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HF 2749

3rd Engrossment - 89th Legislature (2015 - 2016) Posted on 07/18/2016 02:26pm

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

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A bill for an act
relating to state government; providing supplemental appropriations and policy
for higher education, agriculture, broadband development, state agencies,
the courts, public safety, corrections, environment, natural resources, state
government, veterans, jobs, economic development, labor and industry,
commerce, housing finance, health and human services, early childhood
education, voluntary prekindergarten, kindergarten through grade 12 education,
and community and adult education; providing for the James Metzen Mighty
Ducks Ice Center Development Act; providing policy initiatives for state
government programs; making policy, technical, and conforming changes to
various provisions, including provisions governing broadband development,
state broadband goals, postsecondary student aid programs, agriculture, driver's
licenses, identification cards, predatory offender registration, prostitution, game
and fish, natural resources, state lands, watercraft, recreational vehicles, energy,
utilities, state agencies, the Board of Barbers, veterans, economic development,
labor and industry, housing, the Public Employment Relations Board, Explore
Minnesota Tourism, commerce, children and family services, mental and
chemical health services, direct care and treatment, continuing care, health
care programs, Department of Health programs, and health-related licensing;
making forecast adjustments; making adjustments to certain appropriations;
specifying requirements for construction of highways on tribal lands; creating
a surrogacy commission; modifying state procurement contracts; establishing
certain programs and incentives; providing an income tax subtraction for military
retirement pay; providing an income tax credit for parents of stillborn children;
modifying the sales and use tax rate for retail sales of modular homes; increasing
maximum sentence for felony assault motivated by bias; permitting the purchase
and possession of alcohol by sensory testing firms; authorizing the issuance of
certain liquor licenses; authorizing transfers; creating accounts; creating task
forces; requiring reports; authorizing rulemaking; providing criminal penalties;
amending Minnesota Statutes 2014, sections 3.3005, subdivisions 3, 3b, 4, 5, 6,
by adding subdivisions; 13.3805, by adding a subdivision; 16A.103, by adding a
subdivision; 16C.10, subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a
subdivision; 16E.0466; 16E.21, subdivision 2, by adding subdivisions; 17.117,
subdivisions 4, 11a; 17.4982, subdivision 18a; 18B.26, subdivision 3; 41A.12,
subdivision 2; 61A.24, by adding a subdivision; 61A.25, by adding a subdivision;
62D.04, subdivision 1; 62D.08, subdivision 3; 62J.495, subdivision 4; 62J.496,
subdivision 1; 62V.05, by adding a subdivision; 84.027, subdivision 13; 84.091,
subdivision 2; 84.798, subdivision 2; 84.8035; 84D.01, subdivision 2; 84D.05,
subdivision 1; 84D.09, subdivision 2; 84D.10, subdivision 4; 84D.108, by adding
a subdivision; 84D.13, subdivision 4; 85.015, subdivision 13; 86B.005, by adding
subdivisions; 88.01, by adding a subdivision; 88.22, subdivision 1; 89.0385;
93.0015, subdivision 3; 93.2236; 94.3495, subdivisions 2, 3, 7; 97A.075,
subdivision 7; 97A.405, subdivision 2; 97A.465, by adding a subdivision;
115C.09, subdivisions 1, 3; 115C.13; 116J.395, subdivisions 4, 5, by adding
subdivisions; 116J.423; 116J.424; 116J.431, subdivisions 1, 2, 4, 6; 116J.68;
116J.8737, subdivisions 2, 3, 5, 12; 116J.8747, subdivisions 1, 2; 116L.99;
116M.14, subdivisions 2, 4, by adding subdivisions; 116M.15, subdivision 1, by
adding a subdivision; 116M.17, subdivisions 2, 4; 116M.18; 120A.42; 120B.02,
by adding a subdivision; 120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a,
2, 3, 4, 5; 120B.12, subdivision 2; 120B.15; 120B.232; 120B.30, subdivision 2, by
adding a subdivision; 120B.31, subdivision 5, by adding subdivisions; 120B.35;
120B.36, as amended; 121A.53; 121A.61, subdivision 3; 121A.64; 122A.09, as
amended; 122A.16; 122A.18, as amended; 122A.21, as amended; 122A.245, as
amended; 122A.31, subdivision 3; 122A.4144; 122A.416; 122A.42; 122A.63,
subdivision 1; 122A.72, subdivision 5; 123A.24, subdivision 2; 123B.045, by
adding a subdivision; 123B.52, subdivision 1; 123B.53, subdivision 5; 123B.571,
subdivision 2; 123B.60, subdivision 1; 123B.71, subdivision 8; 123B.79,
subdivisions 5, 8, 9; 124D.03, subdivision 5a; 124D.111, by adding a subdivision;
124D.1158, subdivisions 3, 4; 124D.135, subdivision 6, by adding subdivisions;
124D.15, subdivisions 3a, 15; 124D.52, subdivisions 1, 2; 124D.55; 124D.59, by
adding a subdivision; 124D.68, subdivision 2; 124D.861, as amended; 125A.091,
subdivision 11; 125A.0942, subdivision 4; 125A.56, subdivision 1; 126C.05,
subdivision 3; 126C.10, subdivisions 2d, 24; 126C.40, subdivision 5; 126C.63,
subdivision 7; 127A.095; 127A.353, subdivision 4; 127A.45, subdivision 6a;
127A.51; 129C.10, subdivision 1; 136A.101, subdivisions 5a, 10; 144.05, by
adding a subdivision; 144A.073, subdivisions 13, 14, by adding a subdivision;
144A.611, subdivisions 1, 2, by adding a subdivision; 144A.75, subdivisions 5,
6, 8, by adding a subdivision; 145.4716, subdivision 2, by adding a subdivision;
149A.50, subdivision 2; 154.001, subdivision 2; 154.002; 154.01; 154.02;
154.04; 154.05; 154.065, subdivisions 2, 4; 154.07; 154.08; 154.09; 154.10,
subdivision 2; 154.11, subdivision 1; 154.14; 154.15; 154.161, subdivision 7;
154.162; 154.19; 154.21; 154.24; 154.25; 161.368; 171.07, subdivisions 6, 7,
15, by adding a subdivision; 197.455, subdivision 1; 214.075, subdivision 3;
216B.16, subdivision 12; 216B.1691, subdivision 10; 216B.241, subdivision
1c; 216B.243, subdivision 8; 216C.20, subdivision 3; 216E.03, subdivision 5;
216H.01, by adding a subdivision; 216H.03, subdivision 1; 237.012; 243.166,
subdivision 1b; 245.92; 245.94; 245.95, subdivision 1; 245.97, subdivision 5;
245.99, subdivision 2; 245A.11, subdivision 2a, as amended; 246.50, subdivision
7; 246.54, as amended; 246B.01, subdivision 1b; 246B.035; 254B.01, subdivision
4a; 254B.03, subdivision 4; 254B.04, subdivision 2a; 254B.06, subdivision 2, by
adding a subdivision; 256.01, by adding a subdivision; 256B.059, subdivisions 1,
2, 3, by adding a subdivision; 256B.06, subdivision 4; 256B.0622, by adding a
subdivision; 256B.0625, subdivisions 30, 34, by adding a subdivision; 256B.15,
subdivisions 1, 1a, 2; 256D.051, subdivision 6b; 256L.01, subdivision 1a;
256L.04, subdivisions 1a, 2; 256L.07, subdivision 1; 256L.11, subdivision
7; 256N.26, subdivision 3; 260C.451, by adding a subdivision; 268.035,
subdivisions 12, 20, 23a, 29, by adding subdivisions; 268.051, subdivision 5;
268.085, subdivisions 4, 5; 268.0865, subdivisions 3, 4; 268.095, subdivisions 1,
2, 5; 268.101, subdivision 2; 268.18; 268.182, subdivision 2; 290.01, subdivision
19b; 297A.62, subdivision 3; 299A.41, subdivisions 3, 4; 326B.439; 326B.49,
subdivision 1; 327.14, subdivision 8; 327C.03, subdivision 6; 327C.095,
subdivisions 12, 13; 373.48, subdivision 3; 462A.204, subdivisions 1, 3; 484.90,
subdivision 6; 518.175, subdivision 5; 518A.34; 518A.35, subdivision 1;
518A.36; 609.3241; 626.556, subdivision 3e; 626.558, subdivisions 1, 2, by
adding a subdivision; Minnesota Statutes 2015 Supplement, sections 16A.152,
subdivision 2; 16A.724, subdivision 2; 16C.073, subdivision 2; 16C.16,
subdivision 6a; 41A.14; 41A.15, subdivision 10, by adding subdivisions;
41A.16, subdivision 1; 41A.17, subdivisions 1, 2; 41A.18, subdivision 1; 84.027,
subdivision 13a; 84D.11, subdivision 1; 84D.13, subdivision 5; 116D.04,
subdivision 2a; 116J.394; 120A.41; 120B.021, subdivision 4; 120B.125;
120B.30, subdivision 1; 120B.301; 120B.31, subdivision 4; 122A.23; 122A.40,
subdivision 8; 122A.41, subdivision 5; 122A.414, subdivisions 1, 2, 2b, 3;
122A.415, subdivision 4; 122A.60, subdivision 4; 123B.53, subdivision 1;
123B.595, subdivisions 1, 4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.231,
subdivision 2; 124D.59, subdivision 2; 124D.73, subdivision 4; 124E.01;
124E.02; 124E.03; 124E.05; 124E.06; 124E.07; 124E.08; 124E.10; 124E.12;
124E.13; 124E.15; 124E.16; 124E.17; 124E.22; 124E.24; 124E.25; 124E.26;
125A.08; 125A.083; 125A.0942, subdivision 3; 125A.11, subdivision 1;
125A.21, subdivision 3; 125A.63, subdivision 4; 125A.76, subdivision 2c;
125A.79, subdivision 1; 126C.05, subdivision 1; 126C.10, subdivision 13a;
126C.48, subdivision 8; 127A.05, subdivision 6; 127A.47, subdivision 7;
136A.121, subdivision 7a; 136A.125, subdivisions 2, 4; 136A.1791, subdivisions
4, 5, 6; 136A.246, by adding subdivisions; 136A.87; 136F.302, subdivision
1; 144.4961, subdivisions 3, 4, 5, 6, 8, by adding subdivisions; 144A.75,
subdivision 13; 149A.92, subdivision 1; 154.003; 154.11, subdivision 3; 154.161,
subdivision 4; 197.46; 245.735, subdivisions 3, 4; 254B.05, subdivision 5;
256B.059, subdivision 5; 256B.0625, subdivision 17a; 256B.431, subdivision
36; 256B.76, subdivisions 2, 4; 256B.766; 256L.01, subdivision 5; 256L.04,
subdivision 7b; 256L.05, subdivision 3a; 256L.06, subdivision 3; 256L.15,
subdivision 1; 256P.06, subdivision 3; 260C.203; 260C.212, subdivisions 1,
14; 260C.215, subdivision 4; 260C.451, subdivision 6; 260C.521, subdivision
1; 268.07, subdivision 3b; 268.085, subdivision 2; 326B.13, subdivision 8;
326B.988; 518A.26, subdivision 14; 518A.39, subdivision 2; 583.215; 609.324,
subdivision 1; 626.556, subdivision 2; Laws 2001, chapter 130, section 3; Laws
2011, First Special Session chapter 11, article 4, section 8; Laws 2014, chapter
198, article 2, section 2; Laws 2014, chapter 211, section 13; Laws 2014, chapter
312, article 2, sections 14; 15; article 12, section 6, subdivision 5, as amended;
Laws 2015, chapter 65, article 1, section 18; Laws 2015, chapter 69, article 1,
section 3, subdivision 28; article 3, sections 20, subdivision 15; 24, subdivision
1; Laws 2015, chapter 71, article 8, section 24; article 14, section 4, subdivision
3; Laws 2015, First Special Session chapter 1, article 1, sections 2, subdivision 3;
4; 6; article 6, section 16; Laws 2015, First Special Session chapter 3, article 1,
sections 24; 27, subdivisions 2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions
2, 3, 4, 5, 6, 7, 11, 12, 15, 19, 21, 24, 26; article 4, sections 4; 9, subdivision 2;
article 5, section 30, subdivisions 2, 3, 5; article 6, section 13, subdivisions 2, 3, 6,
7; article 7, section 7, subdivisions 2, 3, 4; article 9, section 8, subdivisions 5, 6,
7, 9; article 10, section 3, subdivisions 2, 6, 7; article 11, section 3, subdivisions
2, 3; article 12, section 4, subdivision 2; Laws 2015, First Special Session chapter
4, article 1, sections 2, subdivisions 2, 4; 5; article 3, section 3, subdivisions 2,
5; article 4, section 131; proposing coding for new law in Minnesota Statutes,
chapters 17; 41A; 62D; 84D; 86B; 116J; 116L; 119A; 120B; 121A; 123B; 124D;
136A; 136F; 144; 145; 216B; 240A; 254B; 260C; 260D; 290; 325E; 462A; 518A;
609; proposing coding for new law as Minnesota Statutes, chapters 147F; 153B;
repealing Minnesota Statutes 2014, sections 116P.13; 122A.413, subdivision
3; 122A.43, subdivision 6; 123B.60, subdivision 2; 123B.79, subdivisions 2,
6; 149A.92, subdivision 11; 154.03; 154.06; 154.11, subdivision 2; 154.12;
216B.1612; 216C.39; 256B.059, subdivision 1a; 256L.04, subdivisions 2a, 8;
256L.22; 256L.24; 256L.26; 256L.28; Minnesota Statutes 2015 Supplement,
section 122A.413, subdivisions 1, 2; Special Laws 1891, chapter 57, chapter XII,
section 5; Laws 2015, First Special Session chapter 4, article 2, section 81.

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

ARTICLE 1

HIGHER EDUCATION

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION

Subdivision 1.

Total Appropriations

$
-0-
$
3,210,000

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

Subd. 2.

Equity in Postsecondary Education
Grants

-0-
500,000

For equity in postsecondary attainment
grants under section 31. This appropriation
is available until June 30, 2020. Of this
appropriation, $25,000 may be used for
administration expenses to administer
the grant program. This is a onetime
appropriation.

Subd. 3.

State Grant

-0-
2,000,000

For the state grant program under Minnesota
Statutes, section 136A.121. This is a onetime
appropriation.

Subd. 4.

Addiction Medicine Graduate
Fellowship Program

-0-
210,000

For establishing a grant program used to
support up to four physicians who are enrolled
each year in an addiction medicine fellowship
program. A grant recipient must be enrolled
in a program that trains fellows in diagnostic
interviewing, motivational interviewing,
addiction counseling, recognition and care
of common acute withdrawal syndromes
and complications, pharmacotherapies
of addictive disorders, epidemiology and
pathophysiology of addiction, addictive
disorders in special populations, secondary
interventions, use of screening and diagnostic
instruments, inpatient care, and working
within a multidisciplinary team, and prepares
doctors to practice addiction medicine in
rural and underserved areas of the state. The
base for this program is $210,000 in fiscal
year 2018 and $0 in fiscal year 2019.

Subd. 5.

Student and Employer Connection
Information System

-0-
500,000

For a grant to the Saint Paul Foundation
for the creation of a web-based job and
intern-seeking software tool that blind
matches the needs of employers located
in Minnesota with the individual profiles
of high school seniors and postsecondary
students attending Minnesota high schools
and postsecondary institutions. No more
than three percent of this appropriation may
be used for administrative expenses of the
foundation. The foundation must report by
January 15, 2017, on activities under this
subdivision to the chairs and ranking minority
members of the legislative committees with
jurisdiction over higher education finance.
The base for this appropriation is $405,000
in fiscal year 2018.

Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES

Subdivision 1.

Total Appropriations

$
-0-
$
790,000

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

Subd. 2.

Operating Support and Protecting
Affordability

-0-
570,000

Subd. 3.

MnSCU Open Textbooks

-0-
100,000

(a) For programs on system campuses
that promote adoption of open textbooks.
Programs must focus on the review, creation,
and promotion of new or existing open
textbooks and on saving money for students
while meeting the academic needs of faculty.
This is a onetime appropriation.

(b) By January 15, 2017, the board shall
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over higher education regarding
the progress of the pilot programs. The
report shall include a summary of each pilot
program and the total savings expected for
students as a result of the programs.

Subd. 4.

MnSCU Open Textbook Library

-0-
100,000

To expand and promote the open textbook
library to faculty across the state. This is a
onetime appropriation.

Subd. 5.

Cook County Higher Education Board

-0-
20,000

For transfer to the Cook County Higher
Education Board to provide educational
programming and academic support services
to remote regions in northeastern Minnesota.
This appropriation is in addition to other
funds previously appropriated for transfer to
the board.

Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA

Subdivision 1.

Total Appropriation

$
-0-
$
900,000

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

Subd. 2.

Health Training Restoration

800,000

This appropriation must be used to support
all of the following:

(1) faculty physicians who teach at eight
residency program sites, including medical
resident and student training programs in the
Department of Family Medicine;

(2) the Mobile Dental Clinic; and

(3) expansion of geriatric education and
family programs.

Subd. 3.

Rochester Campus, Collegiate
Recovery Program

-0-
100,000

(a) To design and implement a collegiate
recovery program at its Rochester campus.
This is a onetime appropriation and is
available until June 30, 2019.

(b) The purpose of the collegiate recovery
program is to provide structured support
for students in recovery from alcohol,
chemical, or other addictive behaviors.
Program activities may include, but are not
limited to, specialized professional support
through academic, career, and financial
advising; establishment of on-campus
or residential peer support communities;
and opportunities for personal growth
through leadership development and other
community engagement activities.

(c) No later than January 15, 2020, the
Board of Regents must submit a report to
the chairs and ranking minority members of
the legislative committees with jurisdiction
over higher education finance and policy on
campus recovery program outcomes. Based
on available data, the report must describe,
in summary form, the number of students
participating in the program and the success
rate of participants, including retention and
graduation rates, and long-term recovery and
relapse rates.

Sec. 5. OFFICE OF OMBUDSMAN
FOR MENTAL HEALTH AND
DEVELOPMENTAL DISABILITIES

$
-0-
$
100,000

For the duties of the office related to clinical
drug trials at the Department of Psychiatry at
the University of Minnesota.

Sec. 6. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE
COSTS.

The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision
18, paragraph (c), for fiscal year 2017 for information technology and administrative costs
is available on the effective date of this section and until June 30, 2017.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

[136A.0412] ACCEPTANCE OF PRIVATE FUNDS; APPROPRIATION.

The commissioner may accept donations, grants, bequests, and other gifts of money
to carry out the purposes of section 136A.01. Donations, nonfederal grants, bequests, or
other gifts of money accepted by the commissioner must be deposited in an account in
the special revenue fund and is appropriated to the commissioner for the purpose for
which it was given.

Sec. 8.

Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:


Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means
the amount of a family's contribution to a student's cost of attendance, as determined by a
federal need analysis. For dependent students, the assigned family responsibility is 96
94
percent of the parental contribution. For independent students with dependents other
than a spouse, the assigned family responsibility is 86 percent of the student contribution.
For independent students without dependents other than a spouse, the assigned family
responsibility is 50 percent of the student contribution.

Sec. 9.

Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:


Subd. 10.

Satisfactory academic progress.

"Satisfactory academic progress"
means satisfactory academic progress as defined under Code of Federal Regulations, title
34, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual
disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled
in an approved comprehensive transition and postsecondary program under that section
is subject to the institution's published satisfactory academic process standards for that
program as approved by the Office of Higher Education
.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a,
is amended to read:


Subd. 7a.

Surplus appropriation.

If the amount appropriated is determined by the
office to be more than sufficient to fund projected grant demand in the second year of the
biennium, the office may increase the living and miscellaneous expense allowance or the
tuition and fee maximums in the second year of the biennium by up to an amount that
retains sufficient appropriations to fund the projected grant demand. The adjustment may
be made one or more times. In making the determination that there are more than sufficient
funds, the office shall balance the need for sufficient resources to meet the projected
demand for grants with the goal of fully allocating the appropriation for state grants. An
increase in the living and miscellaneous expense allowance under this subdivision does
not carry forward into a subsequent biennium.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2,
is amended to read:


Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if
the applicant:

(1) is a resident of the state of Minnesota or the applicant's spouse is a resident
of the state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is
disabled as defined in section 125A.02, and who is receiving or will receive care on a
regular basis from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a
recipient of assistance from the Minnesota family investment program;

(4) either has not earned a baccalaureate degree and has been enrolled full time less
than eight semesters or the equivalent, or has earned a baccalaureate degree and has been
enrolled full time less than eight semesters or the equivalent in a graduate or professional
degree program
;

(5) is pursuing a nonsectarian program or course of study that applies to an
undergraduate, graduate, or professional degree, diploma, or certificate;

(6) is enrolled in at least half time six credits in an undergraduate program or one
credit in a graduate or professional program
in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student who withdraws from enrollment for active military service after
December 31, 2002, because the student was ordered to active military service as defined
in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a
medical professional, that substantially limits the student's ability to complete the term
is entitled to an additional semester or the equivalent of grant eligibility and will be
considered to be in continuing enrollment status upon return.

Sec. 12.

Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4,
is amended to read:


Subd. 4.

Amount and length of grants.

(a) The amount of a child care grant
must be based on:

(1) the income of the applicant and the applicant's spouse;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

(b) The maximum award to the applicant shall be $2,800 for each eligible child per
academic year, except that the campus financial aid officer may apply to the office for
approval to increase grants by up to ten percent to compensate for higher market charges
for infant care in a community. The office shall develop policies to determine community
market costs and review institutional requests for compensatory grant increases to ensure
need and equal treatment. The office shall prepare a chart to show the amount of a grant
that will be awarded per child based on the factors in this subdivision. The chart shall
include a range of income and family size.

(c) Applicants with family incomes at or below a percentage of the federal poverty
level, as determined by the commissioner, will qualify for the maximum award. The
commissioner shall attempt to set the percentage at a level estimated to fully expend the
available appropriation for child care grants. Applicants with family incomes exceeding
that threshold will receive the maximum award minus ten percent of their income
exceeding that threshold. If the result is less than zero, the grant is zero.

(d) The academic year award amount must be disbursed by academic term using the
following formula:

(1) the academic year amount described in paragraph (b);

(2) divided by the number of terms in the academic year;

(3) divided by 15 for undergraduate students and six for graduate and professional
students
; and

(4) multiplied by the number of credits for which the student is enrolled that
academic term, up to 15 credits for undergraduate students and six for graduate and
professional students
.

(e) Payments shall be made each academic term to the student or to the child care
provider, as determined by the institution. Institutions may make payments more than
once within the academic term.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4,
is amended to read:


Subd. 4.

Application for loan forgiveness.

Each applicant for loan forgiveness,
according to rules adopted by the commissioner, shall:

(1) apply for teacher shortage loan forgiveness and promptly submit any additional
information required by the commissioner; and

(2) annually reapply for up to five consecutive school years and submit information
the commissioner requires to determine the applicant's continued eligibility for loan
forgiveness; and

(3) (2) submit to the commissioner a completed affidavit, prescribed by the
commissioner, affirming the teacher is teaching in: (i) a licensure field and in identified by
the commissioner as experiencing a teacher shortage; or (ii)
an economic development
region identified by the commissioner as experiencing a teacher shortage.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5,
is amended to read:


Subd. 5.

Amount of loan forgiveness.

(a) To the extent funding is available, the
annual amount of teacher shortage loan forgiveness for an approved applicant shall not
exceed $1,000 or the cumulative balance of the applicant's qualified educational loans,
including principal and interest, whichever amount is less.

(b) Recipients must secure their own qualified educational loans. Teachers who
graduate from an approved teacher preparation program or teachers who add a licensure
field, consistent with the teacher shortage requirements of this section, are eligible to
apply for the loan forgiveness program.

(c) No teacher shall receive more than five annual awards.

Sec. 15.

Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6,
is amended to read:


Subd. 6.

Disbursement.

(a) The commissioner must make annual disbursements
directly to the participant of the amount for which a participant is eligible, for each year
that a participant is eligible.

(b) Within 60 days of receipt of a the disbursement date, the participant must provide
the commissioner with verification that the full amount of loan repayment disbursement
has been applied toward the designated loans. A participant that previously received
funds under this section but has not provided the commissioner with such verification
is not eligible to receive additional funds.

Sec. 16.

[136A.1792] PROMOTION OF FEDERAL PUBLIC SERVICE LOAN
FORGIVENESS PROGRAMS.

Subdivision 1.

Definitions.

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

(b) "Employer" means an organization, agency, or entity that is a public service
organization under Code of Federal Regulations, title 34, part 685, section 219, provided
that the following are not employers:

(1) a federal or tribal government organization, agency, or entity; and

(2) a tribal college or university.

(c) "Employment certification form" means the form used by the United States
Department of Education to certify an individual's employment at a public service
organization for the purposes of the federal public service loan forgiveness program.

(d) "Federal loan forgiveness program" means a loan forgiveness program offered
under Code of Federal Regulations, title 34, part 685.

(e) "Public service loan forgiveness program" means the loan forgiveness program
under Code of Federal Regulations, title 34, part 685, section 219.

(f) "Public service organization" means a public service organization under Code of
Federal Regulations, title 34, part 685, section 219.

Subd. 2.

Promotion of federal public service loan forgiveness programs.

(a) The
commissioner must develop and distribute informational materials designed to increase
awareness of federal public service loan forgiveness programs among Minnesota residents
who are eligible for those programs. At a minimum, the commissioner must develop and
distribute informational materials that public service organizations may use to promote
awareness of the federal public service loan forgiveness program, including:

(1) a one-page letter addressed to individuals who may be eligible for the public
service loan forgiveness program that briefly summarizes the program, provides
information on what an eligible individual must do in order to participate, and recommends
that they contact their student loan servicer or servicers for additional information;

(2) a detailed fact sheet describing the public service loan forgiveness program; and

(3) a document containing answers to frequently asked questions about the public
service loan forgiveness program.

(b) In place of developing and publishing an informational document required under
paragraph (a), the commissioner may distribute a document published by a federal agency
that meets the requirements of paragraph (a).

Subd. 3.

Publication of informational materials.

The commissioner must make
the informational materials required under subdivision 2 available on the office's Web
site and must verify each biennium that the informational materials contain current
information. The commissioner must update and correct any informational materials that
the commissioner finds inaccurate or outdated.

Subd. 4.

Employer information.

(a) An employer must provide an employee with
information about the employee's potential eligibility for the federal public service loan
forgiveness program. An employer must annually provide to each employee in written or
electronic form the one-page letter, fact sheet, and frequently asked questions required
under subdivision 2. In addition, an employer must provide a newly hired employee with
that information within two weeks of the employee's first day of employment.

(b) At an employee's request, an employer must provide the employee with a copy
of the employment certification form.

EFFECTIVE DATE.

Subdivision 4 is effective January 1, 2017.

Sec. 17.

[136A.1793] PROMOTION OF TEACHER LOAN FORGIVENESS
PROGRAMS.

The commissioner shall provide information to public and private teacher education
programs concerning public and private student loan programs that provide for full or
partial repayment forgiveness. Teacher education programs must provide the information
furnished by the commissioner to their teacher education students.

Sec. 18.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
adding a subdivision to read:


Subd. 10.

Dual training account.

A dual training account is created in the special
revenue fund in the state treasury. The commissioner shall deposit into the account
appropriations made for the purposes of this section. Money in the account is appropriated
to the commissioner for the purposes for which it was appropriated.

Sec. 19.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
adding a subdivision to read:


Subd. 11.

Administration expenses.

The commissioner may expend up to five
percent of the appropriation made for the purposes of this section for administration
of this section.

Sec. 20.

Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:


136A.87 PLANNING INFORMATION FOR POSTSECONDARY
EDUCATION.

(a) The office shall make available to all residents beginning in 7th grade through
adulthood information about planning and preparing for postsecondary opportunities.
Information must be provided to all 7th grade students and their parents annually
by September 30 about planning for their postsecondary education. The office may
also provide information to high school students and their parents, to adults, and to
out-of-school youth.

(b) The office shall gather and share information with students and parents about
the dual credit acceptance policies of each Minnesota public and private college and
university. The office shall gather and share information related to the acceptance policies
for concurrent enrollment courses, postsecondary enrollment options courses, advanced
placement courses, and international baccalaureate courses. This information must be
shared on the office's Web site and included in the information under paragraph (a).

(c) The information provided under paragraph (a) may include the following:

(1) the need to start planning early;

(2) the availability of assistance in educational planning from educational institutions
and other organizations;

(3) suggestions for studying effectively during high school;

(4) high school courses necessary to be adequately prepared for postsecondary
education;

(5) encouragement to involve parents actively in planning for all phases of education;

(6) information about postsecondary education and training opportunities existing
in the state, their respective missions and expectations for students, their preparation
requirements, admission requirements, and student placement;

(7) ways to evaluate and select postsecondary institutions;

(8) the process of transferring credits among Minnesota postsecondary institutions
and systems;

(9) the costs of postsecondary education and the availability of financial assistance
in meeting these costs, including specific information about the Minnesota Promise;

(10) the interrelationship of assistance from student financial aid, public assistance,
and job training programs; and

(11) financial planning for postsecondary education.

EFFECTIVE DATE.

This section is effective for the 2016-2017 school year and
later.

Sec. 21.

Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1,
is amended to read:


Subdivision 1.

ACT or SAT college ready score.

(a) A state college or university
may must not require an individual to take a remedial, noncredit course in a subject area if
the individual has received a college ready ACT or SAT score in that subject area.

(b) When deciding if an individual is admitted to or if an individual may enroll in a
state college or university, the state college or university must consider the individual's
scores on the high school Minnesota Comprehensive Assessments, in addition to other
factors determined relevant by the college or university.

Sec. 22.

Minnesota Statutes 2014, section 245.92, is amended to read:


245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS;
FUNCTION.

The ombudsman for persons receiving services or treatment for mental illness,
developmental disabilities, chemical dependency, or emotional disturbance shall promote
the highest attainable standards of treatment, competence, efficiency, and justice. The
ombudsman may gather information and data about decisions, acts, and other matters of an
agency, facility, or program, and shall monitor the treatment of individuals participating in
a University of Minnesota Department of Psychiatry clinical drug trial
. The ombudsman
is appointed by the governor, serves in the unclassified service, and may be removed only
for just cause. The ombudsman must be selected without regard to political affiliation and
must be a person who has knowledge and experience concerning the treatment, needs,
and rights of clients, and who is highly competent and qualified. No person may serve as
ombudsman while holding another public office.

Sec. 23.

Minnesota Statutes 2014, section 245.94, is amended to read:


245.94 POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS;
RECOMMENDATIONS.

Subdivision 1.

Powers.

(a) The ombudsman may prescribe the methods by which
complaints to the office are to be made, reviewed, and acted upon. The ombudsman may
not levy a complaint fee.

(b) The ombudsman may mediate or advocate on behalf of a client.

(c) The ombudsman may investigate the quality of services provided to clients and
determine the extent to which quality assurance mechanisms within state and county
government work to promote the health, safety, and welfare of clients, other than clients
in acute care facilities who are receiving services not paid for by public funds. The
ombudsman is a health oversight agency as defined in Code of Federal Regulations,
title 45, section 164.501.

(d) At the request of a client, or upon receiving a complaint or other information
affording reasonable grounds to believe that the rights of a client who is not capable
of requesting assistance have been adversely affected, the ombudsman may gather
information and data about and analyze, on behalf of the client, the actions of an agency,
facility, or program.

(e) The ombudsman may gather, on behalf of a client, records of an agency, facility,
or program, or records related to clinical drug trials from the University of Minnesota
Department of Psychiatry,
if the records relate to a matter that is within the scope of the
ombudsman's authority. If the records are private and the client is capable of providing
consent, the ombudsman shall first obtain the client's consent. The ombudsman is
not required to obtain consent for access to private data on clients with developmental
disabilities. The ombudsman is not required to obtain consent for access to private data
on decedents who were receiving services for mental illness, developmental disabilities,
or emotional disturbance. All data collected, created, received, or maintained by the
ombudsman are governed by chapter 13 and other applicable law.

(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person
to appear, give testimony, or produce documents or other evidence that the ombudsman
considers relevant to a matter under inquiry. The ombudsman may petition the appropriate
court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part
of an investigation possesses the same privileges that a witness possesses in the courts or
under the law of this state. Data obtained from a person under this paragraph are private
data as defined in section 13.02, subdivision 12.

(g) The ombudsman may, at reasonable times in the course of conducting a review,
enter and view premises within the control of an agency, facility, or program.

(h) The ombudsman may attend Department of Human Services Review Board
and Special Review Board proceedings; proceedings regarding the transfer of patients
or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions
operated by the Department of Human Services; and, subject to the consent of the affected
client, other proceedings affecting the rights of clients. The ombudsman is not required to
obtain consent to attend meetings or proceedings and have access to private data on clients
with developmental disabilities.

(i) The ombudsman shall gather data of agencies, facilities, or programs classified
as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding
services provided to clients with developmental disabilities.

(j) To avoid duplication and preserve evidence, the ombudsman shall inform
relevant licensing or regulatory officials before undertaking a review of an action of
the facility or program.

(k) The ombudsman shall monitor the treatment of individuals participating in
a University of Minnesota Department of Psychiatry clinical drug trial and ensure that
all protections for human subjects required by federal law and the Institutional Review
Board are provided.

(l) Sections 245.91 to 245.97 are in addition to other provisions of law under which
any other remedy or right is provided.

Subd. 2.

Matters appropriate for review.

(a) In selecting matters for review by the
office, the ombudsman shall give particular attention to unusual deaths or injuries of a
client or reports of emergency use of manual restraint as identified in section 245D.061,
served by an agency, facility, or program, or actions of an agency, facility, or program that:

(1) may be contrary to law or rule;

(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of
an agency, facility, or program;

(3) may be mistaken in law or arbitrary in the ascertainment of facts;

(4) may be unclear or inadequately explained, when reasons should have been
revealed;

(5) may result in abuse or neglect of a person receiving treatment;

(6) may disregard the rights of a client or other individual served by an agency
or facility;

(7) may impede or promote independence, community integration, and productivity
for clients; or

(8) may impede or improve the monitoring or evaluation of services provided to
clients.

(b) The ombudsman shall, in selecting matters for review and in the course of the
review, avoid duplicating other investigations or regulatory efforts.

(c) The ombudsman shall give particular attention to the death or unusual injury of
any individual who is participating in a University of Minnesota Department of Psychiatry
clinical drug trial.

Subd. 2a.

Mandatory reporting.

Within 24 hours after a client suffers death or
serious injury, the agency, facility, or program director, or lead investigator of a clinical
drug trial at the University of Minnesota Department of Psychiatry
shall notify the
ombudsman of the death or serious injury. The emergency use of manual restraint must
be reported to the ombudsman as required under section 245D.061, subdivision 8. The
ombudsman is authorized to receive identifying information about a deceased client
according to Code of Federal Regulations, title 42, section 2.15, paragraph (b).

Subd. 3.

Complaints.

(a) The ombudsman may receive a complaint from any
source concerning an action of an agency, facility, or program. After completing a review,
the ombudsman shall inform the complainant and the agency, facility, or program.
No client may be punished nor may the general condition of the client's treatment be
unfavorably altered as a result of an investigation, a complaint by the client, or by another
person on the client's behalf. An agency, facility, or program shall not retaliate or take
adverse action against a client or other person, who in good faith makes a complaint or
assists in an investigation. The ombudsman may classify as confidential, the identity of a
complainant, upon request of the complainant.

(b) The ombudsman shall receive a complaint from any source concerning an
action or inaction of the University of Minnesota Department of Psychiatry related
to an individual who is enrolled in a department-approved clinical drug trial. No
individual participating in the trial may be punished, nor may the general condition of
the individual's treatment be unfavorably altered, as a result of an investigation or a
complaint by the individual or the individual's advocate. The university shall not retaliate
or take adverse action against any person who in good faith makes a complaint or assists
in an investigation. The ombudsman may classify the identity of the complainant as
confidential, upon request of the complainant.

Subd. 4.

Recommendations to agency.

(a) If, after reviewing a complaint or
conducting an investigation and considering the response of an agency, facility, or
program and any other pertinent material, the ombudsman determines that the complaint
has merit or the investigation reveals a problem, the ombudsman may recommend that
the agency, facility, or program:

(1) consider the matter further;

(2) modify or cancel its actions;

(3) alter a rule, order, or internal policy;

(4) explain more fully the action in question; or

(5) take other action.

(b) At the ombudsman's request, the agency, facility, or program shall, within a
reasonable time, inform the ombudsman about the action taken on the recommendation
or the reasons for not complying with it.

Subd. 5.

Recommendations to University of Minnesota.

If, after reviewing a
complaint or conducting an investigation and considering the response of the clinical drug
trial's primary investigator or the Department of Psychiatry, the ombudsman determines
that the complaint has merit or the investigation reveals noncompliance with the federal
protection of human subjects requirements or the requirements of the Institutional Review
Board, the ombudsman shall recommend that the Board of Regents of the University of
Minnesota take corrective action to remedy the violations.

Sec. 24.

Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:


Subdivision 1.

Specific reports.

The ombudsman may send conclusions and
suggestions concerning any matter reviewed to the governor. Before making public a
conclusion or recommendation that expressly or implicitly criticizes an agency, facility,
program, or any person, the ombudsman shall consult with the governor and the agency,
facility, program, or person concerning the conclusion or recommendation. When sending
a conclusion or recommendation to the governor that is adverse to an agency, facility,
program, or any person, the ombudsman shall include any statement of reasonable length
made by that agency, facility, program, or person in defense or mitigation of the office's
conclusion or recommendation. For purposes of this subdivision, "agency, facility,
program, or any person" includes the University of Minnesota Department of Psychiatry
and its employees working in clinical drug trials.

Sec. 25.

Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:


Subd. 5.

Medical Review Subcommittee.

At least five members of the committee,
including at least three physicians, one of whom is a psychiatrist, must be designated by
the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies,
and compensation are governed by subdivision 2. The governor shall designate one of
the members to serve as chair of the subcommittee. The Medical Review Subcommittee
may have access to private and confidential data collected or created by the ombudsman
that are necessary to fulfill the duties of the Medical Review Subcommittee under this
section and may:

(1) make a preliminary determination of whether the death of a client that has been
brought to its attention is unusual or reasonably appears to have resulted from causes other
than natural causes and warrants investigation;

(2) review the causes of and circumstances surrounding the death;

(3) request the county coroner or medical examiner to conduct an autopsy;

(4) assist an agency in its investigations of unusual deaths and deaths from causes
other than natural causes; and

(5) make a preliminary determination of whether the death of a participant in a
clinical drug trial conducted by the University of Minnesota Department of Psychiatry
appears to have resulted from causes other than natural causes and warrants investigation
and reporting as required by federal laws on the protection of human subjects; and

(6) submit a report regarding the death of a client to the committee, the ombudsman,
the client's next-of-kin, and the facility where the death occurred and, where appropriate,
make recommendations to prevent recurrence of similar deaths to the head of each affected
agency or facility, or the Board of Regents of the University of Minnesota.

Sec. 26.

Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:


Subd. 15.

Reporting.

(a) A college must report to the commissioner the following
information:

(1) the number of grantees and their race, gender, and ethnicity;

(2) grantee persistence and completion;

(3) employment outcomes; and

(4) other information requested by the commissioner.

(b) The commissioner shall report annually by January 15, 2017, and January 15,
2018,
to the chairs and ranking minority members of the legislative committees with
jurisdiction over higher education finance by college and in aggregate on the information
submitted to the commissioner under paragraph (a). The commissioner may include in the
report recommendations for changes in the grant program.

Sec. 27.

Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to read:


Subdivision 1.

Pilot program created.

The commissioner of the Office of Higher
Education shall make a grant to a nonprofit qualified debt counseling organization to
provide individual student loan debt repayment counseling to borrowers who are Minnesota
residents concerning loans obtained to attend a Minnesota postsecondary institution. The
counseling shall be provided to borrowers who are 30 to 60 days delinquent when they
are referred to or otherwise identified by the organization as candidates for counseling.
The number of individuals receiving counseling may be limited to those capable of being
served with available appropriations for that purpose. A goal of the counseling program is
to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.

The purpose of the counseling is to assist borrowers to:

(1) understand their loan and repayment options;

(2) manage loan repayment; and

(3) develop a workable budget based on the borrower's full financial situation
regarding income, expenses, and other debt.

EFFECTIVE DATE.

This section is effective the day following final enactment
and is retroactive to July 1, 2015.

Sec. 28. STATE GRANT TUITION CAPS.

For the purposes of the state grant program under Minnesota Statutes, section
136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736
for students in two-year programs and the tuition maximum is $14,186 for students in
four-year programs.

Sec. 29. MNSCU PROGRAM FOR STUDENTS WITH INTELLECTUAL AND
DEVELOPMENTAL DISABILITIES; PLAN REQUIRED.

Subdivision 1.

Development of plan required.

The Board of Trustees of the
Minnesota State Colleges and Universities must develop a plan for offering an academic
program for students with intellectual and developmental disabilities, consistent with the
principles established in subdivisions 2 to 4.

Subd. 2.

Program locations.

The plan developed must assume the program will be
offered at up to four college or university campuses chosen based on (1) their ability to
offer a robust program using existing facilities and resources and (2) a goal to provide the
program in diverse geographic regions of the state.

Subd. 3.

Enrollment and admission.

The plan developed must assume an
enrollment goal for each campus's program of at least ten incoming students per academic
year. The plan may allow for students to be admitted based on an application process
that includes an in-person interview; an independent assessment of an applicant's
interest, motivation, and likelihood of success in the program; and any other eligibility
requirements established by the board. Upon successful completion, a student must be
awarded a certificate, diploma, or other appropriate academic credential.

Subd. 4.

Curriculum and activities.

(a) The plan developed must assume a
program that provides an inclusive, two-year full-time residential college experience
for students with intellectual and developmental disabilities. The required curriculum
must include core courses that develop life skills, financial literacy, and the ability to
live independently; rigorous academic work in a student's chosen field of study; and an
internship, apprenticeship, or other skills-based experience to prepare for meaningful
employment upon completion of the program.

(b) In addition to academic requirements, the plan developed must allow
participating students the opportunity to engage fully in campus life. Program activities
must include but are not limited to (1) the establishment of on-campus mentoring and
peer support communities and (2) opportunities for personal growth through leadership
development and other community engagement activities.

(c) A participating campus may tailor its program curriculum and activities to
highlight academic programs, student and community life experiences, and employment
opportunities unique to that campus or the region of the state where the campus is located.

Subd. 5.

Report to legislature.

The board must submit a report on the plan required
to be developed by this section to the chairs and ranking minority members of the
committees of the legislature with jurisdiction over higher education finance and policy and
human services finance and policy no later than January 15, 2017. The report must describe
program plans, including strategies for recruitment of applicants, and strategies to address
anticipated program needs that cannot be filled using existing campus or system resources.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 30. UNIVERSITY OF MINNESOTA AND MNSCU BUDGET
ALLOCATION REPORTS.

(a) The Board of Regents of the University of Minnesota shall report by February
1, 2017, to the chairs and ranking minority members of the legislative committees with
primary jurisdiction over higher education finance on the factors it considers when
allocating funds to system campuses. The report must specifically, without limitation,
address the following questions:

(1) what circumstances would lead the university to adopt an alternate budget model
to the Resource Responsibility Center (RRC) model for a system campus;

(2) what were the rationale and factors considered for the initial base budget
allocation to system campuses when the RRC was first established; and

(3) what factors would lead the university to consider adjusting the initial base
allocation model.

(b) The Board of Trustees of the Minnesota State Colleges and Universities shall
report by February 1, 2017, to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over higher education finance on the factors it
considers when allocating state funds to colleges and universities. The report must
specifically, without limitations, address the following areas:

(1) the design and methodology for the allocation of state funds to the colleges
and universities; and

(2) the factors considered in the allocation process.

Sec. 31. EQUITY IN EDUCATION AND JOB CONNECTION GRANT
PROGRAM.

Subdivision 1.

Grants.

(a) The commissioner of the Office of Higher Education
shall award grants to improve postsecondary attendance, completion, and retention and
the obtaining of well-paying jobs for which the postsecondary education provides training
by providing services to historically underrepresented college students. Grants must be
awarded to Minnesota state colleges and universities and private organization programs
that help the state reach the attainment goals under Minnesota Statutes, section 135A.012.
Programs must provide services targeted to make the improvements including, but not
limited to:

(1) academic and nonacademic counseling or advising;

(2) mentoring in education and career opportunities;

(3) structured tutoring;

(4) career awareness and exploration including internships and post graduation
job placements;

(5) orientation to college life;

(6) financial aid counseling;

(7) academic instruction programs in core curricular areas of mathematics and
language arts;

(8) supplemental instruction programs for college courses with high failure and
withdrawal rates; and

(9) co-requisite college course models for delivery of academic support.

(b) The office shall structure the grants for sustainability of programs funded by a
grant.

(c) To the extent there are sufficient qualified applicants, approximately 50 percent
of grant dollars must be awarded to private organization programs.

(d) A grant must not be made to a private organization that is a postsecondary
institution.

Subd. 2.

Application process.

(a) The commissioner shall develop a grant
application process. The commissioner shall attempt to support projects in a manner that
ensures that eligible students throughout the state have access to program services.

(b) The grant application must include, at a minimum, the following information:

(1) a description of the characteristics of the students to be served reflective of the
need for services listed in subdivision 1;

(2) a description of the services to be provided and a timeline for implementation
of the service activities;

(3) a description of how the services provided will foster postsecondary retention
and completion;

(4) a description of how the services will be evaluated to determine whether the
program goals were met;

(5) the history of the applicant in achieving successful improvements using the
services for which a grant is sought;

(6) the assumed cost per student of achieving successful outcomes;

(7) the effect of the grant on assisting students to obtain well-paying jobs;

(8) the proposed grant match;

(9) the organizational commitment to program sustainability; and

(10) other information as identified by the commissioner.

Grant recipients must specify both program and student outcome goals, and performance
measures for each goal.

Subd. 3.

Advisory committee.

The commissioner may establish and convene an
advisory committee to assist the commissioner in reviewing applications and advise the
commissioner on grantees and grant amounts. The members of the committee may include
representatives of postsecondary institutions, organizations providing postsecondary
academic and career services, and others deemed appropriate by the commissioner.

Subd. 4.

Outcome report.

Each grant recipient must annually submit a report to
the Office of Higher Education identifying its program and student goals and activities
implemented. A report must include, but not be limited to, information on:

(1) number of students served;

(2) course taking and grade point average of participating students;

(3) persistence and retention rates of participating students;

(4) postsecondary graduation rates of participating students;

(5) the number of students who required postsecondary academic remediation and
number of remedial courses for each of those students and in the aggregate; and

(6) jobs and wage rates of students after postsecondary graduation.

To the extent possible, the report must breakdown outcomes by Pell grant qualification,
race, and ethnicity.

Subd. 5.

Legislative report.

By January 15 of each year through 2021, the office
shall submit a report to the chairs and ranking minority members of the committees in the
house of representatives and the senate with jurisdiction over higher education finance
regarding the grant recipients and their activities. The report shall include information
about the students served, the organizations providing services, program activities,
program goals and outcomes, and program revenue sources and funding levels.

ARTICLE 2

AGRICULTURE

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figures "2016" and "2017" used in this article mean that the addition
to the appropriations listed under them are available for the fiscal year ending June 30,
2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. DEPARTMENT OF AGRICULTURE

$
-0-
$
4,433,000

$250,000 the second year is for the tractor
rollover protection pilot program under
Minnesota Statutes, section 17.119. This is a
onetime appropriation.

$250,000 the second year is to administer
the industrial hemp pilot program under
Minnesota Statutes, section 18K.09. This is
a onetime appropriation.

$1,000,000 the second year is for grants
to the Board of Regents of the University
of Minnesota to fund the Forever Green
Agriculture Initiative and to protect the
state's natural resources while increasing
the efficiency, profitability, and productivity
of Minnesota farmers by incorporating
perennial and winter annual crops into
existing agricultural practices. This is a
onetime appropriation and is available until
June 30, 2019. The appropriation in Laws
2015, First Special Session chapter 2, article
2, section 3, paragraph (i), is available until
June 30, 2018.

$600,000 the second year is for a grant
to the Board of Regents of the University
of Minnesota to develop, in consultation
with the commissioner of agriculture and
the Board of Animal Health, a software
tool or application through the Veterinary
Diagnostic Laboratory that empowers
veterinarians and producers to understand
the movement of unique pathogen strains in
livestock and poultry production systems,
monitor antibiotic resistance, and implement
effective biosecurity measures that promote
animal health and limit production losses.
The base for fiscal year 2020 is $0.

In addition to the amounts appropriated in
Laws 2015, First Special Session chapter 4,
article 1, section 2, subdivision 4:


(1) $450,000 the second year is appropriated
for transfer to the Board of Regents of the
University of Minnesota for the cultivated
wild rice breeding project at the North
Central Research and Outreach Center to
include a tenure track/research associate
plant breeder; and

(2) $350,000 the second year is appropriated
for transfer to the Board of Regents of the
University of Minnesota for potato breeding.

$283,000 the second year is for a grant to
the Board of Regents of the University of
Minnesota to maintain and increase animal
disease testing capacity through the purchase
of Veterinary Diagnostic Laboratory
equipment. This is a onetime appropriation.

$250,000 the second year is appropriated
for transfer to the good food access account
created under Minnesota Statutes, section
17.1017, subdivision 3. This is a onetime
appropriation and is available until June 30,
2019.

$1,000,000 the second year is appropriated
for transfer to the agricultural emergency
account in the agricultural fund. This is a
onetime transfer.

Sec. 3.

[17.041] AGRICULTURAL EMERGENCY ACCOUNT;
APPROPRIATION.

Subdivision 1.

Establishment; appropriation.

An agricultural emergency account
is established in the agricultural fund. Money in the account, including interest, is
appropriated to the commissioner for emergency response and preparedness activities
for agricultural emergencies affecting producers of livestock, poultry, crops, or other
agricultural products. Eligible uses include, but are not limited to, purchasing necessary
equipment and reimbursing costs incurred by local units of government that are not
eligible for reimbursement from other sources.

Subd. 2.

Transfer authorized.

The commissioner may transfer money in the
account to the Board of Animal Health, other state agencies, or the University of
Minnesota for purposes of subdivision 1.

Subd. 3.

Annual report.

No later than February 1 each year, the commissioner
must report activities and expenditures under this section to the legislative committees
and divisions with jurisdiction over agriculture finance.

Sec. 4.

[17.1017] GOOD FOOD ACCESS PROGRAM.

Subdivision 1.

Definitions.

(a) For purposes of this section, unless the language
or context indicates that a different meaning is intended, the following terms have the
meanings given them.

(b) "Account" means the good food access account established in subdivision 3.

(c) "Commissioner" means the commissioner of agriculture.

(d) "Economic or community development financial institution (ECDFI)" means
a lender, including but not limited to a community development financial institution
(CDFI), an economic development district (EDD), a political subdivision of the state, a
microenterprise firm, or a nonprofit community lending organization that has previous
experience lending to a food retailer, producer, or another healthy food enterprise in an
underserved community in a low-income or moderate-income area, as defined in this
section; has been in existence and operating prior to January 1, 2014; has demonstrated
the ability to raise matching capital and in-kind services to leverage appropriated money;
has the demonstrated ability to underwrite loans and grants; and has partnered previously
with nonprofit healthy food access, public health, or related governmental departments or
community organizations.

(e) "Farmers' market" means an association of three or more persons who assemble
at a defined location that is open to the public for the purpose of selling directly to the
consumer the products of a farm or garden occupied and cultivated by the person selling
the product.

(f) "Financing" means loans, including low-interest loans, zero-interest loans,
forgivable loans, and other types of financial assistance other than grants.

(g) "Food hub" means a centrally located facility with a business management
structure that facilitates the aggregation, storage, processing, distribution, marketing, and
sale of locally or regionally produced food products, and which may include a small-scale
retail grocery operation.

(h) "Good Food Access Program Advisory Committee" means the Good Food
Access Program Advisory Committee under section 17.1018.

(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail
establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries,
and dairy products and may also sell household products, sundries, and other products.
Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery
establishment and may include a mobile food market or a delivery service operation.

(j) "Low-income area" means a census tract as reported in the most recently
completed decennial census published by the United States Bureau of the Census that has
a poverty rate of at least 20 percent or in which the median family income does not exceed
80 percent of the greater of the statewide or metropolitan median family income.

(k) "Moderate-income area" means a census tract as reported in the most recently
completed decennial census published by the United States Bureau of the Census in which
the median family income is between 81 percent and 95 percent of the median family
income for that area.

(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or
cooperative retail grocery operation located in a movable new or renovated truck, bus, or
other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood,
fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal
supply of cooking utensils and equipment and other household products and sundries.

(m) "Program" means the good food access program established in this section.

(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery
store as defined in this section. Small food retailer includes, but is not limited to, a corner
store, convenience store, farmers' market, mobile food market, and a retail food outlet
operated by an emergency food program or food hub.

(o) "Technical assistance" means needs-based project assistance provided through
the program, including sustainability-focused individualized guidance, presentations,
workshops, trainings, printed materials, mentorship opportunities, peer-to-peer
opportunities, or other guidance and resources on relevant topics such as business
planning, sales projections, cash flow, succession planning, financing, fund-raising,
marketing, food preparation demonstrations, and workforce training.

(p) "Underserved community" means a census tract that is federally designated
as a food desert by the United States Department of Agriculture, or a census tract in a
low-income or moderate-income area that includes a substantial subpopulation such as
the elderly or the disabled that has low supermarket access, regardless of distance, due
to lack of transportation.

Subd. 2.

Program established.

(a) A good food access program is established within
the Department of Agriculture to increase the availability of and access to affordable,
nutritious, and culturally appropriate food, including fresh fruits and vegetables, for
underserved communities in low-income and moderate-income areas by providing financial
support and sustainable public-private projects to open, renovate, or expand the operations
of grocery stores and small food retailers; expanding access to credit and reducing barriers
to investment in underserved communities in low- and moderate-income areas; and to
provide technical assistance, primarily for small food retailers with demonstrated need,
to increase availability and sustainable sales of affordable, nutritious, and culturally
appropriate food, including fresh fruits and vegetables, to underserved communities in
low-income and moderate-income areas. The commissioner, in cooperation with public
and private partners, shall establish and implement the program as provided in this section.

(b) The good food access program shall be comprised of state or private grants, loans,
or other types of financial and technical assistance for the establishment, construction,
expansion of operations, or renovation of grocery stores and small food retailers to increase
the availability of and access to affordable fresh produce and other nutritious, culturally
appropriate food to underserved communities in low-income and moderate-income areas.

Subd. 3.

Good food access account.

A good food access account is established in
the agricultural fund. The account consists of money appropriated by the legislature to the
commissioner, as provided by law, and any other money donated, allotted, transferred,
or otherwise provided to the account. Money in the account, including interest, is
appropriated to the commissioner for the purposes of this section, and shall be used, to
the extent practicable, to leverage other forms of public and private financing or financial
assistance for the projects.

Subd. 4.

Program administration.

(a) The commissioner shall be the administrator
of the account for auditing purposes and shall establish program requirements and a
competitive process for projects applying for financial and technical assistance.

(b) The commissioner may receive money or other assets from any source, including
but not limited to philanthropic foundations and financial investors, for deposit into the
account.

(c) Through issuance of requests for proposals, the commissioner may contract
with one or more qualified economic or community development financial institutions
to manage the financing component of the program and with one or more qualified
organizations or public agencies with financial or other program-related expertise to
manage the provision of technical assistance to project grantees.

(d) Money in the account at the close of each fiscal year shall remain in the account
and shall not cancel. In each biennium, the commissioner shall determine the appropriate
proportion of money to be allocated to loans, grants, technical assistance, and any other
types of financial assistance.

(e) To encourage public-private, cross-sector collaboration and investment in the
account and program and to ensure that the program intent is maintained throughout
implementation, the commissioner shall convene and maintain the Good Food Access
Program Advisory Committee.

(f) The commissioner, in cooperation with the Good Food Access Program Advisory
Committee, shall manage the program, establish program criteria, facilitate leveraging of
additional public and private investment, and promote the program statewide.

(g) The commissioner, in cooperation with the Good Food Access Program Advisory
Committee, shall establish annual monitoring and accountability mechanisms for all
projects receiving financing or other financial or technical assistance through this program.

Subd. 5.

Eligible projects.

(a) The commissioner, in cooperation with the program
partners and advisors, shall establish project eligibility guidelines and application
processes to be used to review and select project applicants for financing or other financial
or technical assistance. All projects must be located in an underserved community or must
serve primarily underserved communities in low-income and moderate-income areas.

(b) Projects eligible for financing include, but are not limited to, new construction,
renovations, expansions of operations, and infrastructure upgrades of grocery stores and
small food retailers to improve the availability of and access to affordable, nutritious food,
including fresh fruits and vegetables, and build capacity in areas of greatest need.

(c) Projects eligible for other types of financial assistance such as grants or
technical assistance are primarily projects throughout the state, including, but not limited
to, feasibility studies, new construction, renovations, expansion of operations, and
infrastructure upgrades of small food retailers.

Subd. 6.

Qualifications for receipt of financing and other financial or technical
assistance.

(a) An applicant for receipt of financing through an economic or community
development financial institution, or an applicant for a grant or other financial or technical
assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
or nonprofit community development organization. Each applicant must:

(1) demonstrate community engagement in and support for the project;

(2) demonstrate the capacity to successfully implement the project;

(3) demonstrate a viable plan for long-term sustainability, including the ability to
increase the availability of and access to affordable, nutritious, and culturally appropriate
food, including fresh fruits and vegetables, for underserved communities in low-income
and moderate-income areas; and

(4) demonstrate the ability to repay the debt, to the extent that the financing requires
repayment.

(b) Each applicant must also agree to comply with the following conditions for a
period of at least five years, except as otherwise specified in this section:

(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;

(2) apply to accept Special Supplemental Nutrition Program for Women, Infants,
and Children (WIC) benefits and, if approved, accept WIC benefits;

(3) allocate at least 30 percent of retail space for the sale of affordable, nutritious,
and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat
dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute
beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins,
consistent with nutrition standards in national guidelines described in the current United
States Department of Agriculture Dietary Guidelines for Americans;

(4) comply with all data collection and reporting requirements established by the
commissioner; and

(5) promote the hiring, training, and retention of local or regional residents from
low-income and moderate-income areas that reflect area demographics, including
communities of color.

(c) A selected project that is a small food retailer is not subject to the allocation
agreement under paragraph (b), clause (3), and may use financing, grants, or other financial
or technical assistance for refrigeration, displays, or onetime capital expenditures for the
promotion and sale of perishable foods, including a combination of affordable, nutritious,
and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats,
poultry, and fish, consistent with nutrition standards in national guidelines described in the
current United States Department of Agriculture Dietary Guidelines for Americans.

Subd. 7.

Additional selection criteria.

In determining which qualified projects to
finance, and in determining which qualified projects to provide with grants or other types
of financial or technical assistance, the commissioner, in cooperation with any entities
with which the commissioner contracts for those purposes and the Good Food Access
Program Advisory Committee, shall also consider:

(1) the level of need in the area to be served;

(2) the degree to which the project requires an investment of public support, or
technical assistance where applicable, to move forward, build capacity, create community
impact, or be competitive;

(3) the likelihood that the project will have positive economic and health impacts on
the underserved community, including creation and retention of jobs for local or regional
residents from low-income and moderate-income areas that reflect area demographics,
including communities of color;

(4) the degree to which the project will participate in state and local health department
initiatives to educate consumers on nutrition, promote healthy eating and healthy weight,
and support locally grown food products through programs such as Minnesota Grown; and

(5) any other criteria that the commissioner, in cooperation with public and private
partners, determines to be consistent with the purposes of this chapter.

Subd. 8.

Eligible costs.

Financing for project loans, including low-interest,
zero-interest, and forgivable loans, grants, and other financial or technical assistance, may
be used to support one or more of the following purposes:

(1) site acquisition and preparation;

(2) predevelopment costs, including but not limited to feasibility studies, market
studies, and appraisals;

(3) construction and build-out costs;

(4) equipment and furnishings;

(5) workforce or retailer training; and

(6) working capital.

Subd. 9.

Legislative report.

The commissioner, in cooperation with any economic
or community development financial institution and any other entity with which it
contracts, shall submit an annual report on the good food access program by January 15 of
each year to the chairs and ranking minority members of the house of representatives and
senate committees and divisions with jurisdiction over agriculture policy and finance. The
annual report shall include, but not be limited to, a summary of the following metrics:

(1) the number and types of projects financed;

(2) the amount of dollars leveraged or matched per project;

(3) the geographic distribution of financed projects;

(4) the number and types of technical assistance recipients;

(5) any market or commodity expansion associated with increased access;

(6) the demographics of the areas served;

(7) the costs of the program;

(8) the number of SNAP and WIC dollars spent;

(9) any increase in retail square footage;

(10) the number of loans or grants to minority-owned or female-owned businesses;
and

(11) measurable economic and health outcomes, including, but not limited to,
increases in sales and consumption of locally sourced and other fresh fruits and vegetables,
the number of construction and retail jobs retained or created, and any health initiatives
associated with the program.

Sec. 5.

[17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY
COMMITTEE.

Subdivision 1.

Definitions.

As used in this section, the following terms have the
meanings given them:

(1) "program" means the good food access program under section 17.1017; and

(2) "commissioner" means the commissioner of agriculture.

Subd. 2.

Creation.

The Good Food Access Program Advisory Committee consists
of the following members, appointed by the commissioner of agriculture, unless otherwise
specified:

(1) the commissioners of health, employment and economic development, and
human services, or their respective designees;

(2) one person representing the grocery industry;

(3) two people representing economic or community development, one rural
member and one urban or suburban member;

(4) two people representing political subdivisions of the state;

(5) one person designated by the Council for Minnesotans of African Heritage;

(6) one person designated by the Minnesota Indian Affairs Council;

(7) one person designated by the Council on Asian Pacific Minnesotans;

(8) one person designated by the Chicano Latino Affairs Council;

(9) one person designated by the Minnesota Farmers Union;

(10) one person representing public health experts;

(11) one person representing philanthropic foundations;

(12) one person representing economic or community development financial
institutions;

(13) one person representing the University of Minnesota Regional Sustainable
Development Partnerships;

(14) two people representing organizations engaged in addressing food security,
one representative from a statewide hunger relief organization and one from a
community-based organization;

(15) one person representing immigrant farmer-led organizations;

(16) one person representing small business technical assistance with experience
in food retail; and

(17) up to four additional members with economic development, health equity,
financial, or other relevant expertise.

At least half of the members must reside in or their organizations must serve rural
Minnesota. The commissioner may remove members and fill vacancies as provided in
section 15.059, subdivision 4.

Subd. 3.

Duties.

The advisory committee must advise the commissioner of
agriculture on managing the program, establishing program criteria, establishing project
eligibility guidelines, establishing application processes and additional selection criteria,
establishing annual monitoring and accountability mechanisms, facilitating leveraging of
additional public and private investments, and promoting the program statewide.

Subd. 4.

Meetings.

The commissioner must convene the advisory committee at
least two times per year to achieve the committee's duties.

Subd. 5.

Administrative support.

The commissioner of agriculture must provide
staffing, meeting space, and administrative services for the advisory committee.

Subd. 6.

Chair.

The commissioner of agriculture or the commissioner's designee
shall serve as chair of the committee.

Subd. 7.

Compensation.

The public members of the advisory committee serve
without compensation or payment of expenses.

Subd. 8.

Expiration.

The advisory committee does not expire.

Sec. 6.

Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:


Subd. 4.

Definitions.

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

(b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the
program.

(c) "Agriculture supply business" means a person, partnership, joint venture,
corporation, limited liability company, association, firm, public service company,
or cooperative that provides materials, equipment, or services to farmers or
agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this
program that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711,
subdivision 3
, and 103H.151, subdivision 2, or. Best management practices also means
other practices, techniques, and measures that have been demonstrated to the satisfaction
of the commissioner: (1) to prevent or reduce adverse environmental impacts by using
the most effective and practicable means of achieving environmental goals; or (2) to
achieve drinking water quality standards under chapter 103H or under Code of Federal
Regulations, title 40, parts 141 and 143, as amended
.

(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
designee of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at
a future date:

(1) that has been approved and certified by the local government unit; and

(2) for which a local lender has obligated itself to offer a loan.

(j) "Comprehensive water management plan" means a state approved and locally
adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
103D.401, or 103D.405.

(k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or
materials already provided as a result of implementing an approved eligible project.

(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly
participates in physical labor or operations management of farming and files a Schedule F
as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
the primary business activity under Schedule C, K, or S, or any other applicable report to
the United States Internal Revenue Service.

(m) "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.

(n) "Local government unit" means a county, soil and water conservation district,
or an organization formed for the joint exercise of powers under section 471.59 with
the authority to participate in the program.

(o) "Local lender" means a local government unit as defined in paragraph (n), a state
or federally chartered bank, a savings association, a state or federal credit union, Agribank
and its affiliated organizations, or a nonprofit economic development organization or other
financial lending institution approved by the commissioner.

(p) "Local revolving loan account" means the account held by a local government unit
and a local lender into which principal repayments from borrowers are deposited and new
loans are issued in accordance with the requirements of the program and lender agreements.

(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

(r) "Program" means the agriculture best management practices loan program
in this section.

(s) "Project" means one or more components or activities located within Minnesota
that are required by the local government unit to be implemented for satisfactory
completion of an eligible best management practice.

(t) "Rural landowner" means the owner of record of Minnesota real estate located
in an area determined by the local government unit to be rural after consideration of
local land use patterns, zoning regulations, jurisdictional boundaries, local community
definitions, historical uses, and other pertinent local factors.

(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
(d), except as expressly limited in this section.

Sec. 7.

Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:


Subd. 11a.

Eligible projects.

(a) All projects that remediate or mitigate adverse
environmental impacts are eligible if:

(1) the project is eligible under the an allocation agreement and funding sources
designated by the local government unit to finance the project; and
.

(2) (b) A manure management projects remediate project is eligible if the project
remediates
or mitigate mitigates impacts from facilities with less than 1,000 animal units
as defined in Minnesota Rules, chapter 7020, and otherwise meets the requirements of
this section
.

(c) A drinking water project is eligible if the project:

(1) remediates the adverse environmental impacts or presence of contaminants in
private well water;

(2) implements best management practices to achieve drinking water standards; and

(3) otherwise meets the requirements of this section.

Sec. 8.

[17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT
PROGRAM.

Subdivision 1.

Grants; eligibility.

(a) The commissioner must award cost-share
grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that
retrofit eligible tractors with eligible rollover protective structures. Grants are limited to
70 percent of the farmer's or school's documented cost to purchase, ship, and install an
eligible rollover protective structure. The commissioner must increase the grant award
amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or
school's cost per tractor to no more than $500.

(b) A rollover protective structure is eligible if it meets or exceeds SAE International
standard J2194.

(c) A tractor is eligible if the tractor was built before 1987.

Subd. 2.

Promotion; administration.

The commissioner may spend up to 20
percent of total program dollars each fiscal year to promote and administer the program to
Minnesota farmers and schools.

Subd. 3.

Nonstate sources; appropriation.

The commissioner must accept
contributions from nonstate sources to supplement state appropriations for this program.
Contributions received under this subdivision are appropriated to the commissioner for
purposes of this section.

Subd. 4.

Expiration.

This section expires on June 30, 2019.

Sec. 9.

Minnesota Statutes 2014, section 18B.26, subdivision 3, is amended to read:


Subd. 3.

Registration application and gross sales fee.

(a) For an agricultural
pesticide, a registrant shall pay an annual registration application fee for each agricultural
pesticide of $350. The fee is due by December 31 preceding the year for which the
application for registration is made. The fee is nonrefundable.

(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
registration application fee for each nonagricultural pesticide of $350. The fee is due by
December 31 preceding the year for which the application for registration is made. The fee
is nonrefundable. The If the registrant's annual gross sales of the nonagricultural pesticide
exceeded $70,000 in the previous calendar year, the
registrant of a nonagricultural pesticide
shall pay, in addition to the $350 minimum fee, a fee of equal to 0.5 percent of that portion
of the
annual gross sales of the over $70,000. For purposes of this subdivision, gross sales
includes both
nonagricultural pesticide sold in the state and the annual gross sales of the
nonagricultural pesticide sold into the state for use in this state. No additional fee is
required if the fee due amount based on percent of annual gross sales of a nonagricultural
pesticide is less than $10. The registrant shall secure sufficient sales information of
nonagricultural pesticides distributed into this state from distributors and dealers,
regardless of distributor location, to make a determination. Sales of nonagricultural
pesticides in this state and sales of nonagricultural pesticides for use in this state by
out-of-state distributors are not exempt and must be included in the registrant's annual
report, as required under paragraph (g), and fees shall be paid by the registrant based upon
those reported sales. Sales of nonagricultural pesticides in the state for use outside of
the state are exempt from the gross sales fee in this paragraph if the registrant properly
documents the sale location and distributors. A registrant paying more than the minimum
fee shall pay the balance due by March 1 based on the gross sales of the nonagricultural
pesticide by the registrant for the preceding calendar year. A pesticide determined by the
commissioner to be a sanitizer or disinfectant is exempt from the gross sales fee.

(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
sold into the state for use in this state.

(d) In those cases where a registrant first sells an agricultural pesticide in or into the
state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
license and is responsible for payment of the annual gross sales fee under paragraph (c),
record keeping under paragraph (i), and all other requirements of section 18B.316.

(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
commissioner, after a public hearing, may increase proportionally the pesticide sales and
product registration fees under this chapter by the amount necessary to ensure this level
of revenue is achieved. The authority under this section expires on June 30, 2014. The
commissioner shall report any fee increases under this paragraph 60 days before the fee
change is effective to the senate and house of representatives agriculture budget divisions.

(f) An additional fee of 50 percent of the registration application fee must be paid by
the applicant for each pesticide to be registered if the application is a renewal application
that is submitted after December 31.

(g) A registrant must annually report to the commissioner the amount, type and
annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
otherwise distributed in the state. The report shall be filed by March 1 for the previous
year's registration. The commissioner shall specify the form of the report or approve
the method for submittal of the report and may require additional information deemed
necessary to determine the amount and type of nonagricultural pesticide annually
distributed in the state. The information required shall include the brand name, United
States Environmental Protection Agency registration number, and amount of each
nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
the information collected, if made public, shall be reported in a manner which does not
identify a specific brand name in the report.

(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
report to the commissioner the amount, type, and annual gross sales of each registered
agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
state for use in the state. The report must be filed by January 31 for the previous year's
sales. The commissioner shall specify the form, contents, and approved electronic method
for submittal of the report and may require additional information deemed necessary to
determine the amount and type of agricultural pesticide annually distributed within the
state or into the state. The information required must include the brand name, United States
Environmental Protection Agency registration number, and amount of each agricultural
pesticide sold, offered for sale, or otherwise distributed in the state or into the state.

(i) A person who registers a pesticide with the commissioner under paragraph (b),
or a registrant under paragraph (d), shall keep accurate records for five years detailing
all distribution or sales transactions into the state or in the state and subject to a fee and
surcharge under this section.

(j) The records are subject to inspection, copying, and audit by the commissioner
and must clearly demonstrate proof of payment of all applicable fees and surcharges
for each registered pesticide product sold for use in this state. A person who is located
outside of this state must maintain and make available records required by this subdivision
in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
auditing of the records.

(k) The commissioner may adopt by rule regulations that require persons subject
to audit under this section to provide information determined by the commissioner to be
necessary to enable the commissioner to perform the audit.

(l) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

Sec. 10.

Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:


Subd. 2.

Activities authorized.

For the purposes of this program, the commissioner
may issue grants, loans, or other forms of financial assistance. Eligible activities include,
but are not limited to, grants to livestock producers under the livestock investment grant
program under section 17.118, bioenergy awards made by the NextGen Energy Board
under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and
financial assistance to support other rural economic infrastructure activities.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:


41A.14 AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND
TECHNOLOGY TRANSFER GRANT PROGRAM.

Subdivision 1.

Duties; grants.

The agriculture research, education, extension, and
technology transfer grant program is created. The purpose of the grant program is to
provide investments that will most efficiently achieve long-term agricultural productivity
increases through improved infrastructure, vision, and accountability. The scope and
intent of the grants, to the extent possible, shall provide for a long-term base funding
that allows the research grantee to continue the functions of the research, education, and
extension, and technology transfer efforts to a practical conclusion. Priority for grants
shall be given to human infrastructure. The commissioner shall provide grants for:

(1) agricultural research, extension, and technology transfer needs and recipients
including agricultural research and extension
at the University of Minnesota, research and
outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the
Minnesota Agricultural Experiment Station, University of Minnesota Extension Service,
the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
Education Council;
for use by any of the following:

(i) the College of Food, Agricultural and Natural Resource Sciences;

(ii) the Minnesota Agricultural Experiment Station;

(iii) the University of Minnesota Extension Service;

(iv) the University of Minnesota Veterinary School;

(v) the Veterinary Diagnostic Laboratory; or

(vi) the Stakman-Borlaug Center;

(2) agriculture rapid response for plant and animal diseases and pests; and

(3) agricultural education including but not limited to the Minnesota Agriculture
Education Leadership Council, farm business management, mentoring programs, graduate
debt forgiveness, and high school programs.

Subd. 2.

Advisory panel.

(a) In awarding grants under this section, the
commissioner and a representative of the College of Food, Agricultural and Natural
Resource Sciences at the University of Minnesota
must consult with an advisory panel
consisting of the following stakeholders:

(1) a representative of the College of Food, Agricultural and Natural Resource
Sciences at the University of Minnesota;

(2) (1) a representative of the Minnesota State Colleges and Universities system;

(3) (2) a representative of the Minnesota Farm Bureau;

(4) (3) a representative of the Minnesota Farmers Union;

(5) (4) a person representing agriculture industry statewide;

(6) (5) a representative of each of the state commodity councils organized under
section 17.54 and the Minnesota Pork Board;

(7) (6) a person representing an association of primary manufacturers of forest
products;

(8) (7) a person representing organic or sustainable agriculture; and

(9) (8) a person representing statewide environment and natural resource
conservation organizations.

(b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their
respective organizations.

Subd. 3.

Account.

An agriculture research, education, extension, and technology
transfer account is created in the agricultural fund in the state treasury. The account
consists of money received in the form of gifts, grants, reimbursement, or appropriations
from any source for any of the purposes provided in subdivision 1, and any interest or
earnings of the account. Money in the account is appropriated to the commissioner of
agriculture for the purposes under subdivision 1.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2a.

Biobased content.

"Biobased content" means a chemical, polymer,
monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a
biobased percentage of at least 51 percent as determined by testing representative samples
using American Society for Testing and Materials specification D6866.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2b.

Biobased formulated product.

"Biobased formulated product" means
a product that is not sold primarily for use as food, feed, or fuel and that has a biobased
content percentage of at least ten percent as determined by testing representative samples
using American Society for Testing and Materials specification D6866, or that contains
a biobased chemical constituent that displaces a known hazardous or toxic constituent
previously used in the product formulation.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2c.

Biobutanol.

"Biobutanol" means fermentation isobutyl alcohol that is
derived from agricultural products, including potatoes, cereal grains, cheese whey, and
sugar beets; forest products; or other renewable resources, including residue and waste
generated from the production, processing, and marketing of agricultural products, forest
products, and other renewable resources.

Sec. 15.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2d.

Biobutanol facility.

"Biobutanol facility" means a facility at which
biobutanol is produced.

Sec. 16.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 9a.

Quarterly.

"Quarterly" means any of the following three-month intervals
in a calendar year: January through March, April through June, July through September,
or October through December.

Sec. 17.

Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is
amended to read:


Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical with
biobased content as defined in section 41A.105, subdivision 1a.

Sec. 18.

Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is
amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials may be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources or from solid waste. The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin operating above 95,000 23,750 MMbtu of annual quarterly
biofuel production before July 1, 2015. Eligible facilities include existing companies and
facilities that are adding advanced biofuel production capacity, or retrofitting existing
capacity, as well as new companies and facilities. Production of conventional corn ethanol
and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must
produce at least 95,000 23,750 MMbtu a year of biofuel quarterly.

(b) No payments shall be made for advanced biofuel production that occurs after
June 30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's
eligibility for payments under this section to an advanced biofuel facility at a different
location.

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

(e) Renewable chemical production for which payment has been received under
section 41A.17, and biomass thermal production for which payment has been received
under section 41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 19.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is
amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this program
must source at least 80 percent biobased content, as defined in section 41A.105,
subdivision 1a, clause (1),
from Minnesota. If a facility is sited 50 miles or less from the
state border, biobased content must be sourced from within a 100-mile radius. Biobased
content must be from agricultural or forestry sources or from solid waste. The facility must
be located in Minnesota, must begin production at a specific location by June 30, 2025, and
must not begin production of 3,000,000 750,000 pounds of chemicals annually quarterly
before January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least 3,000,000 750,000
pounds per year of renewable chemicals quarterly. Renewable chemicals produced
through processes that are fully commercial before January 1, 2000, are not eligible.

(b) No payments shall be made for renewable chemical production that occurs after
June 30, 2035, for those eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable chemicals shall not transfer the producer's
eligibility for payments under this section to a renewable chemical facility at a different
location.

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

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under
section 41A.18, are not eligible for payment under this section.

Sec. 20.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is
amended to read:


Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make
payments to eligible producers of renewable chemicals located in the state. The amount of
the payment for each producer's annual production is $0.03 per pound of sugar-derived
renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu pound produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in
a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.

(d) For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.

Sec. 21.

Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is
amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials should be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, and
must not begin before July 1, 2015. Eligible facilities include existing companies and
facilities that are adding production capacity, or retrofitting existing capacity, as well as
new companies and facilities. Eligible biomass thermal production facilities must produce
at least 1,000 250 MMbtu per year of biomass thermal quarterly.

(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).

(c) An eligible producer of biomass thermal production shall not transfer the
producer's eligibility for payments under this section to a biomass thermal production
facility at a different location.

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

(e) Biofuel production for which payment has been received under section 41A.16,
and renewable chemical production for which payment has been received under section
41A.17, are not eligible for payment under this section.

Sec. 22.

[41A.20] SIDING PRODUCTION INCENTIVE.

Subdivision 1.

Definitions.

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

(b) "Commissioner" means the commissioner of agriculture.

(c) "Forest resources" means raw wood logs and material primarily made up of
cellulose, hemicellulose, or lignin, or a combination of those ingredients.

Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles
or less from the state border, raw materials may be sourced from within a 100-mile
radius. Raw materials must be from forest resources. The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2025, and must not
begin operating before July 1, 2017. Eligible facilities include existing companies and
facilities that are adding siding production capacity, or retrofitting existing capacity, as
well as new companies and facilities. Eligible siding production facilities must produce at
least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year.

(b) No payments shall be made for siding production that occurs after June 30, 2035,
for those eligible producers under paragraph (a).

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

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

Subd. 3.

Payment amounts; limits.

(a) The commissioner shall make payments
to eligible producers of siding. The amount of the payment for each eligible producer's
annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of
siding produced at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible siding producer in a fiscal year
may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch
nominal basis of siding produced. Total payments under this section to all eligible siding
producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding
square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.

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

Subd. 4.

Forest resources requirements.

Forest resources that come from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council,
Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who has
completed training from the Minnesota logger education program or the equivalent, and
have a forest stewardship plan.

Subd. 5.

Claims.

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

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

Subd. 6.

Appropriation.

A sum sufficient to make the payments required by this
section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the
general fund to the commissioner.

Sec. 23.

Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a,
is amended to read:


Subd. 2a.

When prepared.

Where there is potential for significant environmental
effects resulting from any major governmental action, the action shall be preceded by a
detailed environmental impact statement prepared by the responsible governmental unit.
The environmental impact statement shall be an analytical rather than an encyclopedic
document which describes the proposed action in detail, analyzes its significant
environmental impacts, discusses appropriate alternatives to the proposed action and
their impacts, and explores methods by which adverse environmental impacts of an
action could be mitigated. The environmental impact statement shall also analyze those
economic, employment, and sociological effects that cannot be avoided should the action
be implemented. To ensure its use in the decision-making process, the environmental
impact statement shall be prepared as early as practical in the formulation of an action.

(a) The board shall by rule establish categories of actions for which environmental
impact statements and for which environmental assessment worksheets shall be prepared
as well as categories of actions for which no environmental review is required under this
section. A mandatory environmental assessment worksheet shall not be required for the
expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
biobutanol facility as defined in section 41A.105 41A.15, subdivision 1a 2d, based on
the capacity of the expanded or converted facility to produce alcohol fuel, but must be
required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other
categories of actions for which environmental assessment worksheets must be prepared.
The responsible governmental unit for an ethanol plant or biobutanol facility project for
which an environmental assessment worksheet is prepared shall be the state agency with
the greatest responsibility for supervising or approving the project as a whole.

A mandatory environmental impact statement shall not be required for a facility
or plant located outside the seven-county metropolitan area that produces less than
125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less
than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as
defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined
in section 41A.105 41A.15, subdivision 1a, clause (1) 2d; or a cellulosic biofuel facility.
A facility or plant that only uses a cellulosic feedstock to produce chemical products for
use by another facility as a feedstock shall not be considered a fuel conversion facility as
used in rules adopted under this chapter.

(b) The responsible governmental unit shall promptly publish notice of the
completion of an environmental assessment worksheet by publishing the notice in at least
one newspaper of general circulation in the geographic area where the project is proposed,
by posting the notice on a Web site that has been designated as the official publication site
for publication of proceedings, public notices, and summaries of a political subdivision in
which the project is proposed, or in any other manner determined by the board and shall
provide copies of the environmental assessment worksheet to the board and its member
agencies. Comments on the need for an environmental impact statement may be submitted
to the responsible governmental unit during a 30-day period following publication of the
notice that an environmental assessment worksheet has been completed. The responsible
governmental unit's decision on the need for an environmental impact statement shall be
based on the environmental assessment worksheet and the comments received during the
comment period, and shall be made within 15 days after the close of the comment period.
The board's chair may extend the 15-day period by not more than 15 additional days upon
the request of the responsible governmental unit.

(c) An environmental assessment worksheet shall also be prepared for a proposed
action whenever material evidence accompanying a petition by not less than 100
individuals who reside or own property in the state, submitted before the proposed
project has received final approval by the appropriate governmental units, demonstrates
that, because of the nature or location of a proposed action, there may be potential for
significant environmental effects. Petitions requesting the preparation of an environmental
assessment worksheet shall be submitted to the board. The chair of the board shall
determine the appropriate responsible governmental unit and forward the petition to it.
A decision on the need for an environmental assessment worksheet shall be made by
the responsible governmental unit within 15 days after the petition is received by the
responsible governmental unit. The board's chair may extend the 15-day period by not
more than 15 additional days upon request of the responsible governmental unit.

(d) Except in an environmentally sensitive location where Minnesota Rules, part
4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative
capacity of less than 1,000 animal units;

(2) the application for the animal feedlot facility includes a written commitment by
the proposer to design, construct, and operate the facility in full compliance with Pollution
Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business
days prior to the Pollution Control Agency or county issuing a feedlot permit for the
animal feedlot facility unless another public meeting for citizen input has been held with
regard to the feedlot facility to be permitted. The exemption in this paragraph is in
addition to other exemptions provided under other law and rules of the board.

(e) The board may, prior to final approval of a proposed project, require preparation
of an environmental assessment worksheet by a responsible governmental unit selected
by the board for any action where environmental review under this section has not been
specifically provided for by rule or otherwise initiated.

(f) An early and open process shall be utilized to limit the scope of the environmental
impact statement to a discussion of those impacts, which, because of the nature or location
of the project, have the potential for significant environmental effects. The same process
shall be utilized to determine the form, content and level of detail of the statement as well
as the alternatives which are appropriate for consideration in the statement. In addition,
the permits which will be required for the proposed action shall be identified during the
scoping process. Further, the process shall identify those permits for which information
will be developed concurrently with the environmental impact statement. The board
shall provide in its rules for the expeditious completion of the scoping process. The
determinations reached in the process shall be incorporated into the order requiring the
preparation of an environmental impact statement.

(g) The responsible governmental unit shall, to the extent practicable, avoid
duplication and ensure coordination between state and federal environmental review
and between environmental review and environmental permitting. Whenever practical,
information needed by a governmental unit for making final decisions on permits
or other actions required for a proposed project shall be developed in conjunction
with the preparation of an environmental impact statement. When an environmental
impact statement is prepared for a project requiring multiple permits for which two or
more agencies' decision processes include either mandatory or discretionary hearings
before a hearing officer prior to the agencies' decision on the permit, the agencies
may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
consolidated hearing process if requested by the proposer. All agencies having jurisdiction
over a permit that is included in the consolidated hearing shall participate. The responsible
governmental unit shall establish appropriate procedures for the consolidated hearing
process, including procedures to ensure that the consolidated hearing process is consistent
with the applicable requirements for each permit regarding the rights and duties of parties to
the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.

(h) An environmental impact statement shall be prepared and its adequacy
determined within 280 days after notice of its preparation unless the time is extended by
consent of the parties or by the governor for good cause. The responsible governmental
unit shall determine the adequacy of an environmental impact statement, unless within 60
days after notice is published that an environmental impact statement will be prepared,
the board chooses to determine the adequacy of an environmental impact statement. If an
environmental impact statement is found to be inadequate, the responsible governmental
unit shall have 60 days to prepare an adequate environmental impact statement.

(i) The proposer of a specific action may include in the information submitted to the
responsible governmental unit a preliminary draft environmental impact statement under
this section on that action for review, modification, and determination of completeness and
adequacy by the responsible governmental unit. A preliminary draft environmental impact
statement prepared by the project proposer and submitted to the responsible governmental
unit shall identify or include as an appendix all studies and other sources of information
used to substantiate the analysis contained in the preliminary draft environmental impact
statement. The responsible governmental unit shall require additional studies, if needed,
and obtain from the project proposer all additional studies and information necessary for
the responsible governmental unit to perform its responsibility to review, modify, and
determine the completeness and adequacy of the environmental impact statement.

Sec. 24.

Minnesota Statutes 2015 Supplement, section 583.215, is amended to read:


583.215 EXPIRATION.

Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
to 583.32, expire June 30, 2016 2018.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 25.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 2,
is amended to read:


Subd. 2.

Protection Services

16,452,000
16,402,000
Appropriations by Fund
2016
2017
General
15,874,000
15,824,000
Agricultural
190,000
190,000
Remediation
388,000
388,000

$25,000 the first year and $25,000 the second
year are to develop and maintain cottage
food license exemption outreach and training
materials.

$75,000 the first year is for the commissioner,
in consultation with the Northeast Regional
Corrections Center and the United Food
and Commercial Workers, to study and
provide recommendations for upgrading the
existing processing facility on the campus of
the Northeast Regional Corrections Center
into a USDA-certified food processing
facility. The commissioner shall report these
recommendations to the chairs of the house
of representatives and senate committees
with jurisdiction over agriculture finance by
March 15, 2016.

$75,000 the second year is for a coordinator
for
to coordinate the correctional facility
vocational training pilot program and to assist
entities that have explored the feasibility of
establishing a USDA-certified or state "equal
to" food processing facility within 30 miles of
the Northeast Regional Corrections Center
.

$388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.

$225,000 the first year and $175,000
the second year are for compensation
for destroyed or crippled animals under
Minnesota Statutes, section 3.737. This
appropriation may be spent to compensate
for animals that were destroyed or crippled
during fiscal years 2014 and 2015. If the
amount in the first year is insufficient, the
amount in the second year is available in the
first year.

$125,000 the first year and $125,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year.

If the commissioner determines that claims
made under Minnesota Statutes, section
3.737 or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.

$70,000 the first year and $70,000 the second
year are for additional cannery inspections.

$100,000 the first year and $100,000 the
second year are for increased oversight of
delegated local health boards.

$100,000 the first year and $100,000 the
second year are to decrease the turnaround
time for retail food handler plan reviews.

$1,024,000 the first year and $1,024,000 the
second year are to streamline the retail food
safety regulatory and licensing experience
for regulated businesses and to decrease the
inspection delinquency rate.

$1,350,000 the first year and $1,350,000 the
second year are for additional inspections of
food manufacturers and wholesalers.

$150,000 the first year and $150,000 the
second year are for additional funding for
dairy inspection services.

$150,000 the first year and $150,000 the
second year are for additional funding for
laboratory services operations.

$250,000 the first year and $250,000
the second year are for additional meat
inspection services, including inspections
provided under the correctional facility
vocational training pilot program.

Notwithstanding Minnesota Statutes, section
18B.05, $90,000 the first year and $90,000
the second year are from the pesticide
regulatory account in the agricultural fund
for an increase in the operating budget for
the Laboratory Services Division.

$100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to update
and modify applicator education and training
materials.

Sec. 26.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
is amended to read:


Subd. 4.

Agriculture, Bioenergy, and
Bioproduct Advancement

14,993,000
19,010,000

$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3.
The transfer in this paragraph includes
money for plant breeders at the University
of Minnesota for wild rice, potatoes, and
grapes. Of these amounts, at least $600,000
each year is for agriculture rapid response
the Minnesota Agricultural Experiment
Station's Agriculture Rapid Response Fund
under Minnesota Statutes, section 41A.14,
subdivision 1
, clause (2). Of the amount
appropriated in this paragraph, $1,000,000
each year is for transfer to the Board of
Regents of the University of Minnesota for
research to determine (1) what is causing
avian influenza, (2) why some fowl are more
susceptible, and (3) prevention measures that
can be taken. Of the amount appropriated
in this paragraph, $2,000,000 each year
is for grants to the Minnesota Agriculture
Education Leadership Council to enhance
agricultural education with priority given
to Farm Business Management challenge
grants. The commissioner shall transfer the
remaining grant funds in this appropriation
each year to the Board of Regents of the
University of Minnesota for purposes of
Minnesota Statutes, section 41A.14.

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation
for costs incurred to administer the program.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. No
later than February 1, 2016, and February
1, 2017, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments
and anticipated accomplishments in
the following areas: facilitating the
start-up, modernization, or expansion of
livestock operations including beginning
and transitioning livestock operations;
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; assisting value-added agricultural
businesses to begin or expand, access new
markets, or diversify products; developing
urban agriculture; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
loans under Minnesota Statutes, section
41B.056; sustainable agriculture on farm
research and demonstration; development or
expansion of food hubs and other alternative
community-based food distribution systems;
and research on bioenergy, biobased content,
or biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, 2019.

The commissioner may use funds
appropriated for the agricultural growth,
research, and innovation program as provided
in this paragraph. The commissioner may
award grants to owners of Minnesota
facilities producing bioenergy, biobased
content, or a biobased formulated product;
to organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse strands of prairie
plants and other perennials for bioenergy
systems; or to certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner
shall make a good-faith effort to select
projects that have merit and, when taken
together, represent a variety of bioenergy
technologies, biomass feedstocks, and
geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at the
request of the commissioner.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $1,000,000 the
first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to preserve and
promote Minnesota agriculture.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $500,000 in
fiscal year 2016 and $1,500,000 in fiscal
year 2017 are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year, the
balance of the appropriation is available
to the commissioner for the agricultural
growth, research, and innovation program.
Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation
is available until June 30, 2017, and the
second year appropriation is available until
June 30, 2018. The commissioner may use
up to 4.5 percent of the appropriation for
administration of the incentive payment
programs.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $250,000
the first year is for grants to communities
to develop or expand food hubs and
other alternative community-based food
distribution systems. Of this amount,
$50,000 is for the commissioner to consult
with existing food hubs, alternative
community-based food distribution systems,
and University of Minnesota Extension
to identify best practices for use by other
Minnesota communities. No later than
December 15, 2015, the commissioner must
report to the legislative committees with
jurisdiction over agriculture and health
regarding the status of emerging alternative
community-based food distribution systems
in the state along with recommendations
to eliminate any barriers to success. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
This is a onetime appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable
retail petroleum dispensers to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A
retail petroleum dispenser selling petroleum
for use in spark ignition engines for vehicle
model years after 2000 is eligible for grant
money under this paragraph if the retail
petroleum dispenser has no more than 15
retail petroleum dispensing sites and each
site is located in Minnesota. The grant
money received under this paragraph must
be used for the installation of appropriate
technology that uses fuel dispensing
equipment appropriate for at least one fuel
dispensing site to dispense gasoline that is
blended with 15 percent of agriculturally
derived, denatured ethanol, by volume, and
appropriate technical assistance related to
the installation. A grant award must not
exceed 85 percent of the cost of the technical
assistance and appropriate technology,
including remetering of and retrofits for
retail petroleum dispensers and replacement
of petroleum dispenser projects. The
commissioner may use up to $35,000 of this
appropriation for administrative expenses.
The commissioner shall cooperate with
biofuel stakeholders in the implementation
of the grant program. The commissioner
must report to the legislative committees
with jurisdiction over agriculture policy and
finance by February 1 each year, detailing
the number of grants awarded under this
paragraph and the projected effect of the grant
program on meeting the biofuel replacement
goals under Minnesota Statutes, section
239.7911. These are onetime appropriations.

$25,000 the first year and $25,000 the second
year are for grants to the Southern Minnesota
Initiative Foundation to promote local foods
through an annual event that raises public
awareness of local foods and connects local
food producers and processors with potential
buyers.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 27.

Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to
read:


Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; EMERGENCY
PREPAREDNESS;
APPROPRIATIONS AND TRANSFERS.

(a) $3,619,000 $519,000 is appropriated from the general fund in fiscal year 2016 to
the commissioner of agriculture for avian influenza emergency response activities. The
commissioner may use money appropriated under this paragraph to purchase necessary
euthanasia and composting equipment and to reimburse costs incurred by local units of
government directly related to avian influenza emergency response activities that are not
eligible for federal reimbursement. This appropriation is available the day following final
enactment until June 30, 2017.

(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
Board of Animal Health for avian influenza emergency response activities. The Board
may use money appropriated under this paragraph to purchase necessary euthanasia and
composting equipment.
any animal disease emergency response or planning activity,
including but not limited to:

(1) the retention of staff trained in disease response;

(2) costs associated with the relocation and expansion of the Minnesota Poultry
Testing Laboratory;

(3) the identification of risk factors for disease transmission; and

(4) the implementation of strategies to prevent or reduce the risk of disease
introduction and transmission.

This appropriation is available the day following final enactment until June 30, 2017 2019.

(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of health for avian influenza emergency response activities. This
appropriation is available the day following final enactment until June 30, 2017.

(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of natural resources for sampling wild animals to detect and monitor the
avian influenza virus. This appropriation may also be used to conduct serology sampling,
in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
Chair in Avian Health, from birds within a control zone and outside of a control zone.
This appropriation is available the day following final enactment until June 30, 2017.

(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of public safety to operate the State Emergency Operation Center in
coordination with the statewide avian influenza response activities. Appropriations
under this paragraph may also be used to support a staff person at the state's agricultural
incident command post in Willmar. This appropriation is available the day following final
enactment until June 30, 2017.

(f) The commissioner of management and budget may transfer unexpended balances
from the appropriations in this section to any state agency for operating expenses related
to avian influenza emergency response activities. The commissioner of management and
budget must report each transfer to the chairs and ranking minority members of the senate
Committee on Finance and the house of representatives Committee on Ways and Means.

(g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
section 17, no later than September 30, 2015, the commissioner of management and
budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
subdivision 6
. This amount is available for avian influenza emergency response eligible
activities as provided in Laws 2015, chapter 65, article 1, section 18, as amended.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 28. GOOD FOOD ACCESS ADVISORY COMMITTEE.

The commissioner of agriculture and designating authorities must make their initial
appointments and designations by July 1, 2016, for the Good Food Access Advisory
Committee established under Minnesota Statutes, section 17.1018. The commissioner of
agriculture or the commissioner's designee must convene the first meeting of the Good
Food Access Advisory Committee by September 1, 2016.

Sec. 29. FARMER-LENDER MEDIATION TASK FORCE.

The commissioner of agriculture must convene an advisory task force to provide
recommendations to the legislature regarding the state's Farmer-Lender Mediation Act.
The task force must be comprised of 14 members, including the commissioner or the
commissioner's designee, one farm advocate appointed by the commissioner who is
responsible for mediating debt between farmers and lenders, one adult farm business
management instructor appointed by the commissioner, and three farmers appointed by
the commissioner, at least one of whom is a beginning or nontraditional farmer and at
least one of whom has personal experience with the farmer-lender mediation program.
The remaining membership of the task force consists of one member appointed by each
of the following entities:

(1) Minnesota Farm Bureau;

(2) Minnesota Farmers Union;

(3) Minnesota Bankers Association;

(4) Independent Community Bankers of Minnesota;

(5) Farm Credit Services - Minnesota State Federation;

(6) Minnesota Credit Union Network;

(7) Minnesota-South Dakota Equipment Dealers Association; and

(8) University of Minnesota Extension.

No later than February 1, 2017, the commissioner must report the task force's
recommendations to the legislative committees with jurisdiction over agriculture policy
and finance.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 30. TRANSFER REQUIRED.

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

Sec. 31. REPEALER.

Laws 2015, First Special Session chapter 4, article 2, section 81, is repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figures "2016" and "2017" used in this article mean that the addition
to the appropriations listed under them are available for the fiscal year ending June 30,
2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. POLLUTION CONTROL AGENCY

Subdivision 1.

Total Appropriation

$
-0-
$
2,620,000
Appropriations by Fund
2016
2017
General
-0-
1,918,000
Environmental
-0-
702,000

Subd. 2.

Water

-0-
1,038,000

$437,000 the second year is from the general
fund and $486,000 the second year is
from the environmental fund to meet the
increased demand for technical assistance
and review of municipal water infrastructure
projects that will be generated by increased
grant funding through the Public Facilities
Authority. This is a onetime appropriation
and is available until June 30, 2019.

$115,000 the second year is for the working
lands program feasibility study and program
plan. This is a onetime appropriation and is
available until June 30, 2018.

Subd. 3.

Land

-0-
432,000

$216,000 the second year is from the
general fund and $216,000 the second year
is from the environmental fund to manage
contaminated sediment projects at multiple
sites identified in the St. Louis River
remedial action plan to restore water quality
in the St. Louis River area of concern. This
amount is added to the base for fiscal years
2018, 2019, and 2020 only.

Subd. 4.

Environmental Assistance and
Cross-Media

-0-
1,150,000

$500,000 the second year is for SCORE
block grants to counties. This amount is in
addition to the amounts appropriated in Laws
2015, First Special Session chapter 4, article
3, section 2, subdivision 5. This is a onetime
appropriation.

$650,000 the second year is to design
remedial actions and prepare bids for the
Waste Disposal Engineering Landfill in the
city of Andover in accordance with the
closed landfill program under Minnesota
Statutes, sections 115B.39 to 115B.42. This
is a onetime appropriation.

Sec. 3. NATURAL RESOURCES

Subdivision 1.

Total Appropriation

$
2,269,000
$
14,432,000
Appropriations by Fund
2016
2017
General
1,599,000
9,567,000
Natural Resources
-0-
4,755,000
Game and Fish
670,000
110,000

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

Subd. 2.

Lands and Minerals Management

-0-
200,000

$200,000 the second year is to initiate,
in consultation with the school trust
lands director, a valuation process
and representative valuations for the
compensation of school trust lands required
by Minnesota Statutes, section 84.027,
subdivision 18, paragraph (b). By January 15,
2017, the commissioner must submit a report
to the chairs and ranking minority members
of the house of representatives and senate
committees and divisions with jurisdiction
over environment and natural resources
and education policy and finance on the
Department of Natural Resources' progress in
developing a valuation process, a description
of the process to identify representative
sample valuations, and the results of the
representative valuations of school trust
lands identified for compensation. This is a
onetime appropriation.

Subd. 3.

Ecological and Water Resources

-0-
612,000

$187,000 the second year is for a grant to the
Middle-Snake-Tamarac Rivers Watershed
District to match equal funds from the North
Dakota State Water Commission and North
Dakota water boards to conduct hydraulic
modeling of alternative floodway options
for the reach including and upstream and
downstream of the Minnesota and North
Dakota agricultural levies in the vicinity
of Oslo, Minnesota. The modeling must
include evaluating removal of floodway
flow obstructions, channel obstructions,
transportation access, and equalization of
agricultural levy protection. The project must
be conducted in partnership with the border
township association group representing four
Minnesota townships and the city of Oslo
and the three adjacent townships in North
Dakota. This is a onetime appropriation and
is available until June 30, 2018.

$200,000 the second year is for a grant to
the Koronis Lake Association for purposes
of removing and preventing aquatic invasive
species. This is a onetime appropriation.

$225,000 the second year is from the water
management account in the natural resources
fund for water appropriation monitoring,
modeling, and reporting for the Cold Spring
Creek area as required under this act. This
is a onetime appropriation and is available
until June 30, 2022.

Subd. 4.

Forest Management

-0-
3,500,000

$2,500,000 the second year is for private
forest management assistance. The agency
base is increased by $2,000,000 in fiscal year
2018 and thereafter.

$1,000,000 the second year is from the
forest management investment account in the
natural resources fund for reforestation on
state lands. This is a onetime appropriation.

Subd. 5.

Parks and Trails Management

-0-
6,459,000
Appropriations by Fund
2016
2017
General
-0-
2,929,000
Natural Resources
-0-
3,530,000

$2,800,000 the second year is a onetime
appropriation.

$2,300,000 the second year is from the state
parks account in the natural resources fund.
Of this amount, $1,300,000 is onetime,
of which $1,150,000 is for strategic park
acquisition.

$20,000 the second year is from the natural
resources fund to design and erect signs
marking the David Dill trail designated in
this act. Of this amount, $10,000 is from the
snowmobile trails and enforcement account
and $10,000 is from the all-terrain vehicle
account. This is a onetime appropriation.

$100,000 the second year is for the
improvement of the infrastructure for
sanitary sewer service at the Woodenfrog
Campground in Kabetogama State Forest.
This is a onetime appropriation.

$29,000 the second year is for computer
programming related to the transfer-on-death
title changes for watercraft. This is a onetime
appropriation.

$210,000 the first year is from the water
recreation account in the natural resources
fund for implementation of Minnesota
Statutes, section 86B.532, established in this
act. This is a onetime appropriation. The
commissioner of natural resources shall seek
federal and other nonstate funds to reimburse
the department for the initial costs of
producing and distributing carbon monoxide
boat warning labels. All amounts collected
under this paragraph shall be deposited into
the water recreation account.

$1,000,000 the second year is from the
natural resources fund for a grant to Lake
County for construction, including bridges,
of the Prospectors ATV Trail System
linking the communities of Ely, Babbitt,
Embarrass, and Tower; Bear Head Lake
and Lake Vermilion-Soudan Underground
Mine State Parks; the Taconite State Trail;
and the Lake County Regional ATV Trail
System. Of this amount, $900,000 is from
the all-terrain vehicle account, $50,000 is
from the off-highway motorcycle account,
and $50,000 is from the off-road vehicle
account. This is a onetime appropriation.

Subd. 6.

Fish and Wildlife Management

-0-
50,000

$50,000 the second year is from the game
and fish fund for fish virus surveillance,
including fish testing in high-risk waters used
for bait production, to ensure the availability
of safe bait. This is a onetime appropriation.

Subd. 7.

Enforcement

670,000
-0-

$670,000 the first year is from the game and
fish fund for aviation services. This is a
onetime appropriation.

Subd. 8.

Operations Support

1,599,000
3,611,000
Appropriations by Fund
2016
2017
General
1,599,000
3,551,000
Game and Fish
-0-
60,000

$1,599,000 the first year and $2,801,000
the second year are for legal costs related
to the NorthMet mining project. Of this
amount, up to $1,289,000 the second year
may be transferred to other agencies for legal
costs associated with the NorthMet mining
project. This is a onetime appropriation and
is available until June 30, 2019.

$750,000 the second year is for a grant to
Wolf Ridge Environmental Learning Center
to construct a new dormitory, renovate an old
dormitory, construct a maintenance building,
and construct a small classroom building
with parking. The grant is not available
until the commissioner of management
and budget determines that an amount
sufficient to complete the project is available
from nonstate sources. This is a onetime
appropriation and is available until June 30,
2019.

$60,000 the second year is from the
heritage enhancement account for the
department's Southeast Asian unit to
conduct outreach efforts to the Southeast
Asian community in Minnesota, including
outreach efforts to refugees from Burma, to
encourage participation in outdoor education
opportunities and activities. This is a onetime
appropriation.

Sec. 4. BOARD OF WATER AND SOIL
RESOURCES

$
-0-
$
479,000

$479,000 the second year is for the
development of a detailed plan to implement
a working lands watershed restoration
program to incentivise the establishment and
maintenance of perennial crops that includes
the following:

(1) a process for selecting pilot watersheds
that are expected to result in the greatest
water quality improvements and exhibit
readiness to participate in the program;

(2) an assessment of the quantity of
agricultural land that is expected to be
eligible for the program in each watershed;

(3) an assessment of landowner interest in
participating in the program;

(4) an assessment of the contract terms and
any recommendations for changes to the
terms, including consideration of variable
payment rates for lands of different priority
or type;

(5) an assessment of the opportunity to
leverage federal funds through the program
and recommendations on how to maximize
the use of federal funds for assistance to
establish perennial crops;

(6) an assessment of how other state
programs could complement the program;

(7) an estimate of water quality improvements
expected to result from implementation in
pilot watersheds;

(8) an assessment of how to best integrate
program implementation with existing
conservation requirements and develop
recommendations on harvest practices and
timing to benefit wildlife production;

(9) an assessment of the potential viability
and water quality benefit of cover crops used
in biomass processing facilities;

(10) a timeline for implementation,
coordinated to the extent possible with
proposed biomass processing facilities; and

(11) a projection of funding sources needed
to complete implementation.

This is a onetime appropriation and is
available until June 30, 2018.

The board shall coordinate development of
the working lands watershed restoration plan
with stakeholders and the commissioners
of natural resources, agriculture, and the
Pollution Control Agency. The board must
submit an interim report by October 15,
2017, and the feasibility study and program
plan by February 1, 2018, to the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over agriculture, natural resources, and
environment policy and finance and to the
Clean Water Council.

Sec. 5. LEGISLATURE

$
25,000
$
-0-

$25,000 the first year is from the Minnesota
future resources fund to the Legislative
Coordinating Commission for the Aggregate
Resources Task Force established in this
act. This is a onetime appropriation and is
available until June 30, 2018.

Sec. 6. ADMINISTRATION

$
250,000
$
-0-

$250,000 the first year is from the state forest
suspense account in the permanent school
fund for the school trust lands director to
initiate real estate development projects
on school trust lands as determined by the
school trust lands director. This is a onetime
appropriation.

Sec. 7.

Minnesota Statutes 2014, section 17.4982, subdivision 18a, is amended to read:


Subd. 18a.

Nonindigenous species.

"Nonindigenous species" means a species of
fish or other aquatic life that is:

(1) not known to have been historically present in the state;

(2) not known to be naturally occurring in a particular part of the state; or

(3) listed designated by rule as a prohibited or regulated invasive species.

Sec. 8.

Minnesota Statutes 2014, section 84.027, subdivision 13, is amended to read:


Subd. 13.

Game and fish rules.

(a) The commissioner of natural resources may
adopt rules under sections 97A.0451 to 97A.0459 and this subdivision that are authorized
under:

(1) chapters 97A, 97B, and 97C to set open seasons and areas, to close seasons and
areas, to select hunters for areas, to provide for tagging and registration of game and fish, to
prohibit or allow taking of wild animals to protect a species, to prevent or control wildlife
disease, to open or close bodies of water or portions of bodies of water for night bow
fishing, and to prohibit or allow importation, transportation, or possession of a wild animal;

(2) sections 84.093, 84.15, and 84.152 to set seasons for harvesting wild ginseng
roots and wild rice and to restrict or prohibit harvesting in designated areas; and

(3) section 84D.12 to list designate prohibited invasive species, regulated invasive
species, and unregulated nonnative species, and to list infested waters.

(b) If conditions exist that do not allow the commissioner to comply with sections
97A.0451 to 97A.0459, including the need to adjust season variables on an annual basis
based upon current biological and harvest data, the commissioner may adopt a rule
under this subdivision by submitting the rule to the attorney general for review under
section 97A.0455, publishing a notice in the State Register and filing the rule with the
secretary of state and the Legislative Coordinating Commission, and complying with
section 97A.0459, and including a statement of the conditions and a copy of the rule in the
notice. The conditions for opening a water body or portion of a water body for night bow
fishing under this section may include the need to temporarily open the area to evaluate
compatibility of the activity on that body of water prior to permanent rulemaking. The
notice may be published after it is received from the attorney general or five business days
after it is submitted to the attorney general, whichever is earlier.

(c) Rules adopted under paragraph (b) are effective upon publishing in the State
Register and may be effective up to seven days before publishing and filing under
paragraph (b), if:

(1) the commissioner of natural resources determines that an emergency exists;

(2) the attorney general approves the rule; and

(3) for a rule that affects more than three counties the commissioner publishes the
rule once in a legal newspaper published in Minneapolis, St. Paul, and Duluth, or for a
rule that affects three or fewer counties the commissioner publishes the rule once in a legal
newspaper in each of the affected counties.

(d) Except as provided in paragraph (e), a rule published under paragraph (c), clause
(3), may not be effective earlier than seven days after publication.

(e) A rule published under paragraph (c), clause (3), may be effective the day the
rule is published if the commissioner gives notice and holds a public hearing on the rule
within 15 days before publication.

(f) The commissioner shall attempt to notify persons or groups of persons affected
by rules adopted under paragraphs (b) and (c) by public announcements, posting, and
other appropriate means as determined by the commissioner.

(g) Notwithstanding section 97A.0458, a rule adopted under this subdivision is
effective for the period stated in the notice but not longer than 18 months after the rule is
effective.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 84.027, subdivision 13a, is
amended to read:


Subd. 13a.

Game and fish expedited permanent rules.

(a) In addition to the
authority granted in subdivision 13, the commissioner of natural resources may adopt rules
under section 14.389 that are authorized under:

(1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to
designate fish spawning beds or fish preserves, to select hunters or anglers for areas,
to provide for registration of game or fish, to prevent or control wildlife disease, or to
correct errors or omissions in rules that do not have a substantive effect on the intent or
application of the original rule; or

(2) section 84D.12 to list designate prohibited invasive species, regulated invasive
species, and unregulated nonnative species.

(b) The commissioner of natural resources may adopt rules under section 14.389
that are authorized under chapters 97A, 97B, and 97C, for purposes in addition to those
listed in paragraph (a), clause (1), subject to the notice and public hearing provisions
of section 14.389, subdivision 5.

Sec. 10.

Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:


Subd. 2.

License required; exception exemptions.

(a) Except as provided in
paragraph (b) this subdivision, a person may not harvest, buy, sell, transport, or possess
aquatic plants without a license required under this chapter. A license shall be issued in
the same manner as provided under the game and fish laws.

(b) A resident under the age of 18 years may harvest wild rice without a license, if
accompanied by a person with a wild rice license.

(c) Tribal band members who possess a valid tribal identification card from a
federally recognized tribe located in Minnesota are deemed to have a license to harvest
wild rice under this section.

Sec. 11.

Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:


Subd. 2.

Exemptions.

Registration is not required for an off-road vehicle that is:

(1) owned and used by the United States, an Indian tribal government, the state,
another state, or a political subdivision; or

(2) registered in another state or country and has not been in this state for more than
30 consecutive days; or

(3) operated with a valid state trail pass according to section 84.8035.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 12.

Minnesota Statutes 2014, section 84.8035, is amended to read:


84.8035 NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.

Subdivision 1.

Pass required; fee.

(a) Except as provided under paragraph (c), a
nonresident person may not operate an off-road vehicle on a state or grant-in-aid off-road
vehicle trail or use area unless the vehicle displays a nonresident an off-road vehicle state
trail pass sticker issued according to this section. The pass must be viewable by a peace
officer, a conservation officer, or an employee designated under section 84.0835.

(b) The fee for an annual pass is $20. The pass is valid from January 1 through
December 31. The fee for a three-year pass is $30.
The commissioner of natural resources
shall issue a pass upon application and payment of the fee. Fees collected under this
section, except for the issuing fee for licensing agents, shall be deposited in the state
treasury and credited to the off-road vehicle account in the natural resources fund and,
except for the electronic licensing system commission established by the commissioner
under section 84.027, subdivision 15, must be used for grants-in-aid to counties and
municipalities for off-road vehicle organizations to construct and maintain off-road
vehicle trails and use areas.

(c) A nonresident An off-road vehicle state trail pass is not required for:

(1) an off-road vehicle that is owned and used by the United States, another state,
or a political subdivision thereof that is exempt from registration under section 84.798,
subdivision 2;

(2) a person operating an off-road vehicle only on the portion of a trail that is owned
by the person or the person's spouse, child, or parent; or

(3) a nonresident person operating an off-road vehicle that is registered according
to section 84.798.

(d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The
nonresident pass is valid from January 1 through December 31. The fee for a nonresident
three-year pass is $30.

(e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is
valid for 30 consecutive days after the date of issuance.

Subd. 2.

License agents.

The commissioner may appoint agents to issue and
sell nonresident off-road vehicle state trail passes. The commissioner may revoke the
appointment of an agent at any time. The commissioner may adopt additional rules as
provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
by the commissioner for accounting and handling of passes pursuant to section 97A.485,
subdivision 11
. An agent shall promptly deposit and remit all money received from the
sale of the passes, exclusive of the issuing fee, to the commissioner.

Subd. 3.

Issuance of passes.

The commissioner and agents shall issue and sell
nonresident off-road vehicle state trail passes. The commissioner shall also make the
passes available through the electronic licensing system established under section 84.027,
subdivision 15.

Subd. 4.

Agent's fee.

In addition to the fee for a pass, an issuing fee of $1 per pass
shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
passes issued by the commissioner shall be deposited in the off-road vehicle account in the
natural resources fund and retained for the operation of the electronic licensing system.

Subd. 5.

Duplicate passes.

The commissioner and agents shall issue a duplicate
pass to persons whose pass is lost or destroyed using the process established under section
97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 13.

Minnesota Statutes 2014, section 84D.01, subdivision 2, is amended to read:


Subd. 2.

Aquatic macrophyte.

"Aquatic macrophyte" means macro algae or a
macroscopic nonwoody plant, either a submerged, floating leafed, floating, or emergent
plant that naturally grows in water.

Sec. 14.

Minnesota Statutes 2014, section 84D.05, subdivision 1, is amended to read:


Subdivision 1.

Prohibited activities.

A person may not possess, import, purchase,
sell, propagate, transport, or introduce a prohibited invasive species, except:

(1) under a permit issued by the commissioner under section 84D.11;

(2) in the case of purple loosestrife, as provided by sections 18.75 to 18.88;

(3) under a restricted species permit issued under section 17.457;

(4) when being transported to the department, or another destination as the
commissioner may direct, in a sealed container for purposes of identifying the species
or reporting the presence of the species;

(5) when being transported for disposal as part of a harvest or control activity
when specifically authorized under a permit issued by the commissioner according to
section 103G.615, when being transported for disposal as specified under a commercial
fishing license issued by the commissioner according to section 97A.418, 97C.801,
97C.811, 97C.825, 97C.831, or 97C.835, or when being transported as specified by the
commissioner;

(6) when the specimen has been lawfully acquired dead and, in the case of plant
species, all seeds are removed or are otherwise secured in a sealed container;

(7) in the form of herbaria or other preserved specimens;

(8) (6) when being removed from watercraft and equipment, or caught while angling,
and immediately returned to the water from which they came; or

(9) (7) as the commissioner may otherwise prescribe by rule.

Sec. 15.

[84D.075] NONNATIVE SPECIES, AQUATIC PLANTS, AND
AQUATIC MACROPHYTES; PARTS AND LIFE STAGE.

A law relating to a nonnative species, aquatic plant, or aquatic macrophyte applies in
the same manner to a part of a nonnative species, aquatic plant, or aquatic macrophyte,
whether alive or dead, and to any life stage or form.

Sec. 16.

Minnesota Statutes 2014, section 84D.09, subdivision 2, is amended to read:


Subd. 2.

Exceptions.

Unless otherwise prohibited by law, a person may transport
aquatic macrophytes:

(1) that are duckweeds in the family Lemnaceae;

(2) for purposes of constructing shooting or observation blinds in amounts sufficient
for that purpose, provided that the aquatic macrophytes are emergent and cut above the
waterline;

(3) when legally purchased or traded by or from commercial or hobbyist sources for
aquarium, wetland or lakeshore restoration, or ornamental purposes;

(4) when harvested for personal or commercial use if in a motor vehicle;

(5) to the department, or another destination as the commissioner may direct, in a
sealed container for purposes of identifying a species or reporting the presence of a species;

(6) that are wild rice harvested under section 84.091;

(7) in the form of fragments of emergent aquatic macrophytes incidentally transported
in or on watercraft or decoys used for waterfowl hunting during the waterfowl season; or

(8) when removing water-related equipment from waters of the state for purposes of
cleaning off aquatic macrophytes before leaving a water access site.; or

(9) when being transported from riparian property to a legal disposal site that is at
least 100 feet from any surface water, ditch, or seasonally flooded land, provided the
aquatic macrophytes are in a covered commercial vehicle specifically designed and used
for hauling trash.

Sec. 17.

Minnesota Statutes 2014, section 84D.10, subdivision 4, is amended to read:


Subd. 4.

Persons transporting water-related equipment.

(a) When leaving
waters a water of the state, a person must drain water-related equipment holding water
and live wells and bilges by removing the drain plug before transporting the water-related
equipment off the water access site or riparian property. For the purposes of this
paragraph, "transporting" includes moving water-related equipment over land between
connected or unconnected water bodies, but does not include moving water-related
equipment within the immediate area required for loading and preparing the water-related
equipment for transport over land.

(b) Drain plugs, bailers, valves, or other devices used to control the draining of water
from ballast tanks, bilges, and live wells must be removed or opened while transporting
water-related equipment.

(c) Emergency response vehicles and equipment may be transported on a public road
with the drain plug or other similar device replaced only after all water has been drained
from the equipment upon leaving the water body.

(d) Portable bait containers used by licensed aquatic farms, portable bait containers
when fishing through the ice except on waters listed infested for viral hemorrhagic
septicemia, and marine sanitary systems are exempt from this subdivision.

(e) A person must not dispose of bait in waters of the state.

(f) A boat lift, dock, swim raft, or associated equipment that has been removed
from any water body may not be placed in another water body until a minimum of 21
days have passed.

(g) A person who transports water that is appropriated from noninfested surface
water bodies and that is transported by a commercial vehicle, excluding watercraft, or
commercial trailer, which vehicle or trailer is specifically designed and used for water
hauling, is exempt from paragraphs (a) and (b), provided that the person does not discharge
the transported water to other surface waters or within 100 feet of a surface water body.

(h) A person transporting water from noninfested surface water bodies for
firefighting or emergencies that threaten human safety or property is exempt from
paragraphs (a) and (b).

Sec. 18.

Minnesota Statutes 2014, section 84D.108, is amended by adding a
subdivision to read:


Subd. 2a.

Lake Minnetonka pilot study.

(a) The commissioner may issue an
additional permit to service providers to return to Lake Minnetonka water-related
equipment with zebra mussels attached after the equipment has been seasonally
stored, serviced, or repaired. The permit must include verification and documentation
requirements and any other conditions the commissioner deems necessary.

(b) Water-related equipment with zebra mussels attached may be returned only
to Lake Minnetonka (DNR Division of Waters number 27-0133) by service providers
permitted under subdivision 1.

(c) The service provider's place of business must be within the Lake Minnetonka
Conservation District as established according to sections 103B.601 to 103B.645.

(d) A service provider applying for a permit under this subdivision must, if approved
for a permit and before the permit is valid, furnish a corporate surety bond in favor of the
state for $50,000 payable upon violation of this chapter.

(e) This subdivision expires December 1, 2018.

Sec. 19.

Minnesota Statutes 2015 Supplement, section 84D.11, subdivision 1, is
amended to read:


Subdivision 1.

Prohibited invasive species.

(a) The commissioner may issue a
permit for the propagation, possession, importation, purchase, or transport of a prohibited
invasive species for the purposes of disposal, decontamination, control, research, or
education.

(b) The commissioner may issue a permit as provided under section 84D.108,
subdivision 2a, to a service provider to allow water-related equipment to be placed back
into the same body of water after being seasonally stored, serviced, or repaired by the
service provider. This paragraph expires December 1, 2018.

Sec. 20.

Minnesota Statutes 2014, section 84D.13, subdivision 4, is amended to read:


Subd. 4.

Warnings; civil citations.

After appropriate training, conservation
officers, other licensed peace officers, and other department personnel designated by the
commissioner may issue warnings or citations to a person who:

(1) unlawfully transports prohibited invasive species or aquatic macrophytes;

(2) unlawfully places or attempts to place into waters of the state water-related
equipment that has aquatic macrophytes or prohibited invasive species attached;

(3) intentionally damages, moves, removes, or sinks a buoy marking, as prescribed
by rule, Eurasian watermilfoil;

(4) fails to remove plugs, open valves, and drain water from water-related equipment
before leaving waters of the state or when transporting water-related equipment as
provided in section 84D.10, subdivision 4; or

(5) transports infested water, in violation of rule, off riparian property.;

(6) fails to comply with a decontamination order when a decontamination unit
is available on site;

(7) fails to complete decontamination of water-related equipment or to remove
invasive species from water-related equipment by the date specified on a tagging notice
and order; or

(8) fails to complete the aquatic invasive species offender training course required
under section 86B.13.

Sec. 21.

Minnesota Statutes 2015 Supplement, section 84D.13, subdivision 5, is
amended to read:


Subd. 5.

Civil penalties.

(a) A civil citation issued under this section must impose
the following penalty amounts:

(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;

(2) for placing or attempting to place into waters of the state water-related equipment
that has aquatic macrophytes attached, $200;

(3) for unlawfully possessing or transporting a prohibited invasive species other
than an aquatic macrophyte, $500;

(4) for placing or attempting to place into waters of the state water-related equipment
that has prohibited invasive species attached when the waters are not listed by the
commissioner as being infested with that invasive species, $500;

(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as
prescribed by rule, Eurasian watermilfoil, $100;

(6) for failing to have drain plugs or similar devices removed or opened while
transporting water-related equipment or for failing to remove plugs, open valves, and
drain water from water-related equipment, other than marine sanitary systems, before
leaving waters of the state, $100;

(7) for transporting infested water off riparian property without a permit as required
by rule, $200; and

(8) for failing to have aquatic invasive species affirmation displayed or available for
inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25.;

(9) for failing to comply with a decontamination order when a decontamination unit
is available on site, $250;

(10) for failing to complete decontamination of water-related equipment or to
remove invasive species from water-related equipment by the date specified on a tagging
notice and order, $250; and

(11) for failing to complete the aquatic invasive species offender training course
required under section 86B.13, $25.

(b) A civil citation that is issued to a person who has one or more prior convictions
or final orders for violations of this chapter is subject to twice the penalty amounts listed
in paragraph (a).

Sec. 22.

Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:


Subd. 13.

Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
Koochiching, and Itasca Counties.

(a)(1) The Taconite Trail shall originate at Ely in St.
Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
Itasca County and there terminate;

(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
Marais in Cook County, thence northeasterly to the international boundary in the vicinity
of the north shore of Lake Superior, and there terminate;

(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
Louis County to International Falls in Koochiching County, and there terminate
the David
Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and
extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with
the Taconite Trail west of Tower; then the David Dill/Taconite Trail continues easterly
to Ely in St. Louis County; then the David Dill/Tomahawk Trail extends southeasterly,
outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and
there terminates at the intersection with the C. J. Ramstad/Northshore Trail
; and

(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and
extend southerly to Chengwatana State Forest in Pine County.

(b) The trails shall be developed primarily for riding and hiking.

(c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
any land or interest in land by eminent domain the commissioner of administration shall
obtain the approval of the governor. The governor shall consult with the Legislative
Advisory Commission before granting approval. Recommendations of the Legislative
Advisory Commission shall be advisory only. Failure or refusal of the commission to
make a recommendation shall be deemed a negative recommendation.

Sec. 23.

Minnesota Statutes 2014, section 86B.005, is amended by adding a
subdivision to read:


Subd. 4a.

Enclosed accommodation compartment.

"Enclosed accommodation
compartment" means one contiguous space, surrounded by boat structure that contains
all of the following:

(1) designated sleeping accommodations;

(2) a galley area with sink; and

(3) a head compartment.

Sec. 24.

Minnesota Statutes 2014, section 86B.005, is amended by adding a
subdivision to read:


Subd. 4b.

Enclosed occupancy compartment.

"Enclosed occupancy compartment"
means one contiguous enclosed space surrounded by boat structure that may be occupied
by a person.

Sec. 25.

Minnesota Statutes 2014, section 86B.005, is amended by adding a
subdivision to read:


Subd. 8a.

Marine carbon monoxide detection system.

"Marine carbon monoxide
detection system" means a device or system that meets the requirements of the American
Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems.

Sec. 26.

[86B.532] CARBON MONOXIDE DETECTION DEVICE
REQUIREMENTS.

Subdivision 1.

Requirements.

(a) No motorboat that has an enclosed
accommodation compartment may be operated on any waters of the state unless the
motorboat is equipped with a functioning marine carbon monoxide detection system
installed according to the manufacturer's instructions.

(b) After the effective date of this section, no new motorboat that has an enclosed
accommodation compartment may be sold or offered for sale in Minnesota unless the
motorboat is equipped with a new functioning marine carbon monoxide detection system
installed according to the manufacturer's instructions.

Subd. 2.

Boating safety courses.

All state-sponsored boating safety courses and all
boating safety courses that require state approval by the commissioner must incorporate
information about the dangers of being overcome by carbon monoxide poisoning while on
or behind a motorboat and how to prevent that poisoning.

Subd. 3.

Carbon monoxide poisoning warning labels.

(a) No gasoline-powered
motorboat that has an enclosed occupancy compartment may be operated on any waters
of the state unless labels warning of carbon monoxide dangers are affixed in the vicinity
of: the aft reboarding/stern area, the steering station, and in or at the entrance to any
enclosed occupancy compartment.

(b) For a motorboat sold by a dealer, the dealer must ensure that specified warning
labels have been affixed before completion of the transaction.

(c) Warning labels approved by the American Boat and Yacht Council, National
Marine Manufacturers Association, or the commissioner satisfy the requirements of this
section when installed as specified.

Subd. 4.

License agents; distribution.

The commissioner shall mail the
information and labels to all owners of motorboats that are 19 feet and greater in length
the first year. The commissioner must also provide license agents with informational
brochures and warning labels about the dangers of carbon monoxide poisoning while
boating. A license agent must make the brochure and labels available to motorboat owners
and make efforts to inform new owners of the requirement. The commissioner shall
highlight the new requirements on the watercraft renewal reminder postcard for three
consecutive three-year license cycles and in the Minnesota Boating Guide. The brochure
must instruct motorboat owners to place the labels according to subdivision 3, and inform
motorboat owners of carbon monoxide dangers of gasoline-powered generators.

Subd. 5.

Safety warning.

A first violation of this section shall not result in a
penalty, but is punishable only by a safety warning. A second or subsequent violation
is a petty misdemeanor.

EFFECTIVE DATE.

This section is effective May 1, 2017.

Sec. 27.

[86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT.

Subdivision 1.

Titled as transfer-on-death.

A natural person who is the owner of a
watercraft may have the watercraft titled in transfer-on-death or TOD form by including in
the application for the certificate of title a designation of a beneficiary or beneficiaries to
whom the watercraft must be transferred on death of the owner or the last survivor of joint
owners with rights of survivorship, subject to the rights of secured parties.

Subd. 2.

Designation of beneficiary.

A watercraft is registered in transfer-on-death
form by designating on the certificate of title the name of the owner and the names
of joint owners with identification of rights of survivorship, followed by the words
"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may
be used instead of "transfer-on-death." A title in transfer-on-death form is not required
to be supported by consideration, and the certificate of title in which the designation
is made is not required to be delivered to the beneficiary or beneficiaries in order for
the designation to be effective.

Subd. 3.

Interest of beneficiary.

The transfer-on-death beneficiary or beneficiaries
have no interest in the watercraft until the death of the owner or the last survivor of joint
owners with rights of survivorship. A beneficiary designation may be changed at any time
by the owner or by all joint owners with rights of survivorship, without the consent of the
beneficiary or beneficiaries, by filing an application for a new certificate of title.

Subd. 4.

Vesting of ownership in beneficiary.

Ownership of a watercraft titled in
transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
the owner or the last of the joint owners with rights of survivorship, subject to the rights of
secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
may apply for a new certificate of title to the watercraft upon submitting a certified death
record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries
survive the owner of a watercraft, the watercraft must be included in the probate estate
of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or
beneficiaries is not a testamentary transfer.

Subd. 5.

Rights of creditors.

(a) This section does not limit the rights of any
secured party or creditor of the owner of a watercraft against a transfer-on-death
beneficiary or beneficiaries.

(b) The state or a county agency with a claim or lien authorized by section 246.53,
256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim
or lien under those sections continues to apply against the designated beneficiary or
beneficiaries after the transfer under this section if other assets of the deceased owner's
estate are insufficient to pay the amount of the claim. The claim or lien continues to apply
to the watercraft until the designated beneficiary sells or transfers it to a person against
whom the claim or lien does not apply and who did not have actual notice or knowledge
of the claim or lien.

Sec. 28.

Minnesota Statutes 2014, section 88.01, is amended by adding a subdivision
to read:


Subd. 28.

Prescribed burn.

"Prescribed burn" means a fire that is intentionally
ignited, managed, and controlled by an entity meeting certification requirements established
by the commissioner for the purpose of managing vegetation. A prescribed burn that has
exceeded its prescribed boundaries and requires suppression action is considered a wildfire.

Sec. 29.

Minnesota Statutes 2014, section 88.22, subdivision 1, is amended to read:


Subdivision 1.

Imposition of restrictions.

(a) Road closure. When the
commissioner of natural resources shall determine that conditions conducive to wildfire
hazards exist in the wildfire areas of the state and that the presence of persons in the
wildlife areas tends to aggravate wildfire hazards, render forest trails impassable by
driving thereon during wet seasons and hampers the effective enforcement of state timber
trespass and game laws, the commissioner may by written order, close any road or trail
leading into any land used for any conservation purposes, to all modes of travel except
that considered essential such as residents traveling to and from their homes or in other
cases to be determined by the authorized forest officers assigned to guard the area.

(b) Burning ban. The commissioner may also, upon such determination, by written
order, suspend the issuance of permits for open fires or prescribed burns, revoke or suspend
the operation of a permit previously issued and, to the extent the commissioner deems
necessary, prohibit the building of all or some kinds of open fires or prescribed burns in all
or any part of a wildfire area regardless of whether a permit is otherwise required; and the
commissioner also may, by written order, prohibit smoking except at places of habitation
or automobiles or other enclosed vehicles properly equipped with an efficient ash tray.

Sec. 30.

Minnesota Statutes 2014, section 89.0385, is amended to read:


89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
CERTIFICATION.

(a) The commissioner shall certify the total costs incurred for forest management,
forest improvement, and road improvement on state-managed lands during each fiscal
year. The commissioner shall distribute forest management receipts credited to various
accounts according to this section.

(b) The amount of the certified costs incurred for forest management activities on
state lands shall be transferred from the account where receipts are deposited to the forest
management investment account in the natural resources fund, except for those costs
certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
revenue reports, throughout the fiscal year, with final certification and reconciliation after
each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

(c) The amount of the certified costs incurred for forest management activities
on nonstate lands managed under a good neighbor or joint powers agreement must be
transferred from the account where receipts are deposited to the forest management
investment account in the natural resources fund. Transfers for costs incurred may occur
after projects or timber permits are finalized.

Sec. 31.

Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:


Subd. 3.

Expiration.

The committee expires June 30, 2016 2026.

Sec. 32.

Minnesota Statutes 2014, section 93.2236, is amended to read:


93.2236 MINERALS MANAGEMENT ACCOUNT.

(a) The minerals management account is created as an account in the natural
resources fund. Interest earned on money in the account accrues to the account. Money in
the account may be spent or distributed only as provided in paragraphs (b) and (c).

(b) If the balance in the minerals management account exceeds $3,000,000 on March
31,
June 30, September 30, or December 31, the amount exceeding $3,000,000 must
be distributed to the permanent school fund, the permanent university fund, and taxing
districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed
to each fund must be in the same proportion as the total mineral lease revenue received
in the previous biennium from school trust lands, university lands, and lands held by the
state in trust for taxing districts.

(c) Subject to appropriation by the legislature, money in the minerals management
account may be spent by the commissioner of natural resources for mineral resource
management and projects to enhance future mineral income and promote new mineral
resource opportunities.

Sec. 33.

Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:


Subd. 2.

Classes of land; definitions.

(a) The classes of public land that may be
involved in an expedited exchange under this section are:

(1) Class 1 land, which for the purpose of this section is Class A land as defined in
section 94.342, subdivision 1, except for:;

(i) school trust land as defined in section 92.025; and

(ii) university land granted to the state by acts of Congress;

(2) Class 2 land, which for the purpose of this section is Class B land as defined in
section 94.342, subdivision 2; and

(3) Class 3 land, which for the purpose of this section is all land owned in fee by
a governmental subdivision of the state.

(b) "School trust land" has the meaning given in section 92.025.

(c) "University land" means land granted to the state by acts of Congress for
university purposes.

Sec. 34.

Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:


Subd. 3.

Valuation of land.

(a) In an exchange of Class 1 land for Class 2 or 3 land,
the value of all the land shall be determined by the commissioner of natural resources,
but the county board must approve the value determined for the Class 2 land, and the
governmental subdivision of the state must approve the value determined for the Class 3
land
. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be
determined by the county board of the county in which the land lies, but the governmental
subdivision of the state must approve the value determined for the Class 3 land
.

(b) To determine the value of the land, the parties to the exchange may either (1)
cause the land to be appraised, utilize the valuation process provided under section
84.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker
or
(2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most
current township or county assessment schedules for similar land types from the county
assessor of the county in which the lands are located
. Merchantable timber value must
should be determined and considered in finalizing valuation of the lands.

(b) All (c) Except for school trust lands and university lands, the lands exchanged
under this section shall be exchanged only for lands of at least substantially equal value.
For the purposes of this subdivision, "substantially equal value" has the meaning given
under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the
lands, other than school trust lands or university lands, are of substantially equal value but
are not of the same value.

(d) School trust lands and university lands exchanged under this section must be
exchanged only for lands of equal or greater value.

Sec. 35.

Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:


Subd. 7.

Reversionary interest; Mineral and water power rights and other
reservations.

(a) All deeds conveying land given in an expedited land exchange under
this section shall include a reverter that provides that title to the land automatically reverts
to the conveying governmental unit if:

(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
the land within 40 years of the date of the deed conveying ownership; and

(2) there is no prior written approval for the transfer from the conveying
governmental unit. The authority for granting approval is the commissioner of natural
resources for former Class 1 land, the county board for former Class 2 land, and the
governing body for former Class 3 land.

(b) Class 1 land given in exchange is subject to the reservation provisions of section
94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation
provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

Sec. 36.

Minnesota Statutes 2014, section 97A.075, subdivision 7, is amended to read:


Subd. 7.

Wolf licenses; account established.

(a) For purposes of this subdivision,
"wolf license" means a license or permit issued under section 97A.475, subdivision 2,
clause (20); 3, paragraph (a), clause (16); or 20, paragraph (b).

(b) A wolf management and monitoring account is created in the game and fish fund.
Revenue from wolf licenses must be credited to the wolf management and monitoring
account and is appropriated to the commissioner only for wolf management, research,
damage control, enforcement, and education. Notwithstanding any other law to the
contrary, money credited to the account may not be used to pay indirect costs or agency
shared services.

Sec. 37.

Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:


Subd. 2.

Personal possession.

(a) A person acting under a license or traveling from
an area where a licensed activity was performed must have in personal possession either:
(1) the proper license, if the license has been issued to and received by the person; (2) a
driver's license or Minnesota identification card that bears a valid designation of the proper
lifetime license, as provided under section 171.07, subdivision 19;
or (2) (3) the proper
license identification number or stamp validation, if the license has been sold to the person
by electronic means but the actual license has not been issued and received.

(b) If possession of a license or a license identification number is required, a person
must exhibit, as requested by a conservation officer or peace officer, either: (1) the
proper license if the license has been issued to and received by the person; (2) a driver's
license or Minnesota identification card that bears a valid designation of the proper
lifetime license, as provided under section 171.07, subdivision 19;
or (2) (3) the proper
license identification number or stamp validation and a valid state driver's license, state
identification card, or other form of identification provided by the commissioner, if the
license has been sold to the person by electronic means but the actual license has not been
issued and received. A person charged with violating the license possession requirement
shall not be convicted if the person produces in court or the office of the arresting officer,
the actual license previously issued to that person, which was valid at the time of arrest,
or satisfactory proof that at the time of the arrest the person was validly licensed. Upon
request of a conservation officer or peace officer, a licensee shall write the licensee's name
in the presence of the officer to determine the identity of the licensee.

(c) Except as provided in paragraph (a), clause (2), if the actual license has been
issued and received, a receipt for license fees, a copy of a license, or evidence showing the
issuance of a license, including the license identification number or stamp validation, does
not entitle a licensee to exercise the rights or privileges conferred by a license.

(d) A license issued electronically and not immediately provided to the licensee shall
be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory
waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee
after purchase of a stamp validation only if the licensee pays an additional fee that covers
the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be
purchased for a fee that covers the costs of producing and mailing the pictorial stamp.
Notwithstanding section 16A.1283, the commissioner may, by written order published in
the State Register, establish fees for providing the pictorial stamps. The fees must be set in
an amount that does not recover significantly more or less than the cost of producing and
mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14,
and section 14.386 does not apply.

EFFECTIVE DATE.

This section is effective January 1, 2018, or on the date
the Department of Public Safety implements the Minnesota Licensing and Registration
System (MNLARS), whichever occurs first.

Sec. 38.

Minnesota Statutes 2014, section 97A.465, is amended by adding a
subdivision to read:


Subd. 8.

Nonresident active members of National Guard.

A nonresident that is
an active member of the state's National Guard may obtain a resident license to take fish or
game. This subdivision does not apply to the taking of moose or elk.

Sec. 39.

Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision
to read:


Subd. 19.

Resident lifetime game and fish license.

(a) The department shall
maintain in its records information transmitted electronically from the commissioner of
natural resources identifying each person to whom the commissioner has issued a resident
lifetime license under section 97A.473. The records transmitted from the Department of
Natural Resources must contain:

(1) the full name and date of birth as required for the driver's license or identification
card;

(2) the person's driver's license or identification card number;

(3) the category of lifetime license issued under section 97A.473; and

(4) the Department of Natural Resources customer identification number.

(b) The department may delete records described in paragraph (a) if they have not
been matched to a driver's license or identification card record within seven years after
transmission to the department.

(c) Except as provided in paragraph (b), the department shall include, on all drivers'
licenses or Minnesota identification cards issued to a person who holds a lifetime license,
a graphic or written designation of the lifetime license, and the category of the lifetime
license.

(d) If a person with a lifetime license under section 97A.473 applies for a driver's
license or Minnesota identification card before that information has been transmitted to the
department, the department may accept a copy of the license issued under section 97A.473
as proof of its issuance and shall then follow the procedures in paragraph (c).

EFFECTIVE DATE.

This section is effective January 1, 2018, or on the date
the Department of Public Safety implements the Minnesota Licensing and Registration
System (MNLARS), whichever occurs first.

Sec. 40.

Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by
Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:


Subd. 5.

Fish and Wildlife
Management

-0-
2,412,000

$3,000 in 2015 is from the heritage
enhancement account in the game and fish
fund for a report on aquatic plant management
permitting policies for the management
of narrow-leaved and hybrid cattail in a
range of basin types across the state. The
report shall be submitted to the chairs and
ranking minority members of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources by December 15, 2014, and include
recommendations for any necessary changes
in statutes, rules, or permitting procedures.
This is a onetime appropriation.

$9,000 in 2015 is from the game and fish
fund for the commissioner, in consultation
with interested parties, agencies, and other
states, to develop a detailed restoration plan
to recover the historical native population of
bobwhite quail in Minnesota for its ecological
and recreational benefits to the citizens of the
state. The commissioner shall conduct public
meetings in developing the plan. No later
than January 15, 2015, the commissioner
must report on the plan's progress to the
legislative committees with jurisdiction over
environment and natural resources policy
and finance. This is a onetime appropriation.

$2,000,000 in 2015 is from the game and
fish fund for shooting sports facility grants
under Minnesota Statutes, section 87A.10.
The commissioner may spend up to $50,000
of this appropriation to administer the grant.
This is a onetime appropriation and is
available until June 30, 2017.

$400,000 in 2015 is from the heritage
enhancement account in the game and fish
fund for hunter and angler recruitment
and retention activities and grants to local
chapters of Let's Go Fishing of Minnesota
to provide community outreach to senior
citizens, youth, and veterans and for the costs
associated with establishing and recruiting
new chapters. The grants must be matched
with cash or in-kind contributions from
nonstate sources. Of this amount, $25,000
is for Asian Outdoor Heritage for youth
fishing recruitment efforts and outreach in
the metropolitan area. The commissioner
shall establish a grant application process
that includes a standard for ownership
of equipment purchased under the grant
program and contract requirements that
cover the disposition of purchased equipment
if the grantee no longer exists. Any
equipment purchased with state grant money
must be specified on the grant application
and approved by the commissioner. The
commissioner may spend up to three percent
of the appropriation to administer the grant.
This is a onetime appropriation and is
available until June 30, 2016 2017.

Sec. 41.

Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 2,
is amended to read:


Subd. 2.

Land and Mineral Resources
Management

6,461,000
5,521,000
Appropriations by Fund
2016
2017
General
1,585,000
1,585,000
Natural Resources
3,332,000
3,392,000
Game and Fish
344,000
344,000
Remediation
1,000,000
-0-
Permanent School
200,000
200,000

$68,000 the first year and $68,000 the
second year are for minerals cooperative
environmental research, of which $34,000
the first year and $34,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind
.

$251,000 the first year and $251,000 the
second year are for iron ore cooperative
research. Of this amount, $200,000 each year
is from the minerals management account
in the natural resources fund. $175,000 the
first year and $175,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The match
may be cash or in-kind.
Any unencumbered
balance from the first year does not cancel
and is available in the second year.

$2,755,000 the first year and $2,815,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
Statutes, section 93.2236, paragraph (c),
for mineral resource management, projects
to enhance future mineral income, and
projects to promote new mineral resource
opportunities.

$200,000 the first year and $200,000 the
second year are from the state forest suspense
account in the permanent school fund to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
long-term economic return from the
school trust lands consistent with fiduciary
responsibilities and sound natural resources
conservation and management principles.

Notwithstanding Minnesota Statutes, section
115B.20, $1,000,000 the first year is from
the dedicated account within the remediation
fund for the purposes of Minnesota Statutes,
section 115B.20, subdivision 2, clause (4),
to acquire salt lands as described under
Minnesota Statutes, section 92.05, within
Bear Head Lake State Park. This is a onetime
appropriation and is available until June 30,
2018.

Sec. 42.

Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5,
is amended to read:


Subd. 5.

Parks and Trails Management

74,064,000
73,650,000
Appropriations by Fund
2016
2017
General
24,967,000
24,427,000
Natural Resources
46,831,000
46,950,000
Game and Fish
2,266,000
2,273,000

$1,075,000 the first year and $1,075,000 the
second year are from the water recreation
account in the natural resources fund for
enhancing public water access facilities.

$5,740,000 the first year and $5,740,000 the
second year are from the natural resources
fund for state trail, park, and recreation area
operations. This appropriation is from the
revenue deposited in the natural resources
fund under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).

$1,005,000 the first year and $1,005,000 the
second year are from the natural resources
fund for park and trail grants to local units of
government on land to be maintained for at
least 20 years for the purposes of the grants.
This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (4). Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year. Up
to 2.5 percent of this appropriation may be
used to administer the grants.

$8,424,000 the first year and $8,424,000
the second year are from the snowmobile
trails and enforcement account in the
natural resources fund for the snowmobile
grants-in-aid program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

$1,360,000 the first year and $1,360,000
the second year are from the natural
resources fund for the off-highway vehicle
grants-in-aid program. Of this amount,
$1,210,000 each year is from the all-terrain
vehicle account; and $150,000 each year is
from the off-highway motorcycle account.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$75,000 the first year and $75,000 the second
year are from the cross-country ski account
in the natural resources fund for grooming
and maintaining cross-country ski trails in
state parks, trails, and recreation areas.

$250,000 the first year and $250,000 the
second year are from the state land and
water conservation account (LAWCON)
in the natural resources fund for priorities
established by the commissioner for eligible
state projects and administrative and
planning activities consistent with Minnesota
Statutes, section 84.0264, and the federal
Land and Water Conservation Fund Act.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$968,000 the first year and $968,000 the
second year are from the off-road vehicle
account in the natural resources fund. Of
this amount, $568,000 each year is for parks
and trails management for off-road vehicle
purposes; $325,000 each year is for the
off-road vehicle grant in aid program; and
$75,000 each year is for a new full-time
employee position or contract in northern
Minnesota to work in conjunction with the
Minnesota Four-Wheel Drive Association
to address off-road vehicle touring routes
and other issues related to off-road vehicle
activities. Of this appropriation, the $325,000
each year is onetime.

$65,000 the first year is from the water
recreation account in the natural resources
fund to cooperate with local units of
government in marking routes and
designating river accesses and campsites
under Minnesota Statutes, section 85.32.
This is a onetime appropriation and is
available until June 30, 2019.

$190,000 the first year is for a grant to the
city of Virginia for the additional cost of
supporting a trail due to the rerouting of
U.S. Highway No. 53. This is a onetime
appropriation and is available until June 30,
2019.

$50,000 the first year is for development of
a master plan for the Mississippi Blufflands
Trail, including work on possible extensions
or connections to other state or regional
trails. This is a onetime appropriation that is
available until June 30, 2017.

$61,000 from the natural resources fund the
first year is for a grant to the city of East
Grand Forks for payment under a reciprocity
agreement for the Red River State Recreation
Area.

$500,000 the first year is for restoration or
replacement of a historic trestle bridge in
Blackduck. This is a onetime appropriation
and is available until June 30, 2019.

The base for parks and trails operations in
the natural resources fund in fiscal year 2018
and thereafter is $46,450,000.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 43.

Laws 2015, First Special Session chapter 4, article 4, section 131, is amended
to read:


Sec. 131. SURPLUS STATE LAND SALES.

The school trust lands director shall identify, in consultation with the commissioner
of natural resources, at least $5,000,000 in state-owned lands suitable for sale or exchange
with school trust lands
. The lands identified shall not be within a unit of the outdoor
recreation system under Minnesota Statutes, section 86A.05, an administrative site, or
trust land. The commissioner shall sell or exchange at least $3,000,000 worth of lands
identified under this section by June 30, 2017. Land exchanged under this section may
be exchanged in accordance with Minnesota Statutes, section 94.3495. The value of
the surplus land exchanged shall serve as compensation to the permanent school fund
as provided under Minnesota Statutes, section 84.027, subdivision 18, paragraph (b).
Notwithstanding the restrictions on sale of riparian land and the public sale provisions
under Minnesota Statutes, sections 92.45, 94.09, and 94.10, the commissioner may
offer the surplus land, including land bordering public water, for public or private sale.
Notwithstanding Minnesota Statutes, section 94.16, subdivision 3, or any other law to the
contrary, the amount an amount equal to 90 percent of the proceeds from the sale of lands
that exceeds the actual expenses of selling the lands must be deposited in the school trust
lands account and used to extinguish the school trust interest as provided under Minnesota
Statutes, section 92.83, on school trust lands that have public water access sites or old
growth forests located on them. Notwithstanding Minnesota Statutes, section 92.83, the
remaining ten percent of the proceeds must be used to fund transactional and legal work
associated with the Boundary Waters Canoe Area Wilderness land exchange and sale
projects under Minnesota Statutes, sections 92.80 and 92.82.

Sec. 44. COLD SPRING WATER APPROPRIATION PERMITS; REPORT.

(a) The commissioner of natural resources shall amend the city of Cold Spring's
water appropriation permit to allow an increase in the city's water withdrawal of 100
million gallons per year from city wells 4, 5, and 6, provided a combined reduction of
ten million gallons per year is made from city well 3 or water appropriations under any
permits held by brewing companies in the Cold Spring Creek area. The city and any other
permit holder with permit modifications made under this section must comply with all
existing reporting requirements and demonstrate that increased pumping does not result in
violations of the Safe Drinking Water Act. The increases under this section are available
on an interim basis, not to exceed five years, to allow the city to establish a long-term
water supply solution for the city and area businesses.

(b) The commissioner must conduct necessary monitoring of stream flow and water
levels and develop a groundwater model to determine the amount of water that can be
sustainably pumped in the area of Cold Spring Creek for area businesses, agriculture, and
city needs. Beginning July 1, 2017, the commissioner must submit an annual progress
report to the chairs and ranking minority members of the house of representatives and
senate committees and divisions with jurisdiction over environment and natural resources.
The commissioner must submit a final report by January 15, 2022.

Sec. 45. MARINE CARBON MONOXIDE DETECTORS; REPORT.

The commissioner of natural resources shall submit a report to the legislature
by November 1, 2017. The report must outline any issues encountered relating
to implementation of Minnesota Statutes, section 86B.532, any changes to marine
manufacturing industry standards relating to carbon monoxide, the availability of plug-in
or battery-powered marine certified carbon monoxide detectors, and best practices in
preventing carbon monoxide poisoning relating to motorboat operation, including the
feasibility of requiring carbon monoxide detectors that are more sensitive in measuring
carbon monoxide than required in this act.

Sec. 46. PRESCRIBED BURN REQUIREMENTS; REPORT.

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

Sec. 47. SAND DUNES STATE FOREST; REPORT.

(a) Until July 1, 2017, the commissioner of natural resources shall not log, enter into
a logging contract, or otherwise remove trees for purposes of creating oak savanna in the
Sand Dunes State Forest. This paragraph does not prohibit work done under contracts
entered into before the effective date of this section or work on school trust lands.

(b) By January 15, 2017, the commissioner must submit a report, prepared by
the Division of Forestry, to the chairs and ranking minority members of the house of
representatives and senate committees and divisions with jurisdiction over environment
and natural resources with the Division of Forestry's progress on collaborating with local
citizens and other stakeholders over the past year when making decisions that impact
the landscape, including forest conversions and other clear-cutting activities, and the
division's progress on other citizen engagement activities.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 48. LAKE SERVICE PROVIDER FEASIBILITY REPORT.

The commissioner of natural resources shall report to the chairs of the house of
representatives and senate committees with jurisdiction over natural resources by January
15, 2019, regarding the feasibility of expanding permitting to service providers as
described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in
the state. The report must:

(1) include recommendations for state and local resources needed to implement the
program;

(2) assess local government inspection roles under Minnesota Statutes, section
84D.105, subdivision 2, paragraph (g); and

(3) assess whether mechanisms to ensure that water-related equipment placed back
into the same body of water from which it was removed can adequately protect other
water bodies.

Sec. 49. WORKERS' COMPENSATION FOR VOLUNTEERS; REPORT.

By January 15, 2017, the commissioner of natural resources, in coordination with
the commissioner of labor and industry and the Workers' Compensation Advisory Council,
shall make recommendations to the chairs of the house of representatives and senate
committees and divisions with jurisdiction over the environment and natural resources on
how to clarify the state's liability for workers' compensation in relation to volunteers of
nonprofit organizations assisting with providing public services on lands administered
by the commissioner of natural resources subject to Minnesota Statutes, section 175.007,
subdivision 2.

Sec. 50. AGGREGATE RESOURCES TASK FORCE.

Subdivision 1.

Creation; membership.

(a) The Aggregate Resources Task Force
consists of eight members appointed as follows:

(1) the speaker of the house shall appoint four members of the house of representatives
to include two members of the majority party and two members of the minority party, with
one member being the chair of the committee with jurisdiction over aggregate mining; and

(2) the senate Subcommittee on Committees of the Committee on Rules and
Administration shall appoint four members of the senate to include two members of the
majority party and two members of the minority party, with one member being the chair of
the committee or division with jurisdiction over natural resources finance.

(b) The appointing authorities must make their respective appointments no later
than July 15, 2016.

(c) The first meeting of the task force must be convened by the chairs of the house
of representatives and senate committees specified in paragraph (a) who will serve as
cochairs of the task force.

Subd. 2.

Duties.

The task force must study and provide recommendations on:

(1) the Department of Natural Resources' and Metropolitan Council's aggregate
mapping progress and needs;

(2) the effectiveness of recent aggregate tax legislation and the use of the revenues
collected by counties;

(3) the use of state funds to preserve aggregate reserves; and

(4) local land use and permitting issues, environmental review requirements, and the
impacts of other state regulations on aggregate reserves.

Subd. 3.

Report.

No later than January 15, 2018, the task force shall submit a
report to the chairs of the house of representatives and senate committees and divisions
with jurisdiction over aggregate mining and natural resources finance containing the
findings of the study.

Subd. 4.

Expiration.

The Aggregate Resources Task Force expires 45 days after
the report and recommendations are delivered to the legislature or on June 30, 2018,
whichever date is earlier.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 51. APPROPRIATION REALLOCATION.

Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and
Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the
Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal
years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the
Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi
Riverfront Regional Parks in accordance with the most recent priority rankings that the
Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This
reallocation of funds is anticipated to result in $500,000 in federal funds to match extant
parks and trails fund appropriations.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 52. CITATION.

Sections 23, 24, 25, 26, and 45 may be known and cited as "Sophia's Law."

Sec. 53. REPEALER.

Minnesota Statutes 2014, section 116P.13, is repealed.

EFFECTIVE DATE.

This section is effective July 1, 2018, and any funds remaining
in the Minnesota future resources fund on July 1, 2018, are transferred to the general fund.

ARTICLE 4

PUBLIC SAFETY AND CORRECTIONS

Section 1. APPROPRIATIONS.

The sums shown in the column under "Appropriations" are added to the
appropriations in Laws 2015, chapter 65, article 1, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund, or another named
fund, and are available for the fiscal years indicated for each purpose. The figures "2016"
and "2017" used in this article mean that the addition to the appropriation listed under
them is available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively.
Supplemental appropriations for the fiscal year ending June 30, 2016, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. SUPREME COURT

$
-0-
$
1,000,000

For a competitive grant program established
by the chief justice for the distribution of
safe and secure courthouse fund grants to
government entities responsible for providing
or maintaining a courthouse or other facility
where court proceedings are held. Grant
recipients must provide a 50 percent nonstate
match. This is a onetime appropriation and is
available until June 30, 2019.

Sec. 3. DISTRICT COURTS

$
-0-
$
1,547,000

To increase the juror per diem to $20 and the
juror mileage reimbursement rate to 54 cents
per mile.

Sec. 4. GUARDIAN AD LITEM BOARD

$
-0-
$
878,000

To hire additional guardians ad litem to
comply with federal and state mandates,
and court orders for representing the best
interests of children in juvenile and family
court proceedings.

Sec. 5. HUMAN RIGHTS

$
-0-
$
180,000

For a St. Cloud office.

Sec. 6. CORRECTIONS

Subdivision 1.

Total Appropriation

$
4,341,000
$
15,426,000

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

Subd. 2.

Correctional Institutions

4,037,000
10,671,000

(a) Employee Compensation

$1,427,000 in fiscal year 2016 and
$7,512,000 in fiscal year 2017 are for
employee compensation.

(b) Challenge Incarceration Expansion

$2,610,000 in fiscal year 2016 and $2,757,000
in fiscal year 2017 are to increase capacity
in the challenge incarceration program. The
base for this activity is $3,263,000 in fiscal
year 2018 and $3,623,000 in fiscal year 2019.

(c) 24-Hour Nursing

$375,000 in fiscal year 2017 is for 24-hour
nursing coverage seven days a week at
MCF-Shakopee.

Subd. 3.

Community Services

241,000
2,566,000

(a) Employee Compensation

$241,000 in fiscal year 2016 and $860,000
in fiscal year 2017 are for employee
compensation.

(b) Challenge Incarceration Expansion

$406,000 in fiscal year 2017 is to increase
capacity in the challenge incarceration
program.

(c) Reentry and Halfway Houses

$300,000 in fiscal year 2017 is for grants to
counties or groups of counties for reentry and
halfway house services. Eligible programs
must be proven to reduce recidivism. Grant
recipients must provide a 50 percent nonstate
match.

(d) High-Risk Revocation Reduction
Program

$1,000,000 in fiscal year 2017 is to establish
a high-risk revocation reduction program in
the metropolitan area. The program shall
provide sustained case planning, housing
assistance, employment assistance, group
mentoring, life skills programming, and
transportation assistance to adult release
violators who are being released from prison.

Subd. 4.

Operations Support

63,000
2,189,000

(a) Employee Compensation

$63,000 in fiscal year 2016 and $339,000
in fiscal year 2017 are for employee
compensation.

(b) Information Technology Critical
Updates

$1,850,000 in fiscal year 2017 is for
information technology upgrades and
staffing. This is a onetime appropriation.

Sec. 7. PUBLIC SAFETY

$
-0-
$
6,100,000
Appropriations by Fund
General
-0-
1,600,000
Trunk Highway
-0-
4,500,000

The amounts that may be spent for each
purpose are specified in the following
paragraphs.

(a) DNA Laboratory

$630,000 is for the Bureau of Criminal
Apprehension DNA laboratory, including the
addition of six forensic scientists. The base
for this activity is $1,000,000 in each of the
fiscal years 2018 and 2019 for eight forensic
scientists.

(b) Children In Need of Services or in
Out-Of-Home Placement

$150,000 is for a grant to an organization
that provides legal representation to children
in need of protection or services and children
in out-of-home placement. The grant is
contingent upon a match in an equal amount
from nonstate funds. The match may be
in kind, including the value of volunteer
attorney time, or in cash, or in a combination
of the two.

(c) Sex Trafficking

$820,000 is for grants to state and local units
of government for the following purposes:

(1) to support new or existing
multijurisdictional entities to investigate sex
trafficking crimes; and

(2) to provide technical assistance for
sex trafficking crimes, including training
and case consultation, to law enforcement
agencies statewide.

(d) State Patrol

$4,500,000 is from the trunk highway fund
to recruit, hire, train, and equip a State
Patrol Academy. This amount is added to
the appropriation in Laws 2015, chapter 75,
article 1, section 5, subdivision 3. The base
appropriation from the trunk highway fund
for patrolling highways in each of fiscal
years 2018 and 2019 is $87,492,000, which
includes $4,500,000 each year for a State
Patrol Academy.

Sec. 8.

Minnesota Statutes 2014, section 171.07, subdivision 6, is amended to read:


Subd. 6.

Medical alert identifier.

Upon the written request of the applicant, the
department shall issue a driver's license or Minnesota identification card bearing a graphic
or written
medical alert identifier. The applicant must request the medical alert identifier at
the time the photograph or electronically produced image is taken. No specific medical
information will be contained on the driver's license or Minnesota identification card.

Sec. 9.

Minnesota Statutes 2014, section 171.07, subdivision 7, is amended to read:


Subd. 7.

Living Will/Health Care Directive designation.

(a) At the written request
of the applicant and on payment of the required fee, the department shall issue, renew, or
reissue a driver's license or Minnesota identification card bearing the graphic or written
designation of a "Living Will/Health Care Directive" or an abbreviation thereof. The
designation does not constitute delivery of a health care declaration under section 145B.05.

(b) On payment of the required fee, the department shall issue a replacement or
renewal license or identification card without the designation if requested by the applicant.

(c) This subdivision does not impose any additional duty on a health care provider,
as defined in section 145B.02, subdivision 6, or 145C.01, subdivision 6, beyond the duties
imposed in chapter 145B or 145C.

(d) For the purposes of this subdivision:

(1) "living will" means a declaration made under section 145B.03; and

(2) "health care directive" means a durable power of attorney for health care under
section 145C.02, or any other written advance health care directive of the applicant that is
authorized by statute or not prohibited by law.

Sec. 10.

Minnesota Statutes 2014, section 171.07, subdivision 15, is amended to read:


Subd. 15.

Veteran designation.

(a) At the request of an eligible applicant and on
payment of the required fee, the department shall issue, renew, or reissue to the applicant a
driver's license or Minnesota identification card bearing a graphic or written designation of:

(1) "Veteran"; or

(2) "Veteran 100% T&P."

(b) At the time of the initial application for the designation provided under this
subdivision, the applicant must:

(1) be a veteran, as defined in section 197.447;

(2) have a certified copy of the veteran's discharge papers; and

(3) if the applicant is seeking the disability designation under paragraph (a), clause
(2), provide satisfactory evidence of a 100 percent total and permanent service-connected
disability as determined by the United States Department of Veterans Affairs.

(c) The commissioner of public safety is required to issue drivers' licenses and
Minnesota identification cards with the veteran designation only after entering a new
contract or in coordination with producing a new card design with modifications made
as required by law.

Sec. 11.

Minnesota Statutes 2014, section 243.166, subdivision 1b, is amended to read:


Subd. 1b.

Registration required.

(a) A person shall register under this section if:

(1) the person was charged with or petitioned for a felony violation of or attempt to
violate, or aiding, abetting, or conspiracy to commit, any of the following, and convicted
of or adjudicated delinquent for that offense or another offense arising out of the same
set of circumstances:

(i) murder under section 609.185, paragraph (a), clause (2);

(ii) kidnapping under section 609.25;

(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; 609.345;
609.3451, subdivision 3; or 609.3453; or

(iv) indecent exposure under section 617.23, subdivision 3;

(2) the person was charged with or petitioned for a violation of, or attempt to
violate, or aiding, abetting, or conspiring to commit criminal abuse in violation of section
609.2325, subdivision 1, paragraph (b); false imprisonment in violation of section
609.255, subdivision 2; solicitation, inducement, or promotion of the prostitution of a
minor or engaging in the sex trafficking of a minor in violation of section 609.322; a
prostitution offense involving a minor under the age of 13 years in violation of section
609.324, subdivision 1, paragraph (a); soliciting a minor to engage in sexual conduct in
violation of section 609.352, subdivision 2 or 2a, clause (1); using a minor in a sexual
performance in violation of section 617.246; or possessing pornographic work involving a
minor in violation of section 617.247, and convicted of or adjudicated delinquent for that
offense or another offense arising out of the same set of circumstances;

(3) the person was sentenced as a patterned sex offender under section 609.3455,
subdivision 3a
; or

(4) the person was charged with or petitioned for, including pursuant to a court
martial, violating a law of the United States, including the Uniform Code of Military Justice,
similar to the offenses described in clause (1), (2), or (3), and convicted of or adjudicated
delinquent for that offense or another offense arising out of the same set of circumstances.

(b) A person also shall register under this section if:

(1) the person was charged with or petitioned for an offense in another state that
would be a violation of a law described in paragraph (a) if committed in this state and
convicted of or adjudicated delinquent for that offense or another offense arising out
of the same set of circumstances;

(2) the person enters this state to reside, work, or attend school, or enters this state
and remains for 14 days or longer; and

(3) ten years have not elapsed since the person was released from confinement
or, if the person was not confined, since the person was convicted of or adjudicated
delinquent for the offense that triggers registration, unless the person is subject to a longer
registration period under the laws of another state in which the person has been convicted
or adjudicated, or is subject to lifetime registration.

If a person described in this paragraph is subject to a longer registration period
in another state or is subject to lifetime registration, the person shall register for that
time period regardless of when the person was released from confinement, convicted, or
adjudicated delinquent.

(c) A person also shall register under this section if the person was committed
pursuant to a court commitment order under Minnesota Statutes 2012, section 253B.185,
chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of another state
or the United States, regardless of whether the person was convicted of any offense.

(d) A person also shall register under this section if:

(1) the person was charged with or petitioned for a felony violation or attempt to
violate any of the offenses listed in paragraph (a), clause (1), or a similar law of another
state or the United States, or the person was charged with or petitioned for a violation of
any of the offenses listed in paragraph (a), clause (2), or a similar law of another state or
the United States;

(2) the person was found not guilty by reason of mental illness or mental deficiency
after a trial for that offense, or found guilty but mentally ill after a trial for that offense, in
states with a guilty but mentally ill verdict; and

(3) the person was committed pursuant to a court commitment order under section
253B.18 or a similar law of another state or the United States.

EFFECTIVE DATE.

This section is effective August 1, 2016, and applies to crimes
committed on or after that date.

Sec. 12.

[325E.041] SENSORY TESTING RESEARCH.

Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the meanings given:

(1) "sensory testing firm" means a business that tests consumer reaction to physical
aspects of products for a third-party client;

(2) "trained sensory assessors" means members of the public at least 21 years of age
selected by sensory testing firms and trained for a minimum of one hour to test products;

(3) "sensory testing facility" means a facility specifically designed as a controlled
environment for testing; and

(4) "department" means the Department of Public Safety.

Subd. 2.

Allowed activities.

Notwithstanding any law to the contrary, a sensory
testing firm may possess and may purchase alcohol at retail or wholesale, and may allow
consumption of that alcohol, by trained sensory assessors for testing purposes at their
facility, provided that:

(1) the firm must comply with section 340A.409 and all other state laws that do not
conflict with this section;

(2) firms choosing to serve alcohol must be licensed by the department, which may
assess a fee sufficient to cover costs; and

(3) records of testing protocols must be retained by the firm for at least one year.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 13.

Minnesota Statutes 2014, section 484.90, subdivision 6, is amended to read:


Subd. 6.

Allocation.

(a) In all cases prosecuted in district court by an attorney for a
municipality or other subdivision of government within the county for violations of state
statute, or of an ordinance; or charter provision, rule, or regulation of a city; all fines,
penalties, and forfeitures collected shall be deposited in the state treasury and distributed
according to this paragraph. For the purpose of this section, the county attorney shall be
considered the attorney for any town in which a violation occurs.
Except where a different
disposition is provided by section 299D.03, subdivision 5, 484.841, 484.85, or other law,
on or before the last day of each month, the courts shall pay over all fines, penalties, and
forfeitures collected by the court administrator during the previous month as follows:

(1) 100 percent of all fines or penalties for parking violations for which complaints
and warrants have not been issued to the treasurer of the city or town in which the offense
was committed; and

(2) two-thirds of all other fines to the treasurer of the city or town in which the
offense was committed and one-third credited to the state general fund.

All other fines, penalties, and forfeitures collected by the court administrator shall be
distributed by the courts as provided by law.

(b) Fines, penalties, and forfeitures shall be distributed as provided in paragraph
(a) when:

(1) a city contracts with the county attorney for prosecutorial services under section
484.87, subdivision 3;

(2) a city has a population of 600 or less and has given the duty to prosecute cases to
the county attorney under section 484.87; or

(3) the attorney general provides assistance to the county attorney as permitted by law.

Sec. 14.

[609.2233] FELONY ASSAULT MOTIVATED BY BIAS; INCREASED
STATUTORY MAXIMUM SENTENCE.

A person who violates section 609.221, 609.222, or 609.223 because of the victim's
or another person's actual or perceived race, color, religion, sex, sexual orientation,
disability as defined in section 363A.03, age, or national origin is subject to a statutory
maximum penalty of 25 percent longer than the maximum penalty otherwise applicable.

EFFECTIVE DATE.

This section is effective August 1, 2016, and applies to crimes
committed on or after that date.

Sec. 15.

Minnesota Statutes 2015 Supplement, section 609.324, subdivision 1, is
amended to read:


Subdivision 1.

Engaging in, hiring, or agreeing to hire minor to engage in
prostitution; penalties.

(a) Whoever intentionally does any of the following may be
sentenced to imprisonment for not more than 20 years or to payment of a fine of not
more than $40,000, or both:

(1) engages in prostitution with an individual under the age of 13 years; or

(2) hires or offers or agrees to hire an individual under the age of 13 years to engage
in sexual penetration or sexual contact; or

(3) hires or offers or agrees to hire an individual who the actor reasonably believes
to be under the age of 13 years to engage in sexual penetration or sexual contact
.

(b) Whoever intentionally does any of the following may be sentenced to
imprisonment for not more than ten years or to payment of a fine of not more than
$20,000, or both:

(1) engages in prostitution with an individual under the age of 16 years but at least
13 years; or

(2) hires or offers or agrees to hire an individual under the age of 16 years but at
least 13 years to engage in sexual penetration or sexual contact; or

(3) hires or offers or agrees to hire an individual who the actor reasonably believes
to be under the age of 16 years but at least 13 years to engage in sexual penetration or
sexual contact
.

(c) Whoever intentionally does any of the following may be sentenced to
imprisonment for not more than five years or to payment of a fine of not more than
$10,000, or both:

(1) engages in prostitution with an individual under the age of 18 years but at least
16 years;

(2) hires or offers or agrees to hire an individual under the age of 18 years but at
least 16 years to engage in sexual penetration or sexual contact; or

(3) hires or offers or agrees to hire an individual who the actor reasonably believes
to be under the age of 18 years but at least 16 years to engage in sexual penetration or
sexual contact.

EFFECTIVE DATE.

This section is effective August 1, 2016, and applies to crimes
committed on or after that date.

Sec. 16.

Laws 2015, chapter 65, article 1, section 18, is amended to read:


Sec. 18. AVIAN INFLUENZA AND
AGRICULTURAL
EMERGENCY
RESPONSE.

Notwithstanding Minnesota Statutes, section
12.221, subdivision 6, for fiscal years
2016 and 2017
through June 30, 2019,
only, the disaster contingency account,
under Minnesota Statutes, section 12.221,
subdivision 6
, may be used to pay for
costs of eligible avian influenza emergency
response activities for avian influenza and
any agricultural emergency
. By January 15,
2018, and again by January 15, 2020, the
commissioner of management and budget
must report to the chairs and ranking minority
members of the senate Finance Committee
and the house of representatives Committee
on Ways and Means on any amount used
for avian influenza the purposes authorized
under this section.

Sec. 17. ST. CLOUD STATE UNIVERSITY; SPECIAL LICENSE.

Notwithstanding any other law, local ordinance, or charter provision to the contrary,
the city of St. Cloud may issue an on-sale wine and malt liquor intoxicating liquor license
to St. Cloud State University. A license authorized by this section may be issued for space
that is not compact and contiguous, provided that all the space is within the boundaries of
the campus of St. Cloud State University and is included in the description of the licensed
premises on the approved license application. The license under this section authorizes
sales on all days of the week to persons attending events at Herb Brooks National Hockey
Center, subject to the hours and days of sale restrictions in Minnesota Statutes, and any
reasonable license conditions or restrictions imposed by the licensing authority. All other
provisions of Minnesota Statutes not inconsistent with this section apply to the license
authorized under this section.

EFFECTIVE DATE.

This section is effective upon approval by the St. Cloud City
Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions
2 and 3.

Sec. 18. INDIAFEST; SPECIAL LICENSE.

Notwithstanding any other law, local ordinance, or charter provision to the contrary,
the city of St. Paul may issue a temporary on-sale intoxicating liquor license to the India
Association of Minnesota, a nonprofit 501(c)(3) organization, for Indiafest on the grounds
of the State Capitol. The license may authorize only the sale of intoxicating malt liquor
and wine. All provisions of Minnesota Statutes not inconsistent with this section apply
to the license authorized by this section.

EFFECTIVE DATE.

This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.

Sec. 19. MAJOR LEAGUE SOCCER STADIUM; SPECIAL LICENSE.

Notwithstanding any other law, local ordinance, or charter provision to the contrary,
the city of St. Paul may issue an on-sale intoxicating liquor license to the operator of the
Major League Soccer stadium located in the city of St. Paul or to entities affiliated with it
for operation of food and beverage concessions at the stadium. The license may authorize
sales both to persons attending any and all events, and sales in a restaurant, bar, or banquet
facility at the stadium. The license authorizes sales on all days of the week. All provisions
of Minnesota Statutes not inconsistent with this section apply to the license under this
section. The license may be issued for a space that is not compact and contiguous,
provided that the licensed premises may include only the space within the stadium or on
stadium premises or grounds, as described in the approved license application.

EFFECTIVE DATE.

This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.

Sec. 20. JANESVILLE; SPECIAL LICENSE.

Notwithstanding any law or ordinance to the contrary, the city of Janesville may
issue an on-sale intoxicating liquor license for the Prairie Ridge Golf Club that is located
at 2000 North Main Street and is owned by the city. The provisions of Minnesota Statutes
not inconsistent with this section apply to the license issued under this section. The city
of Janesville is deemed the licensee under this section, and the relevant provisions of
Minnesota Statutes apply to the licensee as if the establishment were a municipal liquor
store.

EFFECTIVE DATE.

This section is effective upon approval by the Janesville City
Council and compliance with Minnesota Statutes, section 645.021.

Sec. 21. CITY OF MINNEAPOLIS; SPECIAL LICENSE.


The city of Minneapolis may issue an on-sale intoxicating liquor license to a
restaurant located at 5000 Hiawatha Avenue, notwithstanding any law or local ordinance
or charter provision to the contrary.

EFFECTIVE DATE.

This section is effective upon approval by the Minneapolis
City Council and compliance with Minnesota Statutes, section 645.021.

Sec. 22. REPEALER.

Special Laws 1891, chapter 57, chapter XII, section 5, is repealed.

EFFECTIVE DATE.

This section is effective upon approval by the Duluth City
Council and compliance with Minnesota Statutes, section 645.021.

ARTICLE 5

BROADBAND DEVELOPMENT

Section 1. DEPARTMENT OF
EMPLOYMENT AND ECONOMIC
DEVELOPMENT

$
-0-
$
35,000,000

Border-To-Border Broadband
Development Program.
(a) $35,000,000 in
fiscal year 2017 is from the general fund for
deposit in the border-to-border broadband
fund account under Minnesota Statutes,
section 116J.396, to award grants under
that section. Of this appropriation, no more
than $5,000,000 may be used for grants to
underserved areas. Of this appropriation, up
to $1,000,000 may be used for administrative
costs, including mapping. This is a onetime
appropriation.

(b) $500,000 may be awarded to projects
that propose to expand the availability and
adoption of broadband service to areas
that contain a significant proportion of
low-income households. For the purposes
of this paragraph, "low-income households"
means households whose household income
is less than or equal to 200 percent of the
most recent calculation of the United States
federal poverty guidelines published by the
United States Department of Health and
Human Services, adjusted for family size.

(c) If grant awards in any area are insufficient
to fully expend the funds available for
that area, the commissioner may reallocate
unexpended funds to other areas.

Sec. 2.

Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:


116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to 116J.396 116J.398, the following terms
have the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) "Broadband infrastructure" means networks of deployed telecommunications
equipment and technologies necessary to provide high-speed Internet access and other
advanced telecommunications services for end users.

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

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
final leg connecting the broadband service provider's network to the end-use customer's
on-premises telecommunications equipment.

(f) "Middle-mile infrastructure" means broadband infrastructure that links a
broadband service provider's core network infrastructure to last-mile infrastructure.

(g) "Political subdivision" means any county, city, town, school district, special
district or other political subdivision, or public corporation.

(h) "Underserved areas" means areas of Minnesota in which households or
businesses lack access to wire-line broadband service at speeds that meet the state
broadband goals
of ten to 20 at least 100 megabits per second download and five to ten
at least 20 megabits per second upload.

(i) "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service, as defined in section 116J.39.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:


Subd. 4.

Application process.

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

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2014, section 116J.395, subdivision 5, is amended to read:


Subd. 5.

Application contents.

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

(1) the location of the project;

(2) the kind and amount of broadband infrastructure to be purchased for the project;

(3) evidence regarding the unserved or underserved nature of the community in
which the project is to be located;

(4) the number of households passed that will have access to broadband service as a
result of the project, or whose broadband service will be upgraded as a result of the project;

(5) significant community institutions that will benefit from the proposed project;

(6) evidence of community support for the project;

(7) the total cost of the project;

(8) sources of funding or in-kind contributions for the project that will supplement
any grant award; and

(9) evidence that no later than six weeks before submission of the application the
applicant contacted, in writing, all entities providing broadband service in the proposed
project area to ask for each broadband service provider's plan to upgrade broadband service
in the project area to speeds that meet or exceed the state's broadband speed goals in section
237.012, subdivision 1, within the time frame specified in the proposed grant activities;

(10) the broadband service providers' written responses to the inquiry made under
clause (9); and

(11) any additional information requested by the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
to read:


Subd. 5a.

Challenge process.

(a) Within three days of the close of the grant
application process, the office shall publish on its Web site the proposed geographic
broadband service area and the proposed broadband service speeds for each application
submitted.

(b) An existing broadband service provider in or proximate to the proposed project
area may, within 30 days of publication of the information under paragraph (a), submit
in writing to the commissioner a challenge to an application. A challenge must contain
information demonstrating that:

(1) the provider currently provides or has begun construction to provide broadband
service to the proposed project area at speeds equal to or greater than the state speed goal
contained in section 237.012, subdivision 1; or

(2) the provider commits to complete construction of broadband infrastructure and
provide broadband service in the proposed project area at speeds equal to or greater than
the state speed goal contained in section 237.012, subdivision 1, no later than 18 months
after the date grant awards are made under this section for the grant cycle under which the
application was submitted.

(c) The commissioner must evaluate the information submitted in a provider's
challenge under this section, and is prohibited from funding a project if the commissioner
determines that the provider's commitment to provide broadband service that meets the
requirements of paragraph (b) in the proposed project area is credible.

(d) If the commissioner denies funding to an applicant as a result of a broadband
service provider's challenge made under this section, and the broadband service provider
does not fulfill the provider's commitment to provide broadband service in the project
area, the commissioner is prohibited from denying funding to an applicant as a result of
a challenge by the same broadband service provider for the following two grant cycles,
unless the commissioner determines that the broadband service provider's failure to
fulfill the provider's commitment was the result of factors beyond the broadband service
provider's control.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
to read:


Subd. 8.

Application evaluation report.

By June 30 of each year, the Office of
Broadband Development shall publish on the Department of Employment and Economic
Development's Web site and provide to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over broadband
a list of all applications for grants under this section received during the previous year
and, for each application:

(1) the results of any quantitative weighting scheme or scoring system the
commissioner used to award grants or rank the applications;

(2) the grant amount requested; and

(3) the grant amount awarded, if any.

EFFECTIVE DATE.

This section is effective the day following final enactment.
The initial report submission required under this section is due June 30, 2016.

Sec. 7.

[116J.397] UPDATED BROADBAND DEPLOYMENT DATA AND MAPS.

(a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband
Development shall contract with one or more independent organizations that have
extensive experience working with Minnesota broadband providers to:

(1) collect broadband deployment data from Minnesota providers, verify its accuracy
through on-the-ground testing, and create state and county maps available to the public by
April 15, 2017, and each April 15 thereafter, showing the availability of broadband service
at various upload and download speeds throughout Minnesota;

(2) analyze the deployment data collected to help inform future investments in
broadband infrastructure; and

(3) conduct business and residential surveys that measure broadband adoption and
use in the state.

(b) Data provided by a broadband provider under this section is nonpublic data
under section 13.02, subdivision 9. Maps produced under this paragraph are public data
under section 13.03.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

[116J.398] BROADBAND PREVAILING WAGE EXEMPTION.

Notwithstanding any other law to the contrary, section 116J.871 does not apply
to a project receiving a grant under section 116J.395 for the construction, installation,
remodeling, and repair of last-mile infrastructure, as defined under section 116J.394,
paragraph (e).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9.

Minnesota Statutes 2014, section 237.012, is amended to read:


237.012 BROADBAND GOALS.

Subdivision 1.

Universal access and high-speed goal.

It is a state goal that as
soon as possible, but no later than 2015, all state residents and businesses have access to
high-speed broadband that provides minimum download speeds of ten to 20 megabits per
second and minimum upload speeds of five to ten megabits per second.
:

(1) no later than 2022, all Minnesota businesses and homes have access to
high-speed broadband that provides minimum download speeds of at least 25 megabits
per second and minimum upload speeds of at least three megabits per second; and

(2) no later than 2026, all Minnesota businesses and homes have access to at least
one provider of broadband with download speeds of at least 100 megabits per second and
upload speeds of at least 20 megabits per second.

Subd. 2.

State broadband leadership position.

It is a goal of the state that by
2015 2022 and thereafter, the state be in:

(1) the top five states of the United States for broadband speed universally accessible
to residents and businesses;

(2) the top five states for broadband access; and

(3) the top 15 when compared to countries globally for broadband penetration.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 6

ENERGY

Section 1.

Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:


Subdivision 1.

Reimbursable costs.

(a) The board shall provide reimbursement to
eligible applicants for reimbursable costs.

(b) The following costs are reimbursable for purposes of this chapter:

(1) corrective action costs incurred by the applicant and documented in a form
prescribed by the board, except the costs related to the physical removal of a tank.
Corrective action costs incurred by the applicant include costs for physical removal of
a tank when the physical removal is part of a corrective action, regardless of whether
the tank is leaking at the time of removal, and the removal is directed or approved by
the commissioner
;

(2) costs that the responsible person is legally obligated to pay as damages to third
parties for bodily injury, property damage, or corrective action costs incurred by a third
party caused by a release where the responsible person's liability for the costs has been
established by a court order or court-approved settlement; and

(3) up to 180 days of interest costs associated with the financing of corrective action
and incurred by the applicant in a written extension of credit or loan that has been signed by
the applicant and executed after July 1, 2002, provided that the applicant documents that:

(i) the interest costs are incurred as a result of an extension of credit or loan from a
financial institution; and

(ii) the board has not considered the application within the applicable time frame
specified in subdivision 2a, paragraph (c).

Interest costs meeting the requirements of this clause are eligible only when they are
incurred between the date a complete initial application is received by the board, or the
date a complete supplemental application is received by the board, and the date that the
board first notifies the applicant of its reimbursement determination. An application is
complete when the information reasonably required or requested by the board's staff
from the applicant has been received by the board's staff. Interest costs are not eligible
for reimbursement to the extent they exceed two percentage points above the adjusted
prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the
extension of credit or loan was executed.

(c) A cost for liability to a third party is incurred by the responsible person when an
order or court-approved settlement is entered that sets forth the specific costs attributed
to the liability. Except as provided in this paragraph, reimbursement may not be made
for costs of liability to third parties until all eligible corrective action costs have been
reimbursed. If a corrective action is expected to continue in operation for more than one
year after it has been fully constructed or installed, the board may estimate the future
expense of completing the corrective action and, after subtracting this estimate from the
total reimbursement available under subdivision 3, reimburse the costs for liability to third
parties. The total reimbursement may not exceed the limit set forth in subdivision 3.

Sec. 2.

Minnesota Statutes 2014, section 115C.09, subdivision 3, is amended to read:


Subd. 3.

Reimbursements; subrogation; appropriation.

(a) The board shall
reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs
incurred at the site, except that the board may reimburse an eligible applicant from the
fund for greater than 90 percent of the total reimbursable costs, if the applicant previously
qualified for a higher reimbursement rate. For costs associated with a release from a tank
in transport, the board may reimburse a maximum of $100,000.

Not more than $1,000,000 may be reimbursed for costs associated with a single
release, regardless of the number of persons eligible for reimbursement, and not more than

$2,000,000 may be reimbursed for costs associated with a single tank facility release.

(b) A reimbursement may not be made from the fund under this chapter until the
board has determined that the costs for which reimbursement is requested were actually
incurred and were reasonable.

(c) When an applicant has obtained responsible competitive bids or proposals
according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs
for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal
are presumed to be reasonable by the board, unless the costs of the low bid or proposal are
substantially in excess of the average costs charged for similar tasks, procedures, services,
materials, equipment, and tests in the same geographical area during the same time period.

(d) When an applicant has obtained a minimum of two responsible competitive bids or
proposals on forms prescribed by the board and where the rules promulgated adopted under
this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures,
services, materials, equipment and tests, the eligible costs of the low bid or proposal are
deemed reasonable if the costs are at or below the maximums set forth in the rules.

(e) Costs incurred for change orders executed as prescribed in rules promulgated
adopted
under this chapter after June 1, 1995, are presumed reasonable if the costs are
at or below the maximums set forth in the rules, unless the costs in the change order are
above those in the original bid or proposal or are unsubstantiated and inconsistent with the
process and standards required by the rules.

(f) A reimbursement may not be made from the fund in response to either an initial
or supplemental application for costs incurred after June 4, 1987, that are payable under
an applicable insurance policy, except that if the board finds that the applicant has made
reasonable efforts to collect from an insurer and failed, the board shall reimburse the
applicant.

(g) If the board reimburses an applicant for costs for which the applicant has
insurance coverage, the board is subrogated to the rights of the applicant with respect to
that insurance coverage, to the extent of the reimbursement by the board. The board may
request the attorney general to bring an action in district court against the insurer to enforce
the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes
an assignment by the applicant to the board of any rights of the applicant with respect to
any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this
paragraph, the board may instead request a return of the reimbursement under subdivision
5 and may employ against the applicant the remedies provided in that subdivision, except
where the board has knowingly provided reimbursement because the applicant was denied
coverage by the insurer.

(h) Money in the fund is appropriated to the board to make reimbursements under
this chapter. A reimbursement to a state agency must be credited to the appropriation
account or accounts from which the reimbursed costs were paid.

(i) The board may reduce the amount of reimbursement to be made under this
chapter if it finds that the applicant has not complied with a provision of this chapter, a
rule or order issued under this chapter, or one or more of the following requirements:

(1) the agency was given notice of the release as required by section 115.061;

(2) the applicant, to the extent possible, fully cooperated with the agency in
responding to the release;

(3) the state rules applicable after December 22, 1993, to operating an underground
storage tank and appurtenances without leak detection;

(4) the state rules applicable after December 22, 1998, to operating an underground
storage tank and appurtenances without corrosion protection or spill and overfill
protection; and

(5) the state rule applicable after November 1, 1998, to operating an aboveground
tank without a dike or other structure that would contain a spill at the aboveground tank site.

(j) The reimbursement may be reduced as much as 100 percent for failure by
the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In
determining the amount of the reimbursement reduction, the board shall consider:

(1) the reasonable determination by the agency that the noncompliance poses a
threat to the environment;

(2) whether the noncompliance was negligent, knowing, or willful;

(3) the deterrent effect of the award reduction on other tank owners and operators;

(4) the amount of reimbursement reduction recommended by the commissioner; and

(5) the documentation of noncompliance provided by the commissioner.

(k) An applicant may request that the board issue a multiparty check that includes each
lender who advanced funds to pay the costs of the corrective action or to each contractor
or consultant who provided corrective action services. This request must be made by filing
with the board a document, in a form prescribed by the board, indicating the identity of the
applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the
location of the corrective action. The applicant must submit a request for the issuance
of a multiparty check for each application submitted to the board. Payment under this
paragraph does not constitute the assignment of the applicant's right to reimbursement
to the consultant, contractor, or lender. The board has no liability to an applicant for a
payment issued as a multiparty check that meets the requirements of this paragraph.

Sec. 3.

Minnesota Statutes 2014, section 115C.13, is amended to read:


115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05,
115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11,
115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2017 2022.

Sec. 4.

Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:


Subd. 12.

Exemption for small gas utility franchise.

(a) A municipality may file
with the commission a resolution of its governing body requesting exemption from the
provisions of this section for a public utility that is under a franchise with the municipality
to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in
the municipality as long as the public utility serves no more than a total of 2,000 5,000
customers.

(b) The commission shall grant an exemption from this section for that portion of
a public utility's business that is requested by each municipality it serves. Furthermore,
the commission shall also grant the public utility an exemption from this section for any
service provided outside of a municipality's border that is considered by the commission
to be incidental. The public utility shall file with the commission and the department
all initial and subsequent changes in rates, tariffs, and contracts for service outside the
municipality at least 30 days in advance of implementation.

(c) However, the commission shall require the utility to adopt the commission's
policies and procedures governing disconnection during cold weather. The utility shall
annually submit a copy of its municipally approved rates to the commission.

(d) In all cases covered by this subdivision in which an exemption for service outside
of a municipality is granted, the commission may initiate an investigation under section
216B.17, on its own motion or upon complaint from a customer.

(e) If a municipality files with the commission a resolution of its governing body
rescinding the request for exemption, the commission shall regulate the public utility's
business in that municipality under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

[216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
ASSOCIATION.

A cooperative electric association that has elected to be subject to rate regulation
under section 216B.026 is eligible to file with the commission for approval an adjustment
for real and personal property taxes, fees, and permits.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2014, section 216B.1691, subdivision 10, is amended to read:


Subd. 10.

Utility acquisition of resources.

A competitive resource acquisition
process established by the commission prior to June 1, 2007, shall not apply to a utility
for the construction, ownership, and operation of generation facilities used to satisfy the
requirements of this section unless, upon a finding that it is in the public interest, the
commission issues an order on or after June 1, 2007, that requires compliance by a utility
with a competitive resource acquisition process. A utility that owns a nuclear generation
facility and intends to construct, own, or operate facilities under this section shall file with
the commission on or before March 1, 2008, a renewable energy plan setting forth the
manner in which the utility proposes to meet the requirements of this section, including
a proposed schedule for purchasing renewable energy from C-BED and non-C-BED
projects
. The utility shall update the plan as necessary in its filing under section 216B.2422.
The commission shall approve the plan unless it determines, after public hearing and
comment, that the plan is not in the public interest. As part of its determination of public
interest, the commission shall consider the plan's allocation of projects among C-BED,
non-C-BED, and utility-owned projects,
impact on balancing the state's interest in:

(1) promoting the policy of economic development in rural areas through the
development of renewable energy projects, as expressed in subdivision 9;

(2) maintaining the reliability of the state's electric power grid; and

(3) minimizing cost impacts on ratepayers.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to read:


Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) Each individual utility and association shall have an annual energy-savings
goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the
most recent three-year weather-normalized average. A utility or association may elect to
carry forward energy savings in excess of 1.5 percent for a year to the succeeding three
calendar years, except that savings from electric utility infrastructure projects allowed
under paragraph (d) may be carried forward for five years. A particular energy savings can
be used only for one year's goal.

(c) The commissioner must adopt a filing schedule that is designed to have all
utilities and associations operating under an energy-savings plan by calendar year 2010.

(d) In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based on
its historical conservation investment experience, customer class makeup, load growth, a
conservation potential study, or other factors the commissioner determines warrants an
adjustment. The commissioner may not approve a plan of a public utility that provides for
an annual energy-savings goal of less than one percent of gross annual retail energy sales
from energy conservation improvements.

A utility or association may include in its energy conservation plan energy savings
from electric utility infrastructure projects approved by the commission under section
216B.1636 or waste heat recovery converted into electricity projects that may count as
energy savings in addition to a minimum energy-savings goal of at least one percent for
energy conservation improvements. Energy savings from electric utility infrastructure
projects, as defined in section 216B.1636, may be included in the energy conservation
plan of a municipal utility or cooperative electric association.
Electric utility infrastructure
projects must result in increased energy efficiency greater than that which would have
occurred through normal maintenance activity.

(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.

(f) An association or utility is not required to make energy conservation investments
to attain the energy-savings goals of this subdivision that are not cost-effective even
if the investment is necessary to attain the energy-savings goals. For the purpose of
this paragraph, in determining cost-effectiveness, the commissioner shall consider the
costs and benefits to ratepayers, the utility, participants, and society. In addition, the
commissioner shall consider the rate at which an association or municipal utility is
increasing its energy savings and its expenditures on energy conservation.

(g) On an annual basis, the commissioner shall produce and make publicly available
a report on the annual energy savings and estimated carbon dioxide reductions achieved
by the energy conservation improvement programs for the two most recent years for
which data is available. The commissioner shall report on program performance both in
the aggregate and for each entity filing an energy conservation improvement plan for
approval or review by the commissioner.

(h) By January 15, 2010, the commissioner shall report to the legislature whether
the spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:


Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to
serve the demand of a single customer at a single location, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the
demand of a single customer that primarily uses existing rights-of-way, unless the applicant
opts to request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using
natural gas;

(6) the modification of an existing electric generating plant to increase efficiency,
as long as the capacity of the plant is not increased more than ten percent or more than
100 megawatts, whichever is greater; or

(7) a wind energy conversion system or solar electric generation facility if the system
or facility is owned and operated by an independent power producer and the electric output
of the system or facility is not sold to an entity that provides retail service in Minnesota
or wholesale electric service to another entity in Minnesota other than an entity that is a
federally recognized regional transmission organization or independent system operator; or

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating large energy facility, as defined in section 216B.2421,
subdivision 2, engaging in a repowering project that:

(i) will not result in the facility exceeding the nameplate capacity under its most
recent interconnection agreement; or

(ii) will result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected
net power increase
.

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating
large energy facility to increase its efficiency without increasing its nameplate capacity;

(2) replacing turbines in a large wind energy conversion system without increasing
the nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

Sec. 9.

Minnesota Statutes 2014, section 216C.20, subdivision 3, is amended to read:


Subd. 3.

Parking ramp.

No enclosed structure or portion of an enclosed structure
constructed after January 1, 1978, and used primarily as a commercial parking facility for
three or more motor vehicles shall be heated. Incidental heating resulting from building
exhaust air passing through a parking facility shall not be prohibited, provided that
substantially all useful heat has previously been removed from the air. The commissioner
of commerce may grant an exemption from this subdivision if the commercial parking
is integrated within a facility that has both public and private uses, the benefits of the
exemption to taxpayers exceed the costs, and all appropriate energy efficiency measures
have been considered.

Sec. 10.

Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:


Subd. 5.

Environmental review.

(a) The commissioner of the Department of
Commerce shall prepare for the commission an environmental impact statement on each
proposed large electric generating plant or high-voltage transmission line for which a
complete application has been submitted. The commissioner shall not consider whether
or not the project is needed. No other state environmental review documents shall be
required. The commissioner shall study and evaluate any site or route proposed by an
applicant and any other site or route the commission deems necessary that was proposed in
a manner consistent with rules concerning the form, content, and timeliness of proposals
for alternate sites or routes.

(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is
a large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Minnesota Statutes 2014, section 216H.01, is amended by adding a
subdivision to read:


Subd. 1a.

Cogeneration facility or combined heat and power facility.

"Cogeneration facility" or "combined heat and power facility" means a facility that:

(1) has the meaning given in United States Code, title 16, section 796, clause (18),
paragraph (A); and

(2) meets the applicable operating and efficiency standards contained in Code of
Federal Regulations, title 18, part 292.205.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:


Subdivision 1.

Definition; new large energy facility.

For the purpose of this
section, "new large energy facility" means a large energy facility, as defined in section
216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, but
does not include a facility that (1) uses natural gas as a primary fuel, (2) is a cogeneration
facility or combined heat and power facility located in the electric service area of a public
utility, as defined in section 216B.02, subdivision 4, or is
designed to provide peaking,
intermediate, emergency backup, or contingency services, (3) uses a simple cycle or
combined cycle turbine technology, and (4) is capable of achieving full load operations
within 45 minutes of startup for a simple cycle facility, or is capable of achieving
minimum load operations within 185 minutes of startup for a combined cycle facility.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 13.

Minnesota Statutes 2014, section 373.48, subdivision 3, is amended to read:


Subd. 3.

Joint purchase of energy and acquisition of generation projects;
financing.

(a) A county may enter into agreements under section 471.59 with other
counties for joint purchase of energy or joint acquisition of interests in projects. A county
that enters into a multiyear agreement for purchase of energy or acquires an interest in
a project, including C-BED projects pursuant to section 216B.1612, subdivision 9, may
finance the estimated cost of the energy to be purchased during the term of the agreement
or the cost to the county of the interest in the project by the issuance of revenue bonds of
the county, including clean renewable energy revenue bonds, provided that the annual debt
service on all bonds issued under this section, together with the amounts to be paid by the
county in any year for the purchase of energy under agreements entered into under this
section, must not exceed the estimated revenues of the project.

(b) An agreement entered into under section 471.59 as provided by this section
may provide that:

(1) each county issues bonds to pay their respective shares of the cost of the projects;

(2) one of the counties issues bonds to pay the full costs of the project and that the
other participating counties pay any available revenues of the project and pledge the
revenues to the county that issues the bonds; or

(3) the joint powers board issues revenue bonds to pay the full costs of the project
and that the participating counties pay any available revenues of the project under this
subdivision and pledge the revenues to the joint powers entity for payment of the revenue
bonds.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 14.

Laws 2001, chapter 130, section 3, is amended to read:


Sec. 3. ASSESSMENT.

A propane education and research council, established and certified pursuant to
section 2, may assess propane producers and retail marketers an amount not to exceed one
mill
the maximum assessment authorized in United States Code, title 15, section 6405(a),
per gallon of odorized propane in a manner established by the council in compliance with
United States Code, title 15, section 6405, subsections (a) to (c). Propane producers and
retail marketers shall be responsible for the amounts assessed.

Sec. 15.

Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to
read:


EFFECTIVE DATE; APPLICATION.

This section is effective July 1, 2015
January 1, 2016
, and applies to applications for reimbursement on or after that date.

EFFECTIVE DATE.

This section is effective retroactively from May 5, 2014.

Sec. 16. REPEALER.

Minnesota Statutes 2014, sections 216B.1612; and 216C.39, are repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 7

ECONOMIC DEVELOPMENT

Section 1. APPROPRIATIONS

The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2015, First Special Session,
chapter 1, or other law to the specified agencies. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2016" and "2017" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
respectively. Appropriations for the fiscal year ending June 30, 2016, are effective the day
following final enactment. Reductions may be taken in either fiscal year.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
-0-
$
11,721,000
Appropriations by Fund
General
-0-
7,271,000
Workforce
Development
-0-
4,450,000

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

Subd. 2.

Business and Community
Development

-0-
8,021,000
Appropriations by Fund
General
-0-
7,271,000
Workforce
Development
-0-
750,000

(a) $9,000,000 in fiscal year 2017 is a
onetime reduction in the general fund
appropriation for the Minnesota investment
fund under Minnesota Statutes, section
116J.8731. The base funding for this purpose
is $11,000,000 in fiscal year 2018 and each
fiscal year thereafter.

(b) $11,500,000 in fiscal year 2017 is a
onetime reduction in the general fund
appropriation for the Minnesota job creation
fund under Minnesota Statutes, section
116J.8748. The base funding for this
program is $6,500,000 in fiscal year 2018
and each fiscal year thereafter.

(c) $2,000,000 in fiscal year 2017 is for the
redevelopment program under Minnesota
Statutes, section 116J.571. This is a onetime
appropriation.


(d) $1,220,000 in fiscal year 2017 is for a
grant to the Duluth North Shore Sanitary
District to retire debt of the district in order
to bring the district's monthly wastewater
rates in line with those of similarly situated
facilities across the state. This is a onetime
appropriation.

(e) $300,000 in fiscal year 2017 is from the
workforce development fund for expansion
of business assistance services provided by
business development specialists located in
the Northwest Region, Northeast Region,
West Central Region, Southwest Region,
Southeast Region, and Twin Cites Metro
Region offices established throughout the
state. Funds under this section may be used
to provide services including, but not limited
to, business start-ups; expansion; location or
relocation; finance; regulatory and permitting
assistance; and other services determined
by the commissioner. The commissioner
may also use funds under this section to
increase the number of business development
specialists in each region of the state,
increase and expand the services provided
through each regional office, and publicize
the services available and provide outreach
to communities in each region regarding
services and assistance available through the
business development specialist program.
This is a onetime appropriation.

(f) $50,000 in fiscal year 2017 is from the
workforce development fund to enhance
the outreach and public awareness activities
of the Bureau of Small Business under
Minnesota Statutes, section 116J.68. This is
a onetime appropriation.

(g) $100,000 in fiscal year 2017 is from
the general fund for an easy-to-understand
manual to instruct aspiring business owners
in how to start a child care business. The
commissioner shall work in consultation
with relevant state and local agencies
and affected stakeholders to produce the
manual. The manual must be made available
electronically to interested persons. This is a
onetime appropriation and is available until
June 30, 2019.

(h) $2,500,000 in fiscal year 2017 is for
grants to initiative foundations to provide
financing for business startups, expansions,
and maintenance; and for business ownership
transition and succession. This is a onetime
appropriation. Of the amount appropriated:

(1) $357,000 is for a grant to the Southwest
Initiative Foundation;

(2) $357,000 is for a grant to the West Central
Initiative Foundation;

(3) $357,000 is for a grant to the Southern
Minnesota Initiative Foundation;

(4) $357,000 is for a grant to the Northwest
Minnesota Foundation;

(5) $357,000 is for a grant to the Initiative
Foundation;

(6) $357,000 is for a grant to the Northland
Foundation; and

(7) $357,000 is for a grant for the Minnesota
emerging entrepreneur program under
Minnesota Statutes, chapter 116M. Funds
available under this clause must be allocated
as follows:

(i) 50 percent of the funds must be allocated
for projects in the counties of Dakota,
Ramsey, and Washington; and

(ii) 50 percent of the funds must be allocated
for projects in the counties of Anoka, Carver,
Hennepin, and Scott.

(i) $600,000 in fiscal year 2017 is for a grant
to a city of the second class that is designated
as an economically depressed area by the
United States Department of Commerce for
economic development, redevelopment, and
job creation programs and projects. This is a
onetime appropriation and is available until
June 30, 2019.

(j) $4,500,000 in fiscal year 2017 is
for a grant to the Minnesota Film and
TV Board for the film production jobs
program under Minnesota Statutes, section
116U.26. This appropriation is in addition
to the appropriation in Laws 2015, First
Special Session chapter 1, article 1,
section 2, subdivision 2. This is a onetime
appropriation.

(k) $3,651,000 in fiscal year 2017 is from the
general fund for a grant to Mille Lacs County
to develop and operate the Lake Mille Lacs
area economic relief program established in
section 45. This is a onetime appropriation.

(l) $500,000 in fiscal year 2017 is from the
general fund for grants to local communities
outside of the metropolitan area as defined
under Minnesota Statutes, section 473.121,
subdivision 2, to increase the supply of
quality child care providers in order to
support regional economic development.
Grant recipients must match state funds on a
dollar-for-dollar basis. Grant funds available
under this section must be used to implement
solutions to reduce the child care shortage
in the state, including but not limited to
funding for child care business start-up or
expansion, training, facility modifications
or improvements required for licensing,
and assistance with licensing and other
regulatory requirements. In awarding grants,
the commissioner must give priority to
communities in greater Minnesota that have
documented a shortage of child care providers
in the area. This is a onetime appropriation
and is available until June 30, 2019.

By September 30, 2017, grant recipients must
report to the commissioner on the outcomes
of the grant program, including but not
limited to the number of new providers, the
number of additional child care provider jobs
created, the number of additional child care
slots, and the amount of local funds invested.

By January 1, 2018, the commissioner must
report to the standing committees of the
legislature having jurisdiction over child care
and economic development on the outcomes
of the program to date.

(m) $100,000 in fiscal year 2017 is from
the general fund for a grant to the city of
Madelia to provide match funding for a
federal Economic Development Agency
technical assistance grant. This is a onetime
appropriation.

(n) $10,000,000 in fiscal year 2017 is for
deposit in the Minnesota 21st century fund.
This is a onetime appropriation.

(o) $400,000 in fiscal year 2017 is from the
workforce development fund for grants to
small business development centers under
Minnesota Statutes, section 116J.68. Funds
made available under this section may be
used to match funds under the federal Small
Business Development Center (SBDC)
program under United States Code, title 15,
section 648, provide consulting and technical
services, or to build additional SBDC
network capacity to serve entrepreneurs
and small businesses. The commissioner
shall allocate funds equally among the nine
regional centers and lead center. This is a
onetime appropriation.

(p) $2,600,000 in fiscal year 2017 is for
a transfer to the Board of Regents of the
University of Minnesota for academic and
applied research through MnDRIVE at the
Natural Resources Research Institute to
develop new technologies that enhance the
long-term viability of the Minnesota mining
industry. The research must be done in
consultation with the Mineral Coordinating
Committee established by Minnesota
Statutes, section 93.0015. This is a onetime
transfer.

(q) Of the amount appropriated in fiscal
year 2017 for the Minnesota Investment
Fund in Laws 2015, First Special Session
chapter 1, article 1, section 2, subdivision 2,
paragraph (a), $450,000 is for a grant to the
Lake Superior-Poplar River Water District to
acquire interests in real property, engineer,
design, permit, and construct infrastructure
to transport and treat water from Lake
Superior through the Poplar River Valley to
serve domestic, irrigation, commercial, stock
watering, and industrial water users. This
grant does not require a local match. This
is a onetime appropriation. This amount is
available until June 30, 2019.

Subd. 3.

Workforce Development

-0-
1,900,000

This appropriation is from the workforce
development fund.

(a) $500,000 in fiscal year 2017 is from the
workforce development fund for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
in Minnesota Statutes, section 116L.667.
This appropriation is for increases to existing
applicants who were awarded grants in fiscal
years 2016 and 2017.

(b) $500,000 in fiscal year 2017 is from the
workforce development fund for a grant to
Occupational Development Corporation, Inc.
in the city of Buhl to provide training and
employment opportunities for people with
disabilities and disadvantaged workers. This
is a onetime appropriation.

(c) $400,000 in fiscal year 2017 is from
the workforce development fund for
a grant to Northern Bedrock Historic
Preservation Corps for the pathway to the
preservation trades program for recruitment
of corps members, engagement of technical
specialists, development of a certificate
program, and skill development in historic
preservation for youth ages 18 to 25. This is
a onetime appropriation.

(d) $500,000 in fiscal year 2017 is from the
workforce development fund for a grant to
the North East Higher Education District to
purchase equipment for training programs
due to increased demand for job training
under the state dislocated worker program.
This is a onetime appropriation and is
available until June 30, 2018.

Subd. 4.

Vocational rehabilitation

-0-
1,800,000

This appropriation is from the workforce
development fund.

(a) $800,000 in fiscal year 2017 is from
the workforce development fund for grants
to day training and habilitation providers
to provide innovative employment options
and to advance community integration for
persons with disabilities as required under
the Minnesota Olmstead Plan. Eligible
day training and habilitation providers are
those who certify that they do not possess
a certification as provided by section 14(c)
of the Fair Labor Standards Act. Of this
amount, $250,000 is for a pilot program
for home-based, technology-enhanced
monitoring of persons with disabilities. This
is a onetime appropriation and is available
until June 30, 2018.

(b) $1,000,000 in fiscal year 2017 is
from the workforce development fund for
rate increases to providers of extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. This is a onetime appropriation.

Sec. 3. DEPARTMENT OF LABOR AND
INDUSTRY

$
-0-
$
350,000
Appropriations by Fund
General
100,000
Workforce
Development
250,000

(a) $250,000 in fiscal year 2017 is from
the workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178. This amount is added
to the base appropriation for this purpose.

(b) $100,000 in fiscal year 2017 is to
provide outreach and education concerning
requirements under state or federal law
governing removal of architectural barriers
that limit access to public accommodations
by persons with disabilities and resources
that are available to comply with
those requirements. This is a onetime
appropriation.

Sec. 4. EXPLORE MINNESOTA TOURISM

$
-0-
$
1,073,000

(a) $300,000 in fiscal year 2017 is for a
grant to the Mille Lacs Tourism Council
to enhance marketing activities related to
tourism promotion in the Mille Lacs Lake
area. This is a onetime appropriation.

(b) $773,000 in fiscal year 2017 is to
establish a pilot project to assist in funding
and securing major events benefiting
communities throughout the state. The pilot
project must measure the economic impact
of visitors on state and local economies,
increased lodging and nonlodging sales taxes
in addition to visitor spending, and increased
media awareness of the state as an event
destination. This is a onetime appropriation.
Of this amount, $100,000 is for a grant to
the St. Louis County Historical Society for a
project, in collaboration with the Erie Mining
history book project team, to research,
document, publish, preserve, and exhibit the
history of taconite mining in Minnesota.

Sec. 5. HOUSING FINANCE AGENCY

$
-0-
$
1,750,000

(a) $500,000 in fiscal year 2017 is to establish
a grant program within the housing trust fund
for the exploited families rental assistance
program. This is a onetime appropriation and
is available until June 30, 2019.

(b) $500,000 in fiscal year 2017 is for a
competitive grant program to fund a housing
project or projects in a community or
communities: (1) that have low housing
vacancy rates; and (2) that have an education
and training center for jobs in agriculture,
farm business management, health care
fields, or other fields with anticipated
significant job growth potential. A grant or
grants must be no more than 50 percent of
the total development costs for the project.
Funds for a grant or grants made in this
section must be to a housing project or
projects that have financial and in-kind
contributions from nonagency sources
that when combined with a grant under
this section are sufficient to complete the
housing project. Funds must be used to
create new housing units either through
new construction or through acquisition and
rehabilitation of a building or buildings not
currently used for housing. If funds remain
uncommitted at the end of fiscal year 2017,
the agency may transfer the uncommitted
funds to the housing development fund and
use the funds for the economic development
and housing challenge program under
Minnesota Statutes, section 462A.33. This is
a onetime appropriation.

(c) $750,000 in fiscal year 2017 is for the
Workforce and Affordable Homeownership
Development Program under Minnesota
Statutes, section 462A.38. This is a onetime
appropriation and is available until June 30,
2019.

Sec. 6. COMMERCE

$
-0-
$
1,332,000

(a) $832,000 in fiscal year 2017 is for energy
regulation and planning unit staff.

(b) $500,000 in fiscal year 2017 is for
additional actuarial work to prepare for
implementation of principle-based reserves.
This appropriation is contingent on
enactment of 2016 HF No. 3384. The base
appropriation for this purpose is $412,000.

Sec. 7. PUBLIC UTILITIES COMMISSION

$
225,000
$
577,000

The amounts appropriated are in addition
to those appropriated in Laws 2015, First
Special Session chapter 1. The base
amount for fiscal year 2018 and thereafter
is $514,000.

Sec. 8.

Laws 2014, chapter 312, article 2, section 14, is amended to read:


Sec. 14. ASSIGNED RISK TRANSFER.

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

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

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

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

(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner
of management and budget shall transfer to the assigned risk plan under Minnesota
Statutes, section 79.252
general fund, any unencumbered or unexpended balance of the
appropriations under paragraphs (c) and (d) remaining on June 30, 2017 2016, or the date
the commissioner of commerce determines that an excess surplus in the assigned risk plan
does not exist, whichever occurs earlier.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9.

Laws 2014, chapter 312, article 2, section 15, is amended to read:


Sec. 15. WORKERS' COMPENSATION SYSTEM REFORM; USE OF
FUNDS.

(a) The appropriations under section 14 to the commissioner of labor and industry
are for reform of the workers' compensation system. Funds appropriated under section
14, paragraphs (c) and (d), may be expended by the commissioner only after the advisory
council on workers' compensation created under Minnesota Statutes, section 175.007, has
approved a new system including, but not limited to: a Medicare-based diagnosis-related
group (MS-DRG) or similar system for payment of workers' compensation inpatient
hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up
to $100,000 may be used by the commissioner to develop and implement the new system
approved by the advisory council on workers' compensation.

(b) Funds available for expenditure under paragraph (a) may be used by the
commissioner for reimbursement of expenditures that are reasonable and necessary to
defray the costs of the implementation by hospitals, insurers, and self-insured employers
of the new system including, but not limited to: a Medicare-based diagnosis-related group
(MS-DRG) or similar system for payment of workers' compensation inpatient hospital
services, litigation expense reform, worker safety training, administrative costs, or other
related system reform.

(c) For the purposes of this section, reasonable and necessary system reform and
implementation costs include, but are not limited to:

(1) the cost of analyzing data to determine the anticipated costs and savings of
implementing the new system;

(2) the cost of analyzing system or organizational changes necessary for
implementation;

(3) the cost of determining how an organization would implement group or other
software;

(4) the cost of upgrading existing software or purchasing new software and other
technology upgrades needed for implementation;

(5) the cost of educating and training staff about the new system as applied to
workers' compensation; and

(6) the cost of integrating the new system with electronic billing and remittance
systems.

(d) This section expires June 30, 2016.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 3,
is amended to read:


Subd. 3.

Workforce Development

Appropriations by Fund
General
2,189,000
1,789,000
Workforce
Development
17,567,000
16,767,000

(a) $1,039,000 each year from the general
fund and $3,104,000 each year from the
workforce development fund are for the adult
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
adult workforce development competitive
grant program. All grant awards shall be
for two consecutive years. Grants shall be
awarded in the first year.

(b) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561, to
provide employment and career advising to
youth, including career guidance in secondary
schools, to address the youth career advising
deficiency, to carry out activities outlined
in Minnesota Statutes, section 116L.561,
to provide support services, and to provide
work experience to youth in the workforce
service areas. The funds in this paragraph
may be used for expansion of the pilot
program combining career and higher
education advising in Laws 2013, chapter 85,
article 3, section 27. Activities in workforce
services areas under this paragraph may
serve all youth up to age 24.

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

(d) $450,000 each year is from the workforce
development fund for a grant to Minnesota
Diversified Industries, Inc., to provide
progressive development and employment
opportunities for people with disabilities.

(e) $3,348,000 each year is from the
workforce development fund for the "Youth
at Work" youth workforce development
competitive grant program. Of this amount,
up to five percent is for administration
and monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first
year.

(f) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs.

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

(h) $250,000 the first year and $250,000 the
second year are for pilot programs in the
workforce service areas to combine career
and higher education advising.

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

(j) $900,000 in fiscal year 2016 and
$1,100,000 in fiscal year 2017 are from the
workforce development fund for a grant to the
Minnesota High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two-
and four-year college students in their field
of study. The internship opportunities
must match students with paid internships
within STEM disciplines at small, for-profit
companies located in the seven-county
metropolitan area, having fewer than 150
total employees; or at small or medium,
for-profit companies located outside of the
seven-county metropolitan area, having
fewer than 250 total employees. At least 200
students must be matched in the first year
and at least 250 students must be matched in
the second year. Selected hiring companies
shall receive from the grant 50 percent of the
wages paid to the intern, capped at $2,500
per intern. The program must work toward
increasing the participation among women or
other underserved populations.

(k) $50,000 each year is from the workforce
development fund for a grant to the St. Cloud
Area Somali Salvation Youth Organization
for youth development and crime prevention
activities. Grant funds may be used to
train and place mentors in elementary and
secondary schools; for athletic, social,
and other activities to foster leadership
development; to provide a safe place for
participating youth to gather after school, on
weekends, and on holidays; and activities to
improve the organizational and job readiness
skills of participating youth. This is a
onetime appropriation and is available until
June 30, 2019. Funds appropriated the first
year are available for use in the second year
of the biennium.

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

(m) $400,000 in fiscal year 2016 is for a grant
to YWCA Saint Paul for training and job
placement assistance, including commercial
driver's license training, through the job
placement and retention program. This is a
onetime appropriation.

(n) $800,000 in fiscal year 2016 is from
the workforce development fund for
the customized training program for
manufacturing industries under article 2,
section 24. This is a onetime appropriation
and is available in either year of the
biennium. Of this amount:

(1) $350,000 is for a grant to Central Lakes
College for the purposes of this paragraph;

(2) $250,000 is for Minnesota West
Community and Technical College for the
purposes of this paragraph; and

(3) $200,000 is for South Central College for
the purposes of this paragraph.

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

(p) $200,000 in fiscal year 2016 and $200,000
in fiscal year 2017 are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide training to
hard-to-train individuals. This is a onetime
appropriation.

(q) $200,000 in fiscal year 2016 is from
the workforce development fund for the
foreign-trained health care professionals
grant program modeled after the pilot
program conducted under Laws 2006,
chapter 282, article 11, section 2, subdivision
12, to encourage state licensure of
foreign-trained health care professionals,
including: physicians, with preference given
to primary care physicians who commit
to practicing for at least five years after
licensure in underserved areas of the state;
nurses; dentists; pharmacists; mental health
professionals; and other allied health care
professionals. The commissioner must
collaborate with health-related licensing
boards and Minnesota workforce centers to
award grants to foreign-trained health care
professionals sufficient to cover the actual
costs of taking a course to prepare health
care professionals for required licensing
examinations and the fee for the state
licensing examinations. When awarding
grants, the commissioner must consider the
following factors:

(1) whether the recipient's training involves
a medical specialty that is in high demand in
one or more communities in the state;

(2) whether the recipient commits to
practicing in a designated rural area or an
underserved urban community, as defined in
Minnesota Statutes, section 144.1501;

(3) whether the recipient's language skills
provide an opportunity for needed health care
access for underserved Minnesotans; and

(4) any additional criteria established by the
commissioner.

This is a onetime appropriation and is
available until June 30, 2019.

Sec. 11.

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


Sec. 6. BUREAU OF MEDIATION
SERVICES

$
2,208,000
$
2,234,000
2,622,000

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

(b) $125,000 each year is for purposes of the
Public Employment Relations Board under
Minnesota Statutes, section 179A.041.

(c) $256,000 each year is in fiscal year
2016 and $394,000 in fiscal year 2017 are

for the Office of Collaboration and Dispute
Resolution under Minnesota Statutes, section
179.90. The base appropriation for this
purpose is $394,000 in fiscal year 2018 and
$394,000 in fiscal year 2019.
Of this amount,
$160,000 each year is for grants under
Minnesota Statutes, section 179.91, and
$96,000 each year is for intergovernmental
and public policy collaboration and operation
of the office.

(d) $250,000 is to complete the Case
Management System-Database Project Phase
II. This is a onetime appropriation.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2014, section 61A.24, is amended by adding a subdivision
to read:


Subd. 12b.

Mortality table; exception.

Notwithstanding subdivisions 12, 12a, or
any other law to the contrary, a company may use the Commissioners 2017 Standard
Ordinary Mortality Table in determining the minimum nonforfeiture standard for policies
issued on or after January 1, 2017.

Sec. 13.

Minnesota Statutes 2014, section 61A.25, is amended by adding a subdivision
to read:


Subd. 10.

Mortality table; exception.

Notwithstanding anything in this section,
or any other law to the contrary, a company may use the Commissioners 2017 Standard
Ordinary Mortality Table in determining the minimum valuation standard for policies
issued on or after January 1, 2017.

Sec. 14.

Minnesota Statutes 2014, section 116J.423, is amended to read:


116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.

Subdivision 1.

Created.

The Minnesota minerals 21st century fund is created
as a separate account in the treasury. Money in the account is appropriated to the
commissioner of employment and economic development for the purposes of this section.
All money earned by the account, loan repayments of principal and interest, and earnings
on investments must be credited to the account. For the purpose of this section, "fund"
means the Minnesota minerals 21st century fund. The commissioner shall operate the
account as a revolving account.

Subd. 2.

Use of fund.

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

Subd. 2a.

Grants authorized.

Notwithstanding subdivision 2, the commissioner
may use money in the fund to make grants to a municipality or county, or to a county
regional rail authority as appropriate, for public infrastructure needed to support an
eligible project under this section. Grant money may be used by the municipality, county,
or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff
of storm water; to predesign, design, construct, and equip roads and rail lines; and, in
cooperation with municipal utilities, to predesign, design, construct, and equip natural
gas pipelines, electric infrastructure, water supply systems, and wastewater collection and
treatment systems. Grants made under this subdivision are available until expended.

Subd. 3.

Requirements prior to committing funds.

The commissioner, prior to
making a commitment for a loan or equity investment must, at a minimum, conduct due
diligence research regarding the proposed loan or equity investment, including contracting
with professionals as needed to assist in the due diligence.

Subd. 4.

Requirements for fund disbursements.

The commissioner may make
conditional commitments for loans or equity investments but disbursements of funds
pursuant to a commitment may not be made until commitments for the remainder of a
project's funding are made that are satisfactory to the commissioner and disbursements
made from the other commitments sufficient to protect the interests of the state in its
loan or investment.

Subd. 5.

Company contribution.

The commissioner may provide loans or equity
investments that match, in a proportion determined by the commissioner, an investment
made by the owner of a facility.

Sec. 15.

Minnesota Statutes 2014, section 116J.424, is amended to read:


116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.

The commissioner of the Iron Range Resources and Rehabilitation Board with
approval by the board, shall may provide an equal match for any loan or equity investment
made for a facility project located in the tax relief area defined in section 273.134,
paragraph (b)
, by the Minnesota minerals 21st century fund created by section 116J.423.
The match may be in the form of a loan or equity investment, notwithstanding whether
the fund makes a loan or equity investment. The state shall not acquire an equity interest
because of an equity investment or loan by the board and the board at its sole discretion
shall decide what interest it acquires in a project. The commissioner of employment and
economic development may require a commitment from the board to make the match
prior to disbursing money from the fund.

Sec. 16.

Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:


Subdivision 1.

Grant program established; purpose.

(a) The commissioner shall
make grants to counties or cities to provide up to 50 percent of the capital costs of public
infrastructure necessary for an eligible economic development project. The county or city
receiving a grant must provide for the remainder of the costs of the project, either in cash
or in kind. In-kind contributions may include the value of site preparation other than the
public infrastructure needed for the project.

(b) The purpose of the grants made under this section is to keep or enhance jobs in
the area, increase the tax base, or to expand or create new economic development.

(c) In awarding grants under this section, the commissioner must adhere to the
criteria under subdivision 4.

(d) If the commissioner awards a grant for less than 50 percent of the project, the
commissioner shall provide the applicant and the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over economic
development finance a written explanation of the reason less than 50 percent of the capital
costs were awarded in the grant.

Sec. 17.

Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:


Subd. 2.

Eligible projects.

An economic development project for which a county or
city may be eligible to receive a grant under this section includes:

(1) manufacturing;

(2) technology;

(3) warehousing and distribution;

(4) research and development;

(5) agricultural processing, defined as transforming, packaging, sorting, or grading
livestock or livestock products into goods that are used for intermediate or final
consumption, including goods for nonfood use; or

(6) industrial park development that would be used by any other business listed in
this subdivision even if no business has committed to locate in the industrial park at the
time the grant application is made
.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 18.

Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:


Subd. 4.

Application.

(a) The commissioner must develop forms and procedures
for soliciting and reviewing applications for grants under this section. At a minimum, a
county or city must include in its application a resolution of the county or city council
certifying that the required local match is available. The commissioner must evaluate
complete applications for eligible projects using the following criteria:

(1) the project is an eligible project as defined under subdivision 2;

(2) the project will is expected to result in or will attract substantial public and
private capital investment and provide substantial economic benefit to the county or city in
which the project would be located;

(3) the project is not relocating substantially the same operation from another
location in the state, unless the commissioner determines the project cannot be reasonably
accommodated within the county or city in which the business is currently located, or the
business would otherwise relocate to another state; and

(4) the project is expected to or will create or maintain retain full-time jobs.

(b) The determination of whether to make a grant for a site is within the discretion of
the commissioner, subject to this section. The commissioner's decisions and application of
the priorities criteria are not subject to judicial review, except for abuse of discretion.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 19.

Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:


Subd. 6.

Maximum grant amount.

A county or city may receive no more than
$1,000,000 $2,000,000 in two years for one or more projects.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 20.

Minnesota Statutes 2014, section 116J.68, is amended to read:


116J.68 BUREAU OF SMALL BUSINESS.

Subdivision 1.

Generally.

The Bureau of Small Business within the business
assistance center shall serve as a clearinghouse, technical assistance center, and referral
service for information and other assistance needed by small businesses including small
targeted group businesses and small businesses located in an economically disadvantaged
area.

Subd. 2.

Duties.

The bureau shall:

(1) provide information and assistance with respect to all aspects of business
planning, business finance, and business management related to the start-up, operation, or
expansion of a small business in Minnesota;

(2) refer persons interested in the start-up, operation, or expansion of a small
business in Minnesota to assistance programs sponsored by federal agencies, state
agencies, educational institutions, chambers of commerce, civic organizations, community
development groups, private industry associations, and other organizations;

(3) plan, develop, and implement a master file of information on small business
assistance programs of federal, state, and local governments, and other public and private
organizations so as to provide comprehensive, timely information to the bureau's clients;

(4) employ staff with adequate and appropriate skills and education and training for
the delivery of information and assistance;

(5) seek out and utilize, to the extent practicable, contributed expertise and services
of federal, state, and local governments, educational institutions, and other public and
private organizations;

(6) maintain a close and continued relationship with the director of the procurement
program within the Department of Administration so as to facilitate the department's
duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted
group business and economically disadvantaged business program of the state;

(7) develop an information system which will enable the commissioner and other
state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
business development and growth in the state. All executive branch agencies of state
government and the secretary of state shall to the extent practicable, assist the bureau in
the development and implementation of the information system;

(8) establish and maintain a toll-free telephone number, e-mail account, and other
electronic contact mediums determined by the commissioner
so that all small business
persons anywhere in the state can call may contact the bureau office for assistance.
An outreach program shall be established to make the existence of the bureau and the
assistance and services the bureau may provide to small businesses
well known to its
potential clientele throughout the state. If the small business person requires a referral to
another provider the bureau may use the business assistance referral system established by
the Minnesota Project Outreach Corporation;

(9) conduct research and provide data as required by the state legislature;

(10) develop and publish material on all aspects of the start-up, operation, or
expansion of a small business in Minnesota;

(11) collect and disseminate information on state procurement opportunities,
including information on the procurement process;

(12) develop a public awareness program through the use of regarding state
assistance programs for small businesses, including those programs specifically for
socially disadvantaged small business persons. The commissioner may utilize print and
electronic
newsletters, personal contacts, and advertising devices as defined in section
173.02, subdivision 16, social media, other
electronic and print news media advertising
about state assistance programs for small businesses, including those programs specifically
for socially disadvantaged small business persons
, and any other means determined by
the commissioner
;

(13) enter into agreements with the federal government and other public and private
entities to serve as the statewide coordinator or host agency for the federal small business
development center program under United States Code, title 15, section 648; and

(14) assist providers in the evaluation of their programs and the assessment of
their service area needs. The bureau may establish model evaluation techniques and
performance standards for providers to use.

Sec. 21.

Minnesota Statutes 2014, section 116J.8737, subdivision 3, is amended to read:


Subd. 3.

Certification of qualified investors.

(a) Investors may apply to the
commissioner for certification as a qualified investor for a taxable year. The application
must be in the form and be made under the procedures specified by the commissioner,
accompanied by an application fee of $350. Application fees are deposited in the small
business investment tax credit administration account in the special revenue fund. The
application for certification for 2010 must be made available on the department's Web
site by August 1, 2010. Applications for subsequent years' certification must be made
available on the department's Web site by November 1 of the preceding year.

(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the investor as satisfying the conditions required
of a qualified investor, request additional information from the investor, or reject the
application for certification. If the commissioner requests additional information from the
investor, the commissioner must either certify the investor or reject the application within
30 days of receiving the additional information. If the commissioner neither certifies the
investor nor rejects the application within 30 days of receiving the original application or
within 30 days of receiving the additional information requested, whichever is later, then
the application is deemed rejected, and the commissioner must refund the $350 application
fee. An investor who applies for certification and is rejected may reapply.

(c) To receive certification, an investor must (1) be a natural person; and (2) certify
to the commissioner that the investor will only invest in a transaction that is exempt under
section 80A.46, clause (13) or (14), in a security exempt under section 80A.461, or in a
security registered under section 80A.50, paragraph (b).

(d) In order for a qualified investment in a qualified small business to be eligible
for tax credits, a qualified investor who makes the investment must have applied for
and received certification for the calendar year prior to making the qualified investment,
except in the case of an investor who is not an accredited investor, within the meaning of
Regulation D of the Securities and Exchange Commission, Code of Federal Regulations,
title 17, section 230.501, paragraph (a), application for certification may be made within
30 days after making the qualified investment.

EFFECTIVE DATE.

This section is effective for taxable years beginning after
December 31, 2015.

Sec. 22.

Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:


Subdivision 1.

Grant allowed.

The commissioner may provide a grant to a qualified
job training program from money appropriated for the purposes of this section as follows:

(1) a $9,000 an $11,000 placement grant paid to a job training program upon
placement in employment of a qualified graduate of the program; and

(2) a $9,000 an $11,000 retention grant paid to a job training program upon retention
in employment of a qualified graduate of the program for at least one year.

Sec. 23.

Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:


Subd. 2.

Qualified job training program.

To qualify for grants under this section,
a job training program must satisfy the following requirements:

(1) the program must be operated by a nonprofit corporation that qualifies under
section 501(c)(3) of the Internal Revenue Code;

(2) the program must spend at least, on average, $15,000 or more per graduate
of the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics, and communications;

(ii) thinking skills, such as reasoning, creative thinking, decision making, and
problem solving; and

(iii) personal qualities, such as responsibility, self-esteem, self-management,
honesty, and integrity;

(4) the program must may provide income supplements, when needed, to participants
for housing, counseling, tuition, and other basic needs;

(5) the program's education and training course must last for an average of at least
six months;

(6) individuals served by the program must:

(i) be 18 years of age or older;

(ii) have federal adjusted gross income of no more than $11,000 $12,000 per year in
the calendar year immediately before entering the program;

(iii) have assets of no more than $7,000 $10,000, excluding the value of a
homestead; and

(iv) not have been claimed as a dependent on the federal tax return of another person
in the previous taxable year; and

(7) the program must be certified by the commissioner of employment and economic
development as meeting the requirements of this subdivision.

Sec. 24.

Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:


Subd. 2.

Board.

"Board" means the Urban Initiative Board. Minnesota emerging
entrepreneur program.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 25.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 3a.

Department.

"Department" means the Department of Employment and
Economic Development.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 26.

Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:


Subd. 4.

Low-income area.

"Low-income area" means:

(1) Minneapolis, St. Paul;

(2) those cities in the metropolitan area as defined in section 473.121, subdivision
2
, that have an average income that is below 80 percent of the median income for a
four-person family as of the latest report by the United States Census Bureau; and

(3) those cities in the metropolitan area, which contain two or more contiguous
census tracts in which the average family income is less than 80 percent of the median
family income for the Twin Cities
the area outside the metropolitan area.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 27.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 4a.

Low-income person.

"Low-income person" means a person who has
an annual income, adjusted for family size, of not more than 80 percent of the area
median family income for the county of residence as of the latest report by the United
States Census Bureau.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 28.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 4b.

Metropolitan area.

"Metropolitan area" has the meaning given in section
473.121, subdivision 2.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 29.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 6.

Minority person.

"Minority person" means a person belonging to a racial
or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 30.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 7.

Program.

"Program" means the Minnesota emerging entrepreneur
program created by this chapter.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 31.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 8.

Veteran.

"Veteran" means a veteran as defined in section 197.447.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 32.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 9.

Persons with disabilities.

"Persons with disabilities" means an individual
with a disability, as defined under the Americans with Disabilities Act, United States
Code, title 42, section 12102.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 33.

Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:


Subdivision 1.

Creation; Membership.

The Urban Initiative Minnesota Emerging
Entrepreneur
Board is created and consists of the commissioner of employment and
economic development, the commissioner of human rights, the chair of the Metropolitan
Council, and eight 12 members from the general public appointed by the governor. Six
Nine of the public members must be representatives from minority business enterprises.
No more than four six of the public members may be of one gender. At least one member
must be a representative from a veteran-owned business, and at least one member must
be a representative from a business owned by a person with disabilities. Appointments
must ensure balanced geographic representation. At least half of the public members must
have experience working to address racial income disparities.
All public members must be
experienced in business or economic development.

EFFECTIVE DATE.

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