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HF 2749

1st Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 06/21/2017 11:31am

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1.1A bill for an act
1.2relating to state government; providing supplemental appropriations for the Office
1.3of Higher Education, the Board of Trustees of the Minnesota State Colleges and
1.4Universities, the Board of Regents of the University of Minnesota; jobs, economic
1.5development, labor, commerce and housing finance; state government and
1.6veterans; public safety and corrections; transportation; agriculture, environment,
1.7natural resources and clean water; early childhood education; kindergarten
1.8through grade 12; community and adult education including general education;
1.9education excellence; special education; education facilities; nutrition; state
1.10education agencies; health and human services; making certain appropriations
1.11adjustments; modifying disposition of certain revenues; requiring studies and
1.12reports; providing rulemaking authority;amending Minnesota Statutes 2014,
1.13sections 13.321, by adding a subdivision; 13.3805, by adding a subdivision;
1.1413.3806, subdivision 22; 13.43, subdivision 6; 16B.33, subdivisions 3, 4; 16C.10,
1.15subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a subdivision; 16E.0466;
1.1616E.21, subdivision 2, by adding subdivisions; 17.117, subdivisions 4, 11a;
1.1741A.12, subdivision 2; 62D.04, subdivision 1; 62D.08, subdivision 3; 62J.495,
1.18subdivision 4; 62J.496, subdivision 1; 62J.497, subdivisions 1, 3; 62M.02,
1.19subdivisions 12, 14, 15, 17, by adding subdivisions; 62M.05, subdivisions 3a,
1.203b; 62M.06, subdivisions 2, 3; 62M.07; 62M.09, subdivision 3; 62M.11; 62Q.81,
1.21subdivision 4; 62V.05, subdivision 2; 84.091, subdivision 2; 84.798, subdivision
1.222; 84.8035; 85.015, subdivision 13; 89.0385; 93.0015, subdivision 3; 93.2236;
1.2394.3495, subdivisions 2, 3, 7; 97A.405, subdivision 2; 97A.465, by adding a
1.24subdivision; 115B.48, by adding a subdivision; 115B.50, subdivision 3, by
1.25adding a subdivision; 115C.13; 115E.042; 116J.396, subdivision 2; 116J.423;
1.26116J.424; 116J.431, subdivisions 1, 2, 4, 6; 116J.68; 116L.99; 116M.14,
1.27subdivisions 2, 4, by adding subdivisions; 116M.15, subdivision 1; 116M.17,
1.28subdivisions 2, 4; 116M.18; 119B.13, subdivision 1; 120B.021, subdivisions
1.291, 3; 120B.115; 120B.232; 120B.30, subdivision 2, by adding a subdivision;
1.30120B.31, by adding a subdivision; 120B.35; 120B.36, as amended; 122A.61, by
1.31adding a subdivision; 122A.63, subdivision 1; 122A.74; 123B.04, subdivision
1.322, by adding a subdivision; 123B.53, subdivision 5; 123B.535; 124D.091,
1.33subdivisions 2, 3; 124D.1158, subdivisions 3, 4; 124D.135, subdivision 6, by
1.34adding subdivisions; 124D.55; 124D.59, by adding a subdivision; 124D.68,
1.35subdivision 2; 126C.05, subdivision 3; 126C.10, subdivisions 2d, 24; 127A.45,
1.36subdivision 6a; 136A.101, subdivisions 5a, 10; 144A.75, subdivisions 5, 6, 8, by
1.37adding a subdivision; 145.4716, subdivision 2, by adding a subdivision; 152.27,
1.38subdivision 2, by adding a subdivision; 152.33, by adding a subdivision; 161.368;
1.39165.14, subdivision 6; 168.017, by adding a subdivision; 168.021, subdivisions 1,
2.12, 2a; 168A.29, subdivision 1; 169.345, subdivisions 1, 2, 3; 171.06, subdivision
2.22; 171.07, by adding a subdivision; 174.185; 174.30, subdivisions 1, 4a, 8, by
2.3adding a subdivision; 179A.041, by adding subdivisions; 198.03, subdivisions 2,
2.43; 214.075, subdivision 3; 216B.2424, subdivision 5a; 216B.62, subdivision 2, by
2.5adding a subdivision; 219.015; 219.1651; 222.49; 222.50, subdivision 6; 237.012,
2.6subdivision 1; 245.99, subdivision 2; 245A.10, subdivisions 2, 4, 8; 245C.03,
2.7by adding a subdivision; 245C.04, subdivision 1; 245C.05, subdivisions 2b, 4,
2.87; 245C.08, subdivisions 2, 4; 245C.11, subdivision 3; 245C.17, subdivision 6;
2.9245C.23, subdivision 2; 246.50, subdivision 7; 246.54, as amended; 246B.01,
2.10subdivisions 1b, 2b; 246B.035; 246B.10; 254B.01, subdivision 4a; 254B.03,
2.11subdivision 4; 254B.04, subdivision 2a; 254B.06, subdivision 2, by adding
2.12a subdivision; 256.01, by adding a subdivision; 256B.04, subdivision 14;
2.13256B.057, by adding a subdivision; 256B.059, subdivisions 1, 2, 3, by adding a
2.14subdivision; 256B.06, subdivision 4; 256B.0621, subdivision 10; 256B.0622, by
2.15adding a subdivision; 256B.0625, subdivisions 30, 34, by adding subdivisions;
2.16256B.0924, by adding a subdivision; 256B.0949; 256B.15, subdivisions 1,
2.171a, 2; 256B.4912, by adding a subdivision; 256B.4914, subdivisions 5, 11;
2.18256B.69, subdivision 6; 256B.761; 256D.051; 256L.01, subdivision 1a; 256L.04,
2.19subdivisions 1, 1a, 2, 7; 256L.07, subdivision 1; 256L.11, subdivision 7; 256N.26,
2.20subdivision 3; 260C.451, by adding a subdivision; 297B.01, subdivision 16;
2.21297H.13, subdivision 2; 299A.41, subdivisions 3, 4; 299A.55; 299D.03,
2.22subdivision 5; 327.14, subdivision 8; 353.01, subdivision 43; 360.013, by adding
2.23a subdivision; 360.075, subdivisions 1, 2; 360.55, by adding a subdivision;
2.24473.121, subdivision 2; 473.845, subdivision 1; 518.175, subdivision 5; 518A.34;
2.25518A.35, subdivision 1; 518A.36; 609.3241; 626.556, subdivisions 3e, 10f;
2.26Minnesota Statutes 2015 Supplement, sections 16A.724, subdivision 2; 16C.16,
2.27subdivision 6a; 16C.19; 41A.14, subdivisions 1, 2; 41A.15, subdivision 10, by
2.28adding subdivisions; 41A.16, subdivision 1; 41A.17, subdivisions 1, 2; 41A.18,
2.29subdivision 1; 62U.04, subdivision 11; 116D.04, subdivision 2a; 116J.394;
2.30120A.41; 120B.021, subdivision 4; 120B.31, subdivision 4; 120B.36, subdivision
2.311; 122A.21, subdivision 2; 122A.415, subdivision 4; 122A.61, subdivision 1;
2.32123B.595, subdivisions 1, 10, 11; 124D.231, subdivision 2; 124D.59, subdivision
2.332; 124E.10, by adding a subdivision; 125A.08; 125A.11, subdivision 1; 125A.21,
2.34subdivision 3; 125A.76, subdivision 2c; 125A.79, subdivision 1; 126C.05,
2.35subdivision 1; 126C.10, subdivision 13a; 127A.47, subdivision 7; 136A.246,
2.36by adding subdivisions; 136A.87; 144.061; 144.4961, subdivisions 3, 4, 5,
2.376, 8, by adding a subdivision; 144A.75, subdivision 13; 174.30, subdivisions
2.384, 10; 222.50, subdivision 7; 245.4889, subdivision 1; 245.735, subdivisions
2.393, 4; 245C.08, subdivision 1; 245D.03, subdivision 1; 254B.05, subdivision
2.405; 256B.059, subdivision 5; 256B.0625, subdivisions 17, 17a, 18a, 20, 31,
2.4158; 256B.441, subdivisions 30, 66; 256B.4913, subdivision 4a; 256B.4914,
2.42subdivisions 10, 14, 15; 256B.76, subdivisions 1, 2, 4; 256B.766; 256L.01,
2.43subdivision 5; 256L.03, subdivision 5; 256L.04, subdivision 7b; 256L.05,
2.44subdivision 3a; 256L.06, subdivision 3; 256L.15, subdivisions 1, 2; 256M.41,
2.45subdivision 3; 256P.06, subdivision 3; 260C.203; 260C.212, subdivisions 1,
2.4614; 260C.215, subdivision 4; 260C.451, subdivision 6; 260C.521, subdivision
2.471; 326B.988; 518A.26, subdivision 14; 518A.39, subdivision 2; 626.556,
2.48subdivisions 2, 3c, 10b; Laws 1994, chapter 643, section 15, subdivision 8; Laws
2.492000, chapter 486, section 4, as amended; Laws 2011, First Special Session
2.50chapter 11, article 4, section 8; Laws 2012, chapter 263, sections 1, as amended;
2.512; Laws 2013, chapter 108, article 14, section 2, subdivision 1, as amended;
2.52Laws 2014, chapter 198, article 2, section 2; Laws 2014, chapter 312, article 11,
2.53sections 10; 11; 13; 16; 18; article 12, section 6, subdivision 5, as amended;
2.54Laws 2015, chapter 71, article 8, section 24; article 14, sections 4, subdivision
2.553; 9; Laws 2015, chapter 75, article 1, sections 1; 3, subdivisions 1, 2, 3; 4; 5,
2.56subdivisions 1, 2, 3; Laws 2015, chapter 77, article 1, section 3; Laws 2015, First
2.57Special Session chapter 1, article 1, sections 3, subdivisions 5, 6, 10; 4; 6; 8,
2.58subdivisions 1, 7; 9; Laws 2015, First Special Session chapter 3, article 1, section
3.127, subdivisions 2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions 2, 3, 4, 5, 6, 7,
3.29, 11, 12, 15, 19, 21, 24, 26; article 3, section 15, subdivision 3; article 4, sections
3.34; 9, subdivision 2; article 5, section 30, subdivisions 2, 3, 5; article 6, section 13,
3.4subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3, 4; article 9, section
3.58, subdivisions 5, 6, 7, 9; article 10, section 3, subdivisions 2, 6, 7; article 11,
3.6section 3, subdivisions 2, 3; article 12, section 4, subdivision 2; Laws 2015,
3.7First Special Session chapter 4, article 1, sections 2, subdivision 4; 5; article 3,
3.8sections 2, subdivision 4; 3, subdivision 5; article 4, section 131; proposing
3.9coding for new law in Minnesota Statutes, chapters 13; 16C; 17; 41A; 62D; 62Q;
3.1062V; 86B; 103F; 116J; 116L; 120B; 122A; 124D; 125B; 136A; 136F; 144; 148;
3.11168; 168A; 198; 219; 256B; 260C; 260D; 325F; 360; 462A; 626; proposing
3.12coding for new law as Minnesota Statutes, chapters 146C; 147F; 153B; repealing
3.13Minnesota Statutes 2014, sections 144.058; 256B.059, subdivision 1a; 256L.04,
3.14subdivisions 2a, 8; 256L.22; 256L.24; 256L.26; 256L.28; Minnesota Statutes
3.152015 Supplement, section 115B.48, subdivision 9; Laws 2015, First Special
3.16Session chapter 1, article 1, section 2, subdivision 8.
3.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.18ARTICLE 1
3.19HIGHER EDUCATION APPROPRIATIONS

3.20
Section 1. APPROPRIATIONS.
3.21The sums shown in the columns marked "Appropriations" are added to the
3.22appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the
3.23agencies and for the purposes specified in this article. The appropriations are from the
3.24general fund, or another named fund, and are available for the fiscal years indicated
3.25for each purpose. The figures "2016" and "2017" used in this article mean that the
3.26appropriations listed under them are available for the fiscal year ending June 30, 2016, or
3.27June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
3.28year 2017. "The biennium" is fiscal years 2016 and 2017.
3.29
APPROPRIATIONS
3.30
Available for the Year
3.31
Ending June 30
3.32
2016
2017

3.33
3.34
Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION
3.35
Subdivision 1.Total Appropriations
$
-0-
$
17,570,000
3.36The amounts that may be spent for each
3.37purpose are specified in the following
3.38subdivisions.
3.39
3.40
Subd. 2.Equity in Postsecondary Education
Grants
-0-
14,320,000
4.1For equity in postsecondary attainment
4.2grants under section 15. This appropriation
4.3is available until June 30, 2020. Of this
4.4appropriation, $100,000 may be used for
4.5administration expenses to administer
4.6the grant program. This is a onetime
4.7appropriation.
4.8
4.9
Subd. 3.Teacher Diversity Recommendation
and Report
-0-
80,000
4.10For the teacher diversity recommendation
4.11and report under section 19. This is a onetime
4.12appropriation.
4.13
Subd. 4.State Grant
-0-
1,735,000
4.14For the state grant program under Minnesota
4.15Statutes, section 136A.121. This is a onetime
4.16appropriation.
4.17
Subd. 5.Dual Credit, Parent Information
-0-
25,000
4.18For the purpose of obtaining and providing
4.19information under Minnesota Statutes,
4.20section 136A.87, paragraph (b). The base for
4.21fiscal year 2018 and later is $20,000.
4.22
4.23
Subd. 6.Addiction Medicine Graduate
Fellowship Program
-0-
210,000
4.24For establishing a grant program used to
4.25support up to four physicians who are
4.26enrolled each year in an addiction medicine
4.27fellowship program. A grant recipient must
4.28be enrolled in a program that trains fellows
4.29in diagnostic interviewing, motivational
4.30interviewing, addiction counseling,
4.31recognition and care of common acute
4.32withdrawal syndromes and complications,
4.33pharmacotherapies of addictive disorders,
4.34epidemiology and pathophysiology of
4.35addiction, addictive disorders in special
5.1populations, secondary interventions, use
5.2of screening and diagnostic instruments,
5.3inpatient care, and working within a
5.4multidisciplinary team, and prepares doctors
5.5to practice addiction medicine in rural and
5.6underserved areas of the state. The base for
5.7this program is $210,000 in fiscal year 2018
5.8and 2019 and is zero in fiscal year 2020.
5.9
Subd. 7.Dual Training
-0-
200,000
5.10For making grants under Minnesota Statutes,
5.11section 136A.246, subdivision 8a. This
5.12appropriation is available until June 30, 2019.
5.13
5.14
Subd. 8.Student and Employer Connection
Information System
-0-
1,000,000
5.15For student and employer connection
5.16information system under section 18. Up
5.17to $100,000 of this appropriation may be
5.18spent for administrative expenses related
5.19to the appropriation. This is a onetime
5.20appropriation and is available until June 30,
5.212019.

5.22
5.23
5.24
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
5.25
Subdivision 1.Total Appropriations
$
-0-
$
12,018,000
5.26The amounts that may be spent for each
5.27purpose are specified in the following
5.28subdivisions.
5.29
5.30
Subd. 2. Operating Support and Protecting
Affordability
-0-
10,000,000
5.31
Subd. 3.Principals' Leadership Institute
-0-
200,000
5.32For a grant to the Minnesota State University
5.33Mankato Principals' Leadership Institute
5.34under Minnesota Statutes, section 136A.89.
6.1
Subd. 4.Early Childhood Online Program
-0-
100,000
6.2To develop a multicampus online program
6.3for early childhood teacher preparation. This
6.4is a onetime appropriation.
6.5
Subd. 5.MnSCU Open Textbooks
-0-
100,000
6.6(a) For programs on system campuses
6.7that promote adoption of open textbooks.
6.8Programs must focus on the review, creation,
6.9and promotion of new or existing open
6.10textbooks and on saving money for students
6.11while meeting the academic needs of faculty.
6.12This is a onetime appropriation.
6.13(b) By January 15, 2017, the board shall
6.14report to the chairs and ranking minority
6.15members of the legislative committees with
6.16jurisdiction over higher education regarding
6.17the progress of the pilot programs. The
6.18report shall include a summary of each pilot
6.19program and the total savings expected for
6.20students as a result of the programs.
6.21
Subd. 6.MnSCU Open Textbook Library
-0-
100,000
6.22To expand and promote the open textbook
6.23library to faculty across the state. This is a
6.24onetime appropriation.
6.25
6.26
Subd. 7.Developmentally Delayed Student
Pilot
-0-
750,000
6.27For the pilot program for developmentally
6.28delayed students under section 17. The base
6.29for fiscal year 2018 and later is $853,000.
6.30
6.31
Subd. 8.Supplemental Instruction and Data
Reporting
-0-
768,000
6.32For activities and reporting under Minnesota
6.33Statutes, section 136F.33. This is a onetime
6.34appropriation.

7.1
7.2
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
7.3
Subdivision 1.Total Appropriation
$
-0-
$
18,100,000
7.4The amounts that may be spent for each
7.5purpose are specified in the following
7.6subdivisions.
7.7
Subd. 2.Health Restoration
-0-
5,000,000
7.8This appropriation is for the following
7.9activities:
7.10$3,000,000 is for support for faculty
7.11physicians who teach at eight residency
7.12program sites, including medical resident and
7.13student training programs in the Department
7.14of Family Medicine.
7.15$1,000,000 is for the Mobile Dental Clinic,
7.16in which dental students provide patient care
7.17as part of their clinical education and training
7.18under the supervision of faculty dentists.
7.19$1,000,000 is for expansion of geriatric
7.20education and family programs.
7.21
Subd. 3.Tuition Relief
-0-
13,000,000
7.22For undergraduate student tuition relief for
7.23Minnesota residents. The Board of Regents
7.24is requested not to offset the tuition relief
7.25by increases in mandatory fees, charges, or
7.26other assessments to the student.
7.27
7.28
Subd. 4.Rochester Campus, Collegiate
Recovery Program
-0-
100,000
7.29(a) To design and implement a collegiate
7.30recovery program at its Rochester campus.
7.31This is a onetime appropriation and is
7.32available until June 30, 2019.
7.33(b) The purpose of the collegiate recovery
7.34program is to provide structured support
8.1for students in recovery from alcohol,
8.2chemical, or other addictive behaviors.
8.3Program activities may include, but are not
8.4limited to, specialized professional support
8.5through academic, career, and financial
8.6advising; establishment of on-campus
8.7or residential peer support communities;
8.8and opportunities for personal growth
8.9through leadership development and other
8.10community engagement activities.
8.11(c) No later than January 15, 2020, the
8.12Board of Regents must submit a report to
8.13the chairs and ranking minority members of
8.14the legislative committees with jurisdiction
8.15over higher education finance and policy on
8.16campus recovery program outcomes. Based
8.17on available data, the report must describe,
8.18in summary form, the number of students
8.19participating in the program and the success
8.20rate of participants, including retention and
8.21graduation rates, and long-term recovery and
8.22relapse rates.

8.23    Sec. 5. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE
8.24COSTS.
8.25The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision
8.2618, paragraph (c), for fiscal year 2017 for information technology and administrative costs
8.27is available on the effective date of this section and until June 30, 2017.
8.28EFFECTIVE DATE.This section is effective the day following final enactment.

8.29    Sec. 6. Minnesota Statutes 2014, section 122A.74, is amended to read:
8.30122A.74 PRINCIPALS' LEADERSHIP INSTITUTE, UNIVERSITY OF
8.31MINNESOTA.
8.32    Subdivision 1. Establishment. (a) The commissioner of education may contract
8.33with the Minnesota State University Mankato or the regents of the University of Minnesota
9.1to establish a Principals' Leadership Institute to provide professional development to
9.2school principals by:
9.3(1) creating a network of leaders in the educational and business communities to
9.4communicate current and future trends in leadership techniques;
9.5(2) helping to create a vision for the school that is aligned with the community
9.6and district priorities;
9.7(3) developing strategies to retain highly qualified teachers and ensure that diverse
9.8student populations, including at-risk students, children with disabilities, English learners,
9.9and gifted students, among others, have equal access to these highly qualified teachers; and
9.10(4) providing training to analyze data using culturally competent tools.
9.11(b) The University of Minnesota must cooperate with participating members of the
9.12business community to provide funding and content for the institute.
9.13(c) Participants must agree to attend the Principals' Leadership Institute for four
9.14weeks during the academic summer.
9.15(d) The Principals' Leadership Institute must incorporate program elements offered
9.16by leadership programs at the University of Minnesota and program elements used by
9.17the participating members of the business community to enhance leadership within their
9.18businesses.
9.19(e) The board of each school district in the state may select a principal, upon the
9.20recommendation of the district's superintendent and based on the principal's leadership
9.21potential, to attend the institute.
9.22(f) The school board annually shall forward its list of recommended participants to
9.23the commissioner by February 1. In addition, a principal may submit an application
9.24directly to the commissioner by February 1. The commissioner shall notify the school
9.25board, the principal candidates, and the University of Minnesota of the principals selected
9.26to participate in the Principals' Leadership Institute each year.
9.27    Subd. 2. Method of selection and requirements. (a) The board of each school
9.28district in the state may select a principal, upon the recommendation of the district's
9.29superintendent and based on the principal's leadership potential, to attend the institute.
9.30(b) The school board annually shall forward its list of recommended participants
9.31to the commissioner by February 1. In addition, a principal may submit an application
9.32directly to the commissioner by February 1. The commissioner shall notify the school
9.33board, the principal candidates, and the University of Minnesota of the principals selected
9.34to participate in the Principals' Leadership Institute each year.

9.35    Sec. 7. Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:
10.1    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means
10.2the amount of a family's contribution to a student's cost of attendance, as determined by a
10.3federal need analysis. For dependent students, the assigned family responsibility is 96 94
10.4percent of the parental contribution. For independent students with dependents other than
10.5a spouse, the assigned family responsibility is 86 85 percent of the student contribution.
10.6For independent students without dependents other than a spouse, the assigned family
10.7responsibility is 50 49 percent of the student contribution.

10.8    Sec. 8. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:
10.9    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress"
10.10means satisfactory academic progress as defined under Code of Federal Regulations, title
10.1134, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual
10.12disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled
10.13in an approved comprehensive transition and postsecondary program under that section
10.14is subject to the institution's published satisfactory academic process standards for that
10.15program as approved by the Office of Higher Education.

10.16    Sec. 9. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding
10.17a subdivision to read:
10.18    Subd. 8a. Support grants. The commissioner, from appropriations specifically
10.19made for the purposes of this subdivision, may provide grants to school districts and
10.20community colleges for the purpose of providing exposure and connection to teachers and
10.21staff, students, and employers regarding industry occupational pathways and employment
10.22with employers in the region.

10.23    Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
10.24adding a subdivision to read:
10.25    Subd. 10. Dual training account. A dual training account is created in the special
10.26revenue fund in the state treasury. The commissioner shall deposit into the account
10.27appropriations made for the purposes of this section. Money in the account is appropriated
10.28to the commissioner for the purposes for which it was appropriated.

10.29    Sec. 11. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
10.30adding a subdivision to read:
11.1    Subd. 11. Administration expenses. The commissioner may expend up to five
11.2percent of the appropriation made for the purposes of this section for administration
11.3of this section.

11.4    Sec. 12. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
11.5136A.87 PLANNING INFORMATION FOR POSTSECONDARY
11.6EDUCATION.
11.7(a) The office shall make available to all residents beginning in 7th grade through
11.8adulthood information about planning and preparing for postsecondary opportunities.
11.9Information must be provided to all 7th grade students and their parents annually
11.10by September 30 about planning for their postsecondary education. The office may
11.11also provide information to high school students and their parents, to adults, and to
11.12out-of-school youth.
11.13(b) The office must make reasonable efforts to obtain publicly available information
11.14about the dual credit acceptance policies of each Minnesota, Wisconsin, South Dakota,
11.15and North Dakota public and private college and university. This information must be
11.16shared on the office's Web site and included in the information under paragraph (a).
11.17(c) The information provided under paragraph (a) may include the following:
11.18(1) the need to start planning early;
11.19(2) the availability of assistance in educational planning from educational institutions
11.20and other organizations;
11.21(3) suggestions for studying effectively during high school;
11.22(4) high school courses necessary to be adequately prepared for postsecondary
11.23education;
11.24(5) encouragement to involve parents actively in planning for all phases of education;
11.25(6) information about postsecondary education and training opportunities existing
11.26in the state, their respective missions and expectations for students, their preparation
11.27requirements, admission requirements, and student placement;
11.28(7) ways to evaluate and select postsecondary institutions;
11.29(8) the process of transferring credits among Minnesota postsecondary institutions
11.30and systems;
11.31(9) the costs of postsecondary education and the availability of financial assistance
11.32in meeting these costs, including specific information about the Minnesota Promise;
11.33(10) the interrelationship of assistance from student financial aid, public assistance,
11.34and job training programs; and
11.35(11) financial planning for postsecondary education.
12.1EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
12.2later.

12.3    Sec. 13. [136A.89] PRINCIPAL LEADERSHIP INSTITUTE.
12.4(a) The commissioner may contract with the Minnesota State University Mankato to
12.5establish a Principals' Leadership Institute to provide licensed principals in Minnesota
12.6with a research-based and evaluated professional development experience focused on
12.7instructional and organizational leadership by:
12.8(1) creating a network of educational leaders who demonstrate strong instructional
12.9leadership, racial equity leadership, and the skills to lead for all students;
12.10(2) advancing student achievement in school districts through the continuous
12.11development of courageous and results-driven principal leaders;
12.12(3) developing leaders who cultivate a school culture where every student is fully
12.13engaged, educated, and included; and
12.14(4) developing principal leaders who create a culture of high standards for all
12.15students and demonstrate the ability to build teacher development so that culturally
12.16responsive practices occur in all classrooms.
12.17(b) Minnesota State University Mankato must partner with participating district or
12.18charter school leadership to bridge professional development learning from the Principals'
12.19Leadership Institute to the district at large.
12.20(c) Participants must agree to attend all sessions of the Principals' Leadership Institute.
12.21(d) The Principals' Leadership Institute must base the program content and
12.22curriculum on current research-based best practices in educational leadership that lead to
12.23accelerated achievement growth for all students.
12.24(e) School district or charter school leadership in the state may recommend a licensed
12.25principal for participation in the program based on the principal's leadership potential.
12.26(f) The school board or charter school board must submit the list of recommended
12.27participants to the Principals' Leadership Institute by July 1 each year. Principals from a
12.28school district or charter school whose leadership is engaged in intentional work focused
12.29on eliminating the predictable racial achievement disparities within their district or school
12.30must receive priority selection for attending the Principals' Leadership Institute.

12.31    Sec. 14. [136F.33] SUPPLEMENTAL AND DEVELOPMENTAL EDUCATION.
12.32    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
12.33have the meanings given.
13.1(b) "Academic weakness" means an academic skill determined to be below college
13.2ready according to a formalized assessment.
13.3(c) "Corequisite" means a course or other requirement that is taken simultaneously
13.4with a credit-bearing course for the purpose of providing targeted support.
13.5(d) "Credit-bearing course" means a college entry-level course that meets the
13.6requirements for a diploma, certificate, or degree.
13.7(e) "Developmental education" means the building of foundational skills in noncredit
13.8courses or programs to promote academic success in college-level coursework.
13.9(f) "Gateway course" means an initial credit-bearing course in a subject.
13.10(g) "Supplemental instruction" means a targeted support model for students with
13.11academic weaknesses to promote academic success in credit-bearing courses.
13.12(h) "Targeted support" means academic support, including but not limited to
13.13tutoring and directed group study time, related to increasing a student's understanding of
13.14a credit-bearing course.
13.15    Subd. 2. Program requirements. (a) The board shall develop and implement varied
13.16research-grounded tiered approaches to supplemental instruction and developmental
13.17education based on student academic readiness. The tiered approach must minimize the
13.18placement of students in developmental education under subdivision 5 by providing a
13.19supplemental instruction course structure that results in earning the equivalent of credit in
13.20a credit-bearing course while providing targeted support to a student who:
13.21(1) did not meet the minimum course placement criteria for a credit-bearing course;
13.22and
13.23(2) using multiple measures of assessment, is identified as likely to succeed in a
13.24credit-bearing course if targeted support is provided.
13.25(b) The board shall establish campus-specific tiered approaches including strategies
13.26under subdivision 3 that are:
13.27(1) focused on the skills and competencies essential for success in the math and
13.28English college-level courses; and
13.29(2) based on the nature of individual campus academic programming and the needs
13.30of specific campus student populations.
13.31(c) To facilitate the transfer of credits, the transcript record for a supplemental
13.32instruction course must include a credit-bearing course or a designation of equivalency to
13.33a specific credit-bearing course.
13.34(d) The board shall make available to students on its Web site, in course catalogs, and
13.35by other methods at the discretion of the board, the supplemental instruction, developmental
13.36education, and corequisite courses offered at a particular college or university.
14.1    Subd. 3. Support strategies. (a) The board shall continuously monitor and adopt
14.2strategies that have the potential or that have proven to increase the placement and success
14.3of students in credit-bearing courses. If the board finds that strategies are successful at
14.4one campus or program, the board must assess whether the strategies would be beneficial
14.5campuswide or systemwide and, if it determines that it would, must implement the strategy
14.6for all campus or system programs in which the strategy is predicted to be successful. The
14.7board may discontinue the strategy for those programs where it does not prove beneficial.
14.8(b) Consistent with subdivision 2, strategies may include, but are not limited to:
14.9(1) replacing developmental or remedial courses, when appropriate, with corequisite
14.10courses in which students with academic weaknesses are placed into introductory
14.11credit-bearing courses while receiving supplemental academic instruction on the same
14.12subject and during the same term;
14.13(2) expanding proactive advising, including the use of early alert systems or
14.14requiring the approval of an adviser or counselor to register for certain classes;
14.15(3) developing meta-majors in broad academic disciplines as an alternative to
14.16undecided majors;
14.17(4) making available alternative mathematics curriculum, including curriculum most
14.18relevant to the student's chosen area of study;
14.19(5) implementing "opt-out scheduling" by automatically enrolling students in a
14.20schedule of courses chosen by the student's department but allowing students to disenroll
14.21from those courses if they meet with an academic adviser and cosign a change of
14.22enrollment form; and
14.23(6) facilitating the transfer of credits between state colleges and universities.
14.24    Subd. 4. Assessments and advising. (a) Common student placement assessments
14.25must provide information identifying academic weaknesses that must be provided to the
14.26student. A student assessed below college ready must be provided:
14.27(1) materials designed to address identified academic weaknesses;
14.28(2) support to prepare for and retake placement assessments;
14.29(3) postassessment advising to assist in making informed decisions on identifying
14.30academic weaknesses and targeting supplemental instruction options; and
14.31(4) additional targeted support while enrolled in college-level math and English
14.32courses.
14.33(b) Intrusive advising must be provided to a student who participates in supplemental
14.34instruction programs but has been unsuccessful in achieving academic success. Advising
14.35must include career and employment options, alternative career pathways, and related
14.36educational opportunities.
15.1    Subd. 5. Developmental education. (a) The board shall create a framework to
15.2redesign developmental education to provide a student who does not meet the criteria for
15.3inclusion in a supplemental instruction course the opportunity to complete gateway math
15.4and English courses within one academic year. The board must provide developmental
15.5education to a student or advise the student to enroll in adult basic education.
15.6(b) The board shall not require a student who has successfully taken a developmental
15.7course under section 124D.09, subdivision 10, to participate in a developmental education
15.8course in the same subject area.
15.9    Subd. 6. Report. Annually by January 15, the board shall report to the chairs and
15.10ranking minority members of the legislative committees with primary jurisdiction over
15.11higher education finance on the goal of increasing the placement and success of students
15.12in credit-bearing courses. The report must, at a minimum, include:
15.13(1) the following information on board activities:
15.14(i) strategies the board has adopted at each campus under subdivision 2, paragraph (b);
15.15(ii) strategies that have been discontinued at each campus; and
15.16(iii) strategies being considered for systemwide implementation; and
15.17(2) the following information on students:
15.18(i) the number and percent of students placed in developmental education;
15.19(ii) the number and percent of students who complete developmental education
15.20within one academic year;
15.21(iii) the number and percent of students that complete gateway courses in math
15.22and English in one academic year;
15.23(iv) the student retention rate;
15.24(v) time to complete a degree or certificate; and
15.25(vi) credits earned by those completing a degree, certificate, or other program.
15.26The report must disaggregate student data by race, ethnicity, Pell Grant eligibility,
15.27and age and provide aggregate data.

15.28    Sec. 15. EQUITY IN EDUCATION AND JOB CONNECTION GRANT
15.29PROGRAM.
15.30    Subdivision 1. Grants. (a) The commissioner of the Office of Higher Education
15.31shall award grants to improve postsecondary attendance, completion, and retention and
15.32the obtaining of well-paying jobs for which the postsecondary education provides training
15.33by providing services to historically underrepresented college students. Grants must be
15.34awarded to Minnesota state colleges and universities and private organization programs
15.35that help the state reach the attainment goals under Minnesota Statutes, section 135A.012.
16.1Programs must provide services targeted to make the improvements including, but not
16.2limited to:
16.3    (1) academic and nonacademic counseling or advising;
16.4    (2) mentoring in education and career opportunities;
16.5    (3) structured tutoring;
16.6    (4) career awareness and exploration including internships and post graduation
16.7job placements;
16.8    (5) orientation to college life;
16.9(6) financial aid counseling;
16.10    (7) academic instruction programs in core curricular areas of mathematics and
16.11language arts;
16.12    (8) supplemental instruction programs for college courses with high failure and
16.13withdrawal rates; and
16.14    (9) co-requisite college course models for delivery of academic support.
16.15(b) The office shall structure the grants for sustainability of programs funded by a
16.16grant.
16.17(c) To the extent there are sufficient qualified applicants, approximately 50 percent
16.18of grant dollars must be awarded to private organization programs.
16.19    Subd. 2. Application process. (a) The commissioner shall develop a grant
16.20application process. The commissioner shall attempt to support projects in a manner that
16.21ensures that eligible students throughout the state have access to program services.
16.22    (b) The grant application must include, at a minimum, the following information:
16.23    (1) a description of the characteristics of the students to be served reflective of the
16.24need for services listed in subdivision 1;
16.25    (2) a description of the services to be provided and a timeline for implementation
16.26of the service activities;
16.27    (3) a description of how the services provided will foster postsecondary retention
16.28and completion;
16.29    (4) a description of how the services will be evaluated to determine whether the
16.30program goals were met;
16.31(5) the history of the applicant in achieving successful improvements using the
16.32services for which a grant is sought;
16.33(6) the assumed cost per student of achieving successful outcomes;
16.34(7) the effect of the grant on assisting students to obtain well-paying jobs;
16.35(8) the proposed grant match;
16.36(9) the organizational commitment to program sustainability; and
17.1    (10) other information as identified by the commissioner.
17.2Grant recipients must specify both program and student outcome goals, and performance
17.3measures for each goal.
17.4    Subd. 3. Advisory committee. The commissioner may establish and convene an
17.5advisory committee to assist the commissioner in reviewing applications and advise the
17.6commissioner on grantees and grant amounts. The members of the committee may include
17.7representatives of postsecondary institutions, organizations providing postsecondary
17.8academic and career services, and others deemed appropriate by the commissioner.
17.9    Subd. 4. Outcome report. Each grant recipient must annually submit a report to
17.10the Office of Higher Education identifying its program and student goals and activities
17.11implemented. A report must include, but not be limited to, information on:
17.12(1) number of students served;
17.13(2) course taking and grade point average of participating students;
17.14    (3) persistence and retention rates of participating students;
17.15(4) postsecondary graduation rates of participating students;
17.16    (5) the number of students who required postsecondary academic remediation and
17.17number of remedial courses for each of those students and in the aggregate; and
17.18(6) jobs and wage rates of students after postsecondary graduation.
17.19To the extent possible, the report must breakdown outcomes by Pell grant qualification,
17.20race, and ethnicity.
17.21    Subd. 5. Legislative report. By January 15 of each year through 2021, the office
17.22shall submit a report to the chairs and ranking minority members of the committees in the
17.23house of representatives and the senate with jurisdiction over higher education finance
17.24regarding the grant recipients and their activities. The report shall include information
17.25about the students served, the organizations providing services, program activities,
17.26program goals and outcomes, and program revenue sources and funding levels.

17.27    Sec. 16. STATE GRANT TUITION CAPS.
17.28For the purposes of the state grant program under Minnesota Statutes, section
17.29136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736
17.30for students in two-year programs and the tuition maximum is $14,186 for students in
17.31four-year programs.

17.32    Sec. 17. STATE UNIVERSITIES; PILOT PROGRAM FOR STUDENTS WITH
17.33INTELLECTUAL AND DEVELOPMENTAL DISABILITIES.
18.1    Subdivision 1. Pilot program created. (a) The Board of Trustees of the Minnesota
18.2State Colleges and Universities must offer a pilot academic program as described in
18.3this section for students with intellectual and developmental disabilities. The pilot is for
18.4students entering the program in the 2017-2018 academic year. The program must be
18.5offered at a total of four state university or college campuses that have the ability to offer
18.6a robust program using existing facilities, including residential facilities. The campuses
18.7selected must, to the extent possible, be located in different geographic regions of the state.
18.8(b) In designing the pilot program, the Board of Trustees must consult with PACER
18.9Center, Inc., the Minnesota Governor's Council on Developmental Disabilities, Arc
18.10Minnesota, and other interested stakeholder groups. The board must also consult with
18.11administrators of similar programs at other postsecondary institutions.
18.12    Subd. 2. Program enrollment and admission. The enrollment goal for each
18.13campus's pilot program must be at least ten incoming students per academic year. Students
18.14must be admitted based on an application process that includes an in-person interview;
18.15an independent assessment of an applicant's interest, motivation, and likelihood of
18.16success in the program; and any other eligibility requirements established by the board.
18.17Upon successful completion, a student must be awarded a certificate, diploma, or other
18.18appropriate academic credential.
18.19    Subd. 3. Program curriculum and activities. (a) The pilot program must provide
18.20an inclusive, two-year full-time residential college experience for students with intellectual
18.21and developmental disabilities. The required curriculum must include core courses
18.22that develop life skills, financial literacy, and the ability to live independently; rigorous
18.23academic work in a student's chosen field of study; and an internship, apprenticeship, or
18.24other skills-based experience to prepare for meaningful employment upon completion
18.25of the program.
18.26(b) In addition to academic requirements, the program must offer participating
18.27students the opportunity to engage fully in campus life. Program activities must include
18.28but are not limited to (1) the establishment of on-campus mentoring and peer support
18.29communities and (2) opportunities for personal growth through leadership development
18.30and other community engagement activities.
18.31(c) A participating campus may tailor its program curriculum and activities to
18.32highlight academic programs, student and community life experiences, and employment
18.33opportunities unique to that campus or the region of the state where the campus is located.
18.34    Subd. 4. Progress reports to legislature. The board must submit progress reports
18.35on the pilot program required by this section to the chairs and ranking minority members
19.1of the committees in the house of representatives and the senate with jurisdiction over
19.2higher education finance and policy and human services finance and policy as follows:
19.3(1) no later than January 15, 2017, a report describing plans for implementation of
19.4the program and recruitment of applicants, including identification of anticipated program
19.5needs that cannot be filled using existing campus or system resources; and
19.6(2) no later than January 15, 2019, a report describing program operations, including
19.7information on participation and expected completion rates, the feasibility of program
19.8expansion to other state university campuses, and detail on any unmet program needs.

19.9    Sec. 18. STUDENT AND EMPLOYER CONNECTION INFORMATION
19.10SYSTEM.
19.11The commissioner of the Office of Higher Education shall issue a request for
19.12proposal no later than July 1, 2016, for a Web-based job and intern-seeking software tool
19.13that matches the needs of employers located in Minnesota with the individual profiles of
19.14high school seniors and postsecondary students attending Minnesota high schools and
19.15postsecondary institutions. The commissioner shall no later than October 1, 2016, select a
19.16provider. The selected provider must have experience that demonstrates both prior similar
19.17software development ability and implementation outcomes of successful blind matching
19.18of job candidates and employers in furtherance of Minnesota's workforce diversity and
19.19inclusion objectives. The commissioner shall contract for the development of the system.
19.20EFFECTIVE DATE.This section is effective the day following final enactment.

19.21    Sec. 19. COMMISSIONER OF THE OFFICE OF HIGHER EDUCATION;
19.22TEACHER DIVERSITY RECOMMENDATIONS AND REPORT.
19.23(a) The commissioner of the Office of Higher Education, in consultation with
19.24the Board of Teaching, the Office of Educator Licensing at the Minnesota Department
19.25of Education, and other interested stakeholders, including councils and other local
19.26organizations serving communities of color or American Indian communities, diverse
19.27K-12 educator candidates and licensed educators, human resources personnel, parent
19.28representatives, urban, suburban, and rural school district and school board associations
19.29and organizations, teacher representatives, other organizations focused on teacher diversity
19.30in education, public and nonpublic higher education systems and institutions, and local
19.31ethnic-focused media, shall prepare and submit a report to the legislature recommending
19.32how best to realize the goal of providing all students, including low-income students,
19.33American Indian students, and students of color with improved and equitable access to
19.34effective, more diverse teachers, consistent with state policy. The commissioner must
20.1consider the substance of state policy and paragraphs (b) and (c) in developing the
20.2recommendations in the report.
20.3(b) The commissioner's recommendations must address at least the following:
20.4(1) ensuring transparency and accountability by requiring traditional and alternative
20.5teacher preparation programs to publicly report enrollment and completion data for
20.6diverse teacher licensure candidates and by requiring districts to publicly report data on
20.7the demographic disparities between enrolled students and licensed teachers employed in
20.8the district and its school;
20.9(2) expanding pathways to licensure by encouraging districts to develop programs
20.10with two- and four-year institutions and with community-based organizations to recruit
20.11and support diverse populations of enrolled students, nonlicensed district employees, and
20.12local community members in becoming licensed teachers in the district, facilitating the
20.13ability of diverse, nontraditional teacher candidates to change careers and pursue licensure
20.14through community college pathways, bachelor's degree programs or postbaccalaureate
20.15teacher preparation programs, and creating statewide campaigns to encourage diverse
20.16candidates to become licensed teachers;
20.17(3) providing diverse teacher licensure candidates with the preparation and skills
20.18needed to become effective teachers, removing inequitable barriers to licensure presented
20.19by licensure exams, and for purposes of attaining a full professional license, allowing
20.20candidates to demonstrate their skills proficiency through alternatives to teacher skills and
20.21college entrance exams;
20.22(4) providing financial assistance and incentives such as scholarships, student
20.23teaching stipends, and loan forgiveness programs to encourage diverse individuals to attain
20.24a teaching, counseling, or social work license or advanced degree, otherwise improve their
20.25professional practice, or become school administrators, and using a hiring bonus to recruit
20.26more diverse teachers into a district or school; and
20.27(5) supporting induction and retention programs by funding teacher residency and
20.28mentoring programs that support the retention and professional development of diverse
20.29teachers and focusing teachers' professional development opportunities on cultural fluency
20.30and competency.
20.31(c) The commissioner must include in the report, as appropriate, any
20.32recommendations for amendments to the following statutes and any related statutes:
20.33(1) the world's best work force under Minnesota Statutes, section 120B.11;
20.34(2) regional centers of excellence under Minnesota Statutes, section 120B.115;
20.35(3) Board of Teaching duties under Minnesota Statutes, section 122A.09,
20.36subdivisions 4 and 4a;
21.1(4) teacher continuing or employment contracts and peer review and mentorship
21.2under Minnesota Statutes, sections 122A.40 and 122A.41;
21.3(5) the alternative teacher professional pay system agreement under Minnesota
21.4Statutes, section 122A.414, subdivision 2;
21.5(6) staff development programs under Minnesota Statutes, section 122A.60;
21.6(7) American Indian grants, scholarships, and loan programs under Minnesota
21.7Statutes, section 122A.63;
21.8(8) teacher residency programs under Minnesota Statutes, section 122A.68;
21.9(9) the ability of the Board of Teaching to arrange for student teachers under
21.10Minnesota Statutes, section 122A.69;
21.11(10) the ability of school districts to develop mentoring programs for teachers of
21.12color under Minnesota Statutes, section 122A.70;
21.13(11) the legislature's support of research on the effectiveness of teacher preparation
21.14programs under Minnesota Statutes, section 122A.71;
21.15(12) teacher centers to help teachers learn, experiment, assess, and improve to meet
21.16students' needs under Minnesota Statutes, section 122A.72; and
21.17(13) the teacher shortage loan forgiveness program under Minnesota Statutes,
21.18section 136A.1791.
21.19(d) The commissioner must submit the report to the chairs and ranking minority
21.20members of the committees in the house of representatives and the senate with jurisdiction
21.21over education by February 1, 2017.

21.22    Sec. 20. UNIVERSITY OF MINNESOTA BUDGET ALLOCATION REPORT.
21.23The Board of Regents of the University of Minnesota shall report by February 1,
21.242017, to the chairs and ranking minority members of the legislative committees with
21.25primary jurisdiction over higher education finance on the factors it considers when
21.26allocating funds to system campuses. The report must specifically, without limitation,
21.27address the following questions:
21.28(1) what circumstances would lead the university to adopt an alternate budget model
21.29to the Resource Responsibility Center (RRC) model for a system campus;
21.30(2) what were the rationale and factors considered for the initial base budget
21.31allocation to system campuses when the RRC was first established; and
21.32(3) what factors would lead the university to consider adjusting the initial base
21.33allocation model.

22.1ARTICLE 2
22.2ECONOMIC DEVELOPMENT

22.3
Section 1. APPROPRIATIONS.
22.4    The sums shown in the columns under "Appropriations" are added to or, if shown
22.5in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
22.6chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
22.7general fund, or another named fund, and are available for the fiscal years indicated for
22.8each purpose. The figure "2017" used in this article means that the appropriations listed
22.9under it are available for the fiscal year ending June 30, 2017.
22.10
APPROPRIATIONS
22.11
Available for the Year
22.12
Ending June 30
22.13
2016
2017

22.14
22.15
Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
22.16
Subdivision 1.Total Appropriation
$
-0-
$
34,445,000
22.17
Appropriations by Fund
22.18
General
-0-
33,445,000
22.19
22.20
Workforce
Development
-0-
1,000,000
22.21The amounts that may be spent for each
22.22purpose are specified in the following
22.23subdivisions.
22.24
22.25
Subd. 2.Business and Community
Development
-0-
30,595,000
22.26$2,000,000 in fiscal year 2017 is for the
22.27redevelopment program under Minnesota
22.28Statutes, section 116J.571. This is a onetime
22.29appropriation.
22.30$1,220,000 in fiscal year 2017 is for a
22.31grant to the Duluth North Shore Sanitary
22.32District to retire debt of the district in order
22.33to bring the district's monthly wastewater
22.34rates in line with those of similarly situated
23.1facilities across the state. This is a onetime
23.2appropriation.
23.3$275,000 in fiscal year 2017 is for a grant to
23.4the Community and Economic Development
23.5Associates (CEDA) for an economic
23.6development study and analysis of the effects
23.7of current and projected economic growth
23.8in southeast Minnesota. This is a onetime
23.9appropriation and is available until June 30,
23.102019.
23.11$300,000 in fiscal year 2017 is for expansion
23.12of business assistance services provided by
23.13business development specialists located in
23.14the Northwest Region, Northeast Region,
23.15West Central Region, Southwest Region,
23.16Southeast Region, and Twin Cites Metro
23.17Region offices established throughout the
23.18state. Funds under this section may be used
23.19to provide services including, but not limited
23.20to, business start-ups; expansion; location or
23.21relocation; finance; regulatory and permitting
23.22assistance; and other services determined
23.23by the commissioner. The commissioner
23.24may also use funds under this section to
23.25increase the number of business development
23.26specialists in each region of the state,
23.27increase and expand the services provided
23.28through each regional office, and publicize
23.29the services available and provide outreach
23.30to communities in each region regarding
23.31services and assistance available through the
23.32business development specialist program.
23.33This is a onetime appropriation.
23.34$50,000 in fiscal year 2017 is to enhance
23.35the outreach and public awareness activities
24.1of the Bureau of Small Business under
24.2Minnesota Statutes, section 116J.68. This is
24.3a onetime appropriation.
24.4$750,000 in fiscal year 2017 is for a grant to
24.5Enterprise Minnesota, Inc. Of this amount,
24.6$375,000 is for the small business growth
24.7acceleration program under Minnesota
24.8Statutes, section 116O.115, and $375,000
24.9is for operations under Minnesota Statutes,
24.10sections 116O.01 to 116O.061. This is a
24.11onetime appropriation.
24.12$2,000,000 in fiscal year 2017 is for
24.13the Minnesota Initiative program under
24.14Minnesota Statutes, section 116M.18.
24.15Of this amount, up to five percent is for
24.16administration, outreach, and monitoring of
24.17the program. This is a onetime appropriation.
24.18$500,000 in fiscal year 2017 is for making
24.19capacity building grants under Minnesota
24.20Statutes, section 116M.18, subdivision 9.
24.21This is a onetime appropriation.
24.22$3,500,000 in fiscal year 2017 is for grants to
24.23initiative foundations to provide financing
24.24for business startups, expansions, and
24.25maintenance; and for business ownership
24.26transition and succession. This is a onetime
24.27appropriation. Of the amount appropriated:
24.28(1) $500,000 is for a grant to the Southwest
24.29Initiative Foundation;
24.30(2) $500,000 is for a grant to the West Central
24.31Initiative Foundation;
24.32(3) $500,000 is for a grant to the Southern
24.33Minnesota Initiative Foundation;
25.1(4) $500,000 is for a grant to the Northwest
25.2Minnesota Foundation;
25.3(5) $500,000 is for a grant to the Initiative
25.4Foundation;
25.5(6) $500,000 is for a grant to the Northland
25.6Foundation; and
25.7(7) $500,000 is for a grant to the Minnesota
25.8Initiative Board under Minnesota Statutes,
25.9chapter 116M. Funds available under this
25.10clause must be allocated as follows:
25.11(i) 50 percent of the funds must be allocated
25.12for projects in the counties of Dakota,
25.13Ramsey, and Washington; and
25.14(ii) 50 percent of the funds must be allocated
25.15for projects in the counties of Anoka, Carver,
25.16Hennepin, and Scott.
25.17$600,000 in fiscal year 2017 is for a grant to
25.18a city of the second class that is designated
25.19as an economically depressed area by the
25.20United States Department of Commerce for
25.21economic development, redevelopment, and
25.22job creation programs and projects. This is a
25.23onetime appropriation and is available until
25.24June 30, 2019.
25.25$5,500,000 in fiscal year 2017 is for a grant to
25.26the Minnesota Film and TV Board for the film
25.27production jobs program under Minnesota
25.28Statutes, section 116U.26. This appropriation
25.29is in addition to the appropriation in Laws
25.302015, First Special Session chapter 1,
25.31article 1, section 2, subdivision 2. This is
25.32a onetime appropriation. Of this amount,
25.33$250,000 is for grants to Hmong-American
25.34filmmakers that have directed or produced
26.1prior feature-length stories to produce
26.2projects within Minnesota.
26.3$150,000 in fiscal year 2017 is for a grant
26.4to the city of Edina to conduct a feasibility
26.5study of constructing Grandview Green over
26.6Highway 100 in Edina. This is a onetime
26.7appropriation.
26.8$10,000,000 in fiscal year 2017 is for deposit
26.9in the Minnesota 21st century fund. This is a
26.10onetime appropriation.
26.11$400,000 in fiscal year 2017 is for grants to
26.12small business development centers under
26.13Minnesota Statutes, section 116J.68. Funds
26.14made available under this section may be
26.15used to match funds under the federal Small
26.16Business Development Center (SBDC)
26.17program under United States Code, title 15,
26.18section 648, provide consulting and technical
26.19services, or to build additional SBDC
26.20network capacity to serve entrepreneurs
26.21and small businesses. The commissioner
26.22shall allocate funds equally among the nine
26.23regional centers and lead center. This is a
26.24onetime appropriation.
26.25$3,100,000 in fiscal year 2017 is for a transfer
26.26to the Board of Regents of the University
26.27of Minnesota for academic and applied
26.28research through MnDRIVE at the Natural
26.29Resources Research Institute to develop new
26.30technologies that enhance the long-term
26.31viability of the Minnesota mining industry.
26.32The research must be done in consultation
26.33with the Mineral Coordinating Committee
26.34established by Minnesota Statutes, section
26.3593.0015. This is a onetime transfer.
27.1$250,000 in fiscal year 2017 is for a grant to
27.2the city of Kelliher for water infrastructure
27.3upgrades. This is a onetime appropriation
27.4and is available until June 30, 2019.
27.5
Subd. 3.Workforce Development
-0-
2,300,000
27.6
Appropriations by Fund
27.7
2016
2017
27.8
General
-0-
1,300,000
27.9
27.10
Workforce
Development
-0-
1,000,000
27.11$100,000 in fiscal year 2017 is for a
27.12grant to Ramsey County for a study of
27.13the workforce-based mass transit needs
27.14of the north metro area. Ramsey County
27.15may work in collaboration with officials in
27.16other counties including, but not limited
27.17to, Anoka and Washington Counties in
27.18producing the study. By December 1, 2017,
27.19Ramsey County must submit the report to
27.20the commissioner. By January 1, 2018, the
27.21commissioner must report to the chairs of the
27.22standing committees of the legislature having
27.23jurisdiction over workforce development
27.24and transportation. This is a onetime
27.25appropriation and is available until June 30,
27.262018.
27.27$500,000 in fiscal year 2017 is from the
27.28workforce development fund for rural career
27.29counseling coordinators in the workforce
27.30service areas and for the purposes specified
27.31in Minnesota Statutes, section 116L.667.
27.32This appropriation is for increases to existing
27.33applicants who were awarded grants in fiscal
27.34years 2016 and 2017.
27.35$500,000 in fiscal year 2017 is for a grant to
27.36Occupational Development Corporation, Inc.
28.1in the city of Buhl to provide training and
28.2employment opportunities for people with
28.3disabilities and disadvantaged workers. This
28.4is a onetime appropriation.
28.5$400,000 in fiscal year 2017 is for a grant
28.6to Northern Bedrock Historic Preservation
28.7Corps for the pathway to the preservation
28.8trades program for recruitment of corps
28.9members, engagement of technical
28.10specialists, development of a certificate
28.11program, and skill development in historic
28.12preservation for youth ages 18 to 25. This is
28.13a onetime appropriation.
28.14$300,000 in fiscal year 2017 is for the
28.15"Getting to Work" grant program. This is a
28.16onetime appropriation and is available until
28.17June 30, 2019.
28.18$500,000 in fiscal year 2017 is from the
28.19workforce development fund for a grant to
28.20the North East Higher Education District to
28.21purchase equipment for training programs
28.22due to increased demand for job training
28.23under the state dislocated worker program.
28.24This is a onetime appropriation and is
28.25available until June 30, 2018.
28.26
Subd. 4.Vocational rehabilitation
-0-
1,550,000
28.27$800,000 in fiscal year 2017 is for grants
28.28to centers for independent living under
28.29Minnesota Statutes, section 268A.11. This
28.30is a onetime appropriation and is in addition
28.31to the appropriation in Laws 2015, First
28.32Special Session chapter 1, article 1, section
28.332, subdivision 6.
28.34$750,000 in fiscal year 2017 is for grants
28.35to day training and habilitation providers
29.1to provide innovative employment options
29.2and to advance community integration for
29.3persons with disabilities as required under
29.4the Minnesota Olmstead Plan. Of this
29.5amount, $250,000 is for a pilot program
29.6for home-based, technology-enhanced
29.7monitoring of persons with disabilities. This
29.8is a onetime appropriation and is available
29.9until June 30, 2018.

29.10
29.11
Sec. 3. DEPARTMENT OF LABOR AND
INDUSTRY
$
-0-
$
350,000
29.12$250,000 in fiscal year 2017 is from
29.13the workforce development fund for the
29.14apprenticeship program under Minnesota
29.15Statutes, chapter 178. This amount is added
29.16to the base appropriation for this purpose.
29.17$100,000 in fiscal year 2017 is to provide
29.18outreach and education concerning
29.19requirements under state or federal law
29.20governing removal of architectural barriers
29.21that limit access to public accommodations
29.22by persons with disabilities and resources
29.23that are available to comply with
29.24those requirements. This is a onetime
29.25appropriation.

29.26
Sec. 4. EXPLORE MINNESOTA TOURISM
$
-0-
$
1,250,000
29.27$300,000 in fiscal year 2017 is for a grant to
29.28the Mille Lacs Tourism Council to enhance
29.29marketing activities related to tourism
29.30promotion in the Mille Lacs Lake area. This
29.31is a onetime appropriation.
29.32$950,000 in fiscal year 2017 is to establish a
29.33pilot project to assist in funding and securing
29.34major events benefiting communities
30.1throughout the state. The pilot project must
30.2measure the economic impact of visitors on
30.3state and local economies, increased lodging
30.4and nonlodging sales taxes in addition
30.5to visitor spending, and increased media
30.6awareness of the state as an event destination.
30.7This is a onetime appropriation. Of this
30.8amount, $100,000 is for a grant to the St.
30.9Louis County Historical Society for a project,
30.10in collaboration with the Erie Mining history
30.11book project team, to research, document,
30.12publish, preserve, and exhibit the history of
30.13taconite mining in Minnesota.

30.14
30.15
Sec. 5. PUBLIC EMPLOYMENT
RELATIONS BOARD
$
-0-
$
525,000
30.16$525,000 in fiscal year 2017 is for the
30.17Public Employment Relations Board under
30.18Minnesota Statutes, section 179A.041.
30.19The base appropriation for this purpose is
30.20$525,000 in fiscal year 2018 and $525,000 in
30.21fiscal year 2019.

30.22
Sec. 6. HOUSING FINANCE AGENCY
$
-0-
$
2,500,000
30.23$1,000,000 in fiscal year 2017 is to establish
30.24a grant program within the housing trust fund
30.25for the exploited families rental assistance
30.26program. This is a onetime appropriation and
30.27is available until June 30, 2019.
30.28$500,000 in fiscal year 2017 is for a
30.29competitive grant program to fund a housing
30.30project or projects in a community or
30.31communities: (1) that have low housing
30.32vacancy rates; and (2) that have an education
30.33and training center for jobs in agriculture,
30.34farm business management, health care
31.1fields, or other fields with anticipated
31.2significant job growth potential. A grant or
31.3grants must be no more than 50 percent of
31.4the total development costs for the project.
31.5Funds for a grant or grants made in this
31.6section must be to a housing project or
31.7projects that have financial and in-kind
31.8contributions from nonagency sources
31.9that when combined with a grant under
31.10this section are sufficient to complete the
31.11housing project. Funds must be used to
31.12create new housing units either through
31.13new construction or through acquisition and
31.14rehabilitation of a building or buildings not
31.15currently used for housing. If funds remain
31.16uncommitted at the end of fiscal year 2017,
31.17the agency may transfer the uncommitted
31.18funds to the housing development fund and
31.19use the funds for the economic development
31.20and housing challenge program under
31.21Minnesota Statutes, section 462A.33. This is
31.22a onetime appropriation.
31.23$1,000,000 in fiscal year 2017 is for the
31.24Workforce and Affordable Homeownership
31.25Development Program under Minnesota
31.26Statutes, section 462A.38. This is a onetime
31.27appropriation and is available until June 30,
31.282019.

31.29
Sec. 7. COMMERCE
$
-0-
$
1,006,000
31.30$500,000 in fiscal year 2017 is for increased
31.31civil insurance fraud investigation. This is a
31.32onetime appropriation.
31.33$290,000 in fiscal year 2017 is to fund two
31.34positions to return abandoned property to
31.35owners, newspaper publication, and related
32.1technology upgrades under Minnesota
32.2Statutes, section 345.42. This is a onetime
32.3appropriation.
32.4$66,000 in fiscal year 2017 is for the
32.5commissioner of commerce to seek any
32.6necessary federal approvals to modify the
32.7boundaries of and reduce the number of the
32.8state's designated geographic rating areas for
32.9purposes of setting health plan premiums in
32.10the individual health insurance market. This
32.11is a onetime appropriation.
32.12$150,000 in fiscal year 2017 is for the
32.13commissioner of commerce to:
32.14(1) study and create models of potential
32.15Minnesota-tailored rate-stability mechanisms
32.16for the individual marketplace, such as a
32.17reinsurance program;
32.18(2) study and create models merging the
32.19state's individual and small group markets;
32.20and
32.21(3) study options for making the state's rate
32.22review process more transparent utilizing
32.23public information and hearings.
32.24The commissioner may seek other private
32.25funds or grants to supplement the costs of
32.26the studies. The commissioner shall issue
32.27a report on the preliminary findings of the
32.28studies to the chairs and ranking minority
32.29members of the committees in the house
32.30of representatives and the senate with
32.31jurisdiction over health and marketplace
32.32premiums by January 15, 2017.

32.33    Sec. 8. Minnesota Statutes 2014, section 13.43, subdivision 6, is amended to read:
33.1    Subd. 6. Access by labor organizations, the Bureau of Mediation Services,
33.2and the Public Employment Relations Board. Personnel data may be disseminated to
33.3labor organizations and the Public Employment Relations Board to the extent that the
33.4responsible authority determines that the dissemination is necessary to conduct elections,
33.5notify employees of fair share fee assessments, and implement the provisions of chapters
33.6179 and 179A. Personnel data shall be disseminated to labor organizations, the Public
33.7Employment Relations Board, and to the Bureau of Mediation Services to the extent the
33.8dissemination is ordered or authorized by the commissioner of the Bureau of Mediation
33.9Services, or the Public Employment Relations Board or its designee.
33.10EFFECTIVE DATE.This section is effective July 1, 2016.

33.11    Sec. 9. [13.7909] PUBLIC EMPLOYMENT RELATIONS BOARD DATA.
33.12    Subdivision 1. Definition. For purposes of this section, "board" means the Public
33.13Employment Relations Board.
33.14    Subd. 2. Not public data. (a) Except as provided in this subdivision, all data
33.15maintained by the board about a charge or complaint of unfair labor practices and
33.16appeals of determinations of the commissioner under section 179A.12, subdivision 11,
33.17are classified as protected nonpublic data or confidential data, and become public when
33.18admitted into evidence at a hearing conducted pursuant to section 179A.13. The data may
33.19be subject to a protective order as determined by the board or a hearing officer.
33.20(b) Notwithstanding sections 13.43 and 181.932, the following data are public:
33.21(1) the filing date of unfair labor practice charges;
33.22(2) the status of unfair labor practice charges as an original or amended charge;
33.23(3) the names and job classifications of charging parties and charged parties;
33.24(4) the provisions of law alleged to have been violated in unfair labor practice charges;
33.25(5) the complaint issued by the board and all data in the complaint;
33.26(6) the full and complete record of an evidentiary hearing before a hearing officer,
33.27including the hearing transcript, exhibits admitted into evidence, and posthearing briefs,
33.28unless subject to a protective order;
33.29(7) recommended decisions and orders of hearing officers pursuant to section
33.30179A.13, subdivision 1, paragraph (i);
33.31(8) exceptions to the hearing officer's recommended decision and order filed with the
33.32board pursuant to section 179A.13, subdivision 1, paragraph (k);
33.33(9) briefs filed with the board; and
33.34(10) decisions and orders issued by the board.
34.1(c) Notwithstanding paragraph (a), individuals have access to their own statements
34.2provided to the board under paragraph (a).
34.3(d) The board may make any data classified as protected nonpublic or confidential
34.4pursuant to this subdivision accessible to any person or party if the access will aid the
34.5implementation of chapters 179 and 179A or ensure due process protection of the parties.
34.6EFFECTIVE DATE.This section is effective July 1, 2016.

34.7    Sec. 10. Minnesota Statutes 2014, section 116J.423, is amended to read:
34.8116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.
34.9    Subdivision 1. Created. The Minnesota minerals 21st century fund is created
34.10as a separate account in the treasury. Money in the account is appropriated to the
34.11commissioner of employment and economic development for the purposes of this section.
34.12All money earned by the account, loan repayments of principal and interest, and earnings
34.13on investments must be credited to the account. For the purpose of this section, "fund"
34.14means the Minnesota minerals 21st century fund. The commissioner shall operate the
34.15account as a revolving account.
34.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans
34.17or equity investments in mineral, steel, or taconite any other industry processing facilities,
34.18steel production facilities, facilities for the manufacturing of renewable energy products,
34.19or facilities for the manufacturing of biobased or biomass products, manufacturing, or
34.20technology project that would enhance the economic diversification and that are is located
34.21within the taconite relief tax area as defined under section 273.134. The commissioner
34.22must, prior to making any loans or equity investments and after consultation with industry
34.23and public officials, develop a strategy for making loans and equity investments that
34.24assists the Minnesota mineral industry in becoming globally competitive taconite relief
34.25area in retaining and enhancing its economic competitiveness. Money in the fund may
34.26also be used to pay for the costs of carrying out the commissioner's due diligence duties
34.27under this section.
34.28    Subd. 2a. Grants authorized. Notwithstanding subdivision 2, the commissioner
34.29may use money in the fund to make grants to a municipality or county, or to a county
34.30regional rail authority as appropriate, for public infrastructure needed to support an
34.31eligible project under this section. Grant money may be used by the municipality, county,
34.32or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff
34.33of storm water; to predesign, design, construct, and equip roads and rail lines; and, in
34.34cooperation with municipal utilities, to predesign, design, construct, and equip natural
35.1gas pipelines, electric infrastructure, water supply systems, and wastewater collection and
35.2treatment systems. Grants made under this subdivision are available until expended.
35.3    Subd. 3. Requirements prior to committing funds. The commissioner, prior to
35.4making a commitment for a loan or equity investment must, at a minimum, conduct due
35.5diligence research regarding the proposed loan or equity investment, including contracting
35.6with professionals as needed to assist in the due diligence.
35.7    Subd. 4. Requirements for fund disbursements. The commissioner may make
35.8conditional commitments for loans or equity investments but disbursements of funds
35.9pursuant to a commitment may not be made until commitments for the remainder of a
35.10project's funding are made that are satisfactory to the commissioner and disbursements
35.11made from the other commitments sufficient to protect the interests of the state in its
35.12loan or investment.
35.13    Subd. 5. Company contribution. The commissioner may provide loans or equity
35.14investments that match, in a proportion determined by the commissioner, an investment
35.15made by the owner of a facility.

35.16    Sec. 11. Minnesota Statutes 2014, section 116J.424, is amended to read:
35.17116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
35.18CONTRIBUTION.
35.19The commissioner of the Iron Range Resources and Rehabilitation Board with
35.20approval by the board, shall may provide an equal match for any loan or equity investment
35.21made for a facility project located in the tax relief area defined in section 273.134,
35.22paragraph (b)
, by the Minnesota minerals 21st century fund created by section 116J.423.
35.23The match may be in the form of a loan or equity investment, notwithstanding whether
35.24the fund makes a loan or equity investment. The state shall not acquire an equity interest
35.25because of an equity investment or loan by the board and the board at its sole discretion
35.26shall decide what interest it acquires in a project. The commissioner of employment and
35.27economic development may require a commitment from the board to make the match
35.28prior to disbursing money from the fund.

35.29    Sec. 12. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
35.30    Subdivision 1. Grant program established; purpose. (a) The commissioner shall
35.31make grants to counties or cities to provide up to 50 percent of the capital costs of public
35.32infrastructure necessary for an eligible economic development project. The county or city
35.33receiving a grant must provide for the remainder of the costs of the project, either in cash
36.1or in kind. In-kind contributions may include the value of site preparation other than the
36.2public infrastructure needed for the project.
36.3(b) The purpose of the grants made under this section is to keep or enhance jobs in
36.4the area, increase the tax base, or to expand or create new economic development.
36.5(c) In awarding grants under this section, the commissioner must adhere to the
36.6criteria under subdivision 4.
36.7(d) If the commissioner awards a grant for less than 50 percent of the project, the
36.8commissioner shall provide the applicant and the chairs and ranking minority members
36.9of the senate and house of representatives committees with jurisdiction over economic
36.10development finance a written explanation of the reason less than 50 percent of the capital
36.11costs were awarded in the grant.

36.12    Sec. 13. Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:
36.13    Subd. 2. Eligible projects. An economic development project for which a county or
36.14city may be eligible to receive a grant under this section includes:
36.15(1) manufacturing;
36.16(2) technology;
36.17(3) warehousing and distribution;
36.18(4) research and development;
36.19(5) agricultural processing, defined as transforming, packaging, sorting, or grading
36.20livestock or livestock products into goods that are used for intermediate or final
36.21consumption, including goods for nonfood use; or
36.22(6) industrial park development that would be used by any other business listed in
36.23this subdivision even if no business has committed to locate in the industrial park at the
36.24time the grant application is made.
36.25EFFECTIVE DATE.This section is effective the day following final enactment.

36.26    Sec. 14. Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:
36.27    Subd. 4. Application. (a) The commissioner must develop forms and procedures
36.28for soliciting and reviewing applications for grants under this section. At a minimum, a
36.29county or city must include in its application a resolution of the county or city council
36.30certifying that the required local match is available. The commissioner must evaluate
36.31complete applications for eligible projects using the following criteria:
36.32(1) the project is an eligible project as defined under subdivision 2;
37.1(2) the project will is expected to result in or will attract substantial public and
37.2private capital investment and provide substantial economic benefit to the county or city in
37.3which the project would be located;
37.4(3) the project is not relocating substantially the same operation from another
37.5location in the state, unless the commissioner determines the project cannot be reasonably
37.6accommodated within the county or city in which the business is currently located, or the
37.7business would otherwise relocate to another state; and
37.8(4) the project is expected to or will create or maintain retain full-time jobs.
37.9(b) The determination of whether to make a grant for a site is within the discretion of
37.10the commissioner, subject to this section. The commissioner's decisions and application of
37.11the priorities criteria are not subject to judicial review, except for abuse of discretion.
37.12EFFECTIVE DATE.This section is effective the day following final enactment.

37.13    Sec. 15. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
37.14    Subd. 6. Maximum grant amount. A county or city may receive no more than
37.15$1,000,000 $2,000,000 in two years for one or more projects.
37.16EFFECTIVE DATE.This section is effective the day following final enactment.

37.17    Sec. 16. Minnesota Statutes 2014, section 116J.68, is amended to read:
37.18116J.68 BUREAU OF SMALL BUSINESS.
37.19    Subdivision 1. Generally. The Bureau of Small Business within the business
37.20assistance center shall serve as a clearinghouse, technical assistance center, and referral
37.21service for information and other assistance needed by small businesses including small
37.22targeted group businesses and small businesses located in an economically disadvantaged
37.23area.
37.24    Subd. 2. Duties. The bureau shall:
37.25(1) provide information and assistance with respect to all aspects of business
37.26planning, business finance, and business management related to the start-up, operation, or
37.27expansion of a small business in Minnesota;
37.28(2) refer persons interested in the start-up, operation, or expansion of a small
37.29business in Minnesota to assistance programs sponsored by federal agencies, state
37.30agencies, educational institutions, chambers of commerce, civic organizations, community
37.31development groups, private industry associations, and other organizations;
38.1(3) plan, develop, and implement a master file of information on small business
38.2assistance programs of federal, state, and local governments, and other public and private
38.3organizations so as to provide comprehensive, timely information to the bureau's clients;
38.4(4) employ staff with adequate and appropriate skills and education and training for
38.5the delivery of information and assistance;
38.6(5) seek out and utilize, to the extent practicable, contributed expertise and services
38.7of federal, state, and local governments, educational institutions, and other public and
38.8private organizations;
38.9(6) maintain a close and continued relationship with the director of the procurement
38.10program within the Department of Administration so as to facilitate the department's
38.11duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted
38.12group business and economically disadvantaged business program of the state;
38.13(7) develop an information system which will enable the commissioner and other
38.14state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
38.15business development and growth in the state. All executive branch agencies of state
38.16government and the secretary of state shall to the extent practicable, assist the bureau in
38.17the development and implementation of the information system;
38.18(8) establish and maintain a toll-free telephone number, e-mail account, and other
38.19electronic contact mediums determined by the commissioner so that all small business
38.20persons anywhere in the state can call may contact the bureau office for assistance.
38.21An outreach program shall be established to make the existence of the bureau and the
38.22assistance and services the bureau may provide to small businesses well known to its
38.23potential clientele throughout the state. If the small business person requires a referral to
38.24another provider the bureau may use the business assistance referral system established by
38.25the Minnesota Project Outreach Corporation;
38.26(9) conduct research and provide data as required by the state legislature;
38.27(10) develop and publish material on all aspects of the start-up, operation, or
38.28expansion of a small business in Minnesota;
38.29(11) collect and disseminate information on state procurement opportunities,
38.30including information on the procurement process;
38.31(12) develop a public awareness program through the use of regarding state
38.32assistance programs for small businesses, including those programs specifically for
38.33socially disadvantaged small business persons. The commissioner may utilize print and
38.34electronic newsletters, personal contacts, and advertising devices as defined in section
38.35173.02, subdivision 16, social media, other electronic and print news media advertising
38.36about state assistance programs for small businesses, including those programs specifically
39.1for socially disadvantaged small business persons, and any other means determined by
39.2the commissioner;
39.3(13) enter into agreements with the federal government and other public and private
39.4entities to serve as the statewide coordinator or host agency for the federal small business
39.5development center program under United States Code, title 15, section 648; and
39.6(14) assist providers in the evaluation of their programs and the assessment of
39.7their service area needs. The bureau may establish model evaluation techniques and
39.8performance standards for providers to use.

39.9    Sec. 17. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
39.10    Subd. 2. Board. "Board" means the Urban Minnesota Initiative Board.
39.11EFFECTIVE DATE.This section is effective July 1, 2016.

39.12    Sec. 18. Minnesota Statutes 2014, section 116M.14, is amended by adding a
39.13subdivision to read:
39.14    Subd. 3a. Department. "Department" means the Department of Employment and
39.15Economic Development.
39.16EFFECTIVE DATE.This section is effective July 1, 2016.

39.17    Sec. 19. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
39.18    Subd. 4. Low-income area. "Low-income area" means:
39.19(1) Minneapolis, St. Paul;
39.20(2) those cities in the metropolitan area as defined in section 473.121, subdivision
39.212
, that have an average income that is below 80 percent of the median income for a
39.22four-person family as of the latest report by the United States Census Bureau; and
39.23(3) (2) those cities in the metropolitan area, which contain two or more contiguous
39.24census tracts in which the average family income is less than 80 percent of the median
39.25family income for the Twin Cities metropolitan area as of the latest report by the United
39.26States Census Bureau.
39.27EFFECTIVE DATE.This section is effective July 1, 2016.

39.28    Sec. 20. Minnesota Statutes 2014, section 116M.14, is amended by adding a
39.29subdivision to read:
39.30    Subd. 4a. Low-income person. "Low-income person" means a person who has an
39.31annual income, adjusted for family size, of not more than 80 percent of the area median
40.1family income for the Twin Cities metropolitan area as of the latest report by the United
40.2States Census Bureau.
40.3EFFECTIVE DATE.This section is effective July 1, 2016.

40.4    Sec. 21. Minnesota Statutes 2014, section 116M.14, is amended by adding a
40.5subdivision to read:
40.6    Subd. 4b. Metropolitan area. "Metropolitan area" has the meaning given in section
40.7473.121, subdivision 2.
40.8EFFECTIVE DATE.This section is effective July 1, 2016.

40.9    Sec. 22. Minnesota Statutes 2014, section 116M.14, is amended by adding a
40.10subdivision to read:
40.11    Subd. 6. Minority person. "Minority person" means a person belonging to a racial
40.12or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.
40.13EFFECTIVE DATE.This section is effective July 1, 2016.

40.14    Sec. 23. Minnesota Statutes 2014, section 116M.14, is amended by adding a
40.15subdivision to read:
40.16    Subd. 7. Program. "Program" means the Minnesota Initiative program created
40.17by this chapter.
40.18EFFECTIVE DATE.This section is effective July 1, 2016.

40.19    Sec. 24. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
40.20    Subdivision 1. Creation; membership Membership. The Urban Minnesota
40.21Initiative Board is created and consists of the commissioner of employment and economic
40.22development, the chair of the Metropolitan Council, and eight 12 members from the general
40.23public appointed by the governor. Six Nine of the public members must be representatives
40.24from minority business enterprises. No more than four six of the public members may be of
40.25one gender. Appointments must ensure balanced geographic representation. At least half
40.26of the public members must have experience working to address racial income disparities.
40.27All public members must be experienced in business or economic development.
40.28EFFECTIVE DATE.This section is effective July 1, 2016.

40.29    Sec. 25. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
41.1    Subd. 2. Technical assistance. The board through the department, shall provide
41.2technical assistance and development information services to state agencies, regional
41.3agencies, special districts, local governments, and the public, with special emphasis on
41.4minority communities informational outreach about the program to lenders, nonprofit
41.5corporations, and low-income and minority communities throughout the state that support
41.6the development of business enterprises and entrepreneurs.
41.7EFFECTIVE DATE.This section is effective July 1, 2016.

41.8    Sec. 26. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
41.9    Subd. 4. Reports. The board shall submit an annual report to the legislature of an
41.10accounting of loans made under section 116M.18, including information on loans to
41.11minority business enterprises made, the number of jobs created by the program, the impact
41.12on low-income areas, and recommendations concerning minority business development
41.13and jobs for persons in low-income areas.
41.14EFFECTIVE DATE.This section is effective July 1, 2016.

41.15    Sec. 27. Minnesota Statutes 2014, section 116M.18, is amended to read:
41.16116M.18 URBAN CHALLENGE GRANTS MINNESOTA INITIATIVE
41.17PROGRAM.
41.18    Subdivision 1. Establishment. The Minnesota Initiative program is established to
41.19award grants to nonprofit corporations to fund loans to businesses owned by minority or
41.20low-income persons or women or veterans.
41.21    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand,
41.22loans shall be made so that an approximately equal dollar amount of loans are made to
41.23businesses in the metropolitan area as in the nonmetropolitan area. If funds remain after
41.24the ninth month of the fiscal year, those funds shall revert to the general loan pool and may
41.25be lent in any part of the state.
41.26    Subdivision 1 Subd. 1b. Eligibility rules Grants. The board shall make urban
41.27challenge grants for use in low-income areas to nonprofit corporations to fund loans to
41.28businesses owned by minority or low-income persons or women or veterans to encourage
41.29private investment, to provide jobs for minority and low-income persons and others in
41.30low-income areas, to create and strengthen minority business enterprises, and to promote
41.31economic development in a low-income area. The board shall adopt rules to establish
41.32criteria for determining loan eligibility.
42.1    Subd. 2. Challenge Grant eligibility; nonprofit corporation. (a) The board
42.2may enter into agreements with nonprofit corporations to fund and guarantee loans the
42.3nonprofit corporation makes in low-income areas under subdivision 4. A corporation
42.4must demonstrate that to businesses owned by minority or low-income persons or
42.5women or veterans. The board shall evaluate applications from nonprofit corporations.
42.6In evaluating applications, the board must consider, among other things, whether the
42.7nonprofit corporation:
42.8(1) its has a board of directors that includes citizens experienced in business
42.9and community development, minority business enterprises, addressing racial income
42.10disparities, and creating jobs in low-income areas for low-income and minority persons;
42.11(2) it has the technical skills to analyze projects;
42.12(3) it is familiar with other available public and private funding sources and
42.13economic development programs;
42.14(4) it can initiate and implement economic development projects;
42.15(5) it can establish and administer a revolving loan account or has operated a
42.16revolving loan account; and
42.17(6) it can work with job referral networks which assist minority and other persons in
42.18low-income areas low-income persons; and
42.19(7) has established relationships with minority communities.
42.20(b) The department shall review existing agreements with nonprofit corporations
42.21every five years and may renew or terminate the agreement based on the review. In making
42.22its review, the department shall consider, among other criteria, the criteria in paragraph (a).
42.23    Subd. 3. Revolving loan fund. (a) The board shall establish a revolving loan fund to
42.24make grants to nonprofit corporations for the purpose of making loans and loan guarantees
42.25to new and expanding businesses in a low-income area to promote owned by minority or
42.26low-income persons or women or veterans and to support minority business enterprises
42.27and job creation for minority and other persons in low-income areas low-income persons.
42.28(b) Nonprofit corporations that receive grants from the department under the
42.29program must establish a commissioner-certified revolving loan fund for the purpose
42.30of making eligible loans.
42.31(c) Eligible business enterprises include, but are not limited to, technologically
42.32innovative industries, value-added manufacturing, and information industries. Loan
42.33applications given preliminary approval by the nonprofit corporation must be forwarded to
42.34the board for approval. The commissioner must give final approval for each loan or loan
42.35guarantee made by the nonprofit corporation. The amount of the state funds contributed to
42.36any loan or loan guarantee may not exceed 50 percent of each loan.
43.1    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans
43.2made or guaranteed by nonprofit corporations under the urban challenge grant program.
43.3(b) Loans or guarantees must be made to businesses that are not likely to undertake
43.4a project for which loans are sought without assistance from the urban challenge grant
43.5program.
43.6(c) A loan or guarantee must be used for a project designed to benefit persons in
43.7low-income areas through the creation of job or business opportunities for them to support
43.8a business owned by a minority or a low-income person or woman or veteran. Priority
43.9must be given for loans to the lowest income areas.
43.10(d) The minimum state contribution to a loan or guarantee is $5,000 and the
43.11maximum is $150,000.
43.12(e) The state contribution must be matched by at least an equal amount of new
43.13private investment.
43.14(f) A loan may not be used for a retail development project.
43.15(g) The business must agree to work with job referral networks that focus on
43.16minority and low-income applicants from low-income areas.
43.17    Subd. 4a. Microenterprise loan. Urban challenge Program grants may be
43.18used to make microenterprise loans to small, beginning businesses, including a sole
43.19proprietorship. Microenterprise loans are subject to this section except that:
43.20(1) they may also be made to qualified retail businesses;
43.21(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000
43.22$35,000; and
43.23(3) in a low-income area, they may be made for a minimum of $5,000 and a
43.24maximum of $50,000; and
43.25(3) (4) they do not require a match.
43.26    Subd. 5. Revolving fund administration; rules. (a) The board shall establish a
43.27minimum interest rate for loans or guarantees to ensure that necessary loan administration
43.28costs are covered.
43.29(b) Loan repayment amounts equal to one-half of the principal and interest must be
43.30deposited in a revolving fund created by the board for challenge grants. The remaining
43.31amount of the loan repayment may be paid to the department for deposit in the revolving
43.32loan fund. Loan interest payments must be deposited in a revolving loan fund created
43.33by the nonprofit corporation originating the loan being repaid for further distribution,
43.34consistent with the loan criteria specified in subdivision 4 of this section.
43.35(c) Administrative expenses of the board and nonprofit corporations with whom
43.36the board enters into agreements under subdivision 2, including expenses incurred by
44.1a nonprofit corporation in providing financial, technical, managerial, and marketing
44.2assistance to a business enterprise receiving a loan under subdivision 4, may be paid out of
44.3the interest earned on loans and out of interest earned on money invested by the state Board
44.4of Investment under section 116M.16, subdivision 2, as may be provided by the board.
44.5    Subd. 6. Rules. The board shall adopt rules to implement this section.
44.6    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
44.7corporation with which it has entered into an agreement under subdivision 1 2. These
44.8loans must be used to support a new or expanding business. This support may include
44.9such forms of financing as the sale of goods to the business on installment or deferred
44.10payments, lease purchase agreements, or royalty investments in the business. The interest
44.11rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
44.12the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
44.13nonprofit corporation may charge a loan origination fee equal to or less than one percent
44.14of the loan value. The nonprofit corporation may retain the amount of the origination fee.
44.15The nonprofit corporation must provide at least an equal match to the loan received by the
44.16board. The maximum loan available to the nonprofit corporation under this subdivision is
44.17$50,000. Loans made to the nonprofit corporation under this subdivision may be made
44.18without interest. Repayments made by the nonprofit corporation must be deposited in the
44.19revolving fund created for urban initiative program grants.
44.20    Subd. 7. Cooperation. A nonprofit corporation that receives an urban challenge a
44.21program grant shall cooperate with other organizations, including but not limited to,
44.22community development corporations, community action agencies, and the Minnesota
44.23small business development centers.
44.24    Subd. 8. Reporting requirements. A nonprofit corporation that receives a
44.25challenge program grant shall:
44.26(1) submit an annual report to the board by September March 30 of each year that
44.27includes a description of projects businesses supported by the urban challenge grant
44.28program, an account of loans made during the calendar year, the program's impact on
44.29minority business enterprises and job creation for minority persons and low-income
44.30persons in low-income areas, the source and amount of money collected and distributed by
44.31the urban challenge grant program, the program's assets and liabilities, and an explanation
44.32of administrative expenses; and
44.33(2) provide for an independent annual audit to be performed in accordance with
44.34generally accepted accounting practices and auditing standards and submit a copy of each
44.35annual audit report to the board.
45.1    Subd. 9. Capacity building grants. The department may make grants to nonprofit
45.2corporations for the purpose of building their capacity to meet the eligibility criteria for
45.3the grant program under subdivision 2, or in applying for the Department of Employment
45.4and Economic Development's business development competitive grant program. Funding
45.5priority must be given to those applicants that can demonstrate that they have established
45.6relationships with minority communities and have provided small business-related
45.7services primarily to low-income and minority business enterprises.
45.8EFFECTIVE DATE.This section is effective July 1, 2016.

45.9    Sec. 28. Minnesota Statutes 2014, section 179A.041, is amended by adding a
45.10subdivision to read:
45.11    Subd. 10. Open meetings. Chapter 13D does not apply to meetings of the board
45.12when it is deliberating on the merits of unfair labor practice charges under sections
45.13179.11, 179.12, and 179A.13; reviewing a recommended decision and order of a hearing
45.14officer under section 179A.13; reviewing decisions of the commissioner of the Bureau of
45.15Mediation Services relating to unfair labor practices under section 179A.12, subdivision
45.1611; or exercising its hiring authority under section 179A.041.
45.17EFFECTIVE DATE.This section is effective the day following final enactment.

45.18    Sec. 29. Minnesota Statutes 2014, section 179A.041, is amended by adding a
45.19subdivision to read:
45.20    Subd. 11. Report. The board shall prepare and submit a report to the governor
45.21and the chairs and ranking minority members of the committees with jurisdiction over
45.22the board by November 15, 2017. The report shall summarize the nature, number, and
45.23resolution of charges filed with the board. The report shall cover the period of July
45.241, 2016, through June 30, 2017.
45.25EFFECTIVE DATE.This section is effective July 1, 2016.

45.26    Sec. 30. Minnesota Statutes 2015 Supplement, section 326B.988, is amended to read:
45.27326B.988 EXCEPTIONS.
45.28    (a) The provisions of sections 326B.95 to 326B.998 shall not apply to:
45.29    (1) boilers and pressure vessels in buildings occupied solely for residence purposes
45.30with accommodations for not more than five families;
45.31    (2) railroad locomotives operated by railroad companies for transportation purposes;
46.1    (3) air tanks installed on the right-of-way of railroads and used directly in the
46.2operation of trains;
46.3    (4) boilers and pressure vessels under the direct jurisdiction of the United States;
46.4    (5) unfired pressure vessels having an internal or external working pressure not
46.5exceeding 15 psig with no limit on size;
46.6    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet
46.7in volume and equipped with an ASME code stamped safety valve set at a maximum of
46.8100 psig;
46.9    (7) pressure vessels having an inside diameter not exceeding six inches;
46.10    (8) every vessel that contains water under pressure, including those containing air
46.11that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
46.12design temperature does not exceed 210 degrees Fahrenheit;
46.13    (9) boiler or pressure vessels located on farms used solely for agricultural or
46.14horticultural purposes; for purposes of this section, boilers used for mint oil extraction
46.15are considered used for agricultural or horticultural purposes, provided that the owner or
46.16lessee complies with the inspection requirements contained in section 326B.958;
46.17    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
46.18    (11) unfired pressure vessels in petroleum refineries;
46.19    (12) an air tank or pressure vessel which is an integral part of a passenger motor
46.20bus, truck, or trailer;
46.21    (13) hot water heating and other hot liquid boilers not exceeding a heat input of
46.22750,000 BTU per hour;
46.23    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
46.24BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
46.25of 120 gallons, or a pressure of 160 psig;
46.26    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
46.27    (16) pressure vessels operated full of water or other liquid not materially more
46.28hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
46.29Fahrenheit or a pressure of 200 psig;
46.30    (17) steam-powered turbines at papermaking facilities which are powered by steam
46.31generated by steam facilities at a remote location;
46.32    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
46.33or antique motor vehicles constructed or maintained only as a hobby for exhibition,
46.34educational or historical purposes and not for commercial use, if the boilers have an
46.35inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
47.1equipped with an ASME stamped safety valve of adequate size, a water level indicator,
47.2and a pressure gauge;
47.3(19) any pressure vessel used as an integral part of an electrical circuit breaker;
47.4(20) pressure vessels used for the storage of refrigerant if they are built to ASME
47.5code specifications, registered with the national board, and equipped with an ASME
47.6code-stamped pressure-relieving device set no higher than the maximum allowable
47.7working pressure of the vessel. This does not include pressure vessels used in ammonia
47.8refrigeration systems;
47.9(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
47.10argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
47.11or Minnesota Department of Transportation specifications and equipped with an ASME
47.12code-stamped pressure-relieving device. The owner of the vessels shall perform annual
47.13visual inspections and planned maintenance on these vessels to ensure vessel integrity;
47.14(22) pressure vessels used for the storage of compressed air for self-contained
47.15breathing apparatuses;
47.16(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
47.17and
47.18(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
47.19feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
47.20less.
47.21    (b) An engineer's license is not required for hot water supply boilers.
47.22    (c) An engineer's license and annual inspection by the department is not required
47.23for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
47.24exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
47.25    (d) Electric boilers not exceeding a maximum working pressure of 50 psig,
47.26maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
47.27vessels and shall not require an engineer license to operate.
47.28(e) Sawmills, located in a county with a population of less than 8,000 according to
47.29the last federal census and that utilize steam for the drying of lumber, are not required to
47.30meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
47.315225.1180, only if all of the following conditions are met:
47.32(1) the owner complies with the inspection requirements under section 326B.958,
47.33and the licensing requirements under section 326B.972; and
47.34(2) the boiler:
47.35(i) is equipped with electronic control systems that are remotely operated but which
47.36require on-site manual reset of system faults;
48.1(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
48.2(iii) has automatic safety mechanisms built into the remote monitoring systems that
48.3send an alarm upon detection of a fault condition, and an on-site alarm that will sound
48.4upon detection of a fault condition and which may be heard at a distance of 500 feet;
48.5(iv) has a water treatment program that is supervised by a third party water treatment
48.6company; and
48.7(v) is attended on site by a licensed boiler operator at least two times in a 24-hour
48.8period. If the boiler is not attended more than twice in a 24-hour period, the period
48.9between checks must not be less than eight hours.
48.10This paragraph expires August 1, 2016. This paragraph expires the sooner of August
48.111, 2018, or upon the effective date of a rule regulating high pressure boiler attendance
48.12requirements at a sawmill described in this paragraph adopted after the effective date
48.13of this act.
48.14EFFECTIVE DATE.This section is effective the day following final enactment.

48.15    Sec. 31. [462A.38] WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
48.16DEVELOPMENT PROGRAM.
48.17    Subdivision 1. Establishment. A workforce and affordable homeownership
48.18development program is established to award homeownership development grants
48.19to nonprofit organizations, cooperatives created under chapter 308A or 308B, and
48.20community land trusts created for the purposes outlined in section 462A.31, subdivision
48.211, for development of workforce and affordable homeownership projects. The purpose
48.22of the program is to increase the supply of workforce and affordable, owner-occupied
48.23multifamily or single-family housing throughout Minnesota.
48.24    Subd. 2. Use of funds. (a) Grant funds awarded under this program may be used for:
48.25(1) development costs;
48.26(2) rehabilitation;
48.27(3) land development; and
48.28(4) residential housing, including storm shelters and related community facilities.
48.29(b) A project funded through the grant program shall serve households that meet the
48.30income limits as provided in section 462A.33, subdivision 5, unless a project is intended
48.31for the purpose outlined in section 462A.02, subdivision 6.
48.32    Subd. 3. Application. The commissioner shall develop forms and procedures for
48.33soliciting and reviewing applications for grants under this section. The commissioner shall
48.34consult with interested stakeholders when developing the guidelines and procedures for
49.1the program. In making grants, the commissioner shall establish semiannual application
49.2deadlines in which grants will be authorized from all or part of the available appropriations.
49.3    Subd. 4. Awarding grants. Among comparable proposals, preference must be
49.4given to proposals that include contributions from nonstate resources for the greatest
49.5portion of the total development cost.
49.6    Subd. 5. Statewide program. The agency shall attempt to make grants in
49.7approximately equal amounts to applicants outside and within the metropolitan area.
49.8    Subd. 6. Report. Beginning January 15, 2018, the commissioner must annually
49.9submit a report to the chairs and ranking minority members of the senate and house of
49.10representatives committees having jurisdiction over housing and workforce development
49.11specifying the projects that received grants under this section and the specific purposes for
49.12which the grant funds were used.
49.13EFFECTIVE DATE.This section is effective the day following final enactment.

49.14    Sec. 32. Minnesota Statutes 2014, section 473.121, subdivision 2, is amended to read:
49.15    Subd. 2. Metropolitan area or area. "Metropolitan area" or "area" means the area
49.16over which the Metropolitan Council has jurisdiction, including only the counties of
49.17Anoka; Carver; Dakota excluding the city cities of Northfield and Cannon Falls; Hennepin
49.18excluding the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New
49.19Prague; and Washington.

49.20    Sec. 33. Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to
49.21read:
49.22
Sec. 4. EXPLORE MINNESOTA TOURISM
$
14,118,000
$
14,248,000
49.23(a) To develop maximum private sector
49.24involvement in tourism, $500,000 in fiscal
49.25year 2016 and $500,000 in fiscal year 2017
49.26must be matched by Explore Minnesota
49.27Tourism from nonstate sources. Each $1 of
49.28state incentive must be matched with $6 of
49.29private sector funding. Cash match is defined
49.30as revenue to the state or documented cash
49.31expenditures directly expended to support
49.32Explore Minnesota Tourism programs. Up
49.33to one-half of the private sector contribution
50.1may be in-kind or soft match. The incentive
50.2in fiscal year 2016 shall be based on fiscal
50.3year 2015 private sector contributions. The
50.4incentive in fiscal year 2017 shall be based on
50.5fiscal year 2016 private sector contributions.
50.6This incentive is ongoing. Of this amount,
50.7$100,000 is for a grant to the Northern Lights
50.8International Music festival.
50.9(b) Funding for the marketing grants is
50.10available either year of the biennium.
50.11Unexpended grant funds from the first year
50.12are available in the second year.
50.13(c) $30,000 in fiscal year 2016 is for Mille
50.14Lacs Lake tourism promotion. This is a
50.15onetime appropriation.

50.16    Sec. 34. Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to
50.17read:
50.18
50.19
Sec. 6. BUREAU OF MEDIATION
SERVICES
$
2,208,000
$
2,234,000
2,497,000
50.20(a) $68,000 each year is for grants to area
50.21labor management committees. Grants may
50.22be awarded for a 12-month period beginning
50.23July 1 each year. Any unencumbered balance
50.24remaining at the end of the first year does not
50.25cancel but is available for the second year.
50.26(b) $125,000 each year in fiscal year 2016
50.27is for purposes of the Public Employment
50.28Relations Board under Minnesota Statutes,
50.29section 179A.041. This is a onetime
50.30appropriation.
50.31(c) $256,000 each year is in fiscal year
50.322016 and $394,000 in fiscal year 2017 are
50.33for the Office of Collaboration and Dispute
50.34Resolution under Minnesota Statutes, section
51.1179.90 . The base appropriation for this
51.2purpose is $394,000 in fiscal year 2018 and
51.3$394,000 in fiscal year 2019. Of this amount,
51.4$160,000 each year is for grants under
51.5Minnesota Statutes, section 179.91, and
51.6$96,000 each year is for intergovernmental
51.7and public policy collaboration and operation
51.8of the office.
51.9(d) $250,000 is to complete the Case
51.10Management System-Database Project Phase
51.11II. This is a onetime appropriation.
51.12EFFECTIVE DATE.This section is effective the day following final enactment.

51.13    Sec. 35. DAY TRAINING AND HABILITATION GRANT PROGRAM.
51.14    Subdivision 1. Establishment. The commissioner of employment and economic
51.15development shall establish a day training and habilitation grant program in fulfillment
51.16of the Olmstead Plan purpose of ensuring that people with disabilities have choices for
51.17competitive, meaningful, and sustained employment in the most integrated setting.
51.18    Subd. 2. Definitions. (a) For the purposes of this section, the following terms
51.19have the meanings given them.
51.20(b) "Day training and habilitation providers" means those organizations whose
51.21names are listed as Department of Human Services providers in the Minnesota Department
51.22of Administration, Materials Management Division, ALP Manual, Appendix J, without
51.23regard to whether they are listed as approved vendors with the Minnesota Department
51.24of Employment and Economic Development, Division of Rehabilitation Services as a
51.25community rehabilitation provider, limited-use vendor, or center for independent living,
51.26and irrespective as to whether they are accredited by CARF International.
51.27(c) "Competitive employment" means full-time or part-time employment, with or
51.28without support, in an integrated setting in the community that pays at least minimum
51.29wage, as defined by the Fair Labor Standards Act, but not less than the customary wage
51.30and level of benefits paid by the employer for the same or similar work performed by
51.31workers without a disability.
51.32(d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1,
51.332013, and all subsequent modifications approved by the United States District Court.
52.1    Subd. 3. Competitive process. The commissioner shall issue a request for proposals
52.2to day training and habilitation providers seeking proposals to assist the Department
52.3of Employment and Economic Development in achieving its goals as provided in the
52.4Olmstead Plan. Grant funds shall be used to improve individual employment outcomes
52.5by aligning programs, funding, and policies to support people with disabilities to choose,
52.6secure, and maintain competitive employment and self-employment, including, but not
52.7limited to, the following activities:
52.8(1) implementing policies and initiating processes that improve the employment
52.9outcomes of working adults with disabilities;
52.10(2) offering incentives for innovation that increase competitive employment in
52.11the general work force;
52.12(3) expanding the flexibility in current funding and services to increase competitive
52.13employment outcomes;
52.14(4) providing evidence of partnerships with private sector businesses and public
52.15sector employment; and
52.16(5) submitting outcome data, required by the department, according to the
52.17stipulations of the Olmstead Plan.
52.18    Subd. 4. Eligibility. Any person who has a disability as determined by the Social
52.19Security Administration or state medical review team is eligible to receive services
52.20provided with grant funds.
52.21    Subd. 5. Consultation required. The commissioner shall consult with the
52.22governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and
52.23Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and
52.24other governor-appointed disability councils in designing, implementing, and evaluating
52.25the competitive grant program.
52.26    Subd. 6. Report. On or before February 1, 2017, and annually thereafter, the
52.27commissioner shall report to the chairs and ranking minority members of the senate and
52.28house of representatives committees having jurisdiction over employment and economic
52.29development policy and finance on the amount of funds awarded and the outcomes
52.30reported by grantees.

52.31    Sec. 36. EXPLOITED FAMILIES RENTAL ASSISTANCE PROGRAM .
52.32    Subdivision 1. Rental assistance program. (a) The commissioner of housing
52.33finance shall establish a grant program within the housing trust fund to serve families
52.34from emerging communities at risk of being homeless and who have been victims of
52.35gender-based violence, including, but not limited to domestic violence, sexual assault,
53.1trafficking, international abusive marriage, or forced marriage. For the purposes of this
53.2section the term "gender-based violence" is defined as violence that is directed against a
53.3woman because she is a woman or that affects women disproportionately; and the term
53.4"emerging communities" is defined as refugee and immigrant communities who are less
53.5established, who are unfamiliar with mainstream government services, or who have
53.6limited English proficiency. The commissioner shall award grants to organizations that
53.7can provide linguistically and culturally appropriate services and that have the capacity to
53.8serve families who have experienced gender-based violence from emerging communities.
53.9(b) The program must:
53.10(1) provide rental assistance to individuals with a minor child at risk of being
53.11homeless and who have been victims of domestic violence, sexual assault, trafficking,
53.12international abusive marriage, or forced marriage;
53.13(2) require the participants to pay at least 30 percent of the participant's income
53.14toward the rent;
53.15(3) allow the families to choose their own housing, including single-family homes,
53.16townhomes, and apartments;
53.17(4) give priority to large families who experience barriers in accessing housing,
53.18including having limited English proficiency, lack of positive rental history, employment
53.19history, and financial history; and
53.20(5) require the program participants to be employed, or actively seeking employment,
53.21or be engaged in activities that will assist them in gaining employment.
53.22    Subd. 2. Program evaluation. All grant recipients must collect and make available
53.23to the commissioner, aggregate data to assist the agency in the evaluation of the program.
53.24The commissioner shall evaluate the program effectiveness and measure the number of
53.25families served from emerging communities, the support services provided for families in
53.26seeking employment and achieving economic-stability, and the employment and housing
53.27status of the participants.

53.28    Sec. 37. "GETTING TO WORK" GRANT PROGRAM.
53.29    Subdivision 1. Creation. The commissioner of employment and economic
53.30development shall make grants to nonprofit organizations to establish and operate
53.31programs under this section that provide, repair, or maintain motor vehicles to assist
53.32eligible individuals to obtain or maintain employment.
53.33    Subd. 2. Qualified grantee. A grantee must:
53.34(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
54.1(2) at the time of application offer, or have the demonstrated capacity to offer, a
54.2motor vehicle program that provides the services required under subdivision 3.
54.3    Subd. 3. Program requirements. (a) A program must offer one or more of the
54.4following services:
54.5(1) provision of new or used motor vehicles by gift, sale, or lease;
54.6(2) motor vehicle repair and maintenance services; or
54.7(3) motor vehicle loans.
54.8(b) In addition to the requirements of paragraph (a), a program must offer one or
54.9more of the following services:
54.10(1) financial literacy education;
54.11(2) education on budgeting for vehicle ownership;
54.12(3) car maintenance and repair instruction;
54.13(4) credit counseling; or
54.14(5) job training related to motor vehicle maintenance and repair.
54.15(c) A program may also offer other transportation-related support services.
54.16    Subd. 4. Application. Applications for a grant must be by a form provided by the
54.17commissioner and on a schedule set by the commissioner. Applications must, in addition
54.18to any other information required by the commissioner, include the following:
54.19(1) a detailed description of all services to be offered;
54.20(2) the area to be served;
54.21(3) the estimated number of program participants to be served by the grant; and
54.22(4) a plan for leveraging resources from partners that may include, but are not
54.23limited to:
54.24(i) automobile dealers;
54.25(ii) automobile parts dealers;
54.26(iii) independent local mechanics and automobile repair facilities;
54.27(iv) banks and credit unions;
54.28(v) employers;
54.29(vi) employment and training agencies;
54.30(vii) insurance companies and agents;
54.31(viii) local workforce centers; and
54.32(ix) educational institutions including vocational institutions and jobs or skills
54.33training programs.
54.34    Subd. 5. Participant eligibility. (a) To be eligible to receive program services,
54.35a person must:
55.1(1) have a household income at or below 200 percent of the federal poverty level;
55.2(2) be at least 18 years of age;
55.3(3) have a valid driver's license;
55.4(4) provide the grantee with proof of motor vehicle insurance; and
55.5(5) demonstrate to the grantee that a motor vehicle is required by the person to
55.6obtain or maintain employment.
55.7(b) This subdivision does not preclude a grantee from imposing additional
55.8requirements, not inconsistent with paragraph (a), for the receipt of program services.
55.9    Subd. 6. Allocation of grants. The commissioner shall allocate grants to up to 15
55.10grantees so that, to the extent feasible, program services are available in every county of
55.11the state.
55.12    Subd. 7. Report to legislature. By February 15, 2018, the commissioner shall
55.13submit a report to the chairs of the house of representatives and senate committees with
55.14jurisdiction over workforce and economic development on program outcomes. At a
55.15minimum, the report must include:
55.16(1) the total number of program participants;
55.17(2) the number of program participants who received each of the following:
55.18(i) provision of a motor vehicle;
55.19(ii) motor vehicle repair services; and
55.20(iii) motor vehicle loan; and
55.21(3) an analysis of the impact of the "Getting to Work" grant program on the
55.22employment rate and wages of program participants.

55.23    Sec. 38. REVISOR'S INSTRUCTION.
55.24In the next editions of Minnesota Statutes and Minnesota Rules, the Revisor of
55.25Statutes shall change the term "Urban Initiative Board" to "Minnesota Initiative Board,"
55.26"board," or similar terms as the context requires.

55.27ARTICLE 3
55.28AGRICULTURE

55.29
Section 1. APPROPRIATIONS.
55.30The sums shown in the columns marked "Appropriations" are added to the
55.31appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
55.32agencies and for the purposes specified in this article. The appropriations are from the
55.33general fund, or another named fund, and are available for the fiscal year indicated for
56.1each purpose. The figures "2016" and "2017" used in this article mean that the addition
56.2to the appropriations listed under them are available for the fiscal year ending June 30,
56.32016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
56.4year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
56.5following final enactment.
56.6
APPROPRIATIONS
56.7
Available for the Year
56.8
Ending June 30
56.9
2016
2017

56.10
Sec. 2. DEPARTMENT OF AGRICULTURE
$
-0-
$
3,500,000
56.11$350,000 the second year is for deposit
56.12in the noxious weed and invasive plant
56.13species assistance account established under
56.14Minnesota Statutes, section 18.89, to be
56.15used to implement the noxious weed grant
56.16program under Minnesota Statutes, section
56.1718.90. This is a onetime appropriation.
56.18$1,000,000 the second year is for the tractor
56.19rollover protection pilot program under
56.20Minnesota Statutes, section 17.119. This is a
56.21onetime appropriation.
56.22$300,000 the second year is for the pollinator
56.23investment grant program under Minnesota
56.24Statutes, section 17.1195. This is a onetime
56.25appropriation.
56.26$200,000 the second year is for a grant to the
56.27city of Duluth to design and construct the
56.28Deep Winter Greenhouse. This is a onetime
56.29appropriation.
56.30$500,000 the second year is to administer
56.31the industrial hemp pilot program under
56.32Minnesota Statutes, section 18K.09. This is
56.33a onetime appropriation.
57.1$150,000 the second year is for grants of up
57.2to $750 to farmers who demonstrate financial
57.3hardship due to the three-year transition
57.4period required under federal law for organic
57.5certification. This is a onetime appropriation
57.6and is in addition to funds appropriated to the
57.7commissioner of agriculture and available for
57.8organic certification cost-share grants under
57.9Laws 2015, First Special Session chapter
57.104, article 1, section 2, subdivision 3. The
57.11commissioner may award both a transition
57.12grant and a certification cost-share grant to a
57.13farmer in the same fiscal year.
57.14$1,000,000 the second year is for grants
57.15to the Board of Regents of the University
57.16of Minnesota to fund the Forever Green
57.17Agriculture Initiative and to protect the
57.18state's natural resources while increasing
57.19the efficiency, profitability, and productivity
57.20of Minnesota farmers by incorporating
57.21perennial and winter annual crops into
57.22existing agricultural practices. This is a
57.23onetime appropriation and is available until
57.24June 30, 2019. The appropriation in Laws
57.252015, First Special Session chapter 2, article
57.262, section 3, paragraph (i), is available until
57.27June 30, 2018.

57.28    Sec. 3. Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:
57.29    Subd. 4. Definitions. (a) For the purposes of this section, the terms defined in this
57.30subdivision have the meanings given them.
57.31    (b) "Agricultural and environmental revolving accounts" means accounts in the
57.32agricultural fund, controlled by the commissioner, which hold funds available to the
57.33program.
57.34    (c) "Agriculture supply business" means a person, partnership, joint venture,
57.35corporation, limited liability company, association, firm, public service company,
58.1or cooperative that provides materials, equipment, or services to farmers or
58.2agriculture-related enterprises.
58.3    (d) "Allocation" means the funds awarded to an applicant for implementation of best
58.4management practices through a competitive or noncompetitive application process.
58.5    (e) "Applicant" means a local unit of government eligible to participate in this
58.6program that requests an allocation of funds as provided in subdivision 6b.
58.7    (f) "Best management practices" has the meaning given in sections 103F.711,
58.8subdivision 3
, and 103H.151, subdivision 2, or. Best management practices also means
58.9other practices, techniques, and measures that have been demonstrated to the satisfaction
58.10of the commissioner: (1) to prevent or reduce adverse environmental impacts by using
58.11the most effective and practicable means of achieving environmental goals; or (2) to
58.12achieve drinking water quality standards under chapter 103H or under Code of Federal
58.13Regulations, title 40, parts 141 and 143, as amended.
58.14    (g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
58.15applying for a low-interest loan.
58.16    (h) "Commissioner" means the commissioner of agriculture, including when the
58.17commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
58.18designee of the commissioner.
58.19    (i) "Committed project" means an eligible project scheduled to be implemented at
58.20a future date:
58.21    (1) that has been approved and certified by the local government unit; and
58.22    (2) for which a local lender has obligated itself to offer a loan.
58.23    (j) "Comprehensive water management plan" means a state approved and locally
58.24adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
58.25103D.401 , or 103D.405.
58.26    (k) "Cost incurred" means expenses for implementation of a project accrued because
58.27the borrower has agreed to purchase equipment or is obligated to pay for services or
58.28materials already provided as a result of implementing an approved eligible project.
58.29    (l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
58.30company, association, firm, public service company, or cooperative that regularly
58.31participates in physical labor or operations management of farming and files a Schedule F
58.32as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
58.33the primary business activity under Schedule C, K, or S, or any other applicable report to
58.34the United States Internal Revenue Service.
58.35    (m) "Lender agreement" means an agreement entered into between the commissioner
58.36and a local lender which contains terms and conditions of participation in the program.
59.1    (n) "Local government unit" means a county, soil and water conservation district,
59.2or an organization formed for the joint exercise of powers under section 471.59 with
59.3the authority to participate in the program.
59.4    (o) "Local lender" means a local government unit as defined in paragraph (n), a state
59.5or federally chartered bank, a savings association, a state or federal credit union, Agribank
59.6and its affiliated organizations, or a nonprofit economic development organization or other
59.7financial lending institution approved by the commissioner.
59.8    (p) "Local revolving loan account" means the account held by a local government unit
59.9and a local lender into which principal repayments from borrowers are deposited and new
59.10loans are issued in accordance with the requirements of the program and lender agreements.
59.11    (q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
59.12    (r) "Program" means the agriculture best management practices loan program
59.13in this section.
59.14    (s) "Project" means one or more components or activities located within Minnesota
59.15that are required by the local government unit to be implemented for satisfactory
59.16completion of an eligible best management practice.
59.17    (t) "Rural landowner" means the owner of record of Minnesota real estate located
59.18in an area determined by the local government unit to be rural after consideration of
59.19local land use patterns, zoning regulations, jurisdictional boundaries, local community
59.20definitions, historical uses, and other pertinent local factors.
59.21    (u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
59.22(d), except as expressly limited in this section.

59.23    Sec. 4. Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:
59.24    Subd. 11a. Eligible projects. (a) All projects that remediate or mitigate adverse
59.25environmental impacts are eligible if:
59.26(1) the project is eligible under the an allocation agreement and funding sources
59.27designated by the local government unit to finance the project; and.
59.28(2) (b) A manure management projects remediate project is eligible if the project
59.29remediates or mitigate mitigates impacts from facilities with less than 1,000 animal units
59.30as defined in Minnesota Rules, chapter 7020, and otherwise meets the requirements of
59.31this section.
59.32(c) A drinking water project is eligible if the project:
59.33(1) remediates the adverse environmental impacts or presence of contaminants in
59.34private well water;
59.35(2) implements best management practices to achieve drinking water standards; and
60.1(3) otherwise meets the requirements of this section.

60.2    Sec. 5. [17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT
60.3PROGRAM.
60.4    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share
60.5grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that
60.6retrofit eligible tractors with eligible rollover protective structures. Grants are limited to
60.770 percent of the farmer's or school's documented cost to purchase, ship, and install an
60.8eligible rollover protective structure. The commissioner must increase the grant award
60.9amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or
60.10school's cost per tractor to no more than $500.
60.11(b) A rollover protective structure is eligible if it meets or exceeds SAE International
60.12standard J2194.
60.13(c) A tractor is eligible if the tractor was built before 1987.
60.14    Subd. 2. Promotion; administration. The commissioner may spend up to 20
60.15percent of total program dollars each fiscal year to promote and administer the program to
60.16Minnesota farmers and schools.
60.17    Subd. 3. Nonstate sources; appropriation. The commissioner must accept
60.18contributions from nonstate sources to supplement state appropriations for this program.
60.19Contributions received under this subdivision are appropriated to the commissioner for
60.20purposes of this section.
60.21    Subd. 4. Expiration. This section expires on June 30, 2019.

60.22    Sec. 6. [17.1195] POLLINATOR INVESTMENT GRANT PROGRAM.
60.23    Subdivision 1. Establishment. The commissioner may award a pollinator
60.24investment grant to a person who implements best management practices to protect wild
60.25and managed insect pollinators in this state equal to ten percent of the first $100,000 of
60.26qualifying expenditures, provided the person makes qualifying expenditures of at least
60.27$25,000. The commissioner may award multiple pollinator investment grants to a person
60.28over the life of the program as long as the cumulative amount does not exceed $30,000.
60.29    Subd. 2. Definition. For the purposes of this section, "qualified expenditures"
60.30means the amount spent for:
60.31(1) in conventional farming systems, planting neonicotinoid-free seeds,
60.32implementing integrated pest management practices, and not using a pesticide class
60.33labeled by the United States Environmental Protection Agency as toxic to bees; or
61.1(2) creating new pollinator habitat, and not using a pesticide class labeled by the
61.2United States Environmental Protection Agency as toxic to bees; by:
61.3(i) seeding native flowering plants as prairie strips within productive cropland to
61.4provide forage for pollinators;
61.5(ii) renovating a pasture system by overseeding a pasture with high-diversity native
61.6forb or native or non-native legume mixtures;
61.7(iii) interseeding legumes, brassicas, buckwheat, or other pollinator forage plants
61.8with corn or soybean, or planting these as cover crops before or after corn or soybean;
61.9(iv) planting or seeding riparian and wetland areas and vegetative buffer strips with
61.10native perennial cover that provides forage for pollinators;
61.11(v) planting a native hedgerow; or
61.12(vi) increasing plant diversity in nonproductive areas by adding native flowering
61.13forbs, trees, or shrubs, or by introducing pollinator-friendly plant species into existing
61.14strands of grasses.
61.15    Subd. 3. Eligibility. (a) To be eligible for a pollinator investment grant, a person
61.16must:
61.17(1) be a resident of Minnesota or an entity specifically defined in section 500.24,
61.18subdivision 2, that is eligible to own farmland and operate a farm in this state under
61.19section 500.24;
61.20(2) be the principal operator of the farm; and
61.21(3) apply to the commissioner on forms prescribed by the commissioner, including a
61.22statement of the qualifying expenditures made during the qualifying period along with any
61.23proof or other documentation the commissioner may require.
61.24(b) The $10,000 maximum grant applies at the entity level for partnerships, S
61.25corporations, C corporations, trusts, and estates as well as at the individual level. In the
61.26case of married individuals, the grant is limited to $10,000 for a married couple.

61.27    Sec. 7. Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:
61.28    Subd. 2. Activities authorized. For the purposes of this program, the commissioner
61.29may issue grants, loans, or other forms of financial assistance. Eligible activities include,
61.30but are not limited to, grants to livestock producers under the livestock investment grant
61.31program under section 17.118, bioenergy awards made by the NextGen Energy Board
61.32under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and
61.33financial assistance to support other rural economic infrastructure activities.

62.1    Sec. 8. Minnesota Statutes 2015 Supplement, section 41A.14, subdivision 1, is
62.2amended to read:
62.3    Subdivision 1. Duties; grants. The agriculture research, education, extension, and
62.4technology transfer grant program is created. The purpose of the grant program is to
62.5provide investments that will most efficiently achieve long-term agricultural productivity
62.6increases through improved infrastructure, vision, and accountability. The scope and
62.7intent of the grants, to the extent possible, shall provide for a long-term base funding
62.8that allows the research grantee to continue the functions of the research, education, and
62.9extension, and technology transfer efforts to a practical conclusion. Priority for grants
62.10shall be given to human infrastructure. The commissioner shall provide grants for:
62.11(1) agricultural research, extension, and technology transfer needs and recipients
62.12including agricultural research and extension at the University of Minnesota, research and
62.13outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the
62.14Minnesota Agricultural Experiment Station, University of Minnesota Extension Service,
62.15the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
62.16the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
62.17Education Council;
62.18(2) agriculture rapid response for plant and animal diseases and pests; and
62.19(3) agricultural education including but not limited to the Minnesota Agriculture
62.20Education Leadership Council, farm business management, mentoring programs, graduate
62.21debt forgiveness, and high school programs.
62.22EFFECTIVE DATE.This section is effective the day following final enactment.

62.23    Sec. 9. Minnesota Statutes 2015 Supplement, section 41A.14, subdivision 2, is
62.24amended to read:
62.25    Subd. 2. Advisory panel. (a) In awarding grants under this section, the
62.26commissioner and a representative of the College of Food, Agricultural, and Natural
62.27Resource Sciences at the University of Minnesota must consult with an advisory panel
62.28consisting of the following stakeholders:
62.29(1) a representative of the College of Food, Agricultural and Natural Resource
62.30Sciences at the University of Minnesota;
62.31(2) a representative of the Minnesota State Colleges and Universities system;
62.32(3) (2) a representative of the Minnesota Farm Bureau;
62.33(4) (3) a representative of the Minnesota Farmers Union;
62.34(5) (4) a person representing agriculture industry statewide;
63.1(6) (5) a representative of each of the state commodity councils organized under
63.2section 17.54 and the Minnesota Pork Board;
63.3(7) (6) a person representing an association of primary manufacturers of forest
63.4products;
63.5(8) (7) a person representing organic or sustainable agriculture; and
63.6(9) (8) a person representing statewide environment and natural resource
63.7conservation organizations.
63.8(b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their
63.9respective organizations.
63.10EFFECTIVE DATE.This section is effective the day following final enactment.

63.11    Sec. 10. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
63.12subdivision to read:
63.13    Subd. 2a. Biobased content. "Biobased content" means a chemical, polymer,
63.14monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a
63.15biobased percentage of at least 51 percent as determined by testing representative samples
63.16using American Society for Testing and Materials specification D6866.

63.17    Sec. 11. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
63.18subdivision to read:
63.19    Subd. 2b. Biobased formulated product. "Biobased formulated product" means
63.20a product that is not sold primarily for use as food, feed, or fuel and that has a biobased
63.21content percentage of at least ten percent as determined by testing representative samples
63.22using American Society for Testing and Materials specification D6866, or that contains
63.23a biobased chemical constituent that displaces a known hazardous or toxic constituent
63.24previously used in the product formulation.

63.25    Sec. 12. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
63.26subdivision to read:
63.27    Subd. 2c. Biobutanol. "Biobutanol" means fermentation isobutyl alcohol that is
63.28derived from agricultural products, including potatoes, cereal grains, cheese whey, and
63.29sugar beets; forest products; or other renewable resources, including residue and waste
63.30generated from the production, processing, and marketing of agricultural products, forest
63.31products, and other renewable resources.

64.1    Sec. 13. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
64.2subdivision to read:
64.3    Subd. 2d. Biobutanol facility. "Biobutanol facility" means a facility at which
64.4biobutanol is produced.

64.5    Sec. 14. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
64.6subdivision to read:
64.7    Subd. 9a. Quarterly. "Quarterly" means any of the following three-month intervals
64.8in a calendar year: January through March, April through June, July through September,
64.9or October through December.

64.10    Sec. 15. Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is
64.11amended to read:
64.12    Subd. 10. Renewable chemical. "Renewable chemical" means a chemical with
64.13biobased content as defined in section 41A.105, subdivision 1a.

64.14    Sec. 16. Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is
64.15amended to read:
64.16    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
64.17source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
64.18less from the state border, raw materials may be sourced from within a 100-mile radius.
64.19Raw materials must be from agricultural or forestry sources or from solid waste. The
64.20facility must be located in Minnesota, must begin production at a specific location by June
64.2130, 2025, and must not begin operating above 95,000 23,750 MMbtu of annual quarterly
64.22biofuel production before July 1, 2015. Eligible facilities include existing companies and
64.23facilities that are adding advanced biofuel production capacity, or retrofitting existing
64.24capacity, as well as new companies and facilities. Production of conventional corn ethanol
64.25and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must
64.26produce at least 95,000 23,750 MMbtu a year of biofuel quarterly.
64.27(b) No payments shall be made for advanced biofuel production that occurs after
64.28June 30, 2035, for those eligible biofuel producers under paragraph (a).
64.29(c) An eligible producer of advanced biofuel shall not transfer the producer's
64.30eligibility for payments under this section to an advanced biofuel facility at a different
64.31location.
64.32(d) A producer that ceases production for any reason is ineligible to receive
64.33payments under this section until the producer resumes production.
65.1(e) Renewable chemical production for which payment has been received under
65.2section 41A.17, and biomass thermal production for which payment has been received
65.3under section 41A.18, are not eligible for payment under this section.
65.4(f) Biobutanol is eligible under this section.

65.5    Sec. 17. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is
65.6amended to read:
65.7    Subdivision 1. Eligibility. (a) A facility eligible for payment under this program
65.8must source at least 80 percent biobased content, as defined in section 41A.105,
65.9subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
65.10state border, biobased content must be sourced from within a 100-mile radius. Biobased
65.11content must be from agricultural or forestry sources or from solid waste. The facility must
65.12be located in Minnesota, must begin production at a specific location by June 30, 2025, and
65.13must not begin production of 3,000,000 750,000 pounds of chemicals annually quarterly
65.14before January 1, 2015. Eligible facilities include existing companies and facilities that are
65.15adding production capacity, or retrofitting existing capacity, as well as new companies and
65.16facilities. Eligible renewable chemical facilities must produce at least 3,000,000 750,000
65.17pounds per year of renewable chemicals quarterly. Renewable chemicals produced
65.18through processes that are fully commercial before January 1, 2000, are not eligible.
65.19(b) No payments shall be made for renewable chemical production that occurs after
65.20June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
65.21(c) An eligible producer of renewable chemicals shall not transfer the producer's
65.22eligibility for payments under this section to a renewable chemical facility at a different
65.23location.
65.24(d) A producer that ceases production for any reason is ineligible to receive
65.25payments under this section until the producer resumes production.
65.26(e) Advanced biofuel production for which payment has been received under section
65.2741A.16 , and biomass thermal production for which payment has been received under
65.28section 41A.18, are not eligible for payment under this section.

65.29    Sec. 18. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is
65.30amended to read:
65.31    Subd. 2. Payment amounts; bonus; limits. (a) The commissioner shall make
65.32payments to eligible producers of renewable chemicals located in the state. The amount of
65.33the payment for each producer's annual production is $0.03 per pound of sugar-derived
65.34renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
66.1cellulosic-derived renewable chemical produced at a specific location for ten years after
66.2the start of production.
66.3(b) An eligible facility producing renewable chemicals using agricultural cellulosic
66.4biomass is eligible for a 20 percent bonus payment for each MMbtu pound produced from
66.5agricultural biomass that is derived from perennial crop or cover crop biomass.
66.6(c) Total payments under this section to an eligible renewable chemical producer in
66.7a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
66.8chemical production. Total payments under this section to all eligible renewable chemical
66.9producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
66.10renewable chemical production. The commissioner shall award payments on a first-come,
66.11first-served basis within the limits of available funding.
66.12(d) For purposes of this section, an entity that holds a controlling interest in more
66.13than one renewable chemical production facility is considered a single eligible producer.

66.14    Sec. 19. Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is
66.15amended to read:
66.16    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
66.17source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
66.18less from the state border, raw materials should be sourced from within a 100-mile radius.
66.19Raw materials must be from agricultural or forestry sources. The facility must be located
66.20in Minnesota, must have begun production at a specific location by June 30, 2025, and
66.21must not begin before July 1, 2015. Eligible facilities include existing companies and
66.22facilities that are adding production capacity, or retrofitting existing capacity, as well as
66.23new companies and facilities. Eligible biomass thermal production facilities must produce
66.24at least 1,000 250 MMbtu per year of biomass thermal quarterly.
66.25(b) No payments shall be made for biomass thermal production that occurs after June
66.2630, 2035, for those eligible biomass thermal producers under paragraph (a).
66.27(c) An eligible producer of biomass thermal production shall not transfer the
66.28producer's eligibility for payments under this section to a biomass thermal production
66.29facility at a different location.
66.30(d) A producer that ceases production for any reason is ineligible to receive
66.31payments under this section until the producer resumes production.
66.32(e) Biofuel production for which payment has been received under section 41A.16,
66.33and renewable chemical production for which payment has been received under section
66.3441A.17 , are not eligible for payment under this section.

67.1    Sec. 20. [41A.20] SIDING PRODUCTION INCENTIVE.
67.2    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
67.3this subdivision have the meanings given them.
67.4(b) "Commissioner" means the commissioner of agriculture.
67.5(c) "Forest resources" means raw wood logs and material primarily made up of
67.6cellulose, hemicellulose, or lignin, or a combination of those ingredients.
67.7    Subd. 2. Eligibility. (a) A facility eligible for payment under this section must
67.8source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles
67.9or less from the state border, raw materials may be sourced from within a 100-mile
67.10radius. Raw materials must be from forest resources. The facility must be located in
67.11Minnesota, must begin production at a specific location by June 30, 2025, and must not
67.12begin operating before July 1, 2017. Eligible facilities include existing companies and
67.13facilities that are adding siding production capacity, or retrofitting existing capacity, as
67.14well as new companies and facilities. Eligible siding production facilities must produce at
67.15least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year.
67.16(b) No payments shall be made for siding production that occurs after June 30, 2035,
67.17for those eligible producers under paragraph (a).
67.18(c) An eligible producer of siding shall not transfer the producer's eligibility for
67.19payments under this section to a facility at a different location.
67.20(d) A producer that ceases production for any reason is ineligible to receive
67.21payments under this section until the producer resumes production.
67.22    Subd. 3. Payment amounts; limits. (a) The commissioner shall make payments
67.23to eligible producers of siding. The amount of the payment for each eligible producer's
67.24annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of
67.25siding produced at a specific location for ten years after the start of production.
67.26(b) Total payments under this section to an eligible siding producer in a fiscal year
67.27may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch
67.28nominal basis of siding produced. Total payments under this section to all eligible siding
67.29producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding
67.30square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award
67.31payments on a first-come, first-served basis within the limits of available funding.
67.32(c) For purposes of this section, an entity that holds a controlling interest in more
67.33than one siding facility is considered a single eligible producer.
67.34    Subd. 4. Forest resources requirements. Forest resources that come from land
67.35parcels greater than 160 acres must be certified by the Forest Stewardship Council,
67.36Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from
68.1parcels of 160 acres or less and federal land must be harvested by a logger who has
68.2completed training from the Minnesota logger education program or the equivalent, and
68.3have a forest stewardship plan.
68.4    Subd. 5. Claims. (a) By the last day of October, January, April, and July, each
68.5eligible siding producer shall file a claim for payment for siding production during the
68.6preceding three calendar months. An eligible siding producer that files a claim under this
68.7subdivision shall include a statement of the eligible producer's total board feet of siding
68.8produced during the quarter covered by the claim. For each claim and statement of total
68.9board feet of siding filed under this subdivision, the board feet of siding produced must
68.10be examined by a certified public accounting firm with a valid permit to practice under
68.11chapter 326A, in accordance with Statements on Standards for Attestation Engagements
68.12established by the American Institute of Certified Public Accountants.
68.13(b) The commissioner must issue payments by November 15, February 15, May 15,
68.14and August 15. A separate payment must be made for each claim filed.
68.15    Subd. 6. Appropriation. A sum sufficient to make the payments required by this
68.16section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the
68.17general fund to the commissioner.

68.18    Sec. 21. Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a,
68.19is amended to read:
68.20    Subd. 2a. When prepared. Where there is potential for significant environmental
68.21effects resulting from any major governmental action, the action shall be preceded by a
68.22detailed environmental impact statement prepared by the responsible governmental unit.
68.23The environmental impact statement shall be an analytical rather than an encyclopedic
68.24document which describes the proposed action in detail, analyzes its significant
68.25environmental impacts, discusses appropriate alternatives to the proposed action and
68.26their impacts, and explores methods by which adverse environmental impacts of an
68.27action could be mitigated. The environmental impact statement shall also analyze those
68.28economic, employment, and sociological effects that cannot be avoided should the action
68.29be implemented. To ensure its use in the decision-making process, the environmental
68.30impact statement shall be prepared as early as practical in the formulation of an action.
68.31    (a) The board shall by rule establish categories of actions for which environmental
68.32impact statements and for which environmental assessment worksheets shall be prepared
68.33as well as categories of actions for which no environmental review is required under this
68.34section. A mandatory environmental assessment worksheet shall not be required for the
68.35expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
69.1(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
69.2biobutanol facility as defined in section 41A.105 41A.15, subdivision 1a 2d, based on
69.3the capacity of the expanded or converted facility to produce alcohol fuel, but must be
69.4required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other
69.5categories of actions for which environmental assessment worksheets must be prepared.
69.6The responsible governmental unit for an ethanol plant or biobutanol facility project for
69.7which an environmental assessment worksheet is prepared shall be the state agency with
69.8the greatest responsibility for supervising or approving the project as a whole.
69.9A mandatory environmental impact statement shall not be required for a facility
69.10or plant located outside the seven-county metropolitan area that produces less than
69.11125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less
69.12than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as
69.13defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined
69.14in section 41A.105 41A.15, subdivision 1a, clause (1) 2d; or a cellulosic biofuel facility.
69.15A facility or plant that only uses a cellulosic feedstock to produce chemical products for
69.16use by another facility as a feedstock shall not be considered a fuel conversion facility as
69.17used in rules adopted under this chapter.
69.18    (b) The responsible governmental unit shall promptly publish notice of the
69.19completion of an environmental assessment worksheet by publishing the notice in at least
69.20one newspaper of general circulation in the geographic area where the project is proposed,
69.21by posting the notice on a Web site that has been designated as the official publication site
69.22for publication of proceedings, public notices, and summaries of a political subdivision in
69.23which the project is proposed, or in any other manner determined by the board and shall
69.24provide copies of the environmental assessment worksheet to the board and its member
69.25agencies. Comments on the need for an environmental impact statement may be submitted
69.26to the responsible governmental unit during a 30-day period following publication of the
69.27notice that an environmental assessment worksheet has been completed. The responsible
69.28governmental unit's decision on the need for an environmental impact statement shall be
69.29based on the environmental assessment worksheet and the comments received during the
69.30comment period, and shall be made within 15 days after the close of the comment period.
69.31The board's chair may extend the 15-day period by not more than 15 additional days upon
69.32the request of the responsible governmental unit.
69.33    (c) An environmental assessment worksheet shall also be prepared for a proposed
69.34action whenever material evidence accompanying a petition by not less than 100
69.35individuals who reside or own property in the state, submitted before the proposed
69.36project has received final approval by the appropriate governmental units, demonstrates
70.1that, because of the nature or location of a proposed action, there may be potential for
70.2significant environmental effects. Petitions requesting the preparation of an environmental
70.3assessment worksheet shall be submitted to the board. The chair of the board shall
70.4determine the appropriate responsible governmental unit and forward the petition to it.
70.5A decision on the need for an environmental assessment worksheet shall be made by
70.6the responsible governmental unit within 15 days after the petition is received by the
70.7responsible governmental unit. The board's chair may extend the 15-day period by not
70.8more than 15 additional days upon request of the responsible governmental unit.
70.9    (d) Except in an environmentally sensitive location where Minnesota Rules, part
70.104410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
70.11review under this chapter and rules of the board, if:
70.12    (1) the proposed action is:
70.13    (i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
70.14    (ii) an expansion of an existing animal feedlot facility with a total cumulative
70.15capacity of less than 1,000 animal units;
70.16    (2) the application for the animal feedlot facility includes a written commitment by
70.17the proposer to design, construct, and operate the facility in full compliance with Pollution
70.18Control Agency feedlot rules; and
70.19    (3) the county board holds a public meeting for citizen input at least ten business
70.20days prior to the Pollution Control Agency or county issuing a feedlot permit for the
70.21animal feedlot facility unless another public meeting for citizen input has been held with
70.22regard to the feedlot facility to be permitted. The exemption in this paragraph is in
70.23addition to other exemptions provided under other law and rules of the board.
70.24    (e) The board may, prior to final approval of a proposed project, require preparation
70.25of an environmental assessment worksheet by a responsible governmental unit selected
70.26by the board for any action where environmental review under this section has not been
70.27specifically provided for by rule or otherwise initiated.
70.28    (f) An early and open process shall be utilized to limit the scope of the environmental
70.29impact statement to a discussion of those impacts, which, because of the nature or location
70.30of the project, have the potential for significant environmental effects. The same process
70.31shall be utilized to determine the form, content and level of detail of the statement as well
70.32as the alternatives which are appropriate for consideration in the statement. In addition,
70.33the permits which will be required for the proposed action shall be identified during the
70.34scoping process. Further, the process shall identify those permits for which information
70.35will be developed concurrently with the environmental impact statement. The board
70.36shall provide in its rules for the expeditious completion of the scoping process. The
71.1determinations reached in the process shall be incorporated into the order requiring the
71.2preparation of an environmental impact statement.
71.3    (g) The responsible governmental unit shall, to the extent practicable, avoid
71.4duplication and ensure coordination between state and federal environmental review
71.5and between environmental review and environmental permitting. Whenever practical,
71.6information needed by a governmental unit for making final decisions on permits
71.7or other actions required for a proposed project shall be developed in conjunction
71.8with the preparation of an environmental impact statement. When an environmental
71.9impact statement is prepared for a project requiring multiple permits for which two or
71.10more agencies' decision processes include either mandatory or discretionary hearings
71.11before a hearing officer prior to the agencies' decision on the permit, the agencies
71.12may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
71.13consolidated hearing process if requested by the proposer. All agencies having jurisdiction
71.14over a permit that is included in the consolidated hearing shall participate. The responsible
71.15governmental unit shall establish appropriate procedures for the consolidated hearing
71.16process, including procedures to ensure that the consolidated hearing process is consistent
71.17with the applicable requirements for each permit regarding the rights and duties of parties to
71.18the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.
71.19    (h) An environmental impact statement shall be prepared and its adequacy
71.20determined within 280 days after notice of its preparation unless the time is extended by
71.21consent of the parties or by the governor for good cause. The responsible governmental
71.22unit shall determine the adequacy of an environmental impact statement, unless within 60
71.23days after notice is published that an environmental impact statement will be prepared,
71.24the board chooses to determine the adequacy of an environmental impact statement. If an
71.25environmental impact statement is found to be inadequate, the responsible governmental
71.26unit shall have 60 days to prepare an adequate environmental impact statement.
71.27    (i) The proposer of a specific action may include in the information submitted to the
71.28responsible governmental unit a preliminary draft environmental impact statement under
71.29this section on that action for review, modification, and determination of completeness and
71.30adequacy by the responsible governmental unit. A preliminary draft environmental impact
71.31statement prepared by the project proposer and submitted to the responsible governmental
71.32unit shall identify or include as an appendix all studies and other sources of information
71.33used to substantiate the analysis contained in the preliminary draft environmental impact
71.34statement. The responsible governmental unit shall require additional studies, if needed,
71.35and obtain from the project proposer all additional studies and information necessary for
72.1the responsible governmental unit to perform its responsibility to review, modify, and
72.2determine the completeness and adequacy of the environmental impact statement.

72.3    Sec. 22. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
72.4is amended to read:
72.5
72.6
Subd. 4.Agriculture, Bioenergy, and
Bioproduct Advancement
14,993,000
19,010,000
72.7$4,483,000 the first year and $8,500,000 the
72.8second year are for transfer to the agriculture
72.9research, education, extension, and
72.10technology transfer account under Minnesota
72.11Statutes, section 41A.14, subdivision 3. The
72.12transfer in this paragraph includes money
72.13for plant breeders at the University of
72.14Minnesota for cultivated wild rice, potatoes,
72.15and grapes. Of the amount appropriated in
72.16this paragraph, at least $450,000 the second
72.17year is for transfer to the Board of Regents
72.18of the University of Minnesota for the
72.19cultivated wild rice breeding project at the
72.20North Central Research and Outreach Center
72.21to include a tenure track/research associate
72.22plant breeder. Of the amount appropriated
72.23in this paragraph, at least $350,000 the
72.24second year is for transfer to the Board of
72.25Regents of the University of Minnesota
72.26for potato breeding. Of these amounts, at
72.27least $600,000 each year is for agriculture
72.28rapid response the Minnesota Agricultural
72.29Experiment Station's agriculture rapid
72.30response fund under Minnesota Statutes,
72.31section 41A.14, subdivision 1, clause (2). Of
72.32the amount appropriated in this paragraph,
72.33$1,000,000 each year is for transfer to
72.34the Board of Regents of the University of
72.35Minnesota for research to determine (1) what
73.1is causing avian influenza, (2) why some
73.2fowl are more susceptible, and (3) prevention
73.3measures that can be taken. Of the amount
73.4appropriated in this paragraph, $2,000,000
73.5each year is for grants to the Minnesota
73.6Agriculture Education Leadership Council
73.7to enhance agricultural education with
73.8priority given to Farm Business Management
73.9challenge grants. The commissioner shall
73.10transfer the remaining grant funds in this
73.11appropriation each year to the Board of
73.12Regents of the University of Minnesota for
73.13purposes of Minnesota Statutes, section
73.1441A.14, subdivision 1, clause (1), and subject
73.15to Minnesota Statutes, section 41A.14,
73.16subdivision 2.
73.17To the extent practicable, funds expended
73.18under Minnesota Statutes, section 41A.14,
73.19subdivision 1
, clauses (1) and (2), must
73.20supplement and not supplant existing sources
73.21and levels of funding. The commissioner may
73.22use up to 4.5 percent of this appropriation
73.23for costs incurred to administer the program.
73.24Any unencumbered balance does not cancel
73.25at the end of the first year and is available for
73.26the second year. Notwithstanding Minnesota
73.27Statutes, section 16A.28, the appropriations
73.28encumbered under contract on or before June
73.2930, 2017, for agricultural growth, research,
73.30and innovation grants are available until June
73.3130, 2019.
73.32$10,235,000 the first year and $10,235,000
73.33the second year are for the agricultural
73.34growth, research, and innovation program
73.35in Minnesota Statutes, section 41A.12. No
73.36later than February 1, 2016, and February
74.11, 2017, the commissioner must report to
74.2the legislative committees with jurisdiction
74.3over agriculture policy and finance regarding
74.4the commissioner's accomplishments
74.5and anticipated accomplishments in
74.6the following areas: facilitating the
74.7start-up, modernization, or expansion of
74.8livestock operations including beginning
74.9and transitioning livestock operations;
74.10developing new markets for Minnesota
74.11farmers by providing more fruits, vegetables,
74.12meat, grain, and dairy for Minnesota school
74.13children; assisting value-added agricultural
74.14businesses to begin or expand, access new
74.15markets, or diversify products; developing
74.16urban agriculture; facilitating the start-up,
74.17modernization, or expansion of other
74.18beginning and transitioning farms including
74.19loans under Minnesota Statutes, section
74.2041B.056 ; sustainable agriculture on farm
74.21research and demonstration; development or
74.22expansion of food hubs and other alternative
74.23community-based food distribution systems;
74.24and research on bioenergy, biobased content,
74.25or biobased formulated products and other
74.26renewable energy development. The
74.27commissioner may use up to 4.5 percent
74.28of this appropriation for costs incurred to
74.29administer the program. Any unencumbered
74.30balance does not cancel at the end of the first
74.31year and is available for the second year.
74.32Notwithstanding Minnesota Statutes, section
74.3316A.28 , the appropriations encumbered
74.34under contract on or before June 30, 2017, for
74.35agricultural growth, research, and innovation
74.36grants are available until June 30, 2019.
75.1The commissioner may use funds
75.2appropriated for the agricultural growth,
75.3research, and innovation program as provided
75.4in this paragraph. The commissioner may
75.5award grants to owners of Minnesota
75.6facilities producing bioenergy, biobased
75.7content, or a biobased formulated product;
75.8to organizations that provide for on-station,
75.9on-farm field scale research and outreach to
75.10develop and test the agronomic and economic
75.11requirements of diverse strands of prairie
75.12plants and other perennials for bioenergy
75.13systems; or to certain nongovernmental
75.14entities. For the purposes of this paragraph,
75.15"bioenergy" includes transportation fuels
75.16derived from cellulosic material, as well as
75.17the generation of energy for commercial heat,
75.18industrial process heat, or electrical power
75.19from cellulosic materials via gasification or
75.20other processes. Grants are limited to 50
75.21percent of the cost of research, technical
75.22assistance, or equipment related to bioenergy,
75.23biobased content, or biobased formulated
75.24product production or $500,000, whichever
75.25is less. Grants to nongovernmental entities
75.26for the development of business plans and
75.27structures related to community ownership
75.28of eligible bioenergy facilities together may
75.29not exceed $150,000. The commissioner
75.30shall make a good-faith effort to select
75.31projects that have merit and, when taken
75.32together, represent a variety of bioenergy
75.33technologies, biomass feedstocks, and
75.34geographic regions of the state. Projects
75.35must have a qualified engineer provide
75.36certification on the technology and fuel
76.1source. Grantees must provide reports at the
76.2request of the commissioner.
76.3Of the amount appropriated for the
76.4agricultural growth, research, and innovation
76.5program in this subdivision, $1,000,000 the
76.6first year and $1,000,000 the second year
76.7are for distribution in equal amounts to each
76.8of the state's county fairs to preserve and
76.9promote Minnesota agriculture.
76.10Of the amount appropriated for the
76.11agricultural growth, research, and innovation
76.12program in this subdivision, $500,000 in
76.13fiscal year 2016 and $1,500,000 in fiscal
76.14year 2017 are for incentive payments
76.15under Minnesota Statutes, sections 41A.16,
76.1641A.17 , and 41A.18. If the appropriation
76.17exceeds the total amount for which all
76.18producers are eligible in a fiscal year, the
76.19balance of the appropriation is available
76.20to the commissioner for the agricultural
76.21growth, research, and innovation program.
76.22Notwithstanding Minnesota Statutes,
76.23section 16A.28, the first year appropriation
76.24is available until June 30, 2017, and the
76.25second year appropriation is available until
76.26June 30, 2018. The commissioner may use
76.27up to 4.5 percent of the appropriation for
76.28administration of the incentive payment
76.29programs.
76.30Of the amount appropriated for the
76.31agricultural growth, research, and innovation
76.32program in this subdivision, $250,000
76.33the first year is for grants to communities
76.34to develop or expand food hubs and
76.35other alternative community-based food
77.1distribution systems. Of this amount,
77.2$50,000 is for the commissioner to consult
77.3with existing food hubs, alternative
77.4community-based food distribution systems,
77.5and University of Minnesota Extension
77.6to identify best practices for use by other
77.7Minnesota communities. No later than
77.8December 15, 2015, the commissioner must
77.9report to the legislative committees with
77.10jurisdiction over agriculture and health
77.11regarding the status of emerging alternative
77.12community-based food distribution systems
77.13in the state along with recommendations
77.14to eliminate any barriers to success. Any
77.15unencumbered balance does not cancel at the
77.16end of the first year and is available for the
77.17second year. This is a onetime appropriation.
77.18$250,000 the first year and $250,000 the
77.19second year are for grants that enable
77.20retail petroleum dispensers to dispense
77.21biofuels to the public in accordance with the
77.22biofuel replacement goals established under
77.23Minnesota Statutes, section 239.7911. A
77.24retail petroleum dispenser selling petroleum
77.25for use in spark ignition engines for vehicle
77.26model years after 2000 is eligible for grant
77.27money under this paragraph if the retail
77.28petroleum dispenser has no more than 15
77.29retail petroleum dispensing sites and each
77.30site is located in Minnesota. The grant
77.31money received under this paragraph must
77.32be used for the installation of appropriate
77.33technology that uses fuel dispensing
77.34equipment appropriate for at least one fuel
77.35dispensing site to dispense gasoline that is
77.36blended with 15 percent of agriculturally
78.1derived, denatured ethanol, by volume, and
78.2appropriate technical assistance related to
78.3the installation. A grant award must not
78.4exceed 85 percent of the cost of the technical
78.5assistance and appropriate technology,
78.6including remetering of and retrofits for
78.7retail petroleum dispensers and replacement
78.8of petroleum dispenser projects. The
78.9commissioner may use up to $35,000 of this
78.10appropriation for administrative expenses.
78.11The commissioner shall cooperate with
78.12biofuel stakeholders in the implementation
78.13of the grant program. The commissioner
78.14must report to the legislative committees
78.15with jurisdiction over agriculture policy and
78.16finance by February 1 each year, detailing
78.17the number of grants awarded under this
78.18paragraph and the projected effect of the grant
78.19program on meeting the biofuel replacement
78.20goals under Minnesota Statutes, section
78.21239.7911 . These are onetime appropriations.
78.22$25,000 the first year and $25,000 the second
78.23year are for grants to the Southern Minnesota
78.24Initiative Foundation to promote local foods
78.25through an annual event that raises public
78.26awareness of local foods and connects local
78.27food producers and processors with potential
78.28buyers.
78.29EFFECTIVE DATE.This section is effective the day following final enactment.

78.30    Sec. 23. Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to
78.31read:
78.32    Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS
78.33AND TRANSFERS.
79.1(a) $3,619,000 $619,000 is appropriated from the general fund in fiscal year 2016 to
79.2the commissioner of agriculture for avian influenza emergency response activities. The
79.3commissioner may use money appropriated under this paragraph to purchase necessary
79.4euthanasia and composting equipment and to reimburse costs incurred by local units of
79.5government directly related to avian influenza emergency response activities that are not
79.6eligible for federal reimbursement. This appropriation is available the day following final
79.7enactment until June 30, 2017.
79.8(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
79.9Board of Animal Health for avian influenza emergency response activities. The Board
79.10may use money appropriated under this paragraph to purchase necessary euthanasia and
79.11composting equipment and to retain trained staff. This appropriation is available the day
79.12following final enactment until June 30, 2017.
79.13(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
79.14commissioner of health for avian influenza emergency response activities. This
79.15appropriation is available the day following final enactment until June 30, 2017.
79.16(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
79.17commissioner of natural resources for sampling wild animals to detect and monitor the
79.18avian influenza virus. This appropriation may also be used to conduct serology sampling,
79.19in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
79.20Chair in Avian Health, from birds within a control zone and outside of a control zone.
79.21This appropriation is available the day following final enactment until June 30, 2017.
79.22(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
79.23commissioner of public safety to operate the State Emergency Operation Center in
79.24coordination with the statewide avian influenza response activities. Appropriations
79.25under this paragraph may also be used to support a staff person at the state's agricultural
79.26incident command post in Willmar. This appropriation is available the day following final
79.27enactment until June 30, 2017.
79.28(f) The commissioner of management and budget may transfer unexpended balances
79.29from the appropriations in this section to any state agency for operating expenses related
79.30to avian influenza emergency response activities. The commissioner of management and
79.31budget must report each transfer to the chairs and ranking minority members of the senate
79.32Committee on Finance and the house of representatives Committee on Ways and Means.
79.33(g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
79.34section 17, no later than September 30, 2015, the commissioner of management and
79.35budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
79.36fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
80.1subdivision 6
. This amount is available for avian influenza emergency response activities
80.2as provided in Laws 2015, chapter 65, article 1, section 18.
80.3EFFECTIVE DATE.This section is effective the day following final enactment.

80.4ARTICLE 4
80.5NATURAL RESOURCES

80.6
Section 1. APPROPRIATIONS.
80.7The sums shown in the columns marked "Appropriations" are added to the
80.8appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
80.9agencies and for the purposes specified in this article. The appropriations are from the
80.10general fund, or another named fund, and are available for the fiscal year indicated for
80.11each purpose. The figures "2016" and "2017" used in this article mean that the addition
80.12to the appropriations listed under them are available for the fiscal year ending June 30,
80.132016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
80.14year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
80.15following final enactment.
80.16
APPROPRIATIONS
80.17
Available for the Year
80.18
Ending June 30
80.19
2016
2017

80.20
Sec. 2. NATURAL RESOURCES
80.21
Subdivision 1.Total Appropriation
$
2,269,000
$
14,816,000
80.22
Appropriations by Fund
80.23
2016
2017
80.24
General
1,599,000
12,386,000
80.25
Natural Resources
-0-
2,320,000
80.26
Game and Fish
670,000
110,000
80.27The amounts that may be spent for each
80.28purpose are specified in the following
80.29subdivisions.
80.30
Subd. 2.Lands and Minerals Management
-0-
600,000
80.31$400,000 the second year is for transfer to
80.32the school trust lands director to initiate the
80.33private sale of surplus school trust lands
81.1identified according to Minnesota Statutes,
81.2section 92.82, paragraph (d), including, but
81.3not limited to, valuation expenses, legal
81.4fees, and transactional staff costs. This
81.5appropriation must not be used to extinguish
81.6school trust interests in school trust lands.
81.7This is a onetime appropriation.
81.8$200,000 the second year is to initiate,
81.9in consultation with the school trust
81.10lands director, a valuation process
81.11and representative valuations for the
81.12compensation of school trust lands required
81.13by Minnesota Statutes, section 84.027,
81.14subdivision 18, paragraph (b). By January 15,
81.152017, the commissioner must submit a report
81.16to the chairs and ranking minority members
81.17of the house of representatives and senate
81.18committees and divisions with jurisdiction
81.19over environment and natural resources
81.20and education policy and finance on the
81.21Department of Natural Resources' progress in
81.22developing a valuation process, a description
81.23of the process to identify representative
81.24sample valuations, and the results of the
81.25representative valuations of school trust
81.26lands identified for compensation. This is a
81.27onetime appropriation.
81.28
Subd. 3.Ecological and Water Resources
-0-
1,637,000
81.29$187,000 the second year is for a grant to the
81.30Middle-Snake-Tamarac Rivers Watershed
81.31District to match equal funds from the North
81.32Dakota State Water Commission and North
81.33Dakota water boards to conduct hydraulic
81.34modeling of alternative floodway options
81.35for the reach including and upstream and
82.1downstream of the Minnesota and North
82.2Dakota agricultural levies in the vicinity
82.3of Oslo, Minnesota. The modeling must
82.4include evaluating removal of floodway
82.5flow obstructions, channel obstructions,
82.6transportation access, and equalization of
82.7agricultural levy protection. The project must
82.8be conducted in partnership with the border
82.9township association group representing four
82.10Minnesota townships and the city of Oslo
82.11and the three adjacent townships in North
82.12Dakota. This is a onetime appropriation and
82.13is available until June 30, 2018.
82.14$1,000,000 the second year is for an impact
82.15study of irrigation on the Pineland Sands
82.16aquifer. This is a onetime appropriation and
82.17is available until June 30, 2019.
82.18$250,000 the second year is for maintenance
82.19of the Little Stone Lake Dam. St. Louis
82.20County shall transfer to the state of Minnesota
82.21maintenance and control of the Little Stone
82.22Lake Dam that is described as: DAM ID
82.23MN00373. This is a onetime appropriation.
82.24$200,000 the second year is for a grant to
82.25the Koronis Lake Association for purposes
82.26of removing and preventing aquatic invasive
82.27species. This is a onetime appropriation.
82.28
Subd. 4.Forest Management
-0-
3,100,000
82.29$600,000 the second year is for a pilot
82.30program to increase forest road maintenance.
82.31The commissioner shall use the money to
82.32perform needed maintenance on forest roads
82.33in conjunction with timber sales. Optional
82.34forest road maintenance contracts may be
82.35offered to successful purchasers of state
83.1timber sales at the commissioner's discretion.
83.2This is a onetime appropriation.
83.3$2,500,000 the second year is for private
83.4forest management assistance. The agency
83.5base is increased by $2,028,000 in fiscal year
83.62018 and thereafter.
83.7
Subd. 5.Parks and Trails Management
-0-
5,499,000
83.8
Appropriations by Fund
83.9
2016
2017
83.10
General
-0-
3,179,000
83.11
Natural Resources
-0-
2,320,000
83.12$2,800,000 the second year is a onetime
83.13appropriation.
83.14$2,300,000 the second year is from the state
83.15parks account in the natural resources fund.
83.16Of this amount, $1,300,000 is onetime. In
83.17fiscal year 2017, the level of service and
83.18hours at all state parks and recreation areas
83.19must be maintained at fiscal year 2015 levels.
83.20$20,000 the second year is from the natural
83.21resources fund to design and erect signs
83.22marking the David K. Dill trail designated in
83.23this act. Of this amount, $10,000 is from the
83.24snowmobile trails and enforcement account
83.25and $10,000 is from the all-terrain vehicle
83.26account. This is a onetime appropriation.
83.27$100,000 the second year is for the
83.28improvement of the infrastructure for
83.29sanitary sewer service at the Woodenfrog
83.30Campground in Kabetogama State Forest.
83.31This is a onetime appropriation.
83.32$250,000 the second year is for a grant to
83.33Douglas County to acquire land, including a
83.34ski area, for use as a regional park. The grant
83.35must be matched by other state or nonstate
84.1sources. This is a onetime appropriation and
84.2is available until June 30, 2019.
84.3$29,000 the second year is for computer
84.4programming related to the transfer-on-death
84.5title changes for watercraft. This is a onetime
84.6appropriation.
84.7
Subd. 6.Fish and Wildlife Management
-0-
50,000
84.8$50,000 the second year is from the game
84.9and fish fund for fish virus surveillance,
84.10including fish testing in high-risk waters used
84.11for bait production, to ensure the availability
84.12of safe bait. This is a onetime appropriation.
84.13
Subd. 7.Enforcement
670,000
-0-
84.14$670,000 the first year is from the game and
84.15fish fund for aviation services. This is a
84.16onetime appropriation.
84.17
Subd. 8.Operations Support
1,599,000
3,930,000
84.18
Appropriations by Fund
84.19
2016
2017
84.20
General
1,599,000
3,870,000
84.21
Game and Fish
-0-
60,000
84.22$1,599,000 the first year and $2,370,000 the
84.23second year are for legal costs related to the
84.24NorthMet mining project. This is a onetime
84.25appropriation and is available until June 30,
84.262019.
84.27$1,500,000 the second year is for a grant to
84.28Wolf Ridge Environmental Learning Center
84.29to construct a new dormitory, renovate an old
84.30dormitory, construct a maintenance building,
84.31and construct a small classroom building
84.32with parking. The grant is not available
84.33until the commissioner of management
84.34and budget determines that an amount
85.1sufficient to complete the project is available
85.2from nonstate sources. This is a onetime
85.3appropriation and is available until June 30,
85.42019.
85.5$60,000 the second year is from the
85.6heritage enhancement account for the
85.7department's Southeast Asian unit to
85.8conduct outreach efforts to the Southeast
85.9Asian community in Minnesota, including
85.10outreach efforts to refugees from Burma, to
85.11encourage participation in outdoor education
85.12opportunities and activities. This is a onetime
85.13appropriation.

85.14    Sec. 3. Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:
85.15    Subd. 2. License required; exception exemptions. (a) Except as provided in
85.16paragraph (b) this subdivision, a person may not harvest, buy, sell, transport, or possess
85.17aquatic plants without a license required under this chapter. A license shall be issued in
85.18the same manner as provided under the game and fish laws.
85.19(b) A resident under the age of 18 years may harvest wild rice without a license, if
85.20accompanied by a person with a wild rice license.
85.21(c) Tribal band members who possess a valid tribal identification card may harvest
85.22wild rice without a license under this section.

85.23    Sec. 4. Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:
85.24    Subd. 2. Exemptions. Registration is not required for an off-road vehicle that is:
85.25(1) owned and used by the United States, an Indian tribal government, the state,
85.26another state, or a political subdivision; or
85.27(2) registered in another state or country and has not been in this state for more than
85.2830 consecutive days; or
85.29(3) operated with a valid state trail pass according to section 84.8035.
85.30EFFECTIVE DATE.This section is effective January 1, 2017.

85.31    Sec. 5. Minnesota Statutes 2014, section 84.8035, is amended to read:
85.3284.8035 NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.
86.1    Subdivision 1. Pass required; fee. (a) Except as provided under paragraph (c), a
86.2nonresident person may not operate an off-road vehicle on a state or grant-in-aid off-road
86.3vehicle trail or use area unless the vehicle displays a nonresident an off-road vehicle state
86.4trail pass sticker issued according to this section. The pass must be viewable by a peace
86.5officer, a conservation officer, or an employee designated under section 84.0835.
86.6    (b) The fee for an annual pass is $20. The pass is valid from January 1 through
86.7December 31. The fee for a three-year pass is $30. The commissioner of natural resources
86.8shall issue a pass upon application and payment of the fee. Fees collected under this
86.9section, except for the issuing fee for licensing agents, shall be deposited in the state
86.10treasury and credited to the off-road vehicle account in the natural resources fund and,
86.11except for the electronic licensing system commission established by the commissioner
86.12under section 84.027, subdivision 15, must be used for grants-in-aid to counties and
86.13municipalities for off-road vehicle organizations to construct and maintain off-road
86.14vehicle trails and use areas.
86.15    (c) A nonresident An off-road vehicle state trail pass is not required for:
86.16    (1) an off-road vehicle that is owned and used by the United States, another state,
86.17or a political subdivision thereof that is exempt from registration under section 84.798,
86.18subdivision 2;
86.19    (2) a person operating an off-road vehicle only on the portion of a trail that is owned
86.20by the person or the person's spouse, child, or parent; or
86.21    (3) a nonresident person operating an off-road vehicle that is registered according
86.22to section 84.798.
86.23(d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The
86.24nonresident pass is valid from January 1 through December 31. The fee for a nonresident
86.25three-year pass is $30.
86.26(e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is
86.27valid for 30 consecutive days after the date of issuance.
86.28    Subd. 2. License agents. The commissioner may appoint agents to issue and
86.29sell nonresident off-road vehicle state trail passes. The commissioner may revoke the
86.30appointment of an agent at any time. The commissioner may adopt additional rules as
86.31provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
86.32by the commissioner for accounting and handling of passes pursuant to section 97A.485,
86.33subdivision 11
. An agent shall promptly deposit and remit all money received from the
86.34sale of the passes, exclusive of the issuing fee, to the commissioner.
86.35    Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
86.36nonresident off-road vehicle state trail passes. The commissioner shall also make the
87.1passes available through the electronic licensing system established under section 84.027,
87.2subdivision 15.
87.3    Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
87.4shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
87.5passes issued by the commissioner shall be deposited in the off-road vehicle account in the
87.6natural resources fund and retained for the operation of the electronic licensing system.
87.7    Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
87.8pass to persons whose pass is lost or destroyed using the process established under section
87.997A.405, subdivision 3 , and rules adopted thereunder. The fee for a duplicate nonresident
87.10off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.
87.11EFFECTIVE DATE.This section is effective January 1, 2017.

87.12    Sec. 6. Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:
87.13    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
87.14Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
87.15Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
87.16McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
87.17Itasca County and there terminate;
87.18(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
87.19and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
87.20Marais in Cook County, thence northeasterly to the international boundary in the vicinity
87.21of the north shore of Lake Superior, and there terminate;
87.22(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
87.23in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
87.24to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
87.25Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
87.26Louis County to International Falls in Koochiching County, and there terminate the David
87.27K. Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and
87.28extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with
87.29the Taconite Trail west of Tower; then the David K. Dill/Taconite Trail continues easterly
87.30to Ely in St. Louis County; then the David K. Dill/Tomahawk Trail extends southeasterly,
87.31outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and
87.32there terminates at the intersection with the C. J. Ramstad/Northshore Trail; and
87.33(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and
87.34extend southerly to Chengwatana State Forest in Pine County.
87.35(b) The trails shall be developed primarily for riding and hiking.
88.1(c) In addition to the authority granted in subdivision 1, lands and interests in lands
88.2for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
88.3any land or interest in land by eminent domain the commissioner of administration shall
88.4obtain the approval of the governor. The governor shall consult with the Legislative
88.5Advisory Commission before granting approval. Recommendations of the Legislative
88.6Advisory Commission shall be advisory only. Failure or refusal of the commission to
88.7make a recommendation shall be deemed a negative recommendation.

88.8    Sec. 7. [86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT.
88.9    Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of a
88.10watercraft may have the watercraft titled in transfer-on-death or TOD form by including in
88.11the application for the certificate of title a designation of a beneficiary or beneficiaries to
88.12whom the watercraft must be transferred on death of the owner or the last survivor of joint
88.13owners with rights of survivorship, subject to the rights of secured parties.
88.14    Subd. 2. Designation of beneficiary. A watercraft is registered in transfer-on-death
88.15form by designating on the certificate of title the name of the owner and the names
88.16of joint owners with identification of rights of survivorship, followed by the words
88.17"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may
88.18be used instead of "transfer-on-death." A title in transfer-on-death form is not required
88.19to be supported by consideration, and the certificate of title in which the designation
88.20is made is not required to be delivered to the beneficiary or beneficiaries in order for
88.21the designation to be effective.
88.22    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries
88.23have no interest in the watercraft until the death of the owner or the last survivor of joint
88.24owners with rights of survivorship. A beneficiary designation may be changed at any time
88.25by the owner or by all joint owners with rights of survivorship, without the consent of the
88.26beneficiary or beneficiaries, by filing an application for a new certificate of title.
88.27    Subd. 4. Vesting of ownership in beneficiary. Ownership of a watercraft titled in
88.28transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
88.29the owner or the last of the joint owners with rights of survivorship, subject to the rights of
88.30secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
88.31may apply for a new certificate of title to the watercraft upon submitting a certified death
88.32record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries
88.33survive the owner of a watercraft, the watercraft must be included in the probate estate
88.34of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or
88.35beneficiaries is not a testamentary transfer.
89.1    Subd. 5. Rights of creditors. (a) This section does not limit the rights of any
89.2secured party or creditor of the owner of a watercraft against a transfer-on-death
89.3beneficiary or beneficiaries.
89.4(b) The state or a county agency with a claim or lien authorized by section 246.53,
89.5256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim
89.6or lien under those sections continues to apply against the designated beneficiary or
89.7beneficiaries after the transfer under this section if other assets of the deceased owner's
89.8estate are insufficient to pay the amount of the claim. The claim or lien continues to apply
89.9to the watercraft until the designated beneficiary sells or transfers it to a person against
89.10whom the claim or lien does not apply and who did not have actual notice or knowledge
89.11of the claim or lien.

89.12    Sec. 8. Minnesota Statutes 2014, section 89.0385, is amended to read:
89.1389.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
89.14CERTIFICATION.
89.15(a) The commissioner shall certify the total costs incurred for forest management,
89.16forest improvement, and road improvement on state-managed lands during each fiscal
89.17year. The commissioner shall distribute forest management receipts credited to various
89.18accounts according to this section.
89.19(b) The amount of the certified costs incurred for forest management activities on
89.20state lands shall be transferred from the account where receipts are deposited to the forest
89.21management investment account in the natural resources fund, except for those costs
89.22certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
89.23revenue reports, throughout the fiscal year, with final certification and reconciliation after
89.24each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.
89.25(c) The amount of the certified costs incurred for forest management activities
89.26on nonstate lands managed under a good neighbor or joint powers agreement must be
89.27transferred from the account where receipts are deposited to the forest management
89.28investment account in the natural resources fund. Transfers for costs incurred may occur
89.29after projects or timber permits are finalized.

89.30    Sec. 9. Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:
89.31    Subd. 3. Expiration. The committee expires June 30, 2016 2026.

89.32    Sec. 10. Minnesota Statutes 2014, section 93.2236, is amended to read:
89.3393.2236 MINERALS MANAGEMENT ACCOUNT.
90.1(a) The minerals management account is created as an account in the natural
90.2resources fund. Interest earned on money in the account accrues to the account. Money in
90.3the account may be spent or distributed only as provided in paragraphs (b) and (c).
90.4(b) If the balance in the minerals management account exceeds $3,000,000 on March
90.531, June 30, September 30, or December 31, the amount exceeding $3,000,000 must
90.6be distributed to the permanent school fund, the permanent university fund, and taxing
90.7districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed
90.8to each fund must be in the same proportion as the total mineral lease revenue received
90.9in the previous biennium from school trust lands, university lands, and lands held by the
90.10state in trust for taxing districts.
90.11(c) Subject to appropriation by the legislature, money in the minerals management
90.12account may be spent by the commissioner of natural resources for mineral resource
90.13management and projects to enhance future mineral income and promote new mineral
90.14resource opportunities.

90.15    Sec. 11. Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:
90.16    Subd. 2. Classes of land; definitions. (a) The classes of public land that may be
90.17involved in an expedited exchange under this section are:
90.18    (1) Class 1 land, which for the purpose of this section is Class A land as defined in
90.19section 94.342, subdivision 1, except for:;
90.20    (i) school trust land as defined in section 92.025; and
90.21    (ii) university land granted to the state by acts of Congress;
90.22    (2) Class 2 land, which for the purpose of this section is Class B land as defined in
90.23section 94.342, subdivision 2; and
90.24    (3) Class 3 land, which for the purpose of this section is all land owned in fee by
90.25a governmental subdivision of the state.
90.26(b) "School trust land" has the meaning given in section 92.025.
90.27(c) "University land" means land granted to the state by acts of Congress for
90.28university purposes.

90.29    Sec. 12. Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:
90.30    Subd. 3. Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land,
90.31the value of all the land shall be determined by the commissioner of natural resources,
90.32but the county board must approve the value determined for the Class 2 land, and the
90.33governmental subdivision of the state must approve the value determined for the Class 3
90.34land. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be
91.1determined by the county board of the county in which the land lies, but the governmental
91.2subdivision of the state must approve the value determined for the Class 3 land.
91.3    (b) To determine the value of the land, the parties to the exchange may either (1)
91.4cause the land to be appraised, utilize the valuation process provided under section
91.584.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker or
91.6(2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most
91.7current township or county assessment schedules for similar land types from the county
91.8assessor of the county in which the lands are located. Merchantable timber value must
91.9should be determined and considered in finalizing valuation of the lands.
91.10    (b) All (c) Except for school trust lands and university lands, the lands exchanged
91.11under this section shall be exchanged only for lands of at least substantially equal value.
91.12For the purposes of this subdivision, "substantially equal value" has the meaning given
91.13under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the
91.14lands, other than school trust lands or university lands, are of substantially equal value but
91.15are not of the same value.
91.16(d) School trust lands and university lands exchanged under this section must be
91.17exchanged only for lands of equal or greater value.

91.18    Sec. 13. Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:
91.19    Subd. 7. Reversionary interest; Mineral and water power rights and other
91.20reservations. (a) All deeds conveying land given in an expedited land exchange under
91.21this section shall include a reverter that provides that title to the land automatically reverts
91.22to the conveying governmental unit if:
91.23    (1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
91.24the land within 40 years of the date of the deed conveying ownership; and
91.25    (2) there is no prior written approval for the transfer from the conveying
91.26governmental unit. The authority for granting approval is the commissioner of natural
91.27resources for former Class 1 land, the county board for former Class 2 land, and the
91.28governing body for former Class 3 land.
91.29    (b) Class 1 land given in exchange is subject to the reservation provisions of section
91.3094.343, subdivision 4 . Class 2 land given in exchange is subject to the reservation
91.31provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
91.32to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

91.33    Sec. 14. Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:
92.1    Subd. 2. Personal possession. (a) A person acting under a license or traveling from
92.2an area where a licensed activity was performed must have in personal possession either:
92.3(1) the proper license, if the license has been issued to and received by the person; (2) a
92.4driver's license or Minnesota identification card issued under section 171.07, subdivision
92.519, that has a valid written designation of the proper lifetime license; or (2) (3) the proper
92.6license identification number or stamp validation, if the license has been sold to the person
92.7by electronic means but the actual license has not been issued and received.
92.8    (b) If possession of a license or a license identification number is required, a person
92.9must exhibit, as requested by a conservation officer or peace officer, either: (1) the
92.10proper license if the license has been issued to and received by the person; (2) a driver's
92.11license or Minnesota identification card issued under section 171.07, subdivision 19,
92.12that has a valid written designation of the proper lifetime license; or (2) (3) the proper
92.13license identification number or stamp validation and a valid state driver's license, state
92.14identification card, or other form of identification provided by the commissioner, if the
92.15license has been sold to the person by electronic means but the actual license has not been
92.16issued and received. A person charged with violating the license possession requirement
92.17shall not be convicted if the person produces in court or the office of the arresting officer,
92.18the actual license previously issued to that person, which was valid at the time of arrest,
92.19or satisfactory proof that at the time of the arrest the person was validly licensed. Upon
92.20request of a conservation officer or peace officer, a licensee shall write the licensee's name
92.21in the presence of the officer to determine the identity of the licensee.
92.22    (c) Except as provided in paragraph (a), clause (2), if the actual license has been
92.23issued and received, a receipt for license fees, a copy of a license, or evidence showing the
92.24issuance of a license, including the license identification number or stamp validation, does
92.25not entitle a licensee to exercise the rights or privileges conferred by a license.
92.26    (d) A license issued electronically and not immediately provided to the licensee shall
92.27be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory
92.28waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee
92.29after purchase of a stamp validation only if the licensee pays an additional fee that covers
92.30the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be
92.31purchased for a fee that covers the costs of producing and mailing the pictorial stamp.
92.32Notwithstanding section 16A.1283, the commissioner may, by written order published in
92.33the State Register, establish fees for providing the pictorial stamps. The fees must be set in
92.34an amount that does not recover significantly more or less than the cost of producing and
92.35mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14,
92.36and section 14.386 does not apply.
93.1EFFECTIVE DATE.This section is effective January 1, 2018, or on the date
93.2the Department of Public Safety implements the Minnesota Licensing and Registration
93.3System (MNLARS), whichever occurs first.

93.4    Sec. 15. Minnesota Statutes 2014, section 97A.465, is amended by adding a
93.5subdivision to read:
93.6    Subd. 8. Nonresident members of National Guard. A nonresident that is a
93.7member of the state's National Guard may obtain a resident license to take fish or game.
93.8This subdivision does not apply to the taking of moose or elk.

93.9    Sec. 16. Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision
93.10to read:
93.11    Subd. 19. Resident lifetime game and fish license. (a) The department shall
93.12maintain in its records information transmitted electronically from the commissioner of
93.13natural resources identifying each person to whom the commissioner has issued a resident
93.14lifetime license under section 97A.473. The records transmitted from the Department of
93.15Natural Resources must contain:
93.16(1) the full name and date of birth as required for the driver's license or identification
93.17card;
93.18(2) the category of lifetime license issued under section 97A.473; and
93.19(3) the Department of Natural Resources lifetime license number.
93.20Records that are not matched to a driver's license or identification card record may
93.21be deleted after seven years.
93.22(b) After receiving information under paragraph (a) that a person has received
93.23a lifetime license, the department shall include, on all drivers' licenses or Minnesota
93.24identification cards subsequently issued to the person, a written designation that the person
93.25has a lifetime license, the category of the lifetime license issued, and the Department of
93.26Natural Resources lifetime license number.
93.27(c) If a person who has received a lifetime license under section 97A.473 applies
93.28for a driver's license or Minnesota identification card before that information has been
93.29transmitted to the department, the department may accept a copy of the license issued
93.30under section 97A.473 as proof of its issuance and shall then follow the procedures in
93.31paragraph (b).
93.32EFFECTIVE DATE.This section is effective January 1, 2018, or on the date
93.33the Department of Public Safety implements the Minnesota Licensing and Registration
93.34System (MNLARS), whichever occurs first.

94.1    Sec. 17. Laws 2000, chapter 486, section 4, as amended by Laws 2001, chapter 182,
94.2section 2, is amended to read:
94.3    Sec. 4. [BOATHOUSE LEASES; SOUDAN UNDERGROUND MINE STATE
94.4PARK.]
94.5    (a) In 1965, United States Steel Corporation conveyed land to the state of Minnesota
94.6that was included in the Soudan underground mine state park, with certain lands at Stuntz
94.7Bay subject to leases outstanding for employee boathouse sites.
94.8    (b) Notwithstanding Minnesota Statutes, sections 85.011, 85.012, subdivision 1, and
94.986A.05, subdivision 2 , upon the expiration of a boathouse lease described under paragraph
94.10(a), the commissioner of natural resources shall offer a new lease to the party in possession
94.11at the time of lease expiration, or, if there has been a miscellaneous lease issued by the
94.12Department of Natural Resources due to expiration of a lease described under paragraph
94.13(a), upon its expiration to the lessee. The new lease shall be issued under the terms and
94.14conditions of Minnesota Statutes, section 92.50, with the following limitations:
94.15    (1) the term of the lease shall be for the lifetime of the party being issued a renewed
94.16lease and, if transferred, for the lifetime of the party to whom the lease is transferred;
94.17    (2) the new lease shall provide that the lease may be transferred only once and the
94.18transfer must be to a person within the third degree of kindred or first cousin according to
94.19civil law; and
94.20    (3) the commissioner shall limit the number of lessees per lease to no more than two
94.21persons who have attained legal age; and
94.22    (4) the lease amount must not exceed 50 percent of the average market rate, based
94.23on comparable private lease rates adjusted every five years.
94.24At the time of the new lease, the commissioner may offer, and after agreement with the
94.25leaseholder, lease equivalent alternative sites to the leaseholder.
94.26    (c) The commissioner shall not cancel a boathouse lease described under paragraphs
94.27(a) and (b) except for noncompliance with the lease agreement.
94.28(d) The commissioner must issue a written receipt to the lessee for each lease
94.29payment.
94.30    (d) (e) By January 15, 2001, the commissioner of natural resources shall report to
94.31the senate and house environment and natural resources policy and finance committees on
94.32boathouse leases in state parks. The report shall include information on:
94.33    (1) the number of boathouse leases;
94.34    (2) the number of leases that have forfeited;
94.35    (3) the expiration dates of the leases;
94.36    (4) the historical significance of the boathouses;
95.1    (5) recommendations on the inclusion of the land described in paragraph (d) within
95.2the park boundary; and
95.3    (6) any other relevant information on the leases.
95.4    (e) (f) The commissioner of natural resources shall contact U.S.X. Corporation and
95.5local units of government regarding the inclusion of the following lands within Soudan
95.6underground mine state park:
95.7    (1) all lands located South of Vermillion Lake shoreline in Section 13, Township
95.862 North, Range 15 West;
95.9    (2) all lands located South of Vermillion Lake shoreline in the S1/2-SE1/4 of Section
95.1014, Township 62 North, Range 15 West;
95.11    (3) NE1/4-SE1/4 and E1/2-NE1/4 of Section 22, Township 62 North, Range 15 West;
95.12    (4) all lands located South of Vermillion Lake shoreline in Section 23, Township
95.1362 North, Range 15 West;
95.14    (5) all of Section 24, Township 62 North, Range 15 West;
95.15    (6) all lands North of trunk highway No. 169 located in Section 25, Township
95.1662 North, Range 15 West;
95.17    (7) all lands North of trunk highway No. 169 located in Section 26, Township
95.1862 North, Range 15 West;
95.19    (8) NE1/4-SE1/4 and SE1/4-NE1/4 of Section 27, Township 62 North, Range 15
95.20West; and
95.21    (9) NW1/4 of Section 19, Township 62 North, Range 14 West.
95.22EFFECTIVE DATE.This section is effective the day following final enactment
95.23and applies to monthly lease payments made on or after that date.

95.24    Sec. 18. Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by
95.25Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:
95.26
95.27
Subd. 5.Fish and Wildlife
Management
-0-
2,412,000
95.28$3,000 in 2015 is from the heritage
95.29enhancement account in the game and fish
95.30fund for a report on aquatic plant management
95.31permitting policies for the management
95.32of narrow-leaved and hybrid cattail in a
95.33range of basin types across the state. The
95.34report shall be submitted to the chairs and
95.35ranking minority members of the house of
96.1representatives and senate committees with
96.2jurisdiction over environment and natural
96.3resources by December 15, 2014, and include
96.4recommendations for any necessary changes
96.5in statutes, rules, or permitting procedures.
96.6This is a onetime appropriation.
96.7$9,000 in 2015 is from the game and fish
96.8fund for the commissioner, in consultation
96.9with interested parties, agencies, and other
96.10states, to develop a detailed restoration plan
96.11to recover the historical native population of
96.12bobwhite quail in Minnesota for its ecological
96.13and recreational benefits to the citizens of the
96.14state. The commissioner shall conduct public
96.15meetings in developing the plan. No later
96.16than January 15, 2015, the commissioner
96.17must report on the plan's progress to the
96.18legislative committees with jurisdiction over
96.19environment and natural resources policy
96.20and finance. This is a onetime appropriation.
96.21$2,000,000 in 2015 is from the game and
96.22fish fund for shooting sports facility grants
96.23under Minnesota Statutes, section 87A.10.
96.24The commissioner may spend up to $50,000
96.25of this appropriation to administer the grant.
96.26This is a onetime appropriation and is
96.27available until June 30, 2017.
96.28$400,000 in 2015 is from the heritage
96.29enhancement account in the game and fish
96.30fund for hunter and angler recruitment
96.31and retention activities and grants to local
96.32chapters of Let's Go Fishing of Minnesota
96.33to provide community outreach to senior
96.34citizens, youth, and veterans and for the costs
96.35associated with establishing and recruiting
97.1new chapters. The grants must be matched
97.2with cash or in-kind contributions from
97.3nonstate sources. Of this amount, $25,000
97.4is for Asian Outdoor Heritage for youth
97.5fishing recruitment efforts and outreach in
97.6the metropolitan area. The commissioner
97.7shall establish a grant application process
97.8that includes a standard for ownership
97.9of equipment purchased under the grant
97.10program and contract requirements that
97.11cover the disposition of purchased equipment
97.12if the grantee no longer exists. Any
97.13equipment purchased with state grant money
97.14must be specified on the grant application
97.15and approved by the commissioner. The
97.16commissioner may spend up to three percent
97.17of the appropriation to administer the grant.
97.18This is a onetime appropriation and is
97.19available until June 30, 2016 2017.

97.20    Sec. 19. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5,
97.21is amended to read:
97.22
Subd. 5.Parks and Trails Management
74,064,000
73,650,000
97.23
Appropriations by Fund
97.24
2016
2017
97.25
General
24,967,000
24,427,000
97.26
Natural Resources
46,831,000
46,950,000
97.27
Game and Fish
2,266,000
2,273,000
97.28$1,075,000 the first year and $1,075,000 the
97.29second year are from the water recreation
97.30account in the natural resources fund for
97.31enhancing public water access facilities.
97.32$5,740,000 the first year and $5,740,000 the
97.33second year are from the natural resources
97.34fund for state trail, park, and recreation area
97.35operations. This appropriation is from the
98.1revenue deposited in the natural resources
98.2fund under Minnesota Statutes, section
98.3297A.94 , paragraph (e), clause (2).
98.4$1,005,000 the first year and $1,005,000 the
98.5second year are from the natural resources
98.6fund for park and trail grants to local units of
98.7government on land to be maintained for at
98.8least 20 years for the purposes of the grants.
98.9This appropriation is from the revenue
98.10deposited in the natural resources fund
98.11under Minnesota Statutes, section 297A.94,
98.12paragraph (e), clause (4). Any unencumbered
98.13balance does not cancel at the end of the first
98.14year and is available for the second year. Up
98.15to 2.5 percent of this appropriation may be
98.16used to administer the grants.
98.17$8,424,000 the first year and $8,424,000
98.18the second year are from the snowmobile
98.19trails and enforcement account in the
98.20natural resources fund for the snowmobile
98.21grants-in-aid program. Any unencumbered
98.22balance does not cancel at the end of the first
98.23year and is available for the second year.
98.24$1,360,000 the first year and $1,360,000
98.25the second year are from the natural
98.26resources fund for the off-highway vehicle
98.27grants-in-aid program. Of this amount,
98.28$1,210,000 each year is from the all-terrain
98.29vehicle account; and $150,000 each year is
98.30from the off-highway motorcycle account.
98.31Any unencumbered balance does not cancel
98.32at the end of the first year and is available for
98.33the second year.
98.34$75,000 the first year and $75,000 the second
98.35year are from the cross-country ski account
99.1in the natural resources fund for grooming
99.2and maintaining cross-country ski trails in
99.3state parks, trails, and recreation areas.
99.4$250,000 the first year and $250,000 the
99.5second year are from the state land and
99.6water conservation account (LAWCON)
99.7in the natural resources fund for priorities
99.8established by the commissioner for eligible
99.9state projects and administrative and
99.10planning activities consistent with Minnesota
99.11Statutes, section 84.0264, and the federal
99.12Land and Water Conservation Fund Act.
99.13Any unencumbered balance does not cancel
99.14at the end of the first year and is available for
99.15the second year.
99.16$968,000 the first year and $968,000 the
99.17second year are from the off-road vehicle
99.18account in the natural resources fund. Of
99.19this amount, $568,000 each year is for parks
99.20and trails management for off-road vehicle
99.21purposes; $325,000 each year is for the
99.22off-road vehicle grant in aid program; and
99.23$75,000 each year is for a new full-time
99.24employee position or contract in northern
99.25Minnesota to work in conjunction with the
99.26Minnesota Four-Wheel Drive Association
99.27to address off-road vehicle touring routes
99.28and other issues related to off-road vehicle
99.29activities. Of this appropriation, the $325,000
99.30each year is onetime.
99.31$65,000 the first year is from the water
99.32recreation account in the natural resources
99.33fund to cooperate with local units of
99.34government in marking routes and
99.35designating river accesses and campsites
100.1under Minnesota Statutes, section 85.32.
100.2This is a onetime appropriation and is
100.3available until June 30, 2019.
100.4$190,000 the first year is for a grant to the
100.5city of Virginia for the additional cost of
100.6supporting a trail due to the rerouting of
100.7U.S. Highway No. 53. This is a onetime
100.8appropriation and is available until June 30,
100.92019.
100.10$50,000 the first year is for development of
100.11a master plan for the Mississippi Blufflands
100.12Trail, including work on possible extensions
100.13or connections to other state or regional
100.14trails. This is a onetime appropriation that is
100.15available until June 30, 2017.
100.16$61,000 from the natural resources fund the
100.17first year is for a grant to the city of East
100.18Grand Forks for payment under a reciprocity
100.19agreement for the Red River State Recreation
100.20Area.
100.21$500,000 the first year is for restoration or
100.22replacement of a historic trestle bridge in
100.23Blackduck. This is a onetime appropriation
100.24and is available until June 30, 2019.
100.25The base for parks and trails operations in
100.26the natural resources fund in fiscal year 2018
100.27and thereafter is $46,450,000.
100.28EFFECTIVE DATE.This section is effective the day following final enactment.

100.29    Sec. 20. Laws 2015, First Special Session chapter 4, article 4, section 131, is amended
100.30to read:
100.31    Sec. 131. SURPLUS STATE LAND SALES.
100.32The school trust lands director shall identify, in consultation with the commissioner
100.33of natural resources, at least $5,000,000 in state-owned lands suitable for sale or exchange
101.1with school trust lands. The lands identified shall not be within a unit of the outdoor
101.2recreation system under Minnesota Statutes, section 86A.05, an administrative site, or trust
101.3land. The commissioner shall sell or exchange at least $3,000,000 worth of lands identified
101.4under this section by June 30, 2017. Land exchanged under this section may be exchanged
101.5in accordance with Minnesota Statutes, section 94.3495. The value of the surplus land
101.6exchanged shall serve as compensation to the permanent school fund as provided under
101.7Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). Notwithstanding the
101.8restrictions on sale of riparian land and the public sale provisions under Minnesota
101.9Statutes, sections 92.45, 94.09, and 94.10, the commissioner may offer the surplus land,
101.10including land bordering public water, for public or private sale. Notwithstanding
101.11Minnesota Statutes, section 94.16, subdivision 3, or any other law to the contrary, the
101.12amount of the proceeds from the sale of lands that exceeds the actual expenses of selling
101.13the lands must be deposited in the school trust lands account and used to extinguish the
101.14school trust interest as provided under Minnesota Statutes, section 92.83, on school trust
101.15lands that have public water access sites or old growth forests located on them.

101.16    Sec. 21. COLD SPRING WATER APPROPRIATION PERMITS; REPORT.
101.17(a) The commissioner of natural resources shall amend the city of Cold Spring's
101.18water appropriation permit to allow an increase in the city's water withdrawal of 100
101.19million gallons per year from city wells 4, 5, and 6, provided a combined reduction of
101.20ten million gallons per year is made from city well 3 or water appropriations under any
101.21permits held by brewing companies in the Cold Spring Creek area. The city and any other
101.22permit holder with permit modifications made under this section must comply with all
101.23existing reporting requirements and demonstrate that increased pumping does not result in
101.24violations of the Safe Drinking Water Act. The increases under this section are available
101.25on an interim basis, not to exceed five years, to allow the city to establish a long-term
101.26water supply solution for the city and area businesses.
101.27(b) The commissioner must conduct necessary monitoring of stream flow and water
101.28levels and develop a groundwater model to determine the amount of water that can be
101.29sustainably pumped in the area of Cold Spring Creek for area businesses, agriculture, and
101.30city needs. Beginning July 1, 2017, the commissioner must submit an annual progress
101.31report to the chairs and ranking minority members of the house of representatives and
101.32senate committees and divisions with jurisdiction over environment and natural resources.
101.33The commissioner must submit a final report by January 15, 2022.

101.34    Sec. 22. APPROPRIATION REALLOCATION.
102.1Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and
102.2Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the
102.3Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal
102.4years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the
102.5Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi
102.6Riverfront Regional Parks in accordance with the most recent priority rankings that the
102.7Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This
102.8reallocation of funds is anticipated to result in $500,000 in federal funds to match extant
102.9parks and trails fund appropriations.
102.10EFFECTIVE DATE.This section is effective the day following final enactment.

102.11ARTICLE 5
102.12BROADBAND

102.13
Section 1. APPROPRIATIONS.
102.14    The sums shown in the columns under "Appropriations" are added to or, if shown
102.15in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
102.16chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
102.17general fund, or another named fund, and are available for the fiscal years indicated for
102.18each purpose. The figure "2017" used in this article means that the appropriations listed
102.19under it are available for the fiscal year ending June 30, 2017.
102.20
APPROPRIATIONS
102.21
Available for the Year
102.22
Ending June 30
102.23
2016
2017

102.24
102.25
Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT.
$
-0-
$
85,000,000
102.26Border-To-Border Broadband
102.27Development Program. (a) $85,000,000
102.28in fiscal year 2017 is appropriated to
102.29the commissioner of employment and
102.30economic development for deposit in the
102.31border-to-border broadband fund account
102.32created under Minnesota Statutes, section
102.33116J.396, and may be used for the purposes
103.1provided in Minnesota Statutes, section
103.2116J.395. This is a onetime appropriation.
103.3(b) Of the appropriation in paragraph (a),
103.4the commissioner may include the following
103.5activities related to measuring progress
103.6toward the state's broadband goals established
103.7in Minnesota Statutes, section 237.012,
103.8as administrative costs under Minnesota
103.9Statutes, section 116J.395. Administrative
103.10costs may include the following activities
103.11related to measuring progress toward the
103.12state's broadband goals established in
103.13Minnesota Statutes, section 237.012:
103.14(1) collecting broadband deployment data
103.15from Minnesota providers, verifying its
103.16accuracy through on-the-ground testing, and
103.17creating state and county maps available
103.18to the public showing the availability of
103.19broadband service at various upload and
103.20download speeds throughout Minnesota;
103.21(2) analyzing the deployment data collected
103.22to help inform future investments in
103.23broadband infrastructure; and
103.24(3) conducting business and residential
103.25surveys that measure broadband adoption
103.26and use in the state.
103.27(c) Data provided by a broadband provider
103.28under this paragraph is nonpublic data
103.29under Minnesota Statutes, section 13.02,
103.30subdivision 9. Maps produced under this
103.31paragraph are public data under Minnesota
103.32Statutes, section 13.03.

103.33    Sec. 3. Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:
103.34116J.394 DEFINITIONS.
104.1(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
104.2the meanings given them.
104.3(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
104.4subdivision 1, paragraph (b).
104.5(c) "Broadband infrastructure" means networks of deployed telecommunications
104.6equipment and technologies necessary to provide high-speed Internet access and other
104.7advanced telecommunications services for end users.
104.8(d) "Commissioner" means the commissioner of employment and economic
104.9development.
104.10(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
104.11final leg connecting the broadband service provider's network to the end-use customer's
104.12on-premises telecommunications equipment.
104.13(f) "Middle-mile infrastructure" means broadband infrastructure that links a
104.14broadband service provider's core network infrastructure to last-mile infrastructure.
104.15(g) "Political subdivision" means any county, city, town, school district, special
104.16district or other political subdivision, or public corporation.
104.17(h) "Underserved areas" means areas of Minnesota in which households or
104.18businesses lack access to wire-line broadband service at speeds that meet the state
104.19broadband goals of ten to 20 at least 100 megabits per second download and five to ten
104.20at least 20 megabits per second upload.
104.21(i) "Unserved areas" means areas of Minnesota in which households or businesses
104.22lack access to wire-line broadband service, as defined in section 116J.39 at speeds of at
104.23least 25 megabits per second download and at least three megabits per second upload.

104.24    Sec. 4. Minnesota Statutes 2014, section 116J.396, subdivision 2, is amended to read:
104.25    Subd. 2. Expenditures. Money in the account may be used only:
104.26(1) for grant awards made under section 116J.395, including costs incurred by the
104.27Department of Employment and Economic Development to administer that section not
104.28to exceed three percent of any expenditures made from the border-to-border broadband
104.29fund account;
104.30(2) to supplement revenues raised by bonds sold by local units of government for
104.31broadband infrastructure development; or
104.32(3) to contract for the collection of broadband deployment data from providers and
104.33the creation of maps showing the availability of broadband service.

104.34    Sec. 5. Minnesota Statutes 2014, section 237.012, subdivision 1, is amended to read:
105.1    Subdivision 1. Universal access and high-speed goal. It is a state goal that as
105.2soon as possible, but no later than 2015, all state residents and businesses have access to
105.3high-speed broadband that provides minimum download speeds of ten to 20 megabits per
105.4second and minimum upload speeds of five to ten megabits per second.:
105.5(1) no later than 2022, all Minnesota businesses and homes have access to
105.6high-speed broadband that provides minimum download speeds of at least 25 megabits
105.7per second and minimum upload speeds of at least three megabits per second; and
105.8(2) no later than 2026, all Minnesota businesses and homes have access to at least
105.9one provider of broadband with download speeds of at least 100 megabits per second and
105.10upload speeds of at least 20 megabits per second.

105.11ARTICLE 6
105.12EQUITY

105.13
Section 1. APPROPRIATIONS.
105.14The sums shown in the columns marked "Appropriations" are appropriated to the
105.15agencies and for the purposes specified in this article. The appropriations are from the
105.16general fund, or another named fund, and are available for the fiscal year indicated
105.17for each purpose. The figures "2016" and "2017" used in this article mean that the
105.18appropriations listed under them are available for the fiscal year ending June 30, 2016,
105.19or June 30, 2017, respectively.
105.20
APPROPRIATIONS
105.21
Available for the Year
105.22
Ending June 30
105.23
2016
2017

105.24
Sec. 2. EQUITY APPROPRIATIONS
105.25
Subdivision 1.Total Appropriation
$
-0-
$
87,130,000
105.26
105.27
Subd. 2.Department of Employment and
Economic Development
-0-
60,557,000
105.28(a) $1,420,000 in fiscal year 2017 is for
105.29grants to the Neighborhood Development
105.30Center for small business programs. This is a
105.31onetime appropriation and is available until
105.32June 30, 2019.
105.33Of this amount, $770,000 is for the small
105.34business development program, including:
106.1(1) $600,000 for training, lending, and
106.2business services for aspiring business
106.3owners, and expansion of services for
106.4immigrants in suburban communities; and
106.5(2) $170,000 is for Neighborhood
106.6Development Center model outreach and
106.7training activities in greater Minnesota.
106.8Of this amount, $650,000 is for grants for the
106.9small business incubator program, including:
106.10(1) $400,000 for capital improvements to
106.11existing small business incubators; and
106.12(2) $250,000 for the creation of two
106.13additional small business incubators.
106.14(b) $2,500,000 in fiscal year 2017 is for
106.15the Minnesota Initiative program under
106.16Minnesota Statutes, section 116M.18.
106.17Priority for loans made from this
106.18appropriation shall be given to businesses
106.19operated by women of color. This is a
106.20onetime appropriation and is available until
106.21June 30, 2019.
106.22(c) $5,550,000 in fiscal year 2017 is for
106.23a competitive grant program to provide
106.24grants to organizations that provide support
106.25services for individuals, such as job training,
106.26employment preparation, internships,
106.27assistance to fathers in supporting their
106.28children, financial literacy, academic and
106.29behavioral interventions for low-performing
106.30students, and youth intervention. Grants
106.31made under this section must focus on
106.32low-income communities, young adults from
106.33families with a history of intergenerational
106.34poverty, and communities of color. All grant
106.35recipients are subject to the requirements of
107.1section 35. This is a onetime appropriation
107.2and is available until June 30, 2019.
107.3(d) $2,100,000 in fiscal year 2017 is for
107.4grants to YWCA organizations to provide job
107.5training services and workforce development
107.6programs and services, including job skills
107.7training and counseling necessary to secure
107.8a child development associate credential and
107.9to develop a career path in early childhood
107.10education. This is a onetime appropriation
107.11and is available until June 30, 2019.
107.12(e) $4,250,000 in fiscal year 2017 is for a
107.13grant to EMERGE Community Development,
107.14in collaboration with community partners, for
107.15services targeting Minnesota communities
107.16with the highest concentrations of African
107.17and African-American joblessness to provide
107.18employment readiness training, credentialed
107.19training placement, job placement and
107.20retention services, supportive services for
107.21hard-to-employ individuals, and a general
107.22education development fast track and
107.23adult diploma program. This is a onetime
107.24appropriation and is available until June 30,
107.252019.
107.26(f) $5,050,000 in fiscal year 2017 is for
107.27a grant to the Metropolitan Economic
107.28Development Association (MEDA) for
107.29statewide business development and
107.30assistance services, including services to
107.31entrepreneurs with businesses that have
107.32the potential to create job opportunities for
107.33unemployed and underemployed people. The
107.34grants must be awarded with an emphasis
107.35on minority-owned businesses. This is a
108.1onetime appropriation and is available until
108.2June 30, 2019.
108.3Of this appropriation, $3,250,000 is for a
108.4revolving loan fund to provide additional
108.5minority-owned businesses with access to
108.6capital.
108.7(g) $1,500,000 in fiscal year 2017 is for a
108.8grant to the Minneapolis Foundation for
108.9a strategic intervention program designed
108.10to target and connect program participants
108.11to meaningful, sustainable living-wage
108.12employment. This is a onetime appropriation
108.13and is available until June 30, 2019.
108.14(h) $407,000 in fiscal year 2017 is for a
108.15grant to Twin Cities R!SE, in collaboration
108.16with Metro Transit and Hennepin Technical
108.17College, for the Metro Transit technician
108.18training program. This is a onetime
108.19appropriation and is available until June 30,
108.202019.
108.21(i)_$4,800,000 in fiscal year 2017 is for
108.22the creation of additional multiemployer,
108.23sector-based career connections pathways.
108.24This is a onetime appropriation and is
108.25available until June 30, 2019. $4,500,000 of
108.26this amount is for a grant to Hennepin County
108.27to establish pathways using the Hennepin
108.28Career Connections framework. $300,000
108.29of this amount is for a grant to Hennepin
108.30County to establish a pilot program based on
108.31the career connections pathways framework
108.32outside the seven-county metropolitan area,
108.33in collaboration with another local unit of
108.34government.
109.1(j) $1,500,000 in fiscal year 2017 is for the
109.2high-wage, high-demand, nontraditional
109.3jobs grant program under Minnesota
109.4Statutes, section 116L.99. This is a onetime
109.5appropriation and is available until June 30,
109.62019.
109.7(k) $8,000,000 in fiscal year 2017 is for the
109.8youth-at-work competitive grant program
109.9under Minnesota Statutes, section 116L.562,
109.10subdivision 3. This is a onetime appropriation
109.11and is available until June 30, 2019. Of
109.12this amount, $6,000,000 is for increases to
109.13existing applicants who were awarded grants
109.14in fiscal year 2016 and 2017, and $2,000,000
109.15is to fund existing or new eligible applicants.
109.16(l) $4,000,000 in fiscal year 2017 is for a
109.17competitive grant program for grants to
109.18organizations providing services to relieve
109.19economic disparities in the Southeast Asian
109.20community through workforce recruitment,
109.21development, job creation, assistance of
109.22smaller organizations to increase capacity,
109.23and outreach. Grant recipients under this
109.24paragraph are subject to the requirements of
109.25section 35. This is a onetime appropriation
109.26and is available until June 30, 2019.
109.27(m) $1,500,000 in fiscal year 2017 is for
109.28a grant to Latino Communities United
109.29in Service (CLUES) to expand culturally
109.30tailored programs that address employment
109.31and education skill gaps for working parents
109.32and underserved youth by providing new
109.33job skills training to stimulate higher wages
109.34for low-income people, family support
109.35systems designed to reduce intergenerational
110.1poverty, and youth programming to promote
110.2educational advancement and career
110.3pathways. At least 50 percent of this amount
110.4must be used for programming targeted
110.5at greater Minnesota. This is a onetime
110.6appropriation and is available until June 30,
110.72019.
110.8(n) $880,000 in fiscal year 2017 is for a grant
110.9to the American Indian Opportunities and
110.10Industrialization Center, in collaboration
110.11with the Northwest Indian Community
110.12Development Center, to reduce academic
110.13disparities for American Indian students
110.14and adults. The grant funds may be used to
110.15provide:
110.16(1) student tutoring and testing support
110.17services;
110.18(2) training in information technology;
110.19(3) assistance in obtaining a GED;
110.20(4) remedial training leading to enrollment in
110.21a postsecondary higher education institution;
110.22(5) real-time work experience in information
110.23technology fields; and
110.24(6) contextualized adult basic education.
110.25This is a onetime appropriation and is
110.26available until June 30, 2019.
110.27(o) $1,000,000 in fiscal year 2017 is for
110.28a grant to the White Earth Nation for the
110.29White Earth Nation Integrated Business
110.30Development System to provide business
110.31assistance with workforce development,
110.32outreach, technical assistance, infrastructure
110.33and operational support, financing, and other
110.34business development activities. This is a
111.1onetime appropriation and is available until
111.2June 30, 2019.
111.3(p) $6,000,000 is for the emerging
111.4entrepreneur fund program. This is a onetime
111.5appropriation and is available until June 30,
111.62019. Of this amount, $5,000,000 is for
111.7small business lending and shall be deposited
111.8in the emerging entrepreneur fund special
111.9revenue account under Minnesota Statutes,
111.10section 116J.55, and $1,000,000 is for grants
111.11for small business technical assistance.
111.12(q) $5,100,000 is for the Pathways to
111.13Prosperity adult workforce development
111.14competitive grant program. When
111.15awarding grants under this paragraph, the
111.16commissioner must give preference to any
111.17previous grantee with demonstrated success
111.18in job training and placement for hard-to-train
111.19individuals. A portion of the grants must
111.20provide year-end educational and experiential
111.21learning opportunities for teens and young
111.22adults that provide careers in the construction
111.23industry. This is a onetime appropriation and
111.24is available until June 30, 2019.
111.25(r) $3,000,000 is for the capacity
111.26building grant program to assist nonprofit
111.27organizations offering or seeking to offer
111.28workforce development and economic
111.29development programming. This is a
111.30onetime appropriation and is available until
111.31June 30, 2019.
111.32(s) $2,000,000 in fiscal year 2017 is for a grant
111.33to Youthprise for positive youth development,
111.34community engagement, legal services, and
111.35capacity building for community-based
112.1organizations serving Somali youth,
112.2including youth engagement, prevention,
112.3and intervention activities that help build
112.4the resiliency of the Somali Minnesotan
112.5community and address challenges facing
112.6Somali youth. Funded projects must provide
112.7culturally and linguistically relevant services.
112.8To the maximum extent possible, 50 percent
112.9of the funding must be distributed in greater
112.10Minnesota, and 50 percent of funding must
112.11be distributed within the metropolitan area,
112.12as defined in Minnesota Statutes, section
112.13473.121, subdivision 2. This is a onetime
112.14appropriation and is available until June 30,
112.152019.
112.16
Subd. 3.Department of Administration
-0-
2,500,000
112.17$2,500,000 is to assess, upgrade, and enhance
112.18accounting and procurement software to
112.19facilitate targeted group business utilization
112.20and data reporting. This is a onetime
112.21appropriation and is available until June 30,
112.222019.
112.23
Subd. 4.Department of Corrections
-0-
350,000
112.24$350,000 is for a grant to a nonprofit
112.25organization to provide job skills training
112.26to individuals who have been released from
112.27incarceration for a felony-level offense in the
112.28preceding 12 months. To be eligible for the
112.29grant, the organization shall:
112.30(1) provide housing or rental assistance for
112.31program participants;
112.32(2) provide employment opportunities for
112.33program participants;
113.1(3) require program participants, when
113.2appropriate, to receive counseling for alcohol
113.3or chemical dependency; and
113.4(4) serve a primarily minority population.
113.5This is a onetime appropriation and is
113.6available until June 30, 2019.
113.7
Subd. 5.Minnesota Housing Finance Agency
-0-
500,000
113.8$500,000 is for a grant to Build Wealth MN to
113.9provide a family stabilization plan program
113.10including program outreach, financial
113.11literacy education, and budget and debt
113.12counseling. This is a onetime appropriation
113.13and is available until June 30, 2019.
113.14
Subd. 6.Department of Agriculture
-0-
5,000,000
113.15$5,000,000 shall be deposited in the good
113.16food access account created in Minnesota
113.17Statutes, section 17.1017, subdivision 3. This
113.18is a onetime appropriation and is available
113.19until June 30, 2019.
113.20
Subd. 7.Department of Education
-0-
10,200,000
113.21(a) $1,500,000 in fiscal year 2017 is for a first
113.22class city school district or any other school
113.23district with more than 40 percent minority
113.24students to provide tuition scholarships
113.25or stipends to eligible employees for a
113.26nonconventional teacher residency pilot
113.27program established under Minnesota
113.28Statutes, section 122A.09, subdivision 10,
113.29paragraph (a). The program shall provide
113.30tuition scholarships or stipends to enable
113.31education or teaching assistants or other
113.32nonlicensed employees of a first class city
113.33school district or any other school district
113.34with more than 40 percent minority students
114.1who hold a bachelor's degree from an
114.2accredited college or university and who seek
114.3an education license to participate in a Board
114.4of Teaching-approved nonconventional
114.5teacher residency program under Minnesota
114.6Statutes, section 122A.09, subdivision 10,
114.7paragraph (a). Any funds not awarded by
114.8June 1, 2017, may be reallocated among the
114.9remaining districts if the total cost of the
114.10program exceeds the original allocation. This
114.11is a onetime appropriation and is available
114.12until June 30, 2019.
114.13(b) $3,200,000 in fiscal year 2017 is for grants
114.14as provided under this paragraph. This is a
114.15onetime appropriation and is available until
114.16June 30, 2019. Of this amount, $1,200,000
114.17is for grants to adult basic education (ABE)
114.18program providers to establish up to four
114.19college readiness academies. A college
114.20readiness academy is a partnership between
114.21ABE programs, with support from Minnesota
114.22State Colleges and Universities, to prepare
114.23ABE students to successfully enter college
114.24and complete credit-bearing courses needed
114.25for career-related credentials. The academies
114.26must include academic skill building for
114.27college success, integrated sector-specific
114.28academic training when applicable, and
114.29intensive navigation and educational
114.30support for the program participants. The
114.31commissioner must award one grant to the
114.32International Institute of Minnesota. The
114.33remaining grant awards must be based on the
114.34following criteria:
114.35(1) program capacity;
115.1(2) program need for funding; and
115.2(3) geographic balance of programs around
115.3the state.
115.4Of the amount appropriated under this
115.5paragraph, $1,200,000 is for grants to
115.6ABE program providers that establish
115.7a contextualized GED or adult diploma
115.8program to prepare adults for successful
115.9GED or adult diploma completion and
115.10successful entry into credentialing programs
115.11leading to careers. The programs must:
115.12(1) provide program navigation and academic
115.13supports;
115.14(2) be connected to an ABE consortium and
115.15partner with the Department of Employment
115.16and Economic Development;
115.17(3) provide instruction in one of the state's six
115.18demand sectors identified by the Department
115.19of Employment and Economic Development,
115.20serving participants in the top three ABE
115.21levels of ABE intermediate high, adult
115.22secondary education (ASE) low, or ASE
115.23high;
115.24(4) have a history of success working with
115.25the target populations; and
115.26(5) demonstrate how a GED or an adult
115.27diploma plus the designated postsecondary
115.28credential will lead to a career.
115.29The commissioner shall award grants to
115.30four contextualized GED or adult diploma
115.31programs based on program capacity, need,
115.32and geographic balance of programs around
115.33the state. One grant must be awarded to
115.34Summit Academy OIC.
116.1Of the amount appropriated under this
116.2paragraph, $800,000 is for grants to eight
116.3ABE programs to provide ABE navigating
116.4and advising support services. The programs
116.5must help ABE students:
116.6(1) explore careers;
116.7(2) develop personalized learning;
116.8(3) plan for a postsecondary education and
116.9career;
116.10(4) attain personal learning goals;
116.11(5) complete a standard adult high school
116.12diploma under Minnesota Statutes, section
116.13124D.52, subdivisions 8 and 9, or complete
116.14a GED;
116.15(6) develop time management and study
116.16skills;
116.17(7) develop critical academic and
116.18career-related skills needed to enroll in a
116.19postsecondary program without need for
116.20remediation;
116.21(8) navigate the registration process for a
116.22postsecondary program;
116.23(9) understand postsecondary program
116.24requirements and instruction expectations;
116.25and
116.26(10) resolve personal issues related to mental
116.27health, domestic abuse, chemical abuse,
116.28homelessness, and other issues that, if left
116.29unaddressed, are barriers to enrolling in and
116.30completing a postsecondary program.
116.31The commissioner must award ABE
116.32navigating and advising support services
116.33grants to eight ABE programs. The
117.1commissioner shall award grants to programs
117.2based on program capacity, need, and
117.3geographic balance of programs around
117.4the state. The commissioner shall give
117.5priority to ABE programs already providing
117.6navigating and advising support services.
117.7The commissioner shall allocate the grant
117.8funding based on the number of ABE
117.9program participants the program served in
117.10the prior year.
117.11(c) $2,750,000 is for the Minnesota's
117.12future teachers grant program under
117.13Minnesota Statutes, section 136A.123.
117.14The commissioner of management and
117.15budget shall transfer this amount to the
117.16Office of Higher Education for the purposes
117.17of this appropriation. This is a onetime
117.18appropriation and is available until June 30,
117.192019.
117.20(d) $2,750,000 is for the stepping up for kids
117.21financial assistance account under section
117.2233. The commissioner of management and
117.23budget shall transfer this amount to the
117.24Office of Higher Education for the purposes
117.25of this appropriation. This is a onetime
117.26appropriation and is available until June 30,
117.272019.
117.28
Subd. 8.Minnesota Management and Budget
-0-
3,615,000
117.29$3,615,000 is for administrative expenses
117.30related to grants appropriated in this article.
117.31The commissioner shall transfer funds in an
117.32amount to be determined by the commissioner
117.33to agencies administering competitive grant
117.34programs and serving as fiscal agents for
117.35grants appropriated in this article. The
118.1transfer to each agency may not exceed four
118.2percent of the amount appropriated to that
118.3agency. This is a onetime appropriation and
118.4is available until June 30, 2019.
118.5
Subd. 9.Department of Human Services
-0-
8,000
118.6$8,000 is for the MAXIS system. This is a
118.7onetime appropriation.

118.8    Sec. 3. Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:
118.9    Subd. 6. Expenditures under specified amounts. A competitive solicitation
118.10process described in this chapter is not required for the acquisition of goods, services,
118.11construction, and utilities in an amount of $5,000 or less or as authorized by section
118.1216C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b).

118.13    Sec. 4. Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:
118.14    Subd. 6. Purchasing methods. (a) The commissioner may award up to a six
118.15percent preference in the amount bid for specified goods or services to small targeted
118.16group businesses.
118.17(b) The commissioner may award a contract for goods, services, or construction
118.18directly to a small business or small targeted group business without going through a
118.19competitive solicitation process up to a total contract award value, including extension
118.20options, of $25,000.
118.21(b) (c) The commissioner may designate a purchase of goods or services for
118.22award only to small businesses or small targeted group businesses if the commissioner
118.23determines that at least three small businesses or small targeted group businesses are likely
118.24to bid respond to a solicitation.
118.25(c) (d) The commissioner, as a condition of awarding a construction contract or
118.26approving a contract for professional or technical services, may set goals that require
118.27the prime contractor to subcontract a portion of the contract to small businesses or
118.28small targeted group businesses. The commissioner must establish a procedure for
118.29granting waivers from the subcontracting requirement when qualified small businesses
118.30or small targeted group businesses are not reasonably available. The commissioner may
118.31establish financial incentives for prime contractors who exceed the goals for use of small
118.32business or small targeted group business subcontractors and financial penalties for prime
118.33contractors who fail to meet goals under this paragraph. The subcontracting requirements
119.1of this paragraph do not apply to prime contractors who are small businesses or small
119.2targeted group businesses.

119.3    Sec. 5. Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 6a, is
119.4amended to read:
119.5    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
119.6federal government as a condition of receiving federal funds, the commissioner shall
119.7award up to a six percent preference, but no less than the percentage awarded to any
119.8other group under this section, in the amount bid on state procurement to certified small
119.9businesses that are majority-owned and operated by veterans.
119.10(b) The commissioner may award a contract for goods, services, or construction
119.11directly to a veteran-owned small business without going through a competitive solicitation
119.12process up to a total contract award value, including extension options, of $25,000.
119.13(c) The commissioner may designate a purchase of goods or services for award only
119.14to a veteran-owned small business if the commissioner determines that at least three
119.15veteran-owned small businesses are likely to respond to a solicitation.
119.16(d) The commissioner, as a condition of awarding a construction contract or
119.17approving a contract for professional or technical services, may set goals that require
119.18the prime contractor to subcontract a portion of the contract to a veteran-owned small
119.19business. The commissioner must establish a procedure for granting waivers from the
119.20subcontracting requirement when qualified veteran-owned small businesses are not
119.21reasonably available. The commissioner may establish financial incentives for prime
119.22contractors who exceed the goals for use of veteran-owned small business subcontractors
119.23and financial penalties for prime contractors who fail to meet goals under this paragraph.
119.24The subcontracting requirements of this paragraph do not apply to prime contractors
119.25who are veteran-owned small businesses.
119.26(b) (e) The purpose of this designation is to facilitate the transition of veterans from
119.27military to civilian life, and to help compensate veterans for their sacrifices, including but
119.28not limited to their sacrifice of health and time, to the state and nation during their military
119.29service, as well as to enhance economic development within Minnesota.
119.30(c) (f) Before the commissioner certifies that a small business is majority-owned and
119.31operated by a veteran, the commissioner of veterans affairs must verify that the owner of
119.32the small business is a veteran, as defined in section 197.447.

119.33    Sec. 6. Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:
120.1    Subd. 7. Economically disadvantaged areas. (a) Except as otherwise provided in
120.2paragraph (b), The commissioner may award up to a six percent preference in the amount
120.3bid on state procurement to small businesses located in an economically disadvantaged area.
120.4(b) The commissioner may award up to a four percent preference in the amount bid
120.5on state construction to small businesses located in an economically disadvantaged area.
120.6(b) The commissioner may award a contract for goods, services, or construction
120.7directly to a small business located in an economically disadvantaged area without going
120.8through a competitive solicitation process up to a total contract award value, including
120.9extension options, of $25,000.
120.10(c) The commissioner may designate a purchase of goods or services for award only
120.11to a small business located in an economically disadvantaged area if the commissioner
120.12determines that at least three small businesses located in an economically disadvantaged
120.13area are likely to respond to a solicitation.
120.14(d) The commissioner, as a condition of awarding a construction contract or
120.15approving a contract for professional or technical services, may set goals that require the
120.16prime contractor to subcontract a portion of the contract to a small business located in
120.17an economically disadvantaged area. The commissioner must establish a procedure for
120.18granting waivers from the subcontracting requirement when qualified small businesses
120.19located in an economically disadvantaged area are not reasonably available. The
120.20commissioner may establish financial incentives for prime contractors who exceed the
120.21goals for use of subcontractors that are small businesses located in an economically
120.22disadvantaged area and financial penalties for prime contractors who fail to meet goals
120.23under this paragraph. The subcontracting requirements of this paragraph do not apply to
120.24prime contractors who are small businesses located in an economically disadvantaged area.
120.25(c) (e) A business is located in an economically disadvantaged area if:
120.26(1) the owner resides in or the business is located in a county in which the median
120.27income for married couples is less than 70 percent of the state median income for married
120.28couples;
120.29(2) the owner resides in or the business is located in an area designated a labor
120.30surplus area by the United States Department of Labor; or
120.31(3) the business is a certified rehabilitation facility or extended employment provider
120.32as described in chapter 268A.
120.33(d) (f) The commissioner may designate one or more areas designated as targeted
120.34neighborhoods under section 469.202 or as border city enterprise zones under section
120.35469.166 as economically disadvantaged areas for purposes of this subdivision if the
120.36commissioner determines that this designation would further the purposes of this section.
121.1If the owner of a small business resides or is employed in a designated area, the small
121.2business is eligible for any preference provided under this subdivision.
121.3(e) (g) The Department of Revenue shall gather data necessary to make the
121.4determinations required by paragraph (c) (e), clause (1), and shall annually certify counties
121.5that qualify under paragraph (c) (e), clause (1). An area designated a labor surplus area
121.6retains that status for 120 days after certified small businesses in the area are notified of
121.7the termination of the designation by the United States Department of Labor.

121.8    Sec. 7. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision
121.9to read:
121.10    Subd. 7a. Designated purchases and subcontractor goals. (a) When designating
121.11purchases directly to a business in accordance with this section, the commissioner may
121.12also designate a purchase of goods or services directly to any combination of small
121.13businesses, small targeted group businesses, veteran-owned small businesses or small
121.14businesses located in an economically disadvantaged area if the commissioner determines
121.15that at least three businesses in two or more of the disadvantaged business categories
121.16are likely to respond.
121.17(b) When establishing subcontractor goals under this section, the commissioner may
121.18set goals that require the prime contractor to subcontract a portion of the contract to any
121.19combination of a small business, small targeted group business, veteran-owned small
121.20business, or small business located in an economically disadvantaged area.

121.21    Sec. 8. Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:
121.22    Subd. 11. Procurement procedures. All laws and rules pertaining to solicitations,
121.23bid evaluations, contract awards, and other procurement matters apply equally to
121.24procurements designated for small businesses or small targeted group businesses involving
121.25any small business, small targeted group business, veteran-owned business, or small
121.26business located in an economically disadvantaged area. In the event of conflict with other
121.27rules, section 16C.15 and rules adopted under it govern, if section 16C.15 applies. If it
121.28does not apply, sections 16C.16 to 16C.21 and rules adopted under those sections govern.

121.29    Sec. 9. [17.1017] GOOD FOOD ACCESS PROGRAM.
121.30    Subdivision 1. Definitions. (a) For purposes of this section, unless the language
121.31or context indicates that a different meaning is intended, the following terms have the
121.32meanings given them.
121.33(b) "Account" means the good food access account established in subdivision 3.
122.1(c) "Commissioner" means the commissioner of agriculture.
122.2(d) "Economic or community development financial institution (ECDFI)" means
122.3a lender, including but not limited to a community development financial institution
122.4(CDFI), an economic development district (EDD), a political subdivision of the state, a
122.5microenterprise firm, or a nonprofit community lending organization that has previous
122.6experience lending to a food retailer, producer, or another healthy food enterprise in an
122.7underserved community in a low-income or moderate-income area, as defined in this
122.8section; has been in existence and operating prior to January 1, 2014; has demonstrated
122.9the ability to raise matching capital and in-kind services to leverage appropriated money;
122.10has the demonstrated ability to underwrite loans and grants; and has partnered previously
122.11with nonprofit healthy food access, public health, or related governmental departments or
122.12community organizations.
122.13(e) "Farmers' market" means an association of three or more persons who assemble
122.14at a defined location that is open to the public for the purpose of selling directly to the
122.15consumer the products of a farm or garden occupied and cultivated by the person selling
122.16the product.
122.17(f) "Financing" means loans, including low-interest loans, zero-interest loans,
122.18forgivable loans, and other types of financial assistance other than grants.
122.19(g) "Food hub" means a centrally located facility with a business management
122.20structure that facilitates the aggregation, storage, processing, distribution, marketing, and
122.21sale of locally or regionally produced food products, and which may include a small-scale
122.22retail grocery operation.
122.23(h) "Good Food Access Program Advisory Committee" means the Good Food
122.24Access Program Advisory Committee under section 17.1018.
122.25(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail
122.26establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries,
122.27and dairy products and may also sell household products, sundries, and other products.
122.28Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery
122.29establishment and may include a mobile food market or a delivery service operation.
122.30(j) "Low-income area" means a census tract as reported in the most recently
122.31completed decennial census published by the United States Bureau of the Census that has
122.32a poverty rate of at least 20 percent or in which the median family income does not exceed
122.3380 percent of the greater of the statewide or metropolitan median family income.
122.34(k) "Moderate-income area" means a census tract as reported in the most recently
122.35completed decennial census published by the United States Bureau of the Census in which
123.1the median family income is between 81 percent and 95 percent of the median family
123.2income for that area.
123.3(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or
123.4cooperative retail grocery operation located in a movable new or renovated truck, bus, or
123.5other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood,
123.6fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal
123.7supply of cooking utensils and equipment and other household products and sundries.
123.8(m) "Program" means the good food access program established in this section.
123.9(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery
123.10store as defined in this section. Small food retailer includes, but is not limited to, a corner
123.11store, convenience store, farmers' market, mobile food market, and a retail food outlet
123.12operated by an emergency food program or food hub.
123.13(o) "Technical assistance" means needs-based project assistance provided through
123.14the program, including sustainability-focused individualized guidance, presentations,
123.15workshops, trainings, printed materials, mentorship opportunities, peer-to-peer
123.16opportunities, or other guidance and resources on relevant topics such as business
123.17planning, sales projections, cash flow, succession planning, financing, fund-raising,
123.18marketing, food preparation demonstrations, and workforce training.
123.19(p) "Underserved community" means a census tract that is federally designated
123.20as a food desert by the United States Department of Agriculture, or a census tract in a
123.21low-income or moderate-income area that includes a substantial subpopulation such as
123.22the elderly or the disabled that has low supermarket access, regardless of distance, due
123.23to lack of transportation.
123.24    Subd. 2. Program established. (a) A good food access program is established within
123.25the Department of Agriculture to increase the availability of and access to affordable,
123.26nutritious, and culturally appropriate food, including fresh fruits and vegetables, for
123.27underserved communities in low-income and moderate-income areas by providing financial
123.28support and sustainable public-private projects to open, renovate, or expand the operations
123.29of grocery stores and small food retailers; expanding access to credit and reducing barriers
123.30to investment in underserved communities in low- and moderate-income areas; and to
123.31provide technical assistance, primarily for small food retailers with demonstrated need,
123.32to increase availability and sustainable sales of affordable, nutritious, and culturally
123.33appropriate food, including fresh fruits and vegetables, to underserved communities in
123.34low-income and moderate-income areas. The commissioner, in cooperation with public
123.35and private partners, shall establish and implement the program as provided in this section.
124.1(b) The good food access program shall be comprised of state or private grants, loans,
124.2or other types of financial and technical assistance for the establishment, construction,
124.3expansion of operations, or renovation of grocery stores and small food retailers to increase
124.4the availability of and access to affordable fresh produce and other nutritious, culturally
124.5appropriate food to underserved communities in low-income and moderate-income areas.
124.6    Subd. 3. Good food access account. A good food access account is established in
124.7the agricultural fund. The account consists of money appropriated by the legislature to the
124.8commissioner, as provided by law, and any other money donated, allotted, transferred,
124.9or otherwise provided to the account. Money in the account may only be expended on
124.10projects receiving financing, grants, or other financial and technical assistance as provided
124.11under this section, and shall be used, to the extent practicable, to leverage other forms of
124.12public and private financing or financial assistance for the projects.
124.13    Subd. 4. Program administration. (a) The commissioner shall be the administrator
124.14of the account for auditing purposes and shall establish program requirements and a
124.15competitive process for projects applying for financial and technical assistance.
124.16(b) The commissioner may receive money or other assets from any source, including
124.17but not limited to philanthropic foundations and financial investors, for deposit into the
124.18account, and shall direct the investment of the account and credit to the account interest
124.19and earnings from account investments.
124.20(c) Through issuance of requests for proposals, the commissioner may contract
124.21with one or more qualified economic or community development financial institutions
124.22to manage the financing component of the program and with one or more qualified
124.23organizations or public agencies with financial or other program-related expertise to
124.24manage the provision of technical assistance to project grantees.
124.25(d) Money in the account at the close of each fiscal year shall remain in the account
124.26and shall not cancel. In each biennium, the commissioner shall determine the appropriate
124.27proportion of money to be allocated to loans, grants, technical assistance, and any other
124.28types of financial assistance.
124.29(e) To encourage public-private, cross-sector collaboration and investment in the
124.30account and program and to ensure that the program intent is maintained throughout
124.31implementation, the commissioner shall convene and maintain the Good Food Access
124.32Program Advisory Committee.
124.33(f) The commissioner, in cooperation with the Good Food Access Program Advisory
124.34Committee, shall manage the program, establish program criteria, facilitate leveraging of
124.35additional public and private investment, and promote the program statewide.
125.1(g) The commissioner, in cooperation with the Good Food Access Program Advisory
125.2Committee, shall establish annual monitoring and accountability mechanisms for all
125.3projects receiving financing or other financial or technical assistance through this program.
125.4    Subd. 5. Eligible projects. (a) The commissioner, in cooperation with the program
125.5partners and advisors, shall establish project eligibility guidelines and application
125.6processes to be used to review and select project applicants for financing or other financial
125.7or technical assistance. All projects must be located in an underserved community or must
125.8serve primarily underserved communities in low-income and moderate-income areas.
125.9(b) Projects eligible for financing include, but are not limited to, new construction,
125.10renovations, expansions of operations, and infrastructure upgrades of grocery stores and
125.11small food retailers to improve the availability of and access to affordable, nutritious food,
125.12including fresh fruits and vegetables, and build capacity in areas of greatest need.
125.13(c) Projects eligible for other types of financial assistance such as grants or
125.14technical assistance are primarily projects throughout the state, including, but not limited
125.15to, feasibility studies, new construction, renovations, expansion of operations, and
125.16infrastructure upgrades of small food retailers.
125.17    Subd. 6. Qualifications for receipt of financing and other financial or technical
125.18assistance. (a) An applicant for receipt of financing through an economic or community
125.19development financial institution, or an applicant for a grant or other financial or technical
125.20assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
125.21proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
125.22or nonprofit community development organization. Each applicant must:
125.23(1) demonstrate community engagement in and support for the project;
125.24(2) demonstrate the capacity to successfully implement the project;
125.25(3) demonstrate a viable plan for long-term sustainability, including the ability to
125.26increase the availability of and access to affordable, nutritious, and culturally appropriate
125.27food, including fresh fruits and vegetables, for underserved communities in low-income
125.28and moderate-income areas; and
125.29(4) demonstrate the ability to repay the debt, to the extent that the financing requires
125.30repayment.
125.31(b) Each applicant must also agree to comply with the following conditions for a
125.32period of at least five years, except as otherwise specified in this section:
125.33(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;
125.34(2) apply to accept Special Supplemental Nutrition Program for Women, Infants,
125.35and Children (WIC) benefits and, if approved, accept WIC benefits;
126.1(3) allocate at least 30 percent of retail space for the sale of affordable, nutritious,
126.2and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat
126.3dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute
126.4beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins,
126.5consistent with nutrition standards in national guidelines described in the current United
126.6States Department of Agriculture Dietary Guidelines for Americans;
126.7(4) comply with all data collection and reporting requirements established by the
126.8commissioner; and
126.9(5) promote the hiring, training, and retention of local or regional residents from
126.10low-income and moderate-income areas that reflect area demographics, including
126.11communities of color.
126.12(c) A selected project that is a small food retailer is not subject to the allocation
126.13agreement under paragraph (b), clause (3), and may use financing, grants, or other financial
126.14or technical assistance for refrigeration, displays, or onetime capital expenditures for the
126.15promotion and sale of perishable foods, including a combination of affordable, nutritious,
126.16and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats,
126.17poultry, and fish, consistent with nutrition standards in national guidelines described in the
126.18current United States Department of Agriculture Dietary Guidelines for Americans.
126.19    Subd. 7. Additional selection criteria. In determining which qualified projects to
126.20finance, and in determining which qualified projects to provide with grants or other types
126.21of financial or technical assistance, the commissioner, in cooperation with any entities
126.22with which the commissioner contracts for those purposes and the Good Food Access
126.23Program Advisory Committee, shall also consider:
126.24(1) the level of need in the area to be served;
126.25(2) the degree to which the project requires an investment of public support, or
126.26technical assistance where applicable, to move forward, build capacity, create community
126.27impact, or be competitive;
126.28(3) the likelihood that the project will have positive economic and health impacts on
126.29the underserved community, including creation and retention of jobs for local or regional
126.30residents from low-income and moderate-income areas that reflect area demographics,
126.31including communities of color;
126.32(4) the degree to which the project will participate in state and local health department
126.33initiatives to educate consumers on nutrition, promote healthy eating and healthy weight,
126.34and support locally grown food products through programs such as Minnesota Grown; and
126.35(5) any other criteria that the commissioner, in cooperation with public and private
126.36partners, determines to be consistent with the purposes of this chapter.
127.1    Subd. 8. Eligible costs. Financing for project loans, including low-interest,
127.2zero-interest, and forgivable loans, grants, and other financial or technical assistance, may
127.3be used to support one or more of the following purposes:
127.4(1) site acquisition and preparation;
127.5(2) predevelopment costs, including but not limited to feasibility studies, market
127.6studies, and appraisals;
127.7(3) construction and build-out costs;
127.8(4) equipment and furnishings;
127.9(5) workforce or retailer training; and
127.10(6) working capital.
127.11    Subd. 9. Legislative report. The commissioner, in cooperation with any economic
127.12or community development financial institution and any other entity with which it
127.13contracts, shall submit an annual report on the good food access program by January 15 of
127.14each year to the chairs and ranking minority members of the house of representatives and
127.15senate committees and divisions with jurisdiction over agriculture policy and finance. The
127.16annual report shall include, but not be limited to, a summary of the following metrics:
127.17(1) the number and types of projects financed;
127.18(2) the amount of dollars leveraged or matched per project;
127.19(3) the geographic distribution of financed projects;
127.20(4) the number and types of technical assistance recipients;
127.21(5) any market or commodity expansion associated with increased access;
127.22(6) the demographics of the areas served;
127.23(7) the costs of the program;
127.24(8) the number of SNAP and WIC dollars spent;
127.25(9) any increase in retail square footage;
127.26(10) the number of loans or grants to minority-owned or female-owned businesses;
127.27and
127.28(11) measurable economic and health outcomes, including, but not limited to,
127.29increases in sales and consumption of locally sourced and other fresh fruits and vegetables,
127.30the number of construction and retail jobs retained or created, and any health initiatives
127.31associated with the program.

127.32    Sec. 10. [17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY
127.33COMMITTEE.
127.34    Subdivision 1. Definitions. As used in this section, the following terms have the
127.35meanings given them:
128.1(1) "program" means the good food access program under section 17.1017; and
128.2(2) "commissioner" means the commissioner of agriculture.
128.3    Subd. 2. Creation. The Good Food Access Program Advisory Committee consists
128.4of the following members, appointed by the commissioner of agriculture, unless otherwise
128.5specified:
128.6(1) the commissioners of health, employment and economic development, and
128.7human services, or their respective designees;
128.8(2) one person representing the grocery industry;
128.9(3) two people representing economic or community development, one rural
128.10member and one urban or suburban member;
128.11(4) two people representing political subdivisions of the state;
128.12(5) one person designated by the Council for Minnesotans of African Heritage;
128.13(6) one person designated by the Minnesota Indian Affairs Council;
128.14(7) one person designated by the Council on Asian Pacific Minnesotans;
128.15(8) one person designated by the Chicano Latino Affairs Council;
128.16(9) one person designated by the Minnesota Farmers Union;
128.17(10) one person representing public health experts;
128.18(11) one person representing philanthropic foundations;
128.19(12) one person representing economic or community development financial
128.20institutions;
128.21(13) one person representing the University of Minnesota Regional Sustainable
128.22Development Partnerships;
128.23(14) two people representing organizations engaged in addressing food security,
128.24one representative from a statewide hunger relief organization and one from a
128.25community-based organization;
128.26(15) one person representing immigrant farmer-led organizations;
128.27(16) one person representing small business technical assistance with experience
128.28in food retail; and
128.29(17) up to four additional members with economic development, health equity,
128.30financial, or other relevant expertise.
128.31At least half of the members must reside in or their organizations must serve rural
128.32Minnesota. The commissioner may remove members and fill vacancies as provided in
128.33section 15.059, subdivision 4.
128.34    Subd. 3. Duties. The advisory committee must advise the commissioner of
128.35agriculture on managing the program, establishing program criteria, establishing project
128.36eligibility guidelines, establishing application processes and additional selection criteria,
129.1establishing annual monitoring and accountability mechanisms, facilitating leveraging of
129.2additional public and private investments, and promoting the program statewide.
129.3    Subd. 4. Meetings. The commissioner must convene the advisory committee at
129.4least two times per year to achieve the committee's duties.
129.5    Subd. 5. Administrative support. The commissioner of agriculture must provide
129.6staffing, meeting space, and administrative services for the advisory committee.
129.7    Subd. 6. Chair. The commissioner of agriculture or the commissioner's designee
129.8shall serve as chair of the committee.
129.9    Subd. 7. Compensation. The public members of the advisory committee serve
129.10without compensation or payment of expenses.
129.11    Subd. 8. Expiration. The advisory committee does not expire.

129.12    Sec. 11. [116J.55] EMERGING ENTREPRENEUR FUND PROGRAM.
129.13    Subdivision 1. Program created. The emerging entrepreneur fund program is
129.14created to provide, through partnership with nonprofit corporations, financial and technical
129.15assistance for small businesses owned by minorities, women, veterans, or persons with
129.16disabilities, or businesses located in low-income areas in the seven-county metropolitan
129.17area. Loans and business development services must promote job creation and economic
129.18development in low-income areas and encourage private investment and strengthen
129.19businesses owned by minorities, women, veterans, and persons with disabilities.
129.20    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
129.21(b) "Commissioner" means the commissioner of employment and economic
129.22development.
129.23(c) "Department" means the Department of Employment and Economic
129.24Development.
129.25(d) "Disability-owned business" means a small business that is majority owned and
129.26operated by a person with a disability who is eligible to receive Supplemental Security
129.27Income (SSI) or Social Security Disability Insurance (SSDI) based on the person's own
129.28disability or is eligible for services from the department's vocational rehabilitation services
129.29or State Services for the Blind programs.
129.30(e) "Emerging Entrepreneur Fund Advisory Council" or "council" means the
129.31advisory council created under subdivision 9.
129.32(f) "Emerging entrepreneur fund program" or "program" means the program
129.33established under this section.
130.1(g) "Emerging entrepreneur fund qualified small business" means a small business
130.2that is majority owned and operated by a racial or ethnic minority, woman, veteran, or a
130.3person with a disability, solely or in any combination thereof.
130.4(h) "Greater Minnesota" means the area of the state that excludes the metropolitan
130.5area, as defined in section 473.121, subdivision 2.
130.6(i) "Low-income area" means:
130.7(1) those cities in the metropolitan area that have an average income that is below
130.880 percent of the median income for a four-person family as of the latest report by the
130.9United States Census Bureau; or
130.10(2) those cities in the metropolitan area that contain two or more contiguous census
130.11tracts in which the average family income is less than 80 percent of the median family
130.12income for the Twin Cities metropolitan area.
130.13(j) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.
130.14(k) "Minority-owned business" means a small business that is majority owned and
130.15operated by persons belonging to a racial or ethnic minority as defined in Minnesota
130.16Rules, part 1230.0150, subpart 24.
130.17(l) "Nonprofit corporation" means a nonprofit lender or a nonprofit technical
130.18assistance provider operating in the state.
130.19(m) "Nonprofit lender" means a nonprofit corporation that has been certified as a
130.20participating lender under subdivision 3.
130.21(n) "Nonprofit technical assistance provider" means a nonprofit corporation that
130.22provides consulting services to assist businesses under the program.
130.23(o) "Small business" means an enterprise as defined in section 645.445, subdivision 2.
130.24(p) "Veteran-owned business" means a small business that is majority owned and
130.25operated by a veteran as defined in section 197.447.
130.26(q) "Woman-owned business" means a small business that is majority owned and
130.27operated by a woman.
130.28    Subd. 3. Nonprofit lender application. (a) The commissioner shall provide funds
130.29to nonprofit lenders for the purpose of making loans to businesses that are (1) located in a
130.30low-income area or (2) emerging entrepreneur fund qualified small businesses.
130.31(b) A nonprofit corporation wishing to be certified as a nonprofit lender in the program
130.32must apply using the form prescribed by the commissioner. The application must include:
130.33(1) an assurance signed by the nonprofit lender's chair that the applicant will comply
130.34with all applicable state and federal laws, guidelines, and requirements;
131.1(2) a resolution passed by the nonprofit lender's board of directors approving the
131.2submission of an application and authorizing execution of the grant agreement if funds
131.3are made available;
131.4(3) a plan demonstrating the nonprofit lender's approach to assisting small businesses
131.5that are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
131.6person with disabilities and the expected outcomes from the corporation's participation
131.7in the program;
131.8(4) the geographic area served by the nonprofit lender's loan programs; and
131.9(5) any additional information that the commissioner deems necessary to clarify the
131.10applicant's ability to achieve the program's objectives.
131.11(c) The commissioner must enter into agreements with nonprofit lenders to fund
131.12loans under this section. The commissioner shall select and certify participating nonprofit
131.13lenders based on the organization's ability to demonstrate:
131.14(1) a board of directors or management team that includes citizens experienced in
131.15business development; financing small businesses that are majority owned and operated
131.16by a racial or ethnic minority, woman, veteran, or a person with disabilities; financing
131.17businesses located in low-income areas; and creating jobs in low-income areas;
131.18(2) the technical skills needed to analyze projects;
131.19(3) familiarity with other available public and private funding sources and economic
131.20development programs;
131.21(4) ability to initiate and implement business finance projects;
131.22(5) capacity to establish and administer a revolving loan account;
131.23(6) experience working with job referral networks that assist small businesses that
131.24are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
131.25person with disabilities or persons in low-income areas; and
131.26(7) any other criteria the commissioner deems necessary.
131.27(d) The commissioner shall solicit applications by participating and nonparticipating
131.28lenders at least every five years.
131.29    Subd. 4. Business loan criteria. (a) A participating nonprofit corporation must use
131.30the criteria in this subdivision when making loans under the program.
131.31(b) Loans must be made to small businesses that are not likely to undertake a project
131.32for which loans are sought without assistance from the program.
131.33(c) A loan may be used for a project for an emerging entrepreneur fund qualified
131.34small business (1) located anywhere in Minnesota or (2) that is not an emerging
131.35entrepreneur fund qualified small business but is located in a low-income area.
132.1(d) If a loan involves a small business that is not an emerging entrepreneur fund
132.2qualified small business, the state contribution must be matched by at least an equal
132.3amount of new private investment funded and provided by the nonprofit lender. If the loan
132.4does not exceed $50,000, private matching funds are not required.
132.5(e) The state contribution may represent up to 75 percent of the project's financing if
132.6the applicant is an emerging entrepreneur fund qualified small business with the nonprofit
132.7lender funding and providing 25 percent of the financing.
132.8(f) The minimum state contribution to a loan is $2,000, and the maximum is $150,000.
132.9(g) A loan may not be used for a retail development project unless the loan does
132.10not exceed $25,000.
132.11(h) The participating small business must agree to work with job referral networks
132.12that focus on minority, women, veteran, and disabled applicants.
132.13(i) The loan funds may be used for normal operating business expenses including
132.14but not limited to business or site acquisition, new construction, renovation, machinery
132.15and equipment, inventory, or working capital.
132.16(j) The loan funds may not be used for any of the following:
132.17(1) costs incurred by applicants not meeting the eligibility requirements in this
132.18subdivision;
132.19(2) lending, passive real estate investment purposes, or land speculation;
132.20(3) management fees, financing costs, debt consolidation, or refinancing existing
132.21business or personal debt;
132.22(4) any activity deemed illegal by federal, state, or local law or ordinance; and
132.23(5) other purposes or activities determined by the commissioner to not be in the
132.24best interests of the state.
132.25(k) An applicant must be in compliance with all applicable local, state, and federal
132.26laws and must not be subject to any judgments, liens, or other actions that would prevent
132.27loan repayment.
132.28(l) Other factors that the commissioner deems important shall be incorporated as
132.29part of the agreement between the department and the nonprofit lender required under
132.30subdivision 3.
132.31    Subd. 5. Loan administration. (a) An eligible small business may make an
132.32application to the nonprofit corporation for an emerging entrepreneur fund loan. The
132.33application must be in the form approved by the nonprofit lender and the commissioner.
132.34(b) The nonprofit corporation must review the application and may give preliminary
132.35approval for the loan based on criteria in subdivision 4. Loan applications given
132.36preliminary approval by the nonprofit lender must be forwarded to the commissioner
133.1for approval. The commissioner shall disburse funds for each approved emerging
133.2entrepreneur fund loan made by the nonprofit corporation for which funding is available.
133.3(c) In cases where the nonprofit lender fails to demonstrate that it has met the
133.4requirements of this section, the commissioner must disapprove the application. The
133.5commissioner shall inform the nonprofit corporation of the decision, in writing, stating
133.6the reasons for the denial.
133.7(d) The nonprofit lender must use a loan agreement for each emerging entrepreneur
133.8fund loan. Each agreement must identify specific loan terms and include, at a minimum, the
133.9maximum loan period, repayment terms, and default terms. The commissioner may pursue
133.10any course of action authorized by statute, rule, or loan agreement to remedy default.
133.11(1) Nonprofit lenders may structure project financing using interest or an equivalent
133.12approach using other allowable charges if the borrower has limitations or restrictions on
133.13the type of project financing used.
133.14(2) If interest is charged, the rate on a loan shall be established by the nonprofit
133.15lender, but may be no less than two percent per annum nor more than seven percent per
133.16annum or four percent above the prime rate, as published in the Wall Street Journal at the
133.17time the loan is closed, whichever is greater.
133.18(3) The nonprofit lender may charge a loan origination fee equal to or less than
133.19one percent of the loan value. The nonprofit corporation may retain the amount of the
133.20origination fee.
133.21(4) The nonprofit lender may only charge the participating small business
133.22out-of-pocket administrative expenses connected with originating the loan at the time
133.23of closing.
133.24(5) For emerging entrepreneur fund loans made by the nonprofit lender, the principal
133.25payments shall be submitted to the commissioner. These funds must be deposited in the
133.26emerging entrepreneur fund account in the special revenue fund as defined in subdivision 6.
133.27(6) The commissioner may allow the nonprofit lender to keep interest payments for
133.28a loan in order to pay for the nonprofit lender's administrative expenses associated with
133.29that loan.
133.30(7) The nonprofit lender shall attempt to have applicants provide security for the loan
133.31equal to the loan value. Security may be a lien on real property owned by the applicant or
133.32other security satisfactory to the agency such as a lien on other assets of the applicant or
133.33other individuals affiliated with the applicant or business, or a guaranty by the business
133.34owners or other individuals affiliated with the applicant or business.
133.35    Subd. 6. Special revenue account. (a) The emerging entrepreneur fund account
133.36is established as a separate account in the special revenue fund in the state treasury.
134.1The commissioner shall transfer to the account appropriations made for loans. Loan
134.2principal repayments must be deposited in the account. Any interest not used for lenders
134.3for administrative expenses and repaid to the commissioner or earned on money in the
134.4account accrues to the account. Funds remaining in the account at the end of a fiscal
134.5year are not canceled to the general fund, but remain in the account until expended. The
134.6commissioner shall manage the account.
134.7(b) Amounts in the emerging entrepreneur fund account in the special revenue fund
134.8are appropriated to the commissioner for providing, through partnership with nonprofit
134.9organizations, financial assistance for small businesses owned by minorities, women,
134.10veterans, or persons with disabilities or located in low-income areas.
134.11(c) The balance in any accounts authorized under chapter 116M shall be transferred
134.12to the emerging entrepreneur fund account in the special revenue fund. Loan repayments
134.13made under chapter 116M shall be transferred to the emerging entrepreneur fund account
134.14in the special revenue fund.
134.15    Subd. 7. Business development technical assistance. (a) The commissioner shall
134.16award grants to organizations to provide technical assistance services.
134.17(b) The commissioner shall select participating nonprofit technical assistance
134.18providers for competitive grants under this subdivision based on the organization's ability
134.19to provide services to small businesses owned by minorities, women, veterans, or persons
134.20with disabilities, or businesses located in low-income areas by demonstrating:
134.21(1) a need for funding;
134.22(2) clear and measurable activities and outcomes within a service delivery area
134.23and schedule;
134.24(3) partnerships that will support the service delivery;
134.25(4) organizational capacity and related experience providing technical assistance;
134.26(5) a clear and detailed budget;
134.27(6) methods to evaluate the success of reaching proposed outcomes; and
134.28(7) any additional information that the commissioner finds is necessary to clarify
134.29the applicant's ability to achieve the program's objectives.
134.30    Subd. 8. Reporting requirements. (a) A nonprofit corporation that receives
134.31funding from the emerging entrepreneur fund for loans or technical services must report to
134.32the commissioner by March 1 of each year in a format prescribed by the commissioner.
134.33The report shall include the information in this subdivision and any other information
134.34deemed necessary by the commissioner.
134.35(b) Nonprofit corporations that receive funding to provide lending shall submit a
134.36report containing: a description of all projects supported by the program; an account of
135.1any loans made during the calendar year; the project's assets and liabilities; an explanation
135.2of administrative expenses; and the project's impact on small businesses owned by
135.3minorities, women, veterans, or persons with disabilities.
135.4(c) Nonprofit corporations that receive funding to provide lending shall provide
135.5for an independent annual audit to be performed in accordance with generally accepted
135.6accounting practices and auditing standards and submit a copy of each annual audit report
135.7to the commissioner.
135.8(d) Nonprofit corporations that receive a grant to provide business development
135.9technical assistance shall provide an account of the number of businesses served during
135.10the calendar year, the program's impact on small businesses owned by minorities, women,
135.11veterans, or persons with disabilities, and an explanation of administrative expenses.
135.12    Subd. 9. Emerging Entrepreneur Fund Advisory Council. (a) The Emerging
135.13Entrepreneur Fund Advisory Council is created and consists of the commissioner, the
135.14chair of the Metropolitan Council, the commissioner of the Department of Human Rights,
135.15and ten members from the general public appointed by the governor. Appointments must
135.16ensure balanced geographic representation. At least half of the public members must have
135.17experience working to address racial disparities.
135.18(b) The membership terms, compensation, removal, and filling of vacancies of
135.19public members of the council are as provided in section 15.0575.
135.20(c) The commissioner shall serve as chair of the council. The council may elect other
135.21officers as necessary from its members.
135.22(d) The commissioner shall provide staff, consultant support, materials, and
135.23administrative services necessary for the council's activities. The emerging entrepreneur
135.24fund account in the special revenue fund may be used for council expenses.
135.25(e) The governor must make initial appointments to the council by November 15,
135.262016, and the chair must convene the first meeting of the council by December 15, 2016.
135.27EFFECTIVE DATE.This section is effective the day following final enactment.

135.28    Sec. 12. [116L.562] YOUTH-AT-WORK GRANT PROGRAM.
135.29    Subdivision 1. Establishment. The commissioner shall award grants to eligible
135.30organizations for the purpose of providing workforce development and training
135.31opportunities to economically disadvantaged or at-risk youth ages 14 to 24.
135.32    Subd. 2. Definitions. For purposes of this section:
135.33(1) "eligible organization" or "eligible applicant" means a local government unit,
135.34nonprofit organization, community action agency, or a public school district;
136.1(2) "at-risk youth" means youth classified as at-risk under section 116L.56,
136.2subdivision 2; and
136.3(3) "economically disadvantaged" means youth who are economically disadvantaged
136.4as defined in United States Code, title 29, section 1503.
136.5    Subd. 3. Competitive grant awards. (a) In awarding competitive grants, priority
136.6shall be given to programs that:
136.7(1) provide students with information about education and training requirements for
136.8careers in high-growth, in-demand occupations;
136.9(2) serve youth from communities of color who are under represented in the
136.10workforce; or
136.11(3) serve youth with disabilities.
136.12(b) Eligible organizations must have demonstrated effectiveness in administering
136.13youth workforce programs and must leverage nonstate or private sector funds.
136.14(c) New eligible applicants must be youth-serving organizations with significant
136.15capacity and demonstrable youth development experience and outcomes to operate a
136.16youth workforce development project.
136.17(d) If a program is not operated by a local unit of government or a workforce
136.18development board, the grant recipient must coordinate the program with the local
136.19workforce development board.
136.20    Subd. 4. Reports. Each grant recipient shall report to the commissioner in a format
136.21to be determined by commissioner.

136.22    Sec. 13. Minnesota Statutes 2014, section 116L.99, is amended to read:
136.23116L.99 WOMEN AND HIGH-WAGE, HIGH-DEMAND,
136.24NONTRADITIONAL JOBS GRANT PROGRAM.
136.25    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
136.26have the meanings given.
136.27(b) "Commissioner" means the commissioner of employment and economic
136.28development.
136.29(c) ''Eligible organization'' includes, but is not limited to:
136.30(1) community-based organizations experienced in serving women;
136.31(2) employers;
136.32(3) business and trade associations;
136.33(4) labor unions and employee organizations;
136.34(5) registered apprenticeship programs;
136.35(6) secondary and postsecondary education institutions located in Minnesota; and
137.1(7) workforce and economic development agencies.
137.2(d) "High-wage, high-demand" means occupations that represent at least 0.1 percent
137.3of total employment in the base year, have an annual median salary which is higher than
137.4the average for the current year, and are projected to have more total openings as a share
137.5of employment than the average.
137.6(e) "Low-income" means income less than 200 percent of the federal poverty
137.7guideline adjusted for a family size of four.
137.8(f) "Nontraditional occupations'' means those occupations in which women make
137.9up less than 25 percent of the workforce as defined under United States Code, title 20,
137.10section 2302.
137.11(g) "Registered apprenticeship program'' means a program registered under United
137.12States Code, title 29, section 50.
137.13(h) "STEM" means science, technology, engineering, and math.
137.14(i) "Women of color" means females age 18 and older who are American Indian,
137.15Asian, Black, or Hispanic.
137.16(j) "Girls of color" means females under age 18 who are American Indian, Asian,
137.17Black, or Hispanic.
137.18    Subd. 2. Grant program. The commissioner shall establish the women and
137.19high-wage, high-demand, nontraditional jobs grant program to increase the number of
137.20women in high-wage, high-demand, nontraditional occupations. The commissioner shall
137.21make grants to eligible organizations for programs that encourage and assist women to enter
137.22high-wage, high-demand, nontraditional occupations including but not limited to those in
137.23the skilled trades, science, technology, engineering, and math (STEM) STEM occupations.
137.24The commissioner must give priority to programs that encourage and assist women of color
137.25to enter high-wage, high-demand, nontraditional occupations and STEM occupations.
137.26    Subd. 3. Use of funds. (a) Grant funds awarded under this section may be used for:
137.27(1) recruitment, preparation, placement, and retention of women, including women
137.28of color, low-income women and women over 50 years old, in registered apprenticeships,
137.29postsecondary education programs, on-the-job training, and permanent employment in
137.30high-wage, high-demand, nontraditional occupations;
137.31(2) secondary or postsecondary education or other training to prepare women
137.32to succeed in high-wage, high-demand, nontraditional occupations. Activities under
137.33this clause may be conducted by the grantee or in collaboration with another institution,
137.34including but not limited to a public or private secondary or postsecondary school;
137.35(3) innovative, hands-on, best practices that stimulate interest in high-wage,
137.36high-demand, nontraditional occupations among girls, increase awareness among
138.1girls about opportunities in high-wage, high-demand, nontraditional occupations, or
138.2increase access to secondary programming leading to jobs in high-wage, high-demand,
138.3nontraditional occupations. Best practices include but are not limited to mentoring,
138.4internships, or apprenticeships for girls in high-wage, high-demand, nontraditional
138.5occupations;
138.6(4) training and other staff development for job seeker counselors and Minnesota
138.7family investment program (MFIP) caseworkers on opportunities in high-wage,
138.8high-demand, nontraditional occupations;
138.9(5) incentives for employers and sponsors of registered apprenticeship programs
138.10to retain women in high-wage, high-demand, nontraditional occupations for more than
138.11one year;
138.12(6) training and technical assistance for employers to create a safe and healthy
138.13workplace environment designed to retain and advance women, including best practices
138.14for addressing sexual harassment, and to overcome gender inequity among employers
138.15and registered apprenticeship programs;
138.16(7) public education and outreach activities to overcome stereotypes about women
138.17in high-wage, high-demand, nontraditional occupations, including the development of
138.18educational and marketing materials; and
138.19(8) services to support for women in high-wage, high-demand, nontraditional
138.20occupations including but not limited to assistance with balancing work responsibilities;
138.21skills training and education; family caregiving; financial assistance for child care,
138.22transportation, and safe and stable housing; workplace issues resolution; and access to
138.23advocacy assistance and services; and
138.24(9) recruitment, participation, and support of girls of color in approved training
138.25programs or a valid apprenticeship program subject to section 181A.07, subdivision 7.
138.26(b) Grant applications must include detailed information about how the applicant
138.27plans to:
138.28(1) increase women's participation in high-wage, high-demand occupations in which
138.29women are currently underrepresented in the workforce;
138.30(2) comply with the requirements under subdivision 3; and
138.31(3) use grant funds in conjunction with funding from other public or private
138.32sources.; and
138.33(4) collaborate with existing, successful programs for training, education,
138.34recruitment, preparation, placement, and retention of women of color in high-wage,
138.35high-demand, nontraditional occupations and STEM occupations.
139.1(c) In awarding grants under this subdivision, the commissioner shall give priority
139.2to eligible organizations:
139.3(1) with demonstrated success in recruiting and preparing women, especially
139.4low-income women, women of color, and women over 50 years old, for high-wage,
139.5high-demand, nontraditional occupations; and
139.6(2) that leverage additional public and private resources.
139.7(d) At least 50 percent of total grant funds must be awarded to programs providing
139.8services and activities targeted to low-income women and women of color.
139.9(e) The commissioner of employment and economic development in conjunction
139.10with the commissioner of labor and industry shall monitor the use of funds under this
139.11section, collect and compile information on the activities of other state agencies and public
139.12or private entities that have purposes similar to those under this section, and identify other
139.13public and private funding available for these purposes.
139.14(f) By January 15, 2019, and each January 15 thereafter, the commissioner must
139.15submit a report to the chairs and ranking minority members of the committees of the
139.16house of representatives and the senate having jurisdiction over workforce development
139.17that details the use of grant funds. If data is available, the report must contain data that is
139.18disaggregated by race, cultural groups, family income, age, geographical location, migrant
139.19or foreign immigrant status, primary language, whether the participant is an English
139.20learner under Minnesota Statutes, section 124D.59, disability, and status of homelessness.

139.21    Sec. 14. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
139.22    Subd. 2. Board. "Board" means the Urban Minnesota Initiative Board.

139.23    Sec. 15. Minnesota Statutes 2014, section 116M.14, is amended by adding a
139.24subdivision to read:
139.25    Subd. 3a. Department. "Department" means the Department of Employment and
139.26Economic Development.

139.27    Sec. 16. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
139.28    Subd. 4. Low-income area. "Low-income area" means:
139.29(1) Minneapolis, St. Paul;
139.30(2) those cities in the metropolitan area as defined in section 473.121, subdivision
139.312
, that have an average income that is below 80 percent of the median income for a
139.32four-person family as of the latest report by the United States Census Bureau; and
140.1(3) (2) those cities in the metropolitan area, which contain two or more contiguous
140.2census tracts in which the average family income is less than 80 percent of the median
140.3family income for the Twin Cities metropolitan area as of the latest report by the United
140.4States Census Bureau.

140.5    Sec. 17. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.6subdivision to read:
140.7    Subd. 4a. Low-income person. "Low-income person" means a person who has an
140.8annual income, adjusted for family size, of not more than 80 percent of the area median
140.9family income for the Twin Cities metropolitan area as of the latest report by the United
140.10States Census Bureau.

140.11    Sec. 18. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.12subdivision to read:
140.13    Subd. 4b. Metropolitan area. "Metropolitan area" has the meaning given in section
140.14473.121, subdivision 2.

140.15    Sec. 19. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.16subdivision to read:
140.17    Subd. 6. Minority person. "Minority person" means a person belonging to a racial
140.18or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.

140.19    Sec. 20. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.20subdivision to read:
140.21    Subd. 7. Program. "Program" means the Minnesota Initiative program created
140.22by this chapter.

140.23    Sec. 21. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
140.24    Subdivision 1. Creation; membership Membership. The Urban Minnesota
140.25Initiative Board is created and consists of the commissioner of employment and economic
140.26development, the chair of the Metropolitan Council, the commissioner of human rights,
140.27and eight 12 members from the general public appointed by the governor. Six Nine of the
140.28public members must be representatives from minority business enterprises. No more than
140.29four six of the public members may be of one gender. Appointments must ensure balanced
140.30geographic representation. At least half of the public members must have experience
141.1working to address racial income disparities. All public members must be experienced in
141.2business or economic development.

141.3    Sec. 22. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
141.4    Subd. 2. Technical assistance. The board through the department, shall provide
141.5technical assistance and development information services to state agencies, regional
141.6agencies, special districts, local governments, and the public, with special emphasis on
141.7minority communities informational outreach about the program to lenders, nonprofit
141.8corporations, and low-income and minority communities throughout the state that support
141.9the development of business enterprises and entrepreneurs.

141.10    Sec. 23. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
141.11    Subd. 4. Reports. The board shall submit an annual report to the legislature of an
141.12accounting of loans made under section 116M.18, including information on loans to
141.13minority business enterprises made, the number of jobs created by the program, the impact
141.14on low-income areas, and recommendations concerning minority business development
141.15and jobs for persons in low-income areas.

141.16    Sec. 24. Minnesota Statutes 2014, section 116M.18, is amended to read:
141.17116M.18 URBAN CHALLENGE GRANTS MINNESOTA INITIATIVE
141.18PROGRAM.
141.19    Subdivision 1. Establishment. The Minnesota Initiative program is established to
141.20award grants to nonprofit corporations to fund loans to businesses owned by minority or
141.21low-income persons or women.
141.22    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand,
141.23loans shall be made so that an approximately equal dollar amount of loans are made to
141.24businesses in the metropolitan area as in the nonmetropolitan area. If funds remain after
141.25the ninth month of the fiscal year, those funds shall revert to the general loan pool and may
141.26be lent in any part of the state.
141.27    Subdivision 1 Subd. 1b. Eligibility rules Grants. The board shall make urban
141.28challenge grants for use in low-income areas to nonprofit corporations to fund loans to
141.29businesses owned by minority or low-income persons or women, to encourage private
141.30investment, to provide jobs for minority and low-income persons and others in low-income
141.31areas, to create and strengthen minority business enterprises, and to promote economic
141.32development in a low-income area. The board shall adopt rules to establish criteria for
141.33determining loan eligibility.
142.1    Subd. 2. Challenge Grant eligibility; nonprofit corporation. (a) The board
142.2may enter into agreements with nonprofit corporations to fund and guarantee loans the
142.3nonprofit corporation makes in low-income areas under subdivision 4. A corporation must
142.4demonstrate that to businesses owned by minority or low-income persons or women. The
142.5board shall evaluate applications from nonprofit corporations. In evaluating applications,
142.6the board must consider, among other things, whether the nonprofit corporation:
142.7(1) its has a board of directors that includes citizens experienced in business
142.8and community development, minority business enterprises, addressing racial income
142.9disparities, and creating jobs in low-income areas for low-income and minority persons;
142.10(2) it has the technical skills to analyze projects;
142.11(3) it is familiar with other available public and private funding sources and
142.12economic development programs;
142.13(4) it can initiate and implement economic development projects;
142.14(5) it can establish and administer a revolving loan account or has operated a
142.15revolving loan account; and
142.16(6) it can work with job referral networks which assist minority and other persons in
142.17low-income areas low-income persons; and
142.18(7) has established relationships with minority communities.
142.19(b) The department shall review existing agreements with nonprofit corporations
142.20every five years and may renew or terminate the agreement based on the review. In making
142.21its review, the department shall consider, among other criteria, the criteria in paragraph (a).
142.22    Subd. 3. Revolving loan fund. (a) The board shall establish a revolving loan fund to
142.23make grants to nonprofit corporations for the purpose of making loans and loan guarantees
142.24to new and expanding businesses in a low-income area to promote owned by minority
142.25or low-income persons or women and to support minority business enterprises and job
142.26creation for minority and other persons in low-income areas low-income persons.
142.27(b) Nonprofit corporations that receive grants from the department under the
142.28program must establish a commissioner-certified revolving loan fund for the purpose
142.29of making eligible loans.
142.30(c) Eligible business enterprises include, but are not limited to, technologically
142.31innovative industries, value-added manufacturing, and information industries. Loan
142.32applications given preliminary approval by the nonprofit corporation must be forwarded to
142.33the board for approval. The commissioner must give final approval for each loan or loan
142.34guarantee made by the nonprofit corporation. The amount of the state funds contributed to
142.35any loan or loan guarantee may not exceed 50 percent of each loan.
143.1    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans
143.2made or guaranteed by nonprofit corporations under the urban challenge grant program.
143.3(b) Loans or guarantees must be made to businesses that are not likely to undertake
143.4a project for which loans are sought without assistance from the urban challenge grant
143.5program.
143.6(c) A loan or guarantee must be used for a project designed to benefit persons in
143.7low-income areas through the creation of job or business opportunities for them to support
143.8a business owned by a minority or a low-income person or woman. Priority must be
143.9given for loans to the lowest income areas.
143.10(d) The minimum state contribution to a loan or guarantee is $5,000 and the
143.11maximum is $150,000.
143.12(e) The state contribution must be matched by at least an equal amount of new
143.13private investment.
143.14(f) A loan may not be used for a retail development project.
143.15(g) The business must agree to work with job referral networks that focus on
143.16minority and low-income applicants from low-income areas.
143.17    Subd. 4a. Microenterprise loan. Urban challenge Program grants may be
143.18used to make microenterprise loans to small, beginning businesses, including a sole
143.19proprietorship. Microenterprise loans are subject to this section except that:
143.20(1) they may also be made to qualified retail businesses;
143.21(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000
143.22$35,000; and
143.23(3) in a low-income area, they may be made for a minimum of $5,000 and a
143.24maximum of $50,000; and
143.25(3) (4) they do not require a match.
143.26    Subd. 5. Revolving fund administration; rules. (a) The board shall establish a
143.27minimum interest rate for loans or guarantees to ensure that necessary loan administration
143.28costs are covered.
143.29(b) Loan repayment amounts equal to one-half of the principal and interest must be
143.30deposited in a revolving fund created by the board for challenge grants. The remaining
143.31amount of the loan repayment may be paid to the department for deposit in the revolving
143.32loan fund. Loan interest payments must be deposited in a revolving loan fund created
143.33by the nonprofit corporation originating the loan being repaid for further distribution,
143.34consistent with the loan criteria specified in subdivision 4 of this section.
143.35(c) Administrative expenses of the board and nonprofit corporations with whom
143.36the board enters into agreements under subdivision 2, including expenses incurred by
144.1a nonprofit corporation in providing financial, technical, managerial, and marketing
144.2assistance to a business enterprise receiving a loan under subdivision 4, may be paid out of
144.3the interest earned on loans and out of interest earned on money invested by the state Board
144.4of Investment under section 116M.16, subdivision 2, as may be provided by the board.
144.5    Subd. 6. Rules. The board shall adopt rules to implement this section.
144.6    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
144.7corporation with which it has entered into an agreement under subdivision 1 2. These
144.8loans must be used to support a new or expanding business. This support may include
144.9such forms of financing as the sale of goods to the business on installment or deferred
144.10payments, lease purchase agreements, or royalty investments in the business. The interest
144.11rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
144.12the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
144.13nonprofit corporation may charge a loan origination fee equal to or less than one percent
144.14of the loan value. The nonprofit corporation may retain the amount of the origination fee.
144.15The nonprofit corporation must provide at least an equal match to the loan received by the
144.16board. The maximum loan available to the nonprofit corporation under this subdivision is
144.17$50,000. Loans made to the nonprofit corporation under this subdivision may be made
144.18without interest. Repayments made by the nonprofit corporation must be deposited in the
144.19revolving fund created for urban initiative program grants.
144.20    Subd. 7. Cooperation. A nonprofit corporation that receives an urban challenge a
144.21program grant shall cooperate with other organizations, including but not limited to,
144.22community development corporations, community action agencies, and the Minnesota
144.23small business development centers.
144.24    Subd. 8. Reporting requirements. A nonprofit corporation that receives a
144.25challenge program grant shall:
144.26(1) submit an annual report to the board by September March 30 of each year that
144.27includes a description of projects businesses supported by the urban challenge grant
144.28program, an account of loans made during the calendar year, the program's impact on
144.29minority business enterprises and job creation for minority persons and low-income
144.30persons in low-income areas, the source and amount of money collected and distributed by
144.31the urban challenge grant program, the program's assets and liabilities, and an explanation
144.32of administrative expenses; and
144.33(2) provide for an independent annual audit to be performed in accordance with
144.34generally accepted accounting practices and auditing standards and submit a copy of each
144.35annual audit report to the board.

145.1    Sec. 25. Minnesota Statutes 2014, section 124D.55, is amended to read:
145.2124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
145.3    The commissioner shall pay 60 percent of the fee that is charged to an eligible
145.4individual for the full battery of a general education development (GED) test, but not
145.5more than $40 for an eligible individual.
145.6For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee that is
145.7charged to an eligible individual for the full battery of a general education development
145.8(GED) test, but not more than the cost of one full battery per year for any individual.

145.9    Sec. 26. [136A.123] MINNESOTA'S FUTURE TEACHERS GRANT PROGRAM.
145.10    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
145.11have the meanings given.
145.12(b) "Eligible institution" means a postsecondary institution under section 136A.101,
145.13subdivision 4, located in Minnesota.
145.14(c) "High needs area" means a high needs area as defined by the Department of
145.15Education biannual teacher supply and demand report under section 127A.05, subdivision
145.166, or other surveys conducted by the Department of Education that provide indicators for
145.17teacher supply and demand needs not captured by the teacher supply and demand report.
145.18(d) "High needs school" means a school that:
145.19(1) has been designated a low performing school under the most recently passed
145.20version of the federal Elementary and Secondary Education Act; or
145.21(2) is above the state average in concentration of students qualifying for free and
145.22reduced-price lunch.
145.23(e) "Qualified candidate" means a student enrolled in an eligible institution with an
145.24approved teacher preparation program that meets the program eligibility requirements in
145.25subdivision 3.
145.26    Subd. 2. Program requirements. (a) The commissioner of the Office of Higher
145.27Education shall award grants to eligible institutions to facilitate undergraduate and
145.28graduate students, beginning in the 2017-2018 academic year, to become licensed
145.29teachers. The commissioner of the Office of Higher Education shall determine the
145.30maximum grant amount per institution and the maximum amount of the grant available
145.31for administrative and support services.
145.32(b) Grants must be awarded to programs at eligible institutions that demonstrate:
145.33(1) a majority of the grant will be used to reduce the tuition, fees, and costs for
145.34qualified candidates;
146.1(2) the ability of the program to perform outreach activities to encourage historically
146.2underserved students, students of color, and students interested in teaching in a high needs
146.3area or high needs school to participate in the program;
146.4(3) participating students will be provided with support services to ensure persistence
146.5and completion in their program and successful teacher licensure;
146.6(4) participating students will be provided with experiential opportunities to explore
146.7teacher and educator experiences;
146.8(5) participating students will provide a letter of intent, demonstrating their interest
146.9in teaching in a high needs area or high needs school, upon completing their teacher
146.10preparation program and receiving their teaching license.
146.11(c) A grantee must be provided mentoring. Mentoring must include, but is not
146.12limited to:
146.13(1) communicating frequently and consistently throughout program participation;
146.14(2) developing a personalized student success plan, which must include concrete
146.15steps towards program completion and job placement and identify and make contingency
146.16plans for potential obstacles to program completion;
146.17(3) connecting grantees to on-campus resources and personal development
146.18opportunities; and
146.19(4) financial planning.

146.20    Sec. 27. Minnesota Statutes 2014, section 256D.051, is amended to read:
146.21256D.051 FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.
146.22    Subdivision 1. Food stamp employment and training program. The
146.23commissioner shall implement a food stamp employment and training program in order to
146.24meet the food stamp employment and training participation requirements of the United
146.25States Department of Agriculture. Unless exempt under subdivision 3a, each adult
146.26recipient in the unit must participate in the food stamp employment and training program
146.27each month that the person is eligible for food stamps. The person's participation in
146.28food stamp employment and training services must begin no later than the first day of
146.29the calendar month following the determination of eligibility for food stamps. With the
146.30county agency's consent, and To the extent of available resources, the person a recipient
146.31may voluntarily continue volunteer to participate in food stamp employment and training
146.32services for up to three additional consecutive months immediately following termination
146.33of food stamp benefits in order to complete the provisions of the person's employability
146.34development plan. A recipient who volunteers for employment and training services is
146.35subject to work requirements in Code of Federal Regulations, title 7, section 273.7.
147.1    Subd. 1a. Notices and sanctions. (a) At the time the county agency notifies the
147.2household that it is eligible for food stamps, the county agency must: (1) inform all
147.3mandatory employment and training services participants as identified in subdivision 1
147.4in the household that they must comply with all food stamp employment and training
147.5program requirements each month, including the requirement to attend an initial
147.6orientation to the food stamp employment and training program and that food stamp
147.7eligibility will end unless the participants comply with the requirements specified in the
147.8notice adults of the opportunity to volunteer for and participate in SNAP employment
147.9and training activities; (2) provide plain language material that explains the benefits of
147.10voluntary participation; and (3) provide the name and address of the county's designated
147.11employment and training service provider.
147.12(b) A participant who fails without good cause to comply with food stamp
147.13employment and training program requirements of this section, including attendance
147.14at orientation, will lose food stamp eligibility for the following periods: The county
147.15must inform all recipients who are able-bodied adults without dependents that SNAP
147.16benefits are time limited to three months in a 36-month period from the first full month
147.17of application unless the recipient meets the work requirements in Code of Federal
147.18Regulations, title 7, section 273.7.
147.19(1) for the first occurrence, for one month or until the person complies with the
147.20requirements not previously complied with, whichever is longer;
147.21(2) for the second occurrence, for three months or until the person complies with the
147.22requirements not previously complied with, whichever is longer; or
147.23(3) for the third and any subsequent occurrence, for six months or until the person
147.24complies with the requirements not previously complied with, whichever is longer.
147.25If the participant is not the food stamp head of household, the person shall be
147.26considered an ineligible household member for food stamp purposes. If the participant is
147.27the food stamp head of household, the entire household is ineligible for food stamps as
147.28provided in Code of Federal Regulations, title 7, section 273.7(g). "Good cause" means
147.29circumstances beyond the control of the participant, such as illness or injury, illness or
147.30injury of another household member requiring the participant's presence, a household
147.31emergency, or the inability to obtain child care for children between the ages of six and
147.3212 or to obtain transportation needed in order for the participant to meet the food stamp
147.33employment and training program participation requirements.
147.34(c) The county agency shall mail or hand deliver a notice to the participant not later
147.35than five days after determining that the participant has failed without good cause to
147.36comply with food stamp employment and training program requirements which specifies
148.1the requirements that were not complied with, the factual basis for the determination of
148.2noncompliance, and the right to reinstate eligibility upon a showing of good cause for
148.3failure to meet the requirements. The notice must ask the reason for the noncompliance
148.4and identify the participant's appeal rights. The notice must request that the participant
148.5inform the county agency if the participant believes that good cause existed for the failure
148.6to comply and must state that the county agency intends to terminate eligibility for food
148.7stamp benefits due to failure to comply with food stamp employment and training program
148.8requirements.
148.9(d) If the county agency determines that the participant did not comply during the
148.10month with all food stamp employment and training program requirements that were in
148.11effect, and if the county agency determines that good cause was not present, the county
148.12must provide a ten-day notice of termination of food stamp benefits. The amount of
148.13food stamps that are withheld from the household and determination of the impact of
148.14the sanction on other household members is governed by Code of Federal Regulations,
148.15title 7, section 273.7.
148.16(e) The participant may appeal the termination of food stamp benefits under the
148.17provisions of section 256.045.
148.18    Subd. 2. County agency duties. (a) The county agency shall provide to food stamp
148.19recipients a food stamp employment and training program. The program must include:
148.20(1) orientation to the food stamp employment and training program;
148.21(2) an individualized employability assessment and an individualized employability
148.22development plan that includes assessment of literacy, ability to communicate in the
148.23English language, educational and employment history, and that estimates the length of
148.24time it will take the participant to obtain employment. The employability assessment and
148.25development plan must be completed in consultation with the participant, must assess the
148.26participant's assets, barriers, and strengths, and must identify steps necessary to overcome
148.27barriers to employment. A copy of the employability development plan must be provided
148.28to the registrant;
148.29(3) referral to available accredited remedial or skills training or career pathway
148.30programs designed to address participant's barriers to employment;
148.31(4) referral to available programs that provide subsidized or unsubsidized
148.32employment as necessary;
148.33(5) a job search program, including job seeking skills training; and
148.34(6) other activities, to the extent of available resources designed by the county
148.35agency to prepare the participant for permanent employment.
149.1In order to allow time for job search, the county agency may not require an individual
149.2to participate in the food stamp employment and training program for more than 32 hours
149.3a week. The county agency shall require an individual to spend at least eight hours a week
149.4in job search or other food stamp employment and training program activities.
149.5(b) The county agency shall prepare an annual plan for the operation of its food
149.6stamp employment and training program. The plan must be submitted to and approved by
149.7the commissioner of employment and economic development. The plan must include:
149.8(1) a description of the services to be offered by the county agency;
149.9(2) a plan to coordinate the activities of all public and private nonprofit entities
149.10providing employment-related services in order to avoid duplication of effort and to
149.11provide a wide range of allowable activities and services more efficiently;
149.12(3) a description of the factors that will be taken into account when determining a
149.13client's employability development plan; and
149.14(4) provisions to ensure that the county agency's employment and training service
149.15provider provides providers provide each recipient with an orientation, employability
149.16assessment, and employability development plan as specified in paragraph (a), clauses (1)
149.17and (2), within 30 days of the recipient's eligibility for assistance request to participate in
149.18employment and training.
149.19    Subd. 2a. Duties of commissioner. In addition to any other duties imposed by law,
149.20the commissioner shall:
149.21(1) based on this section and section 256D.052 and Code of Federal Regulations,
149.22title 7, section 273.7, supervise the administration of food stamp employment and training
149.23services to county agencies;
149.24(2) disburse money appropriated for food stamp employment and training services
149.25to county agencies based upon the county's costs as specified in section 256D.051,
149.26subdivision 6c
;
149.27(3) accept and supervise the disbursement of any funds that may be provided by the
149.28federal government or from other sources for use in this state for food stamp employment
149.29and training services;
149.30(4) cooperate with other agencies including any agency of the United States or of
149.31another state in all matters concerning the powers and duties of the commissioner under
149.32this section and section 256D.052; and
149.33(5) in cooperation with the commissioner of employment and economic
149.34development, ensure that each component of an employment and training program carried
149.35out under this section is delivered through a statewide workforce development system,
149.36unless the component is not available locally through such a system.
150.1    Subd. 3. Participant duties. In order to receive food stamp assistance employment
150.2and training services, a registrant participant who volunteers shall: (1) cooperate with
150.3the county agency in all aspects of the food stamp employment and training program;
150.4and (2) accept any suitable employment, including employment offered through the Job
150.5Training Partnership Act, and other employment and training options; and (3) participate
150.6in food stamp employment and training activities assigned by the county agency. The
150.7county agency may terminate employment and training assistance to a registrant voluntary
150.8participant who fails to cooperate in the food stamp employment and training program, as
150.9provided in subdivision 1a unless good cause is provided.
150.10    Subd. 3a. Requirement to register work. (a) To the extent required under Code
150.11of Federal Regulations, title 7, section 273.7(a), each applicant for and recipient of
150.12food stamps is required to register for work as a condition of eligibility for food stamp
150.13benefits. Applicants and recipients are registered by signing an application or annual
150.14reapplication for food stamps, and must be informed that they are registering for work
150.15by signing the form.
150.16(b) The commissioner shall determine, within federal requirements, persons required
150.17to participate in the food stamp employment and training (FSET) program.
150.18(c) The following food stamp recipients are exempt from mandatory participation in
150.19food stamp employment and training services:
150.20(1) recipients of benefits under the Minnesota family investment program, Minnesota
150.21supplemental aid program, or the general assistance program;
150.22(2) a child;
150.23(3) a recipient over age 55;
150.24(4) a recipient who has a mental or physical illness, injury, or incapacity which is
150.25expected to continue for at least 30 days and which impairs the recipient's ability to obtain
150.26or retain employment as evidenced by professional certification or the receipt of temporary
150.27or permanent disability benefits issued by a private or government source;
150.28(5) a parent or other household member responsible for the care of either a
150.29dependent child in the household who is under age six or a person in the household who is
150.30professionally certified as having a physical or mental illness, injury, or incapacity. Only
150.31one parent or other household member may claim exemption under this provision;
150.32(6) a recipient receiving unemployment insurance or who has applied for
150.33unemployment insurance and has been required to register for work with the Department
150.34of Employment and Economic Development as part of the unemployment insurance
150.35application process;
151.1(7) a recipient participating each week in a drug addiction or alcohol abuse treatment
151.2and rehabilitation program, provided the operators of the treatment and rehabilitation
151.3program, in consultation with the county agency, recommend that the recipient not
151.4participate in the food stamp employment and training program;
151.5(8) a recipient employed or self-employed for 30 or more hours per week at
151.6employment paying at least minimum wage, or who earns wages from employment equal
151.7to or exceeding 30 hours multiplied by the federal minimum wage; or
151.8(9) a student enrolled at least half time in any school, training program, or institution
151.9of higher education. When determining if a student meets this criteria, the school's,
151.10program's or institution's criteria for being enrolled half time shall be used.
151.11    Subd. 3b. Orientation. The county agency or its employment and training service
151.12provider providers must provide an orientation to food stamp employment and training
151.13services to each nonexempt food stamp recipient within 30 days of the date that food
151.14stamp eligibility is determined recipient within 30 days of the date that they agree to
151.15volunteer. The orientation must inform the participant of the requirement to participate
151.16benefits of participating in services, the date, time, and address to report to for services,
151.17the name and telephone number of the food stamp employment and training service
151.18provider, the consequences for failure without good cause to comply, the services and
151.19support services available through food stamp employment and training services and other
151.20providers of similar services, and must encourage the participant to view the food stamp
151.21program as a temporary means of supplementing the family's food needs until the family
151.22achieves self-sufficiency through employment. The orientation may be provided through
151.23audio-visual methods, but the participant must have the opportunity for face-to-face
151.24interaction with county agency staff.
151.25    Subd. 6b. Federal reimbursement. Federal financial participation from the United
151.26States Department of Agriculture for food stamp employment and training expenditures
151.27that are eligible for reimbursement through the food stamp employment and training
151.28program are dedicated funds and are annually appropriated to the commissioner of human
151.29services for the operation of the food stamp employment and training program. Funds
151.30appropriated under this subdivision must be used for skill attainment through employment,
151.31training, and support services for food stamp participants. Up to ten percent of the funds
151.32may be used for the administrative costs of capturing additional federal reimbursement
151.33dollars. By February 15, 2017, the commissioner shall report to the legislative committees
151.34having jurisdiction over the food stamp program on the progress of securing additional
151.35federal reimbursements dollars. Federal financial participation for the nonstate portion of
151.36food stamp employment and training costs must be paid to the county agency or services
152.1provider that incurred the costs at a rate to be determined by the Departments of Human
152.2Services and Employment and Economic Development.
152.3    Subd. 6c. Program funding. Within the limits of available resources, the
152.4commissioner shall reimburse the actual costs of county agencies and their employment
152.5and training service providers for the provision of food stamp employment and training
152.6services, including participant support services, direct program services, and program
152.7administrative activities. The cost of services for each county's food stamp employment and
152.8training program shall not exceed the annual allocated amount. No more than 15 percent of
152.9program funds may be used for administrative activities. The county agency may expend
152.10county funds in excess of the limits of this subdivision without state reimbursement.
152.11Program funds shall be allocated based on the county's average number of food
152.12stamp cases as compared to the statewide total number of such cases. The average number
152.13of cases shall be based on counts of cases as of March 31, June 30, September 30, and
152.14December 31 of the previous calendar year. The commissioner may reallocate unexpended
152.15money appropriated under this section to those county agencies that demonstrate a need
152.16for additional funds.
152.17    Subd. 7. Registrant status. A registrant under this section is not an employee for
152.18the purposes of workers' compensation, unemployment benefits, retirement, or civil service
152.19laws, and shall not perform work ordinarily performed by a regular public employee.
152.20    Subd. 8. Voluntary quit. A person who is required to participate in food stamp
152.21employment and training services is not eligible for food stamps if, without good cause,
152.22the person refuses a legitimate offer of, or quits, suitable employment within 60 days
152.23before the date of application. A person who is required to participate in food stamp
152.24employment and training services and, without good cause, voluntarily quits suitable
152.25employment or refuses a legitimate offer of suitable employment while receiving food
152.26stamps shall be terminated from the food stamp program as specified in subdivision 1a.
152.27    Subd. 9. Subcontractors. A county agency may, at its option, subcontract any or all
152.28of the duties under this section to a public or private entity approved by the commissioner
152.29of employment and economic development.
152.30    Subd. 18. Work experience Workfare placements. (a) To the extent of available
152.31resources, each county agency must establish and operate a work experience workfare
152.32component in the food stamp employment and training program for recipients who are
152.33subject to a federal limit of three months of food stamp eligibility in any 36-month period.
152.34The purpose of the work experience workfare component is to enhance the participant's
152.35employability, self-sufficiency, and to provide meaningful, productive work activities.
153.1(b) The commissioner shall assist counties in the design and implementation of these
153.2components. The commissioner must ensure that job placements under a work experience
153.3workfare component comply with section 256J.72. Written or oral concurrence with job
153.4duties of persons placed under the community work experience workfare program shall be
153.5obtained from the appropriate exclusive bargaining representative.
153.6(c) Worksites developed under this section are limited to projects that serve a useful
153.7public service such as health, social service, environmental protection, education, urban
153.8and rural development and redevelopment, welfare, recreation, public facilities, public
153.9safety, community service, services to aged or disabled citizens, and child care. To the
153.10extent possible, the prior training, skills, and experience of a recipient must be used in
153.11making appropriate work experience workfare assignments.
153.12(d) Structured, supervised volunteer uncompensated work with an agency or
153.13organization that is monitored by the county service provider may, with the approval of
153.14the county agency, be used as a work experience workfare placement.
153.15(e) As a condition of placing a person receiving food stamps in a program under this
153.16subdivision, the county agency shall first provide the recipient the opportunity:
153.17(1) for placement in suitable subsidized or unsubsidized employment through
153.18participation in job search under section 256D.051; or
153.19(2) for placement in suitable employment through participation in on-the-job training
153.20a paid work experience, if such employment is available.; or
153.21(3) for placement in an educational program designed to increase job skills and
153.22employability.
153.23(f) The county agency shall limit the maximum monthly number of hours that any
153.24participant may work in a work experience workfare placement to a number equal to the
153.25amount of the family's monthly food stamp allotment divided by the greater of the federal
153.26minimum wage or the applicable state minimum wage.
153.27After a participant has been assigned to a position for nine six months, the participant
153.28may not continue in that assignment unless the maximum number of hours a participant
153.29works is no greater than the amount of the food stamp benefit divided by the rate of pay
153.30for individuals employed in the same or similar occupations by the same employer at
153.31the same site.
153.32(g) The participant's employability development plan must include the length
153.33of time needed in the work experience workfare program, the need to continue job
153.34seeking activities while participating in work experience the workfare program, and the
153.35participant's employment goals.
154.1(h) After each six months of a recipient's participation in a work experience job
154.2workfare placement, and at the conclusion of each work experience workfare assignment
154.3under this section, the county agency shall reassess and revise, as appropriate, the
154.4participant's employability development plan.
154.5(i) A participant has good cause for failure to cooperate with a work experience job
154.6workfare placement if, in the judgment of the employment and training service provider,
154.7the reason for failure is reasonable and justified. Good cause for purposes of this section is
154.8defined in subdivision 1a, paragraph (b).
154.9(j) A recipient who has failed without good cause to participate in or comply with the
154.10work experience job a workfare placement shall be terminated from participation in work
154.11experience job workfare activities. If the recipient is not exempt from mandatory food
154.12stamp employment and training program participation under subdivision 3a, the recipient
154.13will be assigned to other mandatory program activities. If the recipient is exempt from
154.14mandatory participation but is participating as a volunteer, the person shall be terminated
154.15from the food stamp employment and training program.

154.16    Sec. 28. Laws 2013, chapter 108, article 14, section 2, subdivision 1, as amended by
154.17Laws 2014, chapter 312, article 31, section 3, is amended to read:
154.18
Subdivision 1.Total Appropriation
$
6,437,815,000
$
6,456,311,000
154.19
Appropriations by Fund
154.20
2014
2015
154.21
General
5,654,095,000
5,676,652,000
154.22
154.23
State Government
Special Revenue
4,099,000
4,510,000
154.24
Health Care Access
519,816,000
518,446,000
154.25
Federal TANF
257,915,000
254,813,000
154.26
Lottery Prize Fund
1,890,000
1,890,000
154.27Receipts for Systems Projects.
154.28Appropriations and federal receipts for
154.29information systems projects for MAXIS,
154.30PRISM, MMIS, and SSIS must be deposited
154.31in the state system account authorized
154.32in Minnesota Statutes, section 256.014.
154.33Money appropriated for computer projects
154.34approved by the commissioner of Minnesota
154.35information technology services, funded
154.36by the legislature, and approved by the
155.1commissioner of management and budget,
155.2may be transferred from one project to
155.3another and from development to operations
155.4as the commissioner of human services
155.5considers necessary. Any unexpended
155.6balance in the appropriation for these
155.7projects does not cancel but is available for
155.8ongoing development and operations.
155.9Nonfederal Share Transfers. The
155.10nonfederal share of activities for which
155.11federal administrative reimbursement is
155.12appropriated to the commissioner may be
155.13transferred to the special revenue fund.
155.14ARRA Supplemental Nutrition Assistance
155.15Benefit Increases. The funds provided for
155.16food support benefit increases under the
155.17Supplemental Nutrition Assistance Program
155.18provisions of the American Recovery and
155.19Reinvestment Act (ARRA) of 2009 must be
155.20used for benefit increases beginning July 1,
155.212009.
155.22Supplemental Nutrition Assistance
155.23Program Employment and Training.
155.24(1) Notwithstanding Minnesota Statutes,
155.25sections 256D.051, subdivisions 1a, 6b,
155.26and 6c, and 256J.626, federal Supplemental
155.27Nutrition Assistance employment and
155.28training funds received as reimbursement of
155.29MFIP consolidated fund grant expenditures
155.30for diversionary work program participants
155.31and child care assistance program
155.32expenditures must be deposited in the general
155.33fund. The amount of funds must be limited to
155.34$4,900,000 per year in fiscal years 2014 and
155.352015, and to $4,400,000 per year in fiscal
156.1years year 2016 and 2017, contingent on
156.2approval by the federal Food and Nutrition
156.3Service.
156.4(2) Notwithstanding Minnesota Statutes,
156.5sections 256D.051, subdivisions 1a, 6b, and
156.66c, and 256J.626, in fiscal year 2017, up to
156.7$4,400,000 in federal Supplemental Nutrition
156.8Assistance employment and training
156.9funds received as reimbursement of MFIP
156.10consolidated fund grant expenditures for
156.11diversionary work program participants and
156.12child care assistance program expenditures
156.13is appropriated to the commissioner of
156.14human services to expand the Supplemental
156.15Nutrition Assistance Program Employment
156.16and Training Program, including
156.17administrative costs, contingent on approval
156.18by the federal Food and Nutrition Service.
156.19(2) (3) Consistent with the receipt of the
156.20federal funds, the commissioner may
156.21adjust the level of working family credit
156.22expenditures claimed as TANF maintenance
156.23of effort. Notwithstanding any contrary
156.24provision in this article, this rider expires
156.25June 30, 2017.
156.26TANF Maintenance of Effort. (a) In order
156.27to meet the basic maintenance of effort
156.28(MOE) requirements of the TANF block grant
156.29specified under Code of Federal Regulations,
156.30title 45, section 263.1, the commissioner may
156.31only report nonfederal money expended for
156.32allowable activities listed in the following
156.33clauses as TANF/MOE expenditures:
157.1(1) MFIP cash, diversionary work program,
157.2and food assistance benefits under Minnesota
157.3Statutes, chapter 256J;
157.4(2) the child care assistance programs
157.5under Minnesota Statutes, sections 119B.03
157.6and 119B.05, and county child care
157.7administrative costs under Minnesota
157.8Statutes, section 119B.15;
157.9(3) state and county MFIP administrative
157.10costs under Minnesota Statutes, chapters
157.11256J and 256K;
157.12(4) state, county, and tribal MFIP
157.13employment services under Minnesota
157.14Statutes, chapters 256J and 256K;
157.15(5) expenditures made on behalf of legal
157.16noncitizen MFIP recipients who qualify for
157.17the MinnesotaCare program under Minnesota
157.18Statutes, chapter 256L;
157.19(6) qualifying working family credit
157.20expenditures under Minnesota Statutes,
157.21section 290.0671;
157.22(7) qualifying Minnesota education credit
157.23expenditures under Minnesota Statutes,
157.24section 290.0674; and
157.25(8) qualifying Head Start expenditures under
157.26Minnesota Statutes, section 119A.50.
157.27(b) The commissioner shall ensure that
157.28sufficient qualified nonfederal expenditures
157.29are made each year to meet the state's
157.30TANF/MOE requirements. For the activities
157.31listed in paragraph (a), clauses (2) to
157.32(8), the commissioner may only report
157.33expenditures that are excluded from the
158.1definition of assistance under Code of
158.2Federal Regulations, title 45, section 260.31.
158.3(c) For fiscal years beginning with state fiscal
158.4year 2003, the commissioner shall ensure
158.5that the maintenance of effort used by the
158.6commissioner of management and budget
158.7for the February and November forecasts
158.8required under Minnesota Statutes, section
158.916A.103 , contains expenditures under
158.10paragraph (a), clause (1), equal to at least 16
158.11percent of the total required under Code of
158.12Federal Regulations, title 45, section 263.1.
158.13(d) The requirement in Minnesota Statutes,
158.14section 256.011, subdivision 3, that federal
158.15grants or aids secured or obtained under that
158.16subdivision be used to reduce any direct
158.17appropriations provided by law, do not apply
158.18if the grants or aids are federal TANF funds.
158.19(e) For the federal fiscal years beginning on
158.20or after October 1, 2007, the commissioner
158.21may not claim an amount of TANF/MOE in
158.22excess of the 75 percent standard in Code
158.23of Federal Regulations, title 45, section
158.24263.1(a)(2), except:
158.25(1) to the extent necessary to meet the 80
158.26percent standard under Code of Federal
158.27Regulations, title 45, section 263.1(a)(1),
158.28if it is determined by the commissioner
158.29that the state will not meet the TANF work
158.30participation target rate for the current year;
158.31(2) to provide any additional amounts
158.32under Code of Federal Regulations, title 45,
158.33section 264.5, that relate to replacement of
158.34TANF funds due to the operation of TANF
158.35penalties; and
159.1(3) to provide any additional amounts that
159.2may contribute to avoiding or reducing
159.3TANF work participation penalties through
159.4the operation of the excess MOE provisions
159.5of Code of Federal Regulations, title 45,
159.6section 261.43(a)(2).
159.7(f) For the purposes of paragraph (e), clauses
159.8(1) to (3), the commissioner may supplement
159.9the MOE claim with working family credit
159.10expenditures or other qualified expenditures
159.11to the extent such expenditures are otherwise
159.12available after considering the expenditures
159.13allowed in this subdivision and subdivisions
159.14subdivision 2 and 3.
159.15(f) (g) Notwithstanding any contrary
159.16provision in this article, paragraphs (a) to (e)
159.17expire June 30, 2017 2019.
159.18Working Family Credit Expenditures
159.19as TANF/MOE. The commissioner may
159.20claim as TANF maintenance of effort up to
159.21$6,707,000 per year of working family credit
159.22expenditures in each fiscal year.

159.23    Sec. 29. Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 5,
159.24is amended to read:
159.25
159.26
Subd. 5.Family Homeless Prevention
8,519,000
8,519,000
8,769,000
159.27This appropriation is for the family homeless
159.28prevention and assistance programs under
159.29Minnesota Statutes, section 462A.204. Of
159.30this amount, $250,000 in the second year
159.31is a onetime appropriation for grants to
159.32eligible applicants to create or expand risk
159.33mitigation programs to reduce landlord
159.34financial risks for renting to persons eligible
160.1under Minnesota Statutes, section 462A.204.
160.2Eligible programs may reimburse landlords
160.3for costs including but not limited to
160.4nonpayment of rent, or damage costs above
160.5those costs covered by security deposits. The
160.6agency may give higher priority to applicants
160.7that can demonstrate a matching amount
160.8of money by a local unit of government,
160.9business, or nonprofit organization. Grantees
160.10must establish a procedure to review and
160.11validate claims and reimbursements under
160.12this grant program.

160.13    Sec. 30. Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 6,
160.14is amended to read:
160.15
160.16
Subd. 6.Home Ownership Assistance Fund
885,000
885,000
3,885,000
160.17This appropriation is for the home ownership
160.18assistance program under Minnesota
160.19Statutes, section 462A.21, subdivision 8.
160.20The agency shall continue to strengthen
160.21its efforts to address the disparity gap in
160.22the homeownership rate between white
160.23households and indigenous American Indians
160.24and communities of color.

160.25    Sec. 31. Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision
160.2610, is amended to read:
160.27
160.28
Subd. 10.Capacity Building Grants
375,000
375,000
875,000
160.29(a) This appropriation is for nonprofit
160.30capacity building grants under Minnesota
160.31Statutes, section 462A.21, subdivision 3b.
160.32Of this amount, $125,000 each year is
160.33for support of the Homeless Management
160.34Information System (HMIS).
161.1(b) $500,000 is a onetime appropriation
161.2for competitive grants to nonprofit housing
161.3organizations, housing and redevelopment
161.4authorities, or other political subdivisions
161.5to provide intensive financial education and
161.6coaching services to individuals or families
161.7who have the goal of homeownership.
161.8Financial education and coaching services
161.9include but are not limited to asset building,
161.10development of spending plans, credit report
161.11education, repair and rebuilding, consumer
161.12protection training, and debt reduction.
161.13Priority must be given to organizations
161.14that have experience serving underserved
161.15populations.

161.16    Sec. 32. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision
161.173, is amended to read:
161.18    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests as
161.19provided under Minnesota Statutes, section 124D.55:
161.20
$
125,000
.....
2016
161.21
161.22
$
125,000
245,000
.....
2017
161.23The base appropriation for fiscal year 2018 and later is $125,000.

161.24    Sec. 33. STEPPING UP FOR KIDS; FINANCIAL ASSISTANCE.
161.25    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
161.26have the meanings given.
161.27(b) "High needs area" means a high needs area as defined in the Department of
161.28Education biannual teacher supply and demand report under Minnesota Statutes, section
161.29127A.05, subdivision 6, or other surveys conducted by the Department of Education
161.30that provide indicators for teacher supply and demand needs not captured by the teacher
161.31supply and demand report.
161.32(c) "High needs school" means a school that:
161.33(1) is identified as a low performing school under federal expectations; and
162.1(2) is above the state average in concentration of students qualifying for free and
162.2reduced-price lunch.
162.3(d) "Qualified candidate" means a paraprofessional employed in a Minnesota school
162.4currently or within the past three years who has been admitted to an institution as defined
162.5under Minnesota Statutes, section 136A.101, subdivision 4, located in Minnesota with
162.6an approved Minnesota teacher licensure program and meets the program eligibility
162.7requirements in subdivision 3 and in policies adopted under subdivision 5.
162.8    Subd. 2. Eligibility. (a) A qualified candidate may apply, beginning in the
162.92017-2018 academic year, to the commissioner of the Office of Higher Education to
162.10receive financial assistance under this section. The commissioner of the Office of Higher
162.11Education shall award financial assistance to paraprofessionals employed in high needs
162.12areas or high needs schools based on shortages, geographical distribution, or other surveys
162.13conducted by the Department of Education and must take into consideration diversifying
162.14the teacher workforce. The application must include a letter of support from the designated
162.15school district administrator where the paraprofessional is employed.
162.16(b) A candidate must commit to remain employed in a Minnesota school district for
162.17four years upon completion of teacher preparation as verified through the Staff Automated
162.18Reporting (STAR) system maintained by the Department of Education. A candidate
162.19who does not complete the four-year service commitment may be required to repay the
162.20financial assistance.
162.21(c) A candidate must provide a letter of intent, demonstrating an interest in teaching
162.22in a high needs area or high needs school, upon completing the teacher preparation
162.23program and receiving a teaching license.
162.24    Subd. 3. Usage. The financial assistance may only be used for tuition and related
162.25living and miscellaneous expenses required to complete teacher preparation and attain
162.26licensure.
162.27    Subd. 4. Policymaking. The commissioner of education with assistance from the
162.28commissioner of the Office of Higher Education shall adopt policies or procedures to
162.29implement this section, including:
162.30(1) additional eligibility and renewal criteria;
162.31(2) annual and lifetime maximum awards per student; and
162.32(3) service fulfillment and repayment criteria.

162.33    Sec. 34. GOOD FOOD ACCESS ADVISORY COMMITTEE.
162.34The commissioner of agriculture and designating authorities must make their initial
162.35appointments and designations by July 1, 2016, for the Good Food Access Advisory
163.1Committee established under Minnesota Statutes, section 17.1018. The commissioner of
163.2agriculture or the commissioner's designee must convene the first meeting of the Good
163.3Food Access Advisory Committee by September 1, 2016.

163.4    Sec. 35. REQUIREMENTS FOR GRANTS TO INDIVIDUALLY SPECIFIED
163.5RECIPIENTS.
163.6(a) Application. This section applies to any grant funded under this act where the
163.7recipient of the grant is individually specified in this act. The commissioner serving as the
163.8fiscal agent for the grant must ensure compliance with the requirements of this section, and
163.9all applicable requirements under existing law, including applicable grants management
163.10policies and procedures established by the Office of Grants Management.
163.11(b) Prerequisites. Before any funding is provided to the grant recipient, the
163.12recipient must provide the fiscal agent with a description of the following information in
163.13a grant application:
163.14(1) the purpose of the grant, including goals, priorities, and measurable outcomes;
163.15(2) eligibility requirements for individuals who will be served by the grant program;
163.16(3) the proposed geographic service areas for individuals served by the grant; and
163.17(4) the reporting requirements.
163.18These requirements are in addition to any requirements under existing laws and policies.
163.19(c) Financial Review. Office of Grants Management Operating Policy and
163.20Procedure number 08-06, titled "Policy on the Financial Review of Nongovernmental
163.21Organizations" applies in pertinent part to all grants covered by paragraph (a).
163.22(d) Reporting to Fiscal Agent. In addition to meeting any reporting requirements
163.23included in the grant agreement, grant recipients subject to this section must provide the
163.24following information to the commissioner serving as fiscal agent:
163.25(1) a detailed accounting of the use of any grant proceeds;
163.26(2) a description of program outcomes to date, including performance measured
163.27against indicators specified in the grant agreement, including, but not limited to, job
163.28creation, employment activity, wage information, business formation or expansion, and
163.29academic performance; and
163.30(3) the portion of the grant, if any, spent on the recipient's operating expenses.
163.31Grant recipients must report the information required under this paragraph to the fiscal
163.32agent within one year after receiving any portion of the grant, annually thereafter, and
163.33within 30 days following the use of all funds provided under the grant.
163.34(e) Reporting to Legislature. Beginning January 15, 2017, a commissioner serving
163.35as a fiscal agent for a grant subject to this section must submit a report containing the
164.1information provided by the grant recipients to the chairs and ranking minority members
164.2of the legislative committees and budget divisions with jurisdiction over the agency
164.3serving as fiscal agent for the grant. The report submitted under this section must also
164.4include the commissioner's summary of the use of grant proceeds, and an analysis of
164.5the grant recipients' success in meeting the goals, priorities, and measurable outcomes
164.6specified for the grant. An updated version of this report must be submitted on January
164.715 of each succeeding year until January 15 in the year following the date when all of
164.8the grant funds have been spent.

164.9    Sec. 36. ETHNIC COUNCIL REVIEW.
164.10The commissioners of each agency appropriated money in this article may consult
164.11with the four ethnic councils under Minnesota Statutes, sections 3.922 and 15.0145,
164.12regarding implementation of the programs funded under this article. Any request for
164.13proposals developed by a state agency as a result of this article may be reviewed by the
164.14four ethnic councils prior to public submission.
164.15EFFECTIVE DATE.This section is effective the day following final enactment.

164.16    Sec. 37. REVISOR'S INSTRUCTION.
164.17In the next editions of Minnesota Statutes and Minnesota Rules, the Revisor of
164.18Statutes shall change the term "Urban Initiative Board" to "Minnesota Initiative Board,"
164.19"board," or similar terms as the context requires.

164.20    Sec. 38. REPEALER.
164.21Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 8, is
164.22repealed.
164.23EFFECTIVE DATE.This section is effective the day following final enactment.

164.24ARTICLE 7
164.25ENVIRONMENT AND ENERGY

164.26
Section 1. APPROPRIATIONS.
164.27The sums shown in the columns marked "Appropriations" are added to the
164.28appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
164.29agencies and for the purposes specified in this article. The appropriations are from the
164.30general fund, or another named fund, and are available for the fiscal year indicated for
164.31each purpose. The figures "2016" and "2017" used in this article mean that the addition
165.1to the appropriations listed under them are available for the fiscal year ending June 30,
165.22016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
165.3year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
165.4following final enactment.
165.5
APPROPRIATIONS
165.6
Available for the Year
165.7
Ending June 30
165.8
2016
2017

165.9
Sec. 2. POLLUTION CONTROL AGENCY
165.10
Subdivision 1.Total Appropriation
$
143,000
$
6,867,000
165.11
Appropriations by Fund
165.12
2016
2017
165.13
General
143,000
2,759,000
165.14
Environmental
-0-
4,108,000
165.15
Subd. 2.Water
-0-
1,146,000
165.16$923,000 the second year is to meet the
165.17increased demand for technical assistance
165.18and review of municipal water infrastructure
165.19projects that will be generated by increased
165.20grant funding through the Public Facilities
165.21Authority. This is a onetime appropriation
165.22and is available until June 30, 2019.
165.23$108,000 the second year is from the
165.24environmental fund to manage a rulemaking
165.25process to enhance equity in the water
165.26program permit fee structure.
165.27$115,000 the second year is for the working
165.28lands program feasibility study and program
165.29plan. This is a onetime appropriation and is
165.30available until June 30, 2018.
165.31
Subd. 3.Land
-0-
432,000
165.32$432,000 the second year is to manage
165.33contaminated sediment projects at multiple
165.34sites identified in the St. Louis River
166.1remedial action plan to restore water quality
166.2in the St. Louis River area of concern. This
166.3amount is added to the base for fiscal years
166.42018, 2019, and 2020 only.
166.5
166.6
Subd. 4.Environmental Assistance and
Cross-Media
-0-
4,000,000
166.7$4,000,000 is appropriated from the
166.8environmental fund for SCORE block grants
166.9to counties. This amount is in addition to the
166.10amounts appropriated in Laws 2015, First
166.11Special Session chapter 4, article 3, section 2,
166.12subdivision 5. The forecast base for SCORE
166.13grants in fiscal year 2018 is $21,250,000 and
166.14in fiscal year 2019 and later is $25,250,000.
166.15
Subd. 5.Administrative Services
143,000
1,289,000
166.16$143,000 the first year and $1,289,000
166.17the second year are for legal support costs
166.18related to the agency's environmental review
166.19and permitting decisions on the PolyMet
166.20NorthMet project. This is a onetime
166.21appropriation and is available until June 30,
166.222019.

166.23
166.24
Sec. 3. BOARD OF WATER AND SOIL
RESOURCES
$
-0-
$
729,000
166.25$479,000 the second year is for the working
166.26lands program feasibility study and program
166.27plan. This is a onetime appropriation and is
166.28available until June 30, 2018.
166.29$250,000 the second year is to initiate
166.30development and coordination of Minnesota
166.31River Basin goals and strategies for sediment
166.32reduction, flow reduction, and nutrient
166.33reduction. This is a onetime appropriation.

167.1    Sec. 4. [103F.519] WORKING LANDS WATERSHED RESTORATION
167.2PROGRAM.
167.3    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
167.4have the meanings given.
167.5(b) "Advanced biofuel" has the meaning given in section 239.051, subdivision 1a.
167.6(c) "Agricultural use" has the meaning given in section 17.81, subdivision 4.
167.7(d) "Biomass processing facility" means a facility producing electricity, advanced
167.8biofuel, renewable chemical, or biomass thermal energy from perennial crops.
167.9(e) "Biomass thermal energy" means energy generated from biomass for commercial
167.10heat or industrial process heat.
167.11(f) "Board" means the Board of Water and Soil Resources.
167.12(g) "Perennial crops" has the meaning given in section 41A.15, subdivision 9.
167.13(h) "Renewable chemical" has the meaning given in section 41A.15, subdivision 10.
167.14    Subd. 2. Establishment. The board, in consultation with the commissioner of
167.15agriculture, shall administer a program to incentivize the establishment and maintenance
167.16of perennial crops. The board shall contract with landowners and give priority to contracts
167.17that implement water protection actions as identified in a completed watershed restoration
167.18and protection strategy developed under section 114D.26.
167.19    Subd. 3. Eligible land. Land eligible under this section must:
167.20(1) have been in agricultural use for annual crop production or have been set aside,
167.21enrolled, or diverted under another federal or state government program for at least two
167.22of the last five years before the date of application; and
167.23(2) not be currently set aside, enrolled, or diverted under another federal or state
167.24government program.
167.25    Subd. 4. Contract terms; use as livestock feed. (a) The board shall offer a contract
167.26rate of no more than 90 percent of the most recent federal conservation reserve program
167.27payment for the county in which the land is located. The board may make additional
167.28payments to assist with the establishment of perennial crops.
167.29(b) Contracts must be at least ten years in duration.
167.30(c) Perennial crops grown on land enrolled under this section may be used by a
167.31biomass processing facility or for livestock feed. Perennial crops may be processed in a
167.32manner that utilizes a portion of the plant for livestock.
167.33(d) The board shall prioritize land with the highest potential to leverage federal
167.34funding.
167.35(e) The board may establish additional contract terms.
168.1    Subd. 5. Pilot watershed selection. The board may select up to two watersheds in
168.2which to conduct an initial pilot program of up to 100,000 total acres. Project watersheds
168.3must have, as determined by the board:
168.4(1) a completed watershed restoration and protection strategy developed under
168.5section 114D.26, or a hydrological simulation program model approved by the Pollution
168.6Control Agency;
168.7(2) multiple water quality impairments;
168.8(3) access to a viable proposed biomass processing facility for the perennial crops
168.9grown under this section; and
168.10(4) sufficient acres of cropland available for perennial crop production to adequately
168.11supply the proposed biomass processing facility.

168.12    Sec. 5. Minnesota Statutes 2014, section 115B.48, is amended by adding a subdivision
168.13to read:
168.14    Subd. 10. Owner or operator. "Owner or operator" means a person who:
168.15(1) owns or has owned a dry cleaning facility during the time the dry cleaning
168.16facility operated; or
168.17(2) operates or has operated a dry cleaning facility.
168.18EFFECTIVE DATE.This section is effective the day following final enactment.

168.19    Sec. 6. Minnesota Statutes 2014, section 115B.50, subdivision 3, is amended to read:
168.20    Subd. 3. Limitation on amount that may be spent. The commissioner may not, in
168.21a single fiscal year, make expenditures from the account related to a single dry cleaning
168.22facility that exceed 20 percent of the balance in the account at the beginning of the fiscal
168.23year $100,000.
168.24EFFECTIVE DATE.This section is effective the day following final enactment.

168.25    Sec. 7. Minnesota Statutes 2014, section 115B.50, is amended by adding a subdivision
168.26to read:
168.27    Subd. 4. Reimbursement adjustment rulemaking. The commissioner may use
168.28the expedited rulemaking process under section 14.389 to adjust reimbursement dollar
168.29amounts contained in the rules established under subdivision 2.

168.30    Sec. 8. Minnesota Statutes 2014, section 115C.13, is amended to read:
168.31115C.13 REPEALER.
169.1Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05,
169.2115C.06 , 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11,
169.3115C.112 , 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2017 2022.

169.4    Sec. 9. Minnesota Statutes 2014, section 216B.2424, subdivision 5a, is amended to read:
169.5    Subd. 5a. Reduction of biomass mandate. (a) Notwithstanding subdivision 5, the
169.6biomass electric energy mandate must be reduced from 125 megawatts to 110 megawatts.
169.7(b) The Public Utilities Commission shall approve a request pending before the
169.8commission as of May 15, 2003, for amendments to and assignment of a power purchase
169.9agreement with the owner of a facility that uses short-rotation, woody crops as its primary
169.10fuel previously approved to satisfy a portion of the biomass mandate if the owner of
169.11the project agrees to reduce the size of its project from 50 megawatts to 35 megawatts,
169.12while maintaining an average price for energy in nominal dollars measured over the term
169.13of the power purchase agreement at or below $104 per megawatt-hour, exclusive of any
169.14price adjustments that may take effect subsequent to commission approval of the power
169.15purchase agreement, as amended. The commission shall also approve, as necessary, any
169.16subsequent assignment or sale of the power purchase agreement or ownership of the
169.17project to an entity owned or controlled, directly or indirectly, by two municipal utilities
169.18located north of Constitutional Route No. 8, as described in section 161.114, which
169.19currently own electric and steam generation facilities using coal as a fuel and which
169.20propose to retrofit their existing municipal electrical generating facilities to utilize biomass
169.21fuels in order to perform the power purchase agreement.
169.22(c) If the power purchase agreement described in paragraph (b) is assigned to an
169.23entity that is, or becomes, owned or controlled, directly or indirectly, by two municipal
169.24entities as described in paragraph (b), and the power purchase agreement meets the
169.25price requirements of paragraph (b), the commission shall approve any amendments to
169.26the power purchase agreement necessary to reflect the changes in project location and
169.27ownership and any other amendments made necessary by those changes. The commission
169.28shall also specifically find that:
169.29(1) the power purchase agreement complies with and fully satisfies the provisions of
169.30this section to the full extent of its 35-megawatt capacity;
169.31(2) all costs incurred by the public utility and all amounts to be paid by the public
169.32utility to the project owner under the terms of the power purchase agreement are fully
169.33recoverable pursuant to section 216B.1645;
170.1(3) subject to prudency review by the commission, the public utility may recover
170.2from its Minnesota retail customers the amounts that may be incurred and paid by the
170.3public utility during the full term of the power purchase agreement; and
170.4(4) if the purchase power agreement meets the requirements of this subdivision,
170.5it is reasonable and in the public interest.
170.6(d) The commission shall specifically approve recovery by the public utility of
170.7any and all Minnesota jurisdictional costs incurred by the public utility to improve,
170.8construct, install, or upgrade transmission, distribution, or other electrical facilities owned
170.9by the public utility or other persons in order to permit interconnection of the retrofitted
170.10biomass-fueled generating facilities or to obtain transmission service for the energy
170.11provided by the facilities to the public utility pursuant to section 216B.1645, and shall
170.12disapprove any provision in the power purchase agreement that requires the developer
170.13or owner of the project to pay the jurisdictional costs or that permit the public utility to
170.14terminate the power purchase agreement as a result of the existence of those costs or the
170.15public utility's obligation to pay any or all of those costs.
170.16(e) Upon request by the project owner, the public utility shall agree to amend the
170.17power purchase agreement described in paragraph (b) and approved by the commission
170.18as required by paragraph (c). The amendment must be negotiated and executed within
170.1945 days of May 14, 2013, and must apply to prices paid after January 1, 2014. The
170.20average price for energy in nominal dollars measured over the term of the power purchase
170.21agreement must not exceed $109.20 per megawatt hour. The public utility shall request
170.22approval of the amendment by the commission within 30 days of execution of the
170.23amended power purchase agreement. The amendment is not effective until approval
170.24by the commission. The commission shall act on the amendment within 90 days of
170.25submission of the request by the public utility. Upon approval of the amended power
170.26purchase agreement, the commission shall allow the public utility to recover the costs of
170.27the amended power purchase agreement, as provided in section 216B.1645.
170.28(f) With respect to the power purchase agreement described in paragraph (b), and
170.29amended and approved by the commission pursuant to paragraphs (c) and (e), upon
170.30request by the project owner, the public utility shall agree to amend the power purchase
170.31agreement to include a fuel cost adjustment clause which requires the public utility to
170.32reimburse the project owner monthly for all costs incurred by the project owner during
170.33the applicable month to procure and transport all fuel used to produce energy for delivery
170.34to the public utility pursuant to the power purchase agreement to the extent such costs
170.35exceeded $3.40 per million metric British thermal unit (MMBTU), in addition to the price
170.36to be paid for the energy produced and delivered by the project owner. Reimbursable
171.1costs include but are not limited to: (1) all costs incurred to load fuel at its source; (2)
171.2costs to transport fuel (i) to the biomass-fueled generating facilities or to an intermediate
171.3woodyard, storage facility, or handling facility, or (ii) from a facility to the biomass-fueled
171.4generating facilities; (3) depreciation of any depreciable loading, woodyard, storage,
171.5handling, or transportation equipment whether the vehicle or equipment is located at the
171.6fuel source, a woodyard, storage facility, handling facility, or at the generating facilities;
171.7and (4) costs to unload fuel at the generating facilities. Beginning with 2014, at the end of
171.8each calendar year of the term of the power purchase agreement, the project owner shall
171.9calculate the amount by which actual fuel costs for the year exceeded $3.40 per MMBTU,
171.10and prior monthly payment for such fuel costs shall be reconciled against actual fuel costs
171.11for the applicable calendar year. If such prior monthly fuel payments for the year in the
171.12aggregate exceed the amount due based on the annual calculation, the project owner shall
171.13credit the public utility for the excess paid. If the annual calculation of fuel costs due
171.14exceeds the prior monthly fuel payments for the year in the aggregate, the project owner
171.15shall be entitled to be paid for the deficiency with the next invoice to the public utility.
171.16The amendment shall be negotiated and executed within 45 days of May 13, 2013, and
171.17shall be effective for fuel costs incurred and prices after January 1, 2014. The public
171.18utility shall request approval of the amendment by the commission, and the commission
171.19shall approve the amendment as reasonable and in the public interest and allow the public
171.20utility to recover from its Minnesota retail customers the amounts paid by the public utility
171.21to the project owner pursuant to the power purchase agreement during the full term of
171.22the power purchase agreement, including the reimbursement of fuel costs pursuant to the
171.23power purchase agreement amendment, reimbursable costs as provided in this paragraph,
171.24pursuant to section 216B.1645, or otherwise.
171.25(g) With respect to the power purchase agreement described in paragraph (b) and
171.26approved by the commission pursuant to paragraphs (c) and (e), the public utility is
171.27prohibited from recovering from the project owner any costs which were not actually and
171.28reasonably incurred by the utility, notwithstanding any provision in the power purchase
171.29agreement to the contrary. In addition, beginning with 2012, the public utility shall pay for
171.30all energy delivered by the project owner pursuant to the power purchase agreement at
171.31the full price for such energy in the power purchase agreement approved and amended
171.32pursuant to paragraph (e), provided that the project owner does not deliver more than
171.33110 percent of the amount scheduled for delivery in any year of the power purchase
171.34agreement, and does not deliver, on average over any five consecutive years of the power
171.35purchase agreement, an amount greater than 105 percent of the amount scheduled for
171.36delivery over the five-year period.
172.1EFFECTIVE DATE.This section is effective retroactively from January 1, 2014.

172.2    Sec. 10. Minnesota Statutes 2014, section 216B.62, subdivision 2, is amended to read:
172.3    Subd. 2. Assessing specific utility. Whenever the commission or department, in a
172.4proceeding upon its own motion, on complaint, or upon an application to it, shall deem it
172.5necessary, in order to carry out the duties imposed under this chapter (1) to investigate the
172.6books, accounts, practices, and activities of, or make appraisals of the property of, any
172.7public utility, (2) to render any engineering or accounting services to any public utility, or
172.8(3) to intervene before an energy regulatory agency, the public utility shall pay the expenses
172.9reasonably attributable to the investigation, appraisal, service, or intervention. The
172.10commission and department shall ascertain the expenses, and the department shall render
172.11a bill therefor to the public utility, either at the conclusion of the investigation, appraisal,
172.12or services, or from time to time during its progress, which bill shall constitute notice of
172.13the assessment and a demand for payment. The amount of the bills so rendered by the
172.14department shall be paid by the public utility into the state treasury within 30 days from the
172.15date of rendition. The total amount, in any one calendar year, for which any public utility
172.16shall become liable, by reason of costs incurred by the commission within that calendar
172.17year, shall not exceed two-fifths of one percent of the gross operating revenue from retail
172.18sales of gas, or electric service by the public utility within the state in the last preceding
172.19calendar year. Where, pursuant to this subdivision, costs are incurred within any calendar
172.20year which are in excess of two-fifths of one percent of the gross operating revenues, the
172.21excess costs shall not be chargeable as part of the remainder under subdivision 3, but shall
172.22be paid out of the general appropriation or special revenue fund to the department and
172.23commission. In the case of public utilities offering more than one public utility service
172.24only the gross operating revenues from the public utility service in connection with which
172.25the investigation is being conducted shall be considered when determining this limitation.

172.26    Sec. 11. Minnesota Statutes 2014, section 216B.62, is amended by adding a subdivision
172.27to read:
172.28    Subd. 9. Utility assessment account; appropriation. The utility assessment
172.29account is created as a separate account in the special revenue fund in the state treasury.
172.30Funds received by the department for the assessment of costs related to the energy
172.31planning and advocacy unit under subdivisions 2 and 3 must be deposited into this
172.32account and are annually appropriated to the commissioner of commerce. Earnings,
172.33such as interest, dividends, and any other earnings arising from account assets, must be
172.34credited to the account. Assessments dated June 1, 2016, or later will be paid into the
173.1utility assessment account. The amount assessed under this subdivision may not exceed
173.2$3,000,000 in a fiscal year.

173.3    Sec. 12. Minnesota Statutes 2014, section 297H.13, subdivision 2, is amended to read:
173.4    Subd. 2. Allocation of revenues. (a) $33,760,000, or 70 percent, whichever is
173.5greater, Of the amounts remitted under this chapter, 75 percent in fiscal years 2017
173.6and 2018, and 80 percent in fiscal year 2019 and thereafter, must be credited to the
173.7environmental fund established in section 16A.531, subdivision 1.
173.8(b) The remainder must be deposited into the general fund.

173.9    Sec. 13. Minnesota Statutes 2014, section 473.845, subdivision 1, is amended to read:
173.10    Subdivision 1. Establishment. The metropolitan landfill contingency action trust
173.11account is an expendable trust account in the remediation fund. The account consists
173.12of revenue deposited in the account under section 473.843, subdivision 2, clause (2);
173.13amounts recovered under subdivision 7; and interest earned on investment of money in
173.14the account. The account must be managed to maximize long-term gain through the
173.15State Board of Investment.

173.16    Sec. 14. Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to
173.17read:
173.18EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2015
173.19January 1, 2016, and applies to applications for reimbursement on or after that date.
173.20EFFECTIVE DATE.This section is effective retroactively from May 5, 2014.

173.21    Sec. 15. Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 1,
173.22is amended to read:
173.23
173.24
Subdivision 1.Total Appropriation
$
34,003,000
$
34,073,000
32,073,000
173.25
Appropriations by Fund
173.26
2016
2017
173.27
173.28
General
30,960,000
31,030,000
29,030,000
173.29
Special Revenue
1,240,000
1,240,000
173.30
Petroleum Tank
1,052,000
1,052,000
173.31
173.32
Workers'
Compensation
751,000
751,000
174.1The amounts that may be spent for each
174.2purpose are specified in the following
174.3subdivisions.

174.4    Sec. 16. Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 7,
174.5is amended to read:
174.6
174.7
Subd. 7.Energy Resources
3,848,000
3,845,000
1,845,000
174.8$150,000 each year is for grants to
174.9providers of low-income weatherization
174.10services to install renewable energy
174.11equipment in households that are eligible for
174.12weatherization assistance under Minnesota's
174.13weatherization assistance program state
174.14plan as provided for in Minnesota Statutes,
174.15section 216C.264.
174.16$424,000 in fiscal year 2016 and $430,000
174.17in fiscal year 2017 are for costs associated
174.18with competitive rates for energy-intensive,
174.19trade-exposed electric utility customers.
174.20All general fund appropriations for costs
174.21associated with competitive rates for
174.22energy-intensive, trade-exposed electric
174.23utility customers are recovered through
174.24assessments under Minnesota Statutes,
174.25section 216B.62.

174.26    Sec. 17. Laws 2015, First Special Session chapter 1, article 1, section 9, is amended to
174.27read:
174.28
174.29
Sec. 9. PUBLIC UTILITIES COMMISSION
$
6,966,000
7,191,000
$
6,930,000
7,587,000
174.30The general fund base for the Public Utilities
174.31Commission is $7,465,000 in fiscal year
174.322018 and $7,465,000 in fiscal year 2019.
174.33EFFECTIVE DATE.This section is effective the day following final enactment.

175.1    Sec. 18. Laws 2015, First Special Session chapter 4, article 3, section 2, subdivision 4,
175.2is amended to read:
175.3
Subd. 4.Land
21,663,000
18,584,000
175.4
Appropriations by Fund
175.5
2016
2017
175.6
General
3,368,000
-0-
175.7
Environmental
7,031,000
7,150,000
175.8
Remediation
11,264,000
11,434,000
175.9All money for environmental response,
175.10compensation, and compliance in the
175.11remediation fund not otherwise appropriated
175.12is appropriated to the commissioners of the
175.13Pollution Control Agency and agriculture
175.14for purposes of Minnesota Statutes, section
175.15115B.20, subdivision 2 , clauses (1), (2),
175.16(3), (6), and (7). At the beginning of each
175.17fiscal year, the two commissioners shall
175.18jointly submit an annual spending plan
175.19to the commissioner of management and
175.20budget that maximizes the utilization of
175.21resources and appropriately allocates the
175.22money between the two departments. This
175.23appropriation is available until June 30, 2017.
175.24$4,279,000 the first year and $4,343,000 the
175.25second year are from the remediation fund
175.26for purposes of the leaking underground
175.27storage tank program to investigate, clean up,
175.28and prevent future releases from underground
175.29petroleum storage tanks, and to the petroleum
175.30remediation program for purposes of vapor
175.31assessment and remediation. These same
175.32annual amounts are transferred from the
175.33petroleum tank fund to the remediation fund.
175.34$252,000 the first year and $252,000 the
175.35second year are from the remediation fund
175.36for transfer to the commissioner of health for
176.1private water supply monitoring and health
176.2assessment costs in areas contaminated
176.3by unpermitted mixed municipal solid
176.4waste disposal facilities and drinking water
176.5advisories and public information activities
176.6for areas contaminated by hazardous releases.
176.7$868,000 the first year is from the general
176.8fund for a grant to the city of Mountain Iron
176.9for remediation of the abandoned wastewater
176.10treatment pond of the former Nichols
176.11Township. This is a onetime appropriation
176.12that is available until June 30, 2019. This
176.13appropriation is effective December 1, 2015.
176.14Up to $2,500,000 the first year is from the
176.15general fund to the commissioner for a grant
176.16to the city of Paynesville to add a treatment
176.17process to a water treatment plant for removal
176.18of volatile organic compounds. This is a
176.19onetime appropriation. This appropriation is
176.20effective December 1, 2015.
176.21$743,000 the second year is transferred
176.22from the general fund to the dry cleaner
176.23environmental response and reimbursement
176.24account in the remediation fund for the
176.25purpose of remediating land contaminated
176.26by a release from a dry cleaning facility,
176.27as provided under Minnesota Statutes,
176.28section 115B.50, if legislation is enacted in
176.29the 2016 legislative session to address the
176.30insolvency of the dry cleaner environmental
176.31response and reimbursement account. The
176.32commissioner shall prioritize expenditures
176.33from this transfer to address contaminated
176.34sites that pose the greatest risk to public
176.35health or welfare or to the environment, as
177.1established in Minnesota Statutes, section
177.2115B.17, subdivision 13. This is a onetime
177.3transfer. The commissioner shall reimburse
177.4only a person who otherwise would not be
177.5responsible for a release or threatened release
177.6under Minnesota Statutes, section 115B.03,
177.7for all but $10,000 of the environmental
177.8response costs incurred by the person if the
177.9commissioner determines that the costs are
177.10reasonable and were actually incurred. To be
177.11eligible for reimbursement from this transfer,
177.12a person seeking reimbursement must make
177.13a request to the commissioner, as required
177.14under Minnesota Statutes, section 115B.50,
177.15subdivision 2
, on or before the day following
177.16final enactment of this act.
177.17EFFECTIVE DATE.This section is effective the day following final enactment.

177.18    Sec. 19. FEASIBILITY STUDY AND PROGRAM PLAN; WORKING LANDS
177.19WATERSHED RESTORATION PROGRAM.
177.20(a) The Board of Water and Soil Resources shall develop a detailed plan to
177.21implement Minnesota Statutes, section 103F.519 that includes the following:
177.22(1) a process for selecting pilot watersheds that are expected to result in the greatest
177.23water quality improvements and exhibit readiness to participate in the program;
177.24(2) an assessment of the quantity of agricultural land that is expected to be eligible
177.25for the program in each watershed;
177.26(3) an assessment of landowner interest in participating in the program;
177.27(4) an assessment of the contract terms and any recommendations for changes to the
177.28terms, including consideration of variable payment rates for lands of different priority or
177.29type;
177.30(5) an assessment of the opportunity to leverage federal funds through the program
177.31and recommendations on how to maximize the use of federal funds for assistance to
177.32establish perennial crops;
177.33(6) an assessment of how other state programs could complement the program;
177.34(7) an estimate of water quality improvements expected to result from
177.35implementation in pilot watersheds;
178.1(8) an assessment of how to best integrate program implementation with existing
178.2conservation requirements and develop recommendations on harvest practices and timing
178.3to benefit wildlife production;
178.4(9) an assessment of the potential viability and water quality benefit of cover crops
178.5used in biomass processing facilities;
178.6(10) a timeline for implementation, coordinated to the extent possible with proposed
178.7biomass processing facilities; and
178.8(11) a projection of funding sources needed to complete implementation.
178.9(b) The board shall coordinate development of the plan with stakeholders and the
178.10commissioners of natural resources, agriculture, and the Pollution Control Agency. The
178.11board must submit an interim report by October 15, 2017, and the feasibility study and
178.12program plan by February 1, 2018, to the chairs and ranking minority members of the
178.13legislative committees and divisions with jurisdiction over agriculture, natural resources,
178.14and environment policy and finance and to the Clean Water Council.

178.15    Sec. 20. RULEMAKING; DRY CLEANER RESPONSE AND
178.16REIMBURSEMENT ACCOUNT.
178.17(a) The commissioner of the Pollution Control Agency shall adopt rules using
178.18the expedited rulemaking process under Minnesota Statutes, section 14.389, including
178.19subdivision 5, to establish, with respect to Minnesota Statutes, section 115B.50,
178.20subdivision 2:
178.21(1) what environmental response costs are to be considered reasonable costs and
178.22what costs are to be considered ineligible for reimbursement;
178.23(2) appropriate application requirements for reimbursement; and
178.24(3) a process to adjust payment reimbursement rates made for response actions.
178.25(b) Rules adopted under this section:
178.26(1) must be consistent with Minnesota Statutes, sections 115B.47 to 115B.51;
178.27(2) must be structured like rules governing applicable provisions of the petroleum
178.28tank response cleanup fund under Minnesota Rules, chapter 2890, as necessary to
178.29implement paragraph (a), clauses (1) to (3); and
178.30(3) must not reduce reimbursements as contained in Minnesota Rules, part
178.312890.0065, subpart 1, item C.
178.32EFFECTIVE DATE.This section is effective the day following final enactment.

178.33    Sec. 21. REPEALER.
178.34Minnesota Statutes 2015 Supplement, section 115B.48, subdivision 9, is repealed.
179.1EFFECTIVE DATE.This section is effective the day following final enactment.

179.2ARTICLE 8
179.3STATE GOVERNMENT

179.4
Section 1. APPROPRIATIONS.
179.5The sums shown in the columns marked "Appropriations" are added to the
179.6appropriations in Laws 2015, chapter 77, article 1, to the agencies and for the purposes
179.7specified in this article. The appropriations are from the general fund or another named
179.8fund. The figures "2016" and "2017" used in this article mean that the addition to the
179.9appropriation listed under them are available for the fiscal year ending June 30, 2016, or
179.10June 30, 2017, respectively. Supplemental appropriations for the fiscal year ending June
179.1130, 2016, are effective the day following final enactment.
179.12
APPROPRIATIONS
179.13
Available for the Year
179.14
Ending June 30
179.15
2016
2017

179.16
Sec. 2. ADMINISTRATION
179.17
Subdivision 1.Total Appropriation
$
-0-
$
528,000
179.18
179.19
Subd. 2.Government and Citizen Services -
Olmstead Plan Increased Capacity
-0-
148,000
179.20For administrative costs to expand services
179.21provided under the Olmstead Plan serving
179.22people with disabilities.
179.23
179.24
179.25
Subd. 3.Government and Citizen Services
- Targeted Group and Veterans Business
Preference Program
-0-
20,000
179.26For implementing the preference program
179.27in Minnesota Statutes, section 16C.165,
179.28subdivisions 2, 3, and 4, for businesses that
179.29are not small, but otherwise are eligible
179.30for preference as a designated business
179.31under Minnesota Statutes, section 16C.16,
179.32subdivision 5, or as a veteran-owned
179.33business under Minnesota Statutes, section
180.116C.16, subdivision 6a. This is a onetime
180.2appropriation.
180.3
180.4
Subd. 4.Strategic Management Services -
Capitol Complex Child Care Facility
-0-
300,000
180.5To predesign a child care facility on the
180.6Capitol complex. $150,000 is added to the
180.7base appropriation beginning in fiscal year
180.82018 and continuing in each fiscal year
180.9thereafter for operating the child care facility.
180.10
180.11
Subd. 5.Fiscal Agent - Capitol Workers
Memorial Plaque
-0-
10,000
180.12To design, construct, and install the plaque
180.13or marker authorized in section 28 to honor
180.14those who constructed and died during the
180.15building of the Capitol, as well as those who
180.16worked on subsequent projects to preserve
180.17the building. This amount may be expended
180.18in either year of the biennium. This is a
180.19onetime appropriation.
180.20
Subd. 6.Fiscal Agent - Veterans' Voices
-0-
50,000
180.21For a grant to the Association of Minnesota
180.22Public Educational Radio Stations for
180.23statewide programming to promote the
180.24Veterans' Voices program. This is a onetime
180.25appropriation.

180.26
Sec. 3. MN.IT SERVICES
$
-0-
$
5,000,000
180.27To enhance cybersecurity across state
180.28government and is available until June 30,
180.292019. $47,000 of this appropriation is for
180.30information technology enhancements for the
180.31Gambling Control Board. This is a onetime
180.32appropriation.

180.33
180.34
Sec. 4. MINNESOTA MANAGEMENT AND
BUDGET
$
-0-
$
2,500,000
181.1For statewide information technology
181.2systems and is available until June 30, 2018.
181.3This is a onetime appropriation.

181.4
Sec. 5. REVENUE
$
-0-
$
1,871,000

181.5Tax System Management. $500,000 is for
181.6tax refund fraud protection software and
181.7services.
181.8$1,371,000 is for (1) communication and
181.9outreach; and (2) technology, audit, and
181.10fraud staff.
181.11$2,125,000 is added to the base in fiscal year
181.122018 and $2,125,000 in fiscal year 2019.

181.13
Sec. 6. AMATEUR SPORTS COMMISSION
181.14
Subdivision 1.Total Appropriation
$
-0-
$
16,000,000
181.15
Subd. 2.Mighty Ducks
-0-
15,000,000
181.16For the purposes of making grants under
181.17Minnesota Statutes, section 240A.09,
181.18paragraph (b). This appropriation is a
181.19onetime appropriation and is added to the
181.20appropriations in Laws 2015, chapter 77,
181.21article 1, section 18, and Laws 2015, First
181.22Special Session chapter 5, article 1, section 9.
181.23
Subd. 3.Red Wing Ski Jump
-0-
1,000,000
181.24For a grant to the city of Red Wing for
181.25construction of a ski jump that meets
181.26standards for an Olympic training or
181.27qualifying jump. This is a onetime
181.28appropriation. This appropriation is not
181.29available until $3,000,000 is committed from
181.30nonstate sources.

181.31
Sec. 7. HUMANITIES CENTER
$
-0-
$
95,000
182.1To expand education efforts around the
182.2Veterans' Voices program, and to work
182.3with veterans to educate and engage the
182.4community regarding veterans' contributions,
182.5knowledge, skills, and experiences through
182.6the Veterans' Voices program. This is a
182.7onetime appropriation.

182.8
182.9
Sec. 8. MINNESOTA HISTORICAL
SOCIETY; DIGITAL PRESERVATION
$
-0-
$
170,000
182.10For digital preservation and access, including
182.11planning and implementation of a program to
182.12preserve and make available resources related
182.13to Minnesota history. This appropriation
182.14is a onetime appropriation and is added to
182.15the appropriation in Laws 2015, chapter 77,
182.16article 1, section 23.

182.17
182.18
Sec. 9. MINNESOTA STATE RETIREMENT
SYSTEM
$
-0-
$
2,000,000
182.19Judges Retirement Plan. In fiscal year
182.202017 for transfer to the judges' retirement
182.21fund defined in Minnesota Statutes, section
182.22490.123. This appropriation is included in
182.23the base and the transfer continues each fiscal
182.24year until the judges retirement plan reaches
182.25100 percent funding as determined by an
182.26actuarial valuation prepared under Minnesota
182.27Statutes, section 356.214.

182.28
Sec. 10. MILITARY AFFAIRS
182.29
Subdivision 1.Total Appropriation
$
-0-
$
1,348,000
182.30The amounts that may be spent for each
182.31purpose are specified in the following
182.32subdivisions.
182.33
Subd. 2.Maintenance of Training Facilities
-0-
1,100,000
183.1For security upgrades. This is a onetime
183.2appropriation.
183.3
183.4
Subd. 3.Security Improvement - General
Support
-0-
248,000
183.5For payroll costs and contracted costs of
183.6training and testing to provide security at
183.7state-owned Minnesota National Guard
183.8facilities.

183.9
Sec. 11. VETERANS AFFAIRS
183.10
Subdivision 1.Total Appropriation
$
-0-
$
488,000
183.11
Subd. 2.Veterans Homes Domiciliary Increase
-0-
88,000
183.12To increase the personal needs allowance
183.13for residents of veterans homes. $110,000
183.14is added to the base in fiscal year 2018 and
183.15$114,000 is added to the base in fiscal year
183.162019.
183.17
Subd. 3.Mental Health Study
-0-
150,000
183.18For the study and report in section 26. This
183.19is a onetime appropriation.
183.20
183.21
Subd. 4.Disabled Veterans Interim Housing
Study
-0-
250,000
183.22For the study and report in section 27. This
183.23is a onetime appropriation.
183.24
183.25
Subd. 5.Veterans Homes - Montevideo and
Bemidji
-0-
-0-
183.26The fiscal year 2018 and fiscal year 2019
183.27general fund base appropriation for veterans
183.28homes is increased by $10,000,000 each
183.29fiscal year. This increase is for the operating
183.30costs of 143 skilled nursing beds added
183.31after July 1, 2016, in one or more veteran
183.32homes, including Montevideo and Bemidji.
183.33None of this increased amount may be used
184.1for operating costs at a veterans home in
184.2Minneapolis.

184.3    Sec. 12. Minnesota Statutes 2014, section 16B.33, subdivision 3, is amended to read:
184.4    Subd. 3. Agencies must request designer. (a) Application. Upon undertaking a
184.5project with an estimated cost greater than $2,000,000 $10,000,000 or a planning project
184.6with estimated fees greater than $200,000 $1,000,000, every user agency, except the
184.7Capitol Area Architectural and Planning Board, shall submit a written request for a
184.8primary designer for its project to the commissioner, who shall forward the request to the
184.9board. The University of Minnesota and the Minnesota State Colleges and Universities
184.10shall follow the process in subdivision 3a to select designers for their projects. The written
184.11request must include a description of the project, the estimated cost of completing the
184.12project, a description of any special requirements or unique features of the proposed
184.13project, and other information which will assist the board in carrying out its duties and
184.14responsibilities set forth in this section.
184.15(b) Reactivated project. If a project for which a designer has been selected by the
184.16board becomes inactive, lapses, or changes as a result of project phasing, insufficient
184.17appropriations, or other reasons, the commissioner, the Minnesota State Colleges and
184.18Universities, or the University of Minnesota may, if the project is reactivated, retain
184.19the same designer to complete the project.
184.20(c) Fee limit reached after designer selected. If a project initially estimated to
184.21be below the cost and planning fee limits of this subdivision has its cost or planning
184.22fees revised so that the limits are exceeded, the project must be referred to the board for
184.23designer selection even if a primary designer has already been selected. In this event, the
184.24board may, without conducting interviews, elect to retain the previously selected designer
184.25if it determines that the interests of the state are best served by that decision and shall
184.26notify the commissioner of its determination.

184.27    Sec. 13. Minnesota Statutes 2014, section 16B.33, subdivision 4, is amended to read:
184.28    Subd. 4. Designer selection process. (a) Publicity. Upon receipt of a request
184.29from a user agency for a primary designer, the board shall publicize the proposed
184.30project in order to determine the identity of designers interested in the design work on
184.31the project. The board shall establish criteria for the selection process and make this
184.32information public, and shall compile data on and conduct interviews of designers. The
184.33board's selection criteria must include consideration of the geographic proximity of each
184.34interested designer's primary place of business to the location of the project and each
185.1interested designer's performance on previous projects for the state or any other person.
185.2Upon completing the process, the board shall select the primary designer and shall state its
185.3reasons in writing. If the board's vote for the selection of a primary designer results in a tie
185.4vote, the nonvoting member appointed under subdivision 2, paragraph (b), must vote for
185.5the selection of the primary designer. Notification to the commissioner of the selection
185.6shall be made not more than 60 days after receipt from a user agency of a request for a
185.7primary designer. The commissioner shall promptly notify the designer and the user
185.8agency. The commissioner shall negotiate the designer's fee and prepare the contract to
185.9be entered into between the designer and the user agency.
185.10(b) Conflict of interest. A board member may not participate in the review,
185.11discussion, or selection of a designer or firm in which the member has a financial interest.
185.12(c) Selection by commissioner. In the event the board receives a request for a
185.13primary designer on a project, the estimated cost of which is less than the limit established
185.14by subdivision 3, or a planning project with estimated fees of less than the limit established
185.15by subdivision 3, the board may submit the request to the commissioner of administration,
185.16with or without recommendations, and the commissioner shall thereupon select the
185.17primary designer for the project.
185.18(d) Second selection. If the designer selected for a project declines the appointment
185.19or is unable to reach agreement with the commissioner on the fee or the terms of the
185.20contract, the commissioner shall, within 60 days after the first appointment, request the
185.21board to make another selection.
185.22(e) Sixty days to select. If the board fails to make a selection and forward its
185.23recommendation to the commissioner within 60 days of the user agency's request
185.24for a designer, the commissioner may appoint a designer to the project without the
185.25recommendation of the board.
185.26(f) Less than satisfactory performance. The commissioner, or the University of
185.27Minnesota and the Minnesota State Colleges and Universities for projects under their
185.28supervision, shall forward to the board a written report describing each instance in which
185.29the performance of a designer selected by the board or the commissioner has been less
185.30than satisfactory. Criteria for determining satisfaction include the ability of the designer to
185.31complete design work on time, to provide a design responsive to program needs within
185.32the constraints of the budget, to solve design problems and achieve a design consistent
185.33with the proposed function of the building, to avoid costly design errors or omissions,
185.34and to observe the construction work. These reports are public data and are available for
185.35inspection under section 13.03.

186.1    Sec. 14. [16C.165] PROCUREMENT FROM OTHER TARGETED AND
186.2VETERAN-OWNED BUSINESSES.
186.3    Subdivision 1. Designation of eligible groups. The commissioner may designate
186.4businesses that are not small but otherwise qualify under section 16C.16, subdivisions 5
186.5and 6a, as eligible for preferences under this section.
186.6    Subd. 2. Preference. The commissioner may award up to a three percent preference
186.7for specified goods, services, or construction to businesses designated under subdivision 1.
186.8    Subd. 3. Limitations on preference. If the application of preference under
186.9subdivision 2 precludes a business designated under section 16C.16, subdivisions 5 and
186.106a, from receiving an award, the preference in subdivision 2 shall not be applied.
186.11    Subd. 4. Subcontracting incentives and penalties. The financial incentives for
186.12prime contractors who exceed the goals for use of small business or small targeted group
186.13business subcontractors and financial penalties for prime contractors who fail to meet the
186.14goals for use of small business or small targeted group business subcontractors apply to
186.15businesses designated under subdivision 1.
186.16    Subd. 5. Mentoring program. The commissioner shall collaborate with
186.17organizations that represent targeted group and veteran-owned businesses to prepare
186.18recommendations for establishing a targeted group and veteran-owned business mentoring
186.19program that incentivizes larger businesses to mentor businesses certified under
186.20subdivision 1 and section 16C.16.

186.21    Sec. 15. Minnesota Statutes 2015 Supplement, section 16C.19, is amended to read:
186.2216C.19 ELIGIBILITY; RULES.
186.23(a) A small business wishing to participate in the programs under section 16C.16,
186.24subdivisions 4 to 7, or 16C.165, must be certified by the commissioner or by a nationally
186.25recognized certifying organization authorized by the commissioner. The commissioner
186.26shall adopt by rule standards and procedures for certifying that small targeted group
186.27businesses, small businesses located in economically disadvantaged areas, and
186.28veteran-owned small businesses are eligible to participate under the requirements of
186.29sections 16C.16 to 16C.21. The commissioner shall adopt by rule under paragraph (g)
186.30standards and procedures for certifying that businesses designated under section 16C.165
186.31are eligible to participate. The commissioner shall adopt by rule standards and procedures
186.32for hearing appeals and grievances and other rules necessary to carry out the duties set
186.33forth in sections 16C.16 to 16C.21.
187.1(b) The commissioner may make rules which exclude or limit the participation of
187.2nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
187.3manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
187.4(c) The commissioner may make rules that set time limits and other eligibility limits
187.5on business participation in programs under sections 16C.16 to 16C.21.
187.6(d) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
187.7veteran-owned small business, the principal place of business of which is in Minnesota,
187.8is certified if:
187.9(1) it has been verified by the United States Department of Veterans Affairs as
187.10being either a veteran-owned small business or a service-disabled veteran-owned small
187.11business, in accordance with Public Law 109-461 and Code of Federal Regulations, title
187.1238, part 74; or
187.13(2) the veteran-owned small business supplies the commissioner with proof that the
187.14small business is majority-owned and operated by:
187.15(i) a veteran as defined in section 197.447; or
187.16(ii) a veteran with a service-connected disability, as determined at any time by the
187.17United States Department of Veterans Affairs.
187.18(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
187.19veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
187.20be read to include veteran-owned small businesses. In addition to the documentation
187.21required in Minnesota Rules, part 1230.1700, the veteran owner must have been
187.22discharged under honorable conditions from active service, as indicated by the veteran
187.23owner's most current United States Department of Defense form DD-214.
187.24(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
187.25minority- or woman-owned small business, the principal place of business of which is
187.26in Minnesota, is certified if it has been certified by the Minnesota unified certification
187.27program under the provisions of Code of Federal Regulations, title 49, part 26.
187.28(g) The commissioner may adopt rules to implement the programs under section
187.2916C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

187.30    Sec. 16. Minnesota Statutes 2014, section 16E.0466, is amended to read:
187.3116E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
187.32    (a) Every state agency with an information or telecommunications project must
187.33consult with the Office of MN.IT Services to determine the information technology cost
187.34of the project. Upon agreement between the commissioner of a particular agency and
187.35the chief information officer, the agency must transfer the information technology cost
188.1portion of the project to the Office of MN.IT Services. Service level agreements must
188.2document all project-related transfers under this section. Those agencies specified in
188.3section 16E.016, paragraph (d), are exempt from the requirements of this section.
188.4(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating
188.5balance appropriated to a state agency may be transferred to the information and
188.6telecommunications technology systems and services account for the information
188.7technology cost of a specific project, subject to the review of the Legislative Advisory
188.8Commission, under section 16E.21, subdivision 3.

188.9    Sec. 17. Minnesota Statutes 2014, section 16E.21, subdivision 2, is amended to read:
188.10    Subd. 2. Charges. Upon agreement of the participating agency, the Office of
188.11MN.IT Services may collect a charge or receive a fund transfer under section 16E.0466
188.12for purchases of information and telecommunications technology systems and services
188.13by state agencies and other governmental entities through state contracts for purposes
188.14described in subdivision 1. Charges collected under this section must be credited to the
188.15information and telecommunications technology systems and services account.

188.16    Sec. 18. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision
188.17to read:
188.18    Subd. 3. Legislative Advisory Commission review. (a) No funds may be
188.19transferred to the information and telecommunications technology systems and services
188.20account under subdivision 2 or section 16E.0466 until the commissioner of management
188.21and budget has submitted the proposed transfer to the members of the Legislative
188.22Advisory Commission for review and recommendation. If the commission makes a
188.23positive recommendation or no recommendation, or if the commission has not reviewed
188.24the request within 20 days after the date the request to transfer funds was submitted,
188.25the commissioner of management and budget may approve the request to transfer the
188.26funds. If the commission recommends further review of a request to transfer funds, the
188.27commissioner shall provide additional information to the commission. If the commission
188.28makes a negative recommendation on the request within ten days of receiving further
188.29information, the commissioner shall not approve the fund transfer. If the commission
188.30makes a positive recommendation or no recommendation within ten days of receiving
188.31further information, the commissioner may approve the fund transfer.
188.32(b) A recommendation of the commission must be made at a meeting of the
188.33commission unless a written recommendation is signed by all members entitled to vote on
189.1the item as specified in section 3.30, subdivision 2. A recommendation of the commission
189.2must be made by a majority of the commission.

189.3    Sec. 19. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision
189.4to read:
189.5    Subd. 4. Lapse. Any portion of any receipt credited to the information and
189.6telecommunications technology systems and services account from a fund transfer under
189.7subdivision 2 that remains unexpended and unencumbered at the close of the fiscal year
189.8four years after the funds were received in the account shall lapse to the fund from which
189.9the receipt was transferred.

189.10    Sec. 20. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision
189.11to read:
189.12    Subd. 5. Report. The chief information officer shall report by September 15 of
189.13each odd-numbered year to the chairs and ranking minority members of the legislative
189.14committees and divisions with jurisdiction over the office regarding the receipts credited
189.15to the account. The report must include a description of projects funded through the
189.16information and telecommunications technology systems and services account and each
189.17project's current status.

189.18    Sec. 21. Minnesota Statutes 2014, section 198.03, subdivision 2, is amended to read:
189.19    Subd. 2. Cost of care. (a) The commissioner shall set out in rules the method of
189.20calculating the average cost of care for the domiciliary and nursing care residents. The cost
189.21must be determined yearly based upon the average cost per resident taking into account,
189.22but not limited to, administrative cost of the homes, the cost of service available to the
189.23resident, and food and lodging costs. These average costs must be calculated separately for
189.24domiciliary and nursing care residents. The amount charged each resident for maintenance,
189.25if anything, must be based on the appropriate average cost of care calculation and the
189.26assets and income of the resident but must not exceed the appropriate average cost of care.
189.27(b) Using the authority granted in section 198.03, the commissioner shall set out
189.28in rules the method of calculating each domiciliary resident's maintenance charge. This
189.29maintenance charge shall establish a personal needs allowance based on each domiciliary
189.30resident's monthly income. For the period of July 1, 2016, to June 30, 2017, the personal
189.31needs allowance shall not be less than $122 per month. For the period of July 1, 2017,
189.32to June 30, 2018, the personal needs allowance shall not be less than $130 per month.
189.33Thereafter, the minimum personal needs allowance must be adjusted by multiplying
190.1the allowance by one-half of the percentage change of the Consumer Price Index on
190.2the first day of each fiscal year.
190.3EFFECTIVE DATE.This section is effective the day following final enactment.

190.4    Sec. 22. Minnesota Statutes 2014, section 198.03, subdivision 3, is amended to read:
190.5    Subd. 3. Arrearages. Residents are liable for paying all of their overdue
190.6maintenance charges. Overdue maintenance charges incurred after May 1, 1990, may be
190.7charged interest according to section 334.01. A resident owing overdue maintenance to
190.8the state of Minnesota for charges incurred prior to May 1, 1990, may continue to stay in
190.9the home if the resident enters into an agreement, including a payment schedule, with the
190.10administrator for the payment of the arrearage and abides by the agreement. Residents
190.11who do not promptly pay maintenance or who do not abide by their agreements to pay
190.12overdue maintenance to the state of Minnesota may be discharged from the home. The
190.13payment schedule agreed to between the administrator and the resident must provide for
190.14the prompt payment of the overdue maintenance owed by the resident, but it must not
190.15reduce the resident's personal needs allowance below that which is provided for in the
190.16administrative rules of the facility the amounts specified in subdivision 2.
190.17EFFECTIVE DATE.This section is effective the day following final enactment.

190.18    Sec. 23. [198.365] VETERANS HOMES; MONTEVIDEO AND BEMIDJI.
190.19    Subdivision 1. Veterans homes established. The commissioner of veterans affairs
190.20may apply for federal funding and establish in Montevideo and Bemidji veterans homes
190.21with up to 143 beds available for eligible veterans and their spouses. The state shall
190.22provide the necessary operating costs for the veterans homes in excess of any revenue
190.23and federal funding for the homes that may be required to continue the operation of the
190.24homes and care for Minnesota veterans.
190.25    Subd. 2. Nonstate contribution. The commissioner of administration may accept
190.26contributions of land or money from private individuals, businesses, local governments,
190.27veterans service organizations, and other nonstate sources for the purpose of providing
190.28matching funding when soliciting federal funding for the development of the homes.

190.29    Sec. 24. Laws 2015, chapter 77, article 1, section 3, is amended to read:
190.30
190.31
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
3,615,000
$
3,616,000
191.1(a) This appropriation is to fund the Office of
191.2the Governor and Lieutenant Governor.
191.3(b) Up to $19,000 the first year and up to
191.4$19,000 the second year are for necessary
191.5expenses in the normal performance of
191.6the Governor's and Lieutenant Governor's
191.7duties for which no other reimbursement is
191.8provided.
191.9(c) During the biennium ending June 30,
191.102017, and thereafter, the Office of the
191.11Governor may receive payments each fiscal
191.12year from other executive agencies under
191.13Minnesota Statutes, section 15.53, to support
191.14office costs, not including the residence
191.15groundskeeper, incurred by the office.
191.16Payments received under this paragraph must
191.17be deposited in a special revenue account.
191.18Money in the account is appropriated to the
191.19Office of the Governor.
191.20(c) (d) By September 1 of each year, the
191.21commissioner of management and budget
191.22shall report to the chairs and ranking minority
191.23members of the senate State Departments
191.24and Veterans Affairs Budget Division and the
191.25house of representatives State Government
191.26Finance Committee any personnel costs
191.27incurred by the Offices of the Governor and
191.28Lieutenant Governor that were supported
191.29by appropriations to other agencies during
191.30the previous fiscal year. The Office of the
191.31Governor shall inform the chairs and ranking
191.32minority members of the committees before
191.33initiating any interagency agreements.

192.1    Sec. 25. ALLOCATING SENATE SPACE IN THE STATE OFFICE BUILDING
192.2TO THE REVISOR OF STATUTES; APPROPRIATION.
192.3    Subdivision 1. State Office Building space allocation. At the direction of the
192.4senate minority leader, the 5,000 square feet of the first floor space in the State Office
192.5Building allocated to the senate in the 2003 space allocation agreement entered into by the
192.6house of representatives, the senate, and the governor is allocated to the revisor of statutes.
192.7    Subd. 2. Lease cancellation. Within five days of the effective date of this section,
192.8the commissioner of administration shall give notice to terminate the lease for the space at
192.9525 Park Avenue, St. Paul, that is occupied by the revisor of statutes. The termination
192.10shall be effective 30 days after the notice.
192.11    Subd. 3. Cancellation; appropriation. The amount saved in fiscal years 2016
192.12and 2017, under subdivisions 1 and 2, estimated at $56,683, by allocating the space in
192.13the State Office Building to the revisor of statutes is canceled on the effective date of this
192.14section from the general fund appropriation to the Legislative Coordinating Commission
192.15in Laws 2015, chapter 77, article 1, section 4. The same amount is appropriated from the
192.16general fund in fiscal year 2016 to the commissioner of administration to remodel, furnish,
192.17and equip the space in the State Office Building as needed to accommodate the revisor of
192.18statutes. This appropriation is available until June 30, 2017.
192.19EFFECTIVE DATE.This section is effective the day following final enactment.

192.20    Sec. 26. STUDY ON VETERANS' UNMET NEEDS FOR BEHAVIOR AND
192.21MENTAL HEALTH SERVICES.
192.22The commissioner of veterans affairs shall perform a study to quantify and describe
192.23unmet needs amongst Minnesota veterans for behavioral and mental health services. The
192.24study will include conducting focus groups of stakeholders, including veterans and their
192.25families, representatives of the United States Veterans Administration, community referral
192.26centers, and county veteran service officers. The commissioner of veterans affairs may
192.27contract with a statewide nonprofit organization to conduct the study. The commissioner
192.28of veterans affairs shall report by February 15, 2017, to the chairs and ranking minority
192.29members of the committees in the house of representatives and the senate with jurisdiction
192.30over veterans policy and budget with the findings of the study and with recommendations
192.31about how current services provided to veterans could be expanded to better meet the
192.32needs identified by the study.

192.33    Sec. 27. FEASIBILITY STUDY ON PARTNERSHIPS TO PROVIDE INTERIM
192.34HOUSING FOR DISABLED VETERANS.
193.1The commissioner of veterans affairs shall study the feasibility of partnering with
193.2an established nonprofit organization to provide interim housing for disabled veterans in
193.3conjunction with fully integrated and customizable support services. The commissioner of
193.4veterans affairs shall submit a report including its findings and recommendations regarding
193.5the feasibility of such a partnership to the chairs and ranking minority members of the
193.6standing committees in the house of representatives and the senate having jurisdiction
193.7over veterans affairs by February 15, 2017.

193.8    Sec. 28. PLAQUE OR MARKER AUTHORIZED TO HONOR CAPITOL
193.9CONSTRUCTION WORKERS.
193.10(a) A plaque or three-dimensional marker shall be placed in the Capitol building in
193.11a space easily visible to public visitors to recognize and honor the efforts and sacrifice
193.12of workers who constructed the State Capitol building, as well as those who worked on
193.13subsequent projects to preserve the building. The plaque or marker shall specifically honor
193.14the six workers who died during construction of the State Capitol building. The Capitol
193.15Area Architectural and Planning Board and the Minnesota Historical Society shall set the
193.16parameters and location for the memorial plaque or marker.
193.17(b) The Capitol Area Architectural and Planning Board shall conduct an opportunity
193.18contest for sixth graders from across the state to submit designs for the memorial plaque
193.19or marker. The board shall select a design from those submissions to be used as a basis for
193.20the final production of this plaque or marker by January 1, 2017. The memorial plaque or
193.21marker shall be installed during the completion of the Capitol remodel.

193.22    Sec. 29. IMMIGRATION INTEGRATION ADVISORY TASK FORCE.
193.23(a) The Immigration Integration Advisory Task Force is created to research state laws
193.24and rules that negatively affect immigrants. The task force is composed of the following:
193.25(1) five members appointed by the governor to represent Minnesota's diverse
193.26immigrant communities;
193.27(2) two members of the house of representatives, one appointed by the speaker of
193.28the house and one appointed by the minority leader; and
193.29(3) two senators, one appointed by the senate majority leader and one appointed by
193.30the senate minority leader.
193.31(b) At its first meeting, the task force shall elect a chair and cochair from its
193.32membership. The commissioner of human rights shall provide meeting space and
193.33administrative and staff support for the task force.
193.34(c) The task force shall conduct research and hold meetings to:
194.1(1) determine the extent to which current state laws and rules negatively affect
194.2Minnesotans based on their status as immigrants; and
194.3(2) develop methods to ensure that future proposed state laws and rules consider
194.4the impact of the proposals on immigrants.
194.5The task force shall consult with the Minnesota Council on Latino Affairs, the Council for
194.6Minnesotans of African Heritage, and the Council on Asian-Pacific Minnesotans. The task
194.7force shall report to the chairs and ranking minority members of the committees in the
194.8house of representatives and the senate with jurisdiction over human rights by January 15,
194.92017, with recommendations and draft legislation for changes in state laws, consistent
194.10with federal law, that will reduce the negative impact of state laws on immigrants, and
194.11ensure that future state laws and rules consider the impact on immigrants.
194.12(d) The appointing authorities must make their initial appointments by August 1,
194.132016. The commissioner of human rights shall convene the first meeting of the task
194.14force by September 1, 2016.
194.15(e) Public members shall be compensated and reimbursed for expenses as provided
194.16in Minnesota Statutes, section 15.059, subdivision 3.
194.17(f) The task force shall expire on January 30, 2017, or the day after submitting the
194.18report required under paragraph (c), whichever is earlier.
194.19EFFECTIVE DATE.This section is effective the day following final enactment.

194.20ARTICLE 9
194.21PUBLIC SAFETY AND CORRECTIONS

194.22
Section 1. APPROPRIATIONS.
194.23The sums shown in the column under "Appropriations" are added to the
194.24appropriations in Laws 2015, chapter 65, article 1, to the agencies and for the purposes
194.25specified in this article. The appropriations are from the general fund and are available for
194.26the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this
194.27article mean that the addition to the appropriation listed under them is available for the fiscal
194.28year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations
194.29for the fiscal year ending June 30, 2016, are effective the day following final enactment.
194.30
APPROPRIATIONS
194.31
Available for the Year
194.32
Ending June 30
194.33
2016
2017

194.34
Sec. 2. SUPREME COURT
$
-0-
$
5,000,000
195.1For a competitive grant program established
195.2by the chief justice for the distribution of
195.3safe and secure courthouse fund grants to
195.4government entities responsible for providing
195.5or maintaining a courthouse or other facility
195.6where court proceedings are held. Grant
195.7recipients must provide a 50 percent nonstate
195.8match. This is a onetime appropriation and is
195.9available until June 30, 2019.

195.10
Sec. 3. DISTRICT COURTS
$
-0-
$
1,547,000
195.11To increase the juror per diem to $20 and the
195.12juror mileage reimbursement rate to 54 cents
195.13per mile.

195.14
Sec. 4. GUARDIAN AD LITEM BOARD
$
-0-
$
1,581,000
195.15To hire additional guardians ad litem to
195.16comply with federal and state mandates,
195.17and court orders for representing the best
195.18interests of children in juvenile and family
195.19court proceedings.

195.20
Sec. 5. HUMAN RIGHTS
$
-0-
$
400,000
195.21To enhance statewide outreach, education,
195.22and enforcement of the Human Rights Act.

195.23
Sec. 6. CORRECTIONS
195.24
Subdivision 1.Total Appropriation
$
5,741,000
$
29,026,000
195.25The amounts that may be spent for each
195.26purpose are specified in the following
195.27subdivisions.
195.28
Subd. 2.Correctional Institutions
5,437,000
20,921,000
195.29(a) Employee Compensation
196.1$2,827,000 in fiscal year 2016 and
196.2$8,912,000 in fiscal year 2017 are for
196.3employee compensation.
196.4(b) Challenge Incarceration Expansion
196.5$2,610,000 in fiscal year 2016 and $2,757,000
196.6in fiscal year 2017 are to increase capacity
196.7in the challenge incarceration program. The
196.8base for this activity is $3,263,000 in fiscal
196.9year 2018 and $3,623,000 in fiscal year 2019.
196.10(c) Infectious Disease Management
196.11$3,000,000 in fiscal year 2017 is for
196.12infectious disease management.
196.13(d) 24-Hour Nursing
196.14$1,500,000 in fiscal year 2017 is for 24-hour
196.15nursing coverage seven days a week at
196.16MCF-Shakopee, MCF-St. Cloud, MCF-Lino
196.17Lakes, and MCF-Stillwater.
196.18(e) Behavioral and Mental Health
196.19$1,550,000 in fiscal year 2017 is for
196.20behavioral and mental health therapists and
196.21increased security staffing at MCF-Oak Park
196.22Heights.
196.23(f) Increased Security Staffing
196.24$1,800,000 in fiscal year 2017 is for increased
196.25security staffing systemwide.
196.26(g) New Chemical Dependency/Mental
196.27Health Beds
196.28$750,000 in fiscal year 2017 is for 70 new
196.29chemical dependency/mental health beds.
196.30(h) Chemical Dependency Release Planner,
196.31MCF-Shakopee
197.1$125,000 in fiscal year 2017 is for a
197.2chemical dependency release planner at
197.3MCF-Shakopee.
197.4(i) Chemical Dependency Release Planner,
197.5MCF-Stillwater
197.6$125,000 in fiscal year 2017 is for a
197.7chemical dependency release planner at
197.8MCF-Stillwater.
197.9(j) EMPLOY Program Expansion
197.10$375,000 in fiscal year 2017 is to expand
197.11the EMPLOY program administered by
197.12MINNCOR.
197.13
Subd. 3.Community Services
241,000
4,766,000
197.14(a) Employee Compensation
197.15$241,000 in fiscal year 2016 and $860,000
197.16in fiscal year 2017 are for employee
197.17compensation.
197.18(b) Challenge Incarceration Expansion
197.19$406,000 in fiscal year 2017 is to increase
197.20capacity in the challenge incarceration
197.21program. The base for this activity is
197.22$812,000 in fiscal year 2018 and $1,421,000
197.23in fiscal year 2019.
197.24(c) Victim Notification System
197.25$1,000,000 in fiscal year 2017 is for a
197.26victim notification system. This is a onetime
197.27appropriation.
197.28(d) Reentry and Halfway Houses
197.29$500,000 in fiscal year 2017 is for grants to
197.30counties or groups of counties for reentry and
197.31halfway house services. Eligible programs
197.32must be proven to reduce recidivism. Grant
198.1recipients must provide a 50 percent nonstate
198.2match.
198.3(e) High-Risk Revocation Reduction
198.4Programs
198.5$2,000,000 in fiscal year 2017 is to establish
198.6two high-risk revocation reduction programs,
198.7one in the metropolitan area and the other
198.8in greater Minnesota. Each program shall
198.9receive $1,000,000 to provide sustained case
198.10planning, housing assistance, employment
198.11assistance, group mentoring, life skills
198.12programming, and transportation assistance
198.13to adult release violators who are being
198.14released from prison.
198.15
Subd. 4.Operations Support
63,000
3,339,000
198.16(a) Employee Compensation
198.17$63,000 in fiscal year 2016 and $339,000
198.18in fiscal year 2017 are for employee
198.19compensation.
198.20(b) Information Technology Critical
198.21Updates
198.22$3,000,000 in fiscal year 2017 is for
198.23information technology upgrades and
198.24staffing. The base for this activity is $783,000
198.25in each of fiscal years 2018 and 2019.

198.26
Sec. 7. PUBLIC SAFETY
$
-0-
$
1,567,000
198.27The amounts that may be spent for each
198.28purpose are specified in the following
198.29paragraphs.
198.30(a) DNA Lab
198.31$650,000 is for the Bureau of Criminal
198.32Apprehension DNA lab, including the
198.33addition of eight forensic scientists. The base
199.1for this activity is $1,000,000 in each of the
199.2fiscal years 2018 and 2019.
199.3(b) Missing Person Training
199.4$100,000 is to provide regional and statewide
199.5training for law enforcement on best practices
199.6in responding to and investigating missing
199.7persons reports. This training must include
199.8information on:
199.9(1) handling cases involving persons with
199.10dementia, traumatic brain injury, Alzheimer's
199.11disease, or other mental disabilities; and
199.12(2) developing agency policies and
199.13procedural checklists in missing person
199.14cases.
199.15(c) Assessment of Law Enforcement Needs
199.16$88,000 is for a grant to the Arrowhead
199.17Regional Development Commission to
199.18conduct an assessment of law enforcement
199.19needs for detention facilities in northeast
199.20Minnesota. This is a onetime appropriation.
199.21(d) Children In Need of Services or in
199.22Out-Of-Home Placement
199.23$150,000 is for a grant to an organization
199.24that provides legal representation to children
199.25in need of protection or services and children
199.26in out-of-home placement. The grant is
199.27contingent upon a match in an equal amount
199.28from nonstate funds. The match may be
199.29in kind, including the value of volunteer
199.30attorney time, or in cash, or in a combination
199.31of the two.
199.32(e) Youth Intervention Programs
200.1$129,000 is for youth intervention programs
200.2under Minnesota Statutes, section 299A.73.
200.3This is a onetime appropriation.
200.4(f) Mental Health Crisis Training
200.5Curriculum
200.6$150,000 is for grants to organizations
200.7to develop curriculum, including online
200.8training, to meet the training requirements
200.9under section 8. This is a onetime
200.10appropriation.
200.11(g) Autism Training
200.12$50,000 is to select and retain a person or
200.13entity to train law enforcement, firefighters,
200.14and EMTs to better respond to emergency
200.15encounters and crisis situations with
200.16individuals with autism spectrum disorder
200.17and to train other individuals or entities
200.18to conduct this training to create a Cop
200.19Autism Response Education (CARE) pilot
200.20program. When selecting a trainer, the
200.21commissioner shall consider the trainer's
200.22Peace Officer Standards and Training
200.23Board qualified training experience, and
200.24demonstrated knowledge on methods to
200.25help responders to effectively respond to
200.26emergency situations involving people
200.27with autism spectrum disorder and other
200.28related disabilities. The commissioner shall
200.29consult with the Peace Officer Standards and
200.30Training Board and the Minnesota Board of
200.31Firefighter Training and Education before
200.32selecting a trainer. By February 15, 2017,
200.33the commissioner shall report to the chairs
200.34and ranking minority members of the senate
200.35and house of representatives committees
201.1having jurisdiction over criminal justice
201.2policy and funding on the trainer selected
201.3and the training conducted pursuant to this
201.4section, including the number of emergency
201.5responders trained and the departments they
201.6represent. This is a onetime appropriation
201.7and is available until June 30, 2019.
201.8(h) Sex Trafficking
201.9$250,000 is for grants to state and local units
201.10of government for the following purposes:
201.11(1) to support new or existing
201.12multijurisdictional entities to investigate sex
201.13trafficking crimes; and
201.14(2) to provide technical assistance for
201.15sex trafficking crimes, including training
201.16and case consultation, to law enforcement
201.17agencies statewide.

201.18    Sec. 8. [626.8473] TRAINING IN RESPONDING TO A MENTAL HEALTH
201.19CRISIS.
201.20    Subdivision 1. Training course. The board, in consultation with the commissioner
201.21of human services and mental health stakeholders, shall create a list of approved training
201.22courses to instruct peace officers holding an active license in the techniques of responding
201.23to a mental health crisis. A course must include instruction on one or more of the
201.24following issues:
201.25(1) techniques for relating to individuals with mental illnesses and their families;
201.26(2) techniques for crisis de-escalation;
201.27(3) techniques for relating to diverse communities and education on mental health
201.28diversity;
201.29(4) education on mental illnesses and the criminal justice system;
201.30(5) education on community resources and supports for individuals experiencing a
201.31mental health crisis and for their families;
201.32(6) education on psychotropic medications and their side effects;
201.33(7) education on co-occurring mental illnesses and substance use disorders;
201.34(8) education on suicide prevention; and
202.1(9) education on mental illnesses and disorders and their symptoms.
202.2A course also must provide information on local mental health crisis teams in each
202.3participating officer's jurisdiction, including a summary of the services offered by the
202.4team and its contact information, and must include training on children and families of
202.5individuals with mental illnesses to enable officers to respond appropriately to others
202.6who are present during a mental health crisis. The board shall update the training list
202.7periodically as it deems appropriate.
202.8    Subd. 2. Training requirement. An individual shall complete a minimum of four
202.9hours of continuing education training under subdivision 1 over three years.
202.10EFFECTIVE DATE.This section is effective July 1, 2017.

202.11ARTICLE 10
202.12TRANSPORTATION APPROPRIATIONS

202.13    Section 1. Laws 2015, chapter 75, article 1, section 1, is amended to read:
202.14
Section 1. SUMMARY OF APPROPRIATIONS.
202.15The amounts shown in this section summarize direct appropriations by fund made
202.16in this act, and do not have legal effect.
202.17
2016
2017
Total
202.18
202.19
General
$
139,347,000
$
135,792,000
137,488,000
$
275,139,000
276,835,000
202.20
202.21
Airports
25,109,000
35,368,000
25,109,000
25,922,000
50,218,000
61,290,000
202.22
C.S.A.H.
670,768,000
698,495,000
1,369,263,000
202.23
M.S.A.S.
170,743,000
178,141,000
348,884,000
202.24
Special Revenue
61,475,000
62,210,000
123,685,000
202.25
H.U.T.D.
2,192,000
2,213,000
4,405,000
202.26
202.27
Trunk Highway
1,673,708,000
1,672,006,000
1,676,646,000
3,345,714,000
3,350,354,000
202.28
202.29
Total
$
2,743,342,000
2,753,601,000
$
2,773,966,000
2,781,115,000
$
5,517,308,000
5,534,716,000

202.30    Sec. 2. Laws 2015, chapter 75, article 1, section 3, subdivision 1, is amended to read:
202.31
Subdivision 1.Total Appropriation
$
2,488,269,000
$
2,496,573,000
202.32
2,498,528,000
2,498,912,000
202.33
Appropriations by Fund
202.34
2016
2017
202.35
202.36
General
44,115,000