USDA-certified or state "equal
51.28to" food processing facility within 30 miles of
51.29the Northeast Regional Corrections Center.
51.30$388,000 the first year and $388,000 the
51.31second year are from the remediation fund
51.32for administrative funding for the voluntary
51.33cleanup program.
51.34$225,000 the first year and $175,000
51.35the second year are for compensation
52.1for destroyed or crippled animals under
52.2Minnesota Statutes, section 3.737. This
52.3appropriation may be spent to compensate
52.4for animals that were destroyed or crippled
52.5during fiscal years 2014 and 2015. If the
52.6amount in the first year is insufficient, the
52.7amount in the second year is available in the
52.8first year.
52.9$125,000 the first year and $125,000 the
52.10second year are for compensation for crop
52.11damage under Minnesota Statutes, section
52.123.7371 . If the amount in the first year is
52.13insufficient, the amount in the second year is
52.14available in the first year.
52.15If the commissioner determines that claims
52.16made under Minnesota Statutes, section
52.173.737 or 3.7371, are unusually high, amounts
52.18appropriated for either program may be
52.19transferred to the appropriation for the other
52.20program.
52.21$70,000 the first year and $70,000 the second
52.22year are for additional cannery inspections.
52.23$100,000 the first year and $100,000 the
52.24second year are for increased oversight of
52.25delegated local health boards.
52.26$100,000 the first year and $100,000 the
52.27second year are to decrease the turnaround
52.28time for retail food handler plan reviews.
52.29$1,024,000 the first year and $1,024,000 the
52.30second year are to streamline the retail food
52.31safety regulatory and licensing experience
52.32for regulated businesses and to decrease the
52.33inspection delinquency rate.
53.1$1,350,000 the first year and $1,350,000 the
53.2second year are for additional inspections of
53.3food manufacturers and wholesalers.
53.4$150,000 the first year and $150,000 the
53.5second year are for additional funding for
53.6dairy inspection services.
53.7$150,000 the first year and $150,000 the
53.8second year are for additional funding for
53.9laboratory services operations.
53.10$250,000 the first year and $250,000
53.11the second year are for additional meat
53.12inspection services, including inspections
53.13provided under the correctional facility
53.14vocational training pilot program.
53.15Notwithstanding Minnesota Statutes, section
53.1618B.05 , $90,000 the first year and $90,000
53.17the second year are from the pesticide
53.18regulatory account in the agricultural fund
53.19for an increase in the operating budget for
53.20the Laboratory Services Division.
53.21$100,000 the first year and $100,000 the
53.22second year are from the pesticide regulatory
53.23account in the agricultural fund to update
53.24and modify applicator education and training
53.25materials.

53.26    Sec. 26. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
53.27is amended to read:
53.28
53.29
Subd. 4.Agriculture, Bioenergy, and
Bioproduct Advancement
14,993,000
19,010,000
53.30$4,483,000 the first year and $8,500,000 the
53.31second year are for transfer to the agriculture
53.32research, education, extension, and
53.33technology transfer account under Minnesota
54.1Statutes, section 41A.14, subdivision 3.
54.2The transfer in this paragraph includes
54.3money for plant breeders at the University
54.4of Minnesota for wild rice, potatoes, and
54.5grapes. Of these amounts, at least $600,000
54.6each year is for agriculture rapid response
54.7the Minnesota Agricultural Experiment
54.8Station's Agriculture Rapid Response Fund
54.9under Minnesota Statutes, section 41A.14,
54.10subdivision 1
, clause (2). Of the amount
54.11appropriated in this paragraph, $1,000,000
54.12each year is for transfer to the Board of
54.13Regents of the University of Minnesota for
54.14research to determine (1) what is causing
54.15avian influenza, (2) why some fowl are more
54.16susceptible, and (3) prevention measures that
54.17can be taken. Of the amount appropriated
54.18in this paragraph, $2,000,000 each year
54.19is for grants to the Minnesota Agriculture
54.20Education Leadership Council to enhance
54.21agricultural education with priority given
54.22to Farm Business Management challenge
54.23grants. The commissioner shall transfer the
54.24remaining grant funds in this appropriation
54.25each year to the Board of Regents of the
54.26University of Minnesota for purposes of
54.27Minnesota Statutes, section 41A.14.
54.28To the extent practicable, funds expended
54.29under Minnesota Statutes, section 41A.14,
54.30subdivision 1
, clauses (1) and (2), must
54.31supplement and not supplant existing sources
54.32and levels of funding. The commissioner may
54.33use up to 4.5 percent of this appropriation
54.34for costs incurred to administer the program.
54.35Any unencumbered balance does not cancel
55.1at the end of the first year and is available for
55.2the second year.
55.3$10,235,000 the first year and $10,235,000
55.4the second year are for the agricultural
55.5growth, research, and innovation program
55.6in Minnesota Statutes, section 41A.12. No
55.7later than February 1, 2016, and February
55.81, 2017, the commissioner must report to
55.9the legislative committees with jurisdiction
55.10over agriculture policy and finance regarding
55.11the commissioner's accomplishments
55.12and anticipated accomplishments in
55.13the following areas: facilitating the
55.14start-up, modernization, or expansion of
55.15livestock operations including beginning
55.16and transitioning livestock operations;
55.17developing new markets for Minnesota
55.18farmers by providing more fruits, vegetables,
55.19meat, grain, and dairy for Minnesota school
55.20children; assisting value-added agricultural
55.21businesses to begin or expand, access new
55.22markets, or diversify products; developing
55.23urban agriculture; facilitating the start-up,
55.24modernization, or expansion of other
55.25beginning and transitioning farms including
55.26loans under Minnesota Statutes, section
55.2741B.056 ; sustainable agriculture on farm
55.28research and demonstration; development or
55.29expansion of food hubs and other alternative
55.30community-based food distribution systems;
55.31and research on bioenergy, biobased content,
55.32or biobased formulated products and other
55.33renewable energy development. The
55.34commissioner may use up to 4.5 percent
55.35of this appropriation for costs incurred to
55.36administer the program. Any unencumbered
56.1balance does not cancel at the end of the first
56.2year and is available for the second year.
56.3Notwithstanding Minnesota Statutes, section
56.416A.28 , the appropriations encumbered
56.5under contract on or before June 30, 2017, for
56.6agricultural growth, research, and innovation
56.7grants are available until June 30, 2019.
56.8The commissioner may use funds
56.9appropriated for the agricultural growth,
56.10research, and innovation program as provided
56.11in this paragraph. The commissioner may
56.12award grants to owners of Minnesota
56.13facilities producing bioenergy, biobased
56.14content, or a biobased formulated product;
56.15to organizations that provide for on-station,
56.16on-farm field scale research and outreach to
56.17develop and test the agronomic and economic
56.18requirements of diverse strands of prairie
56.19plants and other perennials for bioenergy
56.20systems; or to certain nongovernmental
56.21entities. For the purposes of this paragraph,
56.22"bioenergy" includes transportation fuels
56.23derived from cellulosic material, as well as
56.24the generation of energy for commercial heat,
56.25industrial process heat, or electrical power
56.26from cellulosic materials via gasification or
56.27other processes. Grants are limited to 50
56.28percent of the cost of research, technical
56.29assistance, or equipment related to bioenergy,
56.30biobased content, or biobased formulated
56.31product production or $500,000, whichever
56.32is less. Grants to nongovernmental entities
56.33for the development of business plans and
56.34structures related to community ownership
56.35of eligible bioenergy facilities together may
56.36not exceed $150,000. The commissioner
57.1shall make a good-faith effort to select
57.2projects that have merit and, when taken
57.3together, represent a variety of bioenergy
57.4technologies, biomass feedstocks, and
57.5geographic regions of the state. Projects
57.6must have a qualified engineer provide
57.7certification on the technology and fuel
57.8source. Grantees must provide reports at the
57.9request of the commissioner.
57.10Of the amount appropriated for the
57.11agricultural growth, research, and innovation
57.12program in this subdivision, $1,000,000 the
57.13first year and $1,000,000 the second year
57.14are for distribution in equal amounts to each
57.15of the state's county fairs to preserve and
57.16promote Minnesota agriculture.
57.17Of the amount appropriated for the
57.18agricultural growth, research, and innovation
57.19program in this subdivision, $500,000 in
57.20fiscal year 2016 and $1,500,000 in fiscal
57.21year 2017 are for incentive payments
57.22under Minnesota Statutes, sections 41A.16,
57.2341A.17 , and 41A.18. If the appropriation
57.24exceeds the total amount for which all
57.25producers are eligible in a fiscal year, the
57.26balance of the appropriation is available
57.27to the commissioner for the agricultural
57.28growth, research, and innovation program.
57.29Notwithstanding Minnesota Statutes,
57.30section 16A.28, the first year appropriation
57.31is available until June 30, 2017, and the
57.32second year appropriation is available until
57.33June 30, 2018. The commissioner may use
57.34up to 4.5 percent of the appropriation for
57.35administration of the incentive payment
57.36programs.
58.1Of the amount appropriated for the
58.2agricultural growth, research, and innovation
58.3program in this subdivision, $250,000
58.4the first year is for grants to communities
58.5to develop or expand food hubs and
58.6other alternative community-based food
58.7distribution systems. Of this amount,
58.8$50,000 is for the commissioner to consult
58.9with existing food hubs, alternative
58.10community-based food distribution systems,
58.11and University of Minnesota Extension
58.12to identify best practices for use by other
58.13Minnesota communities. No later than
58.14December 15, 2015, the commissioner must
58.15report to the legislative committees with
58.16jurisdiction over agriculture and health
58.17regarding the status of emerging alternative
58.18community-based food distribution systems
58.19in the state along with recommendations
58.20to eliminate any barriers to success. Any
58.21unencumbered balance does not cancel at the
58.22end of the first year and is available for the
58.23second year. This is a onetime appropriation.
58.24$250,000 the first year and $250,000 the
58.25second year are for grants that enable
58.26retail petroleum dispensers to dispense
58.27biofuels to the public in accordance with the
58.28biofuel replacement goals established under
58.29Minnesota Statutes, section 239.7911. A
58.30retail petroleum dispenser selling petroleum
58.31for use in spark ignition engines for vehicle
58.32model years after 2000 is eligible for grant
58.33money under this paragraph if the retail
58.34petroleum dispenser has no more than 15
58.35retail petroleum dispensing sites and each
58.36site is located in Minnesota. The grant
59.1money received under this paragraph must
59.2be used for the installation of appropriate
59.3technology that uses fuel dispensing
59.4equipment appropriate for at least one fuel
59.5dispensing site to dispense gasoline that is
59.6blended with 15 percent of agriculturally
59.7derived, denatured ethanol, by volume, and
59.8appropriate technical assistance related to
59.9the installation. A grant award must not
59.10exceed 85 percent of the cost of the technical
59.11assistance and appropriate technology,
59.12including remetering of and retrofits for
59.13retail petroleum dispensers and replacement
59.14of petroleum dispenser projects. The
59.15commissioner may use up to $35,000 of this
59.16appropriation for administrative expenses.
59.17The commissioner shall cooperate with
59.18biofuel stakeholders in the implementation
59.19of the grant program. The commissioner
59.20must report to the legislative committees
59.21with jurisdiction over agriculture policy and
59.22finance by February 1 each year, detailing
59.23the number of grants awarded under this
59.24paragraph and the projected effect of the grant
59.25program on meeting the biofuel replacement
59.26goals under Minnesota Statutes, section
59.27239.7911 . These are onetime appropriations.
59.28$25,000 the first year and $25,000 the second
59.29year are for grants to the Southern Minnesota
59.30Initiative Foundation to promote local foods
59.31through an annual event that raises public
59.32awareness of local foods and connects local
59.33food producers and processors with potential
59.34buyers.
59.35EFFECTIVE DATE.This section is effective the day following final enactment.

60.1    Sec. 27. Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to
60.2read:
60.3    Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; EMERGENCY
60.4PREPAREDNESS; APPROPRIATIONS AND TRANSFERS.
60.5(a) $3,619,000 $519,000 is appropriated from the general fund in fiscal year 2016 to
60.6the commissioner of agriculture for avian influenza emergency response activities. The
60.7commissioner may use money appropriated under this paragraph to purchase necessary
60.8euthanasia and composting equipment and to reimburse costs incurred by local units of
60.9government directly related to avian influenza emergency response activities that are not
60.10eligible for federal reimbursement. This appropriation is available the day following final
60.11enactment until June 30, 2017.
60.12(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
60.13Board of Animal Health for avian influenza emergency response activities. The Board
60.14may use money appropriated under this paragraph to purchase necessary euthanasia and
60.15composting equipment. any animal disease emergency response or planning activity,
60.16including but not limited to:
60.17(1) the retention of staff trained in disease response;
60.18(2) costs associated with the relocation and expansion of the Minnesota Poultry
60.19Testing Laboratory;
60.20(3) the identification of risk factors for disease transmission; and
60.21(4) the implementation of strategies to prevent or reduce the risk of disease
60.22introduction and transmission.
60.23This appropriation is available the day following final enactment until June 30, 2017 2019.
60.24(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
60.25commissioner of health for avian influenza emergency response activities. This
60.26appropriation is available the day following final enactment until June 30, 2017.
60.27(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
60.28commissioner of natural resources for sampling wild animals to detect and monitor the
60.29avian influenza virus. This appropriation may also be used to conduct serology sampling,
60.30in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
60.31Chair in Avian Health, from birds within a control zone and outside of a control zone.
60.32This appropriation is available the day following final enactment until June 30, 2017.
60.33(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
60.34commissioner of public safety to operate the State Emergency Operation Center in
60.35coordination with the statewide avian influenza response activities. Appropriations
60.36under this paragraph may also be used to support a staff person at the state's agricultural
61.1incident command post in Willmar. This appropriation is available the day following final
61.2enactment until June 30, 2017.
61.3(f) The commissioner of management and budget may transfer unexpended balances
61.4from the appropriations in this section to any state agency for operating expenses related
61.5to avian influenza emergency response activities. The commissioner of management and
61.6budget must report each transfer to the chairs and ranking minority members of the senate
61.7Committee on Finance and the house of representatives Committee on Ways and Means.
61.8(g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
61.9section 17, no later than September 30, 2015, the commissioner of management and
61.10budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
61.11fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
61.12subdivision 6
. This amount is available for avian influenza emergency response eligible
61.13activities as provided in Laws 2015, chapter 65, article 1, section 18, as amended.
61.14EFFECTIVE DATE.This section is effective the day following final enactment.

61.15    Sec. 28. GOOD FOOD ACCESS ADVISORY COMMITTEE.
61.16The commissioner of agriculture and designating authorities must make their initial
61.17appointments and designations by July 1, 2016, for the Good Food Access Advisory
61.18Committee established under Minnesota Statutes, section 17.1018. The commissioner of
61.19agriculture or the commissioner's designee must convene the first meeting of the Good
61.20Food Access Advisory Committee by September 1, 2016.

61.21    Sec. 29. FARMER-LENDER MEDIATION TASK FORCE.
61.22The commissioner of agriculture must convene an advisory task force to provide
61.23recommendations to the legislature regarding the state's Farmer-Lender Mediation Act.
61.24The task force must be comprised of 14 members, including the commissioner or the
61.25commissioner's designee, one farm advocate appointed by the commissioner who is
61.26responsible for mediating debt between farmers and lenders, one adult farm business
61.27management instructor appointed by the commissioner, and three farmers appointed by
61.28the commissioner, at least one of whom is a beginning or nontraditional farmer and at
61.29least one of whom has personal experience with the farmer-lender mediation program.
61.30The remaining membership of the task force consists of one member appointed by each
61.31of the following entities:
61.32(1) Minnesota Farm Bureau;
61.33(2) Minnesota Farmers Union;
61.34(3) Minnesota Bankers Association;
62.1(4) Independent Community Bankers of Minnesota;
62.2(5) Farm Credit Services - Minnesota State Federation;
62.3(6) Minnesota Credit Union Network;
62.4(7) Minnesota-South Dakota Equipment Dealers Association; and
62.5(8) University of Minnesota Extension.
62.6No later than February 1, 2017, the commissioner must report the task force's
62.7recommendations to the legislative committees with jurisdiction over agriculture policy
62.8and finance.
62.9EFFECTIVE DATE.This section is effective the day following final enactment.

62.10    Sec. 30. TRANSFER REQUIRED.
62.11Of the amount appropriated from the general fund to the commissioner of agriculture
62.12for transfer to the rural finance authority revolving loan account in Laws 2015, First Special
62.13Session chapter 4, article 2, section 6, the commissioner of management and budget must
62.14transfer $7,713,000 back to the general fund in fiscal year 2016. This is a onetime transfer.

62.15    Sec. 31. REPEALER.
62.16Laws 2015, First Special Session chapter 4, article 2, section 81, is repealed.
62.17EFFECTIVE DATE.This section is effective the day following final enactment.

62.18ARTICLE 3
62.19ENVIRONMENT AND NATURAL RESOURCES

62.20
Section 1. APPROPRIATIONS.
62.21The sums shown in the columns marked "Appropriations" are added to the
62.22appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
62.23agencies and for the purposes specified in this article. The appropriations are from the
62.24general fund, or another named fund, and are available for the fiscal year indicated for
62.25each purpose. The figures "2016" and "2017" used in this article mean that the addition
62.26to the appropriations listed under them are available for the fiscal year ending June 30,
62.272016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
62.28year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
62.29following final enactment.
62.30
APPROPRIATIONS
62.31
Available for the Year
62.32
Ending June 30
62.33
2016
2017

63.1
Sec. 2. POLLUTION CONTROL AGENCY
63.2
Subdivision 1.Total Appropriation
$
-0-
$
2,620,000
63.3
Appropriations by Fund
63.4
2016
2017
63.5
General
-0-
1,918,000
63.6
Environmental
-0-
702,000
63.7
Subd. 2.Water
-0-
1,038,000
63.8$437,000 the second year is from the general
63.9fund and $486,000 the second year is
63.10from the environmental fund to meet the
63.11increased demand for technical assistance
63.12and review of municipal water infrastructure
63.13projects that will be generated by increased
63.14grant funding through the Public Facilities
63.15Authority. This is a onetime appropriation
63.16and is available until June 30, 2019.
63.17$115,000 the second year is for the working
63.18lands program feasibility study and program
63.19plan. This is a onetime appropriation and is
63.20available until June 30, 2018.
63.21
Subd. 3.Land
-0-
432,000
63.22$216,000 the second year is from the
63.23general fund and $216,000 the second year
63.24is from the environmental fund to manage
63.25contaminated sediment projects at multiple
63.26sites identified in the St. Louis River
63.27remedial action plan to restore water quality
63.28in the St. Louis River area of concern. This
63.29amount is added to the base for fiscal years
63.302018, 2019, and 2020 only.
63.31
63.32
Subd. 4.Environmental Assistance and
Cross-Media
-0-
1,150,000
63.33$500,000 the second year is for SCORE
63.34block grants to counties. This amount is in
64.1addition to the amounts appropriated in Laws
64.22015, First Special Session chapter 4, article
64.33, section 2, subdivision 5. This is a onetime
64.4appropriation.
64.5$650,000 the second year is to design
64.6remedial actions and prepare bids for the
64.7Waste Disposal Engineering Landfill in the
64.8city of Andover in accordance with the
64.9closed landfill program under Minnesota
64.10Statutes, sections 115B.39 to 115B.42. This
64.11is a onetime appropriation.

64.12
Sec. 3. NATURAL RESOURCES
64.13
Subdivision 1.Total Appropriation
$
2,269,000
$
14,432,000
64.14
Appropriations by Fund
64.15
2016
2017
64.16
General
1,599,000
9,567,000
64.17
Natural Resources
-0-
4,755,000
64.18
Game and Fish
670,000
110,000
64.19The amounts that may be spent for each
64.20purpose are specified in the following
64.21subdivisions.
64.22
Subd. 2.Lands and Minerals Management
-0-
200,000
64.23$200,000 the second year is to initiate,
64.24in consultation with the school trust
64.25lands director, a valuation process
64.26and representative valuations for the
64.27compensation of school trust lands required
64.28by Minnesota Statutes, section 84.027,
64.29subdivision 18, paragraph (b). By January 15,
64.302017, the commissioner must submit a report
64.31to the chairs and ranking minority members
64.32of the house of representatives and senate
64.33committees and divisions with jurisdiction
64.34over environment and natural resources
65.1and education policy and finance on the
65.2Department of Natural Resources' progress in
65.3developing a valuation process, a description
65.4of the process to identify representative
65.5sample valuations, and the results of the
65.6representative valuations of school trust
65.7lands identified for compensation. This is a
65.8onetime appropriation.
65.9
Subd. 3.Ecological and Water Resources
-0-
612,000
65.10$187,000 the second year is for a grant to the
65.11Middle-Snake-Tamarac Rivers Watershed
65.12District to match equal funds from the North
65.13Dakota State Water Commission and North
65.14Dakota water boards to conduct hydraulic
65.15modeling of alternative floodway options
65.16for the reach including and upstream and
65.17downstream of the Minnesota and North
65.18Dakota agricultural levies in the vicinity
65.19of Oslo, Minnesota. The modeling must
65.20include evaluating removal of floodway
65.21flow obstructions, channel obstructions,
65.22transportation access, and equalization of
65.23agricultural levy protection. The project must
65.24be conducted in partnership with the border
65.25township association group representing four
65.26Minnesota townships and the city of Oslo
65.27and the three adjacent townships in North
65.28Dakota. This is a onetime appropriation and
65.29is available until June 30, 2018.
65.30$200,000 the second year is for a grant to
65.31the Koronis Lake Association for purposes
65.32of removing and preventing aquatic invasive
65.33species. This is a onetime appropriation.
65.34$225,000 the second year is from the water
65.35management account in the natural resources
66.1fund for water appropriation monitoring,
66.2modeling, and reporting for the Cold Spring
66.3Creek area as required under this act. This
66.4is a onetime appropriation and is available
66.5until June 30, 2022.
66.6
Subd. 4.Forest Management
-0-
3,500,000
66.7$2,500,000 the second year is for private
66.8forest management assistance. The agency
66.9base is increased by $2,000,000 in fiscal year
66.102018 and thereafter.
66.11$1,000,000 the second year is from the
66.12forest management investment account in the
66.13natural resources fund for reforestation on
66.14state lands. This is a onetime appropriation.
66.15
Subd. 5.Parks and Trails Management
-0-
6,459,000
66.16
Appropriations by Fund
66.17
2016
2017
66.18
General
-0-
2,929,000
66.19
Natural Resources
-0-
3,530,000
66.20$2,800,000 the second year is a onetime
66.21appropriation.
66.22$2,300,000 the second year is from the state
66.23parks account in the natural resources fund.
66.24Of this amount, $1,300,000 is onetime,
66.25of which $1,150,000 is for strategic park
66.26acquisition.
66.27$20,000 the second year is from the natural
66.28resources fund to design and erect signs
66.29marking the David Dill trail designated in
66.30this act. Of this amount, $10,000 is from the
66.31snowmobile trails and enforcement account
66.32and $10,000 is from the all-terrain vehicle
66.33account. This is a onetime appropriation.
67.1$100,000 the second year is for the
67.2improvement of the infrastructure for
67.3sanitary sewer service at the Woodenfrog
67.4Campground in Kabetogama State Forest.
67.5This is a onetime appropriation.
67.6$29,000 the second year is for computer
67.7programming related to the transfer-on-death
67.8title changes for watercraft. This is a onetime
67.9appropriation.
67.10$210,000 the first year is from the water
67.11recreation account in the natural resources
67.12fund for implementation of Minnesota
67.13Statutes, section 86B.532, established in this
67.14act. This is a onetime appropriation. The
67.15commissioner of natural resources shall seek
67.16federal and other nonstate funds to reimburse
67.17the department for the initial costs of
67.18producing and distributing carbon monoxide
67.19boat warning labels. All amounts collected
67.20under this paragraph shall be deposited into
67.21the water recreation account.
67.22$1,000,000 the second year is from the
67.23natural resources fund for a grant to Lake
67.24County for construction, including bridges,
67.25of the Prospectors ATV Trail System
67.26linking the communities of Ely, Babbitt,
67.27Embarrass, and Tower; Bear Head Lake
67.28and Lake Vermilion-Soudan Underground
67.29Mine State Parks; the Taconite State Trail;
67.30and the Lake County Regional ATV Trail
67.31System. Of this amount, $900,000 is from
67.32the all-terrain vehicle account, $50,000 is
67.33from the off-highway motorcycle account,
67.34and $50,000 is from the off-road vehicle
67.35account. This is a onetime appropriation.
68.1
Subd. 6.Fish and Wildlife Management
-0-
50,000
68.2$50,000 the second year is from the game
68.3and fish fund for fish virus surveillance,
68.4including fish testing in high-risk waters used
68.5for bait production, to ensure the availability
68.6of safe bait. This is a onetime appropriation.
68.7
Subd. 7.Enforcement
670,000
-0-
68.8$670,000 the first year is from the game and
68.9fish fund for aviation services. This is a
68.10onetime appropriation.
68.11
Subd. 8.Operations Support
1,599,000
3,611,000
68.12
Appropriations by Fund
68.13
2016
2017
68.14
General
1,599,000
3,551,000
68.15
Game and Fish
-0-
60,000
68.16$1,599,000 the first year and $2,801,000
68.17the second year are for legal costs related
68.18to the NorthMet mining project. Of this
68.19amount, up to $1,289,000 the second year
68.20may be transferred to other agencies for legal
68.21costs associated with the NorthMet mining
68.22project. This is a onetime appropriation and
68.23is available until June 30, 2019.
68.24$750,000 the second year is for a grant to
68.25Wolf Ridge Environmental Learning Center
68.26to construct a new dormitory, renovate an old
68.27dormitory, construct a maintenance building,
68.28and construct a small classroom building
68.29with parking. The grant is not available
68.30until the commissioner of management
68.31and budget determines that an amount
68.32sufficient to complete the project is available
68.33from nonstate sources. This is a onetime
69.1appropriation and is available until June 30,
69.22019.
69.3$60,000 the second year is from the
69.4heritage enhancement account for the
69.5department's Southeast Asian unit to
69.6conduct outreach efforts to the Southeast
69.7Asian community in Minnesota, including
69.8outreach efforts to refugees from Burma, to
69.9encourage participation in outdoor education
69.10opportunities and activities. This is a onetime
69.11appropriation.

69.12
69.13
Sec. 4. BOARD OF WATER AND SOIL
RESOURCES
$
-0-
$
479,000
69.14$479,000 the second year is for the
69.15development of a detailed plan to implement
69.16a working lands watershed restoration
69.17program to incentivise the establishment and
69.18maintenance of perennial crops that includes
69.19the following:
69.20(1) a process for selecting pilot watersheds
69.21that are expected to result in the greatest
69.22water quality improvements and exhibit
69.23readiness to participate in the program;
69.24(2) an assessment of the quantity of
69.25agricultural land that is expected to be
69.26eligible for the program in each watershed;
69.27(3) an assessment of landowner interest in
69.28participating in the program;
69.29(4) an assessment of the contract terms and
69.30any recommendations for changes to the
69.31terms, including consideration of variable
69.32payment rates for lands of different priority
69.33or type;
70.1(5) an assessment of the opportunity to
70.2leverage federal funds through the program
70.3and recommendations on how to maximize
70.4the use of federal funds for assistance to
70.5establish perennial crops;
70.6(6) an assessment of how other state
70.7programs could complement the program;
70.8(7) an estimate of water quality improvements
70.9expected to result from implementation in
70.10pilot watersheds;
70.11(8) an assessment of how to best integrate
70.12program implementation with existing
70.13conservation requirements and develop
70.14recommendations on harvest practices and
70.15timing to benefit wildlife production;
70.16(9) an assessment of the potential viability
70.17and water quality benefit of cover crops used
70.18in biomass processing facilities;
70.19(10) a timeline for implementation,
70.20coordinated to the extent possible with
70.21proposed biomass processing facilities; and
70.22(11) a projection of funding sources needed
70.23to complete implementation.
70.24This is a onetime appropriation and is
70.25available until June 30, 2018.
70.26The board shall coordinate development of
70.27the working lands watershed restoration plan
70.28with stakeholders and the commissioners
70.29of natural resources, agriculture, and the
70.30Pollution Control Agency. The board must
70.31submit an interim report by October 15,
70.322017, and the feasibility study and program
70.33plan by February 1, 2018, to the chairs and
70.34ranking minority members of the legislative
71.1committees and divisions with jurisdiction
71.2over agriculture, natural resources, and
71.3environment policy and finance and to the
71.4Clean Water Council.

71.5
Sec. 5. LEGISLATURE
$
25,000
$
-0-
71.6$25,000 the first year is from the Minnesota
71.7future resources fund to the Legislative
71.8Coordinating Commission for the Aggregate
71.9Resources Task Force established in this
71.10act. This is a onetime appropriation and is
71.11available until June 30, 2018.

71.12
Sec. 6. ADMINISTRATION
$
250,000
$
-0-
71.13$250,000 the first year is from the state forest
71.14suspense account in the permanent school
71.15fund for the school trust lands director to
71.16initiate real estate development projects
71.17on school trust lands as determined by the
71.18school trust lands director. This is a onetime
71.19appropriation.

71.20    Sec. 7. Minnesota Statutes 2014, section 17.4982, subdivision 18a, is amended to read:
71.21    Subd. 18a. Nonindigenous species. "Nonindigenous species" means a species of
71.22fish or other aquatic life that is:
71.23(1) not known to have been historically present in the state;
71.24(2) not known to be naturally occurring in a particular part of the state; or
71.25(3) listed designated by rule as a prohibited or regulated invasive species.

71.26    Sec. 8. Minnesota Statutes 2014, section 84.027, subdivision 13, is amended to read:
71.27    Subd. 13. Game and fish rules. (a) The commissioner of natural resources may
71.28adopt rules under sections 97A.0451 to 97A.0459 and this subdivision that are authorized
71.29under:
71.30(1) chapters 97A, 97B, and 97C to set open seasons and areas, to close seasons and
71.31areas, to select hunters for areas, to provide for tagging and registration of game and fish, to
71.32prohibit or allow taking of wild animals to protect a species, to prevent or control wildlife
72.1disease, to open or close bodies of water or portions of bodies of water for night bow
72.2fishing, and to prohibit or allow importation, transportation, or possession of a wild animal;
72.3(2) sections 84.093, 84.15, and 84.152 to set seasons for harvesting wild ginseng
72.4roots and wild rice and to restrict or prohibit harvesting in designated areas; and
72.5(3) section 84D.12 to list designate prohibited invasive species, regulated invasive
72.6species, and unregulated nonnative species, and to list infested waters.
72.7(b) If conditions exist that do not allow the commissioner to comply with sections
72.897A.0451 to 97A.0459, including the need to adjust season variables on an annual basis
72.9based upon current biological and harvest data, the commissioner may adopt a rule
72.10under this subdivision by submitting the rule to the attorney general for review under
72.11section 97A.0455, publishing a notice in the State Register and filing the rule with the
72.12secretary of state and the Legislative Coordinating Commission, and complying with
72.13section 97A.0459, and including a statement of the conditions and a copy of the rule in the
72.14notice. The conditions for opening a water body or portion of a water body for night bow
72.15fishing under this section may include the need to temporarily open the area to evaluate
72.16compatibility of the activity on that body of water prior to permanent rulemaking. The
72.17notice may be published after it is received from the attorney general or five business days
72.18after it is submitted to the attorney general, whichever is earlier.
72.19(c) Rules adopted under paragraph (b) are effective upon publishing in the State
72.20Register and may be effective up to seven days before publishing and filing under
72.21paragraph (b), if:
72.22(1) the commissioner of natural resources determines that an emergency exists;
72.23(2) the attorney general approves the rule; and
72.24(3) for a rule that affects more than three counties the commissioner publishes the
72.25rule once in a legal newspaper published in Minneapolis, St. Paul, and Duluth, or for a
72.26rule that affects three or fewer counties the commissioner publishes the rule once in a legal
72.27newspaper in each of the affected counties.
72.28(d) Except as provided in paragraph (e), a rule published under paragraph (c), clause
72.29(3), may not be effective earlier than seven days after publication.
72.30(e) A rule published under paragraph (c), clause (3), may be effective the day the
72.31rule is published if the commissioner gives notice and holds a public hearing on the rule
72.32within 15 days before publication.
72.33(f) The commissioner shall attempt to notify persons or groups of persons affected
72.34by rules adopted under paragraphs (b) and (c) by public announcements, posting, and
72.35other appropriate means as determined by the commissioner.
73.1(g) Notwithstanding section 97A.0458, a rule adopted under this subdivision is
73.2effective for the period stated in the notice but not longer than 18 months after the rule is
73.3effective.

73.4    Sec. 9. Minnesota Statutes 2015 Supplement, section 84.027, subdivision 13a, is
73.5amended to read:
73.6    Subd. 13a. Game and fish expedited permanent rules. (a) In addition to the
73.7authority granted in subdivision 13, the commissioner of natural resources may adopt rules
73.8under section 14.389 that are authorized under:
73.9    (1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to
73.10designate fish spawning beds or fish preserves, to select hunters or anglers for areas,
73.11to provide for registration of game or fish, to prevent or control wildlife disease, or to
73.12correct errors or omissions in rules that do not have a substantive effect on the intent or
73.13application of the original rule; or
73.14    (2) section 84D.12 to list designate prohibited invasive species, regulated invasive
73.15species, and unregulated nonnative species.
73.16(b) The commissioner of natural resources may adopt rules under section 14.389
73.17that are authorized under chapters 97A, 97B, and 97C, for purposes in addition to those
73.18listed in paragraph (a), clause (1), subject to the notice and public hearing provisions
73.19of section 14.389, subdivision 5.

73.20    Sec. 10. Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:
73.21    Subd. 2. License required; exception exemptions. (a) Except as provided in
73.22paragraph (b) this subdivision, a person may not harvest, buy, sell, transport, or possess
73.23aquatic plants without a license required under this chapter. A license shall be issued in
73.24the same manner as provided under the game and fish laws.
73.25(b) A resident under the age of 18 years may harvest wild rice without a license, if
73.26accompanied by a person with a wild rice license.
73.27(c) Tribal band members who possess a valid tribal identification card from a
73.28federally recognized tribe located in Minnesota are deemed to have a license to harvest
73.29wild rice under this section.

73.30    Sec. 11. Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:
73.31    Subd. 2. Exemptions. Registration is not required for an off-road vehicle that is:
73.32(1) owned and used by the United States, an Indian tribal government, the state,
73.33another state, or a political subdivision; or
74.1(2) registered in another state or country and has not been in this state for more than
74.230 consecutive days; or
74.3(3) operated with a valid state trail pass according to section 84.8035.
74.4EFFECTIVE DATE.This section is effective January 1, 2017.

74.5    Sec. 12. Minnesota Statutes 2014, section 84.8035, is amended to read:
74.684.8035 NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.
74.7    Subdivision 1. Pass required; fee. (a) Except as provided under paragraph (c), a
74.8nonresident person may not operate an off-road vehicle on a state or grant-in-aid off-road
74.9vehicle trail or use area unless the vehicle displays a nonresident an off-road vehicle state
74.10trail pass sticker issued according to this section. The pass must be viewable by a peace
74.11officer, a conservation officer, or an employee designated under section 84.0835.
74.12    (b) The fee for an annual pass is $20. The pass is valid from January 1 through
74.13December 31. The fee for a three-year pass is $30. The commissioner of natural resources
74.14shall issue a pass upon application and payment of the fee. Fees collected under this
74.15section, except for the issuing fee for licensing agents, shall be deposited in the state
74.16treasury and credited to the off-road vehicle account in the natural resources fund and,
74.17except for the electronic licensing system commission established by the commissioner
74.18under section 84.027, subdivision 15, must be used for grants-in-aid to counties and
74.19municipalities for off-road vehicle organizations to construct and maintain off-road
74.20vehicle trails and use areas.
74.21    (c) A nonresident An off-road vehicle state trail pass is not required for:
74.22    (1) an off-road vehicle that is owned and used by the United States, another state,
74.23or a political subdivision thereof that is exempt from registration under section 84.798,
74.24subdivision 2;
74.25    (2) a person operating an off-road vehicle only on the portion of a trail that is owned
74.26by the person or the person's spouse, child, or parent; or
74.27    (3) a nonresident person operating an off-road vehicle that is registered according
74.28to section 84.798.
74.29(d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The
74.30nonresident pass is valid from January 1 through December 31. The fee for a nonresident
74.31three-year pass is $30.
74.32(e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is
74.33valid for 30 consecutive days after the date of issuance.
75.1    Subd. 2. License agents. The commissioner may appoint agents to issue and
75.2sell nonresident off-road vehicle state trail passes. The commissioner may revoke the
75.3appointment of an agent at any time. The commissioner may adopt additional rules as
75.4provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
75.5by the commissioner for accounting and handling of passes pursuant to section 97A.485,
75.6subdivision 11
. An agent shall promptly deposit and remit all money received from the
75.7sale of the passes, exclusive of the issuing fee, to the commissioner.
75.8    Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
75.9nonresident off-road vehicle state trail passes. The commissioner shall also make the
75.10passes available through the electronic licensing system established under section 84.027,
75.11subdivision 15.
75.12    Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
75.13shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
75.14passes issued by the commissioner shall be deposited in the off-road vehicle account in the
75.15natural resources fund and retained for the operation of the electronic licensing system.
75.16    Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
75.17pass to persons whose pass is lost or destroyed using the process established under section
75.1897A.405, subdivision 3 , and rules adopted thereunder. The fee for a duplicate nonresident
75.19off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.
75.20EFFECTIVE DATE.This section is effective January 1, 2017.

75.21    Sec. 13. Minnesota Statutes 2014, section 84D.01, subdivision 2, is amended to read:
75.22    Subd. 2. Aquatic macrophyte. "Aquatic macrophyte" means macro algae or a
75.23macroscopic nonwoody plant, either a submerged, floating leafed, floating, or emergent
75.24plant that naturally grows in water.

75.25    Sec. 14. Minnesota Statutes 2014, section 84D.05, subdivision 1, is amended to read:
75.26    Subdivision 1. Prohibited activities. A person may not possess, import, purchase,
75.27sell, propagate, transport, or introduce a prohibited invasive species, except:
75.28(1) under a permit issued by the commissioner under section 84D.11;
75.29(2) in the case of purple loosestrife, as provided by sections 18.75 to 18.88;
75.30(3) under a restricted species permit issued under section 17.457;
75.31(4) when being transported to the department, or another destination as the
75.32commissioner may direct, in a sealed container for purposes of identifying the species
75.33or reporting the presence of the species;
76.1(5) when being transported for disposal as part of a harvest or control activity
76.2when specifically authorized under a permit issued by the commissioner according to
76.3section 103G.615, when being transported for disposal as specified under a commercial
76.4fishing license issued by the commissioner according to section 97A.418, 97C.801,
76.597C.811 , 97C.825, 97C.831, or 97C.835, or when being transported as specified by the
76.6commissioner;
76.7(6) when the specimen has been lawfully acquired dead and, in the case of plant
76.8species, all seeds are removed or are otherwise secured in a sealed container;
76.9(7) in the form of herbaria or other preserved specimens;
76.10(8) (6) when being removed from watercraft and equipment, or caught while angling,
76.11and immediately returned to the water from which they came; or
76.12(9) (7) as the commissioner may otherwise prescribe by rule.

76.13    Sec. 15. [84D.075] NONNATIVE SPECIES, AQUATIC PLANTS, AND
76.14AQUATIC MACROPHYTES; PARTS AND LIFE STAGE.
76.15A law relating to a nonnative species, aquatic plant, or aquatic macrophyte applies in
76.16the same manner to a part of a nonnative species, aquatic plant, or aquatic macrophyte,
76.17whether alive or dead, and to any life stage or form.

76.18    Sec. 16. Minnesota Statutes 2014, section 84D.09, subdivision 2, is amended to read:
76.19    Subd. 2. Exceptions. Unless otherwise prohibited by law, a person may transport
76.20aquatic macrophytes:
76.21    (1) that are duckweeds in the family Lemnaceae;
76.22    (2) for purposes of constructing shooting or observation blinds in amounts sufficient
76.23for that purpose, provided that the aquatic macrophytes are emergent and cut above the
76.24waterline;
76.25    (3) when legally purchased or traded by or from commercial or hobbyist sources for
76.26aquarium, wetland or lakeshore restoration, or ornamental purposes;
76.27    (4) when harvested for personal or commercial use if in a motor vehicle;
76.28    (5) to the department, or another destination as the commissioner may direct, in a
76.29sealed container for purposes of identifying a species or reporting the presence of a species;
76.30    (6) that are wild rice harvested under section 84.091;
76.31    (7) in the form of fragments of emergent aquatic macrophytes incidentally transported
76.32in or on watercraft or decoys used for waterfowl hunting during the waterfowl season; or
76.33    (8) when removing water-related equipment from waters of the state for purposes of
76.34cleaning off aquatic macrophytes before leaving a water access site.; or
77.1(9) when being transported from riparian property to a legal disposal site that is at
77.2least 100 feet from any surface water, ditch, or seasonally flooded land, provided the
77.3aquatic macrophytes are in a covered commercial vehicle specifically designed and used
77.4for hauling trash.

77.5    Sec. 17. Minnesota Statutes 2014, section 84D.10, subdivision 4, is amended to read:
77.6    Subd. 4. Persons transporting water-related equipment. (a) When leaving
77.7waters a water of the state, a person must drain water-related equipment holding water
77.8and live wells and bilges by removing the drain plug before transporting the water-related
77.9equipment off the water access site or riparian property. For the purposes of this
77.10paragraph, "transporting" includes moving water-related equipment over land between
77.11connected or unconnected water bodies, but does not include moving water-related
77.12equipment within the immediate area required for loading and preparing the water-related
77.13equipment for transport over land.
77.14    (b) Drain plugs, bailers, valves, or other devices used to control the draining of water
77.15from ballast tanks, bilges, and live wells must be removed or opened while transporting
77.16water-related equipment.
77.17    (c) Emergency response vehicles and equipment may be transported on a public road
77.18with the drain plug or other similar device replaced only after all water has been drained
77.19from the equipment upon leaving the water body.
77.20    (d) Portable bait containers used by licensed aquatic farms, portable bait containers
77.21when fishing through the ice except on waters listed infested for viral hemorrhagic
77.22septicemia, and marine sanitary systems are exempt from this subdivision.
77.23    (e) A person must not dispose of bait in waters of the state.
77.24(f) A boat lift, dock, swim raft, or associated equipment that has been removed
77.25from any water body may not be placed in another water body until a minimum of 21
77.26days have passed.
77.27(g) A person who transports water that is appropriated from noninfested surface
77.28water bodies and that is transported by a commercial vehicle, excluding watercraft, or
77.29commercial trailer, which vehicle or trailer is specifically designed and used for water
77.30hauling, is exempt from paragraphs (a) and (b), provided that the person does not discharge
77.31the transported water to other surface waters or within 100 feet of a surface water body.
77.32(h) A person transporting water from noninfested surface water bodies for
77.33firefighting or emergencies that threaten human safety or property is exempt from
77.34paragraphs (a) and (b).

78.1    Sec. 18. Minnesota Statutes 2014, section 84D.108, is amended by adding a
78.2subdivision to read:
78.3    Subd. 2a. Lake Minnetonka pilot study. (a) The commissioner may issue an
78.4additional permit to service providers to return to Lake Minnetonka water-related
78.5equipment with zebra mussels attached after the equipment has been seasonally
78.6stored, serviced, or repaired. The permit must include verification and documentation
78.7requirements and any other conditions the commissioner deems necessary.
78.8(b) Water-related equipment with zebra mussels attached may be returned only
78.9to Lake Minnetonka (DNR Division of Waters number 27-0133) by service providers
78.10permitted under subdivision 1.
78.11(c) The service provider's place of business must be within the Lake Minnetonka
78.12Conservation District as established according to sections 103B.601 to 103B.645.
78.13(d) A service provider applying for a permit under this subdivision must, if approved
78.14for a permit and before the permit is valid, furnish a corporate surety bond in favor of the
78.15state for $50,000 payable upon violation of this chapter.
78.16(e) This subdivision expires December 1, 2018.

78.17    Sec. 19. Minnesota Statutes 2015 Supplement, section 84D.11, subdivision 1, is
78.18amended to read:
78.19    Subdivision 1. Prohibited invasive species. (a) The commissioner may issue a
78.20permit for the propagation, possession, importation, purchase, or transport of a prohibited
78.21invasive species for the purposes of disposal, decontamination, control, research, or
78.22education.
78.23(b) The commissioner may issue a permit as provided under section 84D.108,
78.24subdivision 2a, to a service provider to allow water-related equipment to be placed back
78.25into the same body of water after being seasonally stored, serviced, or repaired by the
78.26service provider. This paragraph expires December 1, 2018.

78.27    Sec. 20. Minnesota Statutes 2014, section 84D.13, subdivision 4, is amended to read:
78.28    Subd. 4. Warnings; civil citations. After appropriate training, conservation
78.29officers, other licensed peace officers, and other department personnel designated by the
78.30commissioner may issue warnings or citations to a person who:
78.31    (1) unlawfully transports prohibited invasive species or aquatic macrophytes;
78.32    (2) unlawfully places or attempts to place into waters of the state water-related
78.33equipment that has aquatic macrophytes or prohibited invasive species attached;
79.1    (3) intentionally damages, moves, removes, or sinks a buoy marking, as prescribed
79.2by rule, Eurasian watermilfoil;
79.3    (4) fails to remove plugs, open valves, and drain water from water-related equipment
79.4before leaving waters of the state or when transporting water-related equipment as
79.5provided in section 84D.10, subdivision 4; or
79.6    (5) transports infested water, in violation of rule, off riparian property.;
79.7(6) fails to comply with a decontamination order when a decontamination unit
79.8is available on site;
79.9(7) fails to complete decontamination of water-related equipment or to remove
79.10invasive species from water-related equipment by the date specified on a tagging notice
79.11and order; or
79.12(8) fails to complete the aquatic invasive species offender training course required
79.13under section 86B.13.

79.14    Sec. 21. Minnesota Statutes 2015 Supplement, section 84D.13, subdivision 5, is
79.15amended to read:
79.16    Subd. 5. Civil penalties. (a) A civil citation issued under this section must impose
79.17the following penalty amounts:
79.18    (1) for transporting aquatic macrophytes in violation of section 84D.09, $100;
79.19    (2) for placing or attempting to place into waters of the state water-related equipment
79.20that has aquatic macrophytes attached, $200;
79.21    (3) for unlawfully possessing or transporting a prohibited invasive species other
79.22than an aquatic macrophyte, $500;
79.23    (4) for placing or attempting to place into waters of the state water-related equipment
79.24that has prohibited invasive species attached when the waters are not listed by the
79.25commissioner as being infested with that invasive species, $500;
79.26    (5) for intentionally damaging, moving, removing, or sinking a buoy marking, as
79.27prescribed by rule, Eurasian watermilfoil, $100;
79.28    (6) for failing to have drain plugs or similar devices removed or opened while
79.29transporting water-related equipment or for failing to remove plugs, open valves, and
79.30drain water from water-related equipment, other than marine sanitary systems, before
79.31leaving waters of the state, $100;
79.32    (7) for transporting infested water off riparian property without a permit as required
79.33by rule, $200; and
79.34    (8) for failing to have aquatic invasive species affirmation displayed or available for
79.35inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25.;
80.1(9) for failing to comply with a decontamination order when a decontamination unit
80.2is available on site, $250;
80.3(10) for failing to complete decontamination of water-related equipment or to
80.4remove invasive species from water-related equipment by the date specified on a tagging
80.5notice and order, $250; and
80.6(11) for failing to complete the aquatic invasive species offender training course
80.7required under section 86B.13, $25.
80.8(b) A civil citation that is issued to a person who has one or more prior convictions
80.9or final orders for violations of this chapter is subject to twice the penalty amounts listed
80.10in paragraph (a).

80.11    Sec. 22. Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:
80.12    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
80.13Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
80.14Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
80.15McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
80.16Itasca County and there terminate;
80.17(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
80.18and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
80.19Marais in Cook County, thence northeasterly to the international boundary in the vicinity
80.20of the north shore of Lake Superior, and there terminate;
80.21(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
80.22in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
80.23to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
80.24Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
80.25Louis County to International Falls in Koochiching County, and there terminate the David
80.26Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and
80.27extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with
80.28the Taconite Trail west of Tower; then the David Dill/Taconite Trail continues easterly
80.29to Ely in St. Louis County; then the David Dill/Tomahawk Trail extends southeasterly,
80.30outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and
80.31there terminates at the intersection with the C. J. Ramstad/Northshore Trail; and
80.32(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and
80.33extend southerly to Chengwatana State Forest in Pine County.
80.34(b) The trails shall be developed primarily for riding and hiking.
81.1(c) In addition to the authority granted in subdivision 1, lands and interests in lands
81.2for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
81.3any land or interest in land by eminent domain the commissioner of administration shall
81.4obtain the approval of the governor. The governor shall consult with the Legislative
81.5Advisory Commission before granting approval. Recommendations of the Legislative
81.6Advisory Commission shall be advisory only. Failure or refusal of the commission to
81.7make a recommendation shall be deemed a negative recommendation.

81.8    Sec. 23. Minnesota Statutes 2014, section 86B.005, is amended by adding a
81.9subdivision to read:
81.10    Subd. 4a. Enclosed accommodation compartment. "Enclosed accommodation
81.11compartment" means one contiguous space, surrounded by boat structure that contains
81.12all of the following:
81.13(1) designated sleeping accommodations;
81.14(2) a galley area with sink; and
81.15(3) a head compartment.

81.16    Sec. 24. Minnesota Statutes 2014, section 86B.005, is amended by adding a
81.17subdivision to read:
81.18    Subd. 4b. Enclosed occupancy compartment. "Enclosed occupancy compartment"
81.19means one contiguous enclosed space surrounded by boat structure that may be occupied
81.20by a person.

81.21    Sec. 25. Minnesota Statutes 2014, section 86B.005, is amended by adding a
81.22subdivision to read:
81.23    Subd. 8a. Marine carbon monoxide detection system. "Marine carbon monoxide
81.24detection system" means a device or system that meets the requirements of the American
81.25Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems.

81.26    Sec. 26. [86B.532] CARBON MONOXIDE DETECTION DEVICE
81.27REQUIREMENTS.
81.28    Subdivision 1. Requirements. (a) No motorboat that has an enclosed
81.29accommodation compartment may be operated on any waters of the state unless the
81.30motorboat is equipped with a functioning marine carbon monoxide detection system
81.31installed according to the manufacturer's instructions.
82.1(b) After the effective date of this section, no new motorboat that has an enclosed
82.2accommodation compartment may be sold or offered for sale in Minnesota unless the
82.3motorboat is equipped with a new functioning marine carbon monoxide detection system
82.4installed according to the manufacturer's instructions.
82.5    Subd. 2. Boating safety courses. All state-sponsored boating safety courses and all
82.6boating safety courses that require state approval by the commissioner must incorporate
82.7information about the dangers of being overcome by carbon monoxide poisoning while on
82.8or behind a motorboat and how to prevent that poisoning.
82.9    Subd. 3. Carbon monoxide poisoning warning labels. (a) No gasoline-powered
82.10motorboat that has an enclosed occupancy compartment may be operated on any waters
82.11of the state unless labels warning of carbon monoxide dangers are affixed in the vicinity
82.12of: the aft reboarding/stern area, the steering station, and in or at the entrance to any
82.13enclosed occupancy compartment.
82.14(b) For a motorboat sold by a dealer, the dealer must ensure that specified warning
82.15labels have been affixed before completion of the transaction.
82.16(c) Warning labels approved by the American Boat and Yacht Council, National
82.17Marine Manufacturers Association, or the commissioner satisfy the requirements of this
82.18section when installed as specified.
82.19    Subd. 4. License agents; distribution. The commissioner shall mail the
82.20information and labels to all owners of motorboats that are 19 feet and greater in length
82.21the first year. The commissioner must also provide license agents with informational
82.22brochures and warning labels about the dangers of carbon monoxide poisoning while
82.23boating. A license agent must make the brochure and labels available to motorboat owners
82.24and make efforts to inform new owners of the requirement. The commissioner shall
82.25highlight the new requirements on the watercraft renewal reminder postcard for three
82.26consecutive three-year license cycles and in the Minnesota Boating Guide. The brochure
82.27must instruct motorboat owners to place the labels according to subdivision 3, and inform
82.28motorboat owners of carbon monoxide dangers of gasoline-powered generators.
82.29    Subd. 5. Safety warning. A first violation of this section shall not result in a
82.30penalty, but is punishable only by a safety warning. A second or subsequent violation
82.31is a petty misdemeanor.
82.32EFFECTIVE DATE.This section is effective May 1, 2017.

82.33    Sec. 27. [86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT.
82.34    Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of a
82.35watercraft may have the watercraft titled in transfer-on-death or TOD form by including in
83.1the application for the certificate of title a designation of a beneficiary or beneficiaries to
83.2whom the watercraft must be transferred on death of the owner or the last survivor of joint
83.3owners with rights of survivorship, subject to the rights of secured parties.
83.4    Subd. 2. Designation of beneficiary. A watercraft is registered in transfer-on-death
83.5form by designating on the certificate of title the name of the owner and the names
83.6of joint owners with identification of rights of survivorship, followed by the words
83.7"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may
83.8be used instead of "transfer-on-death." A title in transfer-on-death form is not required
83.9to be supported by consideration, and the certificate of title in which the designation
83.10is made is not required to be delivered to the beneficiary or beneficiaries in order for
83.11the designation to be effective.
83.12    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries
83.13have no interest in the watercraft until the death of the owner or the last survivor of joint
83.14owners with rights of survivorship. A beneficiary designation may be changed at any time
83.15by the owner or by all joint owners with rights of survivorship, without the consent of the
83.16beneficiary or beneficiaries, by filing an application for a new certificate of title.
83.17    Subd. 4. Vesting of ownership in beneficiary. Ownership of a watercraft titled in
83.18transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
83.19the owner or the last of the joint owners with rights of survivorship, subject to the rights of
83.20secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
83.21may apply for a new certificate of title to the watercraft upon submitting a certified death
83.22record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries
83.23survive the owner of a watercraft, the watercraft must be included in the probate estate
83.24of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or
83.25beneficiaries is not a testamentary transfer.
83.26    Subd. 5. Rights of creditors. (a) This section does not limit the rights of any
83.27secured party or creditor of the owner of a watercraft against a transfer-on-death
83.28beneficiary or beneficiaries.
83.29(b) The state or a county agency with a claim or lien authorized by section 246.53,
83.30256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim
83.31or lien under those sections continues to apply against the designated beneficiary or
83.32beneficiaries after the transfer under this section if other assets of the deceased owner's
83.33estate are insufficient to pay the amount of the claim. The claim or lien continues to apply
83.34to the watercraft until the designated beneficiary sells or transfers it to a person against
83.35whom the claim or lien does not apply and who did not have actual notice or knowledge
83.36of the claim or lien.

84.1    Sec. 28. Minnesota Statutes 2014, section 88.01, is amended by adding a subdivision
84.2to read:
84.3    Subd. 28. Prescribed burn. "Prescribed burn" means a fire that is intentionally
84.4ignited, managed, and controlled by an entity meeting certification requirements established
84.5by the commissioner for the purpose of managing vegetation. A prescribed burn that has
84.6exceeded its prescribed boundaries and requires suppression action is considered a wildfire.

84.7    Sec. 29. Minnesota Statutes 2014, section 88.22, subdivision 1, is amended to read:
84.8    Subdivision 1. Imposition of restrictions. (a) Road closure. When the
84.9commissioner of natural resources shall determine that conditions conducive to wildfire
84.10hazards exist in the wildfire areas of the state and that the presence of persons in the
84.11wildlife areas tends to aggravate wildfire hazards, render forest trails impassable by
84.12driving thereon during wet seasons and hampers the effective enforcement of state timber
84.13trespass and game laws, the commissioner may by written order, close any road or trail
84.14leading into any land used for any conservation purposes, to all modes of travel except
84.15that considered essential such as residents traveling to and from their homes or in other
84.16cases to be determined by the authorized forest officers assigned to guard the area.
84.17(b) Burning ban. The commissioner may also, upon such determination, by written
84.18order, suspend the issuance of permits for open fires or prescribed burns, revoke or suspend
84.19the operation of a permit previously issued and, to the extent the commissioner deems
84.20necessary, prohibit the building of all or some kinds of open fires or prescribed burns in all
84.21or any part of a wildfire area regardless of whether a permit is otherwise required; and the
84.22commissioner also may, by written order, prohibit smoking except at places of habitation
84.23or automobiles or other enclosed vehicles properly equipped with an efficient ash tray.

84.24    Sec. 30. Minnesota Statutes 2014, section 89.0385, is amended to read:
84.2589.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
84.26CERTIFICATION.
84.27(a) The commissioner shall certify the total costs incurred for forest management,
84.28forest improvement, and road improvement on state-managed lands during each fiscal
84.29year. The commissioner shall distribute forest management receipts credited to various
84.30accounts according to this section.
84.31(b) The amount of the certified costs incurred for forest management activities on
84.32state lands shall be transferred from the account where receipts are deposited to the forest
84.33management investment account in the natural resources fund, except for those costs
84.34certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
85.1revenue reports, throughout the fiscal year, with final certification and reconciliation after
85.2each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.
85.3(c) The amount of the certified costs incurred for forest management activities
85.4on nonstate lands managed under a good neighbor or joint powers agreement must be
85.5transferred from the account where receipts are deposited to the forest management
85.6investment account in the natural resources fund. Transfers for costs incurred may occur
85.7after projects or timber permits are finalized.

85.8    Sec. 31. Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:
85.9    Subd. 3. Expiration. The committee expires June 30, 2016 2026.

85.10    Sec. 32. Minnesota Statutes 2014, section 93.2236, is amended to read:
85.1193.2236 MINERALS MANAGEMENT ACCOUNT.
85.12(a) The minerals management account is created as an account in the natural
85.13resources fund. Interest earned on money in the account accrues to the account. Money in
85.14the account may be spent or distributed only as provided in paragraphs (b) and (c).
85.15(b) If the balance in the minerals management account exceeds $3,000,000 on March
85.1631, June 30, September 30, or December 31, the amount exceeding $3,000,000 must
85.17be distributed to the permanent school fund, the permanent university fund, and taxing
85.18districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed
85.19to each fund must be in the same proportion as the total mineral lease revenue received
85.20in the previous biennium from school trust lands, university lands, and lands held by the
85.21state in trust for taxing districts.
85.22(c) Subject to appropriation by the legislature, money in the minerals management
85.23account may be spent by the commissioner of natural resources for mineral resource
85.24management and projects to enhance future mineral income and promote new mineral
85.25resource opportunities.

85.26    Sec. 33. Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:
85.27    Subd. 2. Classes of land; definitions. (a) The classes of public land that may be
85.28involved in an expedited exchange under this section are:
85.29    (1) Class 1 land, which for the purpose of this section is Class A land as defined in
85.30section 94.342, subdivision 1, except for:;
85.31    (i) school trust land as defined in section 92.025; and
85.32    (ii) university land granted to the state by acts of Congress;
86.1    (2) Class 2 land, which for the purpose of this section is Class B land as defined in
86.2section 94.342, subdivision 2; and
86.3    (3) Class 3 land, which for the purpose of this section is all land owned in fee by
86.4a governmental subdivision of the state.
86.5(b) "School trust land" has the meaning given in section 92.025.
86.6(c) "University land" means land granted to the state by acts of Congress for
86.7university purposes.

86.8    Sec. 34. Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:
86.9    Subd. 3. Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land,
86.10the value of all the land shall be determined by the commissioner of natural resources,
86.11but the county board must approve the value determined for the Class 2 land, and the
86.12governmental subdivision of the state must approve the value determined for the Class 3
86.13land. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be
86.14determined by the county board of the county in which the land lies, but the governmental
86.15subdivision of the state must approve the value determined for the Class 3 land.
86.16    (b) To determine the value of the land, the parties to the exchange may either (1)
86.17cause the land to be appraised, utilize the valuation process provided under section
86.1884.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker or
86.19(2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most
86.20current township or county assessment schedules for similar land types from the county
86.21assessor of the county in which the lands are located. Merchantable timber value must
86.22should be determined and considered in finalizing valuation of the lands.
86.23    (b) All (c) Except for school trust lands and university lands, the lands exchanged
86.24under this section shall be exchanged only for lands of at least substantially equal value.
86.25For the purposes of this subdivision, "substantially equal value" has the meaning given
86.26under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the
86.27lands, other than school trust lands or university lands, are of substantially equal value but
86.28are not of the same value.
86.29(d) School trust lands and university lands exchanged under this section must be
86.30exchanged only for lands of equal or greater value.

86.31    Sec. 35. Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:
86.32    Subd. 7. Reversionary interest; Mineral and water power rights and other
86.33reservations. (a) All deeds conveying land given in an expedited land exchange under
87.1this section shall include a reverter that provides that title to the land automatically reverts
87.2to the conveying governmental unit if:
87.3    (1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
87.4the land within 40 years of the date of the deed conveying ownership; and
87.5    (2) there is no prior written approval for the transfer from the conveying
87.6governmental unit. The authority for granting approval is the commissioner of natural
87.7resources for former Class 1 land, the county board for former Class 2 land, and the
87.8governing body for former Class 3 land.
87.9    (b) Class 1 land given in exchange is subject to the reservation provisions of section
87.1094.343, subdivision 4 . Class 2 land given in exchange is subject to the reservation
87.11provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
87.12to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

87.13    Sec. 36. Minnesota Statutes 2014, section 97A.075, subdivision 7, is amended to read:
87.14    Subd. 7. Wolf licenses; account established. (a) For purposes of this subdivision,
87.15"wolf license" means a license or permit issued under section 97A.475, subdivision 2,
87.16clause (20); 3, paragraph (a), clause (16); or 20, paragraph (b).
87.17(b) A wolf management and monitoring account is created in the game and fish fund.
87.18Revenue from wolf licenses must be credited to the wolf management and monitoring
87.19account and is appropriated to the commissioner only for wolf management, research,
87.20damage control, enforcement, and education. Notwithstanding any other law to the
87.21contrary, money credited to the account may not be used to pay indirect costs or agency
87.22shared services.

87.23    Sec. 37. Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:
87.24    Subd. 2. Personal possession. (a) A person acting under a license or traveling from
87.25an area where a licensed activity was performed must have in personal possession either:
87.26(1) the proper license, if the license has been issued to and received by the person; (2) a
87.27driver's license or Minnesota identification card that bears a valid designation of the proper
87.28lifetime license, as provided under section 171.07, subdivision 19; or (2) (3) the proper
87.29license identification number or stamp validation, if the license has been sold to the person
87.30by electronic means but the actual license has not been issued and received.
87.31    (b) If possession of a license or a license identification number is required, a person
87.32must exhibit, as requested by a conservation officer or peace officer, either: (1) the
87.33proper license if the license has been issued to and received by the person; (2) a driver's
87.34license or Minnesota identification card that bears a valid designation of the proper
88.1lifetime license, as provided under section 171.07, subdivision 19; or (2) (3) the proper
88.2license identification number or stamp validation and a valid state driver's license, state
88.3identification card, or other form of identification provided by the commissioner, if the
88.4license has been sold to the person by electronic means but the actual license has not been
88.5issued and received. A person charged with violating the license possession requirement
88.6shall not be convicted if the person produces in court or the office of the arresting officer,
88.7the actual license previously issued to that person, which was valid at the time of arrest,
88.8or satisfactory proof that at the time of the arrest the person was validly licensed. Upon
88.9request of a conservation officer or peace officer, a licensee shall write the licensee's name
88.10in the presence of the officer to determine the identity of the licensee.
88.11    (c) Except as provided in paragraph (a), clause (2), if the actual license has been
88.12issued and received, a receipt for license fees, a copy of a license, or evidence showing the
88.13issuance of a license, including the license identification number or stamp validation, does
88.14not entitle a licensee to exercise the rights or privileges conferred by a license.
88.15    (d) A license issued electronically and not immediately provided to the licensee shall
88.16be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory
88.17waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee
88.18after purchase of a stamp validation only if the licensee pays an additional fee that covers
88.19the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be
88.20purchased for a fee that covers the costs of producing and mailing the pictorial stamp.
88.21Notwithstanding section 16A.1283, the commissioner may, by written order published in
88.22the State Register, establish fees for providing the pictorial stamps. The fees must be set in
88.23an amount that does not recover significantly more or less than the cost of producing and
88.24mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14,
88.25and section 14.386 does not apply.
88.26EFFECTIVE DATE.This section is effective January 1, 2018, or on the date
88.27the Department of Public Safety implements the Minnesota Licensing and Registration
88.28System (MNLARS), whichever occurs first.

88.29    Sec. 38. Minnesota Statutes 2014, section 97A.465, is amended by adding a
88.30subdivision to read:
88.31    Subd. 8. Nonresident active members of National Guard. A nonresident that is
88.32an active member of the state's National Guard may obtain a resident license to take fish or
88.33game. This subdivision does not apply to the taking of moose or elk.

89.1    Sec. 39. Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision
89.2to read:
89.3    Subd. 19. Resident lifetime game and fish license. (a) The department shall
89.4maintain in its records information transmitted electronically from the commissioner of
89.5natural resources identifying each person to whom the commissioner has issued a resident
89.6lifetime license under section 97A.473. The records transmitted from the Department of
89.7Natural Resources must contain:
89.8(1) the full name and date of birth as required for the driver's license or identification
89.9card;
89.10(2) the person's driver's license or identification card number;
89.11(3) the category of lifetime license issued under section 97A.473; and
89.12(4) the Department of Natural Resources customer identification number.
89.13(b) The department may delete records described in paragraph (a) if they have not
89.14been matched to a driver's license or identification card record within seven years after
89.15transmission to the department.
89.16(c) Except as provided in paragraph (b), the department shall include, on all drivers'
89.17licenses or Minnesota identification cards issued to a person who holds a lifetime license,
89.18a graphic or written designation of the lifetime license, and the category of the lifetime
89.19license.
89.20(d) If a person with a lifetime license under section 97A.473 applies for a driver's
89.21license or Minnesota identification card before that information has been transmitted to the
89.22department, the department may accept a copy of the license issued under section 97A.473
89.23as proof of its issuance and shall then follow the procedures in paragraph (c).
89.24EFFECTIVE DATE.This section is effective January 1, 2018, or on the date
89.25the Department of Public Safety implements the Minnesota Licensing and Registration
89.26System (MNLARS), whichever occurs first.

89.27    Sec. 40. Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by
89.28Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:
89.29
89.30
Subd. 5.Fish and Wildlife
Management
-0-
2,412,000
89.31$3,000 in 2015 is from the heritage
89.32enhancement account in the game and fish
89.33fund for a report on aquatic plant management
89.34permitting policies for the management
90.1of narrow-leaved and hybrid cattail in a
90.2range of basin types across the state. The
90.3report shall be submitted to the chairs and
90.4ranking minority members of the house of
90.5representatives and senate committees with
90.6jurisdiction over environment and natural
90.7resources by December 15, 2014, and include
90.8recommendations for any necessary changes
90.9in statutes, rules, or permitting procedures.
90.10This is a onetime appropriation.
90.11$9,000 in 2015 is from the game and fish
90.12fund for the commissioner, in consultation
90.13with interested parties, agencies, and other
90.14states, to develop a detailed restoration plan
90.15to recover the historical native population of
90.16bobwhite quail in Minnesota for its ecological
90.17and recreational benefits to the citizens of the
90.18state. The commissioner shall conduct public
90.19meetings in developing the plan. No later
90.20than January 15, 2015, the commissioner
90.21must report on the plan's progress to the
90.22legislative committees with jurisdiction over
90.23environment and natural resources policy
90.24and finance. This is a onetime appropriation.
90.25$2,000,000 in 2015 is from the game and
90.26fish fund for shooting sports facility grants
90.27under Minnesota Statutes, section 87A.10.
90.28The commissioner may spend up to $50,000
90.29of this appropriation to administer the grant.
90.30This is a onetime appropriation and is
90.31available until June 30, 2017.
90.32$400,000 in 2015 is from the heritage
90.33enhancement account in the game and fish
90.34fund for hunter and angler recruitment
90.35and retention activities and grants to local
91.1chapters of Let's Go Fishing of Minnesota
91.2to provide community outreach to senior
91.3citizens, youth, and veterans and for the costs
91.4associated with establishing and recruiting
91.5new chapters. The grants must be matched
91.6with cash or in-kind contributions from
91.7nonstate sources. Of this amount, $25,000
91.8is for Asian Outdoor Heritage for youth
91.9fishing recruitment efforts and outreach in
91.10the metropolitan area. The commissioner
91.11shall establish a grant application process
91.12that includes a standard for ownership
91.13of equipment purchased under the grant
91.14program and contract requirements that
91.15cover the disposition of purchased equipment
91.16if the grantee no longer exists. Any
91.17equipment purchased with state grant money
91.18must be specified on the grant application
91.19and approved by the commissioner. The
91.20commissioner may spend up to three percent
91.21of the appropriation to administer the grant.
91.22This is a onetime appropriation and is
91.23available until June 30, 2016 2017.

91.24    Sec. 41. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 2,
91.25is amended to read:
91.26
91.27
Subd. 2.Land and Mineral Resources
Management
6,461,000
5,521,000
91.28
Appropriations by Fund
91.29
2016
2017
91.30
General
1,585,000
1,585,000
91.31
Natural Resources
3,332,000
3,392,000
91.32
Game and Fish
344,000
344,000
91.33
Remediation
1,000,000
-0-
91.34
Permanent School
200,000
200,000
91.35$68,000 the first year and $68,000 the
91.36second year are for minerals cooperative
92.1environmental research, of which $34,000
92.2the first year and $34,000 the second year are
92.3available only as matched by $1 of nonstate
92.4money for each $1 of state money. The
92.5match may be cash or in-kind.
92.6$251,000 the first year and $251,000 the
92.7second year are for iron ore cooperative
92.8research. Of this amount, $200,000 each year
92.9is from the minerals management account
92.10in the natural resources fund. $175,000 the
92.11first year and $175,000 the second year are
92.12available only as matched by $1 of nonstate
92.13money for each $1 of state money. The match
92.14may be cash or in-kind. Any unencumbered
92.15balance from the first year does not cancel
92.16and is available in the second year.
92.17$2,755,000 the first year and $2,815,000
92.18the second year are from the minerals
92.19management account in the natural resources
92.20fund for use as provided in Minnesota
92.21Statutes, section 93.2236, paragraph (c),
92.22for mineral resource management, projects
92.23to enhance future mineral income, and
92.24projects to promote new mineral resource
92.25opportunities.
92.26$200,000 the first year and $200,000 the
92.27second year are from the state forest suspense
92.28account in the permanent school fund to
92.29accelerate land exchanges, land sales, and
92.30commercial leasing of school trust lands and
92.31to identify, evaluate, and lease construction
92.32aggregate located on school trust lands. This
92.33appropriation is to be used for securing
92.34long-term economic return from the
92.35school trust lands consistent with fiduciary
93.1responsibilities and sound natural resources
93.2conservation and management principles.
93.3Notwithstanding Minnesota Statutes, section
93.4115B.20 , $1,000,000 the first year is from
93.5the dedicated account within the remediation
93.6fund for the purposes of Minnesota Statutes,
93.7section 115B.20, subdivision 2, clause (4),
93.8to acquire salt lands as described under
93.9Minnesota Statutes, section 92.05, within
93.10Bear Head Lake State Park. This is a onetime
93.11appropriation and is available until June 30,
93.122018.

93.13    Sec. 42. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5,
93.14is amended to read:
93.15
Subd. 5.Parks and Trails Management
74,064,000
73,650,000
93.16
Appropriations by Fund
93.17
2016
2017
93.18
General
24,967,000
24,427,000
93.19
Natural Resources
46,831,000
46,950,000
93.20
Game and Fish
2,266,000
2,273,000
93.21$1,075,000 the first year and $1,075,000 the
93.22second year are from the water recreation
93.23account in the natural resources fund for
93.24enhancing public water access facilities.
93.25$5,740,000 the first year and $5,740,000 the
93.26second year are from the natural resources
93.27fund for state trail, park, and recreation area
93.28operations. This appropriation is from the
93.29revenue deposited in the natural resources
93.30fund under Minnesota Statutes, section
93.31297A.94 , paragraph (e), clause (2).
93.32$1,005,000 the first year and $1,005,000 the
93.33second year are from the natural resources
93.34fund for park and trail grants to local units of
94.1government on land to be maintained for at
94.2least 20 years for the purposes of the grants.
94.3This appropriation is from the revenue
94.4deposited in the natural resources fund
94.5under Minnesota Statutes, section 297A.94,
94.6paragraph (e), clause (4). Any unencumbered
94.7balance does not cancel at the end of the first
94.8year and is available for the second year. Up
94.9to 2.5 percent of this appropriation may be
94.10used to administer the grants.
94.11$8,424,000 the first year and $8,424,000
94.12the second year are from the snowmobile
94.13trails and enforcement account in the
94.14natural resources fund for the snowmobile
94.15grants-in-aid program. Any unencumbered
94.16balance does not cancel at the end of the first
94.17year and is available for the second year.
94.18$1,360,000 the first year and $1,360,000
94.19the second year are from the natural
94.20resources fund for the off-highway vehicle
94.21grants-in-aid program. Of this amount,
94.22$1,210,000 each year is from the all-terrain
94.23vehicle account; and $150,000 each year is
94.24from the off-highway motorcycle account.
94.25Any unencumbered balance does not cancel
94.26at the end of the first year and is available for
94.27the second year.
94.28$75,000 the first year and $75,000 the second
94.29year are from the cross-country ski account
94.30in the natural resources fund for grooming
94.31and maintaining cross-country ski trails in
94.32state parks, trails, and recreation areas.
94.33$250,000 the first year and $250,000 the
94.34second year are from the state land and
94.35water conservation account (LAWCON)
95.1in the natural resources fund for priorities
95.2established by the commissioner for eligible
95.3state projects and administrative and
95.4planning activities consistent with Minnesota
95.5Statutes, section 84.0264, and the federal
95.6Land and Water Conservation Fund Act.
95.7Any unencumbered balance does not cancel
95.8at the end of the first year and is available for
95.9the second year.
95.10$968,000 the first year and $968,000 the
95.11second year are from the off-road vehicle
95.12account in the natural resources fund. Of
95.13this amount, $568,000 each year is for parks
95.14and trails management for off-road vehicle
95.15purposes; $325,000 each year is for the
95.16off-road vehicle grant in aid program; and
95.17$75,000 each year is for a new full-time
95.18employee position or contract in northern
95.19Minnesota to work in conjunction with the
95.20Minnesota Four-Wheel Drive Association
95.21to address off-road vehicle touring routes
95.22and other issues related to off-road vehicle
95.23activities. Of this appropriation, the $325,000
95.24each year is onetime.
95.25$65,000 the first year is from the water
95.26recreation account in the natural resources
95.27fund to cooperate with local units of
95.28government in marking routes and
95.29designating river accesses and campsites
95.30under Minnesota Statutes, section 85.32.
95.31This is a onetime appropriation and is
95.32available until June 30, 2019.
95.33$190,000 the first year is for a grant to the
95.34city of Virginia for the additional cost of
95.35supporting a trail due to the rerouting of
96.1U.S. Highway No. 53. This is a onetime
96.2appropriation and is available until June 30,
96.32019.
96.4$50,000 the first year is for development of
96.5a master plan for the Mississippi Blufflands
96.6Trail, including work on possible extensions
96.7or connections to other state or regional
96.8trails. This is a onetime appropriation that is
96.9available until June 30, 2017.
96.10$61,000 from the natural resources fund the
96.11first year is for a grant to the city of East
96.12Grand Forks for payment under a reciprocity
96.13agreement for the Red River State Recreation
96.14Area.
96.15$500,000 the first year is for restoration or
96.16replacement of a historic trestle bridge in
96.17Blackduck. This is a onetime appropriation
96.18and is available until June 30, 2019.
96.19The base for parks and trails operations in
96.20the natural resources fund in fiscal year 2018
96.21and thereafter is $46,450,000.
96.22EFFECTIVE DATE.This section is effective the day following final enactment.

96.23    Sec. 43. Laws 2015, First Special Session chapter 4, article 4, section 131, is amended
96.24to read:
96.25    Sec. 131. SURPLUS STATE LAND SALES.
96.26The school trust lands director shall identify, in consultation with the commissioner
96.27of natural resources, at least $5,000,000 in state-owned lands suitable for sale or exchange
96.28with school trust lands. The lands identified shall not be within a unit of the outdoor
96.29recreation system under Minnesota Statutes, section 86A.05, an administrative site, or
96.30trust land. The commissioner shall sell or exchange at least $3,000,000 worth of lands
96.31identified under this section by June 30, 2017. Land exchanged under this section may
96.32be exchanged in accordance with Minnesota Statutes, section 94.3495. The value of
96.33the surplus land exchanged shall serve as compensation to the permanent school fund
97.1as provided under Minnesota Statutes, section 84.027, subdivision 18, paragraph (b).
97.2Notwithstanding the restrictions on sale of riparian land and the public sale provisions
97.3under Minnesota Statutes, sections 92.45, 94.09, and 94.10, the commissioner may
97.4offer the surplus land, including land bordering public water, for public or private sale.
97.5Notwithstanding Minnesota Statutes, section 94.16, subdivision 3, or any other law to the
97.6contrary, the amount an amount equal to 90 percent of the proceeds from the sale of lands
97.7that exceeds the actual expenses of selling the lands must be deposited in the school trust
97.8lands account and used to extinguish the school trust interest as provided under Minnesota
97.9Statutes, section 92.83, on school trust lands that have public water access sites or old
97.10growth forests located on them. Notwithstanding Minnesota Statutes, section 92.83, the
97.11remaining ten percent of the proceeds must be used to fund transactional and legal work
97.12associated with the Boundary Waters Canoe Area Wilderness land exchange and sale
97.13projects under Minnesota Statutes, sections 92.80 and 92.82.

97.14    Sec. 44. COLD SPRING WATER APPROPRIATION PERMITS; REPORT.
97.15(a) The commissioner of natural resources shall amend the city of Cold Spring's
97.16water appropriation permit to allow an increase in the city's water withdrawal of 100
97.17million gallons per year from city wells 4, 5, and 6, provided a combined reduction of
97.18ten million gallons per year is made from city well 3 or water appropriations under any
97.19permits held by brewing companies in the Cold Spring Creek area. The city and any other
97.20permit holder with permit modifications made under this section must comply with all
97.21existing reporting requirements and demonstrate that increased pumping does not result in
97.22violations of the Safe Drinking Water Act. The increases under this section are available
97.23on an interim basis, not to exceed five years, to allow the city to establish a long-term
97.24water supply solution for the city and area businesses.
97.25(b) The commissioner must conduct necessary monitoring of stream flow and water
97.26levels and develop a groundwater model to determine the amount of water that can be
97.27sustainably pumped in the area of Cold Spring Creek for area businesses, agriculture, and
97.28city needs. Beginning July 1, 2017, the commissioner must submit an annual progress
97.29report to the chairs and ranking minority members of the house of representatives and
97.30senate committees and divisions with jurisdiction over environment and natural resources.
97.31The commissioner must submit a final report by January 15, 2022.

97.32    Sec. 45. MARINE CARBON MONOXIDE DETECTORS; REPORT.
97.33The commissioner of natural resources shall submit a report to the legislature
97.34by November 1, 2017. The report must outline any issues encountered relating
98.1to implementation of Minnesota Statutes, section 86B.532, any changes to marine
98.2manufacturing industry standards relating to carbon monoxide, the availability of plug-in
98.3or battery-powered marine certified carbon monoxide detectors, and best practices in
98.4preventing carbon monoxide poisoning relating to motorboat operation, including the
98.5feasibility of requiring carbon monoxide detectors that are more sensitive in measuring
98.6carbon monoxide than required in this act.

98.7    Sec. 46. PRESCRIBED BURN REQUIREMENTS; REPORT.
98.8The commissioner of natural resources, in cooperation with prescribed burning
98.9professionals, nongovernmental organizations, and local and federal governments, must
98.10develop criteria for certifying an entity to conduct a prescribed burn under a general
98.11permit. The certification requirements must include training, equipment, and experience
98.12requirements and include an apprentice program to allow entities without experience to
98.13become certified. The commissioner must establish provisions for decertifying entities.
98.14The commissioner must not require additional certification or requirements for burns
98.15conducted as part of normal agricultural practices not currently subject to prescribed burn
98.16specifications. The commissioner must submit a report with recommendations and any
98.17legislative changes needed to the chairs and ranking minority members of the house of
98.18representatives and senate committees and divisions with jurisdiction over environment
98.19and natural resources by January 15, 2017.

98.20    Sec. 47. SAND DUNES STATE FOREST; REPORT.
98.21(a) Until July 1, 2017, the commissioner of natural resources shall not log, enter into
98.22a logging contract, or otherwise remove trees for purposes of creating oak savanna in the
98.23Sand Dunes State Forest. This paragraph does not prohibit work done under contracts
98.24entered into before the effective date of this section or work on school trust lands.
98.25(b) By January 15, 2017, the commissioner must submit a report, prepared by
98.26the Division of Forestry, to the chairs and ranking minority members of the house of
98.27representatives and senate committees and divisions with jurisdiction over environment
98.28and natural resources with the Division of Forestry's progress on collaborating with local
98.29citizens and other stakeholders over the past year when making decisions that impact
98.30the landscape, including forest conversions and other clear-cutting activities, and the
98.31division's progress on other citizen engagement activities.
98.32EFFECTIVE DATE.This section is effective the day following final enactment.

98.33    Sec. 48. LAKE SERVICE PROVIDER FEASIBILITY REPORT.
99.1The commissioner of natural resources shall report to the chairs of the house of
99.2representatives and senate committees with jurisdiction over natural resources by January
99.315, 2019, regarding the feasibility of expanding permitting to service providers as
99.4described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in
99.5the state. The report must:
99.6(1) include recommendations for state and local resources needed to implement the
99.7program;
99.8(2) assess local government inspection roles under Minnesota Statutes, section
99.984D.105, subdivision 2, paragraph (g); and
99.10(3) assess whether mechanisms to ensure that water-related equipment placed back
99.11into the same body of water from which it was removed can adequately protect other
99.12water bodies.

99.13    Sec. 49. WORKERS' COMPENSATION FOR VOLUNTEERS; REPORT.
99.14By January 15, 2017, the commissioner of natural resources, in coordination with
99.15the commissioner of labor and industry and the Workers' Compensation Advisory Council,
99.16shall make recommendations to the chairs of the house of representatives and senate
99.17committees and divisions with jurisdiction over the environment and natural resources on
99.18how to clarify the state's liability for workers' compensation in relation to volunteers of
99.19nonprofit organizations assisting with providing public services on lands administered
99.20by the commissioner of natural resources subject to Minnesota Statutes, section 175.007,
99.21subdivision 2.

99.22    Sec. 50. AGGREGATE RESOURCES TASK FORCE.
99.23    Subdivision 1. Creation; membership. (a) The Aggregate Resources Task Force
99.24consists of eight members appointed as follows:
99.25(1) the speaker of the house shall appoint four members of the house of representatives
99.26to include two members of the majority party and two members of the minority party, with
99.27one member being the chair of the committee with jurisdiction over aggregate mining; and
99.28(2) the senate Subcommittee on Committees of the Committee on Rules and
99.29Administration shall appoint four members of the senate to include two members of the
99.30majority party and two members of the minority party, with one member being the chair of
99.31the committee or division with jurisdiction over natural resources finance.
99.32(b) The appointing authorities must make their respective appointments no later
99.33than July 15, 2016.
100.1(c) The first meeting of the task force must be convened by the chairs of the house
100.2of representatives and senate committees specified in paragraph (a) who will serve as
100.3cochairs of the task force.
100.4    Subd. 2. Duties. The task force must study and provide recommendations on:
100.5(1) the Department of Natural Resources' and Metropolitan Council's aggregate
100.6mapping progress and needs;
100.7(2) the effectiveness of recent aggregate tax legislation and the use of the revenues
100.8collected by counties;
100.9(3) the use of state funds to preserve aggregate reserves; and
100.10(4) local land use and permitting issues, environmental review requirements, and the
100.11impacts of other state regulations on aggregate reserves.
100.12    Subd. 3. Report. No later than January 15, 2018, the task force shall submit a
100.13report to the chairs of the house of representatives and senate committees and divisions
100.14with jurisdiction over aggregate mining and natural resources finance containing the
100.15findings of the study.
100.16    Subd. 4. Expiration. The Aggregate Resources Task Force expires 45 days after
100.17the report and recommendations are delivered to the legislature or on June 30, 2018,
100.18whichever date is earlier.
100.19EFFECTIVE DATE.This section is effective the day following final enactment.

100.20    Sec. 51. APPROPRIATION REALLOCATION.
100.21Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and
100.22Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the
100.23Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal
100.24years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the
100.25Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi
100.26Riverfront Regional Parks in accordance with the most recent priority rankings that the
100.27Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This
100.28reallocation of funds is anticipated to result in $500,000 in federal funds to match extant
100.29parks and trails fund appropriations.
100.30EFFECTIVE DATE.This section is effective the day following final enactment.

100.31    Sec. 52. CITATION.
100.32Sections 23, 24, 25, 26, and 45 may be known and cited as "Sophia's Law."

101.1    Sec. 53. REPEALER.
101.2Minnesota Statutes 2014, section 116P.13, is repealed.
101.3EFFECTIVE DATE.This section is effective July 1, 2018, and any funds remaining
101.4in the Minnesota future resources fund on July 1, 2018, are transferred to the general fund.

101.5ARTICLE 4
101.6PUBLIC SAFETY AND CORRECTIONS

101.7
Section 1. APPROPRIATIONS.
101.8The sums shown in the column under "Appropriations" are added to the
101.9appropriations in Laws 2015, chapter 65, article 1, to the agencies and for the purposes
101.10specified in this article. The appropriations are from the general fund, or another named
101.11fund, and are available for the fiscal years indicated for each purpose. The figures "2016"
101.12and "2017" used in this article mean that the addition to the appropriation listed under
101.13them is available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively.
101.14Supplemental appropriations for the fiscal year ending June 30, 2016, are effective the
101.15day following final enactment.
101.16
APPROPRIATIONS
101.17
Available for the Year
101.18
Ending June 30
101.19
2016
2017

101.20
Sec. 2. SUPREME COURT
$
-0-
$
1,000,000
101.21For a competitive grant program established
101.22by the chief justice for the distribution of
101.23safe and secure courthouse fund grants to
101.24government entities responsible for providing
101.25or maintaining a courthouse or other facility
101.26where court proceedings are held. Grant
101.27recipients must provide a 50 percent nonstate
101.28match. This is a onetime appropriation and is
101.29available until June 30, 2019.

101.30
Sec. 3. DISTRICT COURTS
$
-0-
$
1,547,000
101.31To increase the juror per diem to $20 and the
101.32juror mileage reimbursement rate to 54 cents
101.33per mile.

102.1
Sec. 4. GUARDIAN AD LITEM BOARD
$
-0-
$
878,000
102.2To hire additional guardians ad litem to
102.3comply with federal and state mandates,
102.4and court orders for representing the best
102.5interests of children in juvenile and family
102.6court proceedings.

102.7
Sec. 5. HUMAN RIGHTS
$
-0-
$
180,000
102.8For a St. Cloud office.

102.9
Sec. 6. CORRECTIONS
102.10
Subdivision 1.Total Appropriation
$
4,341,000
$
15,426,000
102.11The amounts that may be spent for each
102.12purpose are specified in the following
102.13subdivisions.
102.14
Subd. 2.Correctional Institutions
4,037,000
10,671,000
102.15(a) Employee Compensation
102.16$1,427,000 in fiscal year 2016 and
102.17$7,512,000 in fiscal year 2017 are for
102.18employee compensation.
102.19(b) Challenge Incarceration Expansion
102.20$2,610,000 in fiscal year 2016 and $2,757,000
102.21in fiscal year 2017 are to increase capacity
102.22in the challenge incarceration program. The
102.23base for this activity is $3,263,000 in fiscal
102.24year 2018 and $3,623,000 in fiscal year 2019.
102.25(c) 24-Hour Nursing
102.26$375,000 in fiscal year 2017 is for 24-hour
102.27nursing coverage seven days a week at
102.28MCF-Shakopee.
102.29
Subd. 3.Community Services
241,000
2,566,000
102.30(a) Employee Compensation
103.1$241,000 in fiscal year 2016 and $860,000
103.2in fiscal year 2017 are for employee
103.3compensation.
103.4(b) Challenge Incarceration Expansion
103.5$406,000 in fiscal year 2017 is to increase
103.6capacity in the challenge incarceration
103.7program.
103.8(c) Reentry and Halfway Houses
103.9$300,000 in fiscal year 2017 is for grants to
103.10counties or groups of counties for reentry and
103.11halfway house services. Eligible programs
103.12must be proven to reduce recidivism. Grant
103.13recipients must provide a 50 percent nonstate
103.14match.
103.15(d) High-Risk Revocation Reduction
103.16Program
103.17$1,000,000 in fiscal year 2017 is to establish
103.18a high-risk revocation reduction program in
103.19the metropolitan area. The program shall
103.20provide sustained case planning, housing
103.21assistance, employment assistance, group
103.22mentoring, life skills programming, and
103.23transportation assistance to adult release
103.24violators who are being released from prison.
103.25
Subd. 4.Operations Support
63,000
2,189,000
103.26(a) Employee Compensation
103.27$63,000 in fiscal year 2016 and $339,000
103.28in fiscal year 2017 are for employee
103.29compensation.
103.30(b) Information Technology Critical
103.31Updates
104.1$1,850,000 in fiscal year 2017 is for
104.2information technology upgrades and
104.3staffing. This is a onetime appropriation.

104.4
Sec. 7. PUBLIC SAFETY
$
-0-
$
6,100,000
104.5
Appropriations by Fund
104.6
General
-0-
1,600,000
104.7
Trunk Highway
-0-
4,500,000
104.8The amounts that may be spent for each
104.9purpose are specified in the following
104.10paragraphs.
104.11(a) DNA Laboratory
104.12$630,000 is for the Bureau of Criminal
104.13Apprehension DNA laboratory, including the
104.14addition of six forensic scientists. The base
104.15for this activity is $1,000,000 in each of the
104.16fiscal years 2018 and 2019 for eight forensic
104.17scientists.
104.18(b) Children In Need of Services or in
104.19Out-Of-Home Placement
104.20$150,000 is for a grant to an organization
104.21that provides legal representation to children
104.22in need of protection or services and children
104.23in out-of-home placement. The grant is
104.24contingent upon a match in an equal amount
104.25from nonstate funds. The match may be
104.26in kind, including the value of volunteer
104.27attorney time, or in cash, or in a combination
104.28of the two.
104.29(c) Sex Trafficking
104.30$820,000 is for grants to state and local units
104.31of government for the following purposes:
105.1(1) to support new or existing
105.2multijurisdictional entities to investigate sex
105.3trafficking crimes; and
105.4(2) to provide technical assistance for
105.5sex trafficking crimes, including training
105.6and case consultation, to law enforcement
105.7agencies statewide.
105.8(d) State Patrol
105.9$4,500,000 is from the trunk highway fund
105.10to recruit, hire, train, and equip a State
105.11Patrol Academy. This amount is added to
105.12the appropriation in Laws 2015, chapter 75,
105.13article 1, section 5, subdivision 3. The base
105.14appropriation from the trunk highway fund
105.15for patrolling highways in each of fiscal
105.16years 2018 and 2019 is $87,492,000, which
105.17includes $4,500,000 each year for a State
105.18Patrol Academy.

105.19    Sec. 8. Minnesota Statutes 2014, section 171.07, subdivision 6, is amended to read:
105.20    Subd. 6. Medical alert identifier. Upon the written request of the applicant, the
105.21department shall issue a driver's license or Minnesota identification card bearing a graphic
105.22or written medical alert identifier. The applicant must request the medical alert identifier at
105.23the time the photograph or electronically produced image is taken. No specific medical
105.24information will be contained on the driver's license or Minnesota identification card.

105.25    Sec. 9. Minnesota Statutes 2014, section 171.07, subdivision 7, is amended to read:
105.26    Subd. 7. Living Will/Health Care Directive designation. (a) At the written request
105.27of the applicant and on payment of the required fee, the department shall issue, renew, or
105.28reissue a driver's license or Minnesota identification card bearing the graphic or written
105.29designation of a "Living Will/Health Care Directive" or an abbreviation thereof. The
105.30designation does not constitute delivery of a health care declaration under section 145B.05.
105.31(b) On payment of the required fee, the department shall issue a replacement or
105.32renewal license or identification card without the designation if requested by the applicant.
106.1(c) This subdivision does not impose any additional duty on a health care provider,
106.2as defined in section 145B.02, subdivision 6, or 145C.01, subdivision 6, beyond the duties
106.3imposed in chapter 145B or 145C.
106.4(d) For the purposes of this subdivision:
106.5(1) "living will" means a declaration made under section 145B.03; and
106.6(2) "health care directive" means a durable power of attorney for health care under
106.7section 145C.02, or any other written advance health care directive of the applicant that is
106.8authorized by statute or not prohibited by law.

106.9    Sec. 10. Minnesota Statutes 2014, section 171.07, subdivision 15, is amended to read:
106.10    Subd. 15. Veteran designation. (a) At the request of an eligible applicant and on
106.11payment of the required fee, the department shall issue, renew, or reissue to the applicant a
106.12driver's license or Minnesota identification card bearing a graphic or written designation of:
106.13(1) "Veteran"; or
106.14(2) "Veteran 100% T&P."
106.15(b) At the time of the initial application for the designation provided under this
106.16subdivision, the applicant must:
106.17(1) be a veteran, as defined in section 197.447;
106.18(2) have a certified copy of the veteran's discharge papers; and
106.19(3) if the applicant is seeking the disability designation under paragraph (a), clause
106.20(2), provide satisfactory evidence of a 100 percent total and permanent service-connected
106.21disability as determined by the United States Department of Veterans Affairs.
106.22(c) The commissioner of public safety is required to issue drivers' licenses and
106.23Minnesota identification cards with the veteran designation only after entering a new
106.24contract or in coordination with producing a new card design with modifications made
106.25as required by law.

106.26    Sec. 11. Minnesota Statutes 2014, section 243.166, subdivision 1b, is amended to read:
106.27    Subd. 1b. Registration required. (a) A person shall register under this section if:
106.28(1) the person was charged with or petitioned for a felony violation of or attempt to
106.29violate, or aiding, abetting, or conspiracy to commit, any of the following, and convicted
106.30of or adjudicated delinquent for that offense or another offense arising out of the same
106.31set of circumstances:
106.32(i) murder under section 609.185, paragraph (a), clause (2);
106.33(ii) kidnapping under section 609.25;
107.1(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; 609.345;
107.2609.3451, subdivision 3 ; or 609.3453; or
107.3(iv) indecent exposure under section 617.23, subdivision 3;
107.4(2) the person was charged with or petitioned for a violation of, or attempt to
107.5violate, or aiding, abetting, or conspiring to commit criminal abuse in violation of section
107.6609.2325, subdivision 1 , paragraph (b); false imprisonment in violation of section
107.7609.255, subdivision 2 ; solicitation, inducement, or promotion of the prostitution of a
107.8minor or engaging in the sex trafficking of a minor in violation of section 609.322; a
107.9prostitution offense involving a minor under the age of 13 years in violation of section
107.10609.324 , subdivision 1, paragraph (a); soliciting a minor to engage in sexual conduct in
107.11violation of section 609.352, subdivision 2 or 2a, clause (1); using a minor in a sexual
107.12performance in violation of section 617.246; or possessing pornographic work involving a
107.13minor in violation of section 617.247, and convicted of or adjudicated delinquent for that
107.14offense or another offense arising out of the same set of circumstances;
107.15(3) the person was sentenced as a patterned sex offender under section 609.3455,
107.16subdivision 3a
; or
107.17(4) the person was charged with or petitioned for, including pursuant to a court
107.18martial, violating a law of the United States, including the Uniform Code of Military Justice,
107.19similar to the offenses described in clause (1), (2), or (3), and convicted of or adjudicated
107.20delinquent for that offense or another offense arising out of the same set of circumstances.
107.21(b) A person also shall register under this section if:
107.22(1) the person was charged with or petitioned for an offense in another state that
107.23would be a violation of a law described in paragraph (a) if committed in this state and
107.24convicted of or adjudicated delinquent for that offense or another offense arising out
107.25of the same set of circumstances;
107.26(2) the person enters this state to reside, work, or attend school, or enters this state
107.27and remains for 14 days or longer; and
107.28(3) ten years have not elapsed since the person was released from confinement
107.29or, if the person was not confined, since the person was convicted of or adjudicated
107.30delinquent for the offense that triggers registration, unless the person is subject to a longer
107.31registration period under the laws of another state in which the person has been convicted
107.32or adjudicated, or is subject to lifetime registration.
107.33If a person described in this paragraph is subject to a longer registration period
107.34in another state or is subject to lifetime registration, the person shall register for that
107.35time period regardless of when the person was released from confinement, convicted, or
107.36adjudicated delinquent.
108.1(c) A person also shall register under this section if the person was committed
108.2pursuant to a court commitment order under Minnesota Statutes 2012, section 253B.185,
108.3chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of another state
108.4or the United States, regardless of whether the person was convicted of any offense.
108.5(d) A person also shall register under this section if:
108.6(1) the person was charged with or petitioned for a felony violation or attempt to
108.7violate any of the offenses listed in paragraph (a), clause (1), or a similar law of another
108.8state or the United States, or the person was charged with or petitioned for a violation of
108.9any of the offenses listed in paragraph (a), clause (2), or a similar law of another state or
108.10the United States;
108.11(2) the person was found not guilty by reason of mental illness or mental deficiency
108.12after a trial for that offense, or found guilty but mentally ill after a trial for that offense, in
108.13states with a guilty but mentally ill verdict; and
108.14(3) the person was committed pursuant to a court commitment order under section
108.15253B.18 or a similar law of another state or the United States.
108.16EFFECTIVE DATE.This section is effective August 1, 2016, and applies to crimes
108.17committed on or after that date.

108.18    Sec. 12. [325E.041] SENSORY TESTING RESEARCH.
108.19    Subdivision 1. Definitions. For purposes of this section, the following terms have
108.20the meanings given:
108.21(1) "sensory testing firm" means a business that tests consumer reaction to physical
108.22aspects of products for a third-party client;
108.23(2) "trained sensory assessors" means members of the public at least 21 years of age
108.24selected by sensory testing firms and trained for a minimum of one hour to test products;
108.25(3) "sensory testing facility" means a facility specifically designed as a controlled
108.26environment for testing; and
108.27(4) "department" means the Department of Public Safety.
108.28    Subd. 2. Allowed activities. Notwithstanding any law to the contrary, a sensory
108.29testing firm may possess and may purchase alcohol at retail or wholesale, and may allow
108.30consumption of that alcohol, by trained sensory assessors for testing purposes at their
108.31facility, provided that:
108.32(1) the firm must comply with section 340A.409 and all other state laws that do not
108.33conflict with this section;
108.34(2) firms choosing to serve alcohol must be licensed by the department, which may
108.35assess a fee sufficient to cover costs; and
109.1(3) records of testing protocols must be retained by the firm for at least one year.
109.2EFFECTIVE DATE.This section is effective the day following final enactment.

109.3    Sec. 13. Minnesota Statutes 2014, section 484.90, subdivision 6, is amended to read:
109.4    Subd. 6. Allocation. (a) In all cases prosecuted in district court by an attorney for a
109.5municipality or other subdivision of government within the county for violations of state
109.6statute, or of an ordinance; or charter provision, rule, or regulation of a city; all fines,
109.7penalties, and forfeitures collected shall be deposited in the state treasury and distributed
109.8according to this paragraph. For the purpose of this section, the county attorney shall be
109.9considered the attorney for any town in which a violation occurs. Except where a different
109.10disposition is provided by section 299D.03, subdivision 5, 484.841, 484.85, or other law,
109.11on or before the last day of each month, the courts shall pay over all fines, penalties, and
109.12forfeitures collected by the court administrator during the previous month as follows:
109.13(1) 100 percent of all fines or penalties for parking violations for which complaints
109.14and warrants have not been issued to the treasurer of the city or town in which the offense
109.15was committed; and
109.16(2) two-thirds of all other fines to the treasurer of the city or town in which the
109.17offense was committed and one-third credited to the state general fund.
109.18All other fines, penalties, and forfeitures collected by the court administrator shall be
109.19distributed by the courts as provided by law.
109.20(b) Fines, penalties, and forfeitures shall be distributed as provided in paragraph
109.21(a) when:
109.22(1) a city contracts with the county attorney for prosecutorial services under section
109.23484.87, subdivision 3 ;
109.24(2) a city has a population of 600 or less and has given the duty to prosecute cases to
109.25the county attorney under section 484.87; or
109.26(3) the attorney general provides assistance to the county attorney as permitted by law.

109.27    Sec. 14. [609.2233] FELONY ASSAULT MOTIVATED BY BIAS; INCREASED
109.28STATUTORY MAXIMUM SENTENCE.
109.29A person who violates section 609.221, 609.222, or 609.223 because of the victim's
109.30or another person's actual or perceived race, color, religion, sex, sexual orientation,
109.31disability as defined in section 363A.03, age, or national origin is subject to a statutory
109.32maximum penalty of 25 percent longer than the maximum penalty otherwise applicable.
110.1EFFECTIVE DATE.This section is effective August 1, 2016, and applies to crimes
110.2committed on or after that date.

110.3    Sec. 15. Minnesota Statutes 2015 Supplement, section 609.324, subdivision 1, is
110.4amended to read:
110.5    Subdivision 1. Engaging in, hiring, or agreeing to hire minor to engage in
110.6prostitution; penalties. (a) Whoever intentionally does any of the following may be
110.7sentenced to imprisonment for not more than 20 years or to payment of a fine of not
110.8more than $40,000, or both:
110.9(1) engages in prostitution with an individual under the age of 13 years; or
110.10(2) hires or offers or agrees to hire an individual under the age of 13 years to engage
110.11in sexual penetration or sexual contact; or
110.12(3) hires or offers or agrees to hire an individual who the actor reasonably believes
110.13to be under the age of 13 years to engage in sexual penetration or sexual contact.
110.14(b) Whoever intentionally does any of the following may be sentenced to
110.15imprisonment for not more than ten years or to payment of a fine of not more than
110.16$20,000, or both:
110.17(1) engages in prostitution with an individual under the age of 16 years but at least
110.1813 years; or
110.19(2) hires or offers or agrees to hire an individual under the age of 16 years but at
110.20least 13 years to engage in sexual penetration or sexual contact; or
110.21(3) hires or offers or agrees to hire an individual who the actor reasonably believes
110.22to be under the age of 16 years but at least 13 years to engage in sexual penetration or
110.23sexual contact.
110.24(c) Whoever intentionally does any of the following may be sentenced to
110.25imprisonment for not more than five years or to payment of a fine of not more than
110.26$10,000, or both:
110.27(1) engages in prostitution with an individual under the age of 18 years but at least
110.2816 years;
110.29(2) hires or offers or agrees to hire an individual under the age of 18 years but at
110.30least 16 years to engage in sexual penetration or sexual contact; or
110.31(3) hires or offers or agrees to hire an individual who the actor reasonably believes
110.32to be under the age of 18 years but at least 16 years to engage in sexual penetration or
110.33sexual contact.
110.34EFFECTIVE DATE.This section is effective August 1, 2016, and applies to crimes
110.35committed on or after that date.

111.1    Sec. 16. Laws 2015, chapter 65, article 1, section 18, is amended to read:
111.2
111.3
111.4
Sec. 18. AVIAN INFLUENZA AND
AGRICULTURAL EMERGENCY
RESPONSE.
111.5Notwithstanding Minnesota Statutes, section
111.612.221, subdivision 6 , for fiscal years
111.72016 and 2017 through June 30, 2019,
111.8only, the disaster contingency account,
111.9under Minnesota Statutes, section 12.221,
111.10subdivision 6
, may be used to pay for
111.11costs of eligible avian influenza emergency
111.12response activities for avian influenza and
111.13any agricultural emergency. By January 15,
111.142018, and again by January 15, 2020, the
111.15commissioner of management and budget
111.16must report to the chairs and ranking minority
111.17members of the senate Finance Committee
111.18and the house of representatives Committee
111.19on Ways and Means on any amount used
111.20for avian influenza the purposes authorized
111.21under this section.

111.22    Sec. 17. ST. CLOUD STATE UNIVERSITY; SPECIAL LICENSE.
111.23Notwithstanding any other law, local ordinance, or charter provision to the contrary,
111.24the city of St. Cloud may issue an on-sale wine and malt liquor intoxicating liquor license
111.25to St. Cloud State University. A license authorized by this section may be issued for space
111.26that is not compact and contiguous, provided that all the space is within the boundaries of
111.27the campus of St. Cloud State University and is included in the description of the licensed
111.28premises on the approved license application. The license under this section authorizes
111.29sales on all days of the week to persons attending events at Herb Brooks National Hockey
111.30Center, subject to the hours and days of sale restrictions in Minnesota Statutes, and any
111.31reasonable license conditions or restrictions imposed by the licensing authority. All other
111.32provisions of Minnesota Statutes not inconsistent with this section apply to the license
111.33authorized under this section.
112.1EFFECTIVE DATE.This section is effective upon approval by the St. Cloud City
112.2Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions
112.32 and 3.

112.4    Sec. 18. INDIAFEST; SPECIAL LICENSE.
112.5Notwithstanding any other law, local ordinance, or charter provision to the contrary,
112.6the city of St. Paul may issue a temporary on-sale intoxicating liquor license to the India
112.7Association of Minnesota, a nonprofit 501(c)(3) organization, for Indiafest on the grounds
112.8of the State Capitol. The license may authorize only the sale of intoxicating malt liquor
112.9and wine. All provisions of Minnesota Statutes not inconsistent with this section apply
112.10to the license authorized by this section.
112.11EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
112.12Council and compliance with Minnesota Statutes, section 645.021.

112.13    Sec. 19. MAJOR LEAGUE SOCCER STADIUM; SPECIAL LICENSE.
112.14Notwithstanding any other law, local ordinance, or charter provision to the contrary,
112.15the city of St. Paul may issue an on-sale intoxicating liquor license to the operator of the
112.16Major League Soccer stadium located in the city of St. Paul or to entities affiliated with it
112.17for operation of food and beverage concessions at the stadium. The license may authorize
112.18sales both to persons attending any and all events, and sales in a restaurant, bar, or banquet
112.19facility at the stadium. The license authorizes sales on all days of the week. All provisions
112.20of Minnesota Statutes not inconsistent with this section apply to the license under this
112.21section. The license may be issued for a space that is not compact and contiguous,
112.22provided that the licensed premises may include only the space within the stadium or on
112.23stadium premises or grounds, as described in the approved license application.
112.24EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
112.25Council and compliance with Minnesota Statutes, section 645.021.

112.26    Sec. 20. JANESVILLE; SPECIAL LICENSE.
112.27Notwithstanding any law or ordinance to the contrary, the city of Janesville may
112.28issue an on-sale intoxicating liquor license for the Prairie Ridge Golf Club that is located
112.29at 2000 North Main Street and is owned by the city. The provisions of Minnesota Statutes
112.30not inconsistent with this section apply to the license issued under this section. The city
112.31of Janesville is deemed the licensee under this section, and the relevant provisions of
113.1Minnesota Statutes apply to the licensee as if the establishment were a municipal liquor
113.2store.
113.3EFFECTIVE DATE.This section is effective upon approval by the Janesville City
113.4Council and compliance with Minnesota Statutes, section 645.021.

113.5    Sec. 21. CITY OF MINNEAPOLIS; SPECIAL LICENSE.
113.6The city of Minneapolis may issue an on-sale intoxicating liquor license to a
113.7restaurant located at 5000 Hiawatha Avenue, notwithstanding any law or local ordinance
113.8or charter provision to the contrary.
113.9EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
113.10City Council and compliance with Minnesota Statutes, section 645.021.

113.11    Sec. 22. REPEALER.
113.12Special Laws 1891, chapter 57, chapter XII, section 5, is repealed.
113.13EFFECTIVE DATE.This section is effective upon approval by the Duluth City
113.14Council and compliance with Minnesota Statutes, section 645.021.

113.15ARTICLE 5
113.16BROADBAND DEVELOPMENT

113.17
113.18
113.19
Section 1. DEPARTMENT OF
EMPLOYMENT AND ECONOMIC
DEVELOPMENT
$
-0-
$
35,000,000
113.20Border-To-Border Broadband
113.21Development Program. (a) $35,000,000 in
113.22fiscal year 2017 is from the general fund for
113.23deposit in the border-to-border broadband
113.24fund account under Minnesota Statutes,
113.25section 116J.396, to award grants under
113.26that section. Of this appropriation, no more
113.27than $5,000,000 may be used for grants to
113.28underserved areas. Of this appropriation, up
113.29to $1,000,000 may be used for administrative
113.30costs, including mapping. This is a onetime
113.31appropriation.
114.1(b) $500,000 may be awarded to projects
114.2that propose to expand the availability and
114.3adoption of broadband service to areas
114.4that contain a significant proportion of
114.5low-income households. For the purposes
114.6of this paragraph, "low-income households"
114.7means households whose household income
114.8is less than or equal to 200 percent of the
114.9most recent calculation of the United States
114.10federal poverty guidelines published by the
114.11United States Department of Health and
114.12Human Services, adjusted for family size.
114.13(c) If grant awards in any area are insufficient
114.14to fully expend the funds available for
114.15that area, the commissioner may reallocate
114.16unexpended funds to other areas.

114.17    Sec. 2. Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:
114.18116J.394 DEFINITIONS.
114.19(a) For the purposes of sections 116J.394 to 116J.396 116J.398, the following terms
114.20have the meanings given them.
114.21(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
114.22subdivision 1, paragraph (b).
114.23(c) "Broadband infrastructure" means networks of deployed telecommunications
114.24equipment and technologies necessary to provide high-speed Internet access and other
114.25advanced telecommunications services for end users.
114.26(d) "Commissioner" means the commissioner of employment and economic
114.27development.
114.28(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
114.29final leg connecting the broadband service provider's network to the end-use customer's
114.30on-premises telecommunications equipment.
114.31(f) "Middle-mile infrastructure" means broadband infrastructure that links a
114.32broadband service provider's core network infrastructure to last-mile infrastructure.
114.33(g) "Political subdivision" means any county, city, town, school district, special
114.34district or other political subdivision, or public corporation.
115.1(h) "Underserved areas" means areas of Minnesota in which households or
115.2businesses lack access to wire-line broadband service at speeds that meet the state
115.3broadband goals of ten to 20 at least 100 megabits per second download and five to ten
115.4at least 20 megabits per second upload.
115.5(i) "Unserved areas" means areas of Minnesota in which households or businesses
115.6lack access to wire-line broadband service, as defined in section 116J.39.
115.7EFFECTIVE DATE.This section is effective the day following final enactment.

115.8    Sec. 3. Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:
115.9    Subd. 4. Application process. (a) An eligible applicant must submit an application
115.10to the commissioner on a form prescribed by the commissioner. The commissioner shall
115.11develop administrative procedures governing the application and grant award process.
115.12The commissioner shall act as fiscal agent for the grant program and shall be responsible
115.13for receiving and reviewing grant applications and awarding grants under this section.
115.14(b) At least 30 days prior to the first day applications may be submitted each fiscal
115.15year, the commissioner must publish on the department's Web site the specific criteria
115.16and any quantitative weighting scheme or scoring system the commissioner will use to
115.17evaluate or rank applications and award grants under subdivision 6.
115.18EFFECTIVE DATE.This section is effective the day following final enactment.

115.19    Sec. 4. Minnesota Statutes 2014, section 116J.395, subdivision 5, is amended to read:
115.20    Subd. 5. Application contents. An applicant for a grant under this section shall
115.21provide the following information on the application:
115.22(1) the location of the project;
115.23(2) the kind and amount of broadband infrastructure to be purchased for the project;
115.24(3) evidence regarding the unserved or underserved nature of the community in
115.25which the project is to be located;
115.26(4) the number of households passed that will have access to broadband service as a
115.27result of the project, or whose broadband service will be upgraded as a result of the project;
115.28(5) significant community institutions that will benefit from the proposed project;
115.29(6) evidence of community support for the project;
115.30(7) the total cost of the project;
115.31(8) sources of funding or in-kind contributions for the project that will supplement
115.32any grant award; and
116.1(9) evidence that no later than six weeks before submission of the application the
116.2applicant contacted, in writing, all entities providing broadband service in the proposed
116.3project area to ask for each broadband service provider's plan to upgrade broadband service
116.4in the project area to speeds that meet or exceed the state's broadband speed goals in section
116.5237.012, subdivision 1, within the time frame specified in the proposed grant activities;
116.6(10) the broadband service providers' written responses to the inquiry made under
116.7clause (9); and
116.8(11) any additional information requested by the commissioner.
116.9EFFECTIVE DATE.This section is effective the day following final enactment.

116.10    Sec. 5. Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
116.11to read:
116.12    Subd. 5a. Challenge process. (a) Within three days of the close of the grant
116.13application process, the office shall publish on its Web site the proposed geographic
116.14broadband service area and the proposed broadband service speeds for each application
116.15submitted.
116.16(b) An existing broadband service provider in or proximate to the proposed project
116.17area may, within 30 days of publication of the information under paragraph (a), submit
116.18in writing to the commissioner a challenge to an application. A challenge must contain
116.19information demonstrating that:
116.20(1) the provider currently provides or has begun construction to provide broadband
116.21service to the proposed project area at speeds equal to or greater than the state speed goal
116.22contained in section 237.012, subdivision 1; or
116.23(2) the provider commits to complete construction of broadband infrastructure and
116.24provide broadband service in the proposed project area at speeds equal to or greater than
116.25the state speed goal contained in section 237.012, subdivision 1, no later than 18 months
116.26after the date grant awards are made under this section for the grant cycle under which the
116.27application was submitted.
116.28(c) The commissioner must evaluate the information submitted in a provider's
116.29challenge under this section, and is prohibited from funding a project if the commissioner
116.30determines that the provider's commitment to provide broadband service that meets the
116.31requirements of paragraph (b) in the proposed project area is credible.
116.32(d) If the commissioner denies funding to an applicant as a result of a broadband
116.33service provider's challenge made under this section, and the broadband service provider
116.34does not fulfill the provider's commitment to provide broadband service in the project
116.35area, the commissioner is prohibited from denying funding to an applicant as a result of
117.1a challenge by the same broadband service provider for the following two grant cycles,
117.2unless the commissioner determines that the broadband service provider's failure to
117.3fulfill the provider's commitment was the result of factors beyond the broadband service
117.4provider's control.
117.5EFFECTIVE DATE.This section is effective the day following final enactment.

117.6    Sec. 6. Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
117.7to read:
117.8    Subd. 8. Application evaluation report. By June 30 of each year, the Office of
117.9Broadband Development shall publish on the Department of Employment and Economic
117.10Development's Web site and provide to the chairs and ranking minority members of the
117.11senate and house of representatives committees with primary jurisdiction over broadband
117.12a list of all applications for grants under this section received during the previous year
117.13and, for each application:
117.14(1) the results of any quantitative weighting scheme or scoring system the
117.15commissioner used to award grants or rank the applications;
117.16(2) the grant amount requested; and
117.17(3) the grant amount awarded, if any.
117.18EFFECTIVE DATE.This section is effective the day following final enactment.
117.19The initial report submission required under this section is due June 30, 2016.

117.20    Sec. 7. [116J.397] UPDATED BROADBAND DEPLOYMENT DATA AND MAPS.
117.21(a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband
117.22Development shall contract with one or more independent organizations that have
117.23extensive experience working with Minnesota broadband providers to:
117.24(1) collect broadband deployment data from Minnesota providers, verify its accuracy
117.25through on-the-ground testing, and create state and county maps available to the public by
117.26April 15, 2017, and each April 15 thereafter, showing the availability of broadband service
117.27at various upload and download speeds throughout Minnesota;
117.28(2) analyze the deployment data collected to help inform future investments in
117.29broadband infrastructure; and
117.30(3) conduct business and residential surveys that measure broadband adoption and
117.31use in the state.
118.1(b) Data provided by a broadband provider under this section is nonpublic data
118.2under section 13.02, subdivision 9. Maps produced under this paragraph are public data
118.3under section 13.03.
118.4EFFECTIVE DATE.This section is effective the day following final enactment.

118.5    Sec. 8. [116J.398] BROADBAND PREVAILING WAGE EXEMPTION.
118.6Notwithstanding any other law to the contrary, section 116J.871 does not apply
118.7to a project receiving a grant under section 116J.395 for the construction, installation,
118.8remodeling, and repair of last-mile infrastructure, as defined under section 116J.394,
118.9paragraph (e).
118.10EFFECTIVE DATE.This section is effective the day following final enactment.

118.11    Sec. 9. Minnesota Statutes 2014, section 237.012, is amended to read:
118.12237.012 BROADBAND GOALS.
118.13    Subdivision 1. Universal access and high-speed goal. It is a state goal that as
118.14soon as possible, but no later than 2015, all state residents and businesses have access to
118.15high-speed broadband that provides minimum download speeds of ten to 20 megabits per
118.16second and minimum upload speeds of five to ten megabits per second.:
118.17(1) no later than 2022, all Minnesota businesses and homes have access to
118.18high-speed broadband that provides minimum download speeds of at least 25 megabits
118.19per second and minimum upload speeds of at least three megabits per second; and
118.20(2) no later than 2026, all Minnesota businesses and homes have access to at least
118.21one provider of broadband with download speeds of at least 100 megabits per second and
118.22upload speeds of at least 20 megabits per second.
118.23    Subd. 2. State broadband leadership position. It is a goal of the state that by
118.242015 2022 and thereafter, the state be in:
118.25(1) the top five states of the United States for broadband speed universally accessible
118.26to residents and businesses;
118.27(2) the top five states for broadband access; and
118.28(3) the top 15 when compared to countries globally for broadband penetration.
118.29EFFECTIVE DATE.This section is effective the day following final enactment.

118.30ARTICLE 6
118.31ENERGY

118.32    Section 1. Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:
119.1    Subdivision 1. Reimbursable costs. (a) The board shall provide reimbursement to
119.2eligible applicants for reimbursable costs.
119.3(b) The following costs are reimbursable for purposes of this chapter:
119.4(1) corrective action costs incurred by the applicant and documented in a form
119.5prescribed by the board, except the costs related to the physical removal of a tank.
119.6Corrective action costs incurred by the applicant include costs for physical removal of
119.7a tank when the physical removal is part of a corrective action, regardless of whether
119.8the tank is leaking at the time of removal, and the removal is directed or approved by
119.9the commissioner;
119.10(2) costs that the responsible person is legally obligated to pay as damages to third
119.11parties for bodily injury, property damage, or corrective action costs incurred by a third
119.12party caused by a release where the responsible person's liability for the costs has been
119.13established by a court order or court-approved settlement; and
119.14(3) up to 180 days of interest costs associated with the financing of corrective action
119.15and incurred by the applicant in a written extension of credit or loan that has been signed by
119.16the applicant and executed after July 1, 2002, provided that the applicant documents that:
119.17(i) the interest costs are incurred as a result of an extension of credit or loan from a
119.18financial institution; and
119.19(ii) the board has not considered the application within the applicable time frame
119.20specified in subdivision 2a, paragraph (c).
119.21Interest costs meeting the requirements of this clause are eligible only when they are
119.22incurred between the date a complete initial application is received by the board, or the
119.23date a complete supplemental application is received by the board, and the date that the
119.24board first notifies the applicant of its reimbursement determination. An application is
119.25complete when the information reasonably required or requested by the board's staff
119.26from the applicant has been received by the board's staff. Interest costs are not eligible
119.27for reimbursement to the extent they exceed two percentage points above the adjusted
119.28prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the
119.29extension of credit or loan was executed.
119.30(c) A cost for liability to a third party is incurred by the responsible person when an
119.31order or court-approved settlement is entered that sets forth the specific costs attributed
119.32to the liability. Except as provided in this paragraph, reimbursement may not be made
119.33for costs of liability to third parties until all eligible corrective action costs have been
119.34reimbursed. If a corrective action is expected to continue in operation for more than one
119.35year after it has been fully constructed or installed, the board may estimate the future
119.36expense of completing the corrective action and, after subtracting this estimate from the
120.1total reimbursement available under subdivision 3, reimburse the costs for liability to third
120.2parties. The total reimbursement may not exceed the limit set forth in subdivision 3.

120.3    Sec. 2. Minnesota Statutes 2014, section 115C.09, subdivision 3, is amended to read:
120.4    Subd. 3. Reimbursements; subrogation; appropriation. (a) The board shall
120.5reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs
120.6incurred at the site, except that the board may reimburse an eligible applicant from the
120.7fund for greater than 90 percent of the total reimbursable costs, if the applicant previously
120.8qualified for a higher reimbursement rate. For costs associated with a release from a tank
120.9in transport, the board may reimburse a maximum of $100,000.
120.10Not more than $1,000,000 may be reimbursed for costs associated with a single
120.11release, regardless of the number of persons eligible for reimbursement, and not more than
120.12$2,000,000 may be reimbursed for costs associated with a single tank facility release.
120.13(b) A reimbursement may not be made from the fund under this chapter until the
120.14board has determined that the costs for which reimbursement is requested were actually
120.15incurred and were reasonable.
120.16(c) When an applicant has obtained responsible competitive bids or proposals
120.17according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs
120.18for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal
120.19are presumed to be reasonable by the board, unless the costs of the low bid or proposal are
120.20substantially in excess of the average costs charged for similar tasks, procedures, services,
120.21materials, equipment, and tests in the same geographical area during the same time period.
120.22(d) When an applicant has obtained a minimum of two responsible competitive bids or
120.23proposals on forms prescribed by the board and where the rules promulgated adopted under
120.24this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures,
120.25services, materials, equipment and tests, the eligible costs of the low bid or proposal are
120.26deemed reasonable if the costs are at or below the maximums set forth in the rules.
120.27(e) Costs incurred for change orders executed as prescribed in rules promulgated
120.28adopted under this chapter after June 1, 1995, are presumed reasonable if the costs are
120.29at or below the maximums set forth in the rules, unless the costs in the change order are
120.30above those in the original bid or proposal or are unsubstantiated and inconsistent with the
120.31process and standards required by the rules.
120.32(f) A reimbursement may not be made from the fund in response to either an initial
120.33or supplemental application for costs incurred after June 4, 1987, that are payable under
120.34an applicable insurance policy, except that if the board finds that the applicant has made
121.1reasonable efforts to collect from an insurer and failed, the board shall reimburse the
121.2applicant.
121.3(g) If the board reimburses an applicant for costs for which the applicant has
121.4insurance coverage, the board is subrogated to the rights of the applicant with respect to
121.5that insurance coverage, to the extent of the reimbursement by the board. The board may
121.6request the attorney general to bring an action in district court against the insurer to enforce
121.7the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes
121.8an assignment by the applicant to the board of any rights of the applicant with respect to
121.9any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this
121.10paragraph, the board may instead request a return of the reimbursement under subdivision
121.115 and may employ against the applicant the remedies provided in that subdivision, except
121.12where the board has knowingly provided reimbursement because the applicant was denied
121.13coverage by the insurer.
121.14(h) Money in the fund is appropriated to the board to make reimbursements under
121.15this chapter. A reimbursement to a state agency must be credited to the appropriation
121.16account or accounts from which the reimbursed costs were paid.
121.17(i) The board may reduce the amount of reimbursement to be made under this
121.18chapter if it finds that the applicant has not complied with a provision of this chapter, a
121.19rule or order issued under this chapter, or one or more of the following requirements:
121.20(1) the agency was given notice of the release as required by section 115.061;
121.21(2) the applicant, to the extent possible, fully cooperated with the agency in
121.22responding to the release;
121.23(3) the state rules applicable after December 22, 1993, to operating an underground
121.24storage tank and appurtenances without leak detection;
121.25(4) the state rules applicable after December 22, 1998, to operating an underground
121.26storage tank and appurtenances without corrosion protection or spill and overfill
121.27protection; and
121.28(5) the state rule applicable after November 1, 1998, to operating an aboveground
121.29tank without a dike or other structure that would contain a spill at the aboveground tank site.
121.30(j) The reimbursement may be reduced as much as 100 percent for failure by
121.31the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In
121.32determining the amount of the reimbursement reduction, the board shall consider:
121.33(1) the reasonable determination by the agency that the noncompliance poses a
121.34threat to the environment;
121.35(2) whether the noncompliance was negligent, knowing, or willful;
121.36(3) the deterrent effect of the award reduction on other tank owners and operators;
122.1(4) the amount of reimbursement reduction recommended by the commissioner; and
122.2(5) the documentation of noncompliance provided by the commissioner.
122.3(k) An applicant may request that the board issue a multiparty check that includes each
122.4lender who advanced funds to pay the costs of the corrective action or to each contractor
122.5or consultant who provided corrective action services. This request must be made by filing
122.6with the board a document, in a form prescribed by the board, indicating the identity of the
122.7applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the
122.8location of the corrective action. The applicant must submit a request for the issuance
122.9of a multiparty check for each application submitted to the board. Payment under this
122.10paragraph does not constitute the assignment of the applicant's right to reimbursement
122.11to the consultant, contractor, or lender. The board has no liability to an applicant for a
122.12payment issued as a multiparty check that meets the requirements of this paragraph.

122.13    Sec. 3. Minnesota Statutes 2014, section 115C.13, is amended to read:
122.14115C.13 REPEALER.
122.15Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05,
122.16115C.06 , 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11,
122.17115C.112 , 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2017 2022.

122.18    Sec. 4. Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:
122.19    Subd. 12. Exemption for small gas utility franchise. (a) A municipality may file
122.20with the commission a resolution of its governing body requesting exemption from the
122.21provisions of this section for a public utility that is under a franchise with the municipality
122.22to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in
122.23the municipality as long as the public utility serves no more than a total of 2,000 5,000
122.24customers.
122.25(b) The commission shall grant an exemption from this section for that portion of
122.26a public utility's business that is requested by each municipality it serves. Furthermore,
122.27the commission shall also grant the public utility an exemption from this section for any
122.28service provided outside of a municipality's border that is considered by the commission
122.29to be incidental. The public utility shall file with the commission and the department
122.30all initial and subsequent changes in rates, tariffs, and contracts for service outside the
122.31municipality at least 30 days in advance of implementation.
122.32(c) However, the commission shall require the utility to adopt the commission's
122.33policies and procedures governing disconnection during cold weather. The utility shall
122.34annually submit a copy of its municipally approved rates to the commission.
123.1(d) In all cases covered by this subdivision in which an exemption for service outside
123.2of a municipality is granted, the commission may initiate an investigation under section
123.3216B.17 , on its own motion or upon complaint from a customer.
123.4(e) If a municipality files with the commission a resolution of its governing body
123.5rescinding the request for exemption, the commission shall regulate the public utility's
123.6business in that municipality under this section.
123.7EFFECTIVE DATE.This section is effective the day following final enactment.

123.8    Sec. 5. [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
123.9ASSOCIATION.
123.10A cooperative electric association that has elected to be subject to rate regulation
123.11under section 216B.026 is eligible to file with the commission for approval an adjustment
123.12for real and personal property taxes, fees, and permits.
123.13EFFECTIVE DATE.This section is effective the day following final enactment.

123.14    Sec. 6. Minnesota Statutes 2014, section 216B.1691, subdivision 10, is amended to read:
123.15    Subd. 10. Utility acquisition of resources. A competitive resource acquisition
123.16process established by the commission prior to June 1, 2007, shall not apply to a utility
123.17for the construction, ownership, and operation of generation facilities used to satisfy the
123.18requirements of this section unless, upon a finding that it is in the public interest, the
123.19commission issues an order on or after June 1, 2007, that requires compliance by a utility
123.20with a competitive resource acquisition process. A utility that owns a nuclear generation
123.21facility and intends to construct, own, or operate facilities under this section shall file with
123.22the commission on or before March 1, 2008, a renewable energy plan setting forth the
123.23manner in which the utility proposes to meet the requirements of this section, including
123.24a proposed schedule for purchasing renewable energy from C-BED and non-C-BED
123.25projects. The utility shall update the plan as necessary in its filing under section 216B.2422.
123.26The commission shall approve the plan unless it determines, after public hearing and
123.27comment, that the plan is not in the public interest. As part of its determination of public
123.28interest, the commission shall consider the plan's allocation of projects among C-BED,
123.29non-C-BED, and utility-owned projects, impact on balancing the state's interest in:
123.30    (1) promoting the policy of economic development in rural areas through the
123.31development of renewable energy projects, as expressed in subdivision 9;
123.32    (2) maintaining the reliability of the state's electric power grid; and
123.33    (3) minimizing cost impacts on ratepayers.
124.1EFFECTIVE DATE.This section is effective the day following final enactment.

124.2    Sec. 7. Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to read:
124.3    Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving
124.4goals for energy conservation improvement expenditures and shall evaluate an energy
124.5conservation improvement program on how well it meets the goals set.
124.6    (b) Each individual utility and association shall have an annual energy-savings
124.7goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
124.8commissioner under paragraph (d). The savings goals must be calculated based on the
124.9most recent three-year weather-normalized average. A utility or association may elect to
124.10carry forward energy savings in excess of 1.5 percent for a year to the succeeding three
124.11calendar years, except that savings from electric utility infrastructure projects allowed
124.12under paragraph (d) may be carried forward for five years. A particular energy savings can
124.13be used only for one year's goal.
124.14    (c) The commissioner must adopt a filing schedule that is designed to have all
124.15utilities and associations operating under an energy-savings plan by calendar year 2010.
124.16    (d) In its energy conservation improvement plan filing, a utility or association may
124.17request the commissioner to adjust its annual energy-savings percentage goal based on
124.18its historical conservation investment experience, customer class makeup, load growth, a
124.19conservation potential study, or other factors the commissioner determines warrants an
124.20adjustment. The commissioner may not approve a plan of a public utility that provides for
124.21an annual energy-savings goal of less than one percent of gross annual retail energy sales
124.22from energy conservation improvements.
124.23    A utility or association may include in its energy conservation plan energy savings
124.24from electric utility infrastructure projects approved by the commission under section
124.25216B.1636 or waste heat recovery converted into electricity projects that may count as
124.26energy savings in addition to a minimum energy-savings goal of at least one percent for
124.27energy conservation improvements. Energy savings from electric utility infrastructure
124.28projects, as defined in section 216B.1636, may be included in the energy conservation
124.29plan of a municipal utility or cooperative electric association. Electric utility infrastructure
124.30projects must result in increased energy efficiency greater than that which would have
124.31occurred through normal maintenance activity.
124.32    (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
124.33requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
124.34energy-savings goal established in this subdivision.
125.1    (f) An association or utility is not required to make energy conservation investments
125.2to attain the energy-savings goals of this subdivision that are not cost-effective even
125.3if the investment is necessary to attain the energy-savings goals. For the purpose of
125.4this paragraph, in determining cost-effectiveness, the commissioner shall consider the
125.5costs and benefits to ratepayers, the utility, participants, and society. In addition, the
125.6commissioner shall consider the rate at which an association or municipal utility is
125.7increasing its energy savings and its expenditures on energy conservation.
125.8    (g) On an annual basis, the commissioner shall produce and make publicly available
125.9a report on the annual energy savings and estimated carbon dioxide reductions achieved
125.10by the energy conservation improvement programs for the two most recent years for
125.11which data is available. The commissioner shall report on program performance both in
125.12the aggregate and for each entity filing an energy conservation improvement plan for
125.13approval or review by the commissioner.
125.14    (h) By January 15, 2010, the commissioner shall report to the legislature whether
125.15the spending requirements under subdivisions 1a and 1b are necessary to achieve the
125.16energy-savings goals established in this subdivision.
125.17EFFECTIVE DATE.This section is effective the day following final enactment.

125.18    Sec. 8. Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:
125.19    Subd. 8. Exemptions. (a) This section does not apply to:
125.20(1) cogeneration or small power production facilities as defined in the Federal Power
125.21Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
125.22paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
125.23than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
125.24any case where the commission has determined after being advised by the attorney general
125.25that its application has been preempted by federal law;
125.26(2) a high-voltage transmission line proposed primarily to distribute electricity to
125.27serve the demand of a single customer at a single location, unless the applicant opts to
125.28request that the commission determine need under this section or section 216B.2425;
125.29(3) the upgrade to a higher voltage of an existing transmission line that serves the
125.30demand of a single customer that primarily uses existing rights-of-way, unless the applicant
125.31opts to request that the commission determine need under this section or section 216B.2425;
125.32(4) a high-voltage transmission line of one mile or less required to connect a new or
125.33upgraded substation to an existing, new, or upgraded high-voltage transmission line;
125.34(5) conversion of the fuel source of an existing electric generating plant to using
125.35natural gas;
126.1(6) the modification of an existing electric generating plant to increase efficiency,
126.2as long as the capacity of the plant is not increased more than ten percent or more than
126.3100 megawatts, whichever is greater; or
126.4(7) a wind energy conversion system or solar electric generation facility if the system
126.5or facility is owned and operated by an independent power producer and the electric output
126.6of the system or facility is not sold to an entity that provides retail service in Minnesota
126.7or wholesale electric service to another entity in Minnesota other than an entity that is a
126.8federally recognized regional transmission organization or independent system operator; or
126.9(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
126.102, or a solar energy generating large energy facility, as defined in section 216B.2421,
126.11subdivision 2, engaging in a repowering project that:
126.12(i) will not result in the facility exceeding the nameplate capacity under its most
126.13recent interconnection agreement; or
126.14(ii) will result in the facility exceeding the nameplate capacity under its most recent
126.15interconnection agreement, provided that the Midcontinent Independent System Operator
126.16has provided a signed generator interconnection agreement that reflects the expected
126.17net power increase.
126.18(b) For the purpose of this subdivision, "repowering project" means:
126.19(1) modifying a large wind energy conversion system or a solar energy generating
126.20large energy facility to increase its efficiency without increasing its nameplate capacity;
126.21(2) replacing turbines in a large wind energy conversion system without increasing
126.22the nameplate capacity of the system; or
126.23(3) increasing the nameplate capacity of a large wind energy conversion system.

126.24    Sec. 9. Minnesota Statutes 2014, section 216C.20, subdivision 3, is amended to read:
126.25    Subd. 3. Parking ramp. No enclosed structure or portion of an enclosed structure
126.26constructed after January 1, 1978, and used primarily as a commercial parking facility for
126.27three or more motor vehicles shall be heated. Incidental heating resulting from building
126.28exhaust air passing through a parking facility shall not be prohibited, provided that
126.29substantially all useful heat has previously been removed from the air. The commissioner
126.30of commerce may grant an exemption from this subdivision if the commercial parking
126.31is integrated within a facility that has both public and private uses, the benefits of the
126.32exemption to taxpayers exceed the costs, and all appropriate energy efficiency measures
126.33have been considered.

126.34    Sec. 10. Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:
127.1    Subd. 5. Environmental review. (a) The commissioner of the Department of
127.2Commerce shall prepare for the commission an environmental impact statement on each
127.3proposed large electric generating plant or high-voltage transmission line for which a
127.4complete application has been submitted. The commissioner shall not consider whether
127.5or not the project is needed. No other state environmental review documents shall be
127.6required. The commissioner shall study and evaluate any site or route proposed by an
127.7applicant and any other site or route the commission deems necessary that was proposed in
127.8a manner consistent with rules concerning the form, content, and timeliness of proposals
127.9for alternate sites or routes.
127.10(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is
127.11a large electric power generating plant and is not proposed by a utility, the commissioner
127.12must make a finding in the environmental impact statement whether the project is likely to
127.13result in a net reduction of carbon dioxide emissions, considering both the utility providing
127.14electric service to the proposed cogeneration facility and any reduction in carbon dioxide
127.15emissions as a result of increased efficiency from the production of thermal energy on the
127.16part of the customer operating or owning the proposed cogeneration facility.
127.17EFFECTIVE DATE.This section is effective the day following final enactment.

127.18    Sec. 11. Minnesota Statutes 2014, section 216H.01, is amended by adding a
127.19subdivision to read:
127.20    Subd. 1a. Cogeneration facility or combined heat and power facility.
127.21"Cogeneration facility" or "combined heat and power facility" means a facility that:
127.22(1) has the meaning given in United States Code, title 16, section 796, clause (18),
127.23paragraph (A); and
127.24(2) meets the applicable operating and efficiency standards contained in Code of
127.25Federal Regulations, title 18, part 292.205.
127.26EFFECTIVE DATE.This section is effective the day following final enactment.

127.27    Sec. 12. Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:
127.28    Subdivision 1. Definition; new large energy facility. For the purpose of this
127.29section, "new large energy facility" means a large energy facility, as defined in section
127.30216B.2421, subdivision 2 , clause (1), that is not in operation as of January 1, 2007, but
127.31does not include a facility that (1) uses natural gas as a primary fuel, (2) is a cogeneration
127.32facility or combined heat and power facility located in the electric service area of a public
127.33utility, as defined in section 216B.02, subdivision 4, or is designed to provide peaking,
128.1intermediate, emergency backup, or contingency services, (3) uses a simple cycle or
128.2combined cycle turbine technology, and (4) is capable of achieving full load operations
128.3within 45 minutes of startup for a simple cycle facility, or is capable of achieving
128.4minimum load operations within 185 minutes of startup for a combined cycle facility.
128.5EFFECTIVE DATE.This section is effective the day following final enactment.

128.6    Sec. 13. Minnesota Statutes 2014, section 373.48, subdivision 3, is amended to read:
128.7    Subd. 3. Joint purchase of energy and acquisition of generation projects;
128.8financing. (a) A county may enter into agreements under section 471.59 with other
128.9counties for joint purchase of energy or joint acquisition of interests in projects. A county
128.10that enters into a multiyear agreement for purchase of energy or acquires an interest in
128.11a project, including C-BED projects pursuant to section 216B.1612, subdivision 9, may
128.12finance the estimated cost of the energy to be purchased during the term of the agreement
128.13or the cost to the county of the interest in the project by the issuance of revenue bonds of
128.14the county, including clean renewable energy revenue bonds, provided that the annual debt
128.15service on all bonds issued under this section, together with the amounts to be paid by the
128.16county in any year for the purchase of energy under agreements entered into under this
128.17section, must not exceed the estimated revenues of the project.
128.18(b) An agreement entered into under section 471.59 as provided by this section
128.19may provide that:
128.20(1) each county issues bonds to pay their respective shares of the cost of the projects;
128.21(2) one of the counties issues bonds to pay the full costs of the project and that the
128.22other participating counties pay any available revenues of the project and pledge the
128.23revenues to the county that issues the bonds; or
128.24(3) the joint powers board issues revenue bonds to pay the full costs of the project
128.25and that the participating counties pay any available revenues of the project under this
128.26subdivision and pledge the revenues to the joint powers entity for payment of the revenue
128.27bonds.
128.28EFFECTIVE DATE.This section is effective the day following final enactment.

128.29    Sec. 14. Laws 2001, chapter 130, section 3, is amended to read:
128.30    Sec. 3. ASSESSMENT.
128.31    A propane education and research council, established and certified pursuant to
128.32section 2, may assess propane producers and retail marketers an amount not to exceed one
128.33mill the maximum assessment authorized in United States Code, title 15, section 6405(a),
129.1per gallon of odorized propane in a manner established by the council in compliance with
129.2United States Code, title 15, section 6405, subsections (a) to (c). Propane producers and
129.3retail marketers shall be responsible for the amounts assessed.

129.4    Sec. 15. Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to
129.5read:
129.6EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2015
129.7January 1, 2016, and applies to applications for reimbursement on or after that date.
129.8EFFECTIVE DATE.This section is effective retroactively from May 5, 2014.

129.9    Sec. 16. REPEALER.
129.10Minnesota Statutes 2014, sections 216B.1612; and 216C.39, are repealed.
129.11EFFECTIVE DATE.This section is effective the day following final enactment.

129.12ARTICLE 7
129.13ECONOMIC DEVELOPMENT

129.14
Section 1. APPROPRIATIONS
129.15    The sums shown in the columns under "Appropriations" are added to or, if shown
129.16in parentheses, subtracted from the appropriations in Laws 2015, First Special Session,
129.17chapter 1, or other law to the specified agencies. The appropriations are from the general
129.18fund, or another named fund, and are available for the fiscal years indicated for each
129.19purpose. The figures "2016" and "2017" used in this article mean that the appropriations
129.20listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
129.21respectively. Appropriations for the fiscal year ending June 30, 2016, are effective the day
129.22following final enactment. Reductions may be taken in either fiscal year.
129.23
APPROPRIATIONS
129.24
Available for the Year
129.25
Ending June 30
129.26
2016
2017

129.27
129.28
Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
129.29
Subdivision 1.Total Appropriation
$
-0-
$
11,721,000
130.1
Appropriations by Fund
130.2
General
-0-
7,271,000
130.3
130.4
Workforce
Development
-0-
4,450,000
130.5The amounts that may be spent for each
130.6purpose are specified in the following
130.7subdivisions.
130.8
130.9
Subd. 2.Business and Community
Development
-0-
8,021,000
130.10
Appropriations by Fund
130.11
General
-0-
7,271,000
130.12
130.13
Workforce
Development
-0-
750,000
130.14(a) $9,000,000 in fiscal year 2017 is a
130.15onetime reduction in the general fund
130.16appropriation for the Minnesota investment
130.17fund under Minnesota Statutes, section
130.18116J.8731. The base funding for this purpose
130.19is $11,000,000 in fiscal year 2018 and each
130.20fiscal year thereafter.
130.21(b) $11,500,000 in fiscal year 2017 is a
130.22onetime reduction in the general fund
130.23appropriation for the Minnesota job creation
130.24fund under Minnesota Statutes, section
130.25116J.8748. The base funding for this
130.26program is $6,500,000 in fiscal year 2018
130.27and each fiscal year thereafter.
130.28(c) $2,000,000 in fiscal year 2017 is for the
130.29redevelopment program under Minnesota
130.30Statutes, section 116J.571. This is a onetime
130.31appropriation.
130.32(d) $1,220,000 in fiscal year 2017 is for a
130.33grant to the Duluth North Shore Sanitary
130.34District to retire debt of the district in order
130.35to bring the district's monthly wastewater
131.1rates in line with those of similarly situated
131.2facilities across the state. This is a onetime
131.3appropriation.
131.4(e) $300,000 in fiscal year 2017 is from the
131.5workforce development fund for expansion
131.6of business assistance services provided by
131.7business development specialists located in
131.8the Northwest Region, Northeast Region,
131.9West Central Region, Southwest Region,
131.10Southeast Region, and Twin Cites Metro
131.11Region offices established throughout the
131.12state. Funds under this section may be used
131.13to provide services including, but not limited
131.14to, business start-ups; expansion; location or
131.15relocation; finance; regulatory and permitting
131.16assistance; and other services determined
131.17by the commissioner. The commissioner
131.18may also use funds under this section to
131.19increase the number of business development
131.20specialists in each region of the state,
131.21increase and expand the services provided
131.22through each regional office, and publicize
131.23the services available and provide outreach
131.24to communities in each region regarding
131.25services and assistance available through the
131.26business development specialist program.
131.27This is a onetime appropriation.
131.28(f) $50,000 in fiscal year 2017 is from the
131.29workforce development fund to enhance
131.30the outreach and public awareness activities
131.31of the Bureau of Small Business under
131.32Minnesota Statutes, section 116J.68. This is
131.33a onetime appropriation.
131.34(g) $100,000 in fiscal year 2017 is from
131.35the general fund for an easy-to-understand
132.1manual to instruct aspiring business owners
132.2in how to start a child care business. The
132.3commissioner shall work in consultation
132.4with relevant state and local agencies
132.5and affected stakeholders to produce the
132.6manual. The manual must be made available
132.7electronically to interested persons. This is a
132.8onetime appropriation and is available until
132.9June 30, 2019.
132.10(h) $2,500,000 in fiscal year 2017 is for
132.11grants to initiative foundations to provide
132.12financing for business startups, expansions,
132.13and maintenance; and for business ownership
132.14transition and succession. This is a onetime
132.15appropriation. Of the amount appropriated:
132.16(1) $357,000 is for a grant to the Southwest
132.17Initiative Foundation;
132.18(2) $357,000 is for a grant to the West Central
132.19Initiative Foundation;
132.20(3) $357,000 is for a grant to the Southern
132.21Minnesota Initiative Foundation;
132.22(4) $357,000 is for a grant to the Northwest
132.23Minnesota Foundation;
132.24(5) $357,000 is for a grant to the Initiative
132.25Foundation;
132.26(6) $357,000 is for a grant to the Northland
132.27Foundation; and
132.28(7) $357,000 is for a grant for the Minnesota
132.29emerging entrepreneur program under
132.30Minnesota Statutes, chapter 116M. Funds
132.31available under this clause must be allocated
132.32as follows:
133.1(i) 50 percent of the funds must be allocated
133.2for projects in the counties of Dakota,
133.3Ramsey, and Washington; and
133.4(ii) 50 percent of the funds must be allocated
133.5for projects in the counties of Anoka, Carver,
133.6Hennepin, and Scott.
133.7(i) $600,000 in fiscal year 2017 is for a grant
133.8to a city of the second class that is designated
133.9as an economically depressed area by the
133.10United States Department of Commerce for
133.11economic development, redevelopment, and
133.12job creation programs and projects. This is a
133.13onetime appropriation and is available until
133.14June 30, 2019.
133.15(j) $4,500,000 in fiscal year 2017 is
133.16for a grant to the Minnesota Film and
133.17TV Board for the film production jobs
133.18program under Minnesota Statutes, section
133.19116U.26. This appropriation is in addition
133.20to the appropriation in Laws 2015, First
133.21Special Session chapter 1, article 1,
133.22section 2, subdivision 2. This is a onetime
133.23appropriation.
133.24(k) $3,651,000 in fiscal year 2017 is from the
133.25general fund for a grant to Mille Lacs County
133.26to develop and operate the Lake Mille Lacs
133.27area economic relief program established in
133.28section 45. This is a onetime appropriation.
133.29(l) $500,000 in fiscal year 2017 is from the
133.30general fund for grants to local communities
133.31outside of the metropolitan area as defined
133.32under Minnesota Statutes, section 473.121,
133.33subdivision 2, to increase the supply of
133.34quality child care providers in order to
133.35support regional economic development.
134.1Grant recipients must match state funds on a
134.2dollar-for-dollar basis. Grant funds available
134.3under this section must be used to implement
134.4solutions to reduce the child care shortage
134.5in the state, including but not limited to
134.6funding for child care business start-up or
134.7expansion, training, facility modifications
134.8or improvements required for licensing,
134.9and assistance with licensing and other
134.10regulatory requirements. In awarding grants,
134.11the commissioner must give priority to
134.12communities in greater Minnesota that have
134.13documented a shortage of child care providers
134.14in the area. This is a onetime appropriation
134.15and is available until June 30, 2019.
134.16By September 30, 2017, grant recipients must
134.17report to the commissioner on the outcomes
134.18of the grant program, including but not
134.19limited to the number of new providers, the
134.20number of additional child care provider jobs
134.21created, the number of additional child care
134.22slots, and the amount of local funds invested.
134.23By January 1, 2018, the commissioner must
134.24report to the standing committees of the
134.25legislature having jurisdiction over child care
134.26and economic development on the outcomes
134.27of the program to date.
134.28(m) $100,000 in fiscal year 2017 is from
134.29the general fund for a grant to the city of
134.30Madelia to provide match funding for a
134.31federal Economic Development Agency
134.32technical assistance grant. This is a onetime
134.33appropriation.
135.1(n) $10,000,000 in fiscal year 2017 is for
135.2deposit in the Minnesota 21st century fund.
135.3This is a onetime appropriation.
135.4(o) $400,000 in fiscal year 2017 is from the
135.5workforce development fund for grants to
135.6small business development centers under
135.7Minnesota Statutes, section 116J.68. Funds
135.8made available under this section may be
135.9used to match funds under the federal Small
135.10Business Development Center (SBDC)
135.11program under United States Code, title 15,
135.12section 648, provide consulting and technical
135.13services, or to build additional SBDC
135.14network capacity to serve entrepreneurs
135.15and small businesses. The commissioner
135.16shall allocate funds equally among the nine
135.17regional centers and lead center. This is a
135.18onetime appropriation.
135.19(p) $2,600,000 in fiscal year 2017 is for
135.20a transfer to the Board of Regents of the
135.21University of Minnesota for academic and
135.22applied research through MnDRIVE at the
135.23Natural Resources Research Institute to
135.24develop new technologies that enhance the
135.25long-term viability of the Minnesota mining
135.26industry. The research must be done in
135.27consultation with the Mineral Coordinating
135.28Committee established by Minnesota
135.29Statutes, section 93.0015. This is a onetime
135.30transfer.
135.31(q) Of the amount appropriated in fiscal
135.32year 2017 for the Minnesota Investment
135.33Fund in Laws 2015, First Special Session
135.34chapter 1, article 1, section 2, subdivision 2,
135.35paragraph (a), $450,000 is for a grant to the
136.1Lake Superior-Poplar River Water District to
136.2acquire interests in real property, engineer,
136.3design, permit, and construct infrastructure
136.4to transport and treat water from Lake
136.5Superior through the Poplar River Valley to
136.6serve domestic, irrigation, commercial, stock
136.7watering, and industrial water users. This
136.8grant does not require a local match. This
136.9is a onetime appropriation. This amount is
136.10available until June 30, 2019.
136.11
Subd. 3.Workforce Development
-0-
1,900,000
136.12This appropriation is from the workforce
136.13development fund.
136.14(a) $500,000 in fiscal year 2017 is from the
136.15workforce development fund for rural career
136.16counseling coordinators in the workforce
136.17service areas and for the purposes specified
136.18in Minnesota Statutes, section 116L.667.
136.19This appropriation is for increases to existing
136.20applicants who were awarded grants in fiscal
136.21years 2016 and 2017.
136.22(b) $500,000 in fiscal year 2017 is from the
136.23workforce development fund for a grant to
136.24Occupational Development Corporation, Inc.
136.25in the city of Buhl to provide training and
136.26employment opportunities for people with
136.27disabilities and disadvantaged workers. This
136.28is a onetime appropriation.
136.29(c) $400,000 in fiscal year 2017 is from
136.30the workforce development fund for
136.31a grant to Northern Bedrock Historic
136.32Preservation Corps for the pathway to the
136.33preservation trades program for recruitment
136.34of corps members, engagement of technical
136.35specialists, development of a certificate
137.1program, and skill development in historic
137.2preservation for youth ages 18 to 25. This is
137.3a onetime appropriation.
137.4(d) $500,000 in fiscal year 2017 is from the
137.5workforce development fund for a grant to
137.6the North East Higher Education District to
137.7purchase equipment for training programs
137.8due to increased demand for job training
137.9under the state dislocated worker program.
137.10This is a onetime appropriation and is
137.11available until June 30, 2018.
137.12
Subd. 4.Vocational rehabilitation
-0-
1,800,000
137.13This appropriation is from the workforce
137.14development fund.
137.15(a) $800,000 in fiscal year 2017 is from
137.16the workforce development fund for grants
137.17to day training and habilitation providers
137.18to provide innovative employment options
137.19and to advance community integration for
137.20persons with disabilities as required under
137.21the Minnesota Olmstead Plan. Eligible
137.22day training and habilitation providers are
137.23those who certify that they do not possess
137.24a certification as provided by section 14(c)
137.25of the Fair Labor Standards Act. Of this
137.26amount, $250,000 is for a pilot program
137.27for home-based, technology-enhanced
137.28monitoring of persons with disabilities. This
137.29is a onetime appropriation and is available
137.30until June 30, 2018.
137.31(b) $1,000,000 in fiscal year 2017 is
137.32from the workforce development fund for
137.33rate increases to providers of extended
137.34employment services for persons with severe
138.1disabilities under Minnesota Statutes, section
138.2268A.15. This is a onetime appropriation.

138.3
138.4
Sec. 3. DEPARTMENT OF LABOR AND
INDUSTRY
$
-0-
$
350,000
138.5
Appropriations by Fund
138.6
General
100,000
138.7
138.8
Workforce
Development
250,000
138.9(a) $250,000 in fiscal year 2017 is from
138.10the workforce development fund for the
138.11apprenticeship program under Minnesota
138.12Statutes, chapter 178. This amount is added
138.13to the base appropriation for this purpose.
138.14(b) $100,000 in fiscal year 2017 is to
138.15provide outreach and education concerning
138.16requirements under state or federal law
138.17governing removal of architectural barriers
138.18that limit access to public accommodations
138.19by persons with disabilities and resources
138.20that are available to comply with
138.21those requirements. This is a onetime
138.22appropriation.

138.23
Sec. 4. EXPLORE MINNESOTA TOURISM
$
-0-
$
1,073,000
138.24(a) $300,000 in fiscal year 2017 is for a
138.25grant to the Mille Lacs Tourism Council
138.26to enhance marketing activities related to
138.27tourism promotion in the Mille Lacs Lake
138.28area. This is a onetime appropriation.
138.29(b) $773,000 in fiscal year 2017 is to
138.30establish a pilot project to assist in funding
138.31and securing major events benefiting
138.32communities throughout the state. The pilot
138.33project must measure the economic impact
138.34of visitors on state and local economies,
139.1increased lodging and nonlodging sales taxes
139.2in addition to visitor spending, and increased
139.3media awareness of the state as an event
139.4destination. This is a onetime appropriation.
139.5Of this amount, $100,000 is for a grant to
139.6the St. Louis County Historical Society for a
139.7project, in collaboration with the Erie Mining
139.8history book project team, to research,
139.9document, publish, preserve, and exhibit the
139.10history of taconite mining in Minnesota.

139.11
Sec. 5. HOUSING FINANCE AGENCY
$
-0-
$
1,750,000
139.12(a) $500,000 in fiscal year 2017 is to establish
139.13a grant program within the housing trust fund
139.14for the exploited families rental assistance
139.15program. This is a onetime appropriation and
139.16is available until June 30, 2019.
139.17(b) $500,000 in fiscal year 2017 is for a
139.18competitive grant program to fund a housing
139.19project or projects in a community or
139.20communities: (1) that have low housing
139.21vacancy rates; and (2) that have an education
139.22and training center for jobs in agriculture,
139.23farm business management, health care
139.24fields, or other fields with anticipated
139.25significant job growth potential. A grant or
139.26grants must be no more than 50 percent of
139.27the total development costs for the project.
139.28Funds for a grant or grants made in this
139.29section must be to a housing project or
139.30projects that have financial and in-kind
139.31contributions from nonagency sources
139.32that when combined with a grant under
139.33this section are sufficient to complete the
139.34housing project. Funds must be used to
139.35create new housing units either through
140.1new construction or through acquisition and
140.2rehabilitation of a building or buildings not
140.3currently used for housing. If funds remain
140.4uncommitted at the end of fiscal year 2017,
140.5the agency may transfer the uncommitted
140.6funds to the housing development fund and
140.7use the funds for the economic development
140.8and housing challenge program under
140.9Minnesota Statutes, section 462A.33. This is
140.10a onetime appropriation.
140.11(c) $750,000 in fiscal year 2017 is for the
140.12Workforce and Affordable Homeownership
140.13Development Program under Minnesota
140.14Statutes, section 462A.38. This is a onetime
140.15appropriation and is available until June 30,
140.162019.

140.17
Sec. 6. COMMERCE
$
-0-
$
1,332,000
140.18(a) $832,000 in fiscal year 2017 is for energy
140.19regulation and planning unit staff.
140.20(b) $500,000 in fiscal year 2017 is for
140.21additional actuarial work to prepare for
140.22implementation of principle-based reserves.
140.23This appropriation is contingent on
140.24enactment of 2016 HF No. 3384. The base
140.25appropriation for this purpose is $412,000.

140.26
Sec. 7. PUBLIC UTILITIES COMMISSION
$
225,000
$
577,000
140.27The amounts appropriated are in addition
140.28to those appropriated in Laws 2015, First
140.29Special Session chapter 1. The base
140.30amount for fiscal year 2018 and thereafter
140.31is $514,000.

140.32    Sec. 8. Laws 2014, chapter 312, article 2, section 14, is amended to read:
141.1    Sec. 14. ASSIGNED RISK TRANSFER.
141.2(a) By June 30, 2015, if the commissioner of commerce determines on the basis of
141.3an audit that there is an excess surplus in the assigned risk plan created under Minnesota
141.4Statutes, section 79.252, the commissioner of management and budget shall transfer
141.5the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This
141.6transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision
141.71
, paragraph (a), clause (1). This is a onetime transfer.
141.8(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
141.9determines on the basis of an audit that there is an excess surplus in the assigned risk plan
141.10created under Minnesota Statutes, section 79.252, the commissioner of management and
141.11budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each
141.12year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section
141.13116J.423 . This transfer occurs prior to any transfer under Minnesota Statutes, section
141.1479.251, subdivision 1 , paragraph (a), clause (1), but after the transfer authorized in
141.15paragraph (a). The total amount authorized for all transfers under this paragraph must not
141.16exceed $24,100,000. This paragraph expires the day following the transfer in which the
141.17total amount transferred under this paragraph to the Minnesota minerals 21st century
141.18fund equals $24,100,000.
141.19(c) By June 30, 2015, if the commissioner of commerce determines on the basis of
141.20an audit that there is an excess surplus in the assigned risk plan created under Minnesota
141.21Statutes, section 79.252, the commissioner of management and budget shall transfer the
141.22amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
141.23occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
141.24paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If
141.25a transfer occurs under this paragraph, the amount transferred is appropriated from the
141.26general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes
141.27of section 15. Both the transfer and appropriation under this paragraph are onetime.
141.28(d) By June 30, 2016, if the commissioner of commerce determines on the basis of
141.29an audit that there is an excess surplus in the assigned risk plan created under Minnesota
141.30Statutes, section 79.252, the commissioner of management and budget shall transfer the
141.31amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
141.32occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
141.33paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If
141.34a transfer occurs under this paragraph, the amount transferred is appropriated from the
141.35general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes
141.36of section 15. Both the transfer and appropriation under this paragraph are onetime.
142.1(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner
142.2of management and budget shall transfer to the assigned risk plan under Minnesota
142.3Statutes, section 79.252 general fund, any unencumbered or unexpended balance of the
142.4appropriations under paragraphs (c) and (d) remaining on June 30, 2017 2016, or the date
142.5the commissioner of commerce determines that an excess surplus in the assigned risk plan
142.6does not exist, whichever occurs earlier.
142.7EFFECTIVE DATE.This section is effective the day following final enactment.

142.8    Sec. 9. Laws 2014, chapter 312, article 2, section 15, is amended to read:
142.9    Sec. 15. WORKERS' COMPENSATION SYSTEM REFORM; USE OF
142.10FUNDS.
142.11(a) The appropriations under section 14 to the commissioner of labor and industry
142.12are for reform of the workers' compensation system. Funds appropriated under section
142.1314, paragraphs (c) and (d), may be expended by the commissioner only after the advisory
142.14council on workers' compensation created under Minnesota Statutes, section 175.007, has
142.15approved a new system including, but not limited to: a Medicare-based diagnosis-related
142.16group (MS-DRG) or similar system for payment of workers' compensation inpatient
142.17hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up
142.18to $100,000 may be used by the commissioner to develop and implement the new system
142.19approved by the advisory council on workers' compensation.
142.20(b) Funds available for expenditure under paragraph (a) may be used by the
142.21commissioner for reimbursement of expenditures that are reasonable and necessary to
142.22defray the costs of the implementation by hospitals, insurers, and self-insured employers
142.23of the new system including, but not limited to: a Medicare-based diagnosis-related group
142.24(MS-DRG) or similar system for payment of workers' compensation inpatient hospital
142.25services, litigation expense reform, worker safety training, administrative costs, or other
142.26related system reform.
142.27(c) For the purposes of this section, reasonable and necessary system reform and
142.28implementation costs include, but are not limited to:
142.29(1) the cost of analyzing data to determine the anticipated costs and savings of
142.30implementing the new system;
142.31(2) the cost of analyzing system or organizational changes necessary for
142.32implementation;
142.33(3) the cost of determining how an organization would implement group or other
142.34software;
143.1(4) the cost of upgrading existing software or purchasing new software and other
143.2technology upgrades needed for implementation;
143.3(5) the cost of educating and training staff about the new system as applied to
143.4workers' compensation; and
143.5(6) the cost of integrating the new system with electronic billing and remittance
143.6systems.
143.7(d) This section expires June 30, 2016.
143.8EFFECTIVE DATE.This section is effective the day following final enactment.

143.9    Sec. 10. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 3,
143.10is amended to read:
143.11
Subd. 3.Workforce Development
143.12
Appropriations by Fund
143.13
General
2,189,000
1,789,000
143.14
143.15
Workforce
Development
17,567,000
16,767,000
143.16(a) $1,039,000 each year from the general
143.17fund and $3,104,000 each year from the
143.18workforce development fund are for the adult
143.19workforce development competitive grant
143.20program. Of this amount, up to five percent
143.21is for administration and monitoring of the
143.22adult workforce development competitive
143.23grant program. All grant awards shall be
143.24for two consecutive years. Grants shall be
143.25awarded in the first year.
143.26(b) $4,050,000 each year is from the
143.27workforce development fund for the
143.28Minnesota youth program under Minnesota
143.29Statutes, sections 116L.56 and 116L.561, to
143.30provide employment and career advising to
143.31youth, including career guidance in secondary
143.32schools, to address the youth career advising
143.33deficiency, to carry out activities outlined
143.34in Minnesota Statutes, section 116L.561,
144.1to provide support services, and to provide
144.2work experience to youth in the workforce
144.3service areas. The funds in this paragraph
144.4may be used for expansion of the pilot
144.5program combining career and higher
144.6education advising in Laws 2013, chapter 85,
144.7article 3, section 27. Activities in workforce
144.8services areas under this paragraph may
144.9serve all youth up to age 24.
144.10(c) $1,000,000 each year is from the
144.11workforce development fund for the
144.12youthbuild program under Minnesota
144.13Statutes, sections 116L.361 to 116L.366.
144.14(d) $450,000 each year is from the workforce
144.15development fund for a grant to Minnesota
144.16Diversified Industries, Inc., to provide
144.17progressive development and employment
144.18opportunities for people with disabilities.
144.19(e) $3,348,000 each year is from the
144.20workforce development fund for the "Youth
144.21at Work" youth workforce development
144.22competitive grant program. Of this amount,
144.23up to five percent is for administration
144.24and monitoring of the youth workforce
144.25development competitive grant program. All
144.26grant awards shall be for two consecutive
144.27years. Grants shall be awarded in the first
144.28year.
144.29(f) $500,000 each year is from the workforce
144.30development fund for the Opportunities
144.31Industrialization Center programs.
144.32(g) $750,000 each year is from the workforce
144.33development fund for a grant to the
144.34Minnesota Alliance of Boys and Girls
144.35Clubs to administer a statewide project
145.1of youth jobs skills development. This
145.2project, which may have career guidance
145.3components, including health and life skills,
145.4is to encourage, train, and assist youth in
145.5job-seeking skills, workplace orientation,
145.6and job-site knowledge through coaching.
145.7This grant requires a 25 percent match from
145.8nonstate resources.
145.9(h) $250,000 the first year and $250,000 the
145.10second year are for pilot programs in the
145.11workforce service areas to combine career
145.12and higher education advising.
145.13(i) $215,000 each year is from the workforce
145.14development fund for a grant to Big
145.15Brothers, Big Sisters of the Greater Twin
145.16Cities for workforce readiness, employment
145.17exploration, and skills development for
145.18youth ages 12 to 21. The grant must serve
145.19youth in the Twin Cities, Central Minnesota
145.20and Southern Minnesota Big Brothers, Big
145.21Sisters chapters.
145.22(j) $900,000 in fiscal year 2016 and
145.23$1,100,000 in fiscal year 2017 are from the
145.24workforce development fund for a grant to the
145.25Minnesota High Tech Association to support
145.26SciTechsperience, a program that supports
145.27science, technology, engineering, and math
145.28(STEM) internship opportunities for two-
145.29and four-year college students in their field
145.30of study. The internship opportunities
145.31must match students with paid internships
145.32within STEM disciplines at small, for-profit
145.33companies located in the seven-county
145.34metropolitan area, having fewer than 150
145.35total employees; or at small or medium,
146.1for-profit companies located outside of the
146.2seven-county metropolitan area, having
146.3fewer than 250 total employees. At least 200
146.4students must be matched in the first year
146.5and at least 250 students must be matched in
146.6the second year. Selected hiring companies
146.7shall receive from the grant 50 percent of the
146.8wages paid to the intern, capped at $2,500
146.9per intern. The program must work toward
146.10increasing the participation among women or
146.11other underserved populations.
146.12(k) $50,000 each year is from the workforce
146.13development fund for a grant to the St. Cloud
146.14Area Somali Salvation Youth Organization
146.15for youth development and crime prevention
146.16activities. Grant funds may be used to
146.17train and place mentors in elementary and
146.18secondary schools; for athletic, social,
146.19and other activities to foster leadership
146.20development; to provide a safe place for
146.21participating youth to gather after school, on
146.22weekends, and on holidays; and activities to
146.23improve the organizational and job readiness
146.24skills of participating youth. This is a
146.25onetime appropriation and is available until
146.26June 30, 2019. Funds appropriated the first
146.27year are available for use in the second year
146.28of the biennium.
146.29(l) $500,000 each year is for rural career
146.30counseling coordinator positions in the
146.31workforce service areas and for the purposes
146.32specified in Minnesota Statutes, section
146.33116L.667 . The commissioner, in consultation
146.34with local workforce investment boards and
146.35local elected officials in each of the service
146.36areas receiving funds, shall develop a method
147.1of distributing funds to provide equitable
147.2services across workforce service areas.
147.3(m) $400,000 in fiscal year 2016 is for a grant
147.4to YWCA Saint Paul for training and job
147.5placement assistance, including commercial
147.6driver's license training, through the job
147.7placement and retention program. This is a
147.8onetime appropriation.
147.9(n) $800,000 in fiscal year 2016 is from
147.10the workforce development fund for
147.11the customized training program for
147.12manufacturing industries under article 2,
147.13section 24. This is a onetime appropriation
147.14and is available in either year of the
147.15biennium. Of this amount:
147.16(1) $350,000 is for a grant to Central Lakes
147.17College for the purposes of this paragraph;
147.18(2) $250,000 is for Minnesota West
147.19Community and Technical College for the
147.20purposes of this paragraph; and
147.21(3) $200,000 is for South Central College for
147.22the purposes of this paragraph.
147.23(o) $500,000 each year is from the workforce
147.24development fund for a grant to Resource,
147.25Inc. to provide low-income individuals
147.26career education and job skills training that
147.27are fully integrated with chemical and mental
147.28health services.
147.29(p) $200,000 in fiscal year 2016 and $200,000
147.30in fiscal year 2017 are from the workforce
147.31development fund for performance grants
147.32under Minnesota Statutes, section 116J.8747,
147.33to Twin Cities RISE! to provide training to
148.1hard-to-train individuals. This is a onetime
148.2appropriation.
148.3(q) $200,000 in fiscal year 2016 is from
148.4the workforce development fund for the
148.5foreign-trained health care professionals
148.6grant program modeled after the pilot
148.7program conducted under Laws 2006,
148.8chapter 282, article 11, section 2, subdivision
148.912, to encourage state licensure of
148.10foreign-trained health care professionals,
148.11including: physicians, with preference given
148.12to primary care physicians who commit
148.13to practicing for at least five years after
148.14licensure in underserved areas of the state;
148.15nurses; dentists; pharmacists; mental health
148.16professionals; and other allied health care
148.17professionals. The commissioner must
148.18collaborate with health-related licensing
148.19boards and Minnesota workforce centers to
148.20award grants to foreign-trained health care
148.21professionals sufficient to cover the actual
148.22costs of taking a course to prepare health
148.23care professionals for required licensing
148.24examinations and the fee for the state
148.25licensing examinations. When awarding
148.26grants, the commissioner must consider the
148.27following factors:
148.28(1) whether the recipient's training involves
148.29a medical specialty that is in high demand in
148.30one or more communities in the state;
148.31(2) whether the recipient commits to
148.32practicing in a designated rural area or an
148.33underserved urban community, as defined in
148.34Minnesota Statutes, section 144.1501;
149.1(3) whether the recipient's language skills
149.2provide an opportunity for needed health care
149.3access for underserved Minnesotans; and
149.4(4) any additional criteria established by the
149.5commissioner.
149.6This is a onetime appropriation and is
149.7available until June 30, 2019.

149.8    Sec. 11. Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to
149.9read:
149.10
149.11
Sec. 6. BUREAU OF MEDIATION
SERVICES
$
2,208,000
$
2,234,000
2,622,000
149.12(a) $68,000 each year is for grants to area
149.13labor management committees. Grants may
149.14be awarded for a 12-month period beginning
149.15July 1 each year. Any unencumbered balance
149.16remaining at the end of the first year does not
149.17cancel but is available for the second year.
149.18(b) $125,000 each year is for purposes of the
149.19Public Employment Relations Board under
149.20Minnesota Statutes, section 179A.041.
149.21(c) $256,000 each year is in fiscal year
149.222016 and $394,000 in fiscal year 2017 are
149.23for the Office of Collaboration and Dispute
149.24Resolution under Minnesota Statutes, section
149.25179.90 . The base appropriation for this
149.26purpose is $394,000 in fiscal year 2018 and
149.27$394,000 in fiscal year 2019. Of this amount,
149.28$160,000 each year is for grants under
149.29Minnesota Statutes, section 179.91, and
149.30$96,000 each year is for intergovernmental
149.31and public policy collaboration and operation
149.32of the office.
150.1(d) $250,000 is to complete the Case
150.2Management System-Database Project Phase
150.3II. This is a onetime appropriation.
150.4EFFECTIVE DATE.This section is effective the day following final enactment.

150.5    Sec. 12. Minnesota Statutes 2014, section 61A.24, is amended by adding a subdivision
150.6to read:
150.7    Subd. 12b. Mortality table; exception. Notwithstanding subdivisions 12, 12a, or
150.8any other law to the contrary, a company may use the Commissioners 2017 Standard
150.9Ordinary Mortality Table in determining the minimum nonforfeiture standard for policies
150.10issued on or after January 1, 2017.

150.11    Sec. 13. Minnesota Statutes 2014, section 61A.25, is amended by adding a subdivision
150.12to read:
150.13    Subd. 10. Mortality table; exception. Notwithstanding anything in this section,
150.14or any other law to the contrary, a company may use the Commissioners 2017 Standard
150.15Ordinary Mortality Table in determining the minimum valuation standard for policies
150.16issued on or after January 1, 2017.

150.17    Sec. 14. Minnesota Statutes 2014, section 116J.423, is amended to read:
150.18116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.
150.19    Subdivision 1. Created. The Minnesota minerals 21st century fund is created
150.20as a separate account in the treasury. Money in the account is appropriated to the
150.21commissioner of employment and economic development for the purposes of this section.
150.22All money earned by the account, loan repayments of principal and interest, and earnings
150.23on investments must be credited to the account. For the purpose of this section, "fund"
150.24means the Minnesota minerals 21st century fund. The commissioner shall operate the
150.25account as a revolving account.
150.26    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans
150.27or equity investments in mineral, steel, or taconite any other industry processing facilities,
150.28steel production facilities, facilities for the manufacturing of renewable energy products,
150.29or facilities for the manufacturing of biobased or biomass products, manufacturing, or
150.30technology project that would enhance the economic diversification and that are is located
150.31within the taconite relief tax area as defined under section 273.134. The commissioner
150.32must, prior to making any loans or equity investments and after consultation with industry
151.1and public officials, develop a strategy for making loans and equity investments that
151.2assists the Minnesota mineral industry in becoming globally competitive taconite relief
151.3area in retaining and enhancing its economic competitiveness. Money in the fund may
151.4also be used to pay for the costs of carrying out the commissioner's due diligence duties
151.5under this section.
151.6    Subd. 2a. Grants authorized. Notwithstanding subdivision 2, the commissioner
151.7may use money in the fund to make grants to a municipality or county, or to a county
151.8regional rail authority as appropriate, for public infrastructure needed to support an
151.9eligible project under this section. Grant money may be used by the municipality, county,
151.10or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff
151.11of storm water; to predesign, design, construct, and equip roads and rail lines; and, in
151.12cooperation with municipal utilities, to predesign, design, construct, and equip natural
151.13gas pipelines, electric infrastructure, water supply systems, and wastewater collection and
151.14treatment systems. Grants made under this subdivision are available until expended.
151.15    Subd. 3. Requirements prior to committing funds. The commissioner, prior to
151.16making a commitment for a loan or equity investment must, at a minimum, conduct due
151.17diligence research regarding the proposed loan or equity investment, including contracting
151.18with professionals as needed to assist in the due diligence.
151.19    Subd. 4. Requirements for fund disbursements. The commissioner may make
151.20conditional commitments for loans or equity investments but disbursements of funds
151.21pursuant to a commitment may not be made until commitments for the remainder of a
151.22project's funding are made that are satisfactory to the commissioner and disbursements
151.23made from the other commitments sufficient to protect the interests of the state in its
151.24loan or investment.
151.25    Subd. 5. Company contribution. The commissioner may provide loans or equity
151.26investments that match, in a proportion determined by the commissioner, an investment
151.27made by the owner of a facility.

151.28    Sec. 15. Minnesota Statutes 2014, section 116J.424, is amended to read:
151.29116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
151.30CONTRIBUTION.
151.31The commissioner of the Iron Range Resources and Rehabilitation Board with
151.32approval by the board, shall may provide an equal match for any loan or equity investment
151.33made for a facility project located in the tax relief area defined in section 273.134,
151.34paragraph (b)
, by the Minnesota minerals 21st century fund created by section 116J.423.
151.35The match may be in the form of a loan or equity investment, notwithstanding whether
152.1the fund makes a loan or equity investment. The state shall not acquire an equity interest
152.2because of an equity investment or loan by the board and the board at its sole discretion
152.3shall decide what interest it acquires in a project. The commissioner of employment and
152.4economic development may require a commitment from the board to make the match
152.5prior to disbursing money from the fund.

152.6    Sec. 16. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
152.7    Subdivision 1. Grant program established; purpose. (a) The commissioner shall
152.8make grants to counties or cities to provide up to 50 percent of the capital costs of public
152.9infrastructure necessary for an eligible economic development project. The county or city
152.10receiving a grant must provide for the remainder of the costs of the project, either in cash
152.11or in kind. In-kind contributions may include the value of site preparation other than the
152.12public infrastructure needed for the project.
152.13(b) The purpose of the grants made under this section is to keep or enhance jobs in
152.14the area, increase the tax base, or to expand or create new economic development.
152.15(c) In awarding grants under this section, the commissioner must adhere to the
152.16criteria under subdivision 4.
152.17(d) If the commissioner awards a grant for less than 50 percent of the project, the
152.18commissioner shall provide the applicant and the chairs and ranking minority members
152.19of the senate and house of representatives committees with jurisdiction over economic
152.20development finance a written explanation of the reason less than 50 percent of the capital
152.21costs were awarded in the grant.

152.22    Sec. 17. Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:
152.23    Subd. 2. Eligible projects. An economic development project for which a county or
152.24city may be eligible to receive a grant under this section includes:
152.25(1) manufacturing;
152.26(2) technology;
152.27(3) warehousing and distribution;
152.28(4) research and development;
152.29(5) agricultural processing, defined as transforming, packaging, sorting, or grading
152.30livestock or livestock products into goods that are used for intermediate or final
152.31consumption, including goods for nonfood use; or
152.32(6) industrial park development that would be used by any other business listed in
152.33this subdivision even if no business has committed to locate in the industrial park at the
152.34time the grant application is made.
153.1EFFECTIVE DATE.This section is effective the day following final enactment.

153.2    Sec. 18. Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:
153.3    Subd. 4. Application. (a) The commissioner must develop forms and procedures
153.4for soliciting and reviewing applications for grants under this section. At a minimum, a
153.5county or city must include in its application a resolution of the county or city council
153.6certifying that the required local match is available. The commissioner must evaluate
153.7complete applications for eligible projects using the following criteria:
153.8(1) the project is an eligible project as defined under subdivision 2;
153.9(2) the project will is expected to result in or will attract substantial public and
153.10private capital investment and provide substantial economic benefit to the county or city in
153.11which the project would be located;
153.12(3) the project is not relocating substantially the same operation from another
153.13location in the state, unless the commissioner determines the project cannot be reasonably
153.14accommodated within the county or city in which the business is currently located, or the
153.15business would otherwise relocate to another state; and
153.16(4) the project is expected to or will create or maintain retain full-time jobs.
153.17(b) The determination of whether to make a grant for a site is within the discretion of
153.18the commissioner, subject to this section. The commissioner's decisions and application of
153.19the priorities criteria are not subject to judicial review, except for abuse of discretion.
153.20EFFECTIVE DATE.This section is effective the day following final enactment.

153.21    Sec. 19. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
153.22    Subd. 6. Maximum grant amount. A county or city may receive no more than
153.23$1,000,000 $2,000,000 in two years for one or more projects.
153.24EFFECTIVE DATE.This section is effective the day following final enactment.

153.25    Sec. 20. Minnesota Statutes 2014, section 116J.68, is amended to read:
153.26116J.68 BUREAU OF SMALL BUSINESS.
153.27    Subdivision 1. Generally. The Bureau of Small Business within the business
153.28assistance center shall serve as a clearinghouse, technical assistance center, and referral
153.29service for information and other assistance needed by small businesses including small
153.30targeted group businesses and small businesses located in an economically disadvantaged
153.31area.
153.32    Subd. 2. Duties. The bureau shall:
154.1(1) provide information and assistance with respect to all aspects of business
154.2planning, business finance, and business management related to the start-up, operation, or
154.3expansion of a small business in Minnesota;
154.4(2) refer persons interested in the start-up, operation, or expansion of a small
154.5business in Minnesota to assistance programs sponsored by federal agencies, state
154.6agencies, educational institutions, chambers of commerce, civic organizations, community
154.7development groups, private industry associations, and other organizations;
154.8(3) plan, develop, and implement a master file of information on small business
154.9assistance programs of federal, state, and local governments, and other public and private
154.10organizations so as to provide comprehensive, timely information to the bureau's clients;
154.11(4) employ staff with adequate and appropriate skills and education and training for
154.12the delivery of information and assistance;
154.13(5) seek out and utilize, to the extent practicable, contributed expertise and services
154.14of federal, state, and local governments, educational institutions, and other public and
154.15private organizations;
154.16(6) maintain a close and continued relationship with the director of the procurement
154.17program within the Department of Administration so as to facilitate the department's
154.18duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted
154.19group business and economically disadvantaged business program of the state;
154.20(7) develop an information system which will enable the commissioner and other
154.21state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
154.22business development and growth in the state. All executive branch agencies of state
154.23government and the secretary of state shall to the extent practicable, assist the bureau in
154.24the development and implementation of the information system;
154.25(8) establish and maintain a toll-free telephone number, e-mail account, and other
154.26electronic contact mediums determined by the commissioner so that all small business
154.27persons anywhere in the state can call may contact the bureau office for assistance.
154.28An outreach program shall be established to make the existence of the bureau and the
154.29assistance and services the bureau may provide to small businesses well known to its
154.30potential clientele throughout the state. If the small business person requires a referral to
154.31another provider the bureau may use the business assistance referral system established by
154.32the Minnesota Project Outreach Corporation;
154.33(9) conduct research and provide data as required by the state legislature;
154.34(10) develop and publish material on all aspects of the start-up, operation, or
154.35expansion of a small business in Minnesota;
155.1(11) collect and disseminate information on state procurement opportunities,
155.2including information on the procurement process;
155.3(12) develop a public awareness program through the use of regarding state
155.4assistance programs for small businesses, including those programs specifically for
155.5socially disadvantaged small business persons. The commissioner may utilize print and
155.6electronic newsletters, personal contacts, and advertising devices as defined in section
155.7173.02, subdivision 16, social media, other electronic and print news media advertising
155.8about state assistance programs for small businesses, including those programs specifically
155.9for socially disadvantaged small business persons, and any other means determined by
155.10the commissioner;
155.11(13) enter into agreements with the federal government and other public and private
155.12entities to serve as the statewide coordinator or host agency for the federal small business
155.13development center program under United States Code, title 15, section 648; and
155.14(14) assist providers in the evaluation of their programs and the assessment of
155.15their service area needs. The bureau may establish model evaluation techniques and
155.16performance standards for providers to use.

155.17    Sec. 21. Minnesota Statutes 2014, section 116J.8737, subdivision 3, is amended to read:
155.18    Subd. 3. Certification of qualified investors. (a) Investors may apply to the
155.19commissioner for certification as a qualified investor for a taxable year. The application
155.20must be in the form and be made under the procedures specified by the commissioner,
155.21accompanied by an application fee of $350. Application fees are deposited in the small
155.22business investment tax credit administration account in the special revenue fund. The
155.23application for certification for 2010 must be made available on the department's Web
155.24site by August 1, 2010. Applications for subsequent years' certification must be made
155.25available on the department's Web site by November 1 of the preceding year.
155.26(b) Within 30 days of receiving an application for certification under this subdivision,
155.27the commissioner must either certify the investor as satisfying the conditions required
155.28of a qualified investor, request additional information from the investor, or reject the
155.29application for certification. If the commissioner requests additional information from the
155.30investor, the commissioner must either certify the investor or reject the application within
155.3130 days of receiving the additional information. If the commissioner neither certifies the
155.32investor nor rejects the application within 30 days of receiving the original application or
155.33within 30 days of receiving the additional information requested, whichever is later, then
155.34the application is deemed rejected, and the commissioner must refund the $350 application
155.35fee. An investor who applies for certification and is rejected may reapply.
156.1(c) To receive certification, an investor must (1) be a natural person; and (2) certify
156.2to the commissioner that the investor will only invest in a transaction that is exempt under
156.3section 80A.46, clause (13) or (14), in a security exempt under section 80A.461, or in a
156.4security registered under section 80A.50, paragraph (b).
156.5(d) In order for a qualified investment in a qualified small business to be eligible
156.6for tax credits, a qualified investor who makes the investment must have applied for
156.7and received certification for the calendar year prior to making the qualified investment,
156.8except in the case of an investor who is not an accredited investor, within the meaning of
156.9Regulation D of the Securities and Exchange Commission, Code of Federal Regulations,
156.10title 17, section 230.501, paragraph (a), application for certification may be made within
156.1130 days after making the qualified investment.
156.12EFFECTIVE DATE.This section is effective for taxable years beginning after
156.13December 31, 2015.

156.14    Sec. 22. Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:
156.15    Subdivision 1. Grant allowed. The commissioner may provide a grant to a qualified
156.16job training program from money appropriated for the purposes of this section as follows:
156.17(1) a $9,000 an $11,000 placement grant paid to a job training program upon
156.18placement in employment of a qualified graduate of the program; and
156.19(2) a $9,000 an $11,000 retention grant paid to a job training program upon retention
156.20in employment of a qualified graduate of the program for at least one year.

156.21    Sec. 23. Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:
156.22    Subd. 2. Qualified job training program. To qualify for grants under this section,
156.23a job training program must satisfy the following requirements:
156.24(1) the program must be operated by a nonprofit corporation that qualifies under
156.25section 501(c)(3) of the Internal Revenue Code;
156.26(2) the program must spend at least, on average, $15,000 or more per graduate
156.27of the program;
156.28(3) the program must provide education and training in:
156.29(i) basic skills, such as reading, writing, mathematics, and communications;
156.30(ii) thinking skills, such as reasoning, creative thinking, decision making, and
156.31problem solving; and
156.32(iii) personal qualities, such as responsibility, self-esteem, self-management,
156.33honesty, and integrity;
157.1(4) the program must may provide income supplements, when needed, to participants
157.2for housing, counseling, tuition, and other basic needs;
157.3(5) the program's education and training course must last for an average of at least
157.4six months;
157.5(6) individuals served by the program must:
157.6(i) be 18 years of age or older;
157.7(ii) have federal adjusted gross income of no more than $11,000 $12,000 per year in
157.8the calendar year immediately before entering the program;
157.9(iii) have assets of no more than $7,000 $10,000, excluding the value of a
157.10homestead; and
157.11(iv) not have been claimed as a dependent on the federal tax return of another person
157.12in the previous taxable year; and
157.13(7) the program must be certified by the commissioner of employment and economic
157.14development as meeting the requirements of this subdivision.

157.15    Sec. 24. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
157.16    Subd. 2. Board. "Board" means the Urban Initiative Board. Minnesota emerging
157.17entrepreneur program.
157.18EFFECTIVE DATE.This section is effective July 1, 2016.

157.19    Sec. 25. Minnesota Statutes 2014, section 116M.14, is amended by adding a
157.20subdivision to read:
157.21    Subd. 3a. Department. "Department" means the Department of Employment and
157.22Economic Development.
157.23EFFECTIVE DATE.This section is effective July 1, 2016.

157.24    Sec. 26. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
157.25    Subd. 4. Low-income area. "Low-income area" means:
157.26(1) Minneapolis, St. Paul;
157.27(2) those cities in the metropolitan area as defined in section 473.121, subdivision
157.282
, that have an average income that is below 80 percent of the median income for a
157.29four-person family as of the latest report by the United States Census Bureau; and
157.30(3) those cities in the metropolitan area, which contain two or more contiguous
157.31census tracts in which the average family income is less than 80 percent of the median
157.32family income for the Twin Cities the area outside the metropolitan area.
158.1EFFECTIVE DATE.This section is effective July 1, 2016.

158.2    Sec. 27. Minnesota Statutes 2014, section 116M.14, is amended by adding a
158.3subdivision to read:
158.4    Subd. 4a. Low-income person. "Low-income person" means a person who has
158.5an annual income, adjusted for family size, of not more than 80 percent of the area
158.6median family income for the county of residence as of the latest report by the United
158.7States Census Bureau.
158.8EFFECTIVE DATE.This section is effective July 1, 2016.

158.9    Sec. 28. Minnesota Statutes 2014, section 116M.14, is amended by adding a
158.10subdivision to read:
158.11    Subd. 4b. Metropolitan area. "Metropolitan area" has the meaning given in section
158.12473.121, subdivision 2.
158.13EFFECTIVE DATE.This section is effective July 1, 2016.

158.14    Sec. 29. Minnesota Statutes 2014, section 116M.14, is amended by adding a
158.15subdivision to read:
158.16    Subd. 6. Minority person. "Minority person" means a person belonging to a racial
158.17or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.
158.18EFFECTIVE DATE.This section is effective July 1, 2016.

158.19    Sec. 30. Minnesota Statutes 2014, section 116M.14, is amended by adding a
158.20subdivision to read:
158.21    Subd. 7. Program. "Program" means the Minnesota emerging entrepreneur
158.22program created by this chapter.
158.23EFFECTIVE DATE.This section is effective July 1, 2016.

158.24    Sec. 31. Minnesota Statutes 2014, section 116M.14, is amended by adding a
158.25subdivision to read:
158.26    Subd. 8. Veteran. "Veteran" means a veteran as defined in section 197.447.
158.27EFFECTIVE DATE.This section is effective July 1, 2016.

159.1    Sec. 32. Minnesota Statutes 2014, section 116M.14, is amended by adding a
159.2subdivision to read:
159.3    Subd. 9. Persons with disabilities. "Persons with disabilities" means an individual
159.4with a disability, as defined under the Americans with Disabilities Act, United States
159.5Code, title 42, section 12102.
159.6EFFECTIVE DATE.This section is effective July 1, 2016.

159.7    Sec. 33. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
159.8    Subdivision 1. Creation; Membership. The Urban Initiative Minnesota Emerging
159.9Entrepreneur Board is created and consists of the commissioner of employment and
159.10economic development, the commissioner of human rights, the chair of the Metropolitan
159.11Council, and eight 12 members from the general public appointed by the governor. Six
159.12Nine of the public members must be representatives from minority business enterprises.
159.13No more than four six of the public members may be of one gender. At least one member
159.14must be a representative from a veteran-owned business, and at least one member must
159.15be a representative from a business owned by a person with disabilities. Appointments
159.16must ensure balanced geographic representation. At least half of the public members must
159.17have experience working to address racial income disparities. All public members must be
159.18experienced in business or economic development.
159.19EFFECTIVE DATE.This section is effective July 1, 2016.

159.20    Sec. 34. Minnesota Statutes 2014, section 116M.15, is amended by adding a
159.21subdivision to read:
159.22    Subd. 1a. Board responsibilities. The board shall:
159.23(1) submit a report to the commissioner by February 1 of each year describing
159.24the condition of Minnesota small businesses that are majority owned and operated by a
159.25racial or ethnic minority, woman, veteran, or a person with disabilities, along with any
159.26policy recommendations;
159.27(2) act as a liaison between the department and nonprofit corporations engaged in
159.28small business development support activities; and
159.29(3) assist the department in informational outreach about the program.
159.30EFFECTIVE DATE.This section is effective July 1, 2016.

159.31    Sec. 35. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
160.1    Subd. 2. Technical assistance. The board through the department, shall provide
160.2technical assistance and development information services to state agencies, regional
160.3agencies, special districts, local governments, and the public, with special emphasis on
160.4minority communities informational outreach about the program to lenders, nonprofit
160.5corporations, and low-income and minority communities throughout the state that support
160.6the development of business enterprises and entrepreneurs.
160.7EFFECTIVE DATE.This section is effective July 1, 2016.

160.8    Sec. 36. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
160.9    Subd. 4. Reports. The board shall submit an annual report to the legislature of an
160.10accounting of loans made under section 116M.18, including information on loans to
160.11minority business enterprises made, the number of jobs created by the program, the impact
160.12on low-income areas, and recommendations concerning minority business development
160.13and jobs for persons in low-income areas.
160.14EFFECTIVE DATE.This section is effective July 1, 2016.

160.15    Sec. 37. Minnesota Statutes 2014, section 116M.18, is amended to read:
160.16116M.18 URBAN CHALLENGE GRANTS MINNESOTA EMERGING
160.17ENTREPRENEUR PROGRAM.
160.18    Subdivision 1. Establishment. The Minnesota emerging entrepreneur program is
160.19established to award grants to nonprofit corporations to fund loans to businesses owned by
160.20minority or low-income persons, women, veterans, or people with disabilities.
160.21    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand,
160.22loans shall be made so that an approximately equal dollar amount of loans are made to
160.23businesses in the metropolitan area as in the nonmetropolitan area. After September
160.2430 of each calendar year, the department may allow loans to be made anywhere in the
160.25state without regard to geographic area.
160.26    Subdivision 1 Subd. 1b. Eligibility rules Grants. The board department shall
160.27make urban challenge grants for use in low-income areas to nonprofit corporations to
160.28fund loans to businesses owned by minority or low-income persons, women, veterans, or
160.29people with disabilities to encourage private investment, to provide jobs for minority and
160.30low-income persons and others in low-income areas, to create and strengthen minority
160.31business enterprises, and to promote economic development in a low-income area. The
160.32board shall adopt rules to establish criteria for determining loan eligibility.
161.1    Subd. 2. Challenge Grant eligibility; nonprofit corporation. (a) The board
161.2department may enter into agreements with nonprofit corporations to fund and guarantee
161.3loans the nonprofit corporation makes in low-income areas under subdivision 4. A
161.4corporation must demonstrate that to businesses owned by minority or low-income
161.5persons, women, veterans, or people with disabilities. The department shall evaluate
161.6applications from nonprofit corporations. In evaluating applications, the department must
161.7consider, among other things, whether the nonprofit corporation:
161.8(1) its has a board of directors that includes citizens experienced in business
161.9and community development, minority business enterprises, addressing racial income
161.10disparities, and creating jobs in low-income areas for low-income and minority persons;
161.11(2) it has the technical skills to analyze projects;
161.12(3) it is familiar with other available public and private funding sources and
161.13economic development programs;
161.14(4) it can initiate and implement economic development projects;
161.15(5) it can establish and administer a revolving loan account or has operated a
161.16revolving loan account; and
161.17(6) it can work with job referral networks which assist minority and other persons in
161.18low-income areas low-income persons; and
161.19(7) has established relationships with minority communities.
161.20(b) The department shall review existing agreements with nonprofit corporations
161.21every five years and may renew or terminate the agreement based on the review. In making
161.22its review, the department shall consider, among other criteria, the criteria in paragraph (a).
161.23    Subd. 3. Revolving loan fund. (a) The board department shall establish a revolving
161.24loan fund to make grants to nonprofit corporations for the purpose of making loans and
161.25loan guarantees to new and expanding businesses in a low-income area to promote owned
161.26by minority or low-income persons, women, veterans, or people with disabilities, and to
161.27support minority business enterprises and job creation for minority and other persons
161.28in low-income areas low-income persons.
161.29(b) Nonprofit corporations that receive grants from the department under the
161.30program must establish a commissioner-certified revolving loan fund for the purpose
161.31of making eligible loans.
161.32(c) Eligible business enterprises include, but are not limited to, technologically
161.33innovative industries, value-added manufacturing, and information industries.
161.34(d) Loan applications given preliminary approval by the nonprofit corporation must
161.35be forwarded to the board department for approval. The commissioner must give final
161.36approval for each loan or loan guarantee made by the nonprofit corporation. The amount
162.1of the state funds contributed to any loan or loan guarantee may not exceed 50 percent
162.2of each loan.
162.3    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans
162.4made or guaranteed by nonprofit corporations under the urban challenge grant program.
162.5(b) Loans or guarantees must be made to businesses that are not likely to undertake
162.6a project for which loans are sought without assistance from the urban challenge grant
162.7program.
162.8(c) A loan or guarantee must be used for a project designed to benefit persons in
162.9low-income areas through the creation of job or business opportunities for them to support
162.10a business owned by a minority or a low-income person, woman, veteran, or a person with
162.11disabilities. Priority must be given for loans to the lowest income areas.
162.12(d) The minimum state contribution to a loan or guarantee is $5,000 and the
162.13maximum is $150,000.
162.14(e) The state contribution must be matched by at least an equal amount of new
162.15private investment.
162.16(f) A loan may not be used for a retail development project.
162.17(g) The business must agree to work with job referral networks that focus on
162.18minority and low-income applicants from low-income areas.
162.19    Subd. 4a. Microenterprise loan. Urban challenge Program grants may be
162.20used to make microenterprise loans to small, beginning businesses, including a sole
162.21proprietorship. Microenterprise loans are subject to this section except that:
162.22(1) they may also be made to qualified retail businesses;
162.23(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000
162.24$35,000; and
162.25(3) in a low-income area, they may be made for a minimum of $5,000 and a
162.26maximum of $50,000; and
162.27(3) (4) they do not require a match.
162.28    Subd. 5. Revolving fund administration; rules. (a) The board department shall
162.29establish a minimum interest rate for loans or guarantees to ensure that necessary loan
162.30administration costs are covered. The interest rate charged by a nonprofit corporation for
162.31a loan under this subdivision must not exceed the Wall Street Journal prime rate plus
162.32four percent. For a loan under this subdivision, the nonprofit corporation may charge a
162.33loan origination fee equal to or less than one percent of the loan value. The nonprofit
162.34corporation may retain the amount of the origination fee.
162.35(b) Loan repayment amounts equal to one-half of the principal and interest must be
162.36deposited in a revolving fund created by the board for challenge grants. The remaining
163.1amount of the loan repayment may be paid to the department for deposit in the revolving
163.2loan fund. Loan interest payments must be deposited in a revolving loan fund created by
163.3the nonprofit corporation originating the loan being repaid for further distribution or use,
163.4consistent with the loan criteria specified in subdivision 4 of this section.
163.5(c) Administrative expenses of the board and nonprofit corporations with whom the
163.6board department enters into agreements under subdivision 2, including expenses incurred
163.7by a nonprofit corporation in providing financial, technical, managerial, and marketing
163.8assistance to a business enterprise receiving a loan under subdivision 4, may be paid out
163.9of the interest earned on loans and out of interest earned on money invested by the state
163.10Board of Investment under section 116M.16, subdivision 2, as may be provided by the
163.11board department.
163.12    Subd. 6. Rules. The board shall adopt rules to implement this section.
163.13    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
163.14corporation with which it has entered into an agreement under subdivision 1 . These
163.15loans must be used to support a new or expanding business. This support may include
163.16such forms of financing as the sale of goods to the business on installment or deferred
163.17payments, lease purchase agreements, or royalty investments in the business. The interest
163.18rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
163.19the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
163.20nonprofit corporation may charge a loan origination fee equal to or less than one percent
163.21of the loan value. The nonprofit corporation may retain the amount of the origination fee.
163.22The nonprofit corporation must provide at least an equal match to the loan received by the
163.23board. The maximum loan available to the nonprofit corporation under this subdivision is
163.24$50,000. Loans made to the nonprofit corporation under this subdivision may be made
163.25without interest. Repayments made by the nonprofit corporation must be deposited in the
163.26revolving fund created for urban initiative grants.
163.27    Subd. 7. Cooperation. A nonprofit corporation that receives an urban challenge a
163.28program grant shall cooperate with other organizations, including but not limited to,
163.29community development corporations, community action agencies, and the Minnesota
163.30small business development centers.
163.31    Subd. 8. Reporting requirements. A nonprofit corporation that receives a
163.32challenge program grant shall:
163.33(1) submit an annual report to the board and department by September March
163.3430 of each year that includes a description of projects businesses supported by the
163.35urban challenge grant program, an account of loans made during the calendar year, the
163.36program's impact on minority business enterprises and job creation for minority persons
164.1and low-income persons in low-income areas, the source and amount of money collected
164.2and distributed by the urban challenge grant program, the program's assets and liabilities,
164.3and an explanation of administrative expenses; and
164.4(2) provide for an independent annual audit to be performed in accordance with
164.5generally accepted accounting practices and auditing standards and submit a copy of each
164.6annual audit report to the board department.
164.7EFFECTIVE DATE.This section is effective July 1, 2016.

164.8    Sec. 38. Minnesota Statutes 2015 Supplement, section 326B.988, is amended to read:
164.9326B.988 EXCEPTIONS.
164.10    (a) The provisions of sections 326B.95 to 326B.998 shall not apply to:
164.11    (1) boilers and pressure vessels in buildings occupied solely for residence purposes
164.12with accommodations for not more than five families;
164.13    (2) railroad locomotives operated by railroad companies for transportation purposes;
164.14    (3) air tanks installed on the right-of-way of railroads and used directly in the
164.15operation of trains;
164.16    (4) boilers and pressure vessels under the direct jurisdiction of the United States;
164.17    (5) unfired pressure vessels having an internal or external working pressure not
164.18exceeding 15 psig with no limit on size;
164.19    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet
164.20in volume and equipped with an ASME code stamped safety valve set at a maximum of
164.21100 psig;
164.22    (7) pressure vessels having an inside diameter not exceeding six inches;
164.23    (8) every vessel that contains water under pressure, including those containing air
164.24that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
164.25design temperature does not exceed 210 degrees Fahrenheit;
164.26    (9) boiler or pressure vessels located on farms used solely for agricultural or
164.27horticultural purposes; for purposes of this section, boilers used for mint oil extraction
164.28are considered used for agricultural or horticultural purposes, provided that the owner or
164.29lessee complies with the inspection requirements contained in section 326B.958;
164.30    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
164.31    (11) unfired pressure vessels in petroleum refineries;
164.32    (12) an air tank or pressure vessel which is an integral part of a passenger motor
164.33bus, truck, or trailer;
165.1    (13) hot water heating and other hot liquid boilers not exceeding a heat input of
165.2750,000 BTU per hour;
165.3    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
165.4BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
165.5of 120 gallons, or a pressure of 160 psig;
165.6    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
165.7    (16) pressure vessels operated full of water or other liquid not materially more
165.8hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
165.9Fahrenheit or a pressure of 200 psig;
165.10    (17) steam-powered turbines at papermaking facilities which are powered by steam
165.11generated by steam facilities at a remote location;
165.12    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
165.13or antique motor vehicles constructed or maintained only as a hobby for exhibition,
165.14educational or historical purposes and not for commercial use, if the boilers have an
165.15inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
165.16equipped with an ASME stamped safety valve of adequate size, a water level indicator,
165.17and a pressure gauge;
165.18(19) any pressure vessel used as an integral part of an electrical circuit breaker;
165.19(20) pressure vessels used for the storage of refrigerant if they are built to ASME
165.20code specifications, registered with the national board, and equipped with an ASME
165.21code-stamped pressure-relieving device set no higher than the maximum allowable
165.22working pressure of the vessel. This does not include pressure vessels used in ammonia
165.23refrigeration systems;
165.24(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
165.25argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
165.26or Minnesota Department of Transportation specifications and equipped with an ASME
165.27code-stamped pressure-relieving device. The owner of the vessels shall perform annual
165.28visual inspections and planned maintenance on these vessels to ensure vessel integrity;
165.29(22) pressure vessels used for the storage of compressed air for self-contained
165.30breathing apparatuses;
165.31(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
165.32and
165.33(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
165.34feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
165.35less.
165.36    (b) An engineer's license is not required for hot water supply boilers.
166.1    (c) An engineer's license and annual inspection by the department is not required
166.2for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
166.3exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
166.4    (d) Electric boilers not exceeding a maximum working pressure of 50 psig,
166.5maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
166.6vessels and shall not require an engineer license to operate.
166.7(e) Sawmills, located in a county with a population of less than 8,000 according to
166.8the last federal census and that utilize steam for the drying of lumber, are not required to
166.9meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
166.105225.1180, only if all of the following conditions are met:
166.11(1) the owner complies with the inspection requirements under section 326B.958,
166.12and the licensing requirements under section 326B.972; and
166.13(2) the boiler:
166.14(i) is equipped with electronic control systems that are remotely operated but which
166.15require on-site manual reset of system faults;
166.16(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
166.17(iii) has automatic safety mechanisms built into the remote monitoring systems that
166.18send an alarm upon detection of a fault condition, and an on-site alarm that will sound
166.19upon detection of a fault condition and which may be heard at a distance of 500 feet;
166.20(iv) has a water treatment program that is supervised by a third party water treatment
166.21company; and
166.22(v) is attended on site by a licensed boiler operator at least two times in a 24-hour
166.23period. If the boiler is not attended more than twice in a 24-hour period, the period
166.24between checks must not be less than eight hours.
166.25This paragraph expires August 1, 2016. This paragraph expires the sooner of August
166.261, 2018, or upon the effective date of a rule regulating high pressure boiler attendance
166.27requirements at a sawmill described in this paragraph adopted after the effective date
166.28of this act.
166.29EFFECTIVE DATE.This section is effective the day following final enactment.

166.30    Sec. 39. Minnesota Statutes 2014, section 462A.204, subdivision 1, is amended to read:
166.31    Subdivision 1. Establishment. The agency may establish a family homeless
166.32prevention and assistance program to assist families who are homeless or are at imminent
166.33risk of homelessness. The term "family" may include single individuals. The agency may
166.34make grants to develop and implement family homeless prevention and assistance projects
167.1under the program. For purposes of this section, "families" means families and persons
167.2under the age of 22 24 years of age or younger.

167.3    Sec. 40. Minnesota Statutes 2014, section 462A.204, subdivision 3, is amended to read:
167.4    Subd. 3. Set aside. At least one grant must be awarded in an area located outside of
167.5the metropolitan area. A county, a group of contiguous counties jointly acting together, a
167.6tribe, a group of tribes, or a community-based nonprofit organization with a sponsoring
167.7resolution from each of the county boards of the counties located within its operating
167.8jurisdiction may apply for and receive grants for areas located outside the metropolitan area.

167.9    Sec. 41. [462A.38] WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
167.10DEVELOPMENT PROGRAM.
167.11    Subdivision 1. Establishment. A workforce and affordable homeownership
167.12development program is established to award homeownership development grants
167.13to nonprofit organizations, cooperatives created under chapter 308A or 308B, and
167.14community land trusts created for the purposes outlined in section 462A.31, subdivision
167.151, for development of workforce and affordable homeownership projects. The purpose
167.16of the program is to increase the supply of workforce and affordable, owner-occupied
167.17multifamily or single-family housing throughout Minnesota.
167.18    Subd. 2. Use of funds. (a) Grant funds awarded under this program may be used for:
167.19(1) development costs;
167.20(2) rehabilitation;
167.21(3) land development; and
167.22(4) residential housing, including storm shelters and related community facilities.
167.23(b) A project funded through the grant program shall serve households that meet the
167.24income limits as provided in section 462A.33, subdivision 5, unless a project is intended
167.25for the purpose outlined in section 462A.02, subdivision 6.
167.26    Subd. 3. Application. The commissioner shall develop forms and procedures for
167.27soliciting and reviewing applications for grants under this section. The commissioner shall
167.28consult with interested stakeholders when developing the guidelines and procedures for
167.29the program. In making grants, the commissioner shall establish semiannual application
167.30deadlines in which grants will be authorized from all or part of the available appropriations.
167.31    Subd. 4. Awarding grants. Among comparable proposals, preference must be
167.32given to proposals that include contributions from nonstate resources for the greatest
167.33portion of the total development cost.
168.1    Subd. 5. Statewide program. The agency shall attempt to make grants in
168.2approximately equal amounts to applicants outside and within the metropolitan area.
168.3    Subd. 6. Report. Beginning January 15, 2018, the commissioner must annually
168.4submit a report to the chairs and ranking minority members of the senate and house of
168.5representatives committees having jurisdiction over housing and workforce development
168.6specifying the projects that received grants under this section and the specific purposes for
168.7which the grant funds were used.
168.8EFFECTIVE DATE.This section is effective the day following final enactment.

168.9    Sec. 42. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special
168.10Session chapter 1, article 7, section 1, is amended to read:
168.11    Sec. 13. EFFECTIVE DATE.
168.12    Sections 1 to 3 and 6 to 11 are effective July 1, 2016 2017. Sections 4, 5, and 12
168.13are effective July 1, 2014.
168.14EFFECTIVE DATE.This section is effective the day following final enactment.
168.15Until July 1, 2016 2017, any employee, employer, employee or employer organization,
168.16exclusive representative, or any other person or organization aggrieved by an unfair labor
168.17practice as defined in Minnesota Statutes, section 179A.13, may bring an action for
168.18injunctive relief and for damages caused by the unfair labor practice in the district court of
168.19the county in which the practice is alleged to have occurred.

168.20    Sec. 43. Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to
168.21read:
168.22
Sec. 4. EXPLORE MINNESOTA TOURISM
$
14,118,000
$
14,248,000
168.23(a) To develop maximum private sector
168.24involvement in tourism, $500,000 in fiscal
168.25year 2016 and $500,000 in fiscal year 2017
168.26must be matched by Explore Minnesota
168.27Tourism from nonstate sources. Each $1 of
168.28state incentive must be matched with $6 of
168.29private sector funding. Cash match is defined
168.30as revenue to the state or documented cash
168.31expenditures directly expended to support
168.32Explore Minnesota Tourism programs. Up
168.33to one-half of the private sector contribution
169.1may be in-kind or soft match. The incentive
169.2in fiscal year 2016 shall be based on fiscal
169.3year 2015 private sector contributions. The
169.4incentive in fiscal year 2017 shall be based on
169.5fiscal year 2016 private sector contributions.
169.6This incentive is ongoing. Of this amount,
169.7$100,000 is for a grant to the Northern Lights
169.8International Music festival.
169.9(b) Funding for the marketing grants is
169.10available either year of the biennium.
169.11Unexpended grant funds from the first year
169.12are available in the second year.
169.13(c) $30,000 in fiscal year 2016 is for Mille
169.14Lacs Lake tourism promotion. This is a
169.15onetime appropriation.

169.16    Sec. 44. DAY TRAINING AND HABILITATION GRANT PROGRAM.
169.17    Subdivision 1. Establishment. The commissioner of employment and economic
169.18development shall establish a day training and habilitation grant program in fulfillment
169.19of the Olmstead Plan purpose of ensuring that people with disabilities have choices for
169.20competitive, meaningful, and sustained employment in the most integrated setting.
169.21    Subd. 2. Definitions. (a) For the purposes of this section, the following terms
169.22have the meanings given them.
169.23(b) "Day training and habilitation providers" means those organizations whose
169.24names are listed as Department of Human Services providers in the Minnesota Department
169.25of Administration, Materials Management Division, ALP Manual, Appendix J, without
169.26regard to whether they are listed as approved vendors with the Minnesota Department
169.27of Employment and Economic Development, Division of Rehabilitation Services as a
169.28community rehabilitation provider, limited-use vendor, or center for independent living,
169.29and irrespective as to whether they are accredited by CARF International.
169.30(c) "Competitive employment" means full-time or part-time employment, with or
169.31without support, in an integrated setting in the community that pays at least minimum
169.32wage, as defined by the Fair Labor Standards Act, but not less than the customary wage
169.33and level of benefits paid by the employer for the same or similar work performed by
169.34workers without a disability.
170.1(d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1,
170.22013, and all subsequent modifications approved by the United States District Court.
170.3    Subd. 3. Competitive process. The commissioner shall issue a request for proposals
170.4to day training and habilitation providers seeking proposals to assist the Department
170.5of Employment and Economic Development in achieving its goals as provided in the
170.6Olmstead Plan. Grant funds shall be used to improve individual employment outcomes
170.7by aligning programs, funding, and policies to support people with disabilities to choose,
170.8secure, and maintain competitive employment and self-employment, including, but not
170.9limited to, the following activities:
170.10(1) implementing policies and initiating processes that improve the employment
170.11outcomes of working adults with disabilities;
170.12(2) offering incentives for innovation that increase competitive employment in
170.13the general work force;
170.14(3) expanding the flexibility in current funding and services to increase competitive
170.15employment outcomes;
170.16(4) providing evidence of partnerships with private sector businesses and public
170.17sector employment; and
170.18(5) submitting outcome data, required by the department, according to the
170.19stipulations of the Olmstead Plan.
170.20    Subd. 4. Eligibility. Any person who has a disability as determined by the Social
170.21Security Administration or state medical review team is eligible to receive services
170.22provided with grant funds.
170.23    Subd. 5. Consultation required. The commissioner shall consult with the
170.24governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and
170.25Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and
170.26other governor-appointed disability councils in designing, implementing, and evaluating
170.27the competitive grant program.
170.28    Subd. 6. Report. On or before February 1, 2017, and annually thereafter, the
170.29commissioner shall report to the chairs and ranking minority members of the senate and
170.30house of representatives committees having jurisdiction over employment and economic
170.31development policy and finance on the amount of funds awarded and the outcomes
170.32reported by grantees.

170.33    Sec. 45. EXPLOITED FAMILIES RENTAL ASSISTANCE PILOT PROGRAM.
171.1    Subdivision 1. Rental assistance program. (a) The commissioner of housing finance
171.2shall establish a grant pilot program within the housing trust fund to serve individuals or
171.3families from emerging communities at risk of being homeless and who have been victims
171.4of gender-based violence, including but not limited to domestic violence, sexual assault,
171.5trafficking, international abusive marriage, or forced marriage. For the purposes of this
171.6section, the term "emerging communities" is defined as communities that are unfamiliar
171.7with mainstream government services and that have limited English proficiency. The
171.8commissioner shall award grants to organizations that can provide or partner with an
171.9organization that can provide linguistically and culturally appropriate services and that
171.10have the capacity to serve individuals or families from emerging communities who have
171.11experienced gender-based violence. The commissioner may consult with the Departments
171.12of Human Services and Public Safety when establishing the grant program.
171.13(b) The pilot program must:
171.14(1) provide rental assistance to individuals or families with a minor child;
171.15(2) require the participants to pay at least 30 percent of the participant's income
171.16toward the rent;
171.17(3) allow the families to choose their own housing, including single-family homes,
171.18townhomes, and apartments; and
171.19(4) give priority to individuals or families who experience barriers in accessing
171.20housing, including having limited English proficiency, lack of positive rental history,
171.21employment history, and financial history.
171.22    Subd. 2. Program evaluation. All grant recipients must collect and make
171.23available to the commissioner of housing finance aggregate data to assist the agency in
171.24the evaluation of the program. The commissioner of housing finance shall evaluate the
171.25program and measure the number of families served from emerging communities and the
171.26housing status of the participants.

171.27    Sec. 46. LAKE MILLE LACS AREA ECONOMIC RELIEF PROGRAM.
171.28    Subdivision 1. Relief program established. Mille Lacs County must develop and
171.29implement a Lake Mille Lacs area economic relief program to assist businesses adversely
171.30affected by a decline in walleye fishing on Lake Mille Lacs.
171.31    Subd. 2. Available relief. (a) The economic relief program established under this
171.32section may include grants or loans as provided in this section to the extent that funds are
171.33available. Prior to awarding a grant to Mille Lacs County for the relief program under
171.34this section:
172.1(1) the county must develop criteria, procedures, and requirements for:
172.2(i) determining eligibility for assistance;
172.3(ii) the duration, terms, underwriting and security requirements, and repayment
172.4requirements for loans;
172.5(iii) evaluating applications for assistance;
172.6(iv) awarding assistance; and
172.7(v) administering the grant and loan program authorized under this section;
172.8(2) the county must submit its criteria, procedures, and requirements developed
172.9pursuant to clause (1) to the commissioner of employment and economic development
172.10for review; and
172.11(3) the commissioner must approve the criteria, procedures, and requirements as
172.12developed pursuant to clause (1) to be used by the county in determining eligibility for
172.13assistance, evaluating, awarding, and administering the grant and loan program.
172.14(b) The relief authorized under this section includes:
172.15(1) grants not to exceed $50,000 per business. Grants may be awarded to applicants
172.16only when the county determines that a loan is not appropriate to address the needs of
172.17the applicant; and
172.18(2) loans, with or without interest, and deferred or forgivable loans. The maximum
172.19loan amount under this subdivision is $100,000 per business. The lending criteria adopted
172.20by the county for loans under this subdivision must:
172.21(i) specify that an entity receiving a deferred or forgivable loan must remain in
172.22the local community a minimum of five years after the date of the loan. The maximum
172.23loan deferral period must not exceed five years from the date the loan is approved. The
172.24maximum amount of a loan that may be forgiven must not exceed 50 percent of the
172.25principle amount and may be forgiven only if the business has remained in operation in
172.26the community for at least ten years after the loan is approved; and
172.27(ii) require submission of a business plan for continued operation until the walleye
172.28fishing resource recovers. The plan must document the probable success of the applicant's
172.29business plan and probable success in repaying the loan according to the terms established
172.30for the loan program; and
172.31(3) tourism promotion grants to the Mille Lacs Tourism Council.
172.32(c) All loan repayment funds under this subdivision must be paid to the commissioner
172.33of employment and economic development for deposit in the Minnesota investment fund
172.34disaster contingency account under Minnesota Statutes, section 116J.8731.
172.35    Subd. 3. Qualification requirements. To qualify for assistance under this section, a
172.36business must:
173.1(1) be located within one of the following municipalities surrounding Lake Mille
173.2Lacs:
173.3(i) in Crow Wing County, the city of Garrison, township of Garrison, or township
173.4of Roosevelt;
173.5(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
173.6of Malmo, or township of Lakeside; or
173.7(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
173.8of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
173.9(2) document a reduction of at least ten percent in gross receipts in any two-year
173.10period since 2010; and
173.11(3) be a business in one of the following industries, as defined within the
173.12North American Industry Classification System: accommodation, restaurants, bars,
173.13amusement and recreation, food and beverages retail, sporting goods, miscellaneous retail,
173.14general retail, museums, historical sites, health and personal care, gas station, general
173.15merchandise, business and professional membership, movies, or nonstore retailer, as
173.16determined by Mille Lacs County in consultation with the commissioner of employment
173.17and economic development.
173.18    Subd. 4. Monitoring. (a) Mille Lacs County must establish performance measures
173.19that include, but are not limited to, the following components:
173.20(1) the number of loans approved and the amounts and terms of the loans;
173.21(2) the number of grants awarded, award amounts, and the reason that a grant award
173.22was made in lieu of a loan;
173.23(3) the loan default rate;
173.24(4) the number of jobs created or retained as a result of the assistance, including
173.25information on the wages and benefit levels, the status of the jobs as full-time or part-time,
173.26and the status of the jobs as temporary or permanent;
173.27(5) the amount of business activity and changes in gross revenues of the grant or
173.28loan recipient as a result of the assistance; and
173.29(6) the new tax revenue generated as a result of the assistance.
173.30(b) The commissioner of employment and economic development must monitor
173.31Mille Lacs County's compliance with this section and the performance measures
173.32developed under paragraph (a).
173.33(c) Mille Lacs County must comply with all requests made by the commissioner
173.34under this section.
174.1    Subd. 5. Business subsidy requirements. Sections 116J.993 to 116J.995 do not
174.2apply to assistance under this section. Businesses in receipt of assistance under this section
174.3must provide for job creation and retention goals, and wage and benefit goals.
174.4    Subd. 6. Administrative costs. The commissioner of employment and economic
174.5development may use up to one percent of the appropriation made for this section for
174.6administrative expenses of the department.
174.7EFFECTIVE DATE.This section, except for subdivision 4, is effective July 1,
174.82016, and expires June 30, 2017. Subdivision 4 is effective July 1, 2016, and expires on
174.9the date the last loan is repaid or forgiven as provided under this section.

174.10    Sec. 47. REVISOR'S INSTRUCTION.
174.11In the next editions of Minnesota Statutes and Minnesota Rules, the revisor of
174.12statutes shall change the term "Urban Initiative Board" or similar to "Minnesota emerging
174.13entrepreneur program," "program," or similar terms as the context requires.

174.14ARTICLE 8
174.15LABOR AND INDUSTRY
174.16HOUSEKEEPING

174.17    Section 1. Minnesota Statutes 2015 Supplement, section 326B.13, subdivision 8, is
174.18amended to read:
174.19    Subd. 8. Effective date of rules. A rule to adopt or amend the State Building Code
174.20is effective 270 days after publication of the rule's notice of adoption in the State Register.
174.21The rule may provide for a later effective date. The rule may provide for an earlier effective
174.22date if the commissioner or board proposing the rule finds that an earlier effective date is
174.23necessary to protect public health and safety after considering, among other things, the need
174.24for time for training of individuals to comply with and enforce the rule. The commissioner
174.25must publish an electronic version of the entire adopted rule chapter on the department's
174.26Web site within ten days of receipt from the revisor of statutes. The commissioner shall
174.27clearly indicate the effective date of the rule on the department's Web site.

174.28    Sec. 2. Minnesota Statutes 2014, section 326B.439, is amended to read:
174.29326B.439 BAN ON LEAD IN PLUMBING.
174.30Lead pipe, Solders and flux containing more than 0.2 percent lead, and pipes and
174.31pipe fittings containing not more than eight a weighted average of 0.25 percent lead when
174.32used with respect to the wetted surfaces of pipes, pipe fittings, plumbing fittings, and
175.1fixtures shall not be used in any plumbing installation which conveys a potable water
175.2supply. A Minnesota seller of lead solder, except for a seller whose primary business is
175.3contracting in plumbing, heating, and air conditioning, shall not sell any solder containing
175.40.2 percent lead unless the seller displays a sign which states,
175.5"Contains Lead
175.6Minnesota law prohibits the use of this solder in any
175.7plumbing installation which is connected to a potable water
175.8supply."

175.9    Sec. 3. Minnesota Statutes 2014, section 326B.49, subdivision 1, is amended to read:
175.10    Subdivision 1. Application, examination, and license fees. (a) Applications for
175.11master and journeyman plumber's licenses shall be made to the commissioner, with
175.12all fees required by section 326B.092. Unless the applicant is entitled to a renewal,
175.13the applicant shall be licensed by the commissioner only after passing a satisfactory
175.14examination developed and administered by the commissioner, based upon rules adopted
175.15by the Plumbing Board, showing fitness.
175.16(b) All initial journeyman plumber's licenses shall be effective for more than one
175.17calendar year and shall expire on December 31 of the year after the year in which
175.18the application is made each odd-numbered year after issuance or renewal. All master
175.19plumber's licenses shall expire on December 31 of each even-numbered year after issuance
175.20or renewal. The commissioner shall in a manner determined by the commissioner, without
175.21the need for any rulemaking under chapter 14, phase in the renewal of master and
175.22journeyman plumber's licenses from one year to two years. By June 30, 2011, All renewed
175.23master and journeyman plumber's licenses shall be two-year licenses.
175.24(c) Applications for contractor licenses shall be made to the commissioner, with all
175.25fees required by section 326B.092. All contractor licenses shall expire on December 31 of
175.26each odd-numbered year after issuance or renewal.
175.27(d) For purposes of calculating license fees and renewal license fees required under
175.28section 326B.092:
175.29(1) the following licenses shall be considered business licenses: plumbing contractor
175.30and restricted plumbing contractor;
175.31(2) the following licenses shall be considered master licenses: master plumber and
175.32restricted master plumber;
175.33(3) the following licenses shall be considered journeyman licenses: journeyman
175.34plumber and restricted journeyman plumber; and
176.1(4) the registration of an unlicensed individual under section 326B.47, subdivision 3,
176.2shall be considered an entry level license.
176.3(e) For each filing of a certificate of responsible individual by an employer, the
176.4fee is $100.
176.5(f) The commissioner shall charge each person giving bond under section 326B.46,
176.6subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a
176.7licensed contractor.

176.8ARTICLE 9
176.9UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

176.10    Section 1. Minnesota Statutes 2014, section 268.035, subdivision 12, is amended to read:
176.11    Subd. 12. Covered employment. (a) "Covered employment" means the following
176.12unless excluded as "noncovered employment" under subdivision 20:
176.13    (1) an employee's entire employment during the calendar quarter if:
176.14    (i) the employment during the quarter is performed primarily in Minnesota;
176.15    (ii) the employment during the quarter is not performed primarily in Minnesota or
176.16any other state but some of the employment is performed in Minnesota and the base
176.17of operations or the place from which the employment is directed or controlled is in
176.18Minnesota; or
176.19    (iii) the employment during the quarter is not performed primarily in Minnesota
176.20or any other state and the base of operations or place from which the employment is
176.21directed or controlled is not in any state where part of the employment is performed, but
176.22the employee's residence is in Minnesota;
176.23    (2) an employee's entire employment during the calendar quarter performed within
176.24the United States or Canada, if:
176.25    (i) the employment is not considered covered employment under the unemployment
176.26insurance program of any other state, federal law, or the law of Canada; and
176.27    (ii) the place from which the employment is directed or controlled is in Minnesota;
176.28    (3) the employment during the calendar quarter, performed entirely outside of the
176.29United States and Canada, by an employee who is a United States citizen in the employ of
176.30an American employer if the employer's principal place of business in the United States is
176.31located in Minnesota. An "American employer," for the purposes of this clause, means a
176.32corporation organized under the laws of any state, an individual who is a resident of the
176.33United States, or a partnership if two-thirds or more of the partners are residents of the
176.34United States, or a trust, if all of the trustees are residents of the United States; and
177.1    (4) all employment during the calendar quarter performed by an officer or member
177.2of the crew of an American vessel on or in connection with the vessel, if the operating
177.3office from which the operations of the vessel operating on navigable waters within, or
177.4within and without, the United States are ordinarily and regularly supervised, managed,
177.5directed, and controlled is in Minnesota.
177.6(b) "Covered employment" includes covered agricultural employment under
177.7subdivision 11.
177.8    (c) For the purposes of satisfying the period of ineligibility under section 268.095,
177.9subdivision 10, "covered employment" includes covered employment covered under an
177.10unemployment insurance program:
177.11    (1) of any other state; or
177.12    (2) established by an act of Congress.
177.13EFFECTIVE DATE.This section is effective July 31, 2016, and applies to all
177.14matters pending a determination or a decision by an unemployment law judge

177.15    Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 29, is amended to read:
177.16    Subd. 29. Wages. (a) "Wages" means all compensation for employment, including
177.17commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and
177.18holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by
177.19a customer of an employer and accounted for by the employee to the employer; sickness
177.20and accident disability payments, except as otherwise provided in this subdivision; and
177.21the cash value of housing, utilities, meals, exchanges of services, and any other goods
177.22and services provided to compensate an employee, except:
177.23    (1) the amount of any payment made to, or on behalf of, an employee under a plan
177.24established by an employer that makes provision for employees generally or for a class or
177.25classes of employees, including any amount paid by an employer for insurance or annuities,
177.26or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and
177.27hospitalization expenses in connection with sickness or accident disability, or (iii) death;
177.28    (2) the payment by an employer of the tax imposed upon an employee under United
177.29States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
177.30to compensation paid to an employee for domestic employment in a private household of
177.31the employer or for agricultural employment;
177.32    (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
177.33to a trust described in United States Code, title 26, section 401(a) of the federal Internal
177.34Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
177.35unless the payment is made to an employee of the trust as compensation for services as an
178.1employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
178.2the time of the payment, is a plan described in section 403(a);
178.3    (4) the value of any special discount or markdown allowed to an employee on goods
178.4purchased from or services supplied by the employer where the purchases are optional and
178.5do not constitute regular or systematic payment for services;
178.6    (5) customary and reasonable directors' fees paid to individuals who are not
178.7otherwise employed by the corporation of which they are directors;
178.8    (6) the payment to employees for reimbursement of meal expenses when employees
178.9are required to perform work after their regular hours;
178.10    (7) the payment into a trust or plan for purposes of providing legal or dental services
178.11if provided for all employees generally or for a class or classes of employees;
178.12    (8) the value of parking facilities provided or paid for by an employer, in whole or in
178.13part, if provided for all employees generally or for a class or classes of employees;
178.14    (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
178.15or other right;
178.16    (10) advances or reimbursements for traveling or other bona fide ordinary and
178.17necessary expenses incurred or reasonably expected to be incurred in the business of the
178.18employer. Traveling and other reimbursed expenses must be identified either by making
178.19separate payments or by specifically indicating the separate amounts where both wages
178.20and expense allowances are combined in a single payment;
178.21    (11) residual payments to radio, television, and similar artists that accrue after
178.22the production of television commercials, musical jingles, spot announcements, radio
178.23transcriptions, film sound tracks, and similar activities;
178.24    (12) the income to a former employee resulting from the exercise of a nonqualified
178.25stock option;
178.26    (13) payments made to supplement supplemental unemployment benefits benefit
178.27payments under a plan established by an employer, that makes provisions for employees
178.28generally or for a class or classes of employees under the written terms of an agreement,
178.29contract, trust arrangement, or other instrument if the payment is not wages under the
178.30Federal Unemployment Tax Act. The plan must provide supplemental payments are
178.31wages unless made solely for the supplementing of weekly state or federal unemployment
178.32benefits. The plan must provide supplemental payments only for those weeks the applicant
178.33has been paid regular, extended, or additional unemployment benefits. The supplemental
178.34payments, when combined with the applicant's weekly unemployment benefits paid, may
178.35not exceed the applicant's regular weekly pay. The plan must not allow the assignment
178.36of Supplemental unemployment benefit payments or provide for any type of additional
179.1payment. The plan must not require may not be assigned, nor may any consideration be
179.2required from the applicant, other than a release of claims, and must not be designed for
179.3the purpose of avoiding the payment of Social Security obligations, or unemployment
179.4taxes on money disbursed from the plan in order to be excluded from wages;
179.5    (14) sickness or accident disability payments made by the employer after the
179.6expiration of six calendar months following the last calendar month that the individual
179.7worked for the employer;
179.8    (15) disability payments made under the provisions of any workers' compensation
179.9law;
179.10    (16) sickness or accident disability payments made by a third-party payer such as
179.11an insurance company; or
179.12    (17) payments made into a trust fund, or for the purchase of insurance or an annuity,
179.13to provide for sickness or accident disability payments to employees under a plan or
179.14system established by the employer that provides for the employer's employees generally
179.15or for a class or classes of employees.
179.16    (b) Nothing in this subdivision excludes from the term "wages" any payment
179.17made under any type of salary reduction agreement, including payments made under a
179.18cash or deferred arrangement and cafeteria plan, as defined in United States Code, title
179.1926, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the
179.20employee has the option to receive the payment in cash.
179.21    (c) Wages includes the total payment to the operator and supplier of a vehicle or
179.22other equipment where the payment combines compensation for personal services as well
179.23as compensation for the cost of operating and hiring the equipment in a single payment.
179.24This paragraph does not apply if:
179.25(1) there is a preexisting written agreement providing for allocation of specific
179.26amounts; or
179.27(2) at the time of each payment there is a written acknowledgement acknowledgment
179.28indicating the separate allocated amounts.
179.29    (d) Wages includes payments made for services as a caretaker. Unless there is a
179.30contract or other proof to the contrary, compensation is considered as being equally
179.31received by a married couple where the employer makes payment to only one spouse, or
179.32by all tenants of a household who perform services where two or more individuals share
179.33the same dwelling and the employer makes payment to only one individual.
179.34    (e) Wages includes payments made for services by a migrant family. Where services
179.35are performed by a married couple or a family and an employer makes payment to only
180.1one individual, each worker is considered as having received an equal share of the
180.2compensation unless there is a contract or other proof to the contrary.
180.3    (f) Wages includes advances or draws against future earnings, when paid, unless
180.4the payments are designated as a loan or return of capital on the books of the employer
180.5at the time of payment.
180.6    (g) Wages includes payments made by a subchapter "S" corporation, as organized
180.7under the Internal Revenue Code, to or on behalf of officers and shareholders that are
180.8reasonable compensation for services performed for the corporation.
180.9    For a subchapter "S" corporation, wages does not include:
180.10    (1) a loan for business purposes to an officer or shareholder evidenced by a
180.11promissory note signed by an officer before the payment of the loan proceeds and recorded
180.12on the books and records of the corporation as a loan to an officer or shareholder;
180.13    (2) a repayment of a loan or payment of interest on a loan made by an officer to the
180.14corporation and recorded on the books and records of the corporation as a liability;
180.15    (3) a reimbursement of reasonable corporation expenses incurred by an officer and
180.16documented by a written expense voucher and recorded on the books and records of
180.17the corporation as corporate expenses; and
180.18    (4) a reasonable lease or rental payment to an officer who owns property that is
180.19leased or rented to the corporation.

180.20    Sec. 3. Minnesota Statutes 2015 Supplement, section 268.085, subdivision 2, is
180.21amended to read:
180.22    Subd. 2. Not eligible. An applicant is ineligible for unemployment benefits for
180.23any week:
180.24    (1) that occurs before the effective date of a benefit account;
180.25    (2) that the applicant, at the beginning of any time during the week, has an
180.26outstanding fraud overpayment balance under section 268.18, subdivision 2, including
180.27any penalties and interest;
180.28    (3) that occurs in a period when the applicant is a student in attendance at, or on
180.29vacation from a secondary school including the period between academic years or terms;
180.30    (4) that the applicant is incarcerated or performing court-ordered community service.
180.31The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
180.32the applicant is incarcerated or performing court-ordered community service;
180.33    (5) that the applicant fails or refuses to provide information on an issue of
180.34ineligibility required under section 268.101;
181.1    (6) that the applicant is performing services 32 hours or more, in employment,
181.2covered employment, noncovered employment, volunteer work, or self-employment
181.3regardless of the amount of any earnings; or
181.4    (7) with respect to which the applicant has filed an application for unemployment
181.5benefits under any federal law or the law of any other state. If the appropriate agency
181.6finally determines that the applicant is not entitled to establish a benefit account under
181.7federal law or the law of any other state, this clause does not apply.

181.8    Sec. 4. Minnesota Statutes 2014, section 268.0865, subdivision 3, is amended to read:
181.9    Subd. 3. Continued request for unemployment benefits by electronic
181.10transmission. (a) A continued request for unemployment benefits by electronic
181.11transmission must be filed to that electronic mail address, telephone number, or Internet
181.12address prescribed by the commissioner for that applicant. In order to constitute a
181.13continued request, all information asked for, including information authenticating that the
181.14applicant is sending the transmission, must be provided in the format required. If all of the
181.15information asked for is not provided, the communication does not constitute a continued
181.16request for unemployment benefits.
181.17    (b) The continued request by electronic transmission communication must be filed
181.18within four calendar weeks following the week for which payment is requested on the
181.19date day of the week and during the time of day designated for the applicant for filing a
181.20continued request by electronic transmission.
181.21    (c) If the electronic transmission continued request is not filed as required under
181.22paragraph (b), a continued request by electronic transmission must be accepted if the
181.23applicant files the continued request by electronic transmission within three calendar
181.24weeks following the week for which payment is requested. If the continued request by
181.25electronic transmission is not filed within three four calendar weeks following the week
181.26for which payment is requested, the electronic continued request will not be accepted
181.27and the applicant is ineligible for unemployment benefits for the period covered by the
181.28continued request, unless the applicant shows good cause for failing to file the continued
181.29request by electronic transmission within the time period required.

181.30    Sec. 5. Minnesota Statutes 2014, section 268.0865, subdivision 4, is amended to read:
181.31    Subd. 4. Continued request for unemployment benefits by mail. (a) A
181.32continued request for unemployment benefits by mail must be on a form prescribed by
181.33the commissioner. The form, in order to constitute a continued request, must be totally
181.34completed and signed by the applicant. The form must be filed by mail, in an envelope
182.1with postage prepaid, and sent to the address designated during the week following the
182.2week for which payment is requested.
182.3    (b) If the mail continued request for unemployment benefits is not filed as required
182.4under paragraph (a), a continued request must be accepted if the form is filed by mail
182.5within three four calendar weeks following the week for which payment is requested.
182.6    (b) If the continued request form is not filed within three four calendar weeks
182.7following the week for which payment is requested, the form will not be accepted and the
182.8applicant is ineligible for unemployment benefits for the period covered by the continued
182.9request for unemployment benefits, unless the applicant shows good cause for failing to
182.10file the form by mail within the time period required.
182.11    (c) If the applicant has been designated to file a continued request for unemployment
182.12benefits by mail, an applicant may submit the form by facsimile transmission within
182.13three four calendar weeks following the week for which payment is requested. A form
182.14submitted by facsimile transmission must be sent only to the telephone number assigned
182.15for that purpose.
182.16    (d) An applicant who has been designated to file a continued request by mail may
182.17personally deliver a continued request form only to the location to which the form was
182.18otherwise designated to be mailed.

182.19    Sec. 6. Minnesota Statutes 2014, section 268.095, subdivision 2, is amended to read:
182.20    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end
182.21the employment was, at the time the employment ended, the employee's.
182.22(b) When determining if an applicant quit, the theory of a constructive quit does
182.23not apply.
182.24    (b) (c) An employee who has been notified that the employee will be discharged in
182.25the future, who chooses to end the employment while employment in any capacity is still
182.26available, is considered to have has quit the employment.
182.27    (c) (d) An employee who seeks to withdraw a previously submitted notice of quitting
182.28is considered to have has quit the employment, as of the intended date of quitting, if the
182.29employer does not agree that the notice may be withdrawn.
182.30    (d) (e) An applicant who has quit employment with a staffing service if, within
182.31five calendar days after completion of a suitable job assignment from a staffing service,
182.32the applicant:
182.33    (1) fails without good cause to affirmatively request an additional suitable job
182.34assignment,;
182.35    (2) refuses without good cause an additional suitable job assignment offered,; or
183.1    (3) accepts employment with the client of the staffing service, is considered to have
183.2quit employment with the staffing service. Accepting employment with the client of the
183.3staffing service meets the requirements of the exception to ineligibility under subdivision
183.41, clause (2).
183.5    This paragraph applies only if, at the time of beginning of employment with the
183.6staffing service, the applicant signed and was provided a copy of a separate document
183.7written in clear and concise language that informed the applicant of this paragraph and
183.8that unemployment benefits may be affected.
183.9    For purposes of this paragraph, "good cause" is a reason that is significant and would
183.10compel an average, reasonable worker, who would otherwise want an additional suitable
183.11job assignment with the staffing service (1) to fail to contact the staffing service, or (2)
183.12to refuse an offered assignment.

183.13    Sec. 7. Minnesota Statutes 2014, section 268.095, subdivision 5, is amended to read:
183.14    Subd. 5. Discharge defined. (a) A discharge from employment occurs when any
183.15words or actions by an employer would lead a reasonable employee to believe that the
183.16employer will no longer allow the employee to work for the employer in any capacity. A
183.17layoff because of lack of work is considered a discharge. A suspension from employment
183.18without pay of more than 30 calendar days is considered a discharge.
183.19(b) When determining if an applicant was discharged, the theory of a constructive
183.20discharge does not apply.
183.21    (b) (c) An employee who gives notice of intention to quit the employment and is not
183.22allowed by the employer to work the entire notice period is considered discharged from
183.23the employment as of the date the employer will no longer allow the employee to work. If
183.24the discharge occurs within 30 calendar days before the intended date of quitting, then,
183.25as of the intended date of quitting, the separation from employment is considered a quit
183.26from employment subject to subdivision 1.
183.27(c) (d) The end of a job assignment with the client of a staffing service is considered
183.28a discharge from employment with the staffing service unless subdivision 2, paragraph
183.29(d), applies.

183.30    Sec. 8. Minnesota Statutes 2014, section 268.18, is amended to read:
183.31268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.
183.32    Subdivision 1. Nonfraud Repaying an overpayment. (a) Any applicant who (1)
183.33because of a determination or amended determination issued under section 268.07 or
183.34268.101 , or any other section of this chapter, or (2) because of an unemployment law
184.1judge's decision under section 268.105, has received any unemployment benefits that the
184.2applicant was held not entitled to, is overpaid the benefits, and must promptly repay the
184.3unemployment benefits to the trust fund.
184.4    (b) If the applicant fails to repay the unemployment benefits overpaid, the
184.5commissioner may offset from any future unemployment benefits otherwise payable the
184.6amount of the overpayment. Except when the overpayment resulted because the applicant
184.7failed to report deductible earnings or deductible or benefit delaying payments, no single
184.8offset may exceed 50 percent of the amount of the payment from which the offset is made.
184.9The overpayment may also including any penalty and interest assessed under subdivisions
184.102 and 2b, the total due may be collected by the methods allowed under state and federal law.
184.11    (c) If an applicant has been overpaid unemployment benefits under the law of
184.12another state, because of a reason other than fraud, and that state certifies that the applicant
184.13is liable under its law to repay the unemployment benefits and requests the commissioner
184.14to recover the overpayment, the commissioner may offset from future unemployment
184.15benefits otherwise payable the amount of overpayment, except that no single offset may
184.16exceed 50 percent of the amount of the payment from which the offset is made.
184.17    Subd. 2. Overpayment because of fraud. (a) Any An applicant who receives has
184.18committed fraud if the applicant is overpaid unemployment benefits by:
184.19    (1) knowingly misrepresenting, misstating, or failing to disclose any material fact,;
184.20or who makes
184.21    (2) making a false statement or representation without a good faith belief as to the
184.22correctness of the statement or representation, has committed fraud.
184.23    After the discovery of facts indicating fraud, the commissioner must make issue a
184.24determination that the applicant obtained unemployment benefits by fraud and that the
184.25applicant must promptly repay the unemployment benefits to the trust fund. In addition, the
184.26commissioner must assess of overpayment penalty assessing a penalty equal to 40 percent
184.27of the amount fraudulently obtained overpaid. This penalty is in addition to penalties under
184.28section 268.182. The determination is effective the Sunday of the week that it was issued.
184.29    (b) Unless the applicant files an appeal within 20 calendar days after the sending of
184.30the a determination of overpayment by fraud penalty to the applicant by mail or electronic
184.31transmission, the determination is final. Proceedings on the appeal are conducted in
184.32accordance with section 268.105.
184.33    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest
184.34assessed, the total due may be collected by the methods allowed under state and federal
184.35law. A determination of overpayment by fraud penalty must state the methods of collection
184.36the commissioner may use to recover the overpayment, penalty, and interest assessed.
185.1Money received in repayment of fraudulently obtained overpaid unemployment benefits,
185.2penalties, and interest is first applied to the unemployment benefits overpaid, then to the
185.3penalty amount due, then to any interest due. 62.5 percent of the payments made toward the
185.4penalty are credited to the contingent account and 37.5 percent credited to the trust fund.
185.5    (d) If an applicant has been overpaid unemployment benefits under the law of
185.6another state because of fraud and that state certifies that the applicant is liable to repay
185.7the unemployment benefits and requests the commissioner to recover the overpayment,
185.8the commissioner may offset from future unemployment benefits otherwise payable the
185.9amount of overpayment.
185.10    (e) Regardless of the limitations in section 268.101, subdivision 2, paragraph
185.11(e), unemployment benefits paid for weeks more than four years before the date of (d)
185.12A determination of overpayment by fraud issued penalty under this subdivision are
185.13not considered overpaid unemployment benefits may be issued within 48 months of
185.14the establishment of the benefit account upon which the unemployment benefits were
185.15obtained through fraud.
185.16    Subd. 2b. Interest. On any unemployment benefits fraudulently obtained, and any
185.17penalty amounts assessed under subdivision 2, the commissioner must assess interest at the
185.18rate of one percent per month on any amount that remains unpaid beginning 30 calendar
185.19days after the date of the a determination of overpayment by fraud penalty. A determination
185.20of overpayment by fraud penalty must state that interest will be assessed. Interest is
185.21assessed in the same manner as on employer debt under section 268.057, subdivision 5.
185.22Interest payments collected under this subdivision are credited to the trust fund.
185.23    Subd. 3a. Offset of federal unemployment benefits. The commissioner is
185.24authorized to enter into reciprocal agreements with the United States Secretary of Labor,
185.25whereby, (a) The commissioner may offset from any future unemployment benefits
185.26otherwise payable the amount of a nonfraud overpayment. Except when the nonfraud
185.27overpayment resulted because the applicant failed to report deductible earnings or
185.28deductible or benefit delaying payments, no single offset may exceed 50 percent of the
185.29amount of the payment from which the offset is made.
185.30(b) Overpayments of unemployment benefits as determined under a federal law
185.31program, may be recovered by offset from unemployment future benefits otherwise
185.32payable and.
185.33(c) If an applicant has been overpaid unemployment benefits under the law of
185.34another state, the commissioner may offset from future benefits otherwise payable the
185.35amount of overpayment.
186.1(d) Nonfraud unemployment benefit overpayments under subdivisions 1 and 2
186.2may be recovered by offset from unemployment future benefits otherwise payable under
186.3a federal program.
186.4    Subd. 4. Cancellation of overpayments. (a) If unemployment benefits overpaid
186.5under subdivision 1 for reasons other than fraud are not repaid or offset from subsequent
186.6unemployment benefits as provided for in subdivision 1 within six years after the date
186.7of the determination or decision holding the applicant overpaid, the commissioner must
186.8cancel the overpayment balance, and no administrative or legal proceedings may be used
186.9to enforce collection of those amounts.
186.10    (b) If unemployment benefits determined overpaid under subdivision 2 because of
186.11fraud including penalties and interest are not repaid within ten years after the date of
186.12the determination of overpayment by fraud penalty, the commissioner must cancel the
186.13overpayment balance and any penalties and interest due, and no administrative or legal
186.14proceeding may be used to enforce collection of those amounts.
186.15    (c) The commissioner may cancel at any time any overpayment, including penalties
186.16and interest, that the commissioner determines is uncollectible because of death or
186.17bankruptcy.
186.18    Subd. 4a. Court fees; collection fees. (a) If the commissioner department
186.19is required to pay any court fees in an attempt to enforce collection of overpaid
186.20unemployment benefits, penalties, or interest, the commissioner may add the amount of
186.21the court fees may be added to the total amount due.
186.22(b) If an applicant who has been determined overpaid unemployment benefits
186.23because of fraud seeks to have any portion of the debt discharged under the federal
186.24bankruptcy code, and the commissioner department files an objection in bankruptcy court
186.25to the discharge, the commissioner may add the commissioner's cost of any court fees may
186.26be added to the debt if the bankruptcy court does not discharge the debt.
186.27(c) If the Internal Revenue Service assesses the commissioner department a fee for
186.28offsetting from a federal tax refund the amount of any overpayment, including penalties
186.29and interest, the amount of the fee may be added to the total amount due. The offset
186.30amount must be put in the trust fund and that amount credited to the total amount due
186.31from the applicant.
186.32    Subd. 5. Remedies. (a) Any method undertaken to recover an overpayment of
186.33unemployment benefits, including any penalties and interest, is not considered an election
186.34of a method of recovery.
186.35    (b) Intervention or lack thereof, in whole or in part, in a workers' compensation
186.36matter under section 176.361 is not considered an election of a remedy and does not
187.1prevent the commissioner from determining any unemployment benefits overpaid under
187.2subdivision 1 or 2 or taking action under section 268.182.
187.3    Subd. 6. Collection of overpayments. (a) The commissioner may not compromise
187.4the amount that has been determined of any overpaid under this section unemployment
187.5benefits including penalties and interest.
187.6    (b) The commissioner has discretion regarding the recovery of any overpayment
187.7under subdivision 1 for reasons other than fraud. Regardless of any law to the contrary, the
187.8commissioner is not required to refer any amount determined overpaid under subdivision
187.91 overpayment for reasons other than fraud to a public or private collection agency,
187.10including agencies of this state.
187.11    (c) Amounts determined overpaid under subdivision 1 for reasons other than fraud
187.12are not considered a "debt" to the state of Minnesota for purposes of any reporting
187.13requirements to the commissioner of management and budget.
187.14    (d) A pending appeal under section 268.105 does not suspend the assessment of
187.15interest, penalties, or collection of an overpayment under this section.
187.16    (e) Section 16A.626 applies to the repayment by an applicant of any overpayment,
187.17penalty, or interest under this section.

187.18    Sec. 9. Laws 2015, First Special Session chapter 1, article 6, section 16, the effective
187.19date, is amended to read:
187.20EFFECTIVE DATE.This section is effective the day following final enactment and
187.21is retroactive to March 1, 2015. This section expires on June 1, 2016 December 1, 2016.
187.22EFFECTIVE DATE.This section is effective the day following final enactment
187.23and applies retroactively to March 1, 2015.

187.24    Sec. 10. EFFECTIVE DATE.
187.25This article is effective July 31, 2016, unless indicated otherwise.

187.26ARTICLE 10
187.27UNEMPLOYMENT INSURANCE ADVISORY COUNCIL TECHNICAL

187.28    Section 1. Minnesota Statutes 2014, section 268.035, is amended by adding a
187.29subdivision to read:
187.30    Subd. 12e. Earnings. "Earnings" means all compensation to which the applicant has
187.31a legal claim and is earned income under state and federal law for income tax purposes.

188.1    Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 20, is amended to read:
188.2    Subd. 20. Noncovered employment. "Noncovered employment" means:
188.3    (1) employment for the United States government or an instrumentality thereof,
188.4including military service;
188.5    (2) employment for a state, other than Minnesota, or a political subdivision or
188.6instrumentality thereof;
188.7    (3) employment for a foreign government;
188.8    (4) employment for an instrumentality wholly owned by a foreign government,
188.9if the employment is of a character similar to that performed in foreign countries by
188.10employees of the United States government or an instrumentality thereof and the United
188.11States Secretary of State has certified that the foreign government grants an equivalent
188.12exemption to similar employment performed in the foreign country by employees of the
188.13United States government and instrumentalities thereof;
188.14    (5) (4) employment covered under United States Code, title 45, section 351, the
188.15federal Railroad Unemployment Insurance Act;
188.16    (6) employment covered by a reciprocal arrangement between the commissioner and
188.17another state or the federal government that provides that all employment performed by an
188.18individual for an employer during the period covered by the reciprocal arrangement is
188.19considered performed entirely within another state;
188.20    (7) (5) employment for a church or convention or association of churches, or an
188.21a nonprofit organization operated primarily for religious purposes that is operated,
188.22supervised, controlled, or principally supported by a church or convention or association
188.23of churches described in United States Code, title 26, section 501(c)(3) of the federal
188.24Internal Revenue Code and exempt from income tax under section 501(a);
188.25    (8) (6) employment for Minnesota or a political subdivision, or a nonprofit
188.26organization, of a duly ordained or licensed minister of a church in the exercise of a
188.27ministry or by a member of a religious order in the exercise of duties required by the order,
188.28for Minnesota or a political subdivision or an organization described in United States
188.29Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from
188.30income tax under section 501(a);
188.31    (9) (7) employment for Minnesota or a political subdivision, or a nonprofit
188.32organization, of an individual receiving rehabilitation of "sheltered" work in a facility
188.33conducted for the purpose of carrying out a program of rehabilitation for individuals
188.34whose earning capacity is impaired by age or physical or mental deficiency or injury or a
188.35program providing "sheltered" work for individuals who because of an impaired physical
188.36or mental capacity cannot be readily absorbed in the competitive labor market. This
189.1clause applies only to services performed for Minnesota or a political subdivision or an
189.2organization described in United States Code, title 26, section 501(c)(3) of the federal
189.3Internal Revenue Code and exempt from income tax under section 501(a) in a facility
189.4certified by the Rehabilitation Services Branch of the department or in a day training or
189.5habilitation program licensed by the Department of Human Services;
189.6    (10) (8) employment for Minnesota or a political subdivision, or a nonprofit
189.7organization, of an individual receiving work relief or work training as part of an
189.8unemployment work relief or work training program assisted or financed in whole or
189.9in part by any federal agency or an agency of a state or political subdivision thereof.
189.10This clause applies only to employment for Minnesota or a political subdivision or an
189.11organization described in United States Code, title 26, section 501(c)(3) of the federal
189.12Internal Revenue Code and exempt from income tax under section 501(a). This clause does
189.13not apply to programs that require unemployment benefit coverage for the participants;
189.14    (11) (9) employment for Minnesota or a political subdivision, as an elected official, a
189.15member of a legislative body, or a member of the judiciary;
189.16    (12) (10) employment as a member of the Minnesota National Guard or Air National
189.17Guard;
189.18    (13) (11) employment for Minnesota, or a political subdivision, or instrumentality
189.19thereof, as an employee of an individual serving only on a temporary basis in case of
189.20fire, flood, tornado, or similar emergency;
189.21    (14) (12) employment as an election official or election worker for Minnesota or
189.22a political subdivision, but only if the compensation for that employment was less than
189.23$1,000 in a calendar year;
189.24    (15) (13) employment for Minnesota that is a major policy-making or advisory
189.25position in the unclassified service;
189.26(16) (14) employment for Minnesota in an unclassified position established under
189.27section 43A.08, subdivision 1a;
189.28    (17) (15) employment for a political subdivision of Minnesota that is a nontenured
189.29major policy making or advisory position;
189.30    (18) (16) domestic employment in a private household, local college club, or local
189.31chapter of a college fraternity or sorority performed for a person, only, if the wages paid
189.32in any calendar quarter in either the current or prior calendar year to all individuals in
189.33domestic employment totaled less than $1,000.
189.34    "Domestic employment" includes all service in the operation and maintenance of a
189.35private household, for a local college club, or local chapter of a college fraternity or
190.1sorority as distinguished from service as an employee in the pursuit of an employer's
190.2trade or business;
190.3    (19) (17) employment of an individual by a son, daughter, or spouse, and
190.4employment of a child under the age of 18 by the child's father or mother;
190.5(20) (18) employment of an inmate of a custodial or penal institution;
190.6    (21) (19) employment for a school, college, or university, by a student who is
190.7enrolled and whose primary relation to the school, college, or university is as a student.
190.8This does not include an individual whose primary relation to the school, college, or
190.9university is as an employee who also takes courses;
190.10    (22) (20) employment of an individual who is enrolled as a student in a full-time
190.11program at a nonprofit or public educational institution that maintains a regular faculty
190.12and curriculum and has a regularly organized body of students in attendance at the place
190.13where its educational activities are carried on, taken for credit at the institution, that
190.14combines academic instruction with work experience, if the employment is an integral
190.15part of the program, and the institution has so certified to the employer, except that this
190.16clause does not apply to employment in a program established for or on behalf of an
190.17employer or group of employers;
190.18    (23) (21) employment of university, college, or professional school students in an
190.19internship or other training program with the city of St. Paul or the city of Minneapolis
190.20under Laws 1990, chapter 570, article 6, section 3;
190.21    (24) (22) employment for a hospital by a patient of the hospital. "Hospital" means
190.22an institution that has been licensed by the Department of Health as a hospital;
190.23    (25) (23) employment as a student nurse for a hospital or a nurses' training school by
190.24an individual who is enrolled and is regularly attending classes in an accredited nurses'
190.25training school;
190.26    (26) (24) employment as an intern for a hospital by an individual who has completed
190.27a four-year course in an accredited medical school;
190.28    (27) (25) employment as an insurance salesperson, by other than a corporate
190.29officer, if all the wages from the employment is solely by way of commission. The word
190.30"insurance" includes an annuity and an optional annuity;
190.31    (28) (26) employment as an officer of a township mutual insurance company or
190.32farmer's mutual insurance company operating under chapter 67A;
190.33    (29) (27) employment of a corporate officer, if the officer directly or indirectly,
190.34including through a subsidiary or holding company, owns 25 percent or more of the
190.35employer corporation, and employment of a member of a limited liability company, if the
191.1member directly or indirectly, including through a subsidiary or holding company, owns
191.225 percent or more of the employer limited liability company;
191.3    (30) (28) employment as a real estate salesperson, by other than a corporate officer,
191.4if all the wages from the employment is solely by way of commission;
191.5    (31) (29) employment as a direct seller as defined in United States Code, title 26,
191.6section 3508;
191.7    (32) (30) employment of an individual under the age of 18 in the delivery or
191.8distribution of newspapers or shopping news, not including delivery or distribution to any
191.9point for subsequent delivery or distribution;
191.10    (33) (31) casual employment performed for an individual, other than domestic
191.11employment under clause (18) (16), that does not promote or advance that employer's
191.12trade or business;
191.13    (34) (32) employment in "agricultural employment" unless considered it is "covered
191.14agricultural employment" under subdivision 11; or
191.15    (35) (33) if employment during one-half or more of any pay period was covered
191.16employment, all the employment for the pay period is considered covered employment;
191.17but if during more than one-half of any pay period the employment was noncovered
191.18employment, then all of the employment for the pay period is considered noncovered
191.19employment. "Pay period" means a period of not more than a calendar month for which a
191.20payment or compensation is ordinarily made to the employee by the employer.

191.21    Sec. 3. Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision
191.22to read:
191.23    Subd. 20b. Nonprofit organization. "Nonprofit organization" means an
191.24organization described in United States Code, title 26, section 501(c)(3), and is exempt
191.25from income tax under section 501(a).

191.26    Sec. 4. Minnesota Statutes 2014, section 268.035, subdivision 23a, is amended to read:
191.27    Subd. 23a. Suitable employment. (a) Suitable employment means employment in
191.28the applicant's labor market area that is reasonably related to the applicant's qualifications.
191.29In determining whether any employment is suitable for an applicant, the degree of risk
191.30involved to the health and safety, physical fitness, prior training, experience, length
191.31of unemployment, prospects for securing employment in the applicant's customary
191.32occupation, and the distance of the employment from the applicant's residence is
191.33considered.
192.1    (b) In determining what is suitable employment, primary consideration is given to the
192.2temporary or permanent nature of the applicant's separation from employment and whether
192.3the applicant has favorable prospects of finding employment in the applicant's usual or
192.4customary occupation at the applicant's past wage level within a reasonable period of time.
192.5    If prospects are unfavorable, employment at lower skill or wage levels is suitable
192.6if the applicant is reasonably suited for the employment considering the applicant's
192.7education, training, work experience, and current physical and mental ability.
192.8    The total compensation must be considered, including the wage rate, hours of
192.9employment, method of payment, overtime practices, bonuses, incentive payments, and
192.10fringe benefits.
192.11    (c) When potential employment is at a rate of pay lower than the applicant's former
192.12rate, consideration must be given to the length of the applicant's unemployment and the
192.13proportion of difference in the rates. Employment that may not be suitable because of
192.14lower wages during the early weeks of the applicant's unemployment may become suitable
192.15as the duration of unemployment lengthens.
192.16    (d) For an applicant seasonally unemployed, suitable employment includes
192.17temporary work in a lower skilled occupation that pays average gross weekly wages equal
192.18to or more than 150 percent of the applicant's weekly unemployment benefit amount.
192.19    (e) If a majority of the applicant's weeks of employment in the base period includes
192.20part-time employment, part-time employment in a position with comparable skills and
192.21comparable hours that pays comparable wages is considered suitable employment.
192.22    Full-time employment is not considered suitable employment for an applicant if a
192.23majority of the applicant's weeks of employment in the base period includes part-time
192.24employment.
192.25    (f) To determine suitability of employment in terms of shifts, the arrangement of
192.26hours in addition to the total number of hours is to be considered. Employment on a
192.27second, third, rotating, or split shift is suitable employment if it is customary in the
192.28occupation in the labor market area.
192.29    (g) Employment is not considered suitable if:
192.30    (1) the position offered is vacant because of a labor dispute;
192.31    (2) the wages, hours, or other conditions of employment are substantially less
192.32favorable than those prevailing for similar employment in the labor market area; or
192.33    (3) as a condition of becoming employed, the applicant would be required to join a
192.34company union or to resign from or refrain from joining any bona fide labor organization; or
192.35(4) the employment is with a staffing service and less than 25 percent of the
192.36applicant's wage credits are from a job assignment with the client of a staffing service.
193.1(h) A job assignment with a staffing service is considered suitable only if 25
193.2percent or more of the applicant's wage credits are from job assignments with clients of
193.3a staffing service and the job assignment meets the definition of suitable employment
193.4under paragraph (a).

193.5    Sec. 5. Minnesota Statutes 2014, section 268.085, subdivision 4, is amended to read:
193.6    Subd. 4. Social Security old age insurance benefits. (a) Any applicant aged 62 or
193.7over is required to state when filing an application for unemployment benefits and when
193.8filing continued requests for unemployment benefits if the applicant is receiving, has filed
193.9for, or intends to file for, primary Social Security old age benefits.
193.10    (b) Unless paragraph (b) (c) applies, 50 percent of the weekly equivalent of the
193.11primary Social Security old age benefit the applicant has received, has filed for, or
193.12intends to file for, with respect to that week must be deducted from an applicant's weekly
193.13unemployment benefit amount.
193.14    (b) (c) If all of the applicant's wage credits were earned while the applicant was
193.15claiming Social Security old age benefits, there is no deduction of the Social Security
193.16benefits from the applicant's weekly unemployment benefit amount.
193.17(c) (d) Information from the Social Security Administration is considered conclusive,
193.18absent specific evidence showing that the information was erroneous.
193.19(d) (e) This subdivision does not apply to Social Security survivor benefits.

193.20    Sec. 6. Minnesota Statutes 2014, section 268.085, subdivision 5, is amended to read:
193.21    Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday
193.22pay, with respect to any week, from employment, covered employment, noncovered
193.23employment, self-employment, or volunteer work, equal to or in excess of the applicant's
193.24weekly unemployment benefit amount, the applicant is ineligible for unemployment
193.25benefits for that week.
193.26    (b) If the applicant has earnings, including holiday pay, with respect to any week,
193.27that is less than the applicant's weekly unemployment benefit amount, from employment,
193.28covered employment, noncovered employment, self-employment, or volunteer work, 50
193.29percent of the earnings are deducted from the weekly unemployment benefit amount.
193.30    (c) No deduction is made from an applicant's weekly unemployment benefit amount
193.31for earnings from service in the National Guard or a United States military reserve unit or
193.32from direct service as a volunteer firefighter or volunteer ambulance service personnel.
193.33This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
194.1to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
194.2for jury duty pay or for pay as an election judge.
194.3    (d) The applicant may report deductible earnings on continued requests for
194.4unemployment benefits at the next lower whole dollar amount.
194.5    (e) Deductible earnings does not include any money considered that is a deductible
194.6payment under subdivision 3, but includes all compensation considered wages under
194.7section 268.035, subdivision 29, and any other compensation considered earned income
194.8under state and federal law for income tax purposes.

194.9    Sec. 7. REVISOR'S INSTRUCTION.
194.10(a) The revisor of statutes shall change "liability" to "liability for damages" in
194.11Minnesota Rules, part 3315.0555, subpart 1.
194.12(b) The revisor of statutes shall change "entitled to" to "eligible for" in Minnesota
194.13Statutes, section 268.085, subdivision 1, clause (6).
194.14(c) The revisor of statutes shall change "shall calculate" to "must calculate" in
194.15Minnesota Statutes, section 268.035, subdivision 23.
194.16(d) The revisor of statutes shall renumber Minnesota Statutes, section 268.035,
194.17subdivision 12d, to subdivision 12f.
194.18(e) The revisor of statutes shall reletter the paragraphs in Minnesota Statutes, section
194.19268.085, subdivision 4, as follows:
194.20(1) paragraph (a) shall be relettered paragraph (c); and
194.21(2) paragraph (c) shall be relettered paragraph (a).
194.22(f) The revisor of statutes shall renumber the reference to "clause (29)" to "clause
194.23(27)" in Minnesota Statutes, section 268.046, subdivision 1.
194.24(g) The revisor of statutes shall renumber the reference to "clause (10)" to "clause
194.25(8)" in Minnesota Statutes, section 383C.19.

194.26    Sec. 8. EFFECTIVE DATE.
194.27This article is effective July 31, 2016, and applies to all matters pending a
194.28determination or a decision by an unemployment law judge.

194.29ARTICLE 11
194.30UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

194.31    Section 1. Minnesota Statutes 2014, section 268.051, subdivision 5, is amended to read:
194.32    Subd. 5. Tax rate for new employers. (a) Each new taxpaying employer that does
194.33not qualify for an experience rating under subdivision 3, except new employers in a high
195.1experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
195.2(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
195.3the total amount of unemployment benefits paid all applicants during the 48 calendar
195.4months ending on June 30 of the prior calendar year by the total taxable wages of all
195.5taxpaying employers during the same period, plus the applicable base tax rate and any
195.6additional assessments under subdivision 2, paragraph (c).
195.7    (b) Each new taxpaying employer in a high experience rating industry that does not
195.8qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
195.9a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
195.10to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
195.11paid to all applicants from high experience rating industry employers during the 48
195.12calendar months ending on June 30 of the prior calendar year by the total taxable wages
195.13of all high experience rating industry employers during the same period, to a maximum
195.14provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
195.15additional assessments under subdivision 2, paragraph (c).
195.16    (c) An employer is considered to be in a high experience rating industry if:
195.17    (1) the employer is engaged in residential, commercial, or industrial construction,
195.18including general contractors;
195.19    (2) the employer is engaged in sand, gravel, or limestone mining;
195.20    (3) the employer is engaged in the manufacturing of concrete, concrete products,
195.21or asphalt; or
195.22    (4) the employer is engaged in road building, repair, or resurfacing, including bridge
195.23and tunnels and residential and commercial driveways and parking lots.
195.24(a) Each new taxpaying employer that does not qualify for an experience rating
195.25under subdivision 3 must be assigned, for the calendar year, a tax rate equal to the average
195.26experience rating for the employer's industry, plus the applicable base tax rate and any
195.27additional assessments under subdivision 2, paragraph (c). The tax rate assigned may not
195.28be less than one percent.
195.29(b) The employer's industry, except for construction, is determined by the first two
195.30digits of the North American Industrial Classification System (NAICS). The construction
195.31industry is determined to five digits. For each calendar year the commissioner must
195.32compute, in accordance with subdivision 3, the average industry experience rating for
195.33the employer's industry.
195.34(d) (c) Regardless of any law to the contrary, a taxpaying employer must be
195.35assigned a tax rate under this subdivision if the employer had no taxable wages during the
195.36experience rating period under subdivision 3.
196.1    (e) (d) The commissioner must send to the new employer, by mail or electronic
196.2transmission, a determination of tax rate. An employer may appeal the determination of
196.3tax rate in accordance with the procedures in subdivision 6, paragraph (c).
196.4EFFECTIVE DATE.This section is effective January 1, 2018, and applies to tax
196.5rates assigned for the calendar year 2018 and thereafter.

196.6    Sec. 2. Minnesota Statutes 2015 Supplement, section 268.07, subdivision 3b, is
196.7amended to read:
196.8    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
196.9unemployment benefits is effective the Sunday of the calendar week that the application
196.10was filed. An application for unemployment benefits may be backdated one calendar week
196.11before the Sunday of the week the application was actually filed if the applicant requests
196.12the backdating at within seven calendar days of the time date the application is filed. An
196.13application may be backdated only if the applicant was unemployed during the period of
196.14the backdating. If an individual attempted to file an application for unemployment benefits,
196.15but was prevented from filing an application by the department, the application is effective
196.16the Sunday of the calendar week the individual first attempted to file an application.
196.17    (b) A benefit account established under subdivision 2 is effective the date the
196.18application for unemployment benefits was effective.
196.19    (c) A benefit account, once established, may later be withdrawn only if:
196.20    (1) the applicant has not been paid any unemployment benefits on that benefit
196.21account; and
196.22(2) a new application for unemployment benefits is filed and a new benefit account is
196.23established at the time of the withdrawal.
196.24    A determination or amended determination of eligibility or ineligibility issued under
196.25section 268.101, that was sent before the withdrawal of the benefit account, remains in
196.26effect and is not voided by the withdrawal of the benefit account.
196.27    (d) An application for unemployment benefits is not allowed before the Sunday
196.28following the expiration of the benefit year on a prior benefit account. Except as allowed
196.29under paragraph (c), an applicant may establish only one benefit account each 52 calendar
196.30weeks. This paragraph applies to benefit accounts established under any federal law or
196.31the law of any other state.
196.32EFFECTIVE DATE.This section is effective July 31, 2016, and applies to
196.33applications for unemployment benefits filed after that date.

197.1    Sec. 3. Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:
197.2    Subdivision 1. Quit. An applicant who quit employment is ineligible for all
197.3unemployment benefits according to subdivision 10 except when:
197.4    (1) the applicant quit the employment because of a good reason caused by the
197.5employer as defined in subdivision 3;
197.6    (2) the applicant quit the employment to accept other covered employment that
197.7provided substantially equal to or better terms and conditions of employment, but
197.8the applicant did not work long enough at the second employment to have sufficient
197.9subsequent earnings wages paid to satisfy the period of ineligibility that would otherwise
197.10be imposed under subdivision 10 for quitting the first employment;
197.11    (3) the applicant quit the employment within 30 calendar days of beginning the
197.12employment because and the employment was unsuitable for the applicant;
197.13    (4) the employment was unsuitable for the applicant and the applicant quit to enter
197.14reemployment assistance training;
197.15    (5) the employment was part time and the applicant also had full-time employment
197.16in the base period, from which full-time employment the applicant separated because of
197.17reasons for which the applicant was held is not to be ineligible, and the wage credits from
197.18the full-time employment are sufficient to meet the minimum requirements to establish a
197.19benefit account under section 268.07;
197.20    (6) the applicant quit because the employer notified the applicant that the applicant
197.21was going to be laid off because of lack of work within 30 calendar days. An applicant
197.22who quit employment within 30 calendar days of a notified date of layoff because of lack
197.23of work is ineligible for unemployment benefits through the end of the week that includes
197.24the scheduled date of layoff;
197.25    (7) the applicant quit the employment (i) because the applicant's serious illness or
197.26injury made it medically necessary that the applicant quit; or (ii) in order to provide
197.27necessary care because of the illness, injury, or disability of an immediate family member
197.28of the applicant. This exception only applies if the applicant informs the employer of
197.29the medical problem and requests accommodation and no reasonable accommodation
197.30is made available.
197.31    If the applicant's serious illness is chemical dependency, this exception does not
197.32apply if the applicant was previously diagnosed as chemically dependent or had treatment
197.33for chemical dependency, and since that diagnosis or treatment has failed to make
197.34consistent efforts to control the chemical dependency.
197.35    This exception raises an issue of the applicant's being available for suitable
197.36employment under section 268.085, subdivision 1, that the commissioner must determine;
198.1    (8) the applicant's loss of child care for the applicant's minor child caused the
198.2applicant to quit the employment, provided the applicant made reasonable effort to obtain
198.3other child care and requested time off or other accommodation from the employer and no
198.4reasonable accommodation is available.
198.5    This exception raises an issue of the applicant's being available for suitable
198.6employment under section 268.085, subdivision 1, that the commissioner must determine;
198.7    (9) the applicant quit because domestic abuse, sexual assault, or stalking of the
198.8applicant or an immediate family member of the applicant, necessitated the applicant's
198.9quitting the employment.
198.10For purposes of this subdivision:
198.11(i) "domestic abuse" has the meaning given in section 518B.01;
198.12(ii) "sexual assault" means an act that would constitute a violation of sections
198.13609.342 to 609.3453 or 609.352; and
198.14(iii) "stalking" means an act that would constitute a violation of section 609.749; or
198.15(10) the applicant quit in order to relocate to accompany a spouse:
198.16(1) who is in the military; or
198.17(2) whose job was transferred by the spouse's employer to a new location changed
198.18making it impractical for the applicant to commute.
198.19EFFECTIVE DATE.This section is effective July 31, 2016, and applies to all
198.20matters pending a determination or a decision by an unemployment law judge.

198.21    Sec. 4. Minnesota Statutes 2014, section 268.101, subdivision 2, is amended to read:
198.22    Subd. 2. Determination. (a) The commissioner must determine any issue of
198.23ineligibility raised by information required from an applicant under subdivision 1,
198.24paragraph (a) or (c), and send to the applicant and any involved employer, by mail or
198.25electronic transmission, a document titled a determination of eligibility or a determination
198.26of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result
198.27of a quit or a discharge of the applicant must state the effect on the employer under section
198.28268.047 . A determination must be made in accordance with this paragraph even if a
198.29notified employer has not raised the issue of ineligibility.
198.30    (b) The commissioner must determine any issue of ineligibility raised by an
198.31employer and send to the applicant and that employer, by mail or electronic transmission,
198.32a document titled a determination of eligibility or a determination of ineligibility as is
198.33appropriate. The determination on an issue of ineligibility as a result of a quit or discharge
198.34of the applicant must state the effect on the employer under section 268.047.
198.35    If a base period employer:
199.1    (1) was not the applicant's most recent employer before the application for
199.2unemployment benefits;
199.3    (2) did not employ the applicant during the six calendar months before the
199.4application for unemployment benefits; and
199.5    (3) did not raise an issue of ineligibility as a result of a quit or discharge of the
199.6applicant within ten calendar days of notification under subdivision 1, paragraph (b);
199.7then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
199.8weeks following the week that the issue of ineligibility as a result of a quit or discharge of
199.9the applicant was raised by the employer.
199.10    A communication from an employer must specifically set out why the applicant
199.11should be determined ineligible for unemployment benefits for that communication to be
199.12considered to have raised an issue of ineligibility for purposes of this section. A statement
199.13of "protest" or a similar term without more information does not constitute raising an issue
199.14of ineligibility for purposes of this section.
199.15    (c) Subject to section 268.031, an issue of ineligibility is determined based upon
199.16that information required of an applicant, any information that may be obtained from an
199.17applicant or employer, and information from any other source.
199.18    (d) Regardless of the requirements of this subdivision, the commissioner is not
199.19required to send to an applicant a copy of the determination where the applicant has
199.20satisfied a period of ineligibility because of a quit or a discharge under section 268.095,
199.21subdivision 10
.
199.22    (e) The commissioner may issue a determination on an issue of ineligibility at any
199.23time within 24 months from the establishment of a benefit account based upon information
199.24from any source, even if the issue of ineligibility was not raised by the applicant or an
199.25employer. This paragraph does not prevent the imposition of a penalty on
199.26    If an applicant obtained unemployment benefits through fraud under section 268.18,
199.27subdivision 2
, or 268.182 a determination of ineligibility may be issued within 48 months
199.28of the establishment of the benefit account.
199.29    (f) A determination of eligibility or determination of ineligibility is final unless an
199.30appeal is filed by the applicant or notified employer within 20 calendar days after sending.
199.31The determination must contain a prominent statement indicating the consequences of not
199.32appealing. Proceedings on the appeal are conducted in accordance with section 268.105.
199.33    (g) An issue of ineligibility required to be determined under this section includes
199.34any question regarding the denial or allowing of unemployment benefits under this chapter
199.35except for issues under section 268.07. An issue of ineligibility for purposes of this section
199.36includes any question of effect on an employer under section 268.047.
200.1    (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
200.2the employer will be (1) sent a copy of the determination of eligibility or a determination
200.3of ineligibility, or (2) considered an involved employer for purposes of an appeal under
200.4section 268.105, only if the employer raised the issue of ineligibility.
200.5EFFECTIVE DATE.This section is effective July 31, 2016, and applies to all
200.6matters pending a determination.

200.7    Sec. 5. Minnesota Statutes 2014, section 268.182, subdivision 2, is amended to read:
200.8    Subd. 2. Administrative penalties. (a) Any applicant who knowingly makes a false
200.9statement or representation, who knowingly fails to disclose a material fact, or who makes
200.10a false statement or representation without a good faith belief as to the correctness of the
200.11statement or representation, in order to obtain or in an attempt to obtain unemployment
200.12benefits may be assessed, in addition to any other penalties, an administrative penalty of
200.13being ineligible for unemployment benefits for 13 to 104 weeks.
200.14    (b) A determination of ineligibility setting out the weeks the applicant is ineligible
200.15must be sent to the applicant by mail or electronic transmission. A determination of
200.16ineligibility under this subdivision may be issued within 48 months of the establishment of
200.17the benefit account upon which the unemployment benefits were obtained, or attempted to
200.18be obtained. Unless an appeal is filed within 20 calendar days of sending, the determination
200.19is final. Proceedings on the appeal are conducted in accordance with section 268.105.
200.20EFFECTIVE DATE.This section is effective July 31, 2016 and applies to all
200.21matters pending a determination.

200.22ARTICLE 12
200.23EQUITY

200.24
Section 1. APPROPRIATIONS.
200.25The sums shown in the columns marked "Appropriations" are appropriated to the
200.26agencies and for the purposes specified in this article. The appropriations are from the
200.27general fund, or another named fund, and are available for the fiscal year indicated
200.28for each purpose. The figures "2016" and "2017" used in this article mean that the
200.29appropriations listed under them are available for the fiscal year ending June 30, 2016,
200.30or June 30, 2017, respectively.
200.31
APPROPRIATIONS
200.32
Available for the Year
200.33
Ending June 30
200.34
2016
2017

201.1
Sec. 2. EQUITY APPROPRIATIONS
201.2
Subdivision 1.Total Appropriation
$
-0-
$
35,000,000
201.3
201.4
Subd. 2.Department of Employment and
Economic Development
-0-
34,250,000
201.5(a) $1,500,000 in fiscal year 2017 is for
201.6grants to the Neighborhood Development
201.7Center for small business programs. For
201.8fiscal year 2018 and thereafter, the base
201.9amount is $750,000 per year.
201.10Of this amount, $810,000 is for the small
201.11business development program, including:
201.12(1) $620,000 for training, lending, and
201.13business services for aspiring business
201.14owners, and expansion of services for
201.15immigrants in suburban communities; and
201.16(2) $190,000 is for Neighborhood
201.17Development Center model outreach and
201.18training activities in greater Minnesota.
201.19Of this amount, $690,000 is for grants for the
201.20small business incubator program, including:
201.21(1) $420,000 for capital improvements to
201.22existing small business incubators; and
201.23(2) $270,000 for the creation of two
201.24additional small business incubators.
201.25(b) $2,000,000 in fiscal year 2017 is for
201.26a competitive grant program to provide
201.27grants to organizations that provide support
201.28services for individuals, such as job training,
201.29employment preparation, internships, job
201.30assistance to fathers, financial literacy,
201.31academic and behavioral interventions
201.32for low-performing students, and youth
201.33intervention. Grants made under this section
202.1must focus on low-income communities,
202.2young adults from families with a history of
202.3intergenerational poverty, and communities
202.4of color. All grant recipients are subject to the
202.5requirements of section 11. Of this amount,
202.6up to five percent is for administration and
202.7monitoring of the program. For fiscal year
202.82018 and thereafter, the base amount is
202.9$1,500,000 per year.
202.10(c) $1,000,000 in fiscal year 2017 is for a
202.11grant to YWCA St. Paul to provide job
202.12training services and workforce development
202.13programs and services, including job skills
202.14training and counseling. For fiscal year 2018
202.15and thereafter, the base amount is $250,000
202.16per year.
202.17(d) $750,000 in fiscal year 2017 is for a grant
202.18to the YWCA of Minneapolis to provide
202.19economically challenged individuals the jobs
202.20skills training, career counseling, and job
202.21placement assistance necessary to secure
202.22a child development associate credential
202.23and to have a career path in early childhood
202.24education. For fiscal year 2018 and thereafter,
202.25the base amount is $375,000 per year.
202.26(e) $4,250,000 in fiscal year 2017 is for a
202.27grant to EMERGE Community Development,
202.28in collaboration with community partners, for
202.29services targeting Minnesota communities
202.30with the highest concentrations of African
202.31and African-American joblessness, based on
202.32the most recent census tract data, to provide
202.33employment readiness training, credentialed
202.34training placement, job placement and
202.35retention services, supportive services for
203.1hard-to-employ individuals, and a general
203.2education development fast track and adult
203.3diploma program. For fiscal year 2018 and
203.4thereafter, the base amount is $1,000,000 per
203.5year.
203.6(f) $2,500,000 in fiscal year 2017 is for a grant
203.7to the Metropolitan Economic Development
203.8Association (MEDA) for statewide business
203.9development and assistance services,
203.10including services to entrepreneurs with
203.11businesses that have the potential to create
203.12job opportunities for unemployed and
203.13underemployed people, with an emphasis
203.14on minority-owned businesses. For fiscal
203.15year 2018 and thereafter, the base amount is
203.16$1,175,000 per year.
203.17Of this appropriation, $1,600,000 is for a
203.18revolving loan fund to provide additional
203.19minority-owned businesses with access to
203.20capital.
203.21(g) $1,000,000 in fiscal year 2017 is for a
203.22grant to the Minneapolis Foundation for
203.23a strategic intervention program designed
203.24to target and connect program participants
203.25to meaningful, sustainable living-wage
203.26employment.
203.27(h) $1,200,000 in fiscal year 2017 is
203.28for performance grants under Minnesota
203.29Statutes, section 116J.8747, to Twin Cities
203.30R!SE to provide training to hard-to-train
203.31individuals. For fiscal year 2018 and
203.32thereafter, the base amount is $600,000 per
203.33year. Of the amount appropriated in fiscal
203.34year 2017, $407,000 is for a grant to Twin
203.35Cities R!SE, in collaboration with Metro
204.1Transit and Hennepin Technical College,
204.2for the Metro Transit technician training
204.3program. This is a onetime appropriation and
204.4is available until June 30, 2019.
204.5(i) $2,500,000 in fiscal year 2017 is for
204.6the creation of additional multiemployer,
204.7sector-based career connections pathways.
204.8This is a onetime appropriation and is
204.9available until June 30, 2019. $2,200,000 of
204.10this amount is for a grant to Hennepin County
204.11to establish pathways using the Hennepin
204.12Career Connections framework. $300,000
204.13of this amount is for a grant to Hennepin
204.14County to establish a pilot program based on
204.15the career connections pathways framework
204.16outside the seven-county metropolitan area,
204.17in collaboration with another local unit of
204.18government.
204.19(j) $1,500,000 in fiscal year 2017 is for the
204.20high-wage, high-demand, nontraditional jobs
204.21grant program under Minnesota Statutes,
204.22section 116L.99. Of this amount, up to five
204.23percent is for administration and monitoring
204.24of the program. For fiscal year 2018 and
204.25thereafter, the base amount is $1,000,000 per
204.26year.
204.27(k) $1,000,000 in fiscal year 2017 is for the
204.28youth-at-work competitive grant program
204.29under Minnesota Statutes, section 116L.562,
204.30subdivision 3. Of this amount, up to five
204.31percent is for administration and monitoring
204.32of the program.
204.33(l) $2,000,000 in fiscal year 2017 is for a
204.34competitive grant program for grants to
204.35organizations providing services to relieve
205.1economic disparities in the Southeast Asian
205.2community through workforce recruitment,
205.3development, job creation, assistance of
205.4smaller organizations to increase capacity,
205.5and outreach. Grant recipients under this
205.6paragraph are subject to the requirements of
205.7section 11. Of this amount, up to five percent
205.8is for administration and monitoring of the
205.9program. For fiscal year 2018 and thereafter,
205.10the base amount is $1,000,000 per year.
205.11(m) $1,500,000 in fiscal year 2017 is for
205.12a grant to Latino Communities United
205.13in Service (CLUES) to expand culturally
205.14tailored programs that address employment
205.15and education skill gaps for working parents
205.16and underserved youth by providing new
205.17job skills training to stimulate higher wages
205.18for low-income people, family support
205.19systems designed to reduce intergenerational
205.20poverty, and youth programming to promote
205.21educational advancement and career
205.22pathways. At least 50 percent of this amount
205.23must be used for programming targeted at
205.24greater Minnesota. For fiscal year 2018 and
205.25thereafter, the base amount is $750,000 per
205.26year.
205.27(n) $880,000 in fiscal year 2017 is for a grant
205.28to the American Indian Opportunities and
205.29Industrialization Center, in collaboration
205.30with the Northwest Indian Community
205.31Development Center, to reduce academic
205.32disparities for American Indian students
205.33and adults. The grant funds may be used to
205.34provide:
206.1(1) student tutoring and testing support
206.2services;
206.3(2) training in information technology;
206.4(3) assistance in obtaining a GED;
206.5(4) remedial training leading to enrollment in
206.6a postsecondary higher education institution;
206.7(5) real-time work experience in information
206.8technology fields; and
206.9(6) contextualized adult basic education.
206.10After notification to the legislature, the
206.11commissioner may transfer this appropriation
206.12to the commissioner of education. For fiscal
206.13year 2018 and thereafter, the base amount is
206.14$250,000 per year.
206.15(o) $500,000 in fiscal year 2017 is for a
206.16grant to the White Earth Nation for the
206.17White Earth Nation Integrated Business
206.18Development System to provide business
206.19assistance with workforce development,
206.20outreach, technical assistance, infrastructure
206.21and operational support, financing, and other
206.22business development activities. For fiscal
206.23year 2018 and thereafter, the base amount is
206.24$125,000 per year.
206.25(p) $500,000 is for the Minnesota emerging
206.26entrepreneur program under Minnesota
206.27Statutes, section 116M.18. Of this amount,
206.28up to five percent is for administration and
206.29monitoring of the program. For fiscal year
206.302018 and thereafter, the base amount is
206.31$750,000 per year.
206.32(q) $1,000,000 is for the Pathways to
206.33Prosperity adult workforce development
207.1competitive grant program. When
207.2awarding grants under this paragraph,
207.3the commissioner may give preference to
207.4any previous grantee with demonstrated
207.5success in job training and placement for
207.6hard-to-train individuals. A portion of the
207.7grants may provide year-end educational
207.8and experiential learning opportunities for
207.9teens and young adults that provide careers
207.10in the construction industry. Of this amount,
207.11up to five percent is for administration and
207.12monitoring of the program.
207.13(r) $320,000 is for the capacity building grant
207.14program to assist nonprofit organizations
207.15offering or seeking to offer workforce
207.16development and economic development
207.17programming. For fiscal year 2018 and
207.18thereafter, the base amount is $1,000,000 per
207.19year.
207.20(s) $2,000,000 in fiscal year 2017 is for grants
207.21for positive youth development, community
207.22engagement, legal services, and capacity
207.23building for community-based organizations
207.24serving Somali youth, including youth
207.25engagement, prevention, and intervention
207.26activities that help build the resiliency of
207.27the Somali Minnesotan community and
207.28address challenges facing Somali youth.
207.29Of this amount, $1,000,000 is for a grant
207.30to Youthprise for activities provided in this
207.31paragraph. Funded projects must provide
207.32culturally and linguistically relevant services.
207.33To the maximum extent possible, 50 percent
207.34of the funding must be distributed in greater
207.35Minnesota, and 50 percent of funding must
207.36be distributed within the metropolitan area,
208.1as defined in Minnesota Statutes, section
208.2473.121, subdivision 2. Of the amount
208.3appropriated for grants to be awarded by
208.4the commissioner, up to five percent is
208.5for administration and monitoring of the
208.6program. This is a onetime appropriation and
208.7is available until June 30, 2019.
208.8(t) $600,000 in fiscal year 2017 is for a grant
208.9to Ujamaa Place for job training, employment
208.10preparation, internships, education, training
208.11in the construction trades, housing, and
208.12organizational capacity building.
208.13(u) $1,750,000 in fiscal year 2017 is for
208.14a grant to Enterprise Minnesota, Inc. Of
208.15this amount, $875,000 is for the small
208.16business growth acceleration program under
208.17Minnesota Statutes, section 116O.115, and
208.18$875,000 is for operations under Minnesota
208.19Statutes, sections 116O.01 to 116O.061.
208.20For fiscal year 2018 and thereafter, the base
208.21amount is $875,000 per year.
208.22(v) $1,000,000 in fiscal year 2017 is for
208.23grants to centers for independent living
208.24under Minnesota Statutes, section 268A.11.
208.25For fiscal year 2018 and thereafter, the base
208.26amount is $500,000 per year.
208.27(w) $1,000,000 in fiscal year 2017 is from the
208.28general fund for State Services for the Blind.
208.29Funds appropriated must be used to provide
208.30services for senior citizens who are becoming
208.31blind. At least half of the funds appropriated
208.32must be used to provide training services for
208.33seniors who are becoming blind. Training
208.34services must provide independent living
208.35skills to seniors who are becoming blind to
209.1allow them to continue to live independently
209.2in their homes. For fiscal year 2018 and
209.3thereafter, the base amount is $500,000 per
209.4year.
209.5(x) $2,000,000 in fiscal year 2017 is from the
209.6general fund for a grant to the Construction
209.7Careers Foundation for the construction
209.8career pathway initiative to provide
209.9year-round educational and experiential
209.10learning opportunities for teens and young
209.11adults under the age of 21 that lead to careers
209.12in the construction industry. For fiscal year
209.132018 and thereafter, the base amount is
209.14$1,000,000 per year. Grant funds must be
209.15used to:
209.16(1) increase construction industry exposure
209.17activities for middle school and high school
209.18youth, parents, and counselors to reach a more
209.19diverse demographic and broader statewide
209.20audience. This requirement includes, but
209.21is not limited to, an expansion of programs
209.22to provide experience in different crafts to
209.23youth and young adults throughout the state;
209.24(2) increase the number of high schools
209.25in Minnesota offering construction classes
209.26during the academic year that utilize a
209.27multicraft curriculum;
209.28(3) increase the number of summer internship
209.29opportunities;
209.30(4) enhance activities to support graduating
209.31seniors in their efforts to obtain employment
209.32in the construction industry;
209.33(5) increase the number of young adults
209.34employed in the construction industry and
210.1ensure that they reflect Minnesota's diverse
210.2workforce; and
210.3(6) enhance an industrywide marketing
210.4campaign targeted to youth and young adults
210.5about the depth and breadth of careers within
210.6the construction industry.
210.7Programs and services supported by grant
210.8funds must give priority to individuals and
210.9groups that are economically disadvantaged
210.10or historically underrepresented in the
210.11construction industry, including but not
210.12limited to women, veterans, and members of
210.13minority and immigrant groups.
210.14
Subd. 3.Minnesota Housing Finance Agency
-0-
750,000
210.15$500,000 is for a grant to Build Wealth MN to
210.16provide a family stabilization plan program
210.17including program outreach, financial literacy
210.18education, and budget and debt counseling.
210.19$250,000 is a onetime appropriation for
210.20grants to eligible applicants to create or
210.21expand risk mitigation programs to reduce
210.22landlord financial risks for renting to persons
210.23eligible under Minnesota Statutes, section
210.24462A.204. Eligible programs may reimburse
210.25landlords for costs including but not limited
210.26to nonpayment of rent, or damage costs above
210.27those costs covered by security deposits. The
210.28agency may give higher priority to applicants
210.29that can demonstrate a matching amount
210.30of money by a local unit of government,
210.31business, or nonprofit organization. Grantees
210.32must establish a procedure to review and
210.33validate claims and reimbursements under
210.34this grant program.

211.1    Sec. 3. Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:
211.2    Subd. 6. Expenditures under specified amounts. A competitive solicitation
211.3process described in this chapter is not required for the acquisition of goods, services,
211.4construction, and utilities in an amount of $5,000 or less or as authorized by section
211.516C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b).

211.6    Sec. 4. Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:
211.7    Subd. 6. Purchasing methods. (a) The commissioner may award up to a six
211.8</