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HF 2976

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/27/2014 03:20pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/12/2014
1st Engrossment Posted on 03/27/2014

Current Version - 1st Engrossment

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A bill for an act
relating to state government; making supplemental appropriations for jobs and
economic development; appropriating money to the Department of Employment
and Economic Development and Department of Labor and Industry; providing
grants for broadband infrastructure; providing various business development
grants and loans; creating an Office of Regenerative Medicine Development;
modifying workforce program outcomes; creating job training programs;
modifying workers' compensation provisions; modifying a meeting provision
for a port authority; requiring reports; amending Minnesota Statutes 2012,
sections 116L.98; 176.129, subdivisions 2a, 7; 176.135, subdivision 7; 176.136,
subdivision 1a; 176.231, subdivision 2; 176.305, subdivision 1a; 181A.07, by
adding a subdivision; 469.084, by adding a subdivision; Minnesota Statutes 2013
Supplement, section 176.011, subdivision 15; Laws 2013, chapter 85, article 1,
sections 3, subdivisions 2, 6; 13, subdivision 5; proposing coding for new law in
Minnesota Statutes, chapter 116J; repealing Minnesota Statutes 2012, sections
116J.997; 175.006, subdivision 1; 175.08; 175.14; 175.26; 176.1311; 176.136,
subdivision 3; 176.2615; 176.641.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 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 "2014" and "2015" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
Appropriations for the fiscal year ending June 30, 2014, are effective the day following
final enactment. Reductions may be taken in either fiscal year.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2014
new text end
new text begin 2015
new text end

Sec. 2. new text beginDEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 0
new text end
new text begin $
new text end
new text begin 38,350,000
new text end

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

new text begin Subd. 2. new text end

new text begin Business and Community
Development
new text end

new text begin 0
new text end
new text begin 36,250,000
new text end

new text begin (a) $25,000,000 in fiscal year 2015 is for
grants for the development of broadband
infrastructure under Minnesota Statutes,
section 116J.395, or to supplement revenues
raised by bonds sold by local units of
government for broadband infrastructure
development. This is a onetime appropriation
and is available until June 30, 2017.
new text end

new text begin (b) $450,000 in fiscal year 2015 is from the
general fund for one or more contracts with
an independent organization to continue to:
new text end

new text begin (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
showing the availability of broadband service
at various upload and download speeds
throughout Minnesota, in order to measure
progress in achieving the state's broadband
goals established in Minnesota Statutes,
section 237.012;
new text end

new text begin (2) analyze the deployment data collected to
help inform future investments in broadband
infrastructure; and
new text end

new text begin (3) conduct business and residential surveys
that measure broadband adoption and use in
the state.
new text end

new text begin Data provided by a broadband provider to the
contractor under this paragraph is nonpublic
data under Minnesota Statutes, section 13.02,
subdivision 9. Maps produced under this
paragraph are public data under Minnesota
Statutes, section 13.03.
new text end

new text begin (c) $1,000,000 in fiscal year 2015 is from
the general fund for a grant to the Southwest
Initiative Foundation for business revolving
loans or other lending programs. This is a
onetime appropriation and is available until
expended.
new text end

new text begin (d) $1,000,000 in fiscal year 2015 is from the
general fund for a grant to the West Central
Initiative Foundation for business revolving
loans or other lending programs. This is a
onetime appropriation and is available until
expended.
new text end

new text begin (e) $1,000,000 in fiscal year 2015 is from
the general fund for a grant to the Southern
Minnesota Initiative Foundation for business
revolving loans or other lending programs.
This is a onetime appropriation and is
available until expended.
new text end

new text begin (f) $1,000,000 in fiscal year 2015 is from the
general fund for a grant to the Northwest
Minnesota Foundation for business revolving
loans or other lending programs. This is a
onetime appropriation and is available until
expended.
new text end

new text begin (g) $1,000,000 in fiscal year 2015 is from
the general fund for a grant to the Initiative
Foundation for business revolving loans or
other lending programs. This is a onetime
appropriation and is available until expended.
new text end

new text begin (h) $1,000,000 in fiscal year 2015 is from
the general fund for a grant to the Northland
Foundation for business revolving loans or
other lending programs. This is a onetime
appropriation and is available until expended.
new text end

new text begin (i) $1,000,000 in fiscal year 2015 is from the
general fund for the urban challenge grants
program under Minnesota Statutes, section
116M.18. Funds available under this section
must be allocated as follows: (1) 50 percent
of the funds must be allocated for projects
in the counties of Dakota, Ramsey, and
Washington; and (2) 50 percent of the funds
must be allocated for projects in the counties
of Anoka, Carver, Hennepin, and Scott.
new text end

new text begin (j) $500,000 in fiscal year 2015 is from the
general 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, to
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
and is available until expended.
new text end

new text begin (k) $750,000 in fiscal year 2015 is from the
general fund for the innovation voucher pilot
program in article 2, section 9. This is a
onetime appropriation and is available until
expended. Of this amount, up to five percent
may be used for administration. Vouchers
require a 50 percent match by recipients.
new text end

new text begin (l) $1,600,000 in fiscal year 2015 is
from the general fund for the Minnesota
Jobs Skills Partnership program under
Minnesota Statutes, section 116L.02. Of this
appropriation, $600,000 is onetime and is
available until expended and $1,000,000 is
added to the agency's base budget each year
for fiscal years 2016 and 2017.
new text end

new text begin (m)(1) $500,000 in fiscal year 2015 is
from the general fund for grants to Women
Venture and the Women's Business Center
at Northeast Entrepreneur Fund to facilitate
and promote the creation and expansion of
women-owned businesses in Minnesota.
Funds available under this paragraph must
be allocated equally among grant recipients.
This is a onetime appropriation. Grant funds
may be used only for the purposes under
clause (2) except that up to ten percent of
each grant award may be used by grant
recipients for administrative costs.
new text end

new text begin (2) Grants awarded under this paragraph
must be used for: entrepreneurial training,
mentoring, and technical assistance
for the startup or expansion of eligible
women-owned businesses; development of
networks of potential investors for eligible
women-owned businesses; and development
of recruitment programs for mid-career
women with an interest in starting eligible
women-owned businesses.
new text end

new text begin (3) For the purposes of this paragraph,
"eligible women-owned business" means a
business entity: that is at least 51 percent
female-owned or, in the case of a publicly
traded business, at least 51 percent of the
stock is female-owned; whose management
and daily operations are controlled by
women; that is organized for profit; that is
projected to generate at least $500,000 in
annual revenue and create at least ten jobs,
each of which pays an annual income equal
to at least 200 percent of the federal poverty
guideline adjusted for a family size of four;
and that is in the field of construction;
transportation; warehousing; agriculture;
mining; finance; insurance; professional,
technical, or scientific services; technology;
or other industries with businesses meeting
the revenue and job creation requirements
of this clause.
new text end

new text begin (4) If an appropriation for this purpose
is enacted more than once in the 2014
legislative session, the appropriation must be
given effect only once.
new text end

new text begin (n) $450,000 in fiscal year 2015 is from the
general fund for the Office of Regenerative
Medicine under Minnesota Statutes, sections
116J.886 to 116J.8862.
new text end

new text begin Subd. 3. new text end

new text begin Workforce Development
new text end

new text begin 0
new text end
new text begin 1,600,000
new text end

new text begin (a) $75,000 in fiscal year 2015 is from
the general fund for workforce program
outcome activities under Minnesota Statutes,
section 116L.98. Up to five percent of
this appropriation may be used by the
commissioner for administration of the
program.
new text end

new text begin (b) $500,000 in fiscal year 2015 is from
the general fund to develop and implement
the women and nontraditional jobs grant
program under Minnesota Statutes, section
116L.99. Funds available under this section
must not supplant other funds available for
the same purposes. If an appropriation for
this purpose is enacted more than once in the
2014 legislative session, the appropriation
must be given effect only once.
new text end

new text begin (c) $1,000,000 in fiscal year 2015 is from the
general fund for training rebates under article
2, section 11. This is a onetime appropriation
and is available until expended.
new text end

new text begin (d) $25,000 in fiscal year 2015 is from the
general fund for the information technology
apprenticeship pilot program under article
2, section 13.
new text end

new text begin Subd. 4. new text end

new text begin General Support Services
new text end

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

new text begin $500,000 in fiscal year 2015 is for
establishing and operating the interagency
Olmstead Implementation Office. This is a
onetime appropriation and is available until
expended.
new text end

Sec. 3. new text beginDEPARTMENT OF LABOR AND
INDUSTRY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 0
new text end
new text begin $
new text end
new text begin 275,000
new text end

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

new text begin Subd. 2. new text end

new text begin Labor Standards and Apprenticeship
new text end

new text begin 0
new text end
new text begin 250,000
new text end

new text begin (a) $250,000 in fiscal year 2015 is from
the general fund for the labor education
advancement program under Minnesota
Statutes, section 178.11, to educate,
promote, assist, and support women to
enter apprenticeship programs in high-wage,
high-demand nontraditional occupations.
Funds available under this paragraph must
not supplant other funds available for the
same purpose. If an appropriation for this
purpose is enacted more than once in the
2014 legislative session, the appropriation
must be given effect only once.
new text end

new text begin (b) The base for the department is increased
by $70,000 each year for implementing and
administering a minimum wage inflation
adjustment. This adjustment is available only
if a law is enacted in the 2014 legislative
session that includes an automatic inflation
adjustment to the state minimum wage. The
availability of this appropriation is effective
in the same fiscal year that the inflation
adjustment is first effective.
new text end

new text begin (c) $25,000 in fiscal year 2015 is from the
general fund for the precision manufacturing
and health care services pilot program under
article 2, section 12.
new text end

Sec. 4.

Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:


Subd. 2.

Business and Community
Development

53,642,000
45,407,000
Appropriations by Fund
General
52,942,000
44,707,000
Remediation
700,000
700,000

(a)(1) $15,000,000 each year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. new text beginOf this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses.
new text endThis
appropriation is available until spent.

(2) Of the amount available under clause
(1), up to $3,000,000 in fiscal year 2014
is for a loan to facilitate initial investment
in the purchase and operation of a
biopharmaceutical manufacturing facility.
This loan is not subject to the loan limitations
under Minnesota Statutes, section 116J.8731,
and shall be forgiven by the commissioner
of employment and economic development
upon verification of meeting performance
goals. Purchases related to and for the
purposes of this loan award must be made
between January 1, 2013, and June 30, 2015.
The amount under this clause is available
until expended.

(3) Of the amount available under clause (1),
up to $2,000,000 is available for subsequent
investment in the biopharmaceutical facility
project in clause (2). The amount under this
clause is available until expended. Loan
thresholds under clause (2) must be achieved
and maintained to receive funding. Loans
are not subject to the loan limitations under
Minnesota Statutes, section 116J.8731, and
shall be forgiven by the commissioner of
employment and economic development
upon verification of meeting performance
goals. Purchases related to and for the
purposes of loan awards must be made during
the biennium the loan was received.

(4) Notwithstanding any law to the contrary,
the biopharmaceutical manufacturing facility
in this paragraph shall be deemed eligible
for the Minnesota job creation fund under
Minnesota Statutes, section 116J.8748,
by having at least $25,000,000 in capital
investment and 190 retained employees.

(5) For purposes of clauses (1) to (4),
"biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs
or medicinal preparations produced using
technology that uses biological systems,
living organisms, or derivatives of living
organisms, to make or modify products or
processes for specific use. The medical drugs
or medicinal preparations include but are not
limited to proteins, antibodies, nucleic acids,
and vaccines.

(b) $12,000,000 each year is for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses. This
appropriation is available until spent. The
base funding for this program shall be
$12,500,000 each year in the fiscal year
2016-2017 biennium.

(c) $1,272,000 each year is from the
general fund for contaminated site cleanup
and development grants under Minnesota
Statutes, sections 116J.551 to 116J.558. This
appropriation is available until expended.

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

(e) $1,425,000 the first year and $1,425,000
the second year are from the general fund for
the business development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
business development competitive grant
program. All grant awards shall be for two
consecutive years. Grants shall be awarded
in the first year.

(f) $4,195,000 each year is from the general
fund for the Minnesota job skills partnership
program under Minnesota Statutes, sections
116L.01 to 116L.17. If the appropriation for
either year is insufficient, the appropriation
for the other year is available. This
appropriation is available until spent.

(g) $6,000,000 the first year is from the
general fund for the redevelopment program
under Minnesota Statutes, section 116J.571.
This is a onetime appropriation and is
available until spent.

(h) $12,000 each year is from the general
fund for a grant to the Upper Minnesota Film
Office.

(i) $325,000 each year is from the general
fund for the Minnesota Film and TV Board.
The appropriation in each year is available
only upon receipt by the board of $1 in
matching contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
each year up to $50,000 is available on July
1 even if the required matching contribution
has not been received by that date.

(j) $100,000 each year is for a grant to the
Northern Lights International Music Festival.

(k) $5,000,000 each year is from the general
fund for a grant to the Minnesota Film
and TV Board for the film production jobs
program under Minnesota Statutes, section
116U.26. This appropriation is available
until expended. The base funding for this
program shall be $1,500,000 each year in the
fiscal year 2016-2017 biennium.

(l) $375,000 each year is from the general
fund for a grant to Enterprise Minnesota, Inc.,
for the small business growth acceleration
program under Minnesota Statutes, section
116O.115. This is a onetime appropriation.

(m) $160,000 each year is from the general
fund for a grant to develop and implement
a southern and southwestern Minnesota
initiative foundation collaborative pilot
project. Funds available under this paragraph
must be used to support and develop
entrepreneurs in diverse populations in
southern and southwestern Minnesota. This
is a onetime appropriation and is available
until expended.

(n) $100,000 each year is from the general
fund for the Center for Rural Policy
and Development. This is a onetime
appropriation.

(o) $250,000 each year is from the general
fund for the Broadband Development Office.

(p) $250,000 the first year is from the
general fund for a onetime grant to the St.
Paul Planning and Economic Development
Department for neighborhood stabilization
use in NSP3.

(q) $1,235,000 the first year is from the
general fund for a onetime grant to a city
of the second class that is designated as an
economically depressed area by the United
States Department of Commerce. The
appropriation is for economic development,
redevelopment, and job creation programs
and projects. This appropriation is available
until expended.

(r) $875,000 each year is from the general
fund for the Host Community Economic
Development Program established in
Minnesota Statutes, section 116J.548.

(s) $750,000 the first year is from the general
fund for a onetime grant to the city of Morris
for loans or grants to agricultural processing
facilities for energy efficiency improvements.
Funds available under this section shall be
used to increase conservation and promote
energy efficiency through retrofitting existing
systems and installing new systems to
recover waste heat from industrial processes
and reuse energy. This appropriation is not
available until the commissioner determines
that deleted text beginat least $1,250,000deleted text endnew text begin a match of $750,000
new text end is committed to the project from nonpublic
sources. This appropriation is available until
expended.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2013.
new text end

Sec. 5.

Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:


Subd. 6.

Vocational Rehabilitation

27,691,000
27,691,000
Appropriations by Fund
General
20,861,000
20,861,000
Workforce
Development
6,830,000
6,830,000

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

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

(c) $5,745,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund is for extended
employment services for persons with
severe disabilities under Minnesota Statutes,
section 268A.15. The allocation of extended
employment funds to Courage Center from
July 1, 2012 to June 30, 2013 must be
contracted to Allina Health systems from
July 1, 2013 to June 30, deleted text begin2014deleted text endnew text begin 2015new text end to provide
extended employment services in accordance
with Minnesota Rules, parts 3300.2005 to
3300.2055.

(d) $2,055,000 each year is from the general
fund for grants to programs that provide
employment support services to persons with
mental illness under Minnesota Statutes,
sections 268A.13 and 268A.14. The base
appropriation for this program is $1,555,000
each year in the fiscal year 2016-2017
biennium.

Sec. 6.

Laws 2013, chapter 85, article 1, section 13, subdivision 5, is amended to read:


Subd. 5.

Telecommunications

1,949,000
2,249,000
Appropriations by Fund
General
1,009,000
1,009,000
Special Revenue
940,000
1,240,000

$940,000 in fiscal year 2014 and $1,240,000
in fiscal year 2015 are appropriated to the
commissioner from the telecommunication
access fund for the following transfers. This
appropriation is added to the department's
base.

(1) $500,000 in fiscal year 2014 and $800,000
in fiscal year 2015 to the commissioner of
human services to supplement the ongoing
operational expenses of the Commission
of Deaf, DeafBlind, and Hard-of-Hearing
Minnesotans;

(2) $290,000 in fiscal year 2014 and $290,000
in fiscal year 2015 to the chief information
officer for the purpose of coordinating
technology accessibility and usability; and

(3) $150,000 in fiscal year 2014 and $150,000
in fiscal year 2015 to the Legislative
Coordinating Commission for captioning of
legislative coveragenew text begin and for a consolidated
access fund for other state agencies. These
transfers are subject to Minnesota Statutes,
section 16A.281
new text end.

ARTICLE 2

ECONOMIC DEVELOPMENT AND WORKFORCE DEVELOPMENT

Section 1.

new text begin [116J.394] DEFINITIONS.
new text end

new text begin (a) For the purposes of sections 116J.394 to 116J.396, the following terms have
the meanings given them.
new text end

new text begin (b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
subdivision 1, paragraph (b).
new text end

new text begin (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.
new text end

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

new text begin (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.
new text end

new text begin (f) "Middle-mile infrastructure" means broadband infrastructure that links a
broadband service provider's core network infrastructure to last-mile infrastructure.
new text end

new text begin (g) "Political subdivision" means any county, city, town, school district, special
district or other political subdivision, or public corporation.
new text end

new text begin (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 megabits per second download and five to ten megabits per second upload.
new text end

new text begin (i) "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service at speeds that meet a Federal Communications
Commission threshold of four megabits per second download and one megabit per second
upload.
new text end

Sec. 2.

new text begin [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established under the Department
of Employment and Economic Development to award grants to eligible applicants in order
to promote the expansion of access to broadband service in unserved or underserved
areas of the state.
new text end

new text begin Subd. 2. new text end

new text begin Eligible expenditures. new text end

new text begin Grants may be awarded under this section to fund
the acquisition and installation of middle-mile and last-mile infrastructure that support
broadband service scalable to speeds of at least 100 megabits per second download and
100 megabits per second upload.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

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

new text begin (1) an incorporated business or a partnership;
new text end

new text begin (2) a political subdivision;
new text end

new text begin (3) an Indian tribe;
new text end

new text begin (4) a Minnesota nonprofit organization organized under chapter 317A;
new text end

new text begin (5) a Minnesota cooperative association organized under chapter 308A or 308B; and
new text end

new text begin (6) a Minnesota limited liability corporation organized under chapter 322B for the
purpose of expanding broadband access.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin 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.
new text end

new text begin Subd. 5. new text end

new text begin Application contents. new text end

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

new text begin (1) the location of the project;
new text end

new text begin (2) the kind and amount of broadband infrastructure to be purchased for the project;
new text end

new text begin (3) evidence regarding the unserved or underserved nature of the community in
which the project is to be located;
new text end

new text begin (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;
new text end

new text begin (5) significant community institutions that will benefit from the proposed project;
new text end

new text begin (6) evidence of community support for the project;
new text end

new text begin (7) the total cost of the project;
new text end

new text begin (8) sources of funding or in-kind contributions for the project that will supplement
any grant award; and
new text end

new text begin (9) any additional information requested by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Awarding grants. new text end

new text begin (a) In evaluating applications and awarding grants, the
commissioner shall give priority to applications that are constructed in areas identified by
the director of the Office of Broadband Development as unserved.
new text end

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

new text begin (1) are constructed in areas identified by the director of the Office of Broadband
Development as underserved;
new text end

new text begin (2) offer new or substantially upgraded broadband service to important community
institutions including, but not limited to, libraries, educational institutions, public safety
facilities, and healthcare facilities;
new text end

new text begin (3) facilitate the use of telemedicine and electronic health records;
new text end

new text begin (4) serve economically distressed areas of the state, as measured by indices of
unemployment, poverty, or population loss that are significantly greater than the statewide
average;
new text end

new text begin (5) provide technical support and train residents, businesses, and institutions in the
community served by the project to utilize broadband service;
new text end

new text begin (6) include a component to actively promote the adoption of the newly available
broadband services in the community;
new text end

new text begin (7) provide evidence of strong support for the project from citizens, government,
businesses, and institutions in the community;
new text end

new text begin (8) provide access to broadband service to a greater number of unserved or
underserved households and businesses; or
new text end

new text begin (9) leverage greater amounts of funding for the project from other private and
public sources.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [116J.396] BORDER-TO-BORDER BROADBAND FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin The border-to-border broadband fund account
is established as a separate account in the special revenue fund in the state treasury. The
commissioner shall credit to the account appropriations and transfers to the account.
Earnings, such as interest, dividends, and any other earnings arising from assets of the
account, must be credited to the account. Funds remaining in the account at the end of a
fiscal year are not canceled to the general fund, but remain in the account until expended.
The commissioner shall manage the account.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin Money in the account may be used only:
new text end

new text begin (1) for grant awards made under section 116J.395, including up to three percent of
the total amount appropriated for grants awarded under that section for costs incurred by
the Department of Employment and Economic Development to administer that section; or
new text end

new text begin (2) to supplement revenues raised by bonds sold by local units of government for
broadband infrastructure development.
new text end

new text begin Subd. 3. new text end

new text begin Restrictions. new text end

new text begin (a) Except as provided in paragraph (c), in any fiscal year, no
more than one-third of the funds expended from the account established in this section
shall be awarded to applicants located in areas whose household density exceeds 100
households per square mile, as determined by the state demographer.
new text end

new text begin (b) Except as provided in paragraph (c), in any fiscal year, no more than two-thirds
of the funds expended from the account established in this section shall be awarded to
applicants located in areas whose household density is less than 100 households per square
mile, as determined by the state demographer.
new text end

new text begin (c) If applications are insufficient to exhaust all funds available in a given grant
round under the restrictions imposed in paragraph (a) or (b), the unexpended funds may
be awarded to eligible applicants, as determined by the commissioner, irrespective of the
population density of the area in which the applicant is located.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin Money in the account is appropriated to the commissioner
for the purposes of subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [116J.886] CITATION; REGENERATIVE MEDICINE DEVELOPMENT
ACT.
new text end

new text begin Sections 116J.886 to 116J.8862 shall be known as the Regenerative Medicine
Development Act to promote private sector investment in regenerative medicine to
strengthen the state's economy, reduce the long-term costs related to treating debilitating
illnesses, advance the regenerative medicine industry, and facilitate and expand clinical
research opportunities in the state.
new text end

Sec. 5.

new text begin [116J.8861] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of sections 116J.886 to 116J.8862, the
following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Business development services. new text end

new text begin "Business development services"
means business incubator services and services to facilitate access to existing publicly
or privately financed grants, loans, or loan guarantees, and to support basic or applied
research, development of therapies, and development of pharmacologies and treatments
through preclinical or clinical trials.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 4. new text end

new text begin Office. new text end

new text begin "Office" means the Office of Regenerative Medicine Development
established under section 116J.8862.
new text end

new text begin Subd. 5. new text end

new text begin Regenerative medicine. new text end

new text begin "Regenerative medicine" means the process of
creating or using living, functional tissue to augment, repair, replace, or regenerate organs
and tissue that have been damaged by disease, injury, aging, or other biological processes.
new text end

new text begin Subd. 6. new text end

new text begin Regenerative medicine development project or project. new text end

new text begin "Regenerative
medicine development project" or "project" means any research, product development,
or commercial venture relating to basic, preclinical, or clinical work to produce a drug,
biological or chemical material, compound, or medical device designed to augment,
repair, replace, or regenerate organs and tissue that have been damaged by disease, injury,
aging, or other biological processes.
new text end

Sec. 6.

new text begin [116J.8862] OFFICE OF REGENERATIVE MEDICINE
DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Established. new text end

new text begin The commissioner shall establish an Office of
Regenerative Medicine Development to provide business development services and
outreach to promote and expand the regenerative medicine industry in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Consultation. new text end

new text begin The office must regularly consult with external stakeholders,
and must conduct public meetings to gather input. For the purposes of this section,
external stakeholders must include:
new text end

new text begin (1) the director of the Minnesota Stem Cell Institute at the University of Minnesota;
new text end

new text begin (2) a representative of a Minnesota-based trade association with the largest number
of bioscience companies as its membership;
new text end

new text begin (3) a representative of a Minnesota-based trade association with the largest number
of hospitals as its membership; and
new text end

new text begin (4) a representative of the largest private entity in Minnesota conducting research
into the benefits and uses of regenerative medicine.
new text end

new text begin Subd. 3. new text end

new text begin Outside funding. new text end

new text begin The commissioner, on behalf of the office, may accept
appropriations, gifts, grants, and bequests.
new text end

new text begin Subd. 4. new text end

new text begin Public infrastructure grant program. new text end

new text begin The commissioner shall coordinate
the services and activities of the office with the innovative business development public
infrastructure program under section 116J.435.
new text end

new text begin Subd. 5. new text end

new text begin Fiscal planning. new text end

new text begin By December 15, 2014, the commissioner shall develop a
long-term budget proposal for the office for fiscal years 2016 to 2024 to provide business
development services to regenerative medicine development projects.
new text end

new text begin Subd. 6. new text end

new text begin Project applications; selection. new text end

new text begin (a) The office shall provide business
development services to eligible regenerative medicine development projects approved by
the commissioner. To be eligible for business development services under this section, a
regenerative medicine development project must:
new text end

new text begin (1) demonstrate that at least 70 percent of the project costs are paid from nonstate
sources. The nonstate share may include federal funds and the prior purchase of scientific
equipment and materials incidental to the project, provided the purchase is completed not
more than two years prior to the approval of funding by the commissioner;
new text end

new text begin (2) not duplicate or supplant any other research or other project already conducted
by the federal government, or for which federal funding is available; and
new text end

new text begin (3) demonstrate that project activities are carried out directly by the grant recipient.
new text end

new text begin (b) The commissioner shall establish an application and process for approving
projects. Project applications must include the following information:
new text end

new text begin (1) evidence that the required match is available and committed;
new text end

new text begin (2) a detailed estimate, along with necessary supporting evidence, of the total cost
of the project;
new text end

new text begin (3) an assessment of the potential to attract new or continue existing public and
private research grant awards resulting from the project;
new text end

new text begin (4) a detailed risk analysis projecting the likelihood of clinical success resulting in
revenues or royalty payments from the project;
new text end

new text begin (5) an assessment of the likelihood for and potential cost savings for publicly
funded health care and long-term care programs from the project as a result of reducing
the incidence or lowering the treatment costs of debilitating illnesses and diseases over
the next ten years;
new text end

new text begin (6) a timeline indicating the major milestones of research projects and their
anticipated completion dates, including any previously completed similar research; and
new text end

new text begin (7) an estimate of any potential current and future employment opportunities
within the state, stimulation of economic growth, and the possibility for advancing the
development of commercially successful and affordable regenerative medicine products,
processes, or services. The application requirements are not in priority order and the
commissioner may weigh each item, depending upon the facts and circumstances, as
the commissioner considers appropriate.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin The commissioner, on behalf of the office, must report to the
legislative chairs with jurisdiction over economic development by January 1 of each
odd-numbered year on successful economic development projects implemented or
initiated since their last report and on plans for the upcoming year.
new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin The office established under this section expires June 30, 2024.
new text end

Sec. 7.

Minnesota Statutes 2012, section 116L.98, is amended to read:


116L.98 WORKFORCE PROGRAM OUTCOMES.

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

The commissioner shall develop and implement a
deleted text beginset of standard approaches for assessing the outcomes of workforce programs under this
chapter. The outcomes assessed must include, but are not limited to, periodic comparisons
of workforce program participants and nonparticipants
deleted text endnew text begin uniform outcome measurement
and reporting system for adult workforce-related programs funded in whole or in part by
the workforce development fund
new text end.

deleted text begin The commissioner shall also monitor the activities and outcomes of programs and
services funded by legislative appropriations and administered by the department on a
pass-through basis and develop a consistent and equitable method of assessing recipients
for the costs of its monitoring activities.
deleted text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates
awarded in recognition of an individual's attainment of measurable technical or
occupational skills necessary to obtain employment or advance with an occupation.
This definition does not include certificates awarded by workforce investment boards or
work-readiness certificates.
new text end

new text begin (c) "Exit" means to have not received service under a workforce program for 90
consecutive calendar days. The exit date is the last date of service.
new text end

new text begin (d) "Net impact" means the use of matched control groups and regression analysis to
estimate the impacts attributable to program participation net of other factors, including
observable personal characteristics and economic conditions.
new text end

new text begin (e) "Pre-enrollment" means the period of time before an individual was enrolled
in a workforce program.
new text end

new text begin Subd. 3. new text end

new text begin Uniform outcome report card; reporting by commissioner. new text end

new text begin (a) By
December 31 of each even-numbered year, the commissioner must report to the chairs
and ranking minority members of the committees of the house of representatives and the
senate having jurisdiction over economic development and workforce policy and finance
the following information separately for each of the previous two fiscal or calendar years,
for each program subject to the requirements of subdivision 1:
new text end

new text begin (1) the total number of participants enrolled;
new text end

new text begin (2) the median pre-enrollment wages based on participant wages for the second
through the fifth calendar quarters immediately preceding the quarter of enrollment
excluding those with zero income;
new text end

new text begin (3) the total number of participants with zero income in the second through fifth
calendar quarters immediately preceding the quarter of enrollment;
new text end

new text begin (4) the total number of participants enrolled in training;
new text end

new text begin (5) the total number of participants enrolled in training by occupational group;
new text end

new text begin (6) the total number of participants that exited the program and the average
enrollment duration of participants that have exited the program during the year;
new text end

new text begin (7) the total number of exited participants who completed training;
new text end

new text begin (8) the total number of exited participants who attained a credential;
new text end

new text begin (9) the total number of participants employed during three consecutive quarters
immediately following the quarter of exit, by industry;
new text end

new text begin (10) the median wages of participants employed during three consecutive quarters
immediately following the quarter of exit;
new text end

new text begin (11) the total number of participants employed during eight consecutive quarters
immediately following the quarter of exit, by industry; and
new text end

new text begin (12) the median wages of participants employed during eight consecutive quarters
immediately following the quarter of exit.
new text end

new text begin (b) The report to the legislature must contain participant information by education
level, race and ethnicity, gender, and geography, and a comparison of exited participants
who completed training and those who did not.
new text end

new text begin (c) The requirements of this section apply to programs administered directly by the
commissioner or administered by other organizations under a grant made by the department.
new text end

new text begin Subd. 4. new text end

new text begin Data to commissioner; uniform report card. new text end

new text begin (a) A recipient of a future
or past grant or direct appropriation made by or through the department must report data
to the commissioner by September 1 of each even-numbered year on each of the items in
subdivision 3 for each program it administers except wages and number employed, which
the department shall provide. The data must be in a format prescribed by the commissioner.
new text end

new text begin (b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants
and recipients regarding the data collection and reporting requirements under this
subdivision and must provide technical assistance to applicants and recipients to assist
in complying with the requirements of this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Information. new text end

new text begin The information collected and reported under subdivisions 3
and 4 shall be made available on the department's Web site.
new text end

new text begin Subd. 6. new text end

new text begin Limitations on future appropriations. new text end

new text begin (a) A program that is a recipient
of public funds and subject to the requirements of this section as of May 1, 2014, is not
eligible for additional state appropriations for any fiscal year beginning after June 30,
2015, unless all of the reporting requirements under subdivision 4 have been satisfied.
new text end

new text begin (b) A program with an initial request for funds on or after the effective date of this
section may be considered for receipt of public funds for the first two fiscal years only
if a plan that demonstrates how the data collection and reporting requirements under
subdivision 4 will be met has been submitted and approved by the commissioner. Any
subsequent request for funds after an initial request is subject to the requirements of
paragraph (a).
new text end

new text begin Subd. 7. new text end

new text begin Workforce program net impact analysis. new text end

new text begin (a) The commissioner
shall contract with an independent entity to conduct a net impact analysis for adult
workforce-related programs funded in whole or in part by the workforce development
fund. The requirements of this section apply to programs administered directly by the
commissioner or administered by other employment organizations under a grant made by
the department. The net impact methodology used by the independent entity should be
based on the methodology and evaluation design used in paragraph (c) and must include:
new text end

new text begin (1) standardized statistical methods for estimating the net impacts of workforce
services on individual employment, earnings, incarceration avoidance where appropriate,
and public benefits usage outcomes; and
new text end

new text begin (2) standardized cost-benefit analysis for understanding the monetary impacts of
workforce services from the participant and taxpayer points of view.
new text end

new text begin (b) By January 15 of the odd year of every other biennium, the commissioner must
report to the chairs and ranking minority members of the committees of the house of
representatives and senate having jurisdiction over economic development and workforce
policy and finance the following information for each program subject to this subdivision:
new text end

new text begin (1) the net impact of workforce services on individual employment, earnings, and
public benefits usage outcomes; and
new text end

new text begin (2) cost-benefit analyses for understanding the monetary impacts of workforce
services from the participant and taxpayer points of view. The report must be made
available to the public in an electronic format on the Department of Employment and
Economic Development's Web site.
new text end

new text begin The department is authorized to create and maintain data-sharing agreements with
other departments, including corrections, human services, and any other department that
are necessary to complete the analysis. The department shall supply the information
collected for use by the independent entity conducting net impact analysis pursuant to the
data practices requirements under chapters 13, 13A, 13B, and 13C.
new text end

new text begin (c) By January 15, 2015, the commissioner, in partnership with the Governor's
Workforce Development Council, must report to the chairs and ranking minority members
of the committees of the house of representatives and senate having jurisdiction over
economic development and workforce policy and finance the results of the net impact
pilot project already underway.
new text end

Sec. 8.

Minnesota Statutes 2012, section 181A.07, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Approved training programs. new text end

new text begin The commissioner may grant exemptions
from any provisions of sections 181A.01 to 181A.12 for minors participating in training
programs approved by the commissioner; or students in a valid apprenticeship program
taught by or required by a trade union, the commissioner of education, the commissioner
of employment and economic development, the Board of Trustees of the Minnesota State
Colleges and Universities, or the Board of Regents of the University of Minnesota.
new text end

Sec. 9. new text beginINNOVATION VOUCHER PILOT PROGRAM.
new text end

new text begin (a) The commissioner of employment and economic development shall develop and
implement an innovation voucher pilot program to provide financing to small businesses
to purchase technical assistance and services from public higher education institutions
and nonprofit entities to assist in the development or commercialization of innovative
new products or services.
new text end

new text begin (b) Funds available under this section may be used by a small business to access
technical assistance and other services including, but not limited to: research, technical
development, product development, commercialization, technology exploration, and
improved business practices.
new text end

new text begin (c) To be eligible for a voucher under this section, a business must enter into an
agreement with the commissioner that includes:
new text end

new text begin (1) a list of the technical assistance and services the business proposes to purchase
and from whom the services will be purchased; and
new text end

new text begin (2) deliverable outcomes in one of the following areas:
new text end

new text begin (i) research and development;
new text end

new text begin (ii) business model development;
new text end

new text begin (iii) market feasibility;
new text end

new text begin (iv) operations; or
new text end

new text begin (v) other outcomes determined by the commissioner.
new text end

new text begin As part of the agreement, the commissioner must approve the technical assistance and
services to be purchased, and the entities from which the services or technical assistance
will be purchased.
new text end

new text begin (d) For the purposes of this section, a small business means a business with fewer
than 25 employees.
new text end

new text begin (e) A voucher award must not exceed $25,000 per business.
new text end

new text begin (f) The commissioner must report to the chairs of the committees of the house of
representatives and senate having jurisdiction over economic development and workforce
policy and finance issues by December 1, 2014, on the vouchers awarded to date.
new text end

Sec. 10. new text beginCOMMISSIONER'S ACCOUNTABILITY PLAN.
new text end

new text begin By December 1, 2014, the commissioner shall report to the committees of the
house of representatives and senate having jurisdiction over workforce development
and economic development policy and finance issues, on the department's plan, and any
request for funding, to design and implement a performance accountability outcome
measurement system for programs under Minnesota Statutes, chapters 116J and 116L.
new text end

Sec. 11. new text beginNEW EMPLOYEE TRAINING PARTNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Training partnership initiative. new text end

new text begin (a) The commissioner of
employment and economic development shall develop and implement a new employee
training partnership to provide rebates to employers that hire and train new employees. To
be eligible for a rebate under this section, an employer must enter into an agreement with
the commissioner under subdivision 3. The commissioner shall give priority to employers
in counties in which the county unemployment rate over the preceding 12 months exceeded
the state average unemployment rate by 1.5 percentage points over the same period.
new text end

new text begin (b) Before entering into an agreement with an employer, the commissioner must
investigate the applicability of other training programs and determine whether the job skills
partnership grant program is a more suitable source of funding for the training and whether
the training can be completed in a timely manner that meets the needs of the employer.
new text end

new text begin The investigation must be completed within 15 days or as soon as reasonably possible
after the employer has provided the commissioner with all the requested information.
new text end

new text begin (c) The commissioner shall prescribe the form of all applications for rebates, the
timing for submission of applications, the execution of agreements with the commissioner,
and the payment of rebates.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Agreement" means the agreement between an employer and the commissioner
for a training partnership.
new text end

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

new text begin (d) "Cost of training" means all necessary and incidental costs of providing training
services. The term does not include the cost of purchasing equipment to be owned or used
by the training or educational institution or service.
new text end

new text begin (e) "Disability" has the meaning given under United States Code, title 42, chapter 126.
new text end

new text begin (f) "Employee" means an individual employed in a new job.
new text end

new text begin (g) "Employer" means an individual, corporation, partnership, limited liability
company, or association providing new jobs and entering into an agreement.
new text end

new text begin (h) "Long-term unemployed" has the meaning given by the United States Department
of Labor, Bureau of Labor Standards.
new text end

new text begin (i) "New job" means a job:
new text end

new text begin (1) that is provided by a new or expanding business at a location outside of the
metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2;
new text end

new text begin (2) that provides 32 hours of work per week for a minimum of nine months of the
year and is permanent with no planned termination date; and
new text end

new text begin (3) for which the employee hired was not (i) formerly employed by the employer
in the state or (ii) a replacement worker, including a worker newly hired as a result of a
labor dispute.
new text end

new text begin (j) "Rebate" means a payment by the commissioner to an employer for the cost
of training an employee. Rebates are limited to a maximum of $3,000 per employee,
except that the maximum rebate for the training costs of an employee with a disability, an
employee who was considered long-term unemployed, or an employee who is a veteran,
is $4,000 per employee.
new text end

new text begin (k) "Training partnership" means a training services and rebate arrangement that is
the subject of an agreement entered into between the commissioner and an employer.
new text end

new text begin (l) "Training services" means training and education specifically directed to new
jobs, determined to be appropriate by the commissioner, including in-house training;
services provided by institutions of higher education, or federal, state, or local agencies; or
private training or educational services. Administrative services, assessment, and testing
costs may be considered as training services.
new text end

new text begin Subd. 3. new text end

new text begin Agreements; required terms. new text end

new text begin To be eligible for a rebate under this
section, an employer must enter into an agreement with the commissioner that:
new text end

new text begin (1) identifies the training costs to be incurred by the employer, who will provide the
training services, and the amount of the rebate to be provided by the commissioner;
new text end

new text begin (2) provides for a guarantee by the employer of payment for all training costs; and
new text end

new text begin (3) provides that each employee must be paid wages of at least $13 per hour, plus
benefits, except that during a period not to exceed three weeks, during which an employee
is receiving training services, the employee may be paid wages of at least $11 per hour,
plus benefits.
new text end

new text begin Subd. 4. new text end

new text begin Verification prior to payment of rebate. new text end

new text begin The commissioner shall not
pay any rebate until all training costs and payment of the training costs by the employer
have been verified.
new text end

new text begin Subd. 5. new text end

new text begin Allocation. new text end

new text begin (a) The commissioner shall allocate payment for rebates
to employers only after receipt of a complete application for the rebate, including the
provision of all of the required information and the execution of an agreement and
approval by the commissioner. In approving applications, the commissioner must give
priority to employers in counties with high seasonally adjusted unemployment rates.
new text end

new text begin (b) The commissioner may utilize existing on-the-job training rebate or payment
processes or procedures.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By February 1, 2015, the commissioner shall report to the
committees of the house of representatives and the senate having jurisdiction over economic
development policy and finance. The report must include the following information:
new text end

new text begin (1) the total amount of rebates issued;
new text end

new text begin (2) the number of individuals receiving training, including disaggregate data
for employees who are individuals with disabilities, veterans, or who were long-term
unemployed;
new text end

new text begin (3) an analysis of the effectiveness of the rebate in encouraging employment; and
new text end

new text begin (4) any other information the commissioner determines appropriate.
new text end

Sec. 12. new text beginPILOT PROGRAMS; PRECISION MANUFACTURING AND HEALTH
CARE SERVICES.
new text end

new text begin The commissioner of labor and industry shall establish pilot programs to develop
competency standards for apprenticeship programs in precision manufacturing and health
care services. The pilot programs shall be administered by the registered apprenticeship
program within the Department of Labor and Industry. In establishing the pilot programs,
the commissioner may convene recognized industry experts and representative employers
to assist in defining credible competency standards acceptable to the information
technology and health care services industries.
new text end

Sec. 13. new text beginPILOT PROGRAM; INFORMATION TECHNOLOGY.
new text end

new text begin The commissioner of employment and economic development shall establish a pilot
program to develop competency standards for an information technology apprenticeship
program. In establishing the pilot program, the commissioner may convene recognized
industry experts and representative employers to define credible competency standards
acceptable to the information technology industry.
new text end

Sec. 14. new text beginOUTCOMES.
new text end

new text begin The outcomes expected from each of the pilot programs listed in sections 12 and
13 include:
new text end

new text begin (1) establishment of competency standards for entry level and at least two additional
higher skill levels for apprenticeship training in each industry;
new text end

new text begin (2) verification of competency standards and skill levels and their transferability by
representatives of each respective industry;
new text end

new text begin (3) clarification of ways for Minnesota educational institutions to engage in
providing training to meet the competency standards established; and
new text end

new text begin (4) participation from the identified industry sectors.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 116J.997, new text end new text begin is repealed.
new text end

ARTICLE 3

WORKERS' COMPENSATION

Section 1.

Minnesota Statutes 2013 Supplement, section 176.011, subdivision 15,
is amended to read:


Subd. 15.

Occupational disease.

(a) "Occupational disease" means a mental
impairment as defined in paragraph (d) or physical disease arising out of and in the
course of employment peculiar to the occupation in which the employee is engaged
and due to causes in excess of the hazards ordinary of employment and shall include
undulant fever. Physical stimulus resulting in mental injury and mental stimulus resulting
in physical injury shall remain compensable. Mental impairment is not considered a
disease if it results from a disciplinary action, work evaluation, job transfer, layoff,
demotion, promotion, termination, retirement, or similar action taken in good faith by the
employer. Ordinary diseases of life to which the general public is equally exposed outside
of employment are not compensable, except where the diseases follow as an incident of an
occupational disease, or where the exposure peculiar to the occupation makes the disease
an occupational disease hazard. A disease arises out of the employment only if there be a
direct causal connection between the conditions under which the work is performed and
if the occupational disease follows as a natural incident of the work as a result of the
exposure occasioned by the nature of the employment. An employer is not liable for
compensation for any occupational disease which cannot be traced to the employment as a
direct and proximate cause and is not recognized as a hazard characteristic of and peculiar
to the trade, occupation, process, or employment or which results from a hazard to which
the worker would have been equally exposed outside of the employment.

(b) If immediately preceding the date of disablement or death, an employee was
employed on active duty with an organized fire or police department of any municipality,
as a member of the Minnesota State Patrol, conservation officer service, state crime bureau,
as a forest officer by the Department of Natural Resources, state correctional officer, or
sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis,
coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee
was given a thorough physical examination by a licensed doctor of medicine, and a written
report thereof has been made and filed with such organized fire or police department, with
the Minnesota State Patrol, conservation officer service, state crime bureau, Department
of Natural Resources, Department of Corrections, or sheriff's department of any county,
which examination and report negatived any evidence of myocarditis, coronary sclerosis,
pneumonia or its sequel, the disease is presumptively an occupational disease and shall
be presumed to have been due to the nature of employment. If immediately preceding
the date of disablement or death, any individual who by nature of their position provides
emergency medical care, or an employee who was employed as a licensed police officer
under section 626.84, subdivision 1; firefighter; paramedic; state correctional officer;
emergency medical technician; or licensed nurse providing emergency medical care; and
who contracts an infectious or communicable disease to which the employee was exposed
in the course of employment outside of a hospital, then the disease is presumptively an
occupational disease and shall be presumed to have been due to the nature of employment
and the presumption may be rebutted by substantial factors brought by the employer
or insurer. Any substantial factors which shall be used to rebut this presumption and
which are known to the employer or insurer at the time of the denial of liability shall be
communicated to the employee on the denial of liability.

(c) A firefighter on active duty with an organized fire department who is unable
to perform duties in the department by reason of a disabling cancer of a type caused
by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the
International Agency for Research on Cancer, and the carcinogen is reasonably linked to
the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a
firefighter who enters the service after August 1, 1988, is examined by a physician prior to
being hired and the examination discloses the existence of a cancer of a type described
in this paragraph, the firefighter is not entitled to the presumption unless a subsequent
medical determination is made that the firefighter no longer has the cancer.

(d) For the purposes of this chapter, "mental impairment" means a diagnosis of
post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes
of this chapter, "post-traumatic stress disorder" means the condition as described in
the most recently published edition of the Diagnostic and Statistical Manual of Mental
Disorders by the American Psychiatric Association.new text begin For purposes of section 79.34,
subdivision 2, one or more compensable mental impairment claims arising out of a single
event or occurrence shall constitute a single loss occurrence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for employees with dates of injury on
or after October 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 176.129, subdivision 2a, is amended to read:


Subd. 2a.

Payments to fund.

(a) On or before April 1 of each year, all self-insured
employers shall report paid indemnity losses and insurers shall report paid indemnity
losses and standard workers' compensation premium in the form and manner prescribed
by the commissioner. On June 1 of each year, the commissioner shall determine the
total amount needed to pay all estimated liabilities, including administrative expenses,
of the special compensation fund for the following fiscal year. The commissioner shall
assess this amount against self-insured employers and insurers. The total amount of the
assessment must be allocated between self-insured employers and insured employers
based on paid indemnity losses for the preceding calendar year, as provided by paragraph
(b). The method of assessing self-insured employers must be based on paid indemnity
losses, as provided by paragraph (c). The method of assessing insured employers is based
on standard workers' compensation premium, as provided by paragraph (c). Each insurer
shall collect the assessment through a policyholder surcharge as provided by paragraph
(d). On or before June 30 of each year, the commissioner shall provide notification to each
self-insured employer and insurer of amounts due. Each self-insured employer and each
insurer shall pay at least one-half of the amount due to the commissioner for deposit into
the special compensation fund on or before August 1 of the same calendar year. The
remaining balance is due on February 1 of the following calendar year. Each insurer must
pay the full amount due as stated in the commissioner's notification, regardless of the
amount the insurer actually collects from the deleted text beginpremiumdeleted text endnew text begin policyholdernew text end surcharge.

(b) The portion of the total assessment that is allocated to self-insured employers
is the proportion that paid indemnity losses made by all self-insured employers bore to
the total paid indemnity losses made by all self-insured employers and insured employers
during the preceding calendar year. The portion of the total assessment that is allocated
to insured employers is the proportion that paid indemnity losses made on behalf of
all insured employers bore to the total paid indemnity losses made by all self-insured
employers and insured employers during the preceding calendar year.

(c) The portion of the total assessment allocated to self-insured employers that
shall be paid by each self-insured employer must be based upon paid indemnity losses
made by that self-insured employer during the preceding calendar year. The portion of
the total assessment allocated to insured employers that is paid by each insurer must be
based on standard workers' compensation premium earned in the state by that insurer
during the deleted text beginprecedingdeleted text endnew text begin currentnew text end calendar year. new text beginIf the current calendar year earned standard
workers' compensation premium is not available, the commissioner shall estimate the
portion of the total assessment allocated to insured employers that is paid by each insurer
using the earned standard workers' compensation premium from the preceding calendar
year. The commissioner shall then perform a reconciliation and final determination of
the portion of the total assessment to be paid by each insurer when the earned standard
workers' compensation premium for the current calendar year is calculable, but the final
determination must not be made after December 1 of the following calendar year.
new text endAn
employer who has ceased to be self-insured shall continue to be liable for assessments
based on paid indemnity losses arising out of injuries occurring during periods when the
employer was self-insured, unless the self-insured employer has purchased a replacement
policy covering those losses. An insurer who assumes a self-insured employer's obligation
under a replacement policy shall separately report and pay assessments based on indemnity
losses paid by the insurer under the replacement policy. The replacement policy may
provide for reimbursement of the assessment to the insurer by the self-insured employer.

(d) Insurers shall collect the assessments from their insured employers through
a surcharge based on standard workers' compensation premium for each employer.
Assessments when collected do not constitute an element of loss for the purpose of
establishing rates for workers' compensation insurance but for the purpose of collection
are treated as separate costs imposed on insured employers. The deleted text beginpremiumdeleted text endnew text begin policyholder
new text end surcharge is included in the definition of gross premium as defined in section 297I.01new text begin only
for premium tax purposes
new text end. An insurer may cancel a policy for nonpayment of the deleted text beginpremium
deleted text endnew text begin policyholdernew text end surcharge. The deleted text beginpremiumdeleted text endnew text begin policyholdernew text end surcharge is excluded from the
definition of premiumnew text begin for all other purposes,new text end except as otherwise provided in this paragraph.

(e) For purposes of this section, the workers' compensation assigned risk plan
established under section 79.252, shall report and pay assessments on standard workers'
compensation premium in the same manner as an insurer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments due under Minnesota
Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
1, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.
new text end

Sec. 3.

Minnesota Statutes 2012, section 176.129, subdivision 7, is amended to read:


Subd. 7.

Refunds.

In case deposit is or has been made pursuant to subdivision
2a by mistake or inadvertence, or under circumstances that justice requires a refund,
the commissioner of management and budget is authorized to refund the deposit under
order of the commissioner, a compensation judge, the Workers' Compensation Court of
Appeals, or a district court. Claims for refunds must be submitted to the commissioner
within three years of the deleted text beginassessment duedeleted text end datenew text begin of reconciliation and final determination
under subdivision 2a
new text end. There is appropriated to the commissioner from the fund an amount
sufficient to make the refund and payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments due under Minnesota
Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
1, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.
new text end

Sec. 4.

Minnesota Statutes 2012, section 176.135, subdivision 7, is amended to read:


Subd. 7.

Medical bills and records.

new text begin(a) new text endHealth care providers shall submit to the
insurer an itemized statement of charges in the standard electronic transaction format when
required by section 62J.536 or, if there is no prescribed standard electronic transaction
format, on a billing form prescribed by the commissioner. Health care providers shall also
submit copies of medical records or reports that substantiate the nature of the charge and its
relationship to the work injury. Health care providers may charge for copies of any records
or reports that are in existence and directly relate to the items for which payment is sought
under this chapter. The commissioner shall adopt a schedule of reasonable charges by rule.

A health care provider shall not collect, attempt to collect, refer a bill for collection,
or commence an action for collection against the employee, employer, or any other party
until the information required by this section has been furnished.

A United States government facility rendering health care services to veterans is not
subject to the uniform billing form requirements of this subdivision.

new text begin (b) For medical services provided under this section on or after October 1,
2014, the codes from the International Classification of Diseases, Tenth Edition,
Clinical Modification/Procedure Coding System (ICD-10), must be used to report
medical diagnoses and hospital inpatient procedures. The commissioner must replace
the codes from the International Classification of Diseases, Ninth Edition, Clinical
Modification/Procedure Coding System (ICD-9), with equivalent ICD-10 codes wherever
the ICD-9 codes appear in rules adopted under this chapter. The commissioner must use
the General Equivalence Mappings established by the Centers for Medicare and Medicaid
Services to replace the ICD-9 diagnostic codes with ICD-10 codes in the rules.
new text end

new text begin (c) The commissioner shall amend rules adopted under this chapter as necessary
to implement the ICD-10 coding system in paragraph (b). The amendments shall be
adopted by giving notice in the State Register according to the procedures in section
14.386, paragraph (a). The amended rules are not subject to expiration under section
14.386, paragraph (b).
new text end

Sec. 5.

Minnesota Statutes 2012, section 176.136, subdivision 1a, is amended to read:


Subd. 1a.

Relative value fee schedule.

(a) The liability of an employer for services
included in the medical fee schedule is limited to the maximum fee allowed by the
schedule in effect on the date of the medical service, or the provider's actual fee, whichever
is lower. The commissioner shall adopt permanent rules regulating fees allowable for
medical, chiropractic, podiatric, surgical, and other health care provider treatment or
service, including those provided to hospital outpatients, by implementing a relative value
fee schedule. The commissioner may adopt by reference, according to the procedures in
paragraph (h), clause (2), the relative value fee schedule tables adopted for the federal
Medicare program. The relative value fee schedule must contain reasonable classifications
including, but not limited to, classifications that differentiate among health care provider
disciplines. The conversion factors for the original relative value fee schedule must
reasonably reflect a 15 percent overall reduction from the medical fee schedule most
recently in effect. The reduction need not be applied equally to all treatment or services,
but must represent a gross 15 percent reduction.

(b) Effective October 1, 2005, the commissioner shall remove all scaling factors
from the relative value units and establish four separate conversion factors according to
paragraphs (c) and (d) for each of the following parts of Minnesota Rules:

(1) medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part
5221.0700, subpart 3, item C, subitem (2);

(2) pathology and laboratory services in Minnesota Rules, part 5221.4040, as
defined in part 5221.0700, subpart 3, item C, subitem (3);

(3) physical medicine and rehabilitation services in Minnesota Rules, part
5221.4050, as defined in part 5221.0700, subpart 3, item C, subitem (4); and

(4) chiropractic services in Minnesota Rules, part 5221.4060, as defined in part
5221.0700, subpart 3, item C, subitem (5).

deleted text begin (c) The four conversion factors established under paragraph (b) shall be calculated
so that there is no change in each maximum fee for each service under the current fee
schedule, except as provided in paragraphs (d) and (e).
deleted text end

deleted text begin (d) By October 1, 2006, the conversion factor for chiropractic services described in
paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor
for medical/surgical services described in paragraph (b), clause (1). Beginning October 1,
2005, the increase in chiropractic conversion factor shall be phased in over two years by
approximately equal percentage point increases.
deleted text end

deleted text begin (e) When adjusting the conversion factors in accordance with paragraph (g) on
October 1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero,
all of the conversion factors as necessary to offset any overall increase in payments under
the fee schedule resulting from the increase in the chiropractic conversion factor.
deleted text end

deleted text begin (f) The commissioner shall give notice of the relative value units and conversion
factors established under paragraphs (b), (c), and (d) according to the procedures in section
14.386, paragraph (a). The relative value units and conversion factors established under
paragraphs (b), (c), and (d) are not subject to expiration under section 14.386, paragraph (b).
deleted text end

deleted text begin (g)deleted text endnew text begin (c)new text end The conversion factors shall be adjusted as follows:

(1) After permanent rules have been adopted to implement this section, the conversion
factors must be adjusted annually on October 1 by no more than the percentage change
computed under section 176.645, but without the annual cap provided by that section.

(2) Each time the workers' compensation relative value fee schedule tables are
updated under paragraph (h), the commissioner shall adjust the conversion factors so that,
for services in both fee schedules, there is no difference between the overall payment in each
category of service listed in paragraph (b) under the new schedule and the overall payment
for that category under the workers' compensation fee schedule most recently in effect.
This adjustment must be made before making any additional adjustment under clause (1).

deleted text begin (h)deleted text endnew text begin (d)new text end The commissioner shall give notice of the adjusted conversion factors and
updates to the relative value fee schedule as follows:

(1) The commissioner shall annually give notice in the State Register of the adjusted
conversion factors and any amendments to rules to implement Medicare relative value
tables incorporated by reference under this subdivision. The notices of the adjusted
conversion factors and amended rules to implement the relative value tables are subject
to the requirements of section 14.386, paragraph (a). The annual adjustments to the
conversion factors and the medical fee schedules adopted under this section, including all
previous fee schedules, are not subject to expiration under section 14.386, paragraph (b).

(2) The commissioner shall periodically, but at least once every three years, update
the workers' compensation relative value tables by incorporating by reference the relative
value tables in the national physician fee schedule relative value file established by the
Centers for Medicare and Medicaid Services. The commissioner shall publish the notices
of the incorporation by reference in the State Register at least 60 days before the tables
are to become effective for purposes of payment under this section. Each notice of
incorporation must state the date the incorporated tables will become effective and must
include information on how the Medicare relative value tables may be obtained. The
published notices of incorporation by reference and the incorporated tables are not rules
subject to section 14.386 or other provisions of chapter 14, but have the force and effect of
law as of the date specified in the notices.

Sec. 6.

Minnesota Statutes 2012, section 176.231, subdivision 2, is amended to read:


Subd. 2.

Initial report, written report.

Where subdivision 1 requires an injury
to be reported within 48 hours, the employer may make an initial report by telephonedeleted text begin,
telegraph,
deleted text end or personal notice, and file a written report of the injury within seven days from
its occurrence or within such time as the commissioner of labor and industry designates.
All written reports of injuries required by subdivision 1 shall include the date of injury.
The reports shall be on a form designed by the commissioner, with a clear copy suitable
for imaging to the commissioner, one copy to the insurer, and one copy to the employee.

The employer must give the employee the "Minnesota Workers' Compensation
System Employee Information Sheet" at the time the employee is given a copy of the
first report of injury.

If an insurer or self-insurer repeatedly fails to pay benefits within three days of the
due date, pursuant to section 176.221, the insurer or self-insurer shall be ordered by the
commissioner to explain, in person, the failure to pay benefits due in a reasonable time.
If prompt payments are not thereafter made, the commissioner shall refer the insurer or
self-insurer to the commissioner of commerce for action pursuant to section 176.225,
subdivision 4
.

Sec. 7.

Minnesota Statutes 2012, section 176.305, subdivision 1a, is amended to read:


Subd. 1a.

Settlement and pretrial conferences; summary decision.

The chief
administrative law judge shall promptly assign the petition to a compensation judge under
section 176.307, and shall schedule a settlement conference before a compensation judge,
to be held no later than 180 days after a claim petition was filed, or 45 days after a petition
to discontinue, objection to discontinuance, or request for formal hearing was filed.

All parties must appear at the settlement conference, either personally or by
representative, must be prepared to discuss settlement of all issues, and must be prepared
to discuss or present the information required by the joint rules of the division and the
office. If a representative appears on behalf of a party, the representative must have
authority to fully settle the matter. The parties shall serve and file a pretrial statement no
fewer than five days before the settlement conference.

If settlement is not reached, the chief administrative law judge shall schedule a
hearing to be held within 90 days from the scheduled settlement conference. However,
the hearing must be held earlier than 90 days from the scheduled settlement conference if
this chapter requires an expedited hearing to be held at an earlier date. The hearing must
be held before a compensation judge other than the compensation judge who conducted
the settlement conference. The compensation judge assigned to hold the hearing may
choose to conduct a pretrial conference to clarify the issues and evidence that will be
presented at the hearing.

Cancellations and continuations of proceedings are disfavored but may be granted
upon the showing of good cause under section 176.341, subdivision 4.

The compensation judge conducting the settlement conference may require the
parties to present copies of all documentary evidence not previously filed and a summary
of the evidence they will present at a formal hearing. If appropriate, a written summary
decision shall be issued within ten days after the conference stating the issues and a
determination of each issue. If a party fails to appear at the conference, all issues may
be determined contrary to the absent party's interest, provided the party in attendance
presents a prima facie case.

The summary decision is final unless a written request for a formal hearing is served
on all parties and filed with the commissioner within 30 days after the date of service
and filing of the summary decision. Within ten days after receipt of the request, the
commissioner shall certify the matter to the office for a de novo hearing. deleted text beginIn proceedings
under section 176.2615, the summary decision is final and not subject to appeal or de
novo proceedings.
deleted text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 175.006, subdivision 1; 175.08; 175.14; 175.26;
176.1311; 176.136, subdivision 3; 176.2615; and 176.641,
new text end new text begin are repealed.
new text end

ARTICLE 4

MISCELLANEOUS

Section 1.

Minnesota Statutes 2012, section 469.084, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Meetings by telephone or other electronic means. new text end

new text begin The port authority
may conduct meetings as provided by section 13D.015.
new text end