Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

HF 3172

2nd Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/09/2014 12:08am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to state government; making supplemental appropriations and reductions
1.3in appropriations for higher education, jobs and economic development,
1.4public safety, corrections, transportation, environment, natural resources, and
1.5agriculture, early childhood through grade 12 and adult education, health and
1.6human services; making forecast adjustments; modifying prior appropriations;
1.7modifying disposition of certain revenues; creating accounts; requiring reports;
1.8providing penalties; authorizing rulemaking;amending Minnesota Statutes
1.92012, sections 3.099, subdivision 3; 13.43, subdivision 16; 13.46, subdivision 4;
1.1015A.082, subdivision 4; 16A.125, subdivision 5; 16C.16, subdivision 6a; 16C.19;
1.1118B.01, by adding subdivisions; 18B.03, by adding a subdivision; 18B.04; 85.34,
1.12subdivision 7; 85A.02, subdivision 2; 93.22, subdivision 1; 93.2236; 103G.251;
1.13103G.271, subdivisions 5, 6; 103G.281, by adding a subdivision; 115E.08, by
1.14adding a subdivision; 116J.8731, subdivision 5; 116L.98; 122A.18, by adding
1.15a subdivision; 122A.414, subdivision 2; 122A.415, subdivision 1; 123A.05,
1.16subdivision 2; 123A.485; 123A.64; 123B.71, subdivisions 8, 9; 124D.09,
1.17subdivisions 9, 13; 124D.111, by adding subdivisions; 124D.1158, subdivisions
1.183, 4; 124D.13, subdivisions 2, 4, 9, 13, by adding subdivisions; 124D.135,
1.19subdivisions 1, 3; 124D.522; 124D.531, subdivision 3; 124D.59, subdivision 2;
1.20125A.08; 126C.10, subdivisions 25, 26, 28; 127A.45, subdivision 2; 127A.49,
1.21subdivisions 2, 3; 129C.10, subdivision 3, by adding a subdivision; 136A.01,
1.22subdivision 2; 136A.1702; 136A.1785; 144.1501, subdivision 1; 144.551,
1.23subdivision 1; 144A.073, by adding a subdivision; 144A.33, subdivision 2;
1.24148.624, by adding a subdivision; 148B.53, subdivision 3; 150A.091, by adding
1.25a subdivision; 153.16, by adding a subdivision; 154.11, as amended; 155A.27, by
1.26adding a subdivision; 161.14, by adding a subdivision; 165.15, subdivision 2;
1.27169.011, by adding a subdivision; 169.06, subdivision 4, by adding a subdivision;
1.28169.14, subdivision 5d, by adding a subdivision; 169.305, subdivision 1; 169.826,
1.29by adding a subdivision; 169.8261, by adding a subdivision; 169.86, subdivision
1.305; 169.863, by adding a subdivision; 169.865, subdivisions 1, 2, by adding a
1.31subdivision; 169.866, subdivision 3, by adding a subdivision; 171.02, subdivision
1.323; 171.06, subdivision 2; 174.02, by adding a subdivision; 174.56, subdivision
1.331; 181.940, subdivision 2; 181A.07, by adding a subdivision; 216B.1611,
1.34by adding a subdivision; 216B.241, subdivision 1d; 216C.145; 216C.146;
1.35219.015, subdivisions 1, 2; 245.466, by adding a subdivision; 245A.04, by
1.36adding a subdivision; 245C.03, by adding a subdivision; 245C.04, by adding
1.37a subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision;
1.38245C.33, subdivisions 1, 4; 252.451, subdivision 2; 253B.066, subdivision 1;
1.39254B.04, subdivision 3; 254B.12; 256.01, by adding a subdivision; 256.9685,
2.1subdivisions 1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a,
2.23b, 3c, 6a, 8, 8a, 9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752,
2.3subdivision 2; 256B.04, by adding a subdivision; 256B.0615, subdivision 3;
2.4256B.0624, subdivisions 2, 5, 6, 10; 256B.0625, subdivisions 18b, 18c, 18d, 18g,
2.530, by adding subdivisions; 256B.199; 256B.35, subdivision 1; 256B.5012,
2.6by adding a subdivision; 256D.02, subdivisions 8, 12; 256D.05, subdivision
2.75; 256D.06, subdivision 1; 256D.08, subdivision 1, by adding a subdivision;
2.8256D.10; 256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by
2.9adding a subdivision; 256I.04, subdivision 1; 256I.05, subdivision 2; 256J.08,
2.10subdivisions 47, 57, 83, by adding a subdivision; 256J.10; 256J.21, subdivision
2.114; 256J.30, subdivision 4; 256J.32, subdivision 1; 256J.33, subdivision 2;
2.12256J.37, as amended; 256J.425, subdivisions 1, 7; 256J.49, subdivision 13;
2.13256J.53, subdivisions 1, 2, 5; 256J.531; 256J.95, subdivisions 8, 9, 10; 257.85,
2.14subdivision 11; 260B.198, subdivision 7; 260C.212, subdivision 1; 260C.515,
2.15subdivision 4; 260C.611; 268A.01, subdivision 14; 298.28, subdivisions 2, 7a, as
2.16added; 299F.012, subdivisions 1, 2; 326.04, by adding a subdivision; 326.10, by
2.17adding a subdivision; 326.3382, by adding a subdivision; 326A.04, by adding a
2.18subdivision; 645.241; Minnesota Statutes 2013 Supplement, sections 15A.082,
2.19subdivisions 1, 3; 116V.03; 122A.40, subdivision 8; 122A.41, subdivision 5;
2.20123B.53, subdivision 1; 123B.54; 123B.75, subdivision 5; 124D.10, subdivision
2.218; 124D.11, subdivision 1; 124D.111, subdivision 1; 124D.165, subdivisions 3, 4,
2.225; 124D.531, subdivision 1; 124D.862, subdivisions 1, 2; 125A.11, subdivision
2.231; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05,
2.24subdivision 15; 126C.10, subdivisions 2a, 2d, 13a, 24, 31; 126C.17, subdivisions
2.256, 7b, 9, 9a; 126C.40, subdivision 1; 126C.44; 126C.48, subdivision 8; 127A.47,
2.26subdivision 7; 127A.70, subdivision 2; 145.4716, subdivision 2; 148B.17,
2.27subdivision 2; 174.12, subdivision 2; 174.42, subdivision 2; 245.8251; 245A.03,
2.28subdivision 7; 245A.042, subdivision 3; 245A.16, subdivision 1; 245C.08,
2.29subdivision 1; 245D.02, subdivisions 3, 4b, 8b, 11, 15b, 29, 34, 34a, by adding a
2.30subdivision; 245D.03, subdivisions 1, 2, 3, by adding a subdivision; 245D.04,
2.31subdivision 3; 245D.05, subdivisions 1, 1a, 1b, 2, 4, 5; 245D.051; 245D.06,
2.32subdivisions 1, 2, 4, 6, 7, 8; 245D.071, subdivisions 3, 4, 5; 245D.081, subdivision
2.332; 245D.09, subdivisions 3, 4a; 245D.091, subdivisions 2, 3, 4; 245D.10,
2.34subdivisions 3, 4; 245D.11, subdivision 2; 256B.04, subdivision 21; 256B.055,
2.35subdivision 1; 256B.06, subdivision 4; 256B.0625, subdivisions 17, 18e;
2.36256B.0949, subdivision 11; 256B.439, subdivisions 1, 7; 256B.441, subdivisions
2.3753, 63; 256B.4912, subdivision 1; 256B.4913, subdivision 4a; 256B.4914,
2.38subdivisions 2, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision 34;
2.39256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24, by
2.40adding subdivisions; 256J.21, subdivision 3; 256J.30, subdivision 9; 256N.02, by
2.41adding a subdivision; 256N.21, subdivision 2, by adding a subdivision; 256N.22,
2.42subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4; 256N.24, subdivisions 9, 10;
2.43256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 256N.27, subdivision 4;
2.44326A.04, subdivision 5; Laws 2008, chapter 363, article 5, section 4, subdivision
2.457, as amended; Laws 2009, chapter 83, article 1, section 10, subdivision 7; Laws
2.462010, chapter 189, sections 15, subdivision 12; 26, subdivision 4; Laws 2012,
2.47chapter 247, article 4, section 47; Laws 2012, chapter 287, article 2, sections 1;
2.483; Laws 2012, First Special Session chapter 1, article 1, section 28; Laws 2013,
2.49chapter 1, section 6, as amended; Laws 2013, chapter 85, article 1, section 3,
2.50subdivisions 2, 6; Laws 2013, chapter 86, article 1, sections 12, subdivisions 1, 3,
2.514, 6, 7; 13; Laws 2013, chapter 99, article 3, section 3; Laws 2013, chapter 108,
2.52article 1, section 24; article 7, section 49; article 14, sections 2, subdivisions 1, 3,
2.534, as amended, 5, 6, as amended; 3, subdivisions 1, 4; 4, subdivision 8; 12; Laws
2.542013, chapter 114, article 3, section 3, subdivision 6; article 4, section 47; Laws
2.552013, chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 3,
2.56section 37, subdivisions 3, 4, 5, 6, 8, 15, 20; article 4, section 9, subdivision 2;
2.57article 5, section 31, subdivisions 2, 3, 4, 5, 8; article 6, section 12, subdivisions
2.582, 3, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5,
3.1subdivisions 2, 3, 4, 8, 9, 10, 11, 14; article 9, section 2; Laws 2013, chapter 117,
3.2article 1, sections 3, subdivisions 2, 3, 6; 4; 5, subdivisions 2, 3, 4; Laws 2013,
3.3chapter 143, article 11, section 10; proposing coding for new law in Minnesota
3.4Statutes, chapters 3; 18B; 87A; 92; 103G; 123A; 123B; 129C; 135A; 136A; 144;
3.5144A; 148; 168; 171; 197; 219; 256L; 268A; 299A; 473; proposing coding for
3.6new law as Minnesota Statutes, chapter 256P; repealing Minnesota Statutes
3.72012, sections 116J.997; 123B.71, subdivision 1; 256.969, subdivisions 2c, 8b,
3.89a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 3, 4; 256D.06,
3.9subdivision 1b; 256D.08, subdivision 2; 256D.405, subdivisions 1a, 2; 256J.08,
3.10subdivisions 42, 55a, 82a; 256J.20; 256J.24, subdivision 9; 256J.32, subdivisions
3.112, 3, 4, 5a, 6, 7, 7a, 8; Minnesota Statutes 2013 Supplement, sections 256B.0625,
3.12subdivision 18f; 256J.08, subdivision 24; 256N.26, subdivision 7; Laws 2010,
3.13chapter 215, article 3, section 3, subdivision 6, as amended.
3.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.15ARTICLE 1
3.16HIGHER EDUCATION

3.17
Section 1. APPROPRIATIONS.
3.18The sums shown in the columns marked "Appropriations" are added to the
3.19appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the
3.20agencies and for the purposes specified in this article. The appropriations are from the
3.21general fund, or another named fund, and are available for the fiscal year indicated for
3.22each purpose. The figure "2015" used in this article mean that the appropriation listed
3.23under them are available for the fiscal year ending June 30, 2015.
3.24
APPROPRIATIONS
3.25
Available for the Year
3.26
Ending June 30
3.27
2014
2015

3.28
Sec. 2. OFFICE OF HIGHER EDUCATION
$
1,000,000
3.29This appropriation is for immediate transfer
3.30to College Possible for the purpose of
3.31expanding College Possible coaching and
3.32mentoring programs in Minnesota schools.
3.33The appropriation shall be used for:
3.34(1) increasing the number of low-income
3.35high school students served by College
3.36Possible by adding at least 150 students and
3.37partnering with at least three additional high
3.38schools in 2015;
4.1(2) expenses related to direct support
4.2for low-income high school students in
4.3after-school programming led by College
4.4Possible; and
4.5(3) coaching and support of low-income
4.6college students through the completion of
4.7their college degree.
4.8College Possible must, by February 1, 2015,
4.9report to the chairs and ranking minority
4.10members of the legislative committees
4.11and divisions with jurisdiction over higher
4.12education on activities funded by this
4.13appropriation. The report must include,
4.14but is not limited to, information about the
4.15expansion of College Possible in Minnesota,
4.16the number of College Possible coaches
4.17hired, the expansion within existing partner
4.18high schools, the expansion of high school
4.19partnerships, the number of high school
4.20and college students served, the total hours
4.21of community service by high school and
4.22college students, and a list of communities
4.23and organizations benefitting from student
4.24service hours.
4.25This appropriation must not be used for the
4.26expansion and support of College Possible
4.27outside of Minnesota.
4.28This is a onetime appropriation.

4.29
4.30
4.31
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
$
17,000,000
4.32This is a onetime appropriation.

4.33
4.34
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
5.1
Subdivision 1.Total Appropriation
$
7,500,000
5.2
Subd. 2.Operations and Maintenance
2,500,000
5.3This is a onetime appropriation for fiscal
5.4year 2015 only and is to address immediate
5.5and critical financial challenges in order to
5.6preserve academic programs and student
5.7service levels. The Board of Regents is
5.8requested to allocate this appropriation to
5.9meet financial challenges at the University of
5.10Minnesota-Duluth campus.
5.11
Subd. 3.Health Sciences Special
5,000,000
5.12This appropriation is for the purpose of
5.13research related to regenerative medicine.
5.14The university is requested to constitute an
5.15advisory group on regenerative medicine
5.16composed of at least five members with
5.17experience in regenerative medicine,
5.18including one member each from:
5.19(1) the Mayo Clinic;
5.20(2) the University of Minnesota;
5.21(3) private industry; and
5.22(4) at least two others with expertise in
5.23regenerative medicine.
5.24Prior to expending the appropriation, the
5.25university must receive and consider the
5.26advice of the advisory group.
5.27The appropriation may be used entirely for
5.28University of Minnesota research or may
5.29be allocated in whole or in part to research
5.30conducted by others including the Mayo
5.31Clinic.

5.32
5.33
Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY
$
250,000
6.1For the purpose of the competency standard
6.2program in section 19. This is a onetime
6.3appropriation.

6.4
6.5
Sec. 6. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
$
232,000
6.6This appropriation is for the purpose of the
6.7commissioner's duties under section 116L.98
6.8and the accountability plan under section 22.
6.9This is a onetime appropriation.

6.10    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
6.11116L.98 WORKFORCE PROGRAM OUTCOMES.
6.12    Subdivision 1. Requirements. The commissioner shall develop and implement a
6.13set of standard approaches for assessing the outcomes of workforce programs under this
6.14chapter. The outcomes assessed must include, but are not limited to, periodic comparisons
6.15of workforce program participants and nonparticipants uniform outcome measurement
6.16and reporting system for adult workforce-related programs under chapters 116J and 116L.
6.17The commissioner shall also monitor the activities and outcomes of programs and
6.18services funded by legislative appropriations and administered by the department on a
6.19pass-through basis and develop a consistent and equitable method of assessing recipients
6.20for the costs of its monitoring activities.
6.21    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
6.22this subdivision have the meanings given.
6.23(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates
6.24awarded in recognition of an individual's attainment of measurable technical or
6.25occupational skills necessary to obtain employment or advance within an occupation.
6.26"Credential" does not include certificates awarded by workforce investment boards or
6.27work-readiness certificates.
6.28(c) "Exit" means to have not received service under a workforce program for 90
6.29consecutive calendar days. The exit date is the last date of service.
6.30(d) "Net impact" means the use of matched control groups and regression analysis to
6.31estimate the impacts attributable to program participation net of other factors, including
6.32observable personal characteristics and economic conditions.
6.33(e) "Preenrollment" means the period of time before an individual was enrolled
6.34in a workforce program.
7.1    Subd. 3. Uniform outcome report card; reporting by the commissioner. (a) By
7.2December 31 of each even-numbered year, the commissioner must report to the chairs
7.3and ranking minority members of the committees of the house of representatives and the
7.4senate having jurisdiction over economic development and workforce policy and finance
7.5the following information separately for each of the previous two fiscal or calendar years,
7.6for each program subject to the requirements of subdivision 1:
7.7(1) the total number of participants enrolled;
7.8(2) the median preenrollment wages based on participant wages for the second
7.9through the fifth calendar quarters immediately preceding the quarter of enrollment
7.10excluding those with zero income;
7.11(3) the total number of participants with zero income in the second through fifth
7.12calendar quarters immediately preceding the quarter of enrollment;
7.13(4) the total number of participants enrolled in training;
7.14(5) the total number of participants enrolled in training by occupational group;
7.15(6) the total number of participants that exited the program and the average
7.16enrollment duration of participants that have exited the program during the year;
7.17(7) the total number of exited participants who completed training;
7.18(8) the total number of exited participants who attained a credential;
7.19(9) the total number of participants employed during three consecutive quarters
7.20immediately following the quarter of exit, by industry;
7.21(10) the median wages of participants employed during three consecutive quarters
7.22immediately following the quarter of exit;
7.23(11) the total number of participants employed during eight consecutive quarters
7.24immediately following the quarter of exit, by industry; and
7.25(12) the median wages of participants employed during eight consecutive quarters
7.26immediately following the quarter of exit.
7.27(b) The report to the legislature must contain participant information by education
7.28level, race and ethnicity, gender, and geography, and a comparison of exited participants
7.29who completed training and those who did not.
7.30(c) The requirements of this section apply to programs administered directly by the
7.31commissioner or administered by other organizations under a grant made by the department.
7.32    Subd. 4. Data to commissioner; uniform report card. (a) A recipient of a
7.33direct appropriation or grant made by or through the department must report data to the
7.34commissioner by September 1 of each even-numbered year on each of the items in
7.35subdivision 3 for each program it administers except wages and number employed which
7.36the department shall provide. The data must be in a format prescribed by the commissioner.
8.1(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants
8.2and recipients regarding the data collection and reporting requirements under this
8.3subdivision and must provide technical assistance to applicants and recipients to assist
8.4in complying with the requirements of this subdivision.
8.5    Subd. 5. Information. The information collected and reported under subdivisions 3
8.6and 4 shall be made available on the department's Web site.

8.7    Sec. 8. [135A.0431] MILITARY VETERANS; RESIDENT TUITION.
8.8(a) A person who is honorably discharged from the armed forces of the United States
8.9is entitled to the resident tuition rate at Minnesota public postsecondary institutions.
8.10(b) This section is in addition to any other statute, rule, or higher education
8.11institution regulation or policy providing eligibility for a resident tuition rate or its
8.12equivalent to a student.
8.13EFFECTIVE DATE.This section is effective for academic terms beginning after
8.14August 1, 2014.

8.15    Sec. 9. Minnesota Statutes 2012, section 136A.01, subdivision 2, is amended to read:
8.16    Subd. 2. Responsibilities. (a) The Minnesota Office of Higher Education is
8.17responsible for:
8.18(1) necessary state level administration of financial aid programs, including
8.19accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
8.20financial aid programs to the governor and the legislature;
8.21(2) approval, registration, licensing, and financial aid eligibility of private collegiate
8.22and career schools, under sections 136A.61 to 136A.71 and chapter 141;
8.23(3) determining whether to enter into an interstate reciprocity agreement regarding
8.24postsecondary distance education;
8.25(3) (4) negotiating and administering reciprocity agreements;
8.26(4) (5) publishing and distributing financial aid information and materials, and other
8.27information and materials under section 136A.87, to students and parents;
8.28(5) (6) collecting and maintaining student enrollment and financial aid data and
8.29reporting data on students and postsecondary institutions to develop and implement a
8.30process to measure and report on the effectiveness of postsecondary institutions;
8.31(6) (7) administering the federal programs that affect students and institutions on a
8.32statewide basis; and
8.33(7) (8) prescribing policies, procedures, and rules under chapter 14 necessary to
8.34administer the programs under its supervision.
9.1(b) The office may match individual student data from the student record enrollment
9.2database with individual student financial aid data collected and maintained by the office
9.3in order to audit or evaluate federal or state supported education programs as permitted by
9.4United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title
9.534, section 99.35. The office shall not release data that personally identifies parents or
9.6students other than to employees and contractors of the office.

9.7    Sec. 10. Minnesota Statutes 2012, section 136A.1702, is amended to read:
9.8136A.1702 LEGISLATIVE OVERSIGHT.
9.9    The office shall notify the chairs of the legislative committees with primary
9.10jurisdiction over higher education finance of any proposed material change to any of its
9.11student loan programs, including loan refinancing under section 136A.1704, prior to
9.12making the change.

9.13    Sec. 11. [136A.1704] STUDENT LOAN REFINANCING.
9.14The office may refinance student and parent loans as provided by this section and
9.15on other terms and conditions the office prescribes. The office may establish credit
9.16requirements for borrowers and determine what types of student and parent loans will be
9.17eligible for refinancing. The refinanced loan need not have been made through a loan
9.18program administered by the office. Loans shall be made with available funds in the
9.19loan capital fund under section 136A.1785. The maximum amount of outstanding loans
9.20refinanced under this section may not exceed $100,000,000. The maximum loan under
9.21this section may not exceed $70,000.
9.22EFFECTIVE DATE.This section is effective the day following final enactment,
9.23provided no loans may be refinanced prior to June 1, 2015.

9.24    Sec. 12. Minnesota Statutes 2012, section 136A.1785, is amended to read:
9.25136A.1785 LOAN CAPITAL FUND.
9.26The office may deposit and hold assets derived from the operation of its student loan
9.27programs and refinanced education loans authorized by this chapter in a fund known as
9.28the loan capital fund. Assets in the loan capital fund are available to the office solely
9.29for carrying out the purposes and terms of sections 136A.15 to 136A.1703 136A.1704,
9.30including, but not limited to, making student loans authorized by this chapter, refinancing
9.31education loans authorized by this chapter, paying administrative expenses associated with
9.32the operation of its student loan programs, repurchasing defaulted student loans, and
10.1paying expenses in connection with the issuance of revenue bonds authorized under this
10.2chapter. Assets in the loan capital fund may be invested as provided in sections 11A.24
10.3and 136A.16, subdivision 8. All interest and earnings from the investment of the loan
10.4capital fund inure to the benefit of the fund and are deposited into the fund.

10.5    Sec. 13. [136A.221] RESEARCH DOGS AND CATS.
10.6(a) A higher education research facility that receives public money or a facility that
10.7provides research in collaboration with a higher education facility that confines dogs or
10.8cats for science, education, or research purposes and plans on euthanizing a dog or cat
10.9for other than science, education, or research purposes must first offer the dog or cat
10.10to an animal rescue organization. A facility that is required to offer dogs or cats to an
10.11animal rescue organization under this section may enter into an agreement with the animal
10.12rescue organization to protect the facility. A facility that provides a dog or cat to a rescue
10.13organization under this section is immune from any civil liability that otherwise might
10.14result from its actions, provided that the facility is acting in good faith.
10.15(b) For the purposes of this section, "animal rescue organization" means any
10.16nonprofit organization incorporated for the purpose of rescuing animals in need and
10.17finding permanent, adoptive homes for the animals.

10.18    Sec. 14. [136A.658] EXEMPTION; STATE AUTHORIZATION RECIPROCITY
10.19AGREEMENT SCHOOLS.
10.20(a) The office may participate in an interstate reciprocity agreement regarding
10.21postsecondary distance education if it determines that participation is in the best interest of
10.22Minnesota postsecondary students.
10.23(b) If the office decides to participate in an interstate reciprocity agreement, an
10.24institution that meets the following requirements is exempt from the provisions of sections
10.25136A.61 to 136A.71:
10.26(1) the institution is situated in a state which is also participating in the interstate
10.27reciprocity agreement;
10.28(2) the institution has been approved to participate in the interstate reciprocity
10.29agreement by the institution's home state and other entities with oversight of the interstate
10.30reciprocity agreement; and
10.31(3) the institution has elected to participate in and operate in compliance with the
10.32terms of the interstate reciprocity agreement.

10.33    Sec. 15. [136A.89] STUDY ABROAD PROGRAMS.
11.1    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
11.2subdivision have the meanings given them.
11.3(b) "Postsecondary institution" means an institution that meets the eligibility
11.4requirements under section 136A.103 to participate in state financial aid programs.
11.5(c) "Program" means a study abroad program offered or approved for credit by a
11.6postsecondary institution in which program participants travel outside of the United States
11.7in connection with an educational experience.
11.8    Subd. 2. Report. (a) A postsecondary institution, must file by November 1 of
11.9each year a report on its programs with the office. The report must contain the following
11.10information from the previous academic year, including summer terms:
11.11(1) deaths of program participants that occurred during program participation as a
11.12result of program participation; and
11.13(2) accidents and illnesses that occurred during program participation as a result of
11.14program participation and that required hospitalization.
11.15Information reported under clause (1) may be supplemented by a brief explanatory
11.16statement.
11.17(b) A postsecondary institution must report to the office annually by November
11.181 whether its program complies with health and safety standards set by the Forum on
11.19Education Abroad or similar study abroad program standard setting agency.
11.20    Subd. 3. Office of Higher Education; publication of program information. (a)
11.21The office must publish the reports required by subdivision 2, on its Web site in a format
11.22that facilitates identifying information related to a particular postsecondary institution.
11.23(b) The office shall publish on its Web site the best available information by country
11.24on sexual assaults and other criminal acts affecting study abroad program participants
11.25during program participation. This information shall not be limited to programs subject
11.26to this section.
11.27    Subd. 4. Program material. A postsecondary institution must include in its written
11.28materials provided to prospective program participants a link to the office Web site stating
11.29that program health and safety information is available at the Web site.
11.30EFFECTIVE DATE.This section is effective August 1, 2014, provided that the
11.31initial reports under subdivision 2 are due November 1, 2015.

11.32    Sec. 16. Minnesota Statutes 2012, section 181A.07, is amended by adding a
11.33subdivision to read:
12.1    Subd. 7. Approved training programs. The commissioner may grant exemptions
12.2from any provisions of sections 181A.01 to 181A.12 for minors participating in training
12.3programs approved by the commissioner; or students in a valid apprenticeship program
12.4taught by or required by a trade union, the commissioner of education, the commissioner
12.5of employment and economic development, the Board of Trustees of the Minnesota State
12.6Colleges and Universities, or the Board of Regents of the University of Minnesota.

12.7    Sec. 17. Laws 2013, chapter 99, article 3, section 3, is amended to read:
12.8    Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS
12.9EXPENSE ALLOWANCE.
12.10(a) For the purposes of the state grant program under Minnesota Statutes, section
12.11136A.121 , for the biennium ending June 30, 2015, the tuition maximum is $13,000
12.12each fiscal year of the biennium for fiscal year 2014 and $13,620 for fiscal year 2015
12.13 for students in four-year programs, and $5,808 in each fiscal year of the biennium for
12.14students in two-year programs.
12.15(b) The living and miscellaneous expense allowance for the state grant program under
12.16Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set at
12.17$7,900 for each fiscal year of the biennium fiscal year 2014 and $8,300 for fiscal year 2015.
12.18EFFECTIVE DATE.This section is effective the day following final enactment.

12.19    Sec. 18. MINNESOTA STATE COLLEGES AND UNIVERSITIES
12.20BACCALAUREATE DEGREE COMPLETION PLAN.
12.21The Board of Trustees of the Minnesota State Colleges and Universities shall develop
12.22a plan to implement multi-campus articulation agreements that lead to baccalaureate degree
12.23completion upon earning the number of credits required for the degree minus 60 credits at
12.24a system university after transfer to the system university by a student with an associate in
12.25arts degree, associate of science degree, or an associate of fine arts (AFA) degree from
12.26a system college. The board shall report on this plan to the legislative committees with
12.27primary jurisdiction over higher education finance and policy by March 15, 2015.

12.28    Sec. 19. COMPETENCY STANDARDS: ADVANCED MANUFACTURING,
12.29HEALTH CARE SERVICES, INFORMATION TECHNOLOGY, AND
12.30AGRICULTURE.
12.31(a) The commissioner of labor and industry, in collaboration with the commissioner
12.32of employment and economic development, shall establish competency standards for
12.33programs in advanced manufacturing, health care services, information technology,
13.1and agriculture. This initiative shall be administered by the Department of Labor and
13.2Industry. In establishing the competency standards, the commissioner shall convene
13.3recognized industry experts, representative employers, higher education institutions, and
13.4representatives of labor to assist in defining credible competency standards acceptable to
13.5the advanced manufacturing, health care services, information technology, and agriculture
13.6industries.
13.7(b) The outcomes expected from the initiatives in this section include:
13.8(1) establishment of competency standards for entry level and at least two additional
13.9higher skill levels in each industry;
13.10(2) verification of competency standards and skill levels and their transferability by
13.11representatives of each respective industry;
13.12(3) models of ways for Minnesota educational institutions to engage in providing
13.13education and training to meet the competency standards established; and
13.14(4) participation from the identified industry sectors.
13.15(c) By January 15, 2015, the commissioner of labor and industry shall report to the
13.16legislative committees with jurisdiction over jobs on the progress and success, including
13.17outcomes, of the initiatives in this section and recommendations on occupations in which
13.18similar competency standards should be developed and implemented.

13.19    Sec. 20. STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON
13.20MINNESOTA.
13.21(a) The commissioner of employment and economic development, in consultation
13.22with the commissioner of revenue, shall study and analyze the effects of current and
13.23projected oil production in North Dakota on the Minnesota economy with special focus on
13.24the northwestern region of Minnesota and area border cities as provided in paragraph (b).
13.25(b) The study and analysis must address:
13.26(1) current and projected economic, fiscal, and demographic effects and issues;
13.27(2) direct and indirect costs and benefits;
13.28(3) positive and negative effects; and
13.29(4) economic challenges and opportunities for economic growth or diversification.
13.30(c) The study must be objective, evidence-based, and designed to produce empirical
13.31data. Study data must be utilized to formulate policy recommendations on how the state,
13.32the northwestern region of the state, and border cities may respond to the challenges and
13.33opportunities for economic growth and financial investment that may be derived from the
13.34regional economic changes that are the result of oil production in North Dakota.
14.1(d) For the purposes of this section, "border cities" has the meaning given in
14.2Minnesota Statutes, section 469.1731.
14.3(e) The study and analysis must be conducted by an independent entity with
14.4demonstrated knowledge in the following areas:
14.5(1) the economy and demography of Minnesota;
14.6(2) the domestic and foreign oil industry; and
14.7(3) technologies, markets, and geopolitical factors that have an impact on current
14.8and future oil production in the region.
14.9(f) The commissioner shall report on the findings and recommendations of the study
14.10to the committees of the house of representatives and senate having jurisdiction over
14.11economic development and workforce issues by February 15, 2015.
14.12EFFECTIVE DATE.This section is effective the day following final enactment.

14.13    Sec. 21. REPORT; OFFICE OF HIGHER EDUCATION.
14.14The Office of Higher Education shall, by February 1, 2015, report to the committees
14.15of the legislature with primary jurisdiction over higher education policy and finance, its
14.16plans and proposed terms and conditions for operating a student loan refinancing program
14.17under section 136A.1704, along with any recommended legislation.

14.18    Sec. 22. COMMISSIONER OF EMPLOYMENT AND ECONOMIC
14.19DEVELOPMENT ACCOUNTABILITY PLAN.
14.20By December 1, 2014, the commissioner of employment and economic development
14.21shall report to the committees of the house of representatives and senate having
14.22jurisdiction over workforce development and economic development policy and finance
14.23issues, on the department's plan, and any request for funding, to design and implement
14.24a performance accountability outcome measurement system, including a net impact
14.25analysis, for programs under Minnesota Statutes, chapter 116J and 116L.

14.26    Sec. 23. WORKFORCE PROGRAM NET IMPACT ANALYSIS.
14.27By December 1, 2014, the commissioner of employment and economic development,
14.28in partnership with the Governor's Workforce Development Council, must report to the
14.29chairs and ranking minority members of the committees of the house of representatives
14.30and the senate having jurisdiction over economic development and workforce policy and
14.31finance the results of the net impact pilot project already underway.

15.1    Sec. 24. STUDY ABROAD PROGRAM; ASSESSMENT OF APPROPRIATE
15.2REGULATION.
15.3The Office of Higher Education shall, using existing staff and budget, assess the
15.4appropriate state regulation of postsecondary study abroad programs. The assessment
15.5must be based on a balanced approach of protecting the health and safety of program
15.6participants and maintaining the opportunity of students to study abroad. The office shall
15.7report the results of its assessment with any legislative recommendation by February 1,
15.82015, to the committees of the legislature with primary jurisdiction over higher education.

15.9    Sec. 25. REPEALER.
15.10Minnesota Statutes 2012, section 116J.997, is repealed.

15.11ARTICLE 2
15.12TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

15.13    Section 1. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to
15.14read:
15.15
Subd. 7.Emergency Communication Networks
66,470,000
70,233,000
15.16This appropriation is from the state
15.17government special revenue fund for 911
15.18emergency telecommunications services.
15.19(a) Public Safety Answering Points.
15.20$13,664,000 each year is to be distributed
15.21as provided in Minnesota Statutes, section
15.22403.113, subdivision 2 .
15.23(b) Medical Resource Communication
15.24Centers. $683,000 each year is for grants
15.25to the Minnesota Emergency Medical
15.26Services Regulatory Board for the Metro
15.27East and Metro West Medical Resource
15.28Communication Centers that were in
15.29operation before January 1, 2000.
15.30(c) ARMER Debt Service. $17,557,000 the
15.31first year and $23,261,000 the second year
15.32are to the commissioner of finance to pay
16.1debt service on revenue bonds issued under
16.2Minnesota Statutes, section 403.275.
16.3Any portion of this appropriation not needed
16.4to pay debt service in a fiscal year may be
16.5used by the commissioner of public safety to
16.6pay cash for any of the capital improvements
16.7for which bond proceeds were appropriated
16.8by Laws 2005, chapter 136, article 1, section
16.99, subdivision 8, or Laws 2007, chapter 54,
16.10article 1, section 10, subdivision 8.
16.11(d) Metropolitan Council Debt Service.
16.12$1,410,000 each year is to the commissioner
16.13of finance for payment to the Metropolitan
16.14Council for debt service on bonds issued
16.15under Minnesota Statutes, section 403.27.
16.16(e) ARMER State Backbone Operating
16.17Costs. $5,060,000 each year is to the
16.18commissioner of transportation for costs
16.19of maintaining and operating the statewide
16.20radio system backbone.
16.21(f) ARMER Improvements. $1,000,000
16.22each year is for the Statewide Radio Board for
16.23costs of design, construction, maintenance
16.24of, and improvements to those elements
16.25of the statewide public safety radio and
16.26communication system that support mutual
16.27aid communications and emergency medical
16.28services or provide enhancement of public
16.29safety communication interoperability.
16.30(g) Next Generation 911. $3,431,000 the
16.31first year and $6,490,000 the second year
16.32are to replace the current system with the
16.33Next Generation Internet Protocol (IP) based
16.34network. This appropriation is available until
17.1expended. The base level of funding for
17.2fiscal year 2012 shall be $2,965,000.
17.3(h) Grants to Local Government.
17.4$5,000,000 the first year is for grants to
17.5local units of government to assist with
17.6the transition to the ARMER system. This
17.7appropriation is available until June 30, 2012.

17.8    Sec. 2. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:
17.9
17.10
Subd. 12.Rochester Maintenance Facility
26,430,000
24,937,000
17.11This appropriation is from the bond proceeds
17.12account in the trunk highway fund.
17.13To prepare a site for and design, construct,
17.14furnish, and equip a new maintenance facility
17.15in Rochester.
17.16EFFECTIVE DATE.This section is effective the day following final enactment.

17.17    Sec. 3. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
17.18    Subd. 4. Trunk highway fund bond proceeds account. To provide the money
17.19appropriated in this act from the bond proceeds account in the trunk highway fund, the
17.20commissioner of management and budget shall sell and issue bonds of the state in an
17.21amount up to $32,945,000 $31,452,000 in the manner, upon the terms, and with the effect
17.22prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
17.23Constitution, article XIV, section 11, at the times and in the amounts requested by the
17.24commissioner of transportation. The proceeds of the bonds, except accrued interest and
17.25any premium received from the sale of the bonds, must be credited to the bond proceeds
17.26account in the trunk highway fund.
17.27EFFECTIVE DATE.This section is effective the day following final enactment.

17.28    Sec. 4. Laws 2012, chapter 287, article 2, section 1, is amended to read:
17.29    Section 1. ROCHESTER MAINTENANCE FACILITY.
17.30$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
17.31to design, construct, furnish, and equip the maintenance facility in Rochester and
18.1corresponding remodeling of the existing district headquarters building. This appropriation
18.2is from the bond proceeds account in the trunk highway fund.
18.3EFFECTIVE DATE.This section is effective the day following final enactment.

18.4    Sec. 5. Laws 2012, chapter 287, article 2, section 3, is amended to read:
18.5    Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
18.6To provide the money appropriated in this article from the bond proceeds account in
18.7the trunk highway fund, the commissioner of management and budget shall sell and issue
18.8bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the
18.9terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
18.10and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
18.11requested by the commissioner of transportation. The proceeds of the bonds, except
18.12accrued interest and any premium received from the sale of the bonds, must be credited
18.13to the bond proceeds account in the trunk highway fund.
18.14EFFECTIVE DATE.This section is effective the day following final enactment.

18.15    Sec. 6. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to
18.16read:
18.17    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
18.18SALE AUTHORIZATIONS REDUCED.
18.19(a) The remaining balance of the appropriation in Laws 2010, Second Special
18.20Session chapter 1, article 1, section 7, for the economic development and housing
18.21challenge program, estimated to be $450,000, is transferred to the general fund.
18.22(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
18.23section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
18.2412A.07 , is reduced by $1,358,000.
18.25(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
18.26section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
18.27Statutes, section 12A.06, is reduced by $30,000.
18.28(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
18.291, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
18.30Statutes, section 12A.06, is reduced by $392,000.
18.31(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
18.32section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
18.33Statutes, section 12A.06, is reduced by $2,000.
19.1(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
19.2section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
19.3section 12A.06, is reduced by $5,000.
19.4(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
19.5section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
19.6section 12A.06, is reduced by $271,000.
19.7(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
19.8section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
19.9is reduced by $103,000.
19.10(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
19.11chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
19.12highways and trunk highway bridges is canceled. The bond sale authorization in Laws
19.132007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
19.14by $1,428,000 $534,000.
19.15(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
19.16article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
19.17grants to local governments for capital costs related to rehabilitation and replacement of
19.18local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
19.19section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
19.20Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
19.21(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
19.22article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
19.23pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
19.24sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
19.25subdivision 2, is reduced by $2,133,000.
19.26(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
19.27section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
19.28to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.
19.29EFFECTIVE DATE.This section is effective the day following final enactment.

19.30    Sec. 7. Laws 2013, chapter 86, article 1, section 12, subdivision 1, is amended to read:
19.31
19.32
Subdivision 1.Total Appropriation
$
157,851,000
$
161,191,000
161,911,000
19.33
Appropriations by Fund
19.34
2014
2015
19.35
General
82,213,000
82,772,000
20.1
Special Revenue
14,062,000
13,062,000
20.2
20.3
State Government
Special Revenue
59,241,000
63,742,000
20.4
Environmental
69,000
69,000
20.5
Trunk Highway
2,266,000
2,266,000
20.6The amounts that may be spent for each
20.7purpose are specified in the following
20.8subdivisions.

20.9    Sec. 8. Laws 2013, chapter 86, article 1, section 12, subdivision 3, is amended to read:
20.10
Subd. 3.Criminal Apprehension
47,588,000
47,197,000
20.11
Appropriations by Fund
20.12
General
42,315,000
42,924,000
20.13
Special Revenue
3,000,000
2,000,000
20.14
20.15
State Government
Special Revenue
7,000
7,000
20.16
Trunk Highway
2,266,000
2,266,000
20.17
(a) DWI Lab Analysis; Trunk Highway Fund
20.18Notwithstanding Minnesota Statutes, section
20.19161.20, subdivision 3 , $1,941,000 each year
20.20is from the trunk highway fund for laboratory
20.21analysis related to driving-while-impaired
20.22cases.
20.23
(b) Criminal History System
20.24$50,000 the first year and $580,000 the
20.25second year from the general fund and,
20.26notwithstanding Minnesota Statutes, section
20.27299A.705, subdivision 4 , $3,000,000 the
20.28first year and $2,000,000 the second year
20.29from the vehicle services account in the
20.30special revenue fund are to replace the
20.31state criminal history system. This is a
20.32onetime appropriation and is available until
20.33expended. Of this amount, $2,980,000 the
20.34first year and $2,580,000 the second year
20.35are for a onetime transfer to the Office of
21.1Enterprise Technology for start-up costs.
21.2Service level agreements must document all
21.3project-related transfers under this paragraph.
21.4Ongoing operating and support costs for this
21.5system shall be identified and incorporated
21.6into future service level agreements.
21.7The commissioner is authorized to use funds
21.8appropriated under this paragraph for the
21.9purposes specified in paragraph (c).
21.10
(c) Criminal Reporting System
21.11$1,360,000 the first year and $1,360,000 the
21.12second year from the general fund are to
21.13replace the state's crime reporting system
21.14 and include one full-time equivalent business
21.15analyst. This is a onetime appropriation
21.16and is available until expended. Of these
21.17amounts, $1,360,000 the first year and
21.18$1,360,000 $1,290,000 the second year
21.19are for a onetime transfer to the Office of
21.20Enterprise Technology for start-up costs.
21.21Service level agreements must document all
21.22project-related transfers under this paragraph.
21.23Ongoing operating and support costs for this
21.24system shall be identified and incorporated
21.25into future service level agreements.
21.26The commissioner is authorized to use funds
21.27appropriated under this paragraph for the
21.28purposes specified in paragraph (b).
21.29
(d) Forensic Laboratory
21.30$125,000 the first year and $125,000 the
21.31second year from the general fund and,
21.32notwithstanding Minnesota Statutes, section
21.33161.20, subdivision 3 , $125,000 the first
21.34year and $125,000 the second year from the
21.35trunk highway fund are to replace forensic
22.1laboratory equipment at the Bureau of
22.2Criminal Apprehension.
22.3$200,000 the first year and $200,000 the
22.4second year from the general fund and,
22.5notwithstanding Minnesota Statutes, section
22.6161.20, subdivision 3 , $200,000 the first
22.7year and $200,000 the second year from the
22.8trunk highway fund are to improve forensic
22.9laboratory staffing at the Bureau of Criminal
22.10Apprehension.
22.11
(e) Livescan Fingerprinting
22.12$310,000 the first year and $389,000 the
22.13second year from the general fund are to
22.14maintain Livescan fingerprinting machines.
22.15This is a onetime appropriation.
22.16
(f) General Fund Base
22.17The Bureau of Criminal Apprehension's
22.18general fund base is reduced by $1,720,000
22.19in fiscal year 2014 and $2,329,000 in fiscal
22.20year 2015 to reflect onetime appropriations.
22.21
(g) Report
22.22If the vehicle services special revenue account
22.23accrues an unallocated balance in excess
22.24of 50 percent of the previous fiscal year's
22.25expenditures, the commissioner of public
22.26safety shall submit a report to the chairs
22.27and ranking minority members of the house
22.28of representatives and senate committees
22.29with jurisdiction over transportation and
22.30public safety policy and finance. The report
22.31must contain specific policy and legislative
22.32recommendations for reducing the fund
22.33balance and avoiding future excessive fund
22.34balances. The report is due within three
23.1months of the fund balance exceeding the
23.2threshold established in this paragraph.

23.3    Sec. 9. Laws 2013, chapter 86, article 1, section 12, subdivision 4, is amended to read:
23.4
23.5
Subd. 4.Fire Marshal
9,555,000
10,855,000
9,555,000
23.6This appropriation is from the fire safety
23.7account in the special revenue fund and is for
23.8activities under Minnesota Statutes, section
23.9299F.012 .
23.10Of this amount: (1) $7,187,000 each year
23.11is for activities under Minnesota Statutes,
23.12section 299F.012; and (2) $2,368,000 the first
23.13year and $2,368,000 the second year are for
23.14transfers to the general fund under Minnesota
23.15Statutes, section 297I.06, subdivision 3.
23.16$1,300,000 in fiscal year 2014 is appropriated
23.17for activities and programs under Minnesota
23.18Statutes, section 299F.012. This is a onetime
23.19appropriation. By January 1, 2015, the
23.20commissioner of public safety shall report to
23.21the chairs and ranking minority members of
23.22the legislative committees with jurisdiction
23.23over the fire safety account regarding the
23.24balances and uses of the account.

23.25    Sec. 10. Laws 2013, chapter 86, article 1, section 12, subdivision 6, is amended to read:
23.26
23.27
Subd. 6.Office of Justice Programs
36,106,000
36,106,000
37,206,000
23.28
Appropriations by Fund
23.29
23.30
General
36,010,000
36,010,000
37,110,000
23.31
23.32
State Government
Special Revenue
96,000
96,000
23.33
(a) OJP Administration Costs
24.1Up to 2.5 percent of the grant funds
24.2appropriated in this subdivision may be used
24.3by the commissioner to administer the grant
24.4program.
24.5
(b) Crime Victim Programs
24.6$1,500,000 each year must be distributed
24.7through an open and competitive grant
24.8process for existing crime victim programs.
24.9The funds must be used to meet the needs
24.10of underserved and unserved areas and
24.11populations.
24.12
(c) Community Offender Reentry Program
24.13$100,000 each year is for a grant to the
24.14community offender reentry program for
24.15assisting individuals to transition from
24.16incarceration to the communities in and
24.17around Duluth, including assistance in
24.18finding housing, employment, educational
24.19opportunities, counseling, and other
24.20resources. This is a onetime appropriation.
24.21
(d) Youth Intervention Programs
24.22$1,000,000 each year in fiscal year 2014
24.23and $1,750,000 in fiscal year 2015 is
24.24for youth intervention programs under
24.25Minnesota Statutes, section 299A.73. The
24.26appropriations must be used to create new
24.27programs statewide in underserved areas
24.28and to help existing programs serve unmet
24.29needs in program communities. Of this
24.30amount, $100,000 in fiscal year 2015 is for a
24.31youth intervention program targeted toward
24.32East African youth. These appropriations
24.33are available until expended. This amount
24.34 $2,000,000 must be added to the department's
25.1base budget in 2016 and 2017 for grants to
25.2youth intervention programs.
25.3(e) Sexually Exploited Youth; Law
25.4Enforcement and Prosecution Training
25.5$350,000 each year is for a grant to Ramsey
25.6County to be used by the Ramsey County
25.7Attorney's Office to:
25.8(1) develop a statewide model protocol for
25.9law enforcement, prosecutors, and others,
25.10who in their professional capacity encounter
25.11sexually exploited and trafficked youth, on
25.12identifying and intervening with sexually
25.13exploited and trafficked youth;
25.14(2) conduct statewide training for law
25.15enforcement and prosecutors on the model
25.16protocol and the Safe Harbor Law described
25.17in Laws 2011, First Special Session chapter
25.181, article 4, as modified by Senate File No.
25.19384, article 2, if enacted; and
25.20(3) develop and disseminate to law
25.21enforcement, prosecutors, and others, who
25.22in their professional capacity encounter
25.23sexually exploited and trafficked youth, on
25.24investigative best practices to identify sex
25.25trafficked victims and traffickers.
25.26The Ramsey County attorney may use the
25.27money appropriated in this paragraph to
25.28partner with other entities to implement
25.29clauses (1) to (3).
25.30By January 15, 2015, the Ramsey County
25.31Attorney's Office shall report to the chairs
25.32and ranking minority members of the senate
25.33and house of representatives committees and
25.34divisions having jurisdiction over criminal
26.1justice policy and funding on how this
26.2appropriation was spent.
26.3These appropriations are onetime.
26.4(f) Returning Veterans in Crisis
26.5$50,000 each year is for a grant to the Upper
26.6Midwest Community Policing Institute for
26.7use in training community safety personnel
26.8about the use of de-escalation strategies
26.9for handling returning veterans in crisis.
26.10This is a onetime appropriation, and the
26.11unencumbered balance in the first year does
26.12not cancel but is available for the second
26.13year. The commissioner shall consult with
26.14the Peace Officers Standards and Training
26.15(POST) Board regarding the design and
26.16content of the course, and must also ensure
26.17that the training opportunities are reasonably
26.18distributed throughout the state.
26.19(g) Juvenile Detention Alternative
26.20Initiative
26.21$50,000 each year is for a grant to the
26.22Juvenile Detention Alternative Initiative.
26.23This is a onetime appropriation, and funds
26.24unexpended in the first year are available in
26.25the second year.
26.26(h) Emergency Shelters
26.27$300,000 in fiscal year 2015 is for a grant to
26.28provide emergency shelter programming for
26.29victims of domestic abuse and trafficking.
26.30The program shall provide shelter to East
26.31African women and children and other
26.32victims of domestic violence in Minnesota.
26.33The appropriations must be used for the
26.34operating expenses of a shelter.
27.1This is a onetime appropriation.
27.2(i) De-escalation Training
27.3$50,000 in fiscal year 2015 is appropriated to
27.4the commissioner of public safety for training
27.5state and local community safety personnel
27.6in the use of crisis de-escalation techniques.
27.7The commissioner must consult with the
27.8director of the Minnesota Peace Officers and
27.9Training Board, and may consult with any
27.10other state or local governmental official or
27.11nongovernmental authority the commissioner
27.12determines to be relevant, to include
27.13postsecondary institutions, when selecting a
27.14service provider for this training. Among any
27.15other criteria the commissioner may establish
27.16for the selection, the training provider must
27.17have a demonstrated understanding of the
27.18transitions and challenges that veterans may
27.19experience during their re-entry into society
27.20following combat service. The commissioner
27.21must ensure that training opportunities
27.22provided are reasonably distributed
27.23statewide. This is a onetime appropriation.

27.24    Sec. 11. Laws 2013, chapter 86, article 1, section 12, subdivision 7, is amended to read:
27.25
27.26
Subd. 7.Emergency Communication Networks
59,138,000
64,197,000
63,639,000
70,504,000
27.27This appropriation is from the state
27.28government special revenue fund for 911
27.29emergency telecommunications services.
27.30 The base appropriation is $63,639,000 in
27.31each of fiscal years 2016 and 2017.
27.32
(a) Public Safety Answering Points
28.1$13,664,000 each year is to be distributed
28.2as provided in Minnesota Statutes, section
28.3403.113, subdivision 2 .
28.4
(b) Medical Resource Communication Centers
28.5$683,000 each year is for grants to the
28.6Minnesota Emergency Medical Services
28.7Regulatory Board for the Metro East
28.8and Metro West Medical Resource
28.9Communication Centers that were in
28.10operation before January 1, 2000.
28.11
(c) ARMER Debt Service
28.12$23,261,000 each year is to the commissioner
28.13of management and budget to pay debt
28.14service on revenue bonds issued under
28.15Minnesota Statutes, section 403.275.
28.16Any portion of this appropriation not needed
28.17to pay debt service in a fiscal year may be
28.18used by the commissioner of public safety to
28.19pay cash for any of the capital improvements
28.20for which bond proceeds were appropriated
28.21by Laws 2005, chapter 136, article 1, section
28.229, subdivision 8; or Laws 2007, chapter 54,
28.23article 1, section 10, subdivision 8.
28.24
(d) ARMER State Backbone Operating Costs
28.25$9,250,000 the first year and $9,650,000
28.26the second year are to the commissioner of
28.27transportation for costs of maintaining and
28.28operating the first and third phases of the
28.29statewide radio system backbone.
28.30
(e) ARMER Improvements
28.31$1,000,000 each year is to the Statewide
28.32Radio Board for costs of design, construction,
28.33and maintenance of, and improvements
28.34to, those elements of the statewide public
29.1safety radio and communication system
29.2that support mutual aid communications
29.3and emergency medical services or provide
29.4interim enhancement of public safety
29.5communication interoperability in those
29.6areas of the state where the statewide public
29.7safety radio and communication system is
29.8not yet implemented.

29.9    Sec. 12. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:
29.10
Subd. 2.Multimodal Systems
29.11(a) Aeronautics
29.12
29.13
(1) Airport Development and Assistance
13,648,000
14,648,000
13,648,000
16,648,000
29.14This appropriation is from the state
29.15airports fund and must be spent according
29.16to Minnesota Statutes, section 360.305,
29.17subdivision 4
.
29.18The base appropriation for fiscal years 2016
29.19and 2017 is $14,298,000 for each year.
29.20Notwithstanding Minnesota Statutes, section
29.2116A.28, subdivision 6 , this appropriation is
29.22available for five years after appropriation.
29.23If the appropriation for either year is
29.24insufficient, the appropriation for the other
29.25year is available for it.
29.26For the current biennium, the commissioner
29.27of transportation may establish different
29.28local contribution rates for airport projects
29.29than those established in Minnesota Statutes,
29.30section 360.305, subdivision 4.
29.31
(2) Aviation Support and Services
6,386,000
6,386,000
30.1
Appropriations by Fund
30.2
Airports
5,286,000
5,286,000
30.3
Trunk Highway
1,100,000
1,100,000
30.4$65,000 in each year is from the state airports
30.5fund for the Civil Air Patrol.
30.6
30.7
(b) Transit
17,226,000
17,245,000
25,245,000
30.8
Appropriations by Fund
30.9
30.10
General
16,451,000
16,470,000
24,470,000
30.11
Trunk Highway
775,000
775,000
30.12$100,000 in each year is from the general
30.13fund for the administrative expenses of the
30.14Minnesota Council on Transportation Access
30.15under Minnesota Statutes, section 174.285.
30.16$78,000 in each year is from the general
30.17fund for grants to greater Minnesota transit
30.18providers as reimbursement for the costs of
30.19providing fixed route public transit rides free
30.20of charge under Minnesota Statutes, section
30.21174.24, subdivision 7 , for veterans certified
30.22as disabled.
30.23The base appropriation from the general fund
30.24for fiscal years 2016 and 2017 is $20,470,000
30.25for each year.
30.26
(c) Passenger Rail
500,000
500,000
30.27This appropriation is from the general
30.28fund for passenger rail system planning,
30.29alternatives analysis, environmental analysis,
30.30design, and preliminary engineering under
30.31Minnesota Statutes, sections 174.632 to
30.32174.636 .
30.33
(d) Freight
5,653,000
5,153,000
31.1
Appropriations by Fund
31.2
General
756,000
256,000
31.3
Trunk Highway
4,897,000
4,897,000
31.4$500,000 in the first year is from the general
31.5fund to pay for the department's share of costs
31.6associated with the cleanup of contaminated
31.7state rail bank property. This appropriation is
31.8available until expended.
31.9
31.10
(e) Safe Routes to School
250,000
250,000
500,000
31.11This appropriation $250,000 in the first
31.12year and $500,000 in the second year is
31.13from the general fund for non-infrastructure
31.14activities in the safe routes to school program
31.15under Minnesota Statutes, section 174.40,
31.16subdivision 7a
.
31.17EFFECTIVE DATE.This section is effective the day following final enactment.

31.18    Sec. 13. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:
31.19
Subd. 3.State Roads
31.20
31.21
(a) Operations and Maintenance
262,395,000
267,395,000
262,395,000
300,395,000
31.22$5,000,000 in each year is from the trunk
31.23highway fund for accelerated replacement of
31.24snow plowing equipment.
31.25The base appropriation for operations and
31.26maintenance for fiscal years 2016 and 2017
31.27is $267,395,000 in each year.
31.28
31.29
(b) Program Planning and Delivery
206,795,000
206,720,000
209,720,000
31.30
Appropriations by Fund
31.31
2014
2015
31.32
H.U.T.D.
75,000
0
31.33
31.34
Trunk Highway
206,720,000
206,720,000
209,720,000
32.1The base appropriation for program planning
32.2and delivery for fiscal years 2016 and 2017
32.3is $206,720,000 in each year.
32.4$250,000 in each year is for the department's
32.5administrative costs for creation and
32.6operation of the Joint Program Office for
32.7Economic Development and Alternative
32.8Finance, including costs of hiring a
32.9consultant and preparing required reports.
32.10$130,000 in each year is available for
32.11administrative costs of the targeted group
32.12business program.
32.13$266,000 in each year is available for grants
32.14to metropolitan planning organizations
32.15outside the seven-county metropolitan area.
32.16$75,000 in each year is available for a
32.17transportation research contingent account
32.18to finance research projects that are
32.19reimbursable from the federal government or
32.20from other sources. If the appropriation for
32.21either year is insufficient, the appropriation
32.22for the other year is available for it.
32.23$900,000 in each year is available for
32.24grants for transportation studies outside
32.25the metropolitan area to identify critical
32.26concerns, problems, and issues. These
32.27grants are available: (1) to regional
32.28development commissions; (2) in regions
32.29where no regional development commission
32.30is functioning, to joint powers boards
32.31established under agreement of two or
32.32more political subdivisions in the region to
32.33exercise the planning functions of a regional
32.34development commission; and (3) in regions
32.35where no regional development commission
33.1or joint powers board is functioning, to the
33.2department's district office for that region.
33.3$75,000 in the first year is from the highway
33.4user tax distribution fund to the commissioner
33.5for a grant to the Humphrey School of Public
33.6Affairs at the University of Minnesota for
33.7WorkPlace Telework program congestion
33.8relief efforts consisting of maintenance of
33.9Web site tools and content. This is a onetime
33.10appropriation and is available in the second
33.11year.
33.12
(c) State Road Construction Activity
33.13
33.14
(1) Economic Recovery Funds - Federal
Highway Aid
1,000,000
1,000,000
33.15This appropriation is to complete projects
33.16using funds made available to the
33.17commissioner of transportation under
33.18title XII of the American Recovery and
33.19Reinvestment Act of 2009, Public Law
33.20111-5, and implemented under Minnesota
33.21Statutes, section 161.36, subdivision 7. The
33.22base appropriation is $1,000,000 in fiscal
33.23year 2016 and $0 in fiscal year 2017.
33.24
33.25
(2) State Road Construction
909,400,000
923,400,000
815,600,000
816,425,000
33.26It is estimated that these appropriations will
33.27be funded as follows:
33.28
Appropriations by Fund
33.29
33.30
Federal Highway
Aid
489,200,000
482,200,000
33.31
33.32
Highway User Taxes
420,200,000
434,200,000
333,400,000
334,225,000
33.33The commissioner of transportation shall
33.34notify the chairs and ranking minority
33.35members of the legislative committees with
33.36jurisdiction over transportation finance of
34.1any significant events that should cause these
34.2estimates to change.
34.3This appropriation is for the actual
34.4construction, reconstruction, and
34.5improvement of trunk highways, including
34.6design-build contracts and consultant usage
34.7to support these activities. This includes the
34.8cost of actual payment to landowners for
34.9lands acquired for highway rights-of-way,
34.10payment to lessees, interest subsidies, and
34.11relocation expenses.
34.12The base appropriation for state road
34.13construction for fiscal years 2016 and 2017
34.14is $645,000,000 $645,567,000 in each year.
34.15$10,000,000 in each year is from the
34.16trunk highway fund for the transportation
34.17economic development program under
34.18Minnesota Statutes, section 174.12.
34.19The commissioner may expend up to one-half
34.20of one percent of the federal appropriations
34.21under this clause as grants to opportunity
34.22industrialization centers and other nonprofit
34.23job training centers for job training programs
34.24related to highway construction.
34.25The commissioner may transfer up to
34.26$15,000,000 each year from the trunk
34.27highway fund to the transportation revolving
34.28loan fund.
34.29The commissioner may receive money
34.30covering other shares of the cost of
34.31partnership projects. These receipts are
34.32appropriated to the commissioner for these
34.33projects.
35.1$14,000,000 in the first year is from the trunk
35.2highway fund for the specific improvements
35.3to "Old Highway 14" described in the
35.4settlement agreement and release executed
35.5January 7, 2014, between the state and Steele
35.6and Waseca Counties.
35.7$825,000 in the second year is from the trunk
35.8highway fund for costs of implementing
35.9highway work zone safety initiatives.
35.10The base appropriation for this purpose is
35.11$567,000 in each of fiscal years 2016 and
35.122017.
35.13
(d) Highway Debt Service
158,417,000
189,821,000
35.14$148,917,000 in the first year and
35.15$180,321,000 in the second year are for
35.16transfer to the state bond fund. If an
35.17appropriation is insufficient to make all
35.18transfers required in the year for which it is
35.19made, the commissioner of management and
35.20budget shall notify the senate Committee
35.21on Finance and the house of representatives
35.22Committee on Ways and Means of the
35.23amount of the deficiency and shall then
35.24transfer that amount under the statutory open
35.25appropriation. Any excess appropriation
35.26cancels to the trunk highway fund.
35.27
(e) Electronic Communications
5,171,000
5,171,000
35.28
Appropriations by Fund
35.29
General
3,000
3,000
35.30
Trunk Highway
5,168,000
5,168,000
35.31The general fund appropriation is to equip
35.32and operate the Roosevelt signal tower for
35.33Lake of the Woods weather broadcasting.
35.34EFFECTIVE DATE.This section is effective the day following final enactment.

36.1    Sec. 14. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:
36.2
Subd. 6.Transfers
36.3(a) With the approval of the commissioner of
36.4management and budget, the commissioner
36.5of transportation may transfer unencumbered
36.6balances among the appropriations from the
36.7trunk highway fund and the state airports
36.8fund made in this section. No transfer
36.9may be made from the appropriations for
36.10state road construction or for debt service.
36.11Transfers under this paragraph may not be
36.12made between funds. Transfers under this
36.13paragraph must be reported immediately to
36.14the chairs and ranking minority members of
36.15the legislative committees with jurisdiction
36.16over transportation finance.
36.17(b) The commissioner shall transfer from
36.18the flexible highway account in the county
36.19state-aid highway fund: (1) $5,700,000 in the
36.20first year and $21,000,000 in the second year
36.21to the trunk highway fund; (2) $13,000,000
36.22in the first year to the municipal turnback
36.23account in the municipal state-aid street fund;
36.24(3) $10,000,000 in the second year to the
36.25municipal turnback account in the municipal
36.26state-aid street fund; and (4) the remainder
36.27in each year to the county turnback account
36.28in the county state-aid highway fund. The
36.29funds transferred are for highway turnback
36.30purposes as provided under Minnesota
36.31Statutes, section 161.081, subdivision 3.

36.32    Sec. 15. Laws 2013, chapter 117, article 1, section 4, is amended to read:
36.33
36.34
Sec. 4. METROPOLITAN COUNCIL
$
107,889,000
$
76,970,000
76,910,000
37.1This appropriation is from the general fund
37.2for transit system operations under Minnesota
37.3Statutes, sections 473.371 to 473.449.
37.4The base appropriation for fiscal years 2016
37.5and 2017 is $76,686,000 $76,626,000 in
37.6each year.
37.7$37,000,000 in the first year is for the
37.8Southwest Corridor light rail transit line
37.9from the Hiawatha light rail transit line in
37.10downtown Minneapolis to Eden Prairie, to be
37.11used for environmental studies, preliminary
37.12engineering, acquisition of real property, or
37.13interests in real property, and design. This
37.14is a onetime appropriation and is available
37.15until expended.

37.16    Sec. 16. Laws 2013, chapter 117, article 1, section 5, subdivision 2, is amended to read:
37.17
Subd. 2.Administration and Related Services
37.18
(a) Office of Communications
504,000
504,000
37.19
Appropriations by Fund
37.20
General
111,000
111,000
37.21
Trunk Highway
393,000
393,000
37.22
37.23
(b) Public Safety Support
8,439,000
8,439,000
8,499,000
37.24
Appropriations by Fund
37.25
37.26
General
3,467,000
3,467,000
3,527,000
37.27
H.U.T.D.
1,366,000
1,366,000
37.28
Trunk Highway
3,606,000
3,606,000
37.29$380,000 in each year is from the general
37.30fund for payment of public safety officer
37.31survivor benefits under Minnesota Statutes,
37.32section 299A.44. If the appropriation for
37.33either year is insufficient, the appropriation
37.34for the other year is available for it.
38.1$1,367,000 in each year is from the general
38.2fund to be deposited in the public safety
38.3officer's benefit account. This money
38.4is available for reimbursements under
38.5Minnesota Statutes, section 299A.465.
38.6$600,000 in each year is from the general
38.7fund and $100,000 in each year is from the
38.8trunk highway fund for soft body armor
38.9reimbursements under Minnesota Statutes,
38.10section 299A.38.
38.11$792,000 in each year is from the general
38.12fund for transfer by the commissioner of
38.13management and budget to the trunk highway
38.14fund on December 31, 2013, and December
38.1531, 2014, respectively, in order to reimburse
38.16the trunk highway fund for expenses not
38.17related to the fund. These represent amounts
38.18appropriated out of the trunk highway
38.19fund for general fund purposes in the
38.20administration and related services program.
38.21$610,000 in each year is from the highway
38.22user tax distribution fund for transfer by the
38.23commissioner of management and budget
38.24to the trunk highway fund on December 31,
38.252013, and December 31, 2014, respectively,
38.26in order to reimburse the trunk highway
38.27fund for expenses not related to the fund.
38.28These represent amounts appropriated out
38.29of the trunk highway fund for highway
38.30user tax distribution fund purposes in the
38.31administration and related services program.
38.32$716,000 in each year is from the highway
38.33user tax distribution fund for transfer by the
38.34commissioner of management and budget to
38.35the general fund on December 31, 2013, and
39.1December 31, 2014, respectively, in order to
39.2reimburse the general fund for expenses not
39.3related to the fund. These represent amounts
39.4appropriated out of the general fund for
39.5operation of the criminal justice data network
39.6related to driver and motor vehicle licensing.
39.7Before January 15, 2015, the commissioner
39.8of public safety shall review the amounts and
39.9purposes of the transfers under this paragraph
39.10and shall recommend necessary changes to
39.11the legislative committees with jurisdiction
39.12over transportation finance.
39.13$60,000 in the second year is appropriated
39.14from the general fund for light rail safety
39.15oversight. The base appropriation from the
39.16general fund for this purpose in fiscal years
39.172016 and 2017 is $60,000 each year.
39.18
(c) Technology and Support Service
3,685,000
3,685,000
39.19
Appropriations by Fund
39.20
General
1,322,000
1,322,000
39.21
H.U.T.D.
19,000
19,000
39.22
Trunk Highway
2,344,000
2,344,000

39.23    Sec. 17. Laws 2013, chapter 117, article 1, section 5, subdivision 3, is amended to read:
39.24
Subd. 3.State Patrol
39.25
(a) Patrolling Highways
72,522,000
72,522,000
39.26
Appropriations by Fund
39.27
General
37,000
37,000
39.28
H.U.T.D.
92,000
92,000
39.29
Trunk Highway
72,393,000
72,393,000
39.30
(b) Commercial Vehicle Enforcement
7,796,000
7,796,000
39.31
39.32
(c) Capitol Security
4,355,000
4,355,000
5,355,000
39.33This appropriation is from the general fund.
40.1$1,250,000 in each year 2014 and $2,250,000
40.2in 2015 and each subsequent year is to
40.3implement the recommendations of the
40.4advisory committee on Capitol Area Security
40.5under Minnesota Statutes, section 299E.04,
40.6including the creation of an emergency
40.7manager position under Minnesota Statutes,
40.8section 299E.01, subdivision 2, and an
40.9increase in the number of State Patrol
40.10troopers and other security officers assigned
40.11to the Capitol complex.
40.12The commissioner may not: (1) spend
40.13any money from the trunk highway fund
40.14for capitol security; or (2) permanently
40.15transfer any state trooper from the patrolling
40.16highways activity to capitol security.
40.17The commissioner may not transfer any
40.18money appropriated to the commissioner
40.19under this section: (1) to capitol security; or
40.20(2) from capitol security.
40.21
(d) Vehicle Crimes Unit
693,000
693,000
40.22This appropriation is from the highway user
40.23tax distribution fund.
40.24This appropriation is to investigate: (1)
40.25registration tax and motor vehicle sales tax
40.26liabilities from individuals and businesses
40.27that currently do not pay all taxes owed;
40.28and (2) illegal or improper activity related
40.29to sale, transfer, titling, and registration of
40.30motor vehicles.

40.31    Sec. 18. Laws 2013, chapter 117, article 1, section 5, subdivision 4, is amended to read:
40.32
Subd. 4.Driver and Vehicle Services
40.33
40.34
(a) Vehicle Services
27,909,000
28,430,000
28,453,000
41.1
Appropriations by Fund
41.2
41.3
Special Revenue
19,673,000
19,771,000
20,217,000
41.4
H.U.T.D.
8,236,000
8,236,000
41.5The special revenue fund appropriation is
41.6from the vehicle services operating account.
41.7$650,000 in each year is from the special
41.8revenue fund for seven additional positions
41.9to enhance customer service related to
41.10vehicle title issuance.
41.11$521,000 in the second year is from
41.12the special revenue fund for the vehicle
41.13services portion of a new telephone
41.14system and is for transfer to the Office of
41.15Enterprise Technology for construction and
41.16development of the system. This is a onetime
41.17appropriation and is available until expended.
41.18$23,000 in the second year is from the special
41.19revenue fund for expenses related to the task
41.20force on motor vehicle insurance coverage
41.21verification.
41.22The base appropriation from the special
41.23revenue fund is $27,909,000 $19,673,000
41.24for fiscal year 2016 and $27,909,000
41.25 $19,673,000 for fiscal year 2017.
41.26
41.27
(b) Driver Services
28,749,000
29,162,000
29,185,000
41.28
Appropriations by Fund
41.29
41.30
Special Revenue
28,748,000
29,161,000
29,184,000
41.31
Trunk Highway
1,000
1,000
41.32The special revenue fund appropriation is
41.33from the driver services operating account.
42.1$71,000 in the second year is from the special
42.2revenue fund for one additional position
42.3related to facial recognition.
42.4$279,000 in the second year is from
42.5the special revenue fund for the driver
42.6services portion of a new telephone
42.7system and is for transfer to the Office of
42.8Enterprise Technology for construction and
42.9development of the system. This is a onetime
42.10appropriation and is available until expended.
42.11$37,000 in the first year and $33,000 in the
42.12second year are from the special revenue
42.13fund for one half-time position to assist with
42.14the Novice Driver Improvement Task Force
42.15under Minnesota Statutes, section 171.0701,
42.16subdivision 1a
. The base appropriation for
42.17this position is $6,000 in fiscal year 2016 and
42.18$0 in fiscal year 2017.
42.19$67,000 in the second year is from the
42.20special revenue fund for one new position to
42.21administer changes to the ignition interlock
42.22program. The base appropriation for this
42.23position in fiscal years 2016 and 2017 is
42.24$62,000 in each year.
42.25$23,000 in the second year is from the special
42.26revenue fund for expenses related to the task
42.27force on motor vehicle insurance coverage
42.28verification.
42.29The base appropriation from the special
42.30revenue fund is $28,851,000 $28,850,000
42.31for fiscal year 2016 and $28,845,000
42.32 $28,844,000 for fiscal year 2017.

42.33    Sec. 19. TRANSFER; EMERGENCY MANAGEMENT.
43.1On July 1, 2014, the commissioner of management and budget shall transfer
43.2$3,000,000 from the general fund to the disaster assistance contingency account created
43.3in 2014 Senate File No. 2601, if enacted.

43.4ARTICLE 3
43.5RAILROAD SAFETY

43.6    Section 1. Minnesota Statutes 2012, section 115E.08, is amended by adding a
43.7subdivision to read:
43.8    Subd. 3a. Railroad preparedness; public safety. The commissioner of public
43.9safety shall carry out public safety protection activities related to railroad spill and
43.10discharge preparedness. Duties under this subdivision include, but are not limited to:
43.11(1) assisting local emergency managers and fire officials to understand the hazards
43.12of oil and hazardous substances, as well as general strategies for hazard identification,
43.13initial isolation, and other actions necessary to ensure public safety;
43.14(2) assisting railroad companies to develop suggested protocols and practices for
43.15local first responder use in protecting the public's safety;
43.16(3) facilitating cooperation between railroads, county and city emergency managers,
43.17and other public safety organizations;
43.18(4) participating in major exercises and training sessions;
43.19(5) assisting local units of government to incorporate railroad hazard and response
43.20information into local emergency operations plans;
43.21(6) monitoring the public safety-related training and planning requirements of
43.22section 115E.03; and
43.23(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.
43.24EFFECTIVE DATE.This section is effective the day following final enactment.

43.25    Sec. 2. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
43.26    Subdivision 1. Position Positions established; duties. (a) The commissioner of
43.27transportation shall establish a position of three state rail safety inspector positions in
43.28the Office of Freight and Commercial Vehicle Operations of the Minnesota Department
43.29of Transportation. On or after July 1, 2015, the commissioner may establish a fourth
43.30state rail safety inspector position following consultation with railroad companies.
43.31 The commissioner shall apply to and enter into agreements with the Federal Railroad
43.32Administration (FRA) of the United States Department of Transportation to participate
43.33in the federal State Rail Safety Partnership Participation Program for training and
44.1certification of an inspector under authority of United States Code, title 49, sections 20103,
44.220105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
44.3     The(b) A state rail safety inspector shall inspect mainline track, secondary track, and
44.4yard and industry track; inspect railroad right-of-way, including adjacent or intersecting
44.5drainage, culverts, bridges, overhead structures, and traffic and other public crossings;
44.6inspect yards and physical plants; review and enforce safety requirements; review
44.7maintenance and repair records; and review railroad security measures.
44.8(c) A state rail safety inspector may perform, but is not limited to, the duties
44.9described in the federal State Rail Safety Participation Program. An inspector may train,
44.10be certified, and participate in any of the federal State Rail Safety Participation Program
44.11disciplines, including: track, signal and train control, motive power and equipment,
44.12operating practices compliance, hazardous materials, and highway-rail grade crossings.
44.13    (d) To the extent delegated by the Federal Railroad Administration and authorized
44.14 by the commissioner, the an inspector may issue citations for violations of this chapter, or
44.15to ensure railroad employee and public safety and welfare.
44.16EFFECTIVE DATE.This section is effective the day following final enactment.

44.17    Sec. 3. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
44.18    Subd. 2. Railroad company assessment; account; appropriation. (a) As provided
44.19in this subdivision, the commissioner shall annually assess railroad companies that are
44.20(1) defined as common carriers under section 218.011,; (2) classified by federal law or
44.21regulation as Class I Railroads, or Class I Rail Carriers, Class II Railroads, or Class II
44.22Carriers; and (3) operating in this state,.
44.23    (b) The assessment must be by a division of state rail safety inspector program costs
44.24in equal proportion between carriers based on route miles operated in Minnesota, assessed
44.25in equal amounts for 365 days of the calendar year. The commissioner shall assess all
44.26start-up or re-establishment costs, and all related costs of initiating the state rail safety
44.27inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties
44.28must begin and be assessed on January 1, 2009.
44.29    (c) The assessments must be deposited in a special account in the special revenue
44.30fund, to be known as the state rail safety inspection account. Money in the account is
44.31appropriated to the commissioner and may be expended to cover the costs incurred for the
44.32establishment and ongoing responsibilities of the state rail safety inspector program.
44.33EFFECTIVE DATE.This section is effective the day following final enactment.

45.1    Sec. 4. [299A.55] RAILROAD SAFETY; OIL AND OTHER HAZARDOUS
45.2MATERIALS.
45.3    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
45.4have the meanings given.
45.5(b) "Applicable rail carrier" means a railroad company that is subject to an
45.6assessment under section 219.015, subdivision 2.
45.7(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
45.8(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
45.9    Subd. 2. Railroad safety account. (a) A railroad safety account is created in the
45.10special revenue fund. The account consists of funds collected under subdivision 4 and
45.11funds donated, allotted, transferred, or otherwise provided to the account.
45.12(b) Money in the account is annually appropriated to the commissioner of public
45.13safety for the purposes specified in subdivision 3.
45.14    Subd. 3. Allocation of railroad safety funds. (a) Subject to funding appropriated
45.15for this subdivision, the commissioner shall provide funds for training and response
45.16preparedness related to derailments, discharge incidents, or spills involving trains carrying
45.17oil or other hazardous substances.
45.18(b) The commissioner shall allocate available funds to the Board of Firefighter
45.19Training and Education under section 299N.02 and the Division of Homeland Security
45.20and Emergency Management.
45.21(c) Prior to making allocations under paragraph (b), the commissioner shall consult
45.22with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
45.23(d) The commissioner and the entities identified in paragraph (b) shall prioritize
45.24uses of funds based on:
45.25(1) firefighter training needs;
45.26(2) community risk from discharge incidents or spills;
45.27(3) geographic balance; and
45.28(4) recommendations of the Fire Service Advisory Committee.
45.29(e) The following are permissible uses of funds provided under this subdivision:
45.30(1) training costs, which may include, but are not limited to, training curriculum,
45.31trainers, trainee overtime salary, other personnel overtime salary, and tuition;
45.32(2) costs of gear and equipment related to hazardous materials readiness, response,
45.33and management, which may include, but are not limited to, original purchase,
45.34maintenance, and replacement;
45.35(3) supplies related to the uses under clauses (1) and (2); and
45.36(4) emergency preparedness planning and coordination.
46.1(f) Notwithstanding paragraph (b), from funds in the railroad safety account
46.2provided for the purposes under this subdivision, the commissioner may retain a balance
46.3in the account for budgeting in subsequent fiscal years.
46.4    Subd. 4. Assessment; oil and hazardous substances. (a) The commissioner of
46.5public safety shall annually assess $1,250,000 to railroad companies based on the formula
46.6specified in paragraph (b). The commissioner shall deposit funds collected under this
46.7subdivision in the railroad safety account under subdivision 2.
46.8(b) The assessment for each railroad is the total annual assessment amount, divided
46.9in equal proportion between applicable rail carriers based on route miles operated in
46.10Minnesota.
46.11(c) This subdivision expires on July 1, 2016.

46.12    Sec. 5. LEGISLATIVE REPORT ON INCIDENT PREPAREDNESS FOR OIL
46.13AND OTHER HAZARDOUS MATERIALS TRANSPORTATION BY RAIL.
46.14By January 15, 2015, the commissioner of public safety shall submit a report on
46.15incident and emergency response preparedness for oil and other hazardous materials
46.16transported by rail to the chairs and ranking minority members of the legislative
46.17committees with jurisdiction over transportation and public safety policy and finance.
46.18At a minimum, the report must:
46.19(1) summarize the preparedness and emergency response framework in the state;
46.20(2) provide an assessment of costs and needs of fire departments and other
46.21emergency first responders for training and equipment to respond to discharge or spill
46.22incidents involving oil and other hazardous materials transported by rail;
46.23(3) summarize the allocation and uses of funds under Minnesota Statutes, section
46.24299A.55; and
46.25(4) provide recommendations for any legislative changes.

46.26    Sec. 6. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND
46.27RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS
46.28TRANSPORTATION.
46.29(a) The commissioner of transportation shall conduct a study on highway-rail grade
46.30crossing improvements for oil and other hazardous materials transported by rail, and on
46.31rail safety. At a minimum, the study must:
46.32(1) provide information that assists in risk management associated with
46.33transportation of oil and other hazardous materials by rail;
47.1(2) develop criteria to prioritize needs and improvements at highway-rail grade
47.2crossings;
47.3(3) consider alternatives for safety improvements including, but not limited to, active
47.4warning devices such as gates and signals, closings, and grade separation;
47.5(4) provide findings and recommendations that serve to direct accelerated
47.6investments in highway-rail grade crossing safety improvements; and
47.7(5) analyze state inspection activities and staffing for track and hazardous materials
47.8under Minnesota Statutes, section 219.015.
47.9(b) The commissioner shall submit an interim update on the study by August 31,
47.102014, and a final report by October 31, 2014, to the chairs and ranking minority members
47.11of the legislative committees with jurisdiction over transportation policy and finance.
47.12EFFECTIVE DATE.This section is effective the day following final enactment.

47.13ARTICLE 4
47.14TRANSPORTATION FINANCE PROVISIONS

47.15    Section 1. Minnesota Statutes 2012, section 161.14, is amended by adding a
47.16subdivision to read:
47.17    Subd. 74. Trooper Glen Skalman Memorial Highway. That segment of signed
47.18U.S. Highway 61 from the intersection with signed U.S. Highway 8 in Forest Lake to
47.19the intersection with 260th Street in Wyoming is designated as "Trooper Glen Skalman
47.20Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable
47.21design to mark this highway and erect appropriate signs in the vicinity of the location
47.22where Trooper Skalman died.
47.23EFFECTIVE DATE.This section is effective the day following final enactment.

47.24    Sec. 2. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
47.25    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the
47.26account may be used by the commissioner of transportation for operations and routine
47.27maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive
47.28repairs. No money from this account may be used for any purposes except those described
47.29in this section, and no money from this account may be transferred to any other account
47.30in the state treasury without specific legislative authorization. Any money transferred
47.31from the trunk highway fund may only be used for trunk highway purposes. For the
47.32purposes of this section:
48.1(1) "Income" is the amount of interest on debt securities and dividends on equity
48.2securities. Any gains or losses from the sale of securities must be added to the principal
48.3of the account.
48.4(2) "Routine maintenance" means activities that are predictable and repetitive, but
48.5not activities that would constitute major repairs or rehabilitation.
48.6(b) Investment management fees incurred by the State Board of Investment are
48.7eligible expenses for reimbursement from the account.
48.8(c) The commissioner of transportation has authority to approve or deny expenditures
48.9of funds in the account.

48.10    Sec. 3. [168.1299] MINNESOTA GOLF PLATES.
48.11    Subdivision 1. Issuance and design. Notwithstanding section 168.1293, the
48.12commissioner shall issue special Minnesota golf plates or a single motorcycle plate to
48.13an applicant who:
48.14(1) is a registered owner of a passenger automobile, one-ton pickup truck,
48.15motorcycle, or recreational vehicle;
48.16(2) pays a fee of $10 and any other fees required by this chapter;
48.17(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota
48.18Section PGA Foundation account; and
48.19(4) complies with this chapter and rules governing registration of motor vehicles
48.20and licensing of drivers.
48.21    Subd. 2. Design. After consultation with the Minnesota Section PGA and the
48.22Minnesota Golf Association, the commissioner shall design the special plate.
48.23    Subd. 3. Plates transfer. On payment of a fee of $5, plates issued under this section
48.24may be transferred to another passenger automobile, one-ton pickup truck, motorcycle,
48.25or other recreational vehicle registered to the individual to whom the special plates were
48.26issued.
48.27    Subd. 4. Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are
48.28credited to the vehicle services operating account in the special revenue fund.
48.29    Subd. 5. Contributions. Contributions collected under subdivision 1, clause (3),
48.30are credited first to the commissioner of public safety for the cost of administering the
48.31Minnesota Section PGA Foundation account, which is established in the special revenue
48.32fund. After the commissioner's administration costs are paid each year, remaining
48.33contributions are credited to the Minnesota Section PGA Foundation account. Money in
48.34the account is appropriated to the commissioner of public safety for distribution to the
49.1Minnesota Section PGA Foundation, to be used to enhance and promote the game of
49.2golf throughout Minnesota.
49.3EFFECTIVE DATE.Subdivisions 1 to 4 are effective January 1, 2015, for special
49.4Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.

49.5    Sec. 4. Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision
49.6to read:
49.7    Subd. 95. Work zone. "Work zone" means a segment of street or highway for which:
49.8(1) a road authority or its agent is constructing, reconstructing, or maintaining the
49.9physical structure of the roadway, which may include, but is not limited to, shoulders,
49.10features adjacent to the roadway, and utilities and highway appurtenances, whether
49.11underground or overhead; and
49.12(2) any of the following applies:
49.13(i) official traffic-control devices that indicate the segment of street or highway under
49.14construction, reconstruction, or maintenance, are erected;
49.15(ii) one or more lanes of traffic are closed;
49.16(iii) a flagger under section 169.06, subdivision 4a, is present;
49.17(iv) a construction zone speed limit under section 169.14, subdivision 4, is
49.18established; or
49.19(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.
49.20EFFECTIVE DATE.This section is effective August 1, 2014.

49.21    Sec. 5. Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:
49.22    Subd. 4. Obedience to traffic-control signal or flagger authorized persons;
49.23presumptions. (a) The driver of any vehicle shall obey the instructions of any official
49.24traffic-control device applicable thereto placed in accordance with the provisions of this
49.25chapter, unless otherwise directed by a police officer or by a flagger authorized under this
49.26subdivision, subject to the exceptions granted the driver of an authorized emergency
49.27vehicle in this chapter.
49.28(b) No provision of this chapter for which official traffic-control devices are required
49.29shall be enforced against an alleged violator if at the time and place of the alleged
49.30violation an official device is not in proper position and sufficiently legible to be seen by
49.31an ordinarily observant person. Whenever a particular section does not state that official
49.32traffic-control devices are required, such section shall be effective even though no devices
49.33are erected or in place.
50.1(c) Whenever official traffic-control devices are placed in position approximately
50.2conforming to the requirements of this chapter, such devices shall be presumed to have
50.3been so placed by the official act or direction of lawful authority, unless the contrary
50.4shall be established by competent evidence.
50.5(d) Any official traffic-control device placed pursuant to the provisions of this
50.6chapter and purporting to conform to the lawful requirements pertaining to such devices
50.7shall be presumed to comply with the requirements of this chapter, unless the contrary
50.8shall be established by competent evidence.
50.9(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
50.10until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
50.11been stopped by a flagger in a designated work zone may proceed after stopping only on
50.12instruction by the flagger.
50.13(f) An overdimensional load escort driver with a certificate issued under section
50.14299D.085 , while acting as a flagger escorting a legal overdimensional load, may stop
50.15vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
50.16operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
50.17proceed only on instruction by the flagger or a police officer.
50.18(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to
50.19proceed, if the person: (1) holds a motorcycle road guard certificate issued under section
50.20171.60 ; (2) meets the safety and equipment standards for operating under the certificate;
50.21(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory
50.22or home rule charter city through which the motorcycle group is proceeding; and (5)
50.23has obtained consent from the chief of police, or the chief's designee, of any city of the
50.24first class through which the group is proceeding. A flagger operating as provided under
50.25this paragraph may direct operators of motorcycles within a motorcycle group ride or
50.26other vehicle traffic, notwithstanding any contrary indication of a traffic-control device,
50.27including stop signs or traffic-control signals. A person operating a vehicle that has been
50.28stopped by a flagger under this paragraph may proceed only on instruction by the flagger
50.29or a police officer.
50.30EFFECTIVE DATE.This section is effective August 1, 2014.

50.31    Sec. 6. Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision
50.32to read:
50.33    Subd. 4a. Obedience to work zone flagger; violation, penalty. (a) A flagger in a
50.34work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to
51.1proceed. A person operating a motor vehicle that has been stopped by a flagger in a work
51.2zone may proceed after stopping only on instruction by the flagger or a police officer.
51.3(b) A person convicted of operating a motor vehicle in violation of a speed limit
51.4in a work zone, or any other provision of this section while in a work zone, shall be
51.5required to pay a fine of $300. This fine is in addition to the surcharge under section
51.6357.021, subdivision 6.
51.7(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the
51.8vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty
51.9misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may
51.10not be fined under this paragraph if (1) another person is convicted for that violation, or (2)
51.11the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a
51.12lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.
51.13(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle
51.14operator for violating paragraph (a).
51.15(e) A violation under paragraph (c) does not constitute grounds for revocation or
51.16suspension of a driver's license.
51.17EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
51.18violations committed on or after that date.

51.19    Sec. 7. Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:
51.20    Subd. 5d. Speed zoning limit in work zone; surcharge when workers present.
51.21(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a
51.22road having an established speed limit of 50 miles per hour or greater is adjusted to 45
51.23miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is
51.24closed in either direction, and (2) workers are present. A speed in excess of the adjusted
51.25speed limit is unlawful.
51.26(b) Paragraph (a) does not apply to a segment of road in which:
51.27(1) positive barriers are placed between workers and the traveled portion of the
51.28highway;
51.29(2) the work zone is in place for less than 24 hours;
51.30(3) a different speed limit for the work zone is determined by the road authority
51.31following an engineering and traffic investigation and based on accepted engineering
51.32practice; or
51.33(4) a different speed limit for the work zone is established by the road authority
51.34under paragraph (c).
52.1(c) The commissioner, on trunk highways and temporary trunk highways, and
52.2local authorities, on streets and highways under their jurisdiction, may authorize the use
52.3of reduced maximum speed limits in highway work zones. The commissioner or local
52.4authority is not required to conduct when workers are present, without an engineering and
52.5traffic investigation before authorizing a reduced speed limit in a highway work zone
52.6 required. The work zone speed limit must not reduce the speed limit on the affected
52.7street or highway by more than:
52.8(b) The minimum highway work zone speed limit is 20 miles per hour. The work
52.9zone speed limit must not reduce the established speed limit on the affected street or
52.10highway by more than 15 miles per hour, except that the highway work zone speed limit
52.11must not exceed 40 miles per hour. The commissioner or local authority shall post the limits
52.12of the work zone. Highway work zone speed limits are effective on erection of appropriate
52.13regulatory speed limit signs. The signs must be removed or covered when they are not
52.14required. A speed greater than the posted highway work zone speed limit is unlawful.
52.15(c) Notwithstanding paragraph (b), on divided highways the commissioner or local
52.16authority may establish a highway work zone speed limit that does not exceed 55 miles
52.17per hour.
52.18(d) Notwithstanding paragraph (b), on two-lane highways having one lane for
52.19each direction of travel with a posted speed limit of 60 miles per hour or greater, the
52.20commissioner or local authority may establish a highway work zone speed limit that
52.21does not exceed 40 miles per hour.
52.22(e) For purposes of this subdivision, "highway work zone" means a segment of
52.23highway or street where a road authority or its agent is constructing, reconstructing, or
52.24maintaining the physical structure of the roadway, its shoulders, or features adjacent to
52.25the roadway, including underground and overhead utilities and highway appurtenances,
52.26when workers are present.
52.27(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person
52.28who violates a speed limit established under this subdivision, or who violates any other
52.29provision of this section while in a highway work zone, is assessed an additional surcharge
52.30equal to the amount of the fine imposed for the speed violation, but not less than $25.
52.31(1) 20 miles per hour on a street or highway having an established speed limit of
52.3255 miles per hour or greater; and
52.33(2) 15 miles per hour on a street or highway having an established speed limit of
52.3450 miles per hour or less.
53.1(d) A work zone speed limit under paragraph (c) is effective on erection of
53.2appropriate regulatory speed limit signs. The signs must be removed or covered when
53.3they are not required. A speed in excess of the posted work zone speed limit is unlawful.
53.4(e) For any speed limit under this subdivision, a road authority shall erect signs
53.5identifying the speed limit and indicating the beginning and end of the speed limit zone.
53.6EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
53.7violations committed on or after that date.

53.8    Sec. 8. Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision
53.9to read:
53.10    Subd. 6a. Work zone speed limit violations. A person convicted of operating a
53.11motor vehicle in violation of a speed limit in a work zone, or any other provision of
53.12this section while in a work zone, shall be required to pay a fine of $300. This fine is in
53.13addition to the surcharge under section 357.021, subdivision 6.
53.14EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
53.15violations committed on or after that date.

53.16    Sec. 9. Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:
53.17    Subdivision 1. Entrance and exit; crossover; use regulations; signs; rules. (a) No
53.18person shall drive a vehicle onto or from any controlled-access highway except at such
53.19entrances and exits as are established by public authority.
53.20(b) When special crossovers between the main roadways of a controlled-access
53.21highway are provided for emergency vehicles or maintenance equipment and such
53.22crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except
53.23an emergency vehicle, maintenance equipment, or construction equipment including
53.24contractor's and state-owned equipment when operating within a marked construction
53.25zone, or a vehicle operated by a commercial vehicle inspector of the Department of
53.26Public Safety or certified under section 169.781, to use such crossover. Vehicles owned
53.27and operated by elderly and needy persons under contract with the commissioner of
53.28transportation pursuant to section 160.282 for maintenance services on highway rest
53.29stop and tourist centers outside the seven-county metropolitan area as defined in section
53.30473.121 , may also use these crossovers while those persons are proceeding to or from
53.31work in the rest area or tourist center if authorized by the commissioner, and the vehicle
53.32carries on its roof a distinctive flag designed and issued by the commissioner. For the
54.1purposes of this clause "emergency vehicle" includes a tow truck or towing vehicle if it is
54.2on the way to the location of an accident or a disabled vehicle.
54.3(c) The commissioner of transportation may by order, and any public authority may
54.4by ordinance, with respect to any controlled-access highway under their jurisdictions
54.5prohibit or regulate the use of any such highway by pedestrians, bicycles, or other
54.6nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is
54.7found to be incompatible with the normal and safe flow of traffic.
54.8(d) The commissioner of transportation or the public authority adopting any such
54.9prohibitory rules shall erect and maintain official signs on the controlled-access highway
54.10on which such rules are applicable and when so erected no person shall disobey the
54.11restrictions stated on such signs.

54.12    Sec. 10. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision
54.13to read:
54.14    Subd. 7. Expiration date. Upon request of the permit applicant the expiration
54.15date for a permit issued under this section must be the same as the expiration date of the
54.16permitted vehicle's registration.
54.17EFFECTIVE DATE.This section is effective November 30, 2016, and applies
54.18to permits issued on and after that date.

54.19    Sec. 11. Minnesota Statutes 2012, section 169.8261, is amended by adding a
54.20subdivision to read:
54.21    Subd. 3. Expiration date. Upon request of the permit applicant the expiration
54.22date for a permit issued under this section must be the same as the expiration date of the
54.23permitted vehicle's registration.
54.24EFFECTIVE DATE.This section is effective November 30, 2016, and applies
54.25to permits issued on and after that date.

54.26    Sec. 12. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
54.27    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
54.28respect to highways under the commissioner's jurisdiction, may charge a fee for each
54.29permit issued. The fee for an annual permit that expires by law on the date of the
54.30vehicle registration expiration must be based on the proportion of the year that remains
54.31until the expiration date. Unless otherwise specified, all fees for permits issued by the
54.32commissioner of transportation must be deposited in the state treasury and credited to
55.1the trunk highway fund. Except for those annual permits for which the permit fees are
55.2specified elsewhere in this chapter, the fees are:
55.3    (a) $15 for each single trip permit.
55.4    (b) $36 for each job permit. A job permit may be issued for like loads carried on
55.5a specific route for a period not to exceed two months. "Like loads" means loads of the
55.6same product, weight, and dimension.
55.7    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
55.8months. Annual permits may be issued for:
55.9    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
55.10or well-being of the public;
55.11    (2) motor vehicles that travel on interstate highways and carry loads authorized
55.12under subdivision 1a;
55.13    (3) motor vehicles operating with gross weights authorized under section 169.826,
55.14subdivision 1a
;
55.15    (4) special pulpwood vehicles described in section 169.863;
55.16    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
55.17    (6) noncommercial transportation of a boat by the owner or user of the boat;
55.18    (7) motor vehicles carrying bales of agricultural products authorized under section
55.19169.862 ; and
55.20(8) special milk-hauling vehicles authorized under section 169.867.
55.21    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
55.22consecutive months. Annual permits may be issued for:
55.23    (1) mobile cranes;
55.24    (2) construction equipment, machinery, and supplies;
55.25    (3) manufactured homes and manufactured storage buildings;
55.26    (4) implements of husbandry;
55.27    (5) double-deck buses;
55.28    (6) commercial boat hauling and transporting waterfront structures, including, but
55.29not limited to, portable boat docks and boat lifts;
55.30    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
55.31for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
55.32the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
55.33only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
55.34paragraph (c); and
55.35(8) vehicles operating on that portion of marked Trunk Highway 36 described in
55.36section 169.81, subdivision 3, paragraph (e).
56.1    (e) For vehicles that have axle weights exceeding the weight limitations of sections
56.2169.823 to 169.829, an additional cost added to the fees listed above. However, this
56.3paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph
56.4(b), but only when the vehicle exceeds its gross weight allowance set forth in that
56.5paragraph, and then the additional cost is for all weight, including the allowance weight,
56.6in excess of the permitted maximum axle weight. The additional cost is equal to the
56.7product of the distance traveled times the sum of the overweight axle group cost factors
56.8shown in the following chart:
56.9
Overweight Axle Group Cost Factors
56.10
Weight (pounds)
Cost Per Mile For Each Group Of:
56.11
56.12
56.13
56.14
56.15
exceeding weight
limitations on axles
Two
consecutive
axles spaced
within 8 feet
or less
Three
consecutive
axles spaced
within 9 feet
or less
Four consecutive
axles spaced within
14 feet or less
56.16
0-2,000
.12
.05
.04
56.17
2,001-4,000
.14
.06
.05
56.18
4,001-6,000
.18
.07
.06
56.19
6,001-8,000
.21
.09
.07
56.20
8,001-10,000
.26
.10
.08
56.21
10,001-12,000
.30
.12
.09
56.22
56.23
12,001-14,000
Not
permitted
.14
.11
56.24
56.25
14,001-16,000
Not
permitted
.17
.12
56.26
56.27
16,001-18,000
Not
permitted
.19
.15
56.28
56.29
18,001-20,000
Not
permitted
Not
permitted
.16
56.30
56.31
20,001-22,000
Not
permitted
Not
permitted
.20
56.32The amounts added are rounded to the nearest cent for each axle or axle group. The
56.33additional cost does not apply to paragraph (c), clauses (1) and (3).
56.34For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
56.35fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
56.36in addition to the normal permit fee. Miles must be calculated based on the distance
56.37already traveled in the state plus the distance from the point of detection to a transportation
56.38loading site or unloading site within the state or to the point of exit from the state.
56.39    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
56.40or oversize and overweight, mobile cranes; construction equipment, machinery, and
57.1supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
57.2are as follows:
57.3
Gross Weight (pounds) of Vehicle
Annual Permit Fee
57.4
90,000
or less
$200
57.5
90,001
- 100,000
$300
57.6
100,001
- 110,000
$400
57.7
110,001
- 120,000
$500
57.8
120,001
- 130,000
$600
57.9
130,001
- 140,000
$700
57.10
140,001
- 145,000
$800
57.11
145,001
- 155,000
$900
57.12If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
57.13under paragraph (e).
57.14    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
57.15more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
57.16when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
57.17in effect.
57.18    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
57.19refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
57.20a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
57.21subdivision 2
, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
57.22on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
57.23    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
57.24paragraph must be deposited as follows:
57.25    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
57.26costs related to administering the permit program and inspecting and posting bridges; and
57.27    (2) all remaining money in each fiscal year must be deposited in the bridge
57.28inspection and signing account as provided under subdivision 5b.
57.29    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
57.30under authority of section 169.824, subdivision 2, paragraph (a), clause (2).
57.31EFFECTIVE DATE.This section is effective November 30, 2016, and applies
57.32to permits issued on and after that date.

57.33    Sec. 13. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision
57.34to read:
57.35    Subd. 3. Expiration date. Upon request of the permit applicant the expiration
57.36date for a permit issued under this section must be the same as the expiration date of the
57.37permitted vehicle's registration.
58.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies
58.2to permits issued on and after that date.

58.3    Sec. 14. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
58.4    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit
58.5authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw
58.6or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
58.7    (1) 90,000 pounds; and
58.8    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
58.9subdivision 1
.
58.10    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
58.11combination of vehicles operated under this subdivision and transporting only sealed
58.12intermodal containers may be operated on an interstate highway if allowed by the United
58.13States Department of Transportation.
58.14    (c) The fee for a permit issued under this subdivision is $300, or a proportional
58.15amount as provided in section 169.86, subdivision 5.
58.16EFFECTIVE DATE.This section is effective November 30, 2016, and applies
58.17to permits issued on and after that date.

58.18    Sec. 15. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
58.19    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit
58.20authorizing a vehicle or combination of vehicles with a total of seven or more axles to
58.21haul raw or unprocessed agricultural products and be operated with a gross vehicle weight
58.22of up to:
58.23    (1) 97,000 pounds; and
58.24    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
58.25subdivision 1
.
58.26    (b) Drivers of vehicles operating under this subdivision must comply with driver
58.27qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
58.28of Federal Regulations, title 49, parts 40 and 382.
58.29    (c) The fee for a permit issued under this subdivision is $500, or a proportional
58.30amount as provided in section 169.86, subdivision 5.
58.31EFFECTIVE DATE.This section is effective November 30, 2016, and applies
58.32to permits issued on and after that date.

59.1    Sec. 16. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision
59.2to read:
59.3    Subd. 5. Expiration date. Upon request of the permit applicant the expiration
59.4date for a permit issued under this section must be the same as the expiration date of the
59.5permitted vehicle's registration.
59.6EFFECTIVE DATE.This section is effective November 30, 2016, and applies
59.7to permits issued on and after that date.

59.8    Sec. 17. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
59.9    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1
59.10must be annual permits. The fee is $850 for each vehicle, or a proportional amount as
59.11provided in section 169.86, subdivision 5, and must be deposited in the trunk highway
59.12fund. An amount sufficient to administer the permit program is appropriated from the
59.13trunk highway fund to the commissioner for the costs of administering the permit program.
59.14EFFECTIVE DATE.This section is effective November 30, 2016, and applies
59.15to permits issued on and after that date.

59.16    Sec. 18. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision
59.17to read:
59.18    Subd. 4. Expiration date. Upon request of the permit applicant the expiration
59.19date for a permit issued under this section must be the same as the expiration date of the
59.20permitted vehicle's registration.
59.21EFFECTIVE DATE.This section is effective November 30, 2016, and applies
59.22to permits issued on and after that date.

59.23    Sec. 19. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:
59.24    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any
59.25public roadway by any person who does not possess a valid driver's license, unless the
59.26person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
59.27permit from the commissioner of public safety. The operator's permit may be issued to
59.28any person who has attained the age of 15 years and who has passed the examination
59.29prescribed by the commissioner. The instruction permit may be issued to any person who
59.30has attained the age of 15 years and who has successfully completed an approved safety
59.31course and passed the written portion of the examination prescribed by the commissioner.
59.32    (b) This course must consist of, but is not limited to, a basic understanding of:
60.1    (1) motorized bicycles and their limitations;
60.2    (2) motorized bicycle laws and rules;
60.3    (3) safe operating practices and basic operating techniques;
60.4    (4) helmets and protective clothing;
60.5    (5) motorized bicycle traffic strategies; and
60.6    (6) effects of alcohol and drugs on motorized bicycle operators.
60.7    (c) The commissioner may adopt rules prescribing the content of the safety course,
60.8examination, and the information to be contained on the permits. A person operating a
60.9motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
60.10by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
60.11instruction permit.
60.12    (d) The fees for motorized bicycle operator's permits are as follows:
60.13
(1)
Examination and operator's permit, valid for one year
$
6.75
60.14
(2)
Duplicate
$
3.75
60.15
60.16
(3) (1)
Renewal Motorized bicycle operator's permit before age 21 and
valid until age 21
$
9.75
60.17
(4) (2)
Renewal permit age 21 or older and valid for four years
$
15.75
60.18
(5) (3)
Duplicate of any renewal permit
$
5.25
60.19
(6) (4)
Written examination and instruction permit, valid for 30 days
$
6.75

60.20    Sec. 20. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:
60.21    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
60.22as follows:
60.23
Classified Driver's License
D-$17.25
C-$21.25
B-$28.25
A-$36.25
60.24
Classified Under-21 D.L.
D-$17.25
C-$21.25
B-$28.25
A-$16.25
60.25
Enhanced Driver's License
D-$32.25
C-$36.25
B-$43.25
A-$51.25
60.26
Instruction Permit
$5.25
60.27
60.28
Enhanced Instruction
Permit
$20.25
60.29
60.30
Commercial Learner's
Permit
$2.50
60.31
Provisional License
$8.25
60.32
60.33
Enhanced Provisional
License
$23.25
60.34
60.35
60.36
Duplicate License or
duplicate identification
card
$6.75
60.37
60.38
60.39
60.40
Enhanced Duplicate
License or enhanced
duplicate identification
card
$21.75
61.1
61.2
61.3
61.4
61.5
61.6
61.7
Minnesota identification
card or Under-21
Minnesota identification
card, other than duplicate,
except as otherwise
provided in section 171.07,
subdivisions 3
and 3a
$11.25
61.8
61.9
Enhanced Minnesota
identification card
$26.25
61.10In addition to each fee required in this paragraph, the commissioner shall collect a
61.11surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
61.122016. Surcharges collected under this paragraph must be credited to the driver and vehicle
61.13services technology account in the special revenue fund under section 299A.705.
61.14    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
61.15has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
61.16169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
61.17violations, and (3) convictions for moving violations that are not crash related, shall have a
61.18$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
61.19has the meaning given it in section 171.04, subdivision 1.
61.20    (c) In addition to the driver's license fee required under paragraph (a), the
61.21commissioner shall collect an additional $4 processing fee from each new applicant
61.22or individual renewing a license with a school bus endorsement to cover the costs for
61.23processing an applicant's initial and biennial physical examination certificate. The
61.24department shall not charge these applicants any other fee to receive or renew the
61.25endorsement.
61.26(d) In addition to the fee required under paragraph (a), a driver's license agent may
61.27charge and retain a filing fee as provided under section 171.061, subdivision 4.
61.28(e) In addition to the fee required under paragraph (a), the commissioner shall
61.29charge a filing fee at the same amount as a driver's license agent under section 171.061,
61.30subdivision 4. Revenue collected under this paragraph must be deposited in the driver
61.31services operating account.
61.32(f) An application for a Minnesota identification card, instruction permit, provisional
61.33license, or driver's license, including an application for renewal, must contain a provision
61.34that allows the applicant to add to the fee under paragraph (a), a $2 donation for the
61.35purposes of public information and education on anatomical gifts under section 171.075.

61.36    Sec. 21. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL
61.37CONFORMITY.
62.1    Subdivision 1. Conformity with federal law. The commissioner of public safety
62.2shall ensure the programs and policies related to commercial drivers' licensure and the
62.3operation of commercial motor vehicles in Minnesota conform with the requirements of
62.4Code of Federal Regulations, title 49, part 383.
62.5    Subd. 2. Conflicts. To the extent a requirement of sections 171.162 to 171.169, or
62.6any other state or local law, conflicts with a provision of Code of Federal Regulations, title
62.749, part 383, the federal provision prevails.

62.8    Sec. 22. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision
62.9to read:
62.10    Subd. 10. Products and services; billing. The commissioner of transportation may
62.11bill operations units of the department for costs of centrally managed products or services
62.12that benefit multiple operations units. These costs may include equipment acquisition and
62.13rental, labor, materials, and other costs determined by the commissioner. Receipts must be
62.14credited to the special products and services account, which is established in the trunk
62.15highway fund, and are appropriated to the commissioner to pay the costs for which the
62.16billings are made.

62.17    Sec. 23. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is
62.18amended to read:
62.19    Subd. 2. Transportation economic development accounts. (a) A transportation
62.20economic development account is established in the special revenue fund under the
62.21budgetary jurisdiction of the legislative committees having jurisdiction over transportation
62.22finance. Money in the account may be expended only as appropriated by law. The account
62.23may not contain money transferred or otherwise provided from the trunk highway fund.
62.24(b) A transportation economic development account is established in the trunk
62.25highway fund. The account consists of funds donated, allotted, transferred, or otherwise
62.26provided to the account. Money in the account may be used only for trunk highway
62.27purposes. All funds in the account available prior to August 1, 2013, are available until
62.28expended.

62.29    Sec. 24. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is
62.30amended to read:
62.31    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner
62.32shall obtain a total amount in federal authorizations for reimbursement on transportation
62.33alternatives projects that is equal to or greater than the annual average of federal
63.1authorizations on transportation alternatives projects calculated over the preceding four
63.2 federal fiscal years 2010 to 2012.
63.3EFFECTIVE DATE.This section is effective the day following final enactment and
63.4applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

63.5    Sec. 25. Minnesota Statutes 2012, section 174.56, subdivision 1, is amended to read:
63.6    Subdivision 1. Report required. (a) The commissioner of transportation shall
63.7submit a report by December 15 of each year on (1) the status of major highway projects
63.8completed during the previous two years or under construction or planned during the year
63.9of the report and for the ensuing 15 years, and (2) trunk highway fund expenditures,
63.10and (3) beginning with the report due in 2016, efficiencies achieved during the previous
63.11two fiscal years.
63.12(b) For purposes of this section, a "major highway project" is a highway project that
63.13has a total cost for all segments that the commissioner estimates at the time of the report
63.14to be at least (1) $15,000,000 in the metropolitan highway construction district, or (2)
63.15$5,000,000 in any nonmetropolitan highway construction district.

63.16    Sec. 26. [219.375] RAILROAD YARD LIGHTING.
63.17    Subdivision 1. General requirements. (a) All railroad common carriers, and their
63.18officers, agents, and employees, operating a railroad in this state are required to maintain
63.19lighting between sunset and sunrise above switches in railroad yards where from one
63.20half-hour before sunset to one half-hour after sunrise:
63.21(1) cars or locomotives are switched or inspected; or
63.22(2) cars are switched to assemble or disassemble trains.
63.23Railroad common carriers shall provide lighting immediately adjacent to those portions
63.24of railroad yard tracks where railroad common carrier employees frequently work on
63.25the ground performing switching, inspection, and repair activities. For purposes of this
63.26section, "frequently work" means at least five days per week.
63.27(b) Railroad yard lighting over switches and inspection areas must:
63.28(1) conform with the guidelines set forth by the American Railway Engineering
63.29and Manufacturing Association (AREMA);
63.30(2) be displayed only at times when activities related to switching, inspection,
63.31assembly, and disassembly of trains are taking place;
63.32(3) be turned off when not needed;
63.33(4) include at least one lighting source for each two-yard track switch segment; and
64.1(5) be displayed from a height of at least 30 feet above the railroad yard lead-track
64.2area.
64.3(c) Lighting over switches and other light sources within railroad yards or at other
64.4railroad locations must be:
64.5(1) maintained to illuminate as designed by the railroad or licensed contractor;
64.6(2) compliant with the Minnesota Electrical Code;
64.7(3) kept clear of obstructions; and
64.8(4) focused on the railroad common carrier property designed to be illuminated.
64.9(d) The energy source for lighting is permitted, though not required, to:
64.10(1) be direct wired from a carrier facility power source, have solar panel power with
64.11a battery storage source, or have another constant energy source; or
64.12(2) be designed to have standard or light-emitting diode fixtures or electrical circuits
64.13that include power saving or ambient atmosphere actuating switches.
64.14(e) Railroad common carriers must replace damaged or nonoperative lighting within
64.1548 hours after light source damage has been reported to the carrier.
64.16    Subd. 2. Allowances for unusual conditions. Railroad common carriers are not
64.17required to comply with the requirements of this section during:
64.18(1) maintenance activities;
64.19(2) derailments;
64.20(3) any period of heavy rain or snow, washouts, or similar weather or seismic
64.21conditions; or
64.22(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no
64.23longer than is necessary to achieve compliance with this section.
64.24    Subd. 3. Lighting orders; commissioner authority. (a) When the commissioner
64.25finds that railroad common carrier employees who frequently work immediately adjacent
64.26to a portion of track performing switching, inspection, maintenance, repair, or fueling
64.27activities are exposed to hazard resulting from the lack of lighting, or to the condition of
64.28lighting constructed before July 1, 2014, the commissioner may order a railroad common
64.29carrier to construct lighting adjacent to a portion of track where employees are performing
64.30switching, inspection, maintenance, repair or fueling activities, or require a railroad
64.31common carrier to modify existing lighting to conform with the standards set forth by
64.32AREMA lighting standards, within a reasonable period of time.
64.33(b) A railroad common carrier, person, or corporation may appeal an order under this
64.34subdivision. An appeal under this paragraph is subject to the processes and requirements
64.35of chapter 14.
65.1    Subd. 4. Failure to correct. If a railroad common carrier, person, or corporation
65.2fails to correct a violation of this section within the time provided in an order issued by
65.3the commissioner of transportation under subdivision 3, and the railroad common carrier,
65.4person, or corporation does not appeal the order, the failure to correct the violation as
65.5ordered by the commissioner constitutes a new and separate offense distinct from the
65.6original violation of this section.
65.7    Subd. 5. Complaints. No formal complaint of an alleged violation of this section
65.8may be filed until the filing party has attempted to address the alleged violations with the
65.9railroad common carrier. Any complaint of an alleged violation must contain a written
65.10statement that the filing party has made a reasonable, good faith attempt to address the
65.11alleged violation.
65.12    Subd. 6. Waiver. Upon written request of a railroad common carrier, the
65.13commissioner of transportation may waive any portion of this section if conditions do not
65.14reasonably permit compliance. The commissioner's decision is subject to the requirements
65.15under section 218.041 and shall include an on-site inspection of the area for which the
65.16waiver has been requested. The inspection shall occur between sunset and sunrise, and all
65.17parties of interest shall be permitted to attend.
65.18    Subd. 7. Violations and penalties. A railroad common carrier, corporation, or
65.19person who violates this section is liable to a penalty not to exceed $500 for each violation.
65.20    Subd. 8. Exceptions; applicability. (a) This section establishes minimum standards
65.21for railroad yard lighting. Nothing in this section shall be construed to preclude design of
65.22railroad yard towers with multiple lighting sources, a brighter lighting design, or other
65.23features that exceed the requirements of this section.
65.24(b) This section applies to all Class One and Class Two railroad common carrier
65.25railroad yards. This section does not apply to an entity that owns or operates track in
65.26Minnesota that is not a Class One or Class Two railroad common carrier as classified
65.27by the Federal Railroad Administration.
65.28(c) Railroad yards and other locations where lighting exists on July 1, 2014, are
65.29compliant with subdivision 1, paragraphs (b) and (c).
65.30EFFECTIVE DATE.This section is effective November 1, 2016.

65.31    Sec. 27. [299A.017] STATE SAFETY OVERSIGHT.
65.32    Subdivision 1. Office created. The commissioner of public safety shall establish an
65.33Office of State Safety Oversight in the Department of Public Safety for safety oversight of
65.34rail fixed guideway public transportation systems within the state. The commissioner shall
65.35designate a director of the office.
66.1    Subd. 2. Authority. The director shall implement and has regulatory authority to
66.2enforce the requirements for the state set forth in United States Code, title 49, sections
66.35329 and 5330, federal regulations adopted pursuant to those sections, and successor or
66.4supplemental requirements.

66.5    Sec. 28. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:
66.6    Subdivision 1. Authorized programs within department. From the revenues
66.7appropriated from the fire safety account, established under section 297I.06, subdivision
66.83, the commissioner of public safety may expend funds for the activities and programs
66.9identified by the advisory committee established under subdivision 2 and recommended
66.10to the commissioner of public safety. The commissioner shall not expend funds without
66.11the recommendation of the advisory committee established under subdivision 2. The
66.12commissioner shall not expend funds without the recommendation of the advisory
66.13committee established under subdivision 2. These funds are to be used to provide
66.14resources needed for identified activities and programs of the Minnesota fire service and to
66.15ensure the State Fire Marshal Division responsibilities are fulfilled.

66.16    Sec. 29. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
66.17    Subd. 2. Fire Service Advisory Committee. (a) The Fire Service Advisory
66.18Committee shall provide recommendations to the commissioner of public safety on
66.19fire service-related issues and shall consist of representatives of each of the following
66.20organizations: two appointed by the president of the Minnesota State Fire Chiefs
66.21Association, two appointed by the president of the Minnesota State Fire Department
66.22Association, two appointed by the president of the Minnesota Professional Fire Fighters,
66.23two appointed by the president of the League of Minnesota Cities, one appointed by the
66.24president of the Minnesota Association of Townships, one appointed by the president
66.25of the Insurance Federation of Minnesota, one appointed jointly by the presidents of
66.26the Minnesota Chapter of the International Association of Arson Investigators and the
66.27Fire Marshals Association of Minnesota, and the commissioner of public safety or the
66.28commissioner's designee. The commissioner of public safety must ensure that at least
66.29three of the members of the advisory committee work and reside in counties outside of the
66.30seven-county metropolitan area. The committee shall provide funding recommendations
66.31to the commissioner of public safety from the fire safety fund for the following purposes:
66.32(1) for the Minnesota Board of Firefighter Training and Education;
66.33(2) for programs and staffing for the State Fire Marshal Division; and
67.1(3) for fire-related regional response team programs and any other fire service
67.2programs that have the potential for statewide impact.
67.3    (b) The committee under paragraph (a) does not expire.

67.4    Sec. 30. [473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.
67.5    Subdivision 1. Adoption of standards. (a) By January 1, 2015, the Metropolitan
67.6Council shall adopt and may thereafter amend standards for the design of light rail
67.7vehicles that are reasonably necessary to provide access for, and to protect the health and
67.8safety of, persons who use the service. All light rail transit vehicles procured on and after
67.9January 1, 2015, must conform to the standards then in effect.
67.10(b) The Transportation Accessibility Advisory Committee must review the standards
67.11and all subsequent amendments before the Metropolitan Council adopts them.
67.12(c) The Metropolitan Council shall post adopted standards, including amendments,
67.13on its Web site.
67.14    Subd. 2. Minimum standards. Standards adopted under this section must include,
67.15but are not limited to:
67.16(1) two dedicated spaces for wheelchair users in each car;
67.17(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and
67.18(3) further specifications that meet or exceed the standards established in the
67.19Americans with Disabilities Act.

67.20    Sec. 31. HIGHWAY 14 TURNBACK.
67.21Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or
67.22any other law to the contrary, the commissioner of transportation may:
67.23(1) by temporary order, take over the road described as "Old Highway 14" in the
67.24settlement agreement and release executed January 7, 2014, between the state and Waseca
67.25and Steele Counties;
67.26(2) expend $35,000,000 or the amount necessary to complete the work required
67.27under the settlement agreement; and
67.28(3) upon completion of the work described in the settlement agreement, release "Old
67.29Highway 14" back to Steele and Waseca Counties.
67.30Upon completion of the work described in the settlement agreement between the
67.31state and Waseca and Steele Counties, the counties shall accept responsibility for the road
67.32described in the agreement as "Old Highway 14."

67.33    Sec. 32. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.
68.1    Subdivision 1. Engineering and traffic investigations. The commissioner of
68.2transportation shall perform engineering and traffic investigations on trunk highway
68.3segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per
68.4hour. On determining upon the basis of the investigation that the 55 miles per hour speed
68.5limit can be reasonably and safely increased under the conditions found to exist on any
68.6of the trunk highway segments examined, the commissioner may designate an increased
68.7limit applicable to those segments and erect appropriate signs designating the speed limit.
68.8The new speed limit shall be effective when the signs are erected. Of all the roadways
68.9to be studied under this section, approximately one-fifth must be subject to investigation
68.10each year until the statewide study is complete in 2019.
68.11    Subd. 2. Report. By January 15 annually, the commissioner shall provide to
68.12the chairs and ranking minority members of the senate and house of representatives
68.13committees with jurisdiction over transportation policy and finance a list of trunk
68.14highways or segments of trunk highways that were subject to an engineering and safety
68.15investigation in the previous calendar year, specifying in each case the applicable speed
68.16limits before and after the investigation.
68.17EFFECTIVE DATE.This section is effective the day following final enactment
68.18and expires on the earlier of January 15, 2019, or the date the final report is submitted to
68.19the legislative committees under this section.

68.20    Sec. 33. TRANSPORTATION EFFICIENCIES.
68.21The commissioner of transportation shall include in the report under Minnesota
68.22Statutes, section 174.56, due by December 15, 2015, information on efficiencies
68.23implemented in fiscal year 2015 in planning and project management and delivery,
68.24along with an explanation of the efficiencies employed to achieve the savings and the
68.25methodology used in the calculations. The level of savings achieved must equal, in
68.26comparison with the total state road construction budget for that year, a minimum of five
68.27percent in fiscal year 2015. The report must identify the projects that have been advanced
68.28or completed due to the implementation of efficiency measures.

68.29    Sec. 34. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE
68.30VERIFICATION.
68.31    Subdivision 1. Establishment. The task force on motor vehicle insurance coverage
68.32verification is established to review and evaluate approaches to insurance coverage
68.33verification and recommend legislation to create and fund a program in this state.
69.1    Subd. 2. Membership; meetings; staff. (a) The task force shall be composed of
69.213 members, who must be appointed by July 1, 2014, and who serve at the pleasure of
69.3their appointing authorities:
69.4(1) the commissioner of public safety or a designee;
69.5(2) the commissioner of commerce or a designee;
69.6(3) two members of the house of representatives, one appointed by the speaker of the
69.7house and one appointed by the minority leader;
69.8(4) two members of the senate, one appointed by the Subcommittee on Committees
69.9of the Committee on Rules and Administration and one appointed by the minority leader;
69.10(5) a representative of Minnesota Deputy Registrars Association;
69.11(6) a representative of AAA Minnesota;
69.12(7) a representative of AARP Minnesota;
69.13(8) a representative of the Insurance Federation of Minnesota;
69.14(9) a representative of the Minnesota Bankers Association;
69.15(10) a representative of the Minnesota Bar Association; and
69.16(11) a representative of the Minnesota Police and Peace Officers Association.
69.17(b) Compensation and expense reimbursement must be as provided under Minnesota
69.18Statutes, section 15.059, subdivision 3, to members of the task force.
69.19(c) The commissioner of public safety shall convene the task force by August
69.201, 2014, and shall appoint a chair from the membership of the task force. Staffing and
69.21technical assistance must be provided by the Department of Public Safety.
69.22    Subd. 3. Duties. The task force shall review and evaluate programs established in
69.23other states as well as programs proposed by third parties, identify one or more programs
69.24recommended for implementation in this state, and, as to the recommended programs,
69.25adopt findings concerning:
69.26(1) comparative costs of programs;
69.27(2) implementation considerations, and in particular, identifying the appropriate
69.28supervising agency and assessing compatibility with existing and planned computer
69.29systems;
69.30(3) effectiveness in verifying existence of motor vehicle insurance coverage;
69.31(4) identification of categories of authorized users;
69.32(5) simplicity of access and use for authorized users;
69.33(6) data privacy considerations;
69.34(7) data retention policies; and
69.35(8) statutory changes necessary for implementation.
70.1    Subd. 4. Report. By February 1, 2015, the task force must submit to the
70.2chairs and ranking minority members of the house of representatives and senate
70.3committees and divisions with primary jurisdiction over commerce and transportation its
70.4written recommendations, including any draft legislation necessary to implement the
70.5recommendations.
70.6    Subd. 5. Sunset. The task force shall sunset the day after submitting the report
70.7under subdivision 4, or February 2, 2015, whichever is earlier.
70.8EFFECTIVE DATE.This section is effective the day following final enactment.

70.9    Sec. 35. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
70.10    Subdivision 1. Definition. (a) For purposes of this section, the following terms
70.11have the meanings given.
70.12(b) "City" means the city of Two Harbors.
70.13(c) "General retail services" means a business that sells goods or services at retail
70.14and directly to an end-use consumer. General retail services includes but is not limited to:
70.15(1) personal services;
70.16(2) repair services;
70.17(3) hardware stores;
70.18(4) lumber or building supply stores; and
70.19(5) automotive parts sellers.
70.20    Subd. 2. Pilot program established. In consultation with the city of Two Harbors,
70.21the commissioner of transportation shall establish a community destination sign pilot
70.22program for wayfinding within the city to destinations or attractions of interest to the
70.23traveling public.
70.24For purposes of Minnesota Statutes, chapter 173, signs under the pilot program are
70.25official signs.
70.26    Subd. 3. Signage, design. (a) The pilot program must include as eligible attractions
70.27and destinations:
70.28(1) minor traffic generators; and
70.29(2) general retail services, specified by business name, that are identified in a
70.30community wayfinding program established by the city.
70.31(b) The commissioner of transportation, in coordination with the city, may establish
70.32sign design specifications for signs under the pilot program. Design specifications must
70.33allow for placement of:
70.34(1) a city name and city logo or symbol; and
70.35(2) up to five attractions or destinations on a community destination sign assembly.
71.1    Subd. 4. Program costs. The city shall pay costs of design, construction,
71.2erection, and maintenance of the signs and sign assemblies under the pilot program. The
71.3commissioner shall not impose fees for the pilot program.
71.4    Subd. 5. Expiration. The pilot program under this section expires on January
71.51, 2022.
71.6EFFECTIVE DATE.This section is effective the day after the governing body of
71.7the city of Two Harbors and its chief clerical officer timely complete their compliance
71.8with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

71.9ARTICLE 5
71.10CRIMINAL JUSTICE

71.11
Section 1. SUMMARY OF APPROPRIATIONS.
71.12The amounts shown in this section summarize direct appropriations, by fund, made
71.13in this article.
71.14
2014
2015
Total
71.15
General
$
-0-
$
30,787,000
$
30,787,000
71.16
Total
$
-0-
$
30,787,000
$
30,787,000

71.17
Sec. 2. APPROPRIATIONS.
71.18The sums shown in the columns marked "Appropriations" are added to the
71.19appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
71.20specified in this article. The appropriations are from the general fund, or another named
71.21fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
71.22and "2015" used in this article mean that the addition to the appropriation listed under
71.23them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
71.24Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
71.25day following final enactment.
71.26
APPROPRIATIONS
71.27
Available for the Year
71.28
Ending June 30
71.29
2014
2015

71.30
Sec. 3. CORRECTIONS
71.31
Subdivision 1.Total Appropriation
$
-0-
$
30,089,000
72.1The amounts that may be spent for each
72.2purpose are specified in the following
72.3subdivisions.
72.4This includes a onetime appropriation of
72.5$11,089,000.
72.6
Subd. 2.Correctional Institutions
-0-
27,289,000
72.7The commissioner shall investigate using
72.8private correctional facilities to house
72.9inmates in excess of the capacity of state
72.10correctional facilities. This investigation
72.11must consider the per diem costs of housing
72.12offenders at private facilities compared to
72.13publicly operated facilities, including all
72.14capital costs and other costs. By January 15,
72.152015, the commissioner shall report on the
72.16results of the investigation to the chairs and
72.17ranking minority members of the senate and
72.18house of representatives committees having
72.19jurisdiction over criminal justice policy and
72.20finance.
72.21
Subd. 3.Community Services
-0-
1,900,000
72.22
Subd. 4.Operations Support
-0-
900,000

72.23
Sec. 4. PUBLIC SAFETY
$
-0-
$
600,000
72.24Expungement
72.25To implement the expungement law changes
72.26in 2014 S.F. No. 2214, if enacted.

72.27
Sec. 5. HUMAN SERVICES
$
-0-
$
98,000
72.28Expungement
72.29To implement the expungement law changes
72.30in 2014 S.F. No. 2214, if enacted.

73.1ARTICLE 6
73.2CRIMINAL JUSTICE-RELATED PROVISIONS

73.3    Section 1. Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to
73.4read:
73.5    Subd. 7. Continuance. (a) When it is in the best interests of the child to do so and
73.6not inimical to public safety and when the child has admitted the allegations contained in
73.7the petition before the judge or referee, or when a hearing has been held as provided for in
73.8section 260B.163 and the allegations contained in the petition have been duly proven but,
73.9in either case, before a finding of delinquency has been entered, the court may continue
73.10the case for a period not to exceed 90 180 days on any one order. Such a continuance may
73.11be extended for one additional successive period not to exceed 90 days and only after the
73.12court has reviewed the case and entered its order for an additional continuance without a
73.13finding of delinquency. The continuance may be extended for one additional successive
73.14period not to exceed 180 days, but only with the consent of the prosecutor and only after
73.15the court has reviewed the case and entered its order for the additional continuance
73.16without a finding of delinquency. During this a continuance the court may enter an order
73.17in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or
73.18enter an order to hold the child in detention for a period not to exceed 15 days on any one
73.19order for the purpose of completing any consideration, or any investigation or examination
73.20ordered in accordance with the provisions of section 260B.157.
73.21(b) A prosecutor may appeal a continuance ordered in contravention of this
73.22subdivision. This subdivision does not extend the court's jurisdiction under section
73.23260B.193 and does not apply to an extended jurisdiction juvenile proceeding.
73.24EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
73.25offenses committed on or after that date.

73.26    Sec. 2. Minnesota Statutes 2012, section 645.241, is amended to read:
73.27645.241 PUNISHMENT FOR PROHIBITED ACTS.
73.28(a) Except as provided in paragraph (b), when the performance of any act is
73.29prohibited by a statute, and no penalty for the violation of the same shall be imposed in
73.30any statute, the doing of such act shall be a misdemeanor.
73.31(b) When the performance of any act is prohibited by a statute enacted or amended
73.32after September 1, 2014, and no penalty for the violation of the same shall be imposed in
73.33any statute, the doing of such act shall be a petty misdemeanor.

74.1    Sec. 3. Laws 2013, chapter 86, article 1, section 13, is amended to read:
74.2
74.3
Sec. 13. PEACE OFFICER STANDARDS
AND TRAINING (POST) BOARD
$
3,870,000
$
3,870,000
74.4(a) Excess Amounts Transferred
74.5This appropriation is from the peace officer
74.6training account in the special revenue fund.
74.7Any new receipts credited to that account in
74.8the first year in excess of $3,870,000 must be
74.9transferred and credited to the general fund.
74.10Any new receipts credited to that account in
74.11the second year in excess of $3,870,000 must
74.12be transferred and credited to the general
74.13fund.
74.14(b) Peace Officer Training
74.15Reimbursements
74.16$2,734,000 each year is for reimbursements
74.17to local governments for peace officer
74.18training costs.
74.19(c) Training; Sexually Exploited and
74.20Trafficked Youth
74.21Of the appropriation in paragraph (b),
74.22$100,000 the first year is for reimbursements
74.23to local governments for peace officer
74.24training costs on sexually exploited and
74.25trafficked youth, including effectively
74.26identifying sex trafficked victims and
74.27traffickers, investigation techniques, and
74.28assisting sexually exploited youth. These
74.29funds are available until June 30, 2016.
74.30Reimbursement shall be provided on a flat
74.31fee basis of $100 per diem per officer.
74.32EFFECTIVE DATE.This section is effective the day following final enactment.

75.1ARTICLE 7
75.2STATE DEPARTMENTS AND VETERANS

75.3
Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.
75.4    The sums shown in the columns marked "Appropriations" are added to the
75.5appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes
75.6specified in this article. The appropriations are from the general fund, or another named
75.7fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
75.8and "2015" used in this article mean that the addition to the appropriation listed under
75.9them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
75.10Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
75.11day following final enactment.
75.12
APPROPRIATIONS
75.13
Available for the Year
75.14
Ending June 30
75.15
2014
2015

75.16
75.17
Sec. 2. STATE DEPARTMENTS AND
VETERANS APPROPRIATIONS
75.18
75.19
Subdivision 1.Legislative Coordinating
Commission
-0-
455,000
75.20$300,000 is for operating costs of the joint
75.21legislative offices.
75.22$155,000 is for the Legislative Water
75.23Commission established in section 4.
75.24$145,000 each fiscal year is added to the base
75.25through fiscal year 2019.
75.26
Subd. 2.Administration
-0-
400,000
75.27$150,000 is for developing and implementing
75.28a certification program for veteran-owned
75.29small businesses in accordance with
75.30Minnesota Statutes, section 16C.19.
75.31$112,000 each year is added to the base.
75.32$250,000 is appropriated for up to five
75.33grants of up to $50,000 each to conduct
75.34a housing needs assessment for veterans.
75.35Up to five percent may be used by the
76.1commissioner to administer these grants. The
76.2grants may be awarded to any government
76.3or nongovernmental organization. The
76.4assessment, which may be a study or
76.5a survey, may examine the need for
76.6scattered site housing for veterans and their
76.7families who are homeless or in danger of
76.8homelessness or for housing that addresses
76.9the health care needs of disabled or aging
76.10veterans. The assessment must be started by
76.11July 30, 2015, and completed by July 30,
76.122016. The commissioner of administration
76.13must provide copies of any completed
76.14assessment to the chairs and ranking minority
76.15members of the legislative committees with
76.16jurisdiction over housing and veterans affairs
76.17no later than January 1, 2017. This is a
76.18onetime appropriation.
76.19
Subd. 3.Racing Commission
100,000
85,000
76.20These appropriations are from the racing
76.21and card playing regulation accounts in the
76.22special revenue fund. These appropriations
76.23are onetime and are available in either year
76.24of the biennium.
76.25
Subd. 4. Amateur Sports Commission
-0-
50,000
76.26$50,000 is to develop a pilot program to
76.27prevent and reduce childhood obesity. This
76.28appropriation is onetime and is available
76.29until June 30, 2017.
76.30
Subd. 5.Minnesota Historical Society
-0-
22,000
76.31$22,000 is for a grant to Farm America for
76.32repairs and maintenance of the Minnesota
76.33Agricultural Interpretive Center and for audit
77.1expenses. This is a onetime appropriation
77.2and is available until June 30, 2017.
77.3
Subd. 6.Board of the Arts
-0-
600,000
77.4For arts education in partnership with the
77.5President's Turnaround Arts Initiative. This
77.6appropriation is canceled if the federal grant
77.7under the initiative is not awarded. This
77.8appropriation is available until June 30,
77.92015. This is a onetime appropriation.
77.10
Subd. 7. Minnesota Humanities Center
-0-
225,000
77.11$125,000 is for the Veterans' Voices
77.12program to educate and engage the
77.13community regarding veterans' contributions,
77.14knowledge, skills, and experiences. Of
77.15this amount, $25,000 is for transfer to the
77.16Association of Minnesota Public Education
77.17Radio Stations for statewide programming to
77.18promote the Veterans' Voices program. This
77.19is a onetime appropriation.
77.20$100,000 is from the arts and cultural
77.21heritage fund for professional development
77.22for kindergarten through grade 12 educators
77.23to better culturally engage their work with
77.24at-risk student populations. This may include
77.25new and original literature that addresses
77.26literacy of emerging cultural communities.
77.27This is a onetime appropriation.
77.28
Subd. 8. Department of Education
-0-
44,000
77.29This appropriation is to implement expedited
77.30and temporary licensing provisions of
77.31Minnesota Statutes, section 197.4552. This
77.32is a onetime appropriation.
77.33
Subd. 9.Board of Accountancy
-0-
44,000
78.1This appropriation is to implement expedited
78.2and temporary licensing provisions of
78.3Minnesota Statutes, section 197.4552. This
78.4is a onetime appropriation.
78.5
78.6
78.7
Subd. 10.Board of Architecture, Engineering,
Land Surveying, Landscape, Architecture,
Geoscience, and Interior Design
-0-
44,000
78.8This appropriation is to implement expedited
78.9and temporary licensing provisions of
78.10Minnesota Statutes, section 197.4552. This
78.11is a onetime appropriation.
78.12
Subd. 11.Board of Cosmetologist Examiners
-0-
20,000
78.13This appropriation is to implement expedited
78.14and temporary licensing provisions of
78.15Minnesota Statutes, section 197.4552. This
78.16is a onetime appropriation.
78.17
Subd. 12.Board of Barber Examiners
-0-
10,000
78.18This appropriation is to implement expedited
78.19and temporary licensing provisions of
78.20Minnesota Statutes, section 197.4552. This
78.21is a onetime appropriation.
78.22
Subd. 13.Board of Private Detectives
-0-
44,000
78.23This appropriation is to implement expedited
78.24and temporary licensing provisions of
78.25Minnesota Statutes, section 197.4552. This
78.26is a onetime appropriation.
78.27
78.28
Subd. 14.Board of Behavioral Health and
Therapy
-0-
15,000
78.29This appropriation is from the state
78.30government special revenue fund to
78.31implement expedited and temporary licensing
78.32provisions of Minnesota Statutes, section
78.33197.4552. This is a onetime appropriation.
78.34
Subd. 15.Board of Dentistry
-0-
10,000
79.1This appropriation is from the state
79.2government special revenue fund to
79.3implement expedited and temporary licensing
79.4provisions of Minnesota Statutes, section
79.5197.4552. This is a onetime appropriation.
79.6
79.7
Subd. 16.Board of Dietetics and Nutrition
Practice
-0-
10,000
79.8This appropriation is from the state
79.9government special revenue fund to
79.10implement expedited and temporary licensing
79.11provisions of Minnesota Statutes, section
79.12197.4552. This is a onetime appropriation.
79.13
79.14
Subd. 17.Board of Marriage and Family
Therapy
-0-
14,000
79.15This appropriation is from the state
79.16government special revenue fund to
79.17implement expedited and temporary licensing
79.18provisions of Minnesota Statutes, section
79.19197.4552. This is a onetime appropriation.
79.20
79.21
Subd. 18.Board of Nursing Home
Administrators
-0-
1,000
79.22This appropriation is from the state
79.23government special revenue fund to
79.24implement expedited and temporary licensing
79.25provisions of Minnesota Statutes, section
79.26197.4552. This is a onetime appropriation.
79.27
Subd. 19.Board of Optometry
-0-
10,000
79.28This appropriation is from the state
79.29government special revenue fund to
79.30implement expedited and temporary licensing
79.31provisions of Minnesota Statutes, section
79.32197.4552. This is a onetime appropriation.
79.33
Subd. 20.Board of Podiatric Medicine
-0-
10,000
80.1This appropriation is from the state
80.2government special revenue fund to
80.3implement expedited and temporary licensing
80.4provisions of Minnesota Statutes, section
80.5197.4552. This is a onetime appropriation.
80.6
Subd. 21.Board of Social Work
-0-
3,000
80.7This appropriation is from the state
80.8government special revenue fund to
80.9implement expedited and temporary licensing
80.10provisions of Minnesota Statutes, section
80.11197.4552. This is a onetime appropriation.

80.12    Sec. 3. Minnesota Statutes 2012, section 3.099, subdivision 3, is amended to read:
80.13    Subd. 3. Leaders. The senate Committee on Rules and Administration for the senate
80.14and the house of representatives Committee on Rules and Legislative Administration for
80.15the house of representatives may each designate for their respective body up to three four
80.16 leadership positions to receive up to 140 percent of the compensation of other members.
80.17At the commencement of each biennial legislative session, each house of the
80.18legislature shall adopt a resolution designating its majority and minority leader.
80.19The majority leader is the person elected by the caucus of members in each house
80.20which is its largest political affiliation. The minority leader is the person elected by the
80.21caucus which is its second largest political affiliation.
80.22EFFECTIVE DATE.This section is effective January 6, 2015.

80.23    Sec. 4. [3.886] LEGISLATIVE WATER COMMISSION.
80.24    Subdivision 1. Establishment. A Legislative Water Commission is established.
80.25    Subd. 2. Membership. (a) The Legislative Water Commission consists of 12
80.26members appointed as follows:
80.27(1) six members of the senate, including three majority party members appointed by
80.28the majority leader and three minority party members appointed by the minority leader; and
80.29(2) six members of the house of representatives, including three majority party
80.30members appointed by the speaker of the house and three minority party members
80.31appointed by the minority leader.
80.32(b) Members serve at the pleasure of the appointing authority and continue to serve
80.33until their successors are appointed or until a member is no longer a member of the
81.1legislative body that appointed the member to the commission. Vacancies shall be filled in
81.2the same manner as the original positions. Vacancies occurring on the commission do not
81.3affect the authority of the remaining members of the Legislative Water Commission to
81.4carry out the function of the commission.
81.5(c) Members shall elect a chair, vice chair, and other officers as determined by
81.6the commission. The chair may convene meetings as necessary to conduct the duties
81.7prescribed by this section.
81.8    Subd. 3. Commission staffing. The Legislative Coordinating Commission must
81.9employ staff and contract with consultants as necessary to enable the Legislative Water
81.10Commission to carry out its duties and functions.
81.11    Subd. 4. Powers and duties. (a) The Legislative Water Commission shall review
81.12water policy reports and recommendations of the Environmental Quality Board, the Board
81.13of Water and Soil Resources, the Pollution Control Agency, the Department of Natural
81.14Resources, the Metropolitan Council, and other water-related reports as may be required
81.15by law or the legislature.
81.16(b) The commission may conduct public hearings and otherwise secure data and
81.17comments.
81.18(c) The commission shall make recommendations as it deems proper to assist the
81.19legislature in formulating legislation.
81.20(d) Data or information compiled by the Legislative Water Commission or its
81.21subcommittees shall be made available to the Legislative-Citizen Commission on
81.22Minnesota Resources, the Clean Water Council, and standing and interim committees of
81.23the legislature on request of the chair of the respective commission, council, or committee.
81.24(e) The commission shall coordinate with the Clean Water Council.
81.25    Subd. 5. Compensation. Members may receive per diem under section 3.099 for
81.26attending commission meetings, and may be reimbursed for expenses incurred doing
81.27the work of the commission, but shall not receive any other compensation for serving
81.28on the commission.
81.29    Subd. 6. Expiration. This section expires July 1, 2019.

81.30    Sec. 5. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is
81.31amended to read:
81.32    Subdivision 1. Creation. A Compensation Council is created each odd-numbered
81.33year to assist the legislature in establishing the compensation of constitutional officers,
81.34members of the legislature, justices of the Supreme Court, judges of the Court of Appeals
82.1and district court, and the heads of state and metropolitan agencies included in section
82.215A.0815 .
82.3EFFECTIVE DATE.This section is effective the day following final enactment.

82.4    Sec. 6. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is
82.5amended to read:
82.6    Subd. 3. Submission of recommendations. (a) By March April 15 in each
82.7odd-numbered year, the Compensation Council shall submit to the speaker of the house
82.8and the president of the senate salary recommendations for constitutional officers,
82.9legislators, justices of the Supreme Court, and judges of the Court of Appeals and district
82.10court. The recommended salary for each other office must take effect on the first Monday
82.11in January of the next odd-numbered year, with no more than one adjustment, to take
82.12effect on January 1 of the year after that. The salary recommendations for legislators,
82.13 judges, and constitutional officers take effect if an appropriation of money to pay the
82.14recommended salaries is enacted after the recommendations are submitted and before
82.15their effective date. Recommendations may be expressly modified or rejected. The salary
82.16recommendations for legislators are subject to additional terms that may be adopted
82.17according to section 3.099, subdivisions 1 and 3.
82.18(b) The council shall also submit to the speaker of the house and the president of
82.19the senate recommendations for the salary ranges of the heads of state and metropolitan
82.20agencies, to be effective retroactively from January 1 of that year if enacted into law. The
82.21recommendations shall include the appropriate group in section 15A.0815 to which each
82.22agency head should be assigned and the appropriate limitation on the maximum range of
82.23the salaries of the agency heads in each group, expressed as a percentage of the salary of
82.24the governor.
82.25EFFECTIVE DATE.This section is effective the day following final enactment.

82.26    Sec. 7. Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:
82.27    Subd. 4. Criteria. In making compensation recommendations, the council shall
82.28consider the amount of compensation paid in government service and the private sector
82.29to persons with similar qualifications, the amount of compensation needed to attract
82.30and retain experienced and competent persons, and the ability of the state to pay the
82.31recommended compensation. In making recommendations for legislative compensation,
82.32the council shall also consider the average length of a legislative session, the amount of
83.1work required of legislators during interim periods, and opportunities to earn income from
83.2other sources without neglecting legislative duties.
83.3EFFECTIVE DATE.This section is effective the day following final enactment.

83.4    Sec. 8. Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:
83.5    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
83.6federal government as a condition of receiving federal funds, the commissioner shall
83.7award up to a six percent preference, but no less than the percentage awarded to any
83.8other group under this section, in the amount bid on state procurement to certified small
83.9businesses that are majority-owned and operated by: veterans.
83.10(1) recently separated veterans who have served in active military service, at any
83.11time on or after September 11, 2001, and who have been discharged under honorable
83.12conditions from active service, as indicated by the person's United States Department of
83.13Defense form DD-214 or by the commissioner of veterans affairs;
83.14(2) veterans with service-connected disabilities, as determined at any time by the
83.15United States Department of Veterans Affairs; or
83.16(3) any other veteran-owned small businesses certified under section 16C.19,
83.17paragraph (d).
83.18(b) The purpose of this designation is to facilitate the transition of veterans from
83.19military to civilian life, and to help compensate veterans for their sacrifices, including but
83.20not limited to their sacrifice of health and time, to the state and nation during their military
83.21service, as well as to enhance economic development within Minnesota.

83.22    Sec. 9. Minnesota Statutes 2012, section 16C.19, is amended to read:
83.2316C.19 ELIGIBILITY; RULES.
83.24(a) A small business wishing to participate in the programs under section 16C.16,
83.25subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
83.26by rule standards and procedures for certifying that small businesses, small targeted
83.27group businesses, and small businesses located in economically disadvantaged areas,
83.28and veteran-owned small businesses are eligible to participate under the requirements
83.29of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and
83.30procedures for hearing appeals and grievances and other rules necessary to carry out the
83.31duties set forth in sections 16C.16 to 16C.21.
84.1(b) The commissioner may make rules which exclude or limit the participation of
84.2nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
84.3manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
84.4(c) The commissioner may make rules that set time limits and other eligibility limits
84.5on business participation in programs under sections 16C.16 to 16C.21.
84.6(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a
84.7veteran-owned small business, the principal place of business of which is in Minnesota,
84.8is certified if it has been verified by the United States Department of Veterans Affairs as
84.9being either a veteran-owned small business or a service-disabled veteran-owned small
84.10business, in accordance with Public Law 109-461 and Code of Federal Regulations,
84.11title 38, part 74 Until rules are adopted pursuant to paragraph (a) for the purpose of
84.12certifying veteran-owned small businesses, the provisions of Minnesota Rules, part
84.131230.1700, may be read to include veteran-owned small businesses. In addition to the
84.14documentation required in Minnesota Rules, part 1230.1700, the veteran owner must
84.15have been discharged under honorable conditions from active service, as indicated by the
84.16veteran owner's most current United States Department of Defense form DD-214.

84.17    Sec. 10. Minnesota Statutes 2012, section 122A.18, is amended by adding a
84.18subdivision to read:
84.19    Subd. 7c. Temporary military license. The Board of Teaching shall establish
84.20a temporary license in accordance with section 197.4552 for teaching. The fee for a
84.21temporary license under this subdivision shall be $87.90 for an on-line application or
84.22$86.40 for a paper application.

84.23    Sec. 11. [148.595] TEMPORARY MILITARY PERMIT; FEE.
84.24The Board of Optometry shall establish a temporary permit in accordance with
84.25section 197.4552. The fee for the temporary military permit is $250.

84.26    Sec. 12. Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision
84.27to read:
84.28    Subd. 5. Temporary military permit. The board shall issue a temporary permit to
84.29members of the military in accordance with section 197.4552. The fee for the temporary
84.30permit is $250.

84.31    Sec. 13. Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is
84.32amended to read:
85.1    Subd. 2. Licensure and application fees. Nonrefundable licensure and application
85.2fees established by the board shall not exceed the following amounts:
85.3(1) application fee for national examination is $110;
85.4(2) application fee for Licensed Marriage and Family Therapist (LMFT) state
85.5examination is $110;
85.6(3) initial LMFT license fee is prorated, but cannot exceed $125;
85.7(4) annual renewal fee for LMFT license is $125;
85.8(5) late fee for LMFT license renewal is $50;
85.9(6) application fee for LMFT licensure by reciprocity is $220;
85.10(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT)
85.11license is $75;
85.12(8) annual renewal fee for LAMFT license is $75;
85.13(9) late fee for LAMFT renewal is $25;
85.14(10) fee for reinstatement of license is $150; and
85.15(11) fee for emeritus status is $125; and
85.16(12) fee for temporary license for members of the military is $100.

85.17    Sec. 14. Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:
85.18    Subd. 3. Fee. Nonrefundable fees are as follows:
85.19    (1) initial license application fee for licensed professional counseling (LPC) - $150;
85.20    (2) initial license fee for LPC - $250;
85.21    (3) annual active license renewal fee for LPC - $250 or equivalent;
85.22    (4) annual inactive license renewal fee for LPC - $125;
85.23    (5) initial license application fee for licensed professional clinical counseling
85.24(LPCC) - $150;
85.25    (6) initial license fee for LPCC - $250;
85.26    (7) annual active license renewal fee for LPCC - $250 or equivalent;
85.27    (8) annual inactive license renewal fee for LPCC - $125;
85.28    (9) license renewal late fee - $100 per month or portion thereof;
85.29    (10) copy of board order or stipulation - $10;
85.30    (11) certificate of good standing or license verification - $25;
85.31    (12) duplicate certificate fee - $25;
85.32    (13) professional firm renewal fee - $25;
85.33    (14) sponsor application for approval of a continuing education course - $60;
85.34    (15) initial registration fee - $50;
85.35    (16) annual registration renewal fee - $25; and
86.1    (17) approved supervisor application processing fee - $30; and
86.2    (18) temporary license for members of the military - $250.

86.3    Sec. 15. Minnesota Statutes 2012, section 150A.091, is amended by adding a
86.4subdivision to read:
86.5    Subd. 9c. Temporary permit. Applications for a temporary military permit in
86.6accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.

86.7    Sec. 16. Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision
86.8to read:
86.9    Subd. 4. Temporary military permit. The board shall establish a temporary permit
86.10in accordance with section 197.4552. The fee for the temporary military permit is $250.

86.11    Sec. 17. Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter
86.1285, article 5, section 12, is amended to read:
86.13154.11 EXAMINATION OF NONRESIDENT BARBERS AND
86.14INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS;
86.15TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.
86.16    Subdivision 1. Examination of nonresidents. A person who meets all of the
86.17requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
86.18154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate of
86.19registration, or an equivalent as a practicing barber or instructor of barbering from another
86.20state or country which in the discretion of the board has substantially the same requirements
86.21for registering barbers and instructors of barbering as required by sections 154.001,
86.22154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or can prove
86.23by sworn affidavits practice as a barber or instructor of barbering in another state or country
86.24for at least five years immediately prior to making application in this state, shall, upon
86.25payment of the required fee, be issued a certificate of registration without examination.
86.26    Subd. 2. Temporary apprentice permits for nonresidents. Any person who
86.27qualifies for examination as a registered barber under this section may apply for a
86.28temporary apprentice permit which is effective no longer than six months. All persons
86.29holding a temporary apprentice permit are subject to all provisions of sections 154.001,
86.30154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the
86.31rules adopted by the board under those sections concerning the conduct and obligations
86.32of registered apprentices.
87.1    Subd. 3. Temporary military license. The board shall establish a temporary license
87.2for barbers and master barbers and a temporary permit for apprentices in accordance with
87.3section 197.4552. The fee for a temporary license under this subdivision for a master
87.4barber is $85. The fee for a temporary license under this subdivision for a barber is $180.
87.5The fee for a temporary permit under this subdivision for an apprentice is $80.

87.6    Sec. 18. Minnesota Statutes 2012, section 155A.27, is amended by adding a
87.7subdivision to read:
87.8    Subd. 5a. Temporary military license. The board shall establish temporary
87.9licenses for a cosmetologist, nail technician, and esthetician, in accordance with section
87.10197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail
87.11technician, or esthetician is $100.

87.12    Sec. 19. Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:
87.13    Subd. 2. Employee. "Employee" means a person who performs services for hire
87.14for has been employed by an employer from whom a leave is requested under sections
87.15181.940 to 181.944 for:
87.16(1) at least 12 consecutive months immediately preceding the request or, if the
87.17employer is an educational institution, at least 12 months preceding the request; and
87.18(2) for an average number of hours per week equal to one-half the full-time
87.19equivalent position in the employee's job classification as defined by the employer's
87.20personnel policies or practices or pursuant to the provisions of a collective bargaining
87.21agreement, during those 12 months.
87.22For the purpose of this subdivision, "educational institution" means an elementary or
87.23secondary school.
87.24Employee includes all individuals employed at any site owned or operated by the
87.25employer but does not include an independent contractor.
87.26EFFECTIVE DATE.This section is effective the day following final enactment.

87.27    Sec. 20. [197.4552] EXPEDITED AND TEMPORARY LICENSING FOR
87.28FORMER AND CURRENT MEMBERS OF THE MILITARY.
87.29    Subdivision 1. Expedited licensing processing. Notwithstanding any other law to
87.30the contrary, each professional licensing board defined in section 214.01, subdivisions 2
87.31and 3, shall establish a procedure to expedite the issuance of a license or certification to
87.32perform professional services regulated by each board to a qualified individual who is:
87.33(1) an active duty military member;
88.1(2) the spouse of an active duty military member; or
88.2(3) a veteran who has left service in the two years preceding the date of license or
88.3certification application, and has confirmation of an honorable or general discharge status.
88.4    Subd. 2. Temporary licenses. (a) Notwithstanding any other law to the contrary,
88.5each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall
88.6establish a procedure to issue a temporary license or certification to perform professional
88.7services regulated by each board to a qualified individual who is:
88.8(1) an active duty military member;
88.9(2) the spouse of an active duty military member; or
88.10(3) a veteran who has left service in the two years preceding the date of license or
88.11certification application, and has confirmation of an honorable or general discharge status.
88.12(b) A qualified individual under paragraph (a) must provide evidence of:
88.13(1) a current, valid license, certificate, or permit in another state without history of
88.14disciplinary action by a regulatory authority in the other state; and
88.15(2) a current criminal background study without a criminal conviction that is
88.16determined by the board to adversely affect the applicants' ability to become licensed.
88.17(c) A temporary license or certificate issued under this subdivision shall allow a
88.18qualified individual to perform regulated professional services for a limited length of time
88.19as determined by the licensing board. During the temporary license period, the individual
88.20shall complete the full application procedure as required by applicable law.
88.21    Subd. 3. Rulemaking. Each licensing board may adopt rules to carry out the
88.22provisions of this section.

88.23    Sec. 21. Minnesota Statutes 2012, section 326.04, is amended by adding a subdivision
88.24to read:
88.25    Subd. 1a. Temporary military certificate. The board shall establish a temporary
88.26certificate in accordance with section 197.4552.

88.27    Sec. 22. Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision
88.28to read:
88.29    Subd. 10. Temporary military license. The board shall establish a temporary
88.30license in accordance with section 197.4552 for the practice of architecture, professional
88.31engineering, geosciences, land surveying, landscape architecture, and interior design.
88.32The fee for the temporary license under this subdivision for the practice of architecture,
88.33professional engineering, geosciences, land surveying, landscape architecture, or interior
88.34design is $132.

89.1    Sec. 23. Minnesota Statutes 2012, section 326.3382, is amended by adding a
89.2subdivision to read:
89.3    Subd. 6. Temporary military license. The board shall establish a temporary
89.4license to engage in the business of private detective or protective agent in accordance
89.5with section 197.4552. The fee for the temporary license under this subdivision for a
89.6private detective is $1,000. The fee for a temporary license under this subdivision for a
89.7protective agent is $800.

89.8    Sec. 24. Minnesota Statutes 2012, section 326A.04, is amended by adding a
89.9subdivision to read:
89.10    Subd. 1a. Temporary military certificate. The board shall establish a temporary
89.11military certificate in accordance with section 197.4552.

89.12    Sec. 25. Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is
89.13amended to read:
89.14    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
89.15issuance or renewal of a certificate or temporary military certificate under this section as
89.16provided in paragraph (b). The fee for the temporary military certificate is $100.
89.17    (b) The board shall charge the following fees:
89.18    (1) initial issuance of certificate, $150;
89.19    (2) renewal of certificate with an active status, $100 per year;
89.20    (3) initial CPA firm permits, except for sole practitioners, $100;
89.21    (4) renewal of CPA firm permits, except for sole practitioners and those firms
89.22specified in clause (17), $35 per year;
89.23    (5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
89.24those firms specified in clause (17), $35 per year;
89.25    (6) annual late processing delinquency fee for permit, certificate, or registration
89.26renewal applications not received prior to expiration date, $50;
89.27    (7) copies of records, per page, 25 cents;
89.28    (8) registration of noncertificate holders, nonlicensees, and nonregistrants in
89.29connection with renewal of firm permits, $45 per year;
89.30    (9) applications for reinstatement, $20;
89.31    (10) initial registration of a registered accounting practitioner, $50;
89.32    (11) initial registered accounting practitioner firm permits, $100;
89.33    (12) renewal of registered accounting practitioner firm permits, except for sole
89.34practitioners, $100 per year;
90.1    (13) renewal of registered accounting practitioner firm permits for sole practitioners,
90.2$35 per year;
90.3    (14) CPA examination application, $40;
90.4    (15) CPA examination, fee determined by third-party examination administrator;
90.5    (16) renewal of certificates with an inactive status, $25 per year; and
90.6    (17) renewal of CPA firm permits for firms that have one or more offices located in
90.7another state, $68 per year.

90.8    Sec. 26. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS
90.9AND FIRST MEETING.
90.10Initial appointments to the Legislative Water Commission established in section
90.114 must be made by September 1, 2014. The first meeting of the commission shall be
90.12convened by the chair of the commission by October 15, 2014. The commission shall
90.13select a chair from its membership at its first meeting.

90.14    Sec. 27. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL
90.15ACCOMMODATION.
90.16The commissioner of management and budget, in consultation with the Commission
90.17of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs
90.18and ranking minority members of the senate Finance Committee and the house of
90.19representatives Ways and Means Committee and the governor by January 5, 2015, on
90.20advantages and disadvantages of creating an account for the special revenue fund in the
90.21state treasury to pay for costs of providing accommodations to executive branch state
90.22employees with disabilities. The report must include:
90.23(1) a summary of money spent by executive branch state agencies in fiscal years
90.242012 and 2013 for providing accommodations to executive branch state employees, to
90.25the extent that such expenditures can be determined; and
90.26(2) recommendations for laws and policies needed to implement an account in the
90.27special revenue fund, if one is recommended under this section; or other recommendations
90.28related to best practices in provision of accommodations for employees with disabilities
90.29in the executive branch.

90.30ARTICLE 8
90.31ENVIRONMENT AND AGRICULTURE

90.32
Section 1. SUMMARY OF APPROPRIATIONS.
91.1The amounts shown in this section summarize direct appropriations, by fund, made
91.2in this article.
91.3
2014
2015
Total
91.4
General
$
-0-
$
3,321,000
$
3,321,000
91.5
Environmental
-0-
750,000
750,000
91.6
Remediation
-0-
650,000
650,000
91.7
Natural Resources
-0-
(1,450,000)
(1,450,000)
91.8
Game and Fish
-0-
2,400,000
2,400,000
91.9
Clean Water
-0-
2,500,000
2,500,000
91.10
91.11
Environment and Natural
Resources Trust
-0-
490,000
490,000
91.12
Total
$
-0-
$
8,661,000
$
8,661,000

91.13
Sec. 2. APPROPRIATIONS.
91.14The sums shown in the columns marked "Appropriations" are added to or, if shown
91.15in parentheses, subtracted from the appropriations in Laws 2013, chapter 114, to the
91.16agencies and for the purposes specified in this article. The appropriations are from the
91.17general fund, or another named fund, and are available for the fiscal years indicated for
91.18each purpose. The figures "2014" and "2015" used in this article mean that the addition to
91.19the appropriation listed under them is available for the fiscal year ending June 30, 2014, or
91.20June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June
91.2130, 2014, are effective the day following final enactment.
91.22
APPROPRIATIONS
91.23
Available for the Year
91.24
Ending June 30
91.25
2014
2015

91.26
Sec. 3. POLLUTION CONTROL AGENCY
$
-0-
$
1,600,000
91.27$750,000 in 2015 is from the environmental
91.28fund for SCORE block grants to counties.
91.29$200,000 in 2015 is from the clean water
91.30fund for coordination with the state of
91.31Wisconsin and the National Park Service
91.32on comprehensive phosphorus reduction
91.33activities in the Lake St. Croix portion
91.34of the St. Croix River. The agency shall
91.35work with the St. Croix Basin Water
91.36Resources Planning Team and the St. Croix
92.1River Association in implementing the
92.2water monitoring and phosphorus reduction
92.3activities. This is a onetime appropriation and
92.4is subject to the availability of appropriations
92.5in Laws 2013, chapter 137, article 2, section
92.62, subdivision 2.
92.7$650,000 in 2015 from the remediation
92.8fund for additional staff and administrative
92.9expenses to manage and oversee investigation
92.10and mitigation efforts at superfund sites.
92.11This is a onetime appropriation.

92.12
Sec. 4. NATURAL RESOURCES
92.13
Subdivision 1.Total Appropriation
$
-0-
$
3,421,000
92.14
Appropriations by Fund
92.15
General
-0-
2,471,000
92.16
Natural Resources
-0-
(1,450,000)
92.17
Game and Fish
-0-
2,400,000
92.18The amounts that may be spent for each
92.19purpose are specified in the following
92.20subdivisions.
92.21
Subd. 2.Land and Minerals Management
92.22
Appropriations by Fund
92.23
General
-0-
2,450,000
92.24
Natural Resources
-0-
(1,450,000)
92.25$1,450,000 in 2015 is a reduction to the
92.26appropriation from the minerals management
92.27account in the natural resources fund for
92.28minerals resource management.
92.29$1,450,000 in 2015 is for minerals resource
92.30management.
92.31$1,000,000 in 2015 is to extinguish the
92.32school trust interest in the school trust lands
92.33identified in Minnesota Statutes, section
93.184.027, subdivision 18, paragraph (c). This
93.2is a onetime appropriation.
93.3
Subd. 3.Ecological and Water Resources
-0-
(1,679,000)
93.4$1,700,000 in 2015 is a reduction to surface
93.5and groundwater management. This is a
93.6onetime reduction.
93.7$21,000 in 2015 for a grant to the
93.8Mississippi Headwaters Board for the cost
93.9of implementing the comprehensive plan for
93.10the upper Mississippi within the areas under
93.11the board's jurisdiction.
93.12
Subd. 4.Parks and Trails Management
-0-
1,700,000
93.13$1,700,000 in 2015 is for parks and
93.14trails management. This is a onetime
93.15appropriation.
93.16
Subd. 5.Fish and Wildlife Management
-0-
2,400,000
93.17$2,000,000 in 2015 is from the game and fish
93.18fund for shooting sports facility grants under
93.19Minnesota Statutes, section 87A.10. This is
93.20a onetime appropriation and is available until
93.21June 30, 2017.
93.22$400,000 in 2015 is from the heritage
93.23enhancement account in the game and fish
93.24fund for a grant to Let's Go Fishing of
93.25Minnesota to provide community outreach
93.26to senior citizens, youth, and veterans and
93.27for the costs associated with establishing
93.28and recruiting new chapters. The grants
93.29must be matched with cash or in-kind
93.30contributions from nonstate sources. Of
93.31this amount, $25,000 is for Asian Outdoor
93.32Heritage for youth fishing recruitment efforts
93.33and outreach in the metropolitan area. The
93.34commissioner may spend up to three percent
94.1of the appropriation to administer the grant.
94.2This is a onetime appropriation and is
94.3available until June 30, 2016.

94.4
94.5
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
-0-
$
1,150,000
94.6$1,150,000 in 2015 from the clean water
94.7fund is added to the appropriation to the
94.8Board of Water and Soil Resources for
94.9grants in Laws 2013, chapter 137, article 2,
94.10section 7, paragraph (b). This is a onetime
94.11appropriation.

94.12
Sec. 6. ADMINISTRATION
$
-0-
$
185,000
94.13$185,000 in 2015 is for activities and the
94.14administrative expenses of the school trust
94.15lands director and additional staff, under
94.16Minnesota Statutes, section 127A.353.

94.17
94.18
Sec. 7. LEGISLATIVE COORDINATING
COMMISSION
$
-0-
$
15,000
94.19$15,000 in 2015 is for the administrative
94.20expenses of the Permanent School Fund
94.21Commission under Minnesota Statutes,
94.22section 127A.30, and for compensation
94.23and expense reimbursement of commission
94.24members.

94.25
Sec. 8. UNIVERSITY OF MINNESOTA
$
-0-
$
1,640,000
94.26$390,000 in 2015 is from the environment
94.27and natural resources trust fund to develop
94.28and support a terrestrial invasive species
94.29research center at the University of
94.30Minnesota that will develop new techniques
94.31to control terrestrial invasive species. This
94.32is a onetime appropriation and is available
94.33until June 30, 2019.
95.1$170,000 from the environment and natural
95.2resources trust fund appropriated in Laws
95.32011, First Special Session, chapter 2, article
95.43, section 2, subdivision 9, paragraph (d),
95.5Reinvest in Minnesota Wetlands Reserve
95.6Acquisition and Restoration Program
95.7Partnership, is transferred to the Board of
95.8Regents to develop and support a terrestrial
95.9invasive species research center at the
95.10University of Minnesota that will develop
95.11new techniques to control terrestrial invasive
95.12species and is available until June 30, 2019.
95.13$1,150,000 in 2015 from the clean water
95.14fund is for the Forever Green Agricultural
95.15Initiative and to protect the state's natural
95.16resources while increasing efficiency,
95.17profitability, and productivity of Minnesota
95.18farmers by incorporating perennial and
95.19winter annual crops into existing agricultural
95.20practices. This is a onetime appropriation and
95.21is subject to the availability of appropriations
95.22in Laws 2013, chapter 137, article 2, section
95.232, subdivision 2.
95.24$100,000 in 2015 is from the environment
95.25and natural resources trust fund for the
95.26Veterinary Diagnostic Laboratory to research
95.27porcine epidemic diarrhea virus.

95.28
Sec. 9. AGRICULTURE
$
-0-
$
550,000
95.29$350,000 in 2015 is for an increase in retail
95.30food handler inspections.
95.31$1,500,000 in 2015 is a reduction to the
95.32agricultural growth, research, and innovation
95.33program. This is a onetime reduction and
96.1none of this reduction may be allocated to
96.2the county fair arts access grants.
96.3$1,500,000 in 2015 is for a grant to Second
96.4Harvest Heartland to compensate Minnesota
96.5agricultural producers and processors for
96.6costs incurred to harvest and package
96.7for transfer surplus fruits, vegetables, or
96.8other agricultural commodities that would
96.9otherwise go unharvested or be discarded.
96.10Surplus commodities must be distributed
96.11statewide to food shelves and other charitable
96.12organizations that are eligible to receive
96.13food from the food banks. Second Harvest
96.14Heartland may use up to five percent of the
96.15grant for administrative expenses. This is a
96.16onetime appropriation.
96.17$200,000 in 2015 is added to the
96.18appropriation in Laws 2013, chapter 114,
96.19article 1, section 3, subdivision 4, for
96.20distribution to the state's county fairs.

96.21
Sec. 10. METROPOLITAN COUNCIL
$
-0-
$
100,000
96.22$800,000 from the environment and natural
96.23resources trust fund appropriated in Laws
96.242011, First Special Session, chapter 2, article
96.253, section 2, subdivision 9, paragraph (d),
96.26Reinvest in Minnesota Wetland Reserve
96.27Acquisition and Restoration Program
96.28Partnership is transferred to the Metropolitan
96.29Council for a grant to the White Bear Lake
96.30Conservation District to contract with an
96.31engineering firm for a detailed feasibility
96.32study of the lake augmentation option for
96.33White Bear Lake and is available until
96.34June 30, 2016. The detailed feasibility
96.35study must, at a minimum, provide for an
97.1evaluation of alternative routes; preliminary
97.2design; identify regulatory issues; provide
97.3preliminary cost estimates; and identify
97.4any other considerations that would affect
97.5the project's feasibility. The White Bear
97.6Lake Conservation District must choose
97.7an engineering firm that has demonstrated
97.8significant experience working with issues
97.9concerning water resources, watershed
97.10management and water supply management,
97.11and has demonstrated knowledge of the
97.12characterization of groundwater and surface
97.13water interaction in White Bear Lake and
97.14the effect of withdrawals from groundwater
97.15under White Bear Lake.
97.16$100,000 in 2015 is for a grant to the city of
97.17Shoreview for a feasibility study regarding
97.18the lowering of the water level of Turtle Lake
97.19and the possible effects of an augmentation
97.20of the lake.

97.21    Sec. 11. Laws 2013, chapter 114, article 3, section 3, subdivision 6, is amended to read:
97.22
Subd. 6.Remediation Fund
97.23The commissioner shall transfer up
97.24to $46,000,000 $47,150,000 from the
97.25environmental fund to the remediation fund
97.26for the purposes of the remediation fund
97.27under Minnesota Statutes, section 116.155,
97.28subdivision 2
.

97.29    Sec. 12. REPEALER.
97.30Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws
97.312010, First Special Session chapter 1, article 6, section 6, and Laws 2013, chapter 114,
97.32article 3, section 9, is repealed.

98.1ARTICLE 9
98.2ENVIRONMENT AND AGRICULTURE FISCAL IMPLEMENTATION
98.3PROVISIONS

98.4    Section 1. Minnesota Statutes 2012, section 16A.125, subdivision 5, is amended to read:
98.5    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used
98.6in this subdivision, means public land in trust under the Constitution set apart as "forest
98.7lands under the authority of the commissioner" of natural resources as defined by section
98.889.001, subdivision 13 .
98.9(b) The commissioner of management and budget shall credit the revenue from the
98.10forest trust fund lands to the forest suspense account. The account must specify the trust
98.11funds interested in the lands and the respective receipts of the lands.
98.12(c) After a fiscal year, the commissioner of management and budget shall certify
98.13the costs incurred for forestry during that year under appropriations for the improvement,
98.14administration, and management of state forest trust fund lands and construction and
98.15improvement of forest roads to enhance the forest value of the lands. The certificate
98.16must specify the trust funds interested in the lands. After presentation to the Legislative
98.17Permanent School Fund Commission, the commissioner of natural resources shall
98.18supply the commissioner of management and budget with the information needed for the
98.19certificate. The certificate shall include an analysis that compares costs certified under this
98.20section with costs incurred on other public and private lands with similar land assets.
98.21(d) After a fiscal year, the commissioner shall distribute the receipts credited to the
98.22suspense account during that fiscal year as follows:
98.23(1) the amount of the certified costs incurred by the state for forest management,
98.24forest improvement, and road improvement during the fiscal year shall be transferred to
98.25the forest management investment account established under section 89.039;
98.26(2) the amount of costs incurred by the Legislative Permanent School Fund
98.27Commission under section 127A.30, and by the school trust lands director under section
98.28127A.353, shall be transferred to the general fund;
98.29(3) the balance of the certified costs incurred by the state during the fiscal year
98.30shall be transferred to the general fund; and
98.31(3) (4) the balance of the receipts shall then be returned prorated to the trust funds in
98.32proportion to their respective interests in the lands which produced the receipts.

98.33    Sec. 2. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
98.34to read:
99.1    Subd. 1c. Apiary. "Apiary" means a place where a collection of one or more hives
99.2or colonies of bees or the nuclei of bees are kept.

99.3    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
99.4to read:
99.5    Subd. 2a. Bee. "Bee" means any stage of the common honeybee, Apis mellifera (L).

99.6    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
99.7to read:
99.8    Subd. 2b. Bee owner. "Bee owner" means a person who owns an apiary.

99.9    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
99.10to read:
99.11    Subd. 4c. Colony. "Colony" means the aggregate of worker bees, drones, the queen,
99.12and developing young bees living together as a family unit in a hive or other dwelling.

99.13    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
99.14to read:
99.15    Subd. 11a. Hive. "Hive" means a frame hive, box hive, box, barrel, log gum, skep,
99.16or any other receptacle or container, natural or artificial, or any part of one, which is
99.17used as domicile for bees.

99.18    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
99.19to read:
99.20    Subd. 20a. Pollinator. "Pollinator" means an insect that pollinates flowers.

99.21    Sec. 8. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision
99.22to read:
99.23    Subd. 4. Pollinators. The commissioner may take enforcement action under
99.24chapter 18D for a violation of this chapter, or any rule adopted under this chapter,
99.25that results in harm to pollinators, including but not limited to applying a product in
99.26a manner inconsistent with the product's label or labeling and resulting in pollinator
99.27death or willfully applying pesticide in a manner inconsistent with the product label or
99.28labeling. The commissioner must deposit any penalty collected under this subdivision in
99.29the pesticide regulatory account in section 18B.05.

100.1    Sec. 9. Minnesota Statutes 2012, section 18B.04, is amended to read:
100.218B.04 PESTICIDE IMPACT ON ENVIRONMENT.
100.3(a) The commissioner shall:
100.4(1) determine the impact of pesticides on the environment, including the impacts on
100.5surface water and groundwater in this state;
100.6(2) develop best management practices involving pesticide distribution, storage,
100.7handling, use, and disposal; and
100.8(3) cooperate with and assist other state agencies and local governments to protect
100.9public health, pollinators, and the environment from harmful exposure to pesticides.
100.10(b) The commissioner may assemble a pollinator emergency response team of
100.11experts under section 16C.10, subdivision 2, to consult in the investigation of pollinator
100.12deaths or illnesses. The pollinator emergency response team may include representatives
100.13from local, state, and federal agencies; academia, including the University of Minnesota;
100.14or other professionals as deemed necessary by the commissioner.

100.15    Sec. 10. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE;
100.16APPROPRIATION.
100.17    Subdivision 1. Compensation required. (a) The commissioner of agriculture must
100.18compensate a person for an acute pesticide poisoning resulting in the death of bees or loss
100.19of bee colonies owned by the person, provided:
100.20(1) the person who applied the pesticide cannot be determined;
100.21(2) the person who applied the pesticide did so in a manner consistent with the
100.22pesticide product's label or labeling; or
100.23(3) the person who applied the pesticide did so in a manner inconsistent with the
100.24pesticide product's label or labeling.
100.25(b) Except as provided in this section, the bee owner is entitled to the fair market
100.26value of the dead bees and bee colonies losses as determined by the commissioner upon
100.27recommendation by academic experts and bee keepers. In any fiscal year, a bee owner
100.28must not be compensated for a claim that is less than $100 or compensated more than
100.29$20,000 for all eligible claims.
100.30(c) To be eligible for compensation under this section, the bee owner must be
100.31registered with a commonly utilized pesticide registry program, as designated by the
100.32commissioner of agriculture.
100.33    Subd. 2. Applicator responsible. In the event a person applies a pesticide in a
100.34manner inconsistent with the pesticide product's label or labeling requirements as approved
100.35by the commissioner and is determined to have caused the acute pesticide poisoning of bees,
101.1resulting in death or loss of a bee colony kept for commercial purposes, then the person so
101.2identified must bear the responsibility of restitution for the value of the bees to the owner.
101.3In these cases the commissioner must not provide compensation as provided in this section.
101.4    Subd. 3. Claim form. The bee owner must file a claim on forms provided by the
101.5commissioner and available on the Department of Agriculture's Web site.
101.6    Subd. 4. Determination. The commissioner must determine whether the death of
101.7the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the
101.8pesticide applicator can be determined, and whether the pesticide applicator applied the
101.9pesticide product in a manner consistent with the pesticide product's label or labeling.
101.10    Subd. 5. Payments; denial of compensation. (a) If the commissioner determines
101.11the bee death or loss of bee colony was caused by an acute pesticide poisoning and
101.12either the pesticide applicator cannot be determined or the pesticide applicator applied
101.13the pesticide product in a manner consistent with the pesticide product's label or labeling,
101.14the commissioner may award compensation from the pesticide regulatory account. If the
101.15pesticide applicator can be determined and the applicator applied the pesticide product
101.16in a manner inconsistent with the product's label or labeling, the commissioner may
101.17collect a penalty from the pesticide applicator sufficient to compensate the bee owner
101.18for the fair market value of the dead bees and bee colonies losses, and must award the
101.19money to the bee owner.
101.20(b) If the commissioner denies compensation claimed by a bee owner under this
101.21section, the commissioner must issue a written decision based upon the available evidence.
101.22The decision must include specification of the facts upon which the decision is based and
101.23the conclusions on the material issues of the claim. The commissioner must mail a copy
101.24of the decision to the bee owner.
101.25(c) A decision to deny compensation claimed under this section is not subject to the
101.26contested case review procedures of chapter 14, but may be reviewed upon a trial de
101.27novo in a court in the county where the loss occurred. The decision of the court may be
101.28appealed as in other civil cases. Review in court may be obtained by filing a petition for
101.29review with the administrator of the court within 60 days following receipt of a decision
101.30under this section. Upon the filing of a petition, the administrator must mail a copy to the
101.31commissioner and set a time for hearing within 90 days of the filing.
101.32    Subd. 6. Deduction from payment. The commissioner must reduce payments
101.33made under this section by any compensation received by the bee owner for dead bees and
101.34bee colonies losses as proceeds from an insurance policy or from another source.
102.1    Subd. 7. Appropriation. The amount necessary to pay claims under this section,
102.2not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory
102.3account in section 18B.05.

102.4    Sec. 11. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
102.5    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort
102.6Snelling upper bluff, with the exception of payment for costs of the water line as described
102.7in subdivision 6, shall be deposited in the natural resources fund and credited to a state
102.8park account. Interest earned on the money in the account accrues to the account.
102.9(b) Revenue and expenses from the upper bluff shall be tracked separately within
102.10the account. Money in the account derived from the leasing or operation of the property
102.11described in subdivision 1 may be is appropriated annually to the commissioner for
102.12the payment of expenses attributable to the leasing, development, and operation of the
102.13property described in subdivision 1, including, but not limited to, the maintenance, repair,
102.14and rehabilitation of historic buildings and landscapes.

102.15    Sec. 12. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
102.16    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate
102.17and maintain the Minnesota Zoological Garden at a site in Dakota County legally
102.18described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist
102.19of adequate facilities and structures for the collection, habitation, preservation, care,
102.20exhibition, examination or study of wild and domestic animals, including, but not limited
102.21to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board
102.22may provide such lands, buildings and equipment as it deems necessary for parking,
102.23transportation, entertainment, education or instruction of the public in connection with
102.24such Zoological Garden. The Zoological Garden is the official pollinator bank for the state
102.25of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to
102.26avert the extinction of pollinator species by cultivating insurance breeding populations.

102.27    Sec. 13. [87A.10] SHOOTING SPORTS FACILITY GRANTS.
102.28The commissioner of natural resources shall administer a program to provide
102.29cost-share grants to local recreational shooting clubs for up to 50 percent of the costs
102.30of developing or rehabilitating shooting sports facilities for public use. A facility
102.31rehabilitated or developed with a grant under this section must be open to the general
102.32public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner
102.33shall give preference to projects that will provide the most opportunities for youth.

103.1    Sec. 14. [92.83] CONDEMNATION OF SCHOOL TRUST LAND.
103.2    Subdivision 1. Purpose. The purpose of this section is to extinguish the school trust
103.3interest in school trust lands where long-term economic return is prohibited by designation
103.4or policy while producing economic benefits for Minnesota's public schools. For the
103.5purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the
103.6sale of school trust lands to a public sale, the commissioner of natural resources shall
103.7acquire school trust lands through condemnation, as provided in subdivision 2.
103.8    Subd. 2. Commencement of condemnation proceedings. When the commissioner
103.9of natural resources has determined sufficient money is available to acquire any of the
103.10lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner
103.11shall proceed to extinguish the school trust interest by condemnation action. When
103.12requested by the commissioner, the attorney general shall commence condemnation of
103.13the identified school trust lands.
103.14    Subd. 3. Payment. The portion of the payment of the award and judgment that
103.15is for the value of the land shall be deposited into the permanent school fund. The
103.16remainder of the award and judgment payment shall first be remitted for reimbursement
103.17to the accounts from which expenses were paid, with any remainder deposited into the
103.18permanent school fund.

103.19    Sec. 15. Minnesota Statutes 2012, section 93.22, subdivision 1, is amended to read:
103.20    Subdivision 1. Generally. (a) All payments under sections 93.14 to 93.285 shall be
103.21made to the Department of Natural Resources and shall be credited according to this section.
103.22    (b) Twenty Ten percent of all payments under sections 93.14 to 93.285 shall be
103.23credited to the minerals management account in the natural resources fund as costs for
103.24the administration and management of state mineral resources by the commissioner of
103.25natural resources.
103.26    (c) The remainder of the payments shall be credited as follows:
103.27    (1) if the lands or minerals and mineral rights covered by a lease are held by the state
103.28by virtue of an act of Congress, payments made under the lease shall be credited to the
103.29permanent fund of the class of land to which the leased premises belong;
103.30    (2) if a lease covers the bed of navigable waters, payments made under the lease
103.31shall be credited to the permanent school fund of the state;
103.32    (3) if the lands or minerals and mineral rights covered by a lease are held by the state
103.33in trust for the taxing districts, payments made under the lease shall be distributed annually
103.34on the first day of September to the respective counties in which the lands lie, to be
104.1apportioned among the taxing districts interested therein as follows: county, three-ninths;
104.2town or city, two-ninths; and school district, four-ninths;
104.3    (4) if the lands or mineral rights covered by a lease became the absolute property of
104.4the state under the provisions of chapter 84A, payments made under the lease shall be
104.5distributed as follows: county containing the land from which the income was derived,
104.6five-eighths; and general fund of the state, three-eighths; and
104.7    (5) except as provided under this section and except where the disposition of
104.8payments may be otherwise directed by law, payments made under a lease shall be paid
104.9into the general fund of the state.

104.10    Sec. 16. Minnesota Statutes 2012, section 93.2236, is amended to read:
104.1193.2236 MINERALS MANAGEMENT ACCOUNT.
104.12(a) The minerals management account is created as an account in the natural
104.13resources fund. Interest earned on money in the account accrues to the account. Money in
104.14the account may be spent or distributed only as provided in paragraphs (b) and (c).
104.15(b) If the balance in the minerals management account exceeds $3,000,000
104.16 $1,500,000 on June 30, the amount exceeding $3,000,000 $1,500,000 must be distributed
104.17to the permanent school fund, the permanent university fund, and taxing districts as
104.18provided in section 93.22, subdivision 1, paragraph (c). The amount distributed to each
104.19fund must be in the same proportion as the total mineral lease revenue received in the
104.20previous biennium from school trust lands, university lands, and lands held by the state in
104.21trust for taxing districts.
104.22(c) Subject to appropriation by the legislature, money in the minerals management
104.23account may be spent by the commissioner of natural resources for mineral resource
104.24management and projects to enhance future mineral income and promote new mineral
104.25resource opportunities.

104.26    Sec. 17. Minnesota Statutes 2012, section 103G.251, is amended to read:
104.27103G.251 INVESTIGATION OF ACTIVITIES WITHOUT PERMIT
104.28 AFFECTING WATERS OF THE STATE.
104.29    Subdivision 1. Investigations. If the commissioner determines that an investigation
104.30is in the public interest, the commissioner may investigate and monitor activities being
104.31conducted with or without a permit that may affect waters of the state.
104.32    Subd. 2. Findings and order. (a) With or without a public hearing, the
104.33commissioner may make findings and issue orders related to activities being conducted
104.34without a permit that affect waters of the state as otherwise authorized under this chapter.
105.1(b) A copy of the findings and order must be served on the person to whom the
105.2order is issued.
105.3(c) If the commissioner issues the findings and order without a hearing, the person to
105.4whom the order is issued may file a demand for a hearing with the commissioner. The
105.5demand for a hearing must be accompanied by the bond as provided in section 103G.311,
105.6subdivision 6
, and the hearing must be held in the same manner and with the same
105.7requirements as a hearing held under section 103G.311, subdivision 5. The demand for
105.8a hearing and bond must be filed by 30 days after the person is served with a copy of
105.9the commissioner's order.
105.10(d) The hearing must be conducted as a contested case hearing under chapter 14.
105.11(e) If the person to whom the order is addressed does not demand a hearing or
105.12demands a hearing but fails to file the required bond:
105.13(1) the commissioner's order becomes final at the end of 30 days after the person is
105.14served with the order; and
105.15(2) the person may not appeal the order.
105.16(f) An order of the commissioner may be recorded or filed by the commissioner in
105.17the office of the county recorder or registrar of titles, as appropriate, in the county where
105.18the real property is located as a deed restriction on the property that runs with the land
105.19and is binding on the owners, successors, and assigns until the conditions of the order
105.20are met or the order is rescinded.

105.21    Sec. 18. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:
105.22    Subd. 5. Prohibition on once-through water use permits. (a) Except as provided
105.23in paragraph (c), the commissioner may not, after December 31, 1990, issue a water
105.24use permit to increase the volume of appropriation from a groundwater source for a
105.25once-through cooling system using in excess of 5,000,000 gallons annually.
105.26(b) Except as provided in paragraph (c), once-through system water use permits
105.27using in excess of 5,000,000 gallons annually, must be terminated by the commissioner
105.28by the end of their design life but not later than December 31, 2010, unless the discharge
105.29is into a public water basin within a nature preserve approved by the commissioner and
105.30established prior to January 1, 2001. Existing once-through systems must not be expanded
105.31and are required to convert to water efficient alternatives within the design life of existing
105.32equipment.
105.33(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of
105.34the commissioners of health and the Pollution Control Agency, may issue once-through
105.35system water use permits on an annual basis for aquifer storage and recovery systems that
106.1return all once-through system water to the source aquifer. Water use permit processing
106.2fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph,
106.3including any reuse of water returned to the source aquifer.
106.4EFFECTIVE DATE.This section is effective January 1, 2015.

106.5    Sec. 19. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
106.6    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
106.7(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in
106.8accordance with the schedule of fees in this subdivision for each water use permit in force
106.9at any time during the year. Fees collected under this paragraph are credited to the water
106.10management account in the natural resources fund. The schedule is as follows, with the
106.11stated fee in each clause applied to the total amount appropriated:
106.12    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
106.13    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
106.14than 100,000,000 gallons per year;
106.15    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
106.16than 150,000,000 gallons per year;
106.17    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
106.18less than 200,000,000 gallons per year;
106.19    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
106.20than 250,000,000 gallons per year;
106.21    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
106.22less than 300,000,000 gallons per year;
106.23    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
106.24than 350,000,000 gallons per year;
106.25    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
106.26less than 400,000,000 gallons per year;
106.27    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
106.28than 450,000,000 gallons per year;
106.29    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
106.30less than 500,000,000 gallons per year; and
106.31    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
106.32    (b) For once-through cooling systems, a water use processing fee must be prescribed
106.33by the commissioner in accordance with the following schedule of fees for each water use
106.34permit in force at any time during the year:
106.35    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
107.1    (2) for all other users, $420 per 1,000,000 gallons.
107.2    (c) The fee is payable based on the amount of water appropriated during the year
107.3and, except as provided in paragraph (f), the minimum fee is $100.
107.4    (d) For water use processing fees other than once-through cooling systems:
107.5    (1) the fee for a city of the first class may not exceed $250,000 per year;
107.6    (2) the fee for other entities for any permitted use may not exceed:
107.7    (i) $60,000 per year for an entity holding three or fewer permits;
107.8    (ii) $90,000 per year for an entity holding four or five permits; or
107.9    (iii) $300,000 per year for an entity holding more than five permits;
107.10    (3) the fee for agricultural irrigation may not exceed $750 per year;
107.11    (4) the fee for a municipality that furnishes electric service and cogenerates steam
107.12for home heating may not exceed $10,000 for its permit for water use related to the
107.13cogeneration of electricity and steam; and
107.14    (5) no fee is required for a project involving the appropriation of surface water to
107.15prevent flood damage or to remove flood waters during a period of flooding, as determined
107.16by the commissioner.
107.17    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
107.18 ten percent per month calculated from the original due date must be imposed on the unpaid
107.19balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
107.20may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
107.21governmental agency holding a water appropriation permit.
107.22    (f) The minimum water use processing fee for a permit issued for irrigation of
107.23agricultural land is $20 for years in which:
107.24    (1) there is no appropriation of water under the permit; or
107.25    (2) the permit is suspended for more than seven consecutive days between May 1
107.26and October 1.
107.27(g) The commissioner shall waive the water use permit fee for installations and
107.28projects that use storm water runoff or where public entities are diverting water to treat a
107.29water quality issue and returning the water to its source without using the water for any
107.30other purpose, unless the commissioner determines that the proposed use adversely affects
107.31surface water or groundwater to a significant extent.
107.32    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in
107.33paragraph (a) shall be applied to the volume of water used in each of the months of June,
107.34July, and August that exceeds the volume of water used in January for municipal water
107.35use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
108.1with more than one permit shall be determined based on the total appropriations from all
108.2permits that supply a common distribution system.

108.3    Sec. 20. Minnesota Statutes 2012, section 103G.281, is amended by adding a
108.4subdivision to read:
108.5    Subd. 4. Penalty for noncompliant reporting. The commissioner may assess
108.6penalties for noncompliant reporting of water use information as provided in this section.
108.7The penalty is ten percent of the annual water use permit processing fee.

108.8    Sec. 21. [103G.299] ADMINISTRATIVE PENALTIES.
108.9    Subdivision 1. Authority to issue penalty orders. (a) As provided in paragraph
108.10(b), the commissioner may issue an order requiring violations to be corrected and
108.11administratively assessing monetary penalties for violations of sections 103G.271 and
108.12103G.275, and any rules adopted under those sections.
108.13(b) An order under this section may be issued to a person for water appropriation
108.14activities without a required permit.
108.15(c) The order must be issued as provided in this section and in accordance with
108.16the plan prepared under subdivision 12.
108.17    Subd. 2. Amount of penalty; considerations. (a) The commissioner may issue
108.18orders assessing administrative penalties based on potential for harm and deviation from
108.19compliance. For a violation that presents: (1) a minor potential for harm and deviation
108.20from compliance, the penalty will be no more than $1,000; (2) a moderate potential for
108.21harm and deviation from compliance, the penalty will be no more than $10,000; and (3)
108.22a severe potential for harm and deviation from compliance, the penalty will be no more
108.23than $20,000.
108.24(b) In determining the amount of a penalty the commissioner may consider:
108.25(1) the gravity of the violation, including potential for, or real, damage to the public
108.26interest or natural resources of the state;
108.27(2) the history of past violations;
108.28(3) the number of violations;
108.29(4) the economic benefit gained by the person by allowing or committing the
108.30violation based on data from local or state bureaus or educational institutions; and
108.31(5) other factors as justice may require, if the commissioner specifically identifies
108.32the additional factors in the commissioner's order.
109.1(c) For a violation after an initial violation, including a continuation of the initial
109.2violation, the commissioner must, in determining the amount of a penalty, consider the
109.3factors in paragraph (b) and the:
109.4(1) similarity of the most recent previous violation and the violation to be penalized;
109.5(2) time elapsed since the last violation;
109.6(3) number of previous violations; and
109.7(4) response of the person to the most recent previous violation identified.
109.8    Subd. 3. Contents of order. An order assessing an administrative penalty under
109.9this section must include:
109.10(1) a concise statement of the facts alleged to constitute a violation;
109.11(2) a reference to the section of the statute, rule, order, or term or condition of
109.12a permit that has been violated;
109.13(3) a statement of the amount of the administrative penalty to be imposed and the
109.14factors upon which the penalty is based; and
109.15(4) a statement of the person's right to review of the order.
109.16    Subd. 4. Corrective order. (a) The commissioner may issue an order assessing a
109.17penalty and requiring the violations cited in the order to be corrected within a time period
109.18specified by the commissioner.
109.19(b) The person to whom the order was issued must provide information to the
109.20commissioner before the 31st day after the order was received demonstrating that the
109.21violation has been corrected or that appropriate steps toward correcting the violation
109.22have been taken.
109.23(c) The commissioner must determine whether the violation has been corrected and
109.24notify the person subject to the order of the commissioner's determination.
109.25    Subd. 5. Penalty. (a) Unless the person requests review of the order under
109.26subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:
109.27(1) on the 31st day after the order was received, if the person subject to the order
109.28fails to provide information to the commissioner showing that the violation has been
109.29corrected or that appropriate steps have been taken toward correcting the violation; or
109.30(2) on the 20th day after the person receives the commissioner's determination under
109.31subdivision 4, paragraph (c), if the person subject to the order has provided information
109.32to the commissioner that the commissioner determines is not sufficient to show that the
109.33violation has been corrected or that appropriate steps have been taken toward correcting
109.34the violation.
109.35(b) The penalty is due by 31 days after the order was received, unless review of the
109.36order under subdivision 6 or 7 has been sought.
110.1(c) Interest at the rate established in section 549.09 begins to accrue on penalties
110.2under this subdivision on the 31st day after the order with the penalty was received.
110.3    Subd. 6. Expedited administrative hearing. (a) Within 30 days after receiving
110.4an order or within 20 days after receiving notice that the commissioner has determined
110.5that a violation has not been corrected or appropriate steps have not been taken, the
110.6person subject to an order under this section may request an expedited hearing, using
110.7the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the
110.8commissioner's determination. The hearing request must specifically state the reasons
110.9for seeking review of the order. The person to whom the order is directed and the
110.10commissioner are the parties to the expedited hearing. The commissioner must notify the
110.11person to whom the order is directed of the time and place of the hearing at least 20 days
110.12before the hearing. The expedited hearing must be held within 30 days after a request for
110.13hearing has been filed with the commissioner unless the parties agree to a later date.
110.14(b) All written arguments must be submitted within ten days following the close of
110.15the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to
110.161400.8612, as modified by this subdivision.
110.17(c) The administrative law judge must issue a report making recommendations about
110.18the commissioner's action to the commissioner within 30 days following the close of the
110.19record. The administrative law judge may not recommend a change in the amount of the
110.20proposed penalty unless the administrative law judge determines that, based on the factors
110.21in subdivision 2, the amount of the penalty is unreasonable.
110.22(d) If the administrative law judge makes a finding that the hearing was requested
110.23solely for purposes of delay or that the hearing request was frivolous, the commissioner
110.24may add to the amount of the penalty the costs charged to the department by the Office of
110.25Administrative Hearings for the hearing.
110.26(e) If a hearing has been held, the commissioner may not issue a final order until at
110.27least five days after receipt of the report of the administrative law judge. The person to
110.28whom an order is issued may, within those five days, comment to the commissioner on the
110.29recommendations, and the commissioner must consider the comments. The final order
110.30may be appealed in the manner provided in sections 14.63 to 14.69.
110.31(f) If a hearing has been held and a final order issued by the commissioner, the
110.32penalty must be paid by 30 days after the date the final order is received unless review of
110.33the final order is requested under sections 14.63 to 14.69. If review is not requested or the
110.34order is reviewed and upheld, the amount due is the penalty, together with interest accruing
110.35from 31 days after the original order was received at the rate established in section 549.09.
111.1    Subd. 7. Mediation. In addition to review under subdivision 6, the commissioner
111.2may enter into mediation concerning an order issued under this section if the commissioner
111.3and the person to whom the order is issued both agree to mediation.
111.4    Subd. 8. Penalties due and payable. The commissioner may enforce penalties that
111.5are due and payable under this section in any manner provided by law for the collection
111.6of debts.
111.7    Subd. 9. Revocation and suspension of permit. If a person fails to pay a penalty
111.8owed under this section, the commissioner has grounds to revoke a permit or to refuse
111.9to amend a permit or issue a new permit.
111.10    Subd. 10. Cumulative remedy. The authority of the commissioner to issue a
111.11corrective order assessing penalties is in addition to other remedies available under statutory
111.12or common law, except that the state may not seek civil penalties under any other provision
111.13of law for the violations covered by the administrative penalty order. The payment of a
111.14penalty does not preclude the use of other enforcement provisions, under which penalties
111.15are not assessed, in connection with the violation for which the penalty was assessed.
111.16    Subd. 11. Deposit of fees. Fees collected under this section must be credited to the
111.17water management account in the natural resources fund.
111.18    Subd. 12. Plan for use of administrative penalties. The commissioner must
111.19prepare a plan for using the administrative penalty authority in this section. The plan must
111.20include explanations for how the commissioner will determine whether violations are
111.21minor, moderate, or severe. The commissioner must provide a 30-day period for public
111.22comment on the plan. The plan must be finalized within six months after the effective
111.23date of this section.

111.24    Sec. 22. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:
111.25116V.03 APPROPRIATION.
111.26$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the
111.27general fund to the commissioner of revenue for transfer to the agricultural project
111.28utilization account in the special revenue fund for the Agricultural Utilization Research
111.29Institute established under section 116V.01.

111.30    Sec. 23. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by
111.31Laws 2009, chapter 37, article 1, section 61, is amended to read:
111.32
Subd. 7.Fish and Wildlife Management
123,000
119,000
112.1
Appropriations by Fund
112.2
General
-0-
(427,000)
112.3
Game and Fish
123,000
546,000
112.4$329,000 in 2009 is a reduction for fish and
112.5wildlife management.
112.6$46,000 in 2009 is a reduction in the
112.7appropriation for the Minnesota Shooting
112.8Sports Education Center.
112.9$52,000 in 2009 is a reduction for licensing.
112.10$123,000 in 2008 and $246,000 in 2009 are
112.11from the game and fish fund to implement
112.12fish virus surveillance, prepare infrastructure
112.13to handle possible outbreaks, and implement
112.14control procedures for highest risk waters
112.15and fish production operations. This is a
112.16onetime appropriation.
112.17Notwithstanding Minnesota Statutes, section
112.18297A.94 , paragraph (e), $300,000 in 2009
112.19is from the second year appropriation
112.20in Laws 2007, chapter 57, article 1,
112.21section 4, subdivision 7, from the heritage
112.22enhancement account in the game and fish
112.23fund for shooting sports facilities and hunter
112.24education. Of this amount, $200,000 is to
112.25study, predesign, and design a shooting sports
112.26facility in the seven-county metropolitan
112.27area and to establish basic hunter education,
112.28firearms safety, and archery ranges on public
112.29land, and $100,000 is for a grant to the Itasca
112.30County Gun Club for shooting sports facility
112.31improvements. This is available onetime
112.32only and is available until expended.
112.33$300,000 in 2009 is appropriated from the
112.34game and fish fund for only activities that
113.1improve, enhance, or protect fish and wildlife
113.2resources. This is a onetime appropriation.

113.3    Sec. 24. Laws 2013, chapter 114, article 4, section 47, is amended by adding an
113.4effective date to read:
113.5EFFECTIVE DATE.This section is effective June 1, 2013.
113.6EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.

113.7    Sec. 25. BEE VALUATION PROTOCOL REQUIRED.
113.8No later than January 1, 2015, the commissioner of agriculture must report to
113.9the house of representatives and senate committees with jurisdiction over agriculture
113.10finance the protocol that the commissioner developed, in consultation with experts, for
113.11determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for
113.12purposes of compensation under Minnesota Statutes, section 18B.055.

113.13ARTICLE 10
113.14ECONOMIC DEVELOPMENT AND COMMERCE

113.15
Section 1. SUMMARY OF APPROPRIATIONS.
113.16The amounts shown in this section summarize direct appropriations, by fund, made
113.17in this article.
113.18
2014
2015
Total
113.19
General
$
(350,000)
$
17,192,000
$
16,842,000
113.20
Workforce Development
-0-
2,392,000
2,392,000
113.21
Total
$
(350,000)
$
19,584,000
$
19,234,000

113.22
Sec. 2. APPROPRIATIONS.
113.23The sums shown in the columns marked "Appropriations" are added to or, if shown
113.24in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, to the
113.25agencies and for the purposes specified in this article. The appropriations are from the
113.26general fund, or another named fund, and are available for the fiscal years indicated for
113.27each purpose. The figures "2014" and "2015" used in this article mean that the addition to
113.28the appropriation listed under them is available for the fiscal year ending June 30, 2014, or
113.29June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June
113.3030, 2014, are effective the day following final enactment.
114.1
APPROPRIATIONS
114.2
Available for the Year
114.3
Ending June 30
114.4
2014
2015

114.5
114.6
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
114.7
Subdivision 1.Total Appropriation
$
-0-
$
16,259,000
114.8
Appropriations by Fund
114.9
General
-0-
13,867,000
114.10
114.11
Workforce
Development
-0-
2,392,000
114.12The amounts that may be spent for each
114.13purpose are specified in the following
114.14subdivisions.
114.15
114.16
Subd. 2.Business and Community
Development
-0-
12,950,000
114.17$2,400,000 in 2015 is for grants to the six
114.18Minnesota regional initiative foundations for
114.19business revolving loans or other lending
114.20programs. This is a onetime appropriation
114.21and is available until expended.
114.22$4,500,000 in 2015 is for the greater
114.23Minnesota business development public
114.24infrastructure grant program under Minnesota
114.25Statutes, section 116J.431, for grants to
114.26design, construct, prepare, and improve
114.27infrastructure for economic development
114.28for the cities of Thief River Falls, Eveleth,
114.29Alexandria, Virginia, and Hibbing. This is a
114.30onetime appropriation and is available until
114.31expended.
114.32$450,000 in 2015 is for grants to small
114.33business development centers under
114.34Minnesota Statutes, section 116J.68. This is
114.35a onetime appropriation and is available until
114.36expended.
115.1$450,000 in 2015 is for a grant to the
115.2neighborhood development center for
115.3the small business incubators program.
115.4Of this amount, $200,000 is for capital
115.5improvements to existing small businesses;
115.6$150,000 is for technical assistance to
115.7business entities operating within a small
115.8business incubator; and $100,000 is for the
115.9creation and operation of a small business
115.10incubator revolving loan fund. This is a
115.11onetime appropriation and is available until
115.12expended.
115.13$150,000 in 2015 is for a grant to the city
115.14of Proctor to design and construct a sand
115.15and salt storage facility to prevent runoff
115.16into surface water. This appropriation is not
115.17available until the commissioner determines
115.18that at least an equal amount is committed to
115.19the project from nonstate sources.
115.20$5,000,000 in 2015 is for the Minnesota
115.21minerals 21st century fund under Minnesota
115.22Statutes, section 116J.423. This is a onetime
115.23appropriation.
115.24
Subd. 3.Workforce Development
-0-
1,200,000
115.25$350,000 in 2015 is from the workforce
115.26development fund for a grant to the Northwest
115.27Indian Opportunities Industrialization
115.28Center and may be used for a green jobs
115.29deconstruction pilot program. This is a
115.30onetime appropriation and is available until
115.31expended.
115.32$250,000 in 2015 is from the workforce
115.33development fund for a grant to the Northeast
115.34Minnesota Office of Job Training. This is a
116.1onetime appropriation and is available until
116.2expended.
116.3$600,000 in 2015 is from the workforce
116.4development fund for a grant to the Twin
116.5Cities RISE! to provide job training. This is
116.6a onetime appropriation and is available until
116.7expended.
116.8
Subd. 4.General Support Services
-0-
500,000
116.9$500,000 in 2015 is for establishing
116.10and operating the interagency Olmstead
116.11Implementation Office. The base
116.12appropriation for the interagency office in
116.13fiscal year 2016 and later is $1,000,000 each
116.14year.
116.15
Subd. 5.Vocational Rehabilitation
-0-
1,609,000
116.16
Appropriations by Fund
116.17
General
-0-
417,000
116.18
116.19
Workforce
Development
-0-
1,192,000
116.20$417,000 in 2015 from the general fund
116.21and $500,000 in 2015 from the workforce
116.22development fund are for rate increases to
116.23providers of extended employment services
116.24for persons with severe disabilities under
116.25Minnesota Statutes, section 268A.15. This
116.26is a onetime appropriation and is available
116.27until expended.
116.28$692,000 in 2015 from the workforce
116.29development fund is for grants to the eight
116.30Minnesota Centers for Independent Living
116.31for employment and job training support
116.32services. This is a onetime appropriation and
116.33is available until expended.

116.34
Sec. 4. HOUSING FINANCE AGENCY
$
-0-
$
3,100,000
117.1$3,100,000 in 2015 is for the economic
117.2development and housing challenge program
117.3under Minnesota Statutes, section 462A.33,
117.4for targeted housing for rural comprehensive
117.5or technical colleges that offer natural
117.6resources or aviation maintenance programs
117.7and are located in communities or regions
117.8with low housing vacancy rates. This is a
117.9onetime appropriation and is available until
117.10expended.

117.11
117.12
Sec. 5. BUREAU OF MEDIATION
SERVICES
$
-0-
$
125,000
117.13$125,000 in 2015 is for the Public
117.14Employment Relations Board.

117.15
Sec. 6. EXPLORE MINNESOTA TOURISM
$
-0-
$
100,000
117.16$100,000 in 2015 is for a grant to the Mille
117.17Lacs Tourism Council to enhance marketing
117.18activities related to tourism promotion in
117.19the Mille Lacs Lake area. This is a onetime
117.20appropriation.

117.21
Sec. 7. DEPARTMENT OF COMMERCE
$
(350,000)
$
-0-
117.22$350,000 in 2014 is a onetime reduction to
117.23the appropriation for the gold bullion dealer
117.24registration program.

117.25    Sec. 8. TRANSFER.
117.26By June 30, 2015, the commissioner of management and budget shall transfer
117.27$9,000,000 in assets of the workers' compensation assigned risk plan created under
117.28Minnesota Statutes, section 79.252, to the general fund.

117.29    Sec. 9. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:
117.30
117.31
Subd. 2.Business and Community
Development
53,642,000
45,407,000
118.1
Appropriations by Fund
118.2
General
52,942,000
44,707,000
118.3
Remediation
700,000
700,000
118.4(a)(1) $15,000,000 each year is for
118.5the Minnesota investment fund under
118.6Minnesota Statutes, section 116J.8731. This
118.7appropriation is available until spent.
118.8(2) Of the amount available under clause
118.9(1), up to $3,000,000 in fiscal year 2014
118.10is for a loan to facilitate initial investment
118.11in the purchase and operation of a
118.12biopharmaceutical manufacturing facility.
118.13This loan is not subject to the loan limitations
118.14under Minnesota Statutes, section 116J.8731,
118.15and shall be forgiven by the commissioner
118.16of employment and economic development
118.17upon verification of meeting performance
118.18goals. Purchases related to and for the
118.19purposes of this loan award must be made
118.20between January 1, 2013, and June 30, 2015.
118.21The amount under this clause is available
118.22until expended.
118.23(3) Of the amount available under clause (1),
118.24up to $2,000,000 is available for subsequent
118.25investment in the biopharmaceutical facility
118.26project in clause (2). The amount under this
118.27clause is available until expended. Loan
118.28thresholds under clause (2) must be achieved
118.29and maintained to receive funding. Loans
118.30are not subject to the loan limitations under
118.31Minnesota Statutes, section 116J.8731, and
118.32shall be forgiven by the commissioner of
118.33employment and economic development
118.34upon verification of meeting performance
118.35goals. Purchases related to and for the
119.1purposes of loan awards must be made during
119.2the biennium the loan was received.
119.3(4) Notwithstanding any law to the contrary,
119.4the biopharmaceutical manufacturing facility
119.5in this paragraph shall be deemed eligible
119.6for the Minnesota job creation fund under
119.7Minnesota Statutes, section 116J.8748,
119.8by having at least $25,000,000 in capital
119.9investment and 190 retained employees.
119.10(5) For purposes of clauses (1) to (4),
119.11"biopharmaceutical" and "biologics" are
119.12interchangeable and mean medical drugs
119.13or medicinal preparations produced using
119.14technology that uses biological systems,
119.15living organisms, or derivatives of living
119.16organisms, to make or modify products or
119.17processes for specific use. The medical drugs
119.18or medicinal preparations include but are not
119.19limited to proteins, antibodies, nucleic acids,
119.20and vaccines.
119.21(b) $12,000,000 each year is for the
119.22Minnesota job creation fund under Minnesota
119.23Statutes, section 116J.8748. Of this amount,
119.24the commissioner of employment and
119.25economic development may use up to three
119.26percent for administrative expenses. This
119.27appropriation is available until spent. The
119.28base funding for this program shall be
119.29$12,500,000 each year in the fiscal year
119.302016-2017 biennium.
119.31(c) $1,272,000 each year is from the
119.32general fund for contaminated site cleanup
119.33and development grants under Minnesota
119.34Statutes, sections 116J.551 to 116J.558. This
119.35appropriation is available until expended.
120.1(d) $700,000 each year is from the
120.2remediation fund for contaminated site
120.3cleanup and development grants under
120.4Minnesota Statutes, sections 116J.551 to
120.5116J.558 . This appropriation is available
120.6until expended.
120.7(e) $1,425,000 the first year and $1,425,000
120.8the second year are from the general fund for
120.9the business development competitive grant
120.10program. Of this amount, up to five percent
120.11is for administration and monitoring of the
120.12business development competitive grant
120.13program. All grant awards shall be for two
120.14consecutive years. Grants shall be awarded
120.15in the first year.
120.16(f) $4,195,000 each year is from the general
120.17fund for the Minnesota job skills partnership
120.18program under Minnesota Statutes, sections
120.19116L.01 to 116L.17. If the appropriation for
120.20either year is insufficient, the appropriation
120.21for the other year is available. This
120.22appropriation is available until spent.
120.23(g) $6,000,000 the first year is from the
120.24general fund for the redevelopment program
120.25under Minnesota Statutes, section 116J.571.
120.26This is a onetime appropriation and is
120.27available until spent.
120.28(h) $12,000 each year is from the general
120.29fund for a grant to the Upper Minnesota Film
120.30Office.
120.31(i) $325,000 each year is from the general
120.32fund for the Minnesota Film and TV Board.
120.33The appropriation in each year is available
120.34only upon receipt by the board of $1 in
120.35matching contributions of money or in-kind
121.1contributions from nonstate sources for every
121.2$3 provided by this appropriation, except that
121.3each year up to $50,000 is available on July
121.41 even if the required matching contribution
121.5has not been received by that date.
121.6(j) $100,000 each year is for a grant to the
121.7Northern Lights International Music Festival.
121.8(k) $5,000,000 each year is from the general
121.9fund for a grant to the Minnesota Film
121.10and TV Board for the film production jobs
121.11program under Minnesota Statutes, section
121.12116U.26 . This appropriation is available
121.13until expended. The base funding for this
121.14program shall be $1,500,000 each year in the
121.15fiscal year 2016-2017 biennium.
121.16(l) $375,000 each year is from the general
121.17fund for a grant to Enterprise Minnesota, Inc.,
121.18for the small business growth acceleration
121.19program under Minnesota Statutes, section
121.20116O.115 . This is a onetime appropriation.
121.21(m) $160,000 each year is from the general
121.22fund for a grant to develop and implement
121.23a southern and southwestern Minnesota
121.24initiative foundation collaborative pilot
121.25project. Funds available under this paragraph
121.26must be used to support and develop
121.27entrepreneurs in diverse populations in
121.28southern and southwestern Minnesota. This
121.29is a onetime appropriation and is available
121.30until expended.
121.31(n) $100,000 each year is from the general
121.32fund for the Center for Rural Policy
121.33and Development. This is a onetime
121.34appropriation.
122.1(o) $250,000 each year is from the general
122.2fund for the Broadband Development Office.
122.3(p) $250,000 the first year is from the
122.4general fund for a onetime grant to the St.
122.5Paul Planning and Economic Development
122.6Department for neighborhood stabilization
122.7use in NSP3.
122.8(q) $1,235,000 the first year is from the
122.9general fund for a onetime grant to a city
122.10of the second class that is designated as an
122.11economically depressed area by the United
122.12States Department of Commerce. The
122.13appropriation is for economic development,
122.14redevelopment, and job creation programs
122.15and projects. This appropriation is available
122.16until expended.
122.17(r) $875,000 each year is from the general
122.18fund for the Host Community Economic
122.19Development Program established in
122.20Minnesota Statutes, section 116J.548.
122.21(s) $750,000 the first year is from the general
122.22fund for a onetime grant to the city of Morris
122.23for loans or grants to agricultural processing
122.24facilities for energy efficiency improvements.
122.25Funds available under this section shall be
122.26used to increase conservation and promote
122.27energy efficiency through retrofitting existing
122.28systems and installing new systems to
122.29recover waste heat from industrial processes
122.30and reuse energy. This appropriation is not
122.31available until the commissioner determines
122.32that at least $1,250,000 a match of $750,000
122.33 is committed to the project from nonpublic
122.34sources. This appropriation is available until
122.35expended.
123.1EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

123.2    Sec. 10. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:
123.3
Subd. 6.Vocational Rehabilitation
27,691,000
27,691,000
123.4
Appropriations by Fund
123.5
General
20,861,000
20,861,000
123.6
123.7
Workforce
Development
6,830,000
6,830,000
123.8(a) $10,800,000 each year is from the general
123.9fund for the state's vocational rehabilitation
123.10program under Minnesota Statutes, chapter
123.11268A.
123.12(b) $2,261,000 each year is from the general
123.13fund for grants to centers for independent
123.14living under Minnesota Statutes, section
123.15268A.11 .
123.16(c) $5,745,000 each year from the general
123.17fund and $6,830,000 each year from the
123.18workforce development fund is for extended
123.19employment services for persons with
123.20severe disabilities under Minnesota Statutes,
123.21section 268A.15. The allocation of extended
123.22employment funds to Courage Center from
123.23July 1, 2012 to June 30, 2013 must be
123.24contracted to Allina Health systems from
123.25July 1, 2013 to June 30, 2014 2015 to provide
123.26extended employment services in accordance
123.27with Minnesota Rules, parts 3300.2005 to
123.283300.2055.
123.29(d) $2,055,000 each year is from the general
123.30fund for grants to programs that provide
123.31employment support services to persons with
123.32mental illness under Minnesota Statutes,
123.33sections 268A.13 and 268A.14. The base
123.34appropriation for this program is $1,555,000
124.1each year in the fiscal year 2016-2017
124.2biennium.

124.3    Sec. 11. ALTERNATIVE ENERGY PROJECTS.
124.4The amounts appropriated under Laws 2009, chapter 78, article 1, section 3,
124.5subdivision 2, as amended, may be used for grants or loans to manufacturers of bio-based
124.6products.

124.7    Sec. 12. MINNESOTA MINERALS 21ST CENTURY FUND TRANSFER.
124.8(a) If, on the basis of a November forecast of general fund revenues and
124.9expenditures, the commissioner of management and budget determines that there will be
124.10a positive unrestricted general fund balance at the close of the biennium and that the
124.11provisions of Minnesota Statutes, section 16A.152, subdivision 1b, paragraph (b), and
124.12subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer
124.13from the general fund to the Minnesota minerals 21st century fund under Minnesota
124.14Statutes, section 116J.423, an amount not to exceed 20 percent of the positive unrestricted
124.15general fund balance determined in the forecast. The total amount authorized under this
124.16section, for all transfers, must not exceed $19,100,000.
124.17(b) This section is repealed the day following the transfer in which the total amount
124.18transferred under this section to the Minnesota minerals 21st century fund is $19,100,000.
124.19EFFECTIVE DATE.This section is effective for November forecasts issued
124.20following final enactment.

124.21ARTICLE 11
124.22ECONOMIC DEVELOPMENT AND COMMERCE
124.23 FISCAL IMPLEMENTATION PROVISIONS

124.24    Section 1. Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to
124.25read:
124.26    Subd. 5. Grant limits. A Minnesota investment fund grant may not be approved
124.27for an amount in excess of $1,000,000. This limit covers all money paid to complete the
124.28same project, whether paid to one or more grant recipients and whether paid in one or
124.29more fiscal years. A local community or recognized Indian tribal government may retain
124.3020 percent, but not more than $100,000 The portion of a Minnesota investment fund
124.31grant that exceeds $100,000 must be repaid to the state when it is repaid to the local
124.32community or recognized Indian tribal government by the person or entity to which it
125.1was loaned by the local community or Indian tribal government. Money repaid to the
125.2state must be credited to a Minnesota investment revolving loan account in the state
125.3treasury. Funds in the account are appropriated to the commissioner and must be used
125.4in the same manner as are funds appropriated to the Minnesota investment fund. Funds
125.5repaid to the state through existing Minnesota investment fund agreements must be
125.6credited to the Minnesota investment revolving loan account effective July 1, 2005. A
125.7grant or loan may not be made to a person or entity for the operation or expansion of a
125.8casino or a store which is used solely or principally for retail sales. Persons or entities
125.9receiving grants or loans must pay each employee total compensation, including benefits
125.10not mandated by law, that on an annualized basis is equal to at least 110 percent of the
125.11federal poverty level for a family of four.

125.12    Sec. 2. Minnesota Statutes 2012, section 216B.1611, is amended by adding a
125.13subdivision to read:
125.14    Subd. 3a. Project information. (a) Beginning July 1, 2014, each electric utility
125.15shall request an applicant for interconnection of distributed renewable energy generation
125.16to provide the following information, in a format prescribed by the commissioner:
125.17(1) the nameplate capacity of the facility in the application;
125.18(2) the total preincentive installed cost of the generation system at the facility;
125.19(3) the energy source of the facility; and
125.20(4) the zip code in which the facility is to be located.
125.21(b) The commissioner shall develop or identify a system to collect and process
125.22the information under this subdivision from each utility, and make nonproject-specific
125.23data available to the public on a periodic basis as determined by the commissioner, and
125.24in a format determined by the commissioner. The commissioner may solicit proposals
125.25from outside parties to develop the system.
125.26(c) Electric utilities collecting and transferring data under this subdivision are not
125.27responsible for the accuracy, completeness, or quality of the information under this
125.28subdivision.
125.29(d) Any information under this subdivision is nonpublic, until it is made public by
125.30the commissioner as provided under paragraph (b) of this subdivision.
125.31EFFECTIVE DATE.This section is effective the day following final enactment.

125.32    Sec. 3. Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:
125.33    Subd. 1d. Technical assistance. (a) The commissioner shall evaluate energy
125.34conservation improvement programs on the basis of cost-effectiveness and the reliability
126.1of the technologies employed. The commissioner shall, by order, establish, maintain, and
126.2update energy-savings assumptions that must be used when filing energy conservation
126.3improvement programs. The commissioner shall establish an inventory of the most
126.4effective energy conservation programs, techniques, and technologies, and encourage all
126.5Minnesota utilities to implement them, where appropriate, in their service territories.
126.6The commissioner shall describe these programs in sufficient detail to provide a utility
126.7reasonable guidance concerning implementation. The commissioner shall prioritize the
126.8opportunities in order of potential energy savings and in order of cost-effectiveness. The
126.9commissioner may contract with a third party to carry out any of the commissioner's duties
126.10under this subdivision, and to obtain technical assistance to evaluate the effectiveness of
126.11any conservation improvement program. The commissioner may assess up to $800,000
126.12annually until June 30, 2009, and $450,000 $850,000 annually thereafter for the purposes
126.13of this subdivision. The assessments must be deposited in the state treasury and credited
126.14to the energy and conservation account created under subdivision 2a. An assessment
126.15made under this subdivision is not subject to the cap on assessments provided by section
126.16216B.62 , or any other law.
126.17    (b) Of the assessment authorized under paragraph (a), the commissioner may expend
126.18up to $400,000 annually for the purpose of developing, operating, maintaining, and
126.19providing technical support for a uniform electronic data reporting and tracking system
126.20available to all utilities subject to this section, in order to enable accurate measurement of
126.21the cost and energy savings of the energy conservation improvements required by this
126.22section. This paragraph expires June 30, 2017, and may be used for no more than three
126.23annual assessments occurring prior to that date.
126.24EFFECTIVE DATE.This section is effective the day following final enactment
126.25and applies to assessments made after June 30, 2014.

126.26    Sec. 4. Minnesota Statutes 2012, section 216C.145, is amended to read:
126.27216C.145 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
126.28RENEWABLE ENERGY LOAN PROGRAM.
126.29    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
126.30section.
126.31    (b) "Small-scale Renewable Community energy efficiency and renewable energy"
126.32projects include solar thermal water heating, solar electric or photovoltaic equipment,
126.33small wind energy conversion systems of less than 250 kW, anaerobic digester gas
126.34systems, microhydro systems up to 100 kW, and heating and cooling applications using
127.1geothermal energy solar thermal or ground source technology, and industrial, commercial,
127.2or public energy efficiency projects.
127.3    (c) "Unit of local government" means any home rule charter or statutory city, county,
127.4commission, district, authority, or other political subdivision or instrumentality of this
127.5state, including a sanitary district, park district, the Metropolitan Council, a port authority,
127.6an economic development authority, or a housing and redevelopment authority.
127.7    Subd. 2. Program established. The commissioner of commerce shall develop,
127.8implement, and administer a microenergy community energy efficiency and renewable
127.9energy loan program under this section.
127.10    Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
127.11loans to units of local government to (1) finance community-owned or publicly owned
127.12small scale renewable energy systems or to cost-effective energy efficiency improvements
127.13to public buildings, (2) provide loans or other aids to small businesses to install small-scale
127.14 renewable energy systems, or (3) provide loans or other aids to industrial or commercial
127.15businesses, including health care facilities, for cost-effective energy efficiency projects or
127.16to install renewable energy systems.
127.17    (b) The commissioner may participate in loans made by the Housing Finance
127.18Agency to residential property owners, private developers, nonprofit organizations,
127.19or units of local government under sections 462A.05, subdivisions 14 and 18; and
127.20462A.33 for the construction, purchase, or rehabilitation of residential housing to facilitate
127.21the installation of small-scale renewable energy systems in residential housing and
127.22cost-effective energy conservation improvements identified in an energy efficiency audit.
127.23The commissioner shall assist the Housing Finance Agency in assessing the technical
127.24qualifications of loan applicants.
127.25(c) A local unit of government shall not require an industrial customer to release
127.26its energy usage data as part of a community energy efficiency project or loan under this
127.27section. Industrial energy usage data may only be released upon the express, written
127.28consent of the industrial customer.
127.29    Subd. 4. Technical standards. The commissioner shall determine technical
127.30standards for small-scale renewable energy systems community energy efficiency and
127.31renewable energy projects to qualify for loans under this section. The commissioner shall
127.32not condition qualification of a community energy efficiency project for a loan under this
127.33section on the production of industrial energy usage data or aggregation of energy usage
127.34data that includes an industrial customer.
127.35    Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
127.36the State Register a request for proposals from units of local government for a loan under
128.1this section. Within 45 days after the deadline for receipt of proposals, the commissioner
128.2shall select proposals based on the following criteria:
128.3    (1) the reliability and cost-effectiveness of the renewable or energy efficiency
128.4technology to be installed under the proposal;
128.5    (2) the extent to which the proposal effectively integrates with the conservation and
128.6energy efficiency programs or goals of the energy utilities serving the proposer;
128.7    (3) the total life cycle energy use and greenhouse gas emissions reductions per
128.8dollar of installed cost;
128.9    (4) the diversity of the renewable energy or energy efficiency technology installed
128.10under the proposal;
128.11    (5) the geographic distribution of projects throughout the state;
128.12    (6) the percentage of total project cost requested;
128.13    (7) the proposed security for payback of the loan; and
128.14    (8) other criteria the commissioner may determine to be necessary and appropriate.
128.15    Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
128.16rate required to recover principal and interest plus the costs of issuing the loan, and must
128.17be for a minimum of 15 years, unless the commissioner determines that a shorter loan
128.18period of no less than ten five years is necessary and feasible.
128.19    Subd. 7. Account. A microenergy community energy efficiency and renewable
128.20energy loan account is established in the state treasury. Money in the account consists of
128.21the proceeds of revenue bonds issued under section 216C.146, interest and other earnings
128.22on money in the account, money received in repayment of loans from the account,
128.23legislative appropriations, and money from any other source credited to the account.
128.24    Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
128.25of commerce to make microenergy community energy efficiency and renewable energy
128.26 loans under this section and to the commissioner of management and budget to pay debt
128.27service and other costs under section 216C.146. Payment of debt service costs and funding
128.28reserves take priority over use of money in the account for any other purpose.

128.29    Sec. 5. Minnesota Statutes 2012, section 216C.146, is amended to read:
128.30216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
128.31RENEWABLE ENERGY LOAN REVENUE BONDS.
128.32    Subdivision 1. Bonding authority; definition. (a) The commissioner of
128.33management and budget, if requested by the commissioner of commerce, shall sell and
128.34issue state revenue bonds for the following purposes:
129.1    (1) to make microenergy community energy efficiency and renewable energy loans
129.2under section 216C.145;
129.3    (2) to pay the costs of issuance, debt service, and bond insurance or other credit
129.4enhancements, and to fund reserves; and
129.5    (3) to refund bonds issued under this section.
129.6    (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
129.7clause (1), that may be outstanding at any time may not exceed $100,000,000, of which
129.8up to $20,000,000 shall be reserved for business and public entity projects; the principal
129.9amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
129.10(3), is not limited.
129.11    (c) For the purpose of this section, "commissioner" means the commissioner of
129.12management and budget.
129.13    Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms
129.14and conditions the commissioner determines to be in the best interests of the state. The
129.15bonds may be sold at public or private sale. The commissioner may enter into any
129.16agreements or pledges the commissioner determines necessary or useful to sell the bonds
129.17that are not inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to
129.18the bonds. The proceeds of the bonds issued under this section must be credited to the
129.19microenergy community energy efficiency and renewable energy loan account created
129.20under section 216C.145.
129.21    Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
129.22following sources:
129.23    (1) revenue credited to the microenergy community energy efficiency and renewable
129.24energy loan account from the sources identified in section 216C.145 or from any other
129.25source; and
129.26    (2) other revenues pledged to the payment of the bonds, including reserves
129.27established by a local government unit.
129.28    Subd. 4. Refunding bonds. The commissioner may issue bonds to refund
129.29outstanding bonds issued under subdivision 1, including the payment of any redemption
129.30premiums on the bonds and any interest accrued or to accrue to the first redemption date
129.31after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
129.32discretion of the commissioner, be applied to the purchases or payment at maturity of the
129.33bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
129.34date after delivery of the refunding bonds and may, until so used, be placed in escrow to
129.35be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
129.36subdivision must be issued and secured in the manner provided by the commissioner.
130.1    Subd. 5. Not a general or moral obligation. Bonds issued under this section are
130.2not public debt, and the full faith, credit, and taxing powers of the state are not pledged
130.3for their payment. The bonds may not be paid, directly in whole or in part from a tax of
130.4statewide application on any class of property, income, transaction, or privilege. Payment
130.5of the bonds is limited to the revenues explicitly authorized to be pledged under this
130.6section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
130.7revenues and other legal security for them is insufficient.
130.8    Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for
130.9bondholders. The trustee has the powers and authority vested in it by the commissioner
130.10under the bond and trust indentures.
130.11    Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from
130.12the time the pledge is made. The money or property pledged and later received by the
130.13commissioner is immediately subject to the lien of the pledge without any physical
130.14delivery of the property or money or further act, and the lien of the pledge is valid and
130.15binding as against all parties having claims of any kind in tort, contract, or otherwise
130.16against the commissioner, whether or not those parties have notice of the lien or pledge.
130.17Neither the order nor any other instrument by which a pledge is created need be recorded.
130.18    Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to
130.19agreements with bondholders that may then exist, may, out of any money available for the
130.20purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
130.21then redeemable, the redemption price then applicable plus accrued interest to the next
130.22interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
130.23applicable on the first date after the purchase upon which the bonds become subject to
130.24redemption plus accrued interest to that date.
130.25    Subd. 9. State pledge against impairment of contracts. The state pledges and
130.26agrees with the holders of any bonds that the state will not limit or alter the rights vested in
130.27the commissioner to fulfill the terms of any agreements made with the bondholders, or
130.28in any way impair the rights and remedies of the holders until the bonds, together with
130.29interest on them, with interest on any unpaid installments of interest, and all costs and
130.30expenses in connection with any action or proceeding by or on behalf of the bondholders,
130.31are fully met and discharged. The commissioner may include this pledge and agreement
130.32of the state in any agreement with the holders of bonds issued under this section.

130.33    Sec. 6. Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:
131.1    Subd. 14. Affirmative business enterprise employment. "Affirmative business
131.2enterprise employment" means employment which provides paid work on the premises of
131.3an affirmative business enterprise as certified by the commissioner.
131.4    Affirmative business enterprise employment is considered community supported
131.5employment for purposes of funding under Minnesota Rules, parts 3300.1000 to
131.63300.2055, provided that the wages for individuals reported must be at or above customary
131.7wages for the same employer. The employer must also provide one benefit package that is
131.8available to all employees at the specific site certified as an affirmative business enterprise.

131.9    Sec. 7. [268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE
131.10DEAF, DEAFBLIND, OR HARD-OF-HEARING.
131.11    Subdivision 1. Deaf, deafblind, and hard-of-hearing grants. (a) The
131.12commissioner shall develop and implement a specialized statewide grant program to
131.13provide long-term supported employment services for persons who are deaf, deafblind,
131.14and hard-of-hearing. Programs and services eligible for grants under this section must:
131.15(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and
131.16advancing in employment;
131.17(2) provide services with staff who must possess fluency in all forms of manual
131.18communication, including American Sign Language; knowledge of hearing loss and
131.19psychosocial implications; sensitivity to cultural issues; familiarity with community
131.20services and communication strategies for people who are hard-of-hearing and do not sign;
131.21and awareness of adaptive technology options;
131.22(3) provide specialized employment support services for individuals who have
131.23a combined hearing and vision loss that address the individual's unique ongoing visual
131.24and auditory communication needs; and
131.25(4) involve clients in the planning, development, oversight, and delivery of
131.26long-term ongoing support services.
131.27(b) Priority for funding shall be given to organizations with experience in developing
131.28innovative employment support services for persons who are deaf, deafblind, and
131.29hard-of-hearing. Each applicant for funds under this section shall submit an evaluation
131.30protocol as part of the grant application.
131.31    Subd. 2. Employment services for transition-aged youth who are deaf,
131.32deafblind, and hard-of-hearing. (a) The commissioner shall develop statewide or
131.33regional grant programs to provide school-based communication, access, and employment
131.34services for youth who are deaf, deafblind, and hard-of-hearing. Services must include
132.1staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise
132.2in serving transition-aged youth.
132.3(b) Priority for funding shall be given to organizations with experience in providing
132.4innovative employment support services and readiness for postsecondary training for
132.5transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for
132.6funds under this section shall submit an evaluation protocol as part of the grant application.
132.7    Subd. 3. Administration. Up to five percent of the biennial appropriation for the
132.8purpose of this section is available to the commissioner for administration of the program.
132.9EFFECTIVE DATE.This section is effective July 1, 2015.

132.10    Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:
132.11    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
132.12merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
132.13provided in paragraph (c), must be allocated to the city or town in the county in which
132.14the lands from which taconite was mined or quarried were located or within which the
132.15concentrate was produced. If the mining, quarrying, and concentration, or different steps
132.16in either thereof are carried on in more than one taxing district, the commissioner shall
132.17apportion equitably the proceeds of the part of the tax going to cities and towns among
132.18such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
132.19the operation of mining or quarrying the taconite, and the remainder to the concentrating
132.20plant and to the processes of concentration, and with respect to each thereof giving due
132.21consideration to the relative extent of such operations performed in each such taxing
132.22district. The commissioner's order making such apportionment shall be subject to review
132.23by the Tax Court at the instance of any of the interested taxing districts, in the same
132.24manner as other orders of the commissioner.
132.25(b) Four cents per taxable ton shall be allocated to cities and organized townships
132.26affected by mining because their boundaries are within three miles of a taconite mine pit
132.27that has been actively mined in at least one of the prior three years. If a city or town is
132.28located near more than one mine meeting these criteria, the city or town is eligible to
132.29receive aid calculated from only the mine producing the largest taxable tonnage. When
132.30more than one municipality qualifies for aid based on one company's production, the aid
132.31must be apportioned among the municipalities in proportion to their populations. Of The
132.32amounts distributed under this paragraph to each municipality, one-half must be used for
132.33infrastructure improvement projects, and one-half must be used for projects in which two
132.34or more municipalities cooperate. Each municipality that receives a distribution under this
132.35paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
133.1the commissioner of Iron Range resources and rehabilitation on the projects involving
133.2cooperation with other municipalities.
133.3(c) The amount that would have been computed for the current year under Minnesota
133.4Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
133.5the cities and townships within the school district in the proportion that their taxable net
133.6tax capacity within the school district bears to the taxable net tax capacity of the school
133.7district for property taxes payable in the year prior to distribution.

133.8    Sec. 9. Laws 2013, chapter 143, article 11, section 10, is amended to read:
133.9    Sec. 10. 2013 DISTRIBUTION ONLY.
133.10For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
133.11any excess of the balance remaining after distribution of amounts required under Minnesota
133.12Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
133.13County acting as the fiscal agent for the recipients for the following specific purposes:
133.14(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
133.15supply system;
133.16(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
133.17required as a result of actions undertaken by United States Steel Corporation;
133.18(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water
133.19supply system, payable upon agreement with ArcelorMittal to satisfy water permit
133.20conditions system to further the established collaborative efforts between the city of
133.21Biwabik, the city of Aurora, and surrounding communities;
133.22(4) 2 cents per ton to the city of Tower for the Tower Marina;
133.23(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
133.24system to replace aging effluent lines and for parking lot repaving;
133.25(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
133.26improvements;
133.27(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
133.28(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
133.29Intermodal Transportation Center;
133.30(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
133.31hockey arena renovations;
133.32(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
133.33to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
133.34Greenway Township;
133.35(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
134.1(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
134.2(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
134.3sewer extension;
134.4(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
134.5(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
134.6(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park
134.7infrastructure, and a maintenance garage;
134.8(17) 0.5 cents per ton to the city of Cook for a water line project;
134.9(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street
134.10reconstruction and the city auditorium;
134.11(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and
134.12water line replacements;
134.13(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North
134.14infrastructure and Franklin Park improvement; and
134.15(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development
134.16project.
134.17EFFECTIVE DATE.This section is effective for the 2014 distribution, and all
134.18payments must be made separately and within ten days of the date of the August 2014
134.19payment.

134.20    Sec. 10. 2014 DISTRIBUTION ONLY.
134.21For the 2014 distribution, a special fund is established to receive 18.37 cents per ton of
134.22any excess of the balance remaining after distribution of amounts required under Minnesota
134.23Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
134.24County acting as the fiscal agent for the recipients for the following specific purposes:
134.25(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;
134.26(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation
134.27at the Reif Center;
134.28(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements
134.29to accommodate business expansion in the city;
134.30(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;
134.31(5) 0.39 cents per ton to Balkan Township for a salt storage building and
134.32energy-efficient cold storage building;
134.33(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city
134.34of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to
134.35secure a potable water source for the city, provided that the city of McKinley secures
135.1the remainder of the project costs from other sources, and expires three years following
135.2the date of distribution;
135.3(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for
135.4township block grants to be distributed by the board;
135.5(8) 0.5 cents per ton to the city of Marble for a water main and looping project;
135.6(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;
135.7(10) 0.65 cents per ton to the city of Babbitt for demolition of a public building;
135.8(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;
135.9(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;
135.10(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;
135.11(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;
135.12(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall; and
135.13(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater
135.14treatment project.
135.15EFFECTIVE DATE.This section is effective for the 2014 distribution, and all
135.16payments must be made separately and within ten days of the date of the August 2014
135.17payment.

135.18    Sec. 11. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM;
135.19EVALUATION.
135.20The commissioner of commerce may utilize a stakeholder group to annually monitor
135.21the usability and product development of systems for electronic data reporting and
135.22tracking for the use of utilities under the conservation improvement plan program under
135.23Minnesota Statutes, section 216B.241. The initial group may be convened by November
135.241, 2014, and must, among others, include representatives from all sectors of the gas and
135.25electric utility industry and providers of energy conservation.

135.26    Sec. 12. REALLOCATION OF BOND PAYMENTS.
135.27In each year subsequent to the year in which the following appropriations terminate
135.28under their terms, an amount equal to the amount of the last year of the school bond
135.29payments from the 2012 production year, payable in 2013, is appropriated from the same
135.30sources listed in this section to the Iron Range school consolidation and cooperatively
135.31operated school account under Minnesota Statutes, section 298.28, subdivision 7a:
135.32(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for
135.33bonds of Independent School District No. 166, Cook County;
136.1(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
136.2bonds of Independent School District No. 696, Ely;
136.3(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
136.4bonds of Independent School District No. 706, Virginia:
136.5(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
136.6bonds of Independent School District No. 2154, Eveleth-Gilbert;
136.7(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for
136.8bonds of Independent School District No. 712, Mountain Iron-Buhl; and
136.9(6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of
136.10Independent School District No. 2711, Mesabi East.
136.11EFFECTIVE DATE.This section is effective beginning with the distribution
136.12in 2015.

136.13ARTICLE 12
136.14EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION

136.15    Section 1. Minnesota Statutes 2012, section 13.43, subdivision 16, is amended to read:
136.16    Subd. 16. School district or charter school disclosure of violence or inappropriate
136.17sexual contact. The superintendent of a school district or the superintendent's designee,
136.18or a person having administrative control of a charter school, must release to a requesting
136.19school district or charter school private personnel data on a current or former employee
136.20related to acts of violence toward or sexual contact with a student, if:
136.21(1) an investigation conducted by or on behalf of the school district or law
136.22enforcement affirmed the allegations in writing prior to release and the investigation
136.23resulted in the resignation of the subject of the data; or
136.24(2) the employee resigned while a complaint or charge involving the allegations was
136.25pending and the allegations involved acts of sexual contact with a student.
136.26Data that are released under this subdivision must not include data on the student.

136.27    Sec. 2. Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8, is
136.28amended to read:
136.29    Subd. 8. Development, evaluation, and peer coaching for continuing contract
136.30teachers. (a) To improve student learning and success, a school board and an exclusive
136.31representative of the teachers in the district, consistent with paragraph (b), may develop
136.32a teacher evaluation and peer review process for probationary and continuing contract
136.33teachers through joint agreement. If a school board and the exclusive representative of the
137.1teachers do not agree to an annual teacher evaluation and peer review process, then the
137.2school board and the exclusive representative of the teachers must implement the state
137.3teacher evaluation plan for evaluation and review under paragraph (c). The process must
137.4include having trained observers serve as peer coaches or having teachers participate in
137.5professional learning communities, consistent with paragraph (b).
137.6    (b) To develop, improve, and support qualified teachers and effective teaching
137.7practices and improve student learning and success, the annual evaluation process for
137.8teachers:
137.9    (1) must, for probationary teachers, provide for all evaluations required under
137.10subdivision 5;
137.11    (2) must establish a three-year professional review cycle for each teacher that
137.12includes an individual growth and development plan, a peer review process, the
137.13opportunity to participate in a professional learning community under paragraph (a), and
137.14at least one summative evaluation performed by a qualified and trained evaluator such as a
137.15school administrator. For the years when a tenured teacher is not evaluated by a qualified
137.16and trained evaluator, the teacher must be evaluated by a peer review;
137.17    (3) must be based on professional teaching standards established in rule;
137.18    (4) must coordinate staff development activities under sections 122A.60 and
137.19122A.61 with this evaluation process and teachers' evaluation outcomes;
137.20    (5) may provide time during the school day and school year for peer coaching and
137.21teacher collaboration;
137.22    (6) may include job-embedded learning opportunities such as professional learning
137.23communities;
137.24    (7) may include mentoring and induction programs;
137.25    (7) (8) must include an option for teachers to develop and present a portfolio
137.26demonstrating evidence of reflection and professional growth, consistent with section
137.27122A.18, subdivision 4 , paragraph (b), and include teachers' own performance assessment
137.28based on student work samples and examples of teachers' work, which may include video
137.29among other activities for the summative evaluation;
137.30    (8) (9) must use data from valid and reliable assessments aligned to state and local
137.31academic standards and must use state and local measures of student growth that may
137.32include value-added models or student learning goals to determine 35 percent of teacher
137.33evaluation results;
137.34    (9) (10) must use longitudinal data on student engagement and connection, and
137.35other student outcome measures explicitly aligned with the elements of curriculum for
137.36which teachers are responsible;
138.1    (10) (11) must require qualified and trained evaluators such as school administrators
138.2to perform summative evaluations and ensure school districts and charter schools provide
138.3for effective evaluator training specific to teacher development and evaluation;
138.4    (11) (12) must give teachers not meeting professional teaching standards under
138.5clauses (3) through (10) (11) support to improve through a teacher improvement process
138.6that includes established goals and timelines; and
138.7    (12) (13) must discipline a teacher for not making adequate progress in the teacher
138.8improvement process under clause (11) (12) that may include a last chance warning,
138.9termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
138.10other discipline a school administrator determines is appropriate.
138.11    Data on individual teachers generated under this subdivision are personnel data
138.12under section 13.43. The observation and interview notes of peer coaches may only be
138.13disclosed to other school officials with the consent of the teacher being coached.
138.14    (c) The department, in consultation with parents who may represent parent
138.15organizations and teacher and administrator representatives appointed by their respective
138.16organizations, representing the Board of Teaching, the Minnesota Association of School
138.17Administrators, the Minnesota School Boards Association, the Minnesota Elementary
138.18and Secondary Principals Associations, Education Minnesota, and representatives of
138.19the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
138.20Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
138.21in teacher evaluation, must create and publish a teacher evaluation process that complies
138.22with the requirements in paragraph (b) and applies to all teachers under this section and
138.23section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
138.24evaluation and peer review process. The teacher evaluation process created under this
138.25subdivision does not create additional due process rights for probationary teachers under
138.26subdivision 5.
138.27EFFECTIVE DATE.This section is effective for the 2014-2015 school year.

138.28    Sec. 3. Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is
138.29amended to read:
138.30    Subd. 5. Development, evaluation, and peer coaching for continuing contract
138.31teachers. (a) To improve student learning and success, a school board and an exclusive
138.32representative of the teachers in the district, consistent with paragraph (b), may develop an
138.33annual teacher evaluation and peer review process for probationary and nonprobationary
138.34teachers through joint agreement. If a school board and the exclusive representative of the
138.35teachers in the district do not agree to an annual teacher evaluation and peer review process,
139.1then the school board and the exclusive representative of the teachers must implement
139.2the state teacher evaluation plan for evaluation and review developed under paragraph
139.3(c). The process must include having trained observers serve as peer coaches or having
139.4teachers participate in professional learning communities, consistent with paragraph (b).
139.5    (b) To develop, improve, and support qualified teachers and effective teaching
139.6practices and improve student learning and success, the annual evaluation process for
139.7teachers:
139.8    (1) must, for probationary teachers, provide for all evaluations required under
139.9subdivision 2;
139.10    (2) must establish a three-year professional review cycle for each teacher that
139.11includes an individual growth and development plan, a peer review process, the
139.12opportunity to participate in a professional learning community under paragraph (a), and
139.13at least one summative evaluation performed by a qualified and trained evaluator such
139.14as a school administrator;
139.15    (3) must be based on professional teaching standards established in rule;
139.16    (4) must coordinate staff development activities under sections 122A.60 and
139.17122A.61 with this evaluation process and teachers' evaluation outcomes;
139.18    (5) may provide time during the school day and school year for peer coaching and
139.19teacher collaboration;
139.20    (6) may include job-embedded learning opportunities such as professional learning
139.21communities;
139.22    (7) may include mentoring and induction programs;
139.23    (7) (8) must include an option for teachers to develop and present a portfolio
139.24demonstrating evidence of reflection and professional growth, consistent with section
139.25122A.18, subdivision 4 , paragraph (b), and include teachers' own performance assessment
139.26based on student work samples and examples of teachers' work, which may include video
139.27among other activities for the summative evaluation;
139.28    (8) (9) must use data from valid and reliable assessments aligned to state and local
139.29academic standards and must use state and local measures of student growth that may
139.30include value-added models or student learning goals to determine 35 percent of teacher
139.31evaluation results;
139.32    (9) (10) must use longitudinal data on student engagement and connection and
139.33other student outcome measures explicitly aligned with the elements of curriculum for
139.34which teachers are responsible;
140.1    (10) (11) must require qualified and trained evaluators such as school administrators
140.2to perform summative evaluations and ensure school districts and charter schools provide
140.3for effective evaluator training specific to teacher development and evaluation;
140.4    (11) (12) must give teachers not meeting professional teaching standards under
140.5clauses (3) through (10) (11) support to improve through a teacher improvement process
140.6that includes established goals and timelines; and
140.7    (12) (13) must discipline a teacher for not making adequate progress in the teacher
140.8improvement process under clause (11) (12) that may include a last chance warning,
140.9termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
140.10other discipline a school administrator determines is appropriate.
140.11    Data on individual teachers generated under this subdivision are personnel data
140.12under section 13.43. The observation and interview notes of peer coaches may only be
140.13disclosed to other school officials with the consent of the teacher being coached.
140.14    (c) The department, in consultation with parents who may represent parent
140.15organizations and teacher and administrator representatives appointed by their respective
140.16organizations, representing the Board of Teaching, the Minnesota Association of School
140.17Administrators, the Minnesota School Boards Association, the Minnesota Elementary
140.18and Secondary Principals Associations, Education Minnesota, and representatives of
140.19the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
140.20Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
140.21in teacher evaluation, must create and publish a teacher evaluation process that complies
140.22with the requirements in paragraph (b) and applies to all teachers under this section and
140.23section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher
140.24evaluation and peer review process. The teacher evaluation process created under this
140.25subdivision does not create additional due process rights for probationary teachers under
140.26subdivision 2.
140.27EFFECTIVE DATE.This section is effective for the 2014-2015 school year.

140.28    Sec. 4. Minnesota Statutes 2012, section 122A.414, subdivision 2, is amended to read:
140.29    Subd. 2. Alternative teacher professional pay system. (a) To participate in this
140.30program, a school district, intermediate school district, school site, or charter school must
140.31have an educational improvement plan under section 122A.413 and an alternative teacher
140.32professional pay system agreement under paragraph (b). A charter school participant also
140.33must comply with subdivision 2a.
140.34    (b) The alternative teacher professional pay system agreement must:
141.1    (1) describe how teachers can achieve career advancement and additional
141.2compensation;
141.3    (2) describe how the school district, intermediate school district, school site, or
141.4charter school will provide teachers with career advancement options that allow teachers
141.5to retain primary roles in student instruction and facilitate site-focused professional
141.6development that helps other teachers improve their skills;
141.7    (3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
141.8paid before implementing the pay system from being reduced as a result of participating
141.9in this system, and base at least 60 percent of any compensation increase on teacher
141.10performance using:
141.11    (i) schoolwide student achievement gains under section 120B.35 or locally selected
141.12standardized assessment outcomes, or both;
141.13    (ii) measures of student achievement growth that may include value-added models
141.14or student learning goals, consistent with section 122A.40, subdivision 8, clause (9), or
141.15122A.41, subdivision 5, clause (9); and
141.16    (iii) an objective evaluation program that includes: under section 122A.40,
141.17subdivision 8, paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2)
141.18    (A) individual teacher evaluations aligned with the educational improvement plan
141.19under section 122A.413 and the staff development plan under section 122A.60; and
141.20    (B) objective evaluations using multiple criteria conducted by a locally selected and
141.21periodically trained evaluation team that understands teaching and learning;
141.22    (4) provide integrated ongoing site-based professional development activities for
141.23participation in job-embedded learning opportunities such as professional learning
141.24communities to improve instructional skills and learning that are aligned with student needs
141.25under section 122A.413, consistent with the staff development plan under section 122A.60
141.26and led during the school day by trained teacher leaders such as master or mentor teachers;
141.27    (5) allow any teacher in a participating school district, intermediate school district,
141.28school site, or charter school that implements an alternative pay system to participate in
141.29that system without any quota or other limit; and
141.30    (6) encourage collaboration rather than competition among teachers.
141.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 and
141.32later. Paragraph (b), clause (3), is effective for agreements under this section approved
141.33after August 1, 2015.

141.34    Sec. 5. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
142.1    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
142.2school site, or charter school that meets the conditions of section 122A.414 and submits an
142.3application approved by the commissioner is eligible for alternative teacher compensation
142.4revenue.
142.5(b) For school district and intermediate school district applications, the commissioner
142.6must consider only those applications to participate that are submitted jointly by a
142.7district and the exclusive representative of the teachers. The application must contain an
142.8alternative teacher professional pay system agreement that:
142.9(1) implements an alternative teacher professional pay system consistent with
142.10section 122A.414; and
142.11(2) is negotiated and adopted according to the Public Employment Labor Relations
142.12Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
142.13district may enter into a contract for a term of two or four years.
142.14Alternative teacher compensation revenue for a qualifying school district or site in
142.15which the school board and the exclusive representative of the teachers agree to place
142.16teachers in the district or at the site on the alternative teacher professional pay system
142.17equals $260 times the number of pupils enrolled at the district or site on October 1 of
142.18the previous fiscal year. Alternative teacher compensation revenue for a qualifying
142.19intermediate school district must be calculated under section 126C.10, subdivision 34
142.20
subdivision 4, paragraphs (a) and (b).
142.21(c) For a newly combined or consolidated district, the revenue shall be computed
142.22using the sum of pupils enrolled on October 1 of the previous year in the districts entering
142.23into the combination or consolidation. The commissioner may adjust the revenue computed
142.24for a site using prior year data to reflect changes attributable to school closings, school
142.25openings, or grade level reconfigurations between the prior year and the current year.
142.26(d) The revenue is available only to school districts, intermediate school districts,
142.27school sites, and charter schools that fully implement an alternative teacher professional
142.28pay system by October 1 of the current school year.
142.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
142.30and later.

142.31    Sec. 6. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
142.32    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
142.33or alternative learning program must reserve revenue in an amount equal to the sum
142.34of (1) at least between 90 and 100 percent of the district average general education
142.35revenue per adjusted pupil unit minus an amount equal to the product of the formula
143.1allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated
143.2without basic skills revenue, local optional revenue, and transportation sparsity revenue,
143.3times the number of pupil units attending an area learning center or alternative learning
143.4program under this section, plus (2) the amount of basic skills revenue generated by pupils
143.5attending the area learning center or alternative learning program. The amount of reserved
143.6revenue under this subdivision may only be spent on program costs associated with the
143.7area learning center or alternative learning program.
143.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
143.9and later.

143.10    Sec. 7. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
143.11    Subdivision 1. Schools may be jointly operated. Two or more school districts may
143.12agree to jointly operate a secondary facility. The districts may choose to operate the
143.13facility according to a joint powers agreement under section 123A.78 or 471.59.
143.14    Subd. 2. Expanded program offerings. A jointly operated secondary program
143.15seeking funding under section 123A.485 must demonstrate to the commissioner's
143.16satisfaction that the jointly operated program provides enhanced learning opportunities and
143.17broader curriculum offerings to the students attending that program. The commissioner
143.18must approve or disapprove a cooperative secondary program within 60 days of receipt of
143.19an application.
143.20    Subd. 2a. Transfer of employees. An employee transferred between members of a
143.21joint powers agreement under this section is not required to serve a statutory or contractual
143.22probationary period. The employee shall receive credit on the receiving district's salary
143.23schedule for the employee's educational attainment and years of continuous service in
143.24the sending district, or shall receive a comparable salary, whichever is greater. The
143.25employee shall receive credit for accrued sick leave and rights to severance benefits as if
143.26the employee had been employed by the receiving district during the employee's years of
143.27employment in the sending district.
143.28    Subd. 3. Revenue. An approved program that is jointly operated under this section
143.29is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
143.30123A.44 to 123A.446.
143.31    Subd. 4. Duty to maintain elementary and secondary schools met. A school
143.32district operating a joint facility under this section meets the requirements of section
143.33123A.64.
144.1    Subd. 5. Estimated market value limit exclusion. Bonds for a cooperative facility
144.2operated under this section issued by a member school district are not subject to the net
144.3debt limit under section 475.53, subdivision 4.
144.4    Subd. 6. Allocation of levy authority for joint facility. For purposes of determining
144.5each member district's school levy, a jointly operated secondary program may allocate
144.6program costs to each member district according to the joint powers agreement and each
144.7member district may include those costs in its tax levy. The joint powers agreement may
144.8choose to allocate costs on any basis adopted as part of the joint powers agreement.
144.9    Subd. 7. Effect of consolidation. The joint powers agreement may allow member
144.10school districts that choose to consolidate to continue to certify levies separately based on
144.11each component district's characteristics.
144.12    Subd. 8. Bonds. A joint powers district formed under this section may issue bonds
144.13according to section 123A.78 or its member districts may issue bonds individually after
144.14complying with this subdivision. The joint powers board must submit the project for
144.15review and comment under section 123B.71. The joint powers board must hold a hearing
144.16on the proposal. If the bonds are not issued under section 123A.78, each member district
144.17of the joint powers district must submit the question of authorizing borrowing of funds for
144.18the project to the voters of the district at a special election. The question submitted shall
144.19state the total amount of funding needed from that district. The member district may issue
144.20the bonds according to chapter 475 and certify the levy required by section 475.61 only if
144.21a majority of those voting on the question in that district vote in the affirmative and only
144.22after the board has adopted a resolution pledging the full faith and credit of that unit. The
144.23resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
144.24shortages that, together with other funds available, would allow the member school board
144.25to pay the principal and interest on the obligations. The clerk of the joint powers board
144.26must certify the vote of any bond elections to the commissioner. Bonds issued under this
144.27section first qualify for debt service equalization aid in fiscal year 2018.
144.28    Subd. 9. Election. A district entering into a joint powers agreement under this
144.29section may conduct a referendum seeking approval for a new facility. This election may
144.30be held separately or at the same time as a bond election under subdivision 8. If the
144.31election is held at the same time, the questions may be asked separately or as a conjunctive
144.32question. The question must be approved by a majority of those voting on the question.
144.33If asked separately and the question fails, a district may not proceed with the sale of
144.34bonds according to subdivision 8.
144.35EFFECTIVE DATE.This section is effective the day following final enactment.

145.1    Sec. 8. Minnesota Statutes 2012, section 123A.485, is amended to read:
145.2123A.485 CONSOLIDATION TRANSITION REVENUE AID.
145.3    Subdivision 1. Eligibility and use. A district that operates a cooperative facility
145.4under section 123A.482 or that has been reorganized after June 30, 1994, under section
145.5123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
145.6 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
145.7 aid may only be used according to this section. Revenue must be used for the following
145.8purposes and may be distributed among these purposes at the discretion of the district or
145.9the governing board of the cooperative facility:
145.10(1) to offer early retirement incentives as provided by section 123A.48, subdivision
145.1123
;
145.12(2) to reduce operating debt as defined in section 123B.82;
145.13(3) to enhance learning opportunities for students in the reorganized district; and
145.14(4) to repay building debt; or
145.15(5) for other costs incurred in the reorganization.
145.16Revenue received and utilized under clause (3) or (4) (5) may be expended for
145.17operating, facilities, and/or equipment.
145.18    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $300 times the
145.19number of resident adjusted pupil units in the newly created cooperative facility under
145.20section 123A.482 or the consolidated district in the year of consolidation and $100 times
145.21the number of resident pupil units in the first year following the year of consolidation
145.22 under section 123A.48. The number of pupil units used to calculate aid in either year
145.23shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
145.24consolidating July 1, 1995, and thereafter A district may receive aid under this section for
145.25not more than five years except as provided in subdivision 4.
145.26(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
145.27any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
145.28districts the full amount of aid earned, the department must first pay the districts in the first
145.29year following the year of consolidation the full amount of aid earned and distribute any
145.30remaining funds to the newly created districts in the first year of consolidation.
145.31    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
145.32of the district under section 123A.48, subdivision 23, the district may levy the difference
145.33over a period of time not to exceed three years.
145.34    Subd. 4. New districts. If a district enters into a cooperative secondary facilities
145.35program or consolidates with another district that has received aid under section 123A.39,
145.36subdivision 3
, or 123A.485 for a combination or consolidation taking effect within
146.1six years of the effective date of the new consolidation or the start of the cooperative
146.2secondary facilities program, only the pupil units in the district or districts not previously
146.3 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
146.4two or more districts consolidate and all districts received aid under subdivision 2 for a
146.5consolidation taking effect within six years of the effective date of the new consolidation,
146.6only one quarter of the pupil units in the newly created district must be used to determine
146.7aid under subdivision 2.
146.8EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017
146.9and later.

146.10    Sec. 9. Minnesota Statutes 2012, section 123A.64, is amended to read:
146.11123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
146.12SCHOOLS.
146.13Each district must maintain classified elementary and secondary schools, grades 1
146.14through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
146.15made an agreement with another district or districts as provided in sections 123A.30,
146.16123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
146.17grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
146.18123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
146.19123A.32 must operate a school with the number of grades required by those sections. A
146.20district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
146.21has received a grant under sections 123A.441 to 123A.446 must operate a school for the
146.22grades not included in the agreement, but not fewer than three grades.

146.23    Sec. 10. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
146.24amended to read:
146.25    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
146.26revenue of a district is defined as follows:
146.27    (1) the amount needed to produce between five and six percent in excess of the
146.28amount needed to meet when due the principal and interest payments on the obligations
146.29of the district for eligible projects according to subdivision 2, including the amounts
146.30necessary for repayment of energy loans according to section 216C.37 or sections 298.292
146.31to 298.298, debt service loans and capital loans, lease purchase payments under section
146.32126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
146.335
, paragraph (a), minus
147.1    (2) the amount of debt service excess levy reduction for that school year calculated
147.2according to the procedure established by the commissioner.
147.3    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
147.4    (1) obligations under section 123B.61;
147.5    (2) the part of debt service principal and interest paid from the taconite environmental
147.6protection fund or Douglas J. Johnson economic protection trust, excluding both the
147.7portion of taconite payments from the Iron Range school consolidation and cooperatively
147.8operated school account under section 298.28, subdivision 7a, and any payments made
147.9from the Douglas J. Johnson economic protection trust fund under section 298.292,
147.10subdivision 2, clause (6);
147.11    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
147.12amended by Laws 1992, chapter 499, article 5, section 24; and
147.13    (4) obligations under section 123B.62.; and
147.14    (5) obligations under section 123B.535.
147.15    (c) For purposes of this section, if a preexisting school district reorganized under
147.16sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
147.17of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
147.18service equalization aid must be computed separately for each of the preexisting districts.
147.19    (d) For purposes of this section, the adjusted net tax capacity determined according
147.20to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
147.21generally exempted from ad valorem taxes under section 272.02, subdivision 64.

147.22    Sec. 11. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
147.23    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
147.24disaster debt service revenue of a district is defined as the amount needed to produce
147.25between five and six percent in excess of the amount needed to meet when due the
147.26principal and interest payments on the obligations of the district that would otherwise
147.27qualify under section 123B.53 under the following conditions:
147.28    (1) the district was impacted by a natural disaster event or area occurring January
147.291, 2005, or later, as declared by the President of the United States of America, which is
147.30eligible for Federal Emergency Management Agency payments;
147.31    (2) the natural disaster caused $500,000 or more in damages to school district
147.32buildings; and
147.33    (3) the repair and replacement costs are not covered by insurance payments or
147.34Federal Emergency Management Agency payments.
148.1    (b) For purposes of this section, the adjusted net tax capacity equalizing factor
148.2equals the quotient derived by dividing the total adjusted net tax capacity of all school
148.3districts in the state for the year before the year the levy is certified by the total number of
148.4adjusted pupil units in the state for the current school year.
148.5    (c) For purposes of this section, the adjusted net tax capacity determined according
148.6to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
148.7generally exempted from ad valorem taxes under section 272.02, subdivision 64.
148.8    Subd. 2. Notification. A district eligible for natural disaster debt service
148.9equalization revenue under subdivision 1 must notify the commissioner of the amount of
148.10its intended natural disaster debt service revenue calculated under subdivision 1 for all
148.11bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
148.12    Subd. 3. Natural disaster debt service equalization revenue. The debt service
148.13equalization revenue of a district equals the greater of zero or the eligible debt service
148.14revenue, minus the greater of zero or the difference between:
148.15    (1) the amount raised by a levy of ten percent times the adjusted net tax capacity
148.16of the district; and
148.17    (2) the district's eligible debt service revenue under section 123B.53.
148.18    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
148.19natural disaster debt service levy equals the district's natural disaster debt service
148.20equalization revenue times the lesser of one or the ratio of:
148.21    (1) the quotient derived by dividing the adjusted net tax capacity of the district for
148.22the year before the year the levy is certified by the adjusted pupil units in the district for
148.23the school year ending in the year prior to the year the levy is certified; to
148.24    (2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
148.25    Subd. 5. Natural disaster debt service equalization aid. A district's natural
148.26disaster debt service equalization aid equals the difference between the district's natural
148.27disaster debt service equalization revenue and the district's equalized natural disaster
148.28debt service levy.
148.29    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
148.30service equalization aid must be paid according to section 127A.45, subdivision 10.
148.31EFFECTIVE DATE.This section is effective for levies certified for taxable year
148.322015 and revenue for fiscal year 2016 and later.

148.33    Sec. 12. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
148.34123B.54 DEBT SERVICE APPROPRIATION.
149.1    (a) The amount necessary to make debt service equalization aid payments under
149.2section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
149.3the commissioner of education.
149.4    (b) The appropriations in paragraph (a) must be reduced by the amount of any
149.5money specifically appropriated for the same purpose in any year from any state fund.
149.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
149.7and later.

149.8    Sec. 13. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
149.9    Subd. 8. Review and comment. A school district, a special education cooperative,
149.10or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
149.11initiate an installment contract for purchase or a lease agreement, hold a referendum for
149.12bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
149.13facility that requires an expenditure in excess of $500,000 per school site if it has a capital
149.14loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
149.15loan outstanding, prior to review and comment by the commissioner. The commissioner
149.16may exempt A facility addition, maintenance project, or remodeling project funded only
149.17with general education aid and levy revenue, deferred maintenance revenue, alternative
149.18facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
149.19proceeds, or health and safety revenue is exempt from this provision after reviewing a
149.20written request from a school district describing the scope of work. A capital project under
149.21section 123B.63 addressing only technology is exempt from this provision if the district
149.22submits a school board resolution stating that funds approved by the voters will be used
149.23only as authorized in section 126C.10, subdivision 14. A school board shall not separate
149.24portions of a single project into components to avoid the requirements of this subdivision.

149.25    Sec. 14. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
149.26    Subd. 9. Information required. A school board proposing to construct, expand,
149.27or remodel a facility described in that requires a review and comment under subdivision
149.288 shall submit to the commissioner a proposal containing information including at least
149.29the following:
149.30(1) the geographic area and population to be served, preschool through grade 12
149.31student enrollments for the past five years, and student enrollment projections for the
149.32next five years;
150.1(2) a list of existing facilities by year constructed, their uses, and an assessment of
150.2the extent to which alternate facilities are available within the school district boundaries
150.3and in adjacent school districts;
150.4(3) a list of the specific deficiencies of the facility that demonstrate the need for a
150.5new or renovated facility to be provided, the process used to determine the deficiencies, a
150.6list of those deficiencies that will and will not be addressed by the proposed project, and a
150.7list of the specific benefits that the new or renovated facility will provide to the students,
150.8teachers, and community users served by the facility;
150.9(4) the relationship of the project to any priorities established by the school district,
150.10educational cooperatives that provide support services, or other public bodies in the
150.11service area;
150.12(5) a description of the pedestrian, bicycle, and transit connections between the
150.13school and nearby residential areas that make it easier for children, teachers, and parents
150.14to get to the school by walking, bicycling, and taking transit;
150.15(6) a specification of how the project maximizes the opportunity for cooperative use
150.16of existing park, recreation, and other public facilities and whether and how the project
150.17will increase collaboration with other governmental or nonprofit entities;
150.18(7) (4) a description of the project, including the specification of site and outdoor
150.19space acreage and square footage allocations for classrooms, laboratories, and support
150.20spaces; estimated expenditures for the major portions of the project; and the dates the
150.21project will begin and be completed;
150.22(8) (5) a specification of the source of financing the project, including applicable
150.23statutory citations; the scheduled date for a bond issue or school board action; a schedule
150.24of payments, including debt service equalization aid; and the effect of a bond issue on
150.25local property taxes by the property class and valuation;
150.26(9) an analysis of how the proposed new or remodeled facility will affect school
150.27district operational or administrative staffing costs, and how the district's operating budget
150.28will cover any increased operational or administrative staffing costs;
150.29(10) a description of the consultation with local or state transportation officials
150.30on multimodal school site access and safety issues, and the ways that the project will
150.31address those issues;
150.32(11) a description of how indoor air quality issues have been considered and a
150.33certification that the architects and engineers designing the facility will have professional
150.34liability insurance;
150.35(12) as required under section 123B.72, for buildings coming into service after July 1,
150.362002, a certification that the plans and designs for the extensively renovated or new facility's
151.1heating, ventilation, and air conditioning systems will meet or exceed code standards; will
151.2provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
151.3will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
151.4(13) a specification of any desegregation requirements that cannot be met by any
151.5other reasonable means;
151.6(14) a specification of how the facility will utilize environmentally sustainable
151.7school facility design concepts;
151.8(15) a description of how the architects and engineers have considered the American
151.9National Standards Institute Acoustical Performance Criteria, Design Requirements
151.10and Guidelines for Schools of the maximum background noise level and reverberation
151.11times; and
151.12    (16) any existing information from the relevant local unit of government about the
151.13cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
151.14roads, and sidewalks.
151.15    (6) confirmations of the district and contracted professionals that the project is
151.16planned and will be executed to consider and comply with the following:
151.17    (i) uniform municipal contracting law under section 471.345;
151.18    (ii) sustainable design;
151.19    (iii) school facility commissioning under section 123B.72 requiring certification that
151.20plans and designs for an extensively renovated or new facility's heating, ventilation, and
151.21air conditioning systems will meet or exceed current code standards; and will provide an
151.22air quality filtration system that meets ASHRAE standard 52.1;
151.23    (iv) American National Standards Institute Acoustical Performance Criteria, Design
151.24Requirements and Guidelines for Schools of the maximum background noise level and
151.25reverberation times;
151.26    (v) State Fire Code;
151.27    (vi) applicable building code under chapter 326B;
151.28    (vii) consultation with appropriate governmental units regarding utilities, roads,
151.29sewers, sidewalks, retention ponds, school bus and automobile traffic, and safe access
151.30for walkers and bicyclists.

151.31    Sec. 15. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
151.32amended to read:
151.33    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
151.34each year, the school district must recognize as revenue, in the fund for which the levy
151.35was made, the lesser of:
152.1(1) the sum of May, June, and July school district tax settlement revenue received in
152.2that calendar year, plus general education aid according to section 126C.13, subdivision
152.34
, received in July and August of that calendar year; or
152.4(2) the sum of:
152.5(i) the greater of 48.6 percent of the referendum levy certified according to section
152.6126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
152.7according to section 126C.17 in calendar year 2000; plus
152.8(ii) the entire amount of the levy certified in the prior calendar year according
152.9to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
152.10under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
152.11School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
152.12Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
152.13and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
152.14(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
152.15school district's general and community service funds, plus or minus auditor's adjustments,
152.16that remains after subtracting the referendum levy certified according to section 126C.17
152.17
and the amount recognized according to item (ii).

152.18    Sec. 16. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
152.19    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
152.20postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
152.21A postsecondary institution may provide information about its programs to a secondary
152.22school or to a pupil or parent and it may advertise or otherwise recruit or solicit a
152.23secondary pupil to enroll in its programs on educational and programmatic grounds only.
152.24An institution must not enroll secondary pupils, for postsecondary enrollment options
152.25purposes, in remedial, developmental, or other courses that are not college level, except
152.26when a student eligible to participate in the graduation incentives program under section
152.27124D.68 enrolls full-time in a middle or early college program specifically designed to
152.28allow the student to earn dual high school and college credit. In this case, the student shall
152.29receive developmental college credit and not college credit for completing remedial or
152.30developmental courses. Once a pupil has been enrolled in a postsecondary course under
152.31this section, the pupil shall not be displaced by another student.
152.32EFFECTIVE DATE.This section is effective July 1, 2014.

152.33    Sec. 17. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
153.1    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this
153.2section, the department must make payments according to this subdivision for courses that
153.3were taken for secondary credit.
153.4The department must not make payments to a school district or postsecondary
153.5institution for a course taken for postsecondary credit only. The department must not
153.6make payments to a postsecondary institution for a course from which a student officially
153.7withdraws during the first 14 days of the quarter or semester or who has been absent from
153.8the postsecondary institution for the first 15 consecutive school days of the quarter or
153.9semester and is not receiving instruction in the home or hospital.
153.10A postsecondary institution shall receive the following:
153.11(1) for an institution granting quarter credit, the reimbursement per credit hour shall
153.12be an amount equal to 88 percent of the product of the formula allowance minus $415
153.13 $425, multiplied by 1.3 1.2, and divided by 45; or
153.14(2) for an institution granting semester credit, the reimbursement per credit hour
153.15shall be an amount equal to 88 percent of the product of the general revenue formula
153.16allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
153.17The department must pay to each postsecondary institution 100 percent of the
153.18amount in clause (1) or (2) within 30 days of receiving initial enrollment information
153.19each quarter or semester. If changes in enrollment occur during a quarter or semester,
153.20the change shall be reported by the postsecondary institution at the time the enrollment
153.21information for the succeeding quarter or semester is submitted. At any time the
153.22department notifies a postsecondary institution that an overpayment has been made, the
153.23institution shall promptly remit the amount due.

153.24    Sec. 18. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is
153.25amended to read:
153.26    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
153.27federal, state, and local health and safety requirements applicable to school districts.
153.28    (b) A school must comply with statewide accountability requirements governing
153.29standards and assessments in chapter 120B.
153.30    (c) A school authorized by a school board may be located in any district, unless the
153.31school board of the district of the proposed location disapproves by written resolution.
153.32    (d) A charter school must be nonsectarian in its programs, admission policies,
153.33employment practices, and all other operations. An authorizer may not authorize a charter
153.34school or program that is affiliated with a nonpublic sectarian school or a religious
154.1institution. A charter school student must be released for religious instruction, consistent
154.2with section 120A.22, subdivision 12, clause (3).
154.3    (e) Charter schools must not be used as a method of providing education or
154.4generating revenue for students who are being home-schooled. This paragraph does not
154.5apply to shared time aid under section 126C.19.
154.6    (f) The primary focus of a charter school must be to provide a comprehensive
154.7program of instruction for at least one grade or age group from five through 18 years
154.8of age. Instruction may be provided to people younger than five years and older than
154.918 years of age.
154.10    (g) A charter school may not charge tuition.
154.11    (h) A charter school is subject to and must comply with chapter 363A and section
154.12121A.04 .
154.13    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
154.14Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
154.15123B.34 to 123B.39.
154.16    (j) A charter school is subject to the same financial audits, audit procedures, and
154.17audit requirements as a district, except as required under subdivision 6a. Audits must be
154.18conducted in compliance with generally accepted governmental auditing standards, the
154.19federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
154.20to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
154.21118A.05 ; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
154.22the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
154.23necessary because of the program at the school. Deviations must be approved by the
154.24commissioner and authorizer. The Department of Education, state auditor, legislative
154.25auditor, or authorizer may conduct financial, program, or compliance audits. A charter
154.26school determined to be in statutory operating debt under sections 123B.81 to 123B.83
154.27must submit a plan under section 123B.81, subdivision 4.
154.28    (k) A charter school is a district for the purposes of tort liability under chapter 466.
154.29    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
154.30subdivision 7
; 121A.75; and 260B.171, subdivisions 3 and 5.
154.31    (m) A charter school is subject to the Pledge of Allegiance requirement under
154.32section 121A.11, subdivision 3.
154.33    (n) A charter school offering online courses or programs must comply with section
154.34124D.095 .
154.35    (o) A charter school and charter school board of directors are subject to chapter 181.
155.1    (p) A charter school must comply with section 120A.22, subdivision 7, governing
155.2the transfer of students' educational records and sections 138.163 and 138.17 governing
155.3the management of local records.
155.4    (q) A charter school that provides early childhood health and developmental
155.5screening must comply with sections 121A.16 to 121A.19.
155.6    (r) A charter school that provides school-sponsored youth athletic activities must
155.7comply with section 121A.38.
155.8    (s) A charter school is subject to and must comply with continuing truant notification
155.9under section 260A.03.
155.10    (t) A charter school must develop and implement a teacher evaluation and peer review
155.11process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (12) (13) .
155.12    (u) A charter school must adopt a policy, plan, budget, and process, consistent with
155.13section 120B.11, to review curriculum, instruction, and student achievement and strive
155.14for the world's best workforce.
155.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
155.16and later.

155.17    Sec. 19. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
155.18amended to read:
155.19    Subdivision 1. General education revenue. General education revenue must be
155.20paid to a charter school as though it were a district. The general education revenue
155.21for each adjusted pupil unit is the state average general education revenue per pupil
155.22unit, plus the referendum equalization aid allowance in the pupil's district of residence,
155.23minus an amount equal to the product of the formula allowance according to section
155.24126C.10, subdivision 2 , times .0466, calculated without declining enrollment revenue,
155.25local optional revenue, basic skills revenue, extended time revenue, pension adjustment
155.26revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment
155.27revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and
155.28transition revenue as though the school were a school district. The general education
155.29revenue for each extended time pupil unit equals $4,794.
155.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
155.31and later.

155.32    Sec. 20. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
155.33is amended to read:
156.1    Subdivision 1. School lunch aid computation. Each school year, the state must
156.2pay participants in the national school lunch program the amount of 12.5 cents for each
156.3full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
156.4student lunch served to students.
156.5EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.

156.6    Sec. 21. Minnesota Statutes 2012, section 124D.111, is amended by adding a
156.7subdivision to read:
156.8    Subd. 4. No fees. A participant that receives school lunch aid under this section
156.9must make lunch available without charge to all participating students who qualify for
156.10free or reduced-price meals. The participant must also ensure that any reminders for
156.11payment of outstanding student meal balances do not demean or stigmatize any child
156.12participating in the school lunch program.
156.13EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.

156.14    Sec. 22. Minnesota Statutes 2012, section 124D.111, is amended by adding a
156.15subdivision to read:
156.16    Subd. 5. Inability to pay. A participant that receives school lunch aid under this
156.17section is encouraged to provide a student who is unable to pay with the same lunch
156.18that is served to other students.

156.19    Sec. 23. Minnesota Statutes 2012, section 124D.1158, subdivision 3, is amended to read:
156.20    Subd. 3. Program reimbursement. Each school year, the state must reimburse
156.21each participating school 30 cents for each reduced-price breakfast and, 55 cents for each
156.22fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid
156.23breakfast served to a kindergarten student.

156.24    Sec. 24. Minnesota Statutes 2012, section 124D.1158, subdivision 4, is amended to read:
156.25    Subd. 4. No fees. A school that receives school breakfast aid under this section must
156.26make breakfast available without charge to all participating students in grades 1 to 12 who
156.27qualify for free or reduced price meals and to all kindergarten students.

156.28    Sec. 25. Minnesota Statutes 2012, section 124D.13, subdivision 2, is amended to read:
156.29    Subd. 2. Program requirements. (a) Early childhood family education programs
156.30are programs for children in the period of life from birth to kindergarten, for the parents
157.1and other relatives of these children, and for expectant parents. To the extent that funds
157.2are insufficient to provide programs for all children, early childhood family education
157.3programs should emphasize programming for a child from birth to age three and
157.4encourage parents and other relatives to involve four- and five-year-old children in school
157.5readiness programs, and other public and nonpublic early learning programs. A district
157.6may not limit participation to school district residents. Early childhood family education
157.7programs must provide:
157.8    (1) programs to educate parents and other relatives about the physical, mental
157.9 cognitive, social, and emotional development of children and to enhance the skills of
157.10parents and other relatives in providing for their children's learning and development;
157.11    (2) structured learning activities requiring interaction between children and their
157.12parents or relatives;
157.13    (3) structured learning activities for children that promote children's development
157.14and positive interaction with peers, which are held while parents or relatives attend parent
157.15education classes;
157.16    (4) information on related community resources;
157.17    (5) information, materials, and activities that support the safety of children, including
157.18prevention of child abuse and neglect; and
157.19    (6) a community outreach plan to ensure participation by families who reflect
157.20the racial, cultural, and economic diversity of the school district needs assessment that
157.21identifies new and underserved populations, identifies child and family risk factors,
157.22particularly those that impact children's learning and development, and assesses family
157.23and parenting education needs in the community;
157.24    (7) programming and services that are tailored to the needs of families and parents
157.25prioritized in the community needs assessment; and
157.26    (8) provide information about and, if needed, assist in making arrangements for an
157.27early childhood health and developmental screening under sections 121A.16 and 121A.17,
157.28when the child nears their third birthday.
157.29Early childhood family education programs should prioritize programming and
157.30services for families and parents identified in the community needs assessment, particularly
157.31those families and parents with children with the most risk factors birth to age three.
157.32    The programs must include learning experiences for children, parents, and other
157.33relatives that promote children's early literacy skills. The program must not include
157.34activities for children that do not require substantial involvement of the children's parents
157.35or other relatives. The program may provide parenting education programming or services
157.36to anyone identified in the community needs assessment. The program must be reviewed
158.1periodically to assure the instruction and materials are not racially, culturally, or sexually
158.2biased. The programs must encourage parents to be aware of practices that may affect
158.3equitable development of children.
158.4    (b) For the purposes of this section, "relative" or "relatives" means noncustodial
158.5grandparents or other persons related to a child by blood, marriage, adoption, or foster
158.6placement, excluding parents.

158.7    Sec. 26. Minnesota Statutes 2012, section 124D.13, subdivision 4, is amended to read:
158.8    Subd. 4. Home visiting program. A district that levies for home visiting under
158.9section 124D.135, subdivision 6, shall use this revenue to include as part of the early
158.10childhood family education programs a parent education component that is designed to
158.11reach isolated or at-risk families.
158.12The home visiting program must use:
158.13(1) an established risk assessment tool to determine the family's level of risk
158.14 incorporate evidence-informed parenting education practices designed to support the
158.15healthy growth and development of children, with a priority focus on those children
158.16who have high needs;
158.17(2) establish clear objectives and protocols for home visits;
158.18(3) encourage families to make a transition from home visits to site-based parenting
158.19programs;
158.20(4) provide program services that are community-based, accessible, and culturally
158.21relevant; and
158.22(5) foster collaboration among existing agencies and community-based organizations
158.23that serve young children and their families, such as public health evidence-based models
158.24of home visiting and Head Start home visiting; and
158.25(6) provide information about and assist in making arrangements for an early
158.26childhood health and developmental screening when the child nears his or her third
158.27birthday.
158.28Home visitors The home visiting program should be provided by licensed parenting
158.29educators, certified family life educators, or professionals with an equivalent license that
158.30reflect the demographic composition of the community to the extent possible.

158.31    Sec. 27. Minnesota Statutes 2012, section 124D.13, subdivision 9, is amended to read:
158.32    Subd. 9. District advisory councils. The board must appoint an advisory council
158.33from the area in which the program is provided. A majority of the council must be
158.34parents participating in the program, who represent the demographics of the community.
159.1The district must ensure, to the extent possible, that the council includes representation
159.2of families who are racially, culturally, linguistically, and economically diverse. The
159.3council must assist the board in developing, planning, and monitoring the early childhood
159.4family education program. The council must report to the board and the community
159.5education advisory council.

159.6    Sec. 28. Minnesota Statutes 2012, section 124D.13, subdivision 13, is amended to read:
159.7    Subd. 13. Program data submission requirements. Districts receiving early
159.8childhood family education revenue under section 124D.135 must submit annual program
159.9data, including data that demonstrates the program response to the community needs
159.10assessment, to the department by July 15 in the form and manner prescribed by the
159.11commissioner.

159.12    Sec. 29. Minnesota Statutes 2012, section 124D.13, is amended by adding a
159.13subdivision to read:
159.14    Subd. 14. Supervision. A program provided by a board must be supervised by a
159.15licensed early childhood teacher or a licensed parent educator.

159.16    Sec. 30. Minnesota Statutes 2012, section 124D.13, is amended by adding a
159.17subdivision to read:
159.18    Subd. 15. Parenting education transition program. To the extent that funds are
159.19sufficient, early childhood family education may provide parenting education transition
159.20programming for parents of children birth to grade three in districts in which there is a
159.21prekindergarten-grade three initiative in order to facilitate continued parent engagement
159.22in children's learning and development. Early childhood family education programs are
159.23encouraged to develop partnerships to provide a parenting education liaison to providers
159.24of other public and nonpublic early learning programs, such as Head Start, school
159.25readiness, child care, early childhood special education, local public health programs,
159.26and health care providers.

159.27    Sec. 31. Minnesota Statutes 2012, section 124D.135, subdivision 1, is amended to read:
159.28    Subdivision 1. Revenue. The revenue for early childhood family education
159.29programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year
159.302008 $120 for fiscal year 2014 and the formula allowance for the year times 0.0253 for
159.31fiscal year 2015 and later, times the greater of:
159.32    (1) 150; or
160.1    (2) the number of people under five years of age residing in the district on October 1
160.2of the previous school year.

160.3    Sec. 32. Minnesota Statutes 2012, section 124D.135, subdivision 3, is amended to read:
160.4    Subd. 3. Early childhood family education levy. (a) By September 30 of each year,
160.5the commissioner shall establish a tax rate for early childhood family education revenue
160.6that raises $22,135,000 in each fiscal year. If the amount of the early childhood family
160.7education levy would exceed the early childhood family education revenue, the early
160.8childhood family education levy must equal the early childhood family education revenue.
160.9A district may not certify an early childhood family education levy unless it has met the
160.10annual program data reporting requirements under section 124D.13, subdivision 13.
160.11    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
160.12establish a tax rate for early education revenue that raises $13,565,000.

160.13    Sec. 33. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3,
160.14is amended to read:
160.15    Subd. 3. Administration. (a) The commissioner shall establish application
160.16timelines and determine the schedule for awarding scholarships that meets operational
160.17needs of eligible families and programs. The commissioner may prioritize applications on
160.18factors including family income, geographic location, and whether the child's family is on a
160.19waiting list for a publicly funded program providing early education or child care services.
160.20(b) Scholarships may be awarded up to $5,000 for each eligible child. The
160.21commissioner shall establish a target for the average scholarship amount per child
160.22based on the results of the rate survey conducted under section 119B.13, subdivision 1,
160.23paragraph (b), per year.
160.24(c) A four-star rated program that has children eligible for a scholarship enrolled
160.25in or on a waiting list for a program beginning in July, August, or September may notify
160.26the commissioner, in the form and manner prescribed by the commissioner, each year
160.27of the program's desire to enhance program services or to serve more children than
160.28current funding provides. The commissioner may designate a predetermined number of
160.29scholarship slots for that program and notify the program of that number. A school district
160.30or Head Start program qualifying under this paragraph may use its established registration
160.31process to enroll scholarship recipients and may verify a scholarship recipient's family
160.32income in the same manner as for other program participants.
160.33(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
160.34not been accepted and subsequently enrolled in a rated program within ten months of the
161.1awarding of the scholarship, the scholarship cancels and the recipient must reapply in
161.2order to be eligible for another scholarship. A child may not be awarded more than one
161.3scholarship in a 12-month period.
161.4(e) A child who receives a scholarship who has not completed development
161.5screening under sections 121A.16 to 121A.19 must complete that screening within 90
161.6days of first attending an eligible program.
161.7(f) A school district or Head Start program enrolling scholarship recipients under
161.8paragraph (c) may apply to the commissioner, in the form and manner prescribed by
161.9the commissioner, for direct payment of state aid. Upon receipt of the application, the
161.10commissioner must pay each program directly for each approved scholarship recipient
161.11enrolled under paragraph (c) according to the metered payment system or another schedule
161.12established by the commissioner.
161.13EFFECTIVE DATE.This section is effective July 1, 2016.

161.14    Sec. 34. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 4,
161.15is amended to read:
161.16    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept
161.17an early childhood education scholarship, a program must:
161.18(1) participate in the quality rating and improvement system under section
161.19124D.142 ; and
161.20(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating
161.21and improvement system.
161.22(b) Any program accepting scholarships must use the revenue to supplement and not
161.23supplant federal funding.
161.24(c) Notwithstanding paragraph (a), all Minnesota early learning foundation
161.25scholarship program pilot sites are eligible to accept an early learning scholarship under
161.26this section.

161.27    Sec. 35. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5,
161.28is amended to read:
161.29    Subd. 5. Report required. The commissioner shall contract with an independent
161.30contractor to evaluate the early learning scholarship program. The evaluation must
161.31include recommendations regarding the appropriate scholarship amount, efficiency, and
161.32effectiveness of the administration, and impact on kindergarten readiness and student
161.33outcomes by program setting, including Head Start programs, school-based prekindergarten
161.34and preschool programs, and other early education and child care programs. The report
162.1must also include the number of scholarship recipients in school-based, home-based,
162.2and center-based programs as well as a geographic summary of scholarship recipients
162.3by county. By January 15, 2016, the commissioner shall submit a written copy of the
162.4evaluation to the chairs and ranking minority members of the legislative committees and
162.5divisions with primary jurisdiction over kindergarten through grade 12 education.

162.6    Sec. 36. Minnesota Statutes 2012, section 124D.522, is amended to read:
162.7124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
162.8GRANTS.
162.9(a) The commissioner, in consultation with the policy review task force under
162.10section 124D.521, may make grants to nonprofit organizations to provide services that
162.11are not offered by a district adult basic education program or that are supplemental to
162.12either the statewide adult basic education program, or a district's adult basic education
162.13program. The commissioner may make grants for: staff development for adult basic
162.14education teachers and administrators; training for volunteer tutors; training, services, and
162.15materials for serving disabled students through adult basic education programs; statewide
162.16promotion of adult basic education services and programs; development and dissemination
162.17of instructional and administrative technology for adult basic education programs;
162.18programs which primarily serve communities of color; adult basic education distance
162.19learning projects, including television instruction programs; and other supplemental
162.20services to support the mission of adult basic education and innovative delivery of adult
162.21basic education services.
162.22(b) The commissioner must establish eligibility criteria and grant application
162.23procedures. Grants under this section must support services throughout the state, focus on
162.24educational results for adult learners, and promote outcome-based achievement through
162.25adult basic education programs. Beginning in fiscal year 2002, the commissioner may
162.26make grants under this section from the state total adult basic education aid set aside for
162.27supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
162.28for supplemental service grants must be used for grants for adult basic education programs
162.29to encourage and support innovations in adult basic education instruction and service
162.30delivery. A grant to a single organization cannot exceed 20 40 percent of the total
162.31supplemental services aid. Nothing in this section prevents an approved adult basic
162.32education program from using state or federal aid to purchase supplemental services.

162.33    Sec. 37. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1,
162.34is amended to read:
163.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
163.2education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
163.3during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
163.4(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
163.5fiscal years equals:
163.6    (1) the state total adult basic education aid for the preceding fiscal year plus any
163.7amount that is not paid for during the previous fiscal year, as a result of adjustments under
163.8subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
163.9    (2) the lesser of:
163.10    (i) 1.025 1.03; or
163.11    (ii) the average growth in state total contact hours over the prior ten program years.
163.12    Beginning in fiscal year 2002, two Three percent of the state total adult basic
163.13education aid must be set aside for adult basic education supplemental service grants
163.14under section 124D.522.
163.15    (b) The state total adult basic education aid, excluding basic population aid, equals
163.16the difference between the amount computed in paragraph (a), and the state total basic
163.17population aid under subdivision 2.
163.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
163.19and later.

163.20    Sec. 38. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
163.21    Subd. 3. Program revenue. Adult basic education programs established under
163.22section 124D.52 and approved by the commissioner are eligible for revenue under this
163.23subdivision. For fiscal year 2001 and later, adult basic education revenue for each
163.24approved program equals the sum of:
163.25(1) the basic population aid under subdivision 2 for districts participating in the
163.26program during the current program year; plus
163.27(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
163.28ratio of the contact hours for students participating in the program during the first prior
163.29program year to the state total contact hours during the first prior program year; plus
163.30(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
163.31the ratio of the enrollment of English learners during the second prior school year in
163.32districts participating in the program during the current program year to the state total
163.33enrollment of English learners during the second prior school year in districts participating
163.34in adult basic education programs during the current program year; plus
164.1(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
164.2the ratio of the latest federal census count of the number of adults aged 20 25 or older
164.3with no diploma residing in the districts participating in the program during the current
164.4program year to the latest federal census count of the state total number of adults aged 20
164.5 25 or older with no diploma residing in the districts participating in adult basic education
164.6programs during the current program year.

164.7    Sec. 39. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
164.8    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
164.9through grade 12 who meets the following requirements:
164.10(1) the pupil, as declared by a parent or guardian first learned a language other than
164.11English, comes from a home where the language usually spoken is other than English, or
164.12usually speaks a language other than English; and
164.13(2) the pupil is determined by a valid assessment measuring the pupil's English
164.14language proficiency and by developmentally appropriate measures, which might include
164.15observations, teacher judgment, parent recommendations, or developmentally appropriate
164.16assessment instruments, to lack the necessary English skills to participate fully in
164.17academic classes taught in English.
164.18(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school
164.19in grades any grade 4 through 12 who was enrolled in a Minnesota public school on
164.20the dates during in the previous school year when a commissioner provided took a
164.21commissioner-provided assessment that measures measuring the pupil's emerging
164.22academic English was administered, shall not be counted as an English learner in
164.23calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
164.24 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil
164.25scored below the state cutoff score or is otherwise counted as a nonproficient participant
164.26on an the assessment measuring the pupil's emerging academic English provided by the
164.27commissioner during the previous school year or in the judgment of the pupil's classroom
164.28teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
164.29academic language proficiency in English, including oral academic language, sufficient to
164.30successfully and fully participate in the general core curriculum in the regular classroom.
164.31(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
164.3212 shall not be counted as an English learner in calculating English learner pupil units
164.33under section 126C.05, subdivision 17, and shall not generate state English learner aid
164.34under section 124D.65, subdivision 5, if:
165.1(1) the pupil is not enrolled during the current fiscal year in an educational program
165.2for English learners in accordance with under sections 124D.58 to 124D.64; or
165.3(2) the pupil has generated five six or more years of average daily membership in
165.4Minnesota public schools since July 1, 1996.
165.5EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
165.6later.

165.7    Sec. 40. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1,
165.8is amended to read:
165.9    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
165.10district's initial achievement and integration revenue equals the lesser of 100.3 percent of
165.11the district's expenditures under the budget approved by the commissioner under section
165.12124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
165.13revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
165.14units for that year times the ratio of the district's enrollment of protected students for the
165.15previous school year to total enrollment for the previous school year and (2) the greater of
165.16zero or 66 percent of the difference between the district's integration revenue for fiscal
165.17year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
165.18(b) In each year, 0.3 percent of each district's initial achievement and integration
165.19revenue is transferred to the department for the oversight and accountability activities
165.20required under this section and section 124D.861.
165.21EFFECTIVE DATE.This section is effective the day following final enactment
165.22and applies to revenue for fiscal year 2014 and later.

165.23    Sec. 41. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2,
165.24is amended to read:
165.25    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
165.26revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
165.27be A district's incentive revenue equals the lesser of the maximum incentive revenue
165.28or the district's expenditures for implementing a voluntary plan to reduce racial and
165.29economic enrollment disparities through intradistrict and interdistrict activities that have
165.30been approved as a part of the district's achievement and integration plan under the budget
165.31approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
165.32EFFECTIVE DATE.This section is effective the day following final enactment
165.33and applies to revenue for fiscal year 2014 and later.

166.1    Sec. 42. Minnesota Statutes 2012, section 125A.08, is amended to read:
166.2125A.08 INDIVIDUALIZED EDUCATION PROGRAMS; DATA
166.3REPORTING REQUIREMENTS.
166.4    Subdivision 1. Requirements for individualized education programs. (a) At the
166.5beginning of each school year, each school district shall have in effect, for each child with
166.6a disability, an individualized education program.
166.7(b) As defined in this section, every district must ensure the following:
166.8(1) all students with disabilities are provided the special instruction and services
166.9which are appropriate to their needs. Where the individualized education program team
166.10has determined appropriate goals and objectives based on the student's needs, including
166.11the extent to which the student can be included in the least restrictive environment,
166.12and where there are essentially equivalent and effective instruction, related services, or
166.13assistive technology devices available to meet the student's needs, cost to the district may
166.14be among the factors considered by the team in choosing how to provide the appropriate
166.15services, instruction, or devices that are to be made part of the student's individualized
166.16education program. The individualized education program team shall consider and
166.17may authorize services covered by medical assistance according to section 256B.0625,
166.18subdivision 26
. The student's needs and the special education instruction and services to
166.19be provided must be agreed upon through the development of an individualized education
166.20program. The program must address the student's need to develop skills to live and work
166.21as independently as possible within the community. The individualized education program
166.22team must consider positive behavioral interventions, strategies, and supports that address
166.23behavior for children with attention deficit disorder or attention deficit hyperactivity
166.24disorder. During grade 9, the program must address the student's needs for transition from
166.25secondary services to postsecondary education and training, employment, community
166.26participation, recreation, and leisure and home living. In developing the program, districts
166.27must inform parents of the full range of transitional goals and related services that should
166.28be considered. The program must include a statement of the needed transition services,
166.29including a statement of the interagency responsibilities or linkages or both before
166.30secondary services are concluded;
166.31(2) children with a disability under age five and their families are provided special
166.32instruction and services appropriate to the child's level of functioning and needs;
166.33(3) children with a disability and their parents or guardians are guaranteed procedural
166.34safeguards and the right to participate in decisions involving identification, assessment
166.35including assistive technology assessment, and educational placement of children with a
166.36disability;
167.1(4) eligibility and needs of children with a disability are determined by an initial
167.2assessment or reassessment, which may be completed using existing data under United
167.3States Code, title 20, section 33, et seq.;
167.4(5) to the maximum extent appropriate, children with a disability, including those
167.5in public or private institutions or other care facilities, are educated with children who
167.6are not disabled, and that special classes, separate schooling, or other removal of children
167.7with a disability from the regular educational environment occurs only when and to the
167.8extent that the nature or severity of the disability is such that education in regular classes
167.9with the use of supplementary services cannot be achieved satisfactorily;
167.10(6) in accordance with recognized professional standards, testing and evaluation
167.11materials, and procedures used for the purposes of classification and placement of children
167.12with a disability are selected and administered so as not to be racially or culturally
167.13discriminatory; and
167.14(7) the rights of the child are protected when the parents or guardians are not known
167.15or not available, or the child is a ward of the state.
167.16(c) For paraprofessionals employed to work in programs for students with
167.17disabilities, the school board in each district shall ensure that:
167.18(1) before or immediately upon employment, each paraprofessional develops
167.19sufficient knowledge and skills in emergency procedures, building orientation, roles and
167.20responsibilities, confidentiality, vulnerability, and reportability, among other things, to
167.21begin meeting the needs of the students with whom the paraprofessional works;
167.22(2) annual training opportunities are available to enable the paraprofessional to
167.23continue to further develop the knowledge and skills that are specific to the students with
167.24whom the paraprofessional works, including understanding disabilities, following lesson
167.25plans, and implementing follow-up instructional procedures and activities; and
167.26(3) a districtwide process obligates each paraprofessional to work under the ongoing
167.27direction of a licensed teacher and, where appropriate and possible, the supervision of a
167.28school nurse.
167.29    Subd. 2. Online reporting of required data. (a) To ensure a strong focus
167.30on outcomes for children with disabilities informs federal and state compliance and
167.31accountability requirements and to increase opportunities for special educators and
167.32related-services providers to focus on teaching children with disabilities, the commissioner
167.33must integrate, customize, and sustain a streamlined, user-friendly statewide online system,
167.34with a single, integrated model online form, for effectively and efficiently collecting
167.35and reporting required special education–related data to individuals with a legitimate
167.36educational interest and who are authorized by law to access the data. Among other
168.1data-related requirements, the online system must successfully interface with existing state
168.2reporting systems such as MARSS and Child Count and with districts' local data systems.
168.3(b) The commissioner must consult with qualified experts, including information
168.4technology specialists, licensed special education teachers and directors of special
168.5education, related-services providers, third-party vendors, a designee of the commissioner
168.6of human services, parents of children with disabilities, representatives of advocacy groups
168.7representing children with disabilities, and representatives of school districts and special
168.8education cooperatives on integrating, field testing, customizing, and sustaining this simple,
168.9easily accessible, efficient, and effective online data system for uniform statewide reporting
168.10of required due process compliance data. Among other outcomes, the system must:
168.11    (1) reduce special education teachers' paperwork burden and thereby increase the
168.12teachers' opportunities to focus on teaching children;
168.13(2) to the extent authorized by chapter 13 or other applicable state or federal law
168.14governing access to and dissemination of educational records, provide for efficiently and
168.15effectively transmitting the records of all transferring children with disabilities, including
168.16highly mobile and homeless children with disabilities, among others, to give an enrolling
168.17school, school district, facility, or other institution immediate access to information about
168.18the transferring child and to avoid fragmented service delivery;
168.19(3) address language and other barriers and disparities that prevent parents from
168.20understanding and communicating information about the needs of their children with
168.21disabilities;
168.22(4) facilitate school districts' ability to bill medical assistance, MinnesotaCare,
168.23and other third-party payers for the costs of providing individualized education program
168.24health-related services to an eligible child with disabilities;
168.25(5) help continuously improve the interface among the online systems serving
168.26children with disabilities in order to maintain and reinforce the children's ability to learn;
168.27and
168.28(6) have readily accessible expert technical assistance to maintain, sustain, and
168.29improve the online system.
168.30(c) The commissioner must use the federal Office of Special Education Programs
168.31model forms for the (1) individualized education program, (2) notice of procedural
168.32safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate
168.33and customize a state-sponsored universal special education online case management
168.34system, consistent with the requirements of state law and this subdivision for integrating,
168.35customizing, and sustaining a statewide online reporting system. The commissioner must
168.36use a request for proposal process to contract for the technology and software needed
169.1for integrating and customizing the online system in order for the system to be fully
169.2functional, consistent with the requirements of this subdivision. This online system must
169.3be made available to school districts without charge beginning in the 2015-2016 school
169.4year. All actions in which data in the system are entered, updated, accessed, or shared or
169.5disseminated outside of the system, must be recorded in a data audit trail. The audit trail
169.6must identify the user responsible for the action, and the date and time the action occurred.
169.7Data contained in the audit trail maintain the same classification as the underlying data
169.8that was affected by the action, and may be accessed by the responsible authority at any
169.9time for purposes of auditing the system's user activity and security safeguards. For the
169.102015-2016 through 2017-2018 school years, school districts may use this online system or
169.11may contract with an outside vendor for compliance reporting. Beginning in the 2018-2019
169.12school year and later, school districts must use this online system for compliance reporting.
169.13(d) Consistent with this subdivision, the commissioner must establish a public
169.14Internet Web interface to provide information to educators, parents, and the public about
169.15the form and content of required special education reports, to respond to queries from
169.16educators, parents, and the public about specific aspects of special education reports and
169.17reporting, and to use the information garnered from the interface to streamline and revise
169.18special education reporting on the online system under this subdivision. The public Internet
169.19Web interface must not provide access to the educational records of any individual child.
169.20(e) The commissioner annually by February 1 must submit to the legislature a report
169.21on the status, recent changes, and sustainability of the online system under this subdivision.

169.22    Sec. 43. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
169.23amended to read:
169.24    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
169.25later, when a school district provides special instruction and services for a pupil with
169.26a disability as defined in section 125A.02 outside the district of residence, excluding
169.27a pupil for whom an adjustment to special education aid is calculated according to
169.28section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
169.29resident district must be reduced by an amount equal to (1) the actual cost of providing
169.30special instruction and services to the pupil, including a proportionate amount for special
169.31transportation and unreimbursed building lease and debt service costs for facilities used
169.32primarily for special education, plus (2) the amount of general education revenue and
169.33referendum equalization aid attributable to that pupil, calculated using the resident district's
169.34average general education revenue and referendum equalization aid per adjusted pupil
169.35unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
170.1revenue, minus (3) the amount of special education aid for children with a disability
170.2under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
170.3special instruction and services outside the regular classroom for more than 60 percent
170.4of the school day, the amount of general education revenue and referendum equalization
170.5aid, excluding portions attributable to district and school administration, district support
170.6services, operations and maintenance, capital expenditures, and pupil transportation,
170.7attributable to that pupil for the portion of time the pupil receives special instruction
170.8and services outside of the regular classroom, calculated using the resident district's
170.9average general education revenue and referendum equalization aid per adjusted pupil unit
170.10excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
170.11and the serving district's basic skills revenue, elementary sparsity revenue and secondary
170.12sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
170.13served by a cooperative unit without a fiscal agent school district, the general education
170.14revenue and referendum equalization aid attributable to a pupil must be calculated using
170.15the resident district's average general education revenue and referendum equalization aid
170.16excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
170.17revenue. Special education aid paid to the district or cooperative providing special
170.18instruction and services for the pupil must be increased by the amount of the reduction in
170.19the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
170.20and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
170.21expenditures on the resident school district's books of account under sections 123B.75
170.22and 123B.76. If the resident district's special education aid is insufficient to make the full
170.23adjustment, the remaining adjustment shall be made to other state aid due to the district.
170.24    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
170.25(b) to (d), a charter school where more than 30 percent of enrolled students receive special
170.26education and related services, a site approved under section 125A.515, an intermediate
170.27district, a special education cooperative, or a school district that served as the applicant
170.28agency for a group of school districts for federal special education aids for fiscal year
170.292006 may apply to the commissioner for authority to charge the resident district an
170.30additional amount to recover any remaining unreimbursed costs of serving pupils with
170.31a disability. The application must include a description of the costs and the calculations
170.32used to determine the unreimbursed portion to be charged to the resident district. Amounts
170.33approved by the commissioner under this paragraph must be included in the tuition billings
170.34or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
170.35(b) to (d), as applicable.
171.1    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
171.2(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
171.3means the sum of the general education revenue according to section 126C.10, subdivision
171.41, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
171.5(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
171.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
171.7and later.

171.8    Sec. 44. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
171.9amended to read:
171.10    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
171.11the definitions in this subdivision apply.
171.12    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
171.13For the purposes of computing basic revenue pursuant to this section, each child with a
171.14disability shall be counted as prescribed in section 126C.05, subdivision 1.
171.15    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
171.16support services staff providing services to students. Essential personnel may also include
171.17special education paraprofessionals or clericals providing support to teachers and students
171.18by preparing paperwork and making arrangements related to special education compliance
171.19requirements, including parent meetings and individualized education programs. Essential
171.20personnel does not include administrators and supervisors.
171.21    (d) "Average daily membership" has the meaning given it in section 126C.05.
171.22    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
171.231.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
171.24program growth factor for the previous year for fiscal year 2018 and later.
171.25(f) "Nonfederal special education expenditure" means all direct expenditures that
171.26are necessary and essential to meet the district's obligation to provide special instruction
171.27and services to children with a disability according to sections 124D.454, 125A.03 to
171.28125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
171.29the department under section 125A.75, subdivision 4, excluding expenditures:
171.30(1) reimbursed with federal funds;
171.31(2) reimbursed with other state aids under this chapter;
171.32(3) for general education costs of serving students with a disability;
171.33(4) for facilities;
171.34(5) for pupil transportation; and
171.35(6) for postemployment benefits.
172.1(g) "Old formula special education expenditures" means expenditures eligible for
172.2revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
172.3    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
172.4for the Blind, expenditures are limited to the salary and fringe benefits of one-to-one
172.5instructional and behavior management aides assigned to a child attending the academy, if
172.6the aides are required by the child's individualized education program.
172.7(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
172.82014 and 2.27 percent for fiscal year 2015.
172.9(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
172.10for fiscal year 2015.
172.11(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
172.12for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
172.13aid increase limit for the previous fiscal year and $40.

172.14    Sec. 45. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a,
172.15is amended to read:
172.16    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
172.17special education initial aid equals the sum of:
172.18(1) the lesser least of 62 percent of the district's old formula special education
172.19expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
172.20percent of the district's nonfederal special education expenditures for the prior year,
172.21excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
172.22following amounts, computed using prior fiscal year data, and the program growth factor:
172.23(i) the product of the district's average daily membership served and the sum of:
172.24(A) $450; plus
172.25(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
172.26who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
172.27who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
172.28(C) .008 times the district's average daily membership served; plus
172.29(ii) $10,400 times the December 1 child count for the primary disability areas of
172.30autism spectrum disorders, developmental delay, and severely multiply impaired; plus
172.31(iii) $18,000 times the December 1 child count for the primary disability areas of
172.32deaf and hard-of-hearing and emotional or behavioral disorders; plus
172.33(iv) $27,000 times the December 1 child count for the primary disability areas of
172.34developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
172.35physically impaired, visually impaired, and deafblind; plus
173.1(2) the cost of providing transportation services for children with disabilities under
173.2section 123B.92, subdivision 1, paragraph (b), clause (4).
173.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
173.4and later.

173.5    Sec. 46. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b,
173.6is amended to read:
173.7    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
173.8subsidy reduction aid for a school district, not including a charter school, equals the
173.9lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
173.10daily membership served or (b) the sum of the product of the cross subsidy reduction aid
173.11percentage, the district's average daily membership served, and the sum of:
173.12(1) $450; plus
173.13(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
173.14who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
173.15who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
173.16(3) .008 times the district's average daily membership served; plus the product of the
173.17cross subsidy aid percentage and the sum of:
173.18(i) $10,100 times the December 1 child count for the primary disability areas of
173.19autism spectrum disorders, developmental delay, and severely multiply impaired; plus
173.20(ii) $17,500 times the December 1 child count for the primary disability areas of
173.21deaf and hard-of-hearing and emotional or behavioral disorders; plus
173.22(iii) $26,000 times the December 1 child count for the primary disability areas of
173.23developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
173.24physically impaired, visually impaired, and deafblind.
173.25EFFECTIVE DATE.This section is effective the day following final enactment
173.26and applies to revenue for fiscal year 2014 and later.

173.27    Sec. 47. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c,
173.28is amended to read:
173.29    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
173.30district's special education aid equals the sum of the district's special education initial aid
173.31under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
173.32the district's excess cost aid under section 125A.79, subdivision 7.
174.1(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
174.2the district's special education initial aid under subdivision 2a and the district's excess cost
174.3aid under section 125A.79, subdivision 5.
174.4(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
174.5a school district must not exceed the sum of the special education aid the district would
174.6have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
174.7and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
174.8127A.47, subdivision 7 , and the product of the district's average daily membership served
174.9and the special education aid increase limit.
174.10(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
174.11aid for a school district must not exceed the sum of: (i) the product of the district's average
174.12daily membership served and the special education aid increase limit and (ii) the product
174.13of the sum of the special education aid the district would have received for fiscal year 2016
174.14under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
174.15to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
174.16the district's average daily membership served for the current fiscal year to the district's
174.17average daily membership served for fiscal year 2016, and the program growth factor.
174.18(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
174.19aid for a school district, not including a charter school, must not be less than the lesser of
174.20(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
174.21product of the sum of the special education aid the district would have received for fiscal
174.22year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
174.23according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
174.24ratio of the district's adjusted daily membership for the current fiscal year to the district's
174.25average daily membership for fiscal year 2016, and the program growth factor.
174.26EFFECTIVE DATE.This section is effective the day following final enactment
174.27and applies to revenue for fiscal year 2014 and later.

174.28    Sec. 48. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
174.29amended to read:
174.30    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
174.31subdivision apply.
174.32    (a) "Unreimbursed old formula special education expenditures" means:
174.33    (1) old formula special education expenditures for the prior fiscal year; minus
174.34    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
174.35125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
175.1section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
175.2initial aid under section 125A.76, subdivision 2a; minus
175.3(3) for fiscal year 2016 and later, the amount of general education revenue, excluding
175.4local optional revenue, plus local optional aid and referendum equalization aid for the
175.5prior fiscal year attributable to pupils receiving special instruction and services outside the
175.6regular classroom for more than 60 percent of the school day for the portion of time the
175.7pupils receive special instruction and services outside the regular classroom, excluding
175.8portions attributable to district and school administration, district support services,
175.9operations and maintenance, capital expenditures, and pupil transportation.
175.10(b) "Unreimbursed nonfederal special education expenditures" means:
175.11(1) nonfederal special education expenditures for the prior fiscal year; minus
175.12(2) special education initial aid under section 125A.76, subdivision 2a; minus
175.13(3) the amount of general education revenue and referendum equalization aid for the
175.14prior fiscal year attributable to pupils receiving special instruction and services outside the
175.15regular classroom for more than 60 percent of the school day for the portion of time the
175.16pupils receive special instruction and services outside of the regular classroom, excluding
175.17portions attributable to district and school administration, district support services,
175.18operations and maintenance, capital expenditures, and pupil transportation.
175.19    (c) "General revenue" for a school district means the sum of the general education
175.20revenue according to section 126C.10, subdivision 1, excluding alternative teacher
175.21compensation revenue, minus transportation sparsity revenue minus, local optional
175.22revenue, and total operating capital revenue. "General revenue" for a charter school means
175.23the sum of the general education revenue according to section 124D.11, subdivision 1, and
175.24transportation revenue according to section 124D.11, subdivision 2, excluding alternative
175.25teacher compensation revenue, minus referendum equalization aid minus, transportation
175.26sparsity revenue minus, and operating capital revenue.
175.27EFFECTIVE DATE.This section is effective the day following final enactment
175.28and applies to revenue for fiscal year 2014 and later.

175.29    Sec. 49. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
175.30amended to read:
175.31    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
175.32 excess cost aid equals the greater of:
175.33    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
175.34special education expenditures and (ii) 7.0 percent of the district's general revenue;
176.1    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
176.2special education expenditures and (ii) 2.5 percent of the district's general revenue; or
176.3    (3) zero.
176.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
176.5and later.

176.6    Sec. 50. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
176.7amended to read:
176.8    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
176.9services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
176.10treatment facility by court action in a state that does not have a reciprocity agreement with
176.11the commissioner under section 125A.155, the resident school district shall submit the
176.12balance receive special education out-of-state tuition aid equal to the amount of the tuition
176.13bills, minus (1) the general education revenue, excluding basic skills revenue and the local
176.14optional levy attributable to the pupil, calculated using the resident district's average
176.15general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
176.16attributable to the pupil, calculated using the resident district's average general education
176.17revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
176.18education contracted services initial revenue aid attributable to the pupil.
176.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
176.20and later.

176.21    Sec. 51. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15,
176.22is amended to read:
176.23    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
176.24year program under section 124D.128, an area learning center or an alternative learning
176.25program approved by the commissioner under sections 123A.05 and 123A.06, or a
176.26contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
176.27subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
176.28than 935 hours in a school year for an elementary student, more than 850 hours in a school
176.29year for a kindergarten student without a disability in an all-day kindergarten program,
176.30or more than 425 hours in a school year for a half-day kindergarten student without a
176.31disability, that pupil may be counted as more than one pupil in average daily membership
176.32for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
176.33be determined by the ratio of the number of hours of instruction provided to that pupil in
177.1excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
177.2secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
177.3or the number of hours required for a full-time elementary pupil in the district to 935 for
177.4an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
177.5number of hours required for a full-time kindergarten student without a disability in the
177.6district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
177.7425 hours or the number of hours required for a half-time kindergarten student without a
177.8disability in the district to 425 for a half-day kindergarten student without a disability.
177.9Hours that occur after the close of the instructional year in June shall be attributable to
177.10the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
177.11counted as more than 1.2 pupils in average daily membership under this subdivision.
177.12(b)(i) To receive general education revenue for a pupil in an area learning center
177.13or alternative learning program that has an independent study component, a district
177.14must meet the requirements in this paragraph. The district must develop, for the pupil,
177.15a continual learning plan consistent with section 124D.128, subdivision 3. Each school
177.16district that has an area learning center or alternative learning program must reserve
177.17revenue in an amount equal to at least between 90 and 100 percent of the district average
177.18general education revenue per pupil unit, minus an amount equal to the product of the
177.19formula allowance according to section 126C.10, subdivision 2, times .0466, calculated
177.20without basic skills revenue, local optional revenue, and transportation sparsity revenue,
177.21times the number of pupil units generated by students attending an area learning center
177.22or alternative learning program. The amount of reserved revenue available under this
177.23subdivision may only be spent for program costs associated with the area learning center or
177.24alternative learning program. Basic skills revenue generated according to section 126C.10,
177.25subdivision 4
, by pupils attending the eligible program must be allocated to the program.
177.26(ii) General education revenue for a pupil in a state-approved alternative program
177.27without an independent study component must be prorated for a pupil participating for less
177.28than a full year, or its equivalent. The district must develop a continual learning plan for
177.29the pupil, consistent with section 124D.128, subdivision 3. Each school district that has an
177.30area learning center or alternative learning program must reserve revenue in an amount
177.31equal to at least between 90 and 100 percent of the district average general education
177.32revenue per pupil unit, minus an amount equal to the product of the formula allowance
177.33according to section 126C.10, subdivision 2, times .0466, calculated without basic skills
177.34revenue, local optional revenue, and transportation sparsity revenue, times the number of
177.35pupil units generated by students attending an area learning center or alternative learning
177.36program. The amount of reserved revenue available under this subdivision may only be
178.1spent for program costs associated with the area learning center or alternative learning
178.2program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
178.3pupils attending the eligible program must be allocated to the program.
178.4(iii) General education revenue for a pupil in a state-approved alternative program
178.5that has an independent study component must be paid for each hour of teacher contact
178.6time and each hour of independent study time completed toward a credit or graduation
178.7standards necessary for graduation. Average daily membership for a pupil shall equal the
178.8number of hours of teacher contact time and independent study time divided by 1,020.
178.9(iv) For a state-approved alternative program having an independent study
178.10component, the commissioner shall require a description of the courses in the program, the
178.11kinds of independent study involved, the expected learning outcomes of the courses, and
178.12the means of measuring student performance against the expected outcomes.

178.13    Sec. 52. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a,
178.14is amended to read:
178.15    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
178.16fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
178.17cost pupil units of the district for each pupil in average daily membership in excess of 1.0
178.18and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
178.19time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
178.20of the adjusted pupil units of the district for each pupil in average daily membership in
178.21excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
178.22(b) A school district's extended time revenue may be used for extended day
178.23programs, extended week programs, summer school, and other programming authorized
178.24under the learning year program.
178.25EFFECTIVE DATE.This section is effective the day following final enactment
178.26and applies to revenue for fiscal year 2014 and later.

178.27    Sec. 53. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d,
178.28is amended to read:
178.29    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
178.30enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
178.31formula allowance for that year and (2) the difference between the adjusted pupil units for
178.32the preceding year and the adjusted pupil units for the current year.
179.1(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
179.2enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
179.3district or charter school in which the pupil was last counted in average daily membership.

179.4    Sec. 54. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 13a,
179.5is amended to read:
179.6    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
179.7year 2015 and later, a district may levy an amount not more than the product of its
179.8operating capital revenue for the fiscal year times the lesser of one or the ratio of its
179.9adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
179.10equalizing factor. The operating capital equalizing factor equals $14,500 $14,500 for
179.11fiscal year 2015, $15,315 for fiscal year 2016, and $15,043 for fiscal year 2017 and later.

179.12    Sec. 55. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24,
179.13is amended to read:
179.14    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
179.15    (1) the school district's adjusted pupil unit amount of basic revenue, transition
179.16revenue, and referendum revenue is less than the value of the school district at or
179.17immediately above the 95th percentile of school districts in its equity region for those
179.18revenue categories; and
179.19    (2) the school district's administrative offices are not located in a city of the first
179.20class on July 1, 1999.
179.21    (b) Equity revenue for a qualifying district that receives referendum revenue under
179.22section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
179.23units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
179.24equity index computed under subdivision 27.
179.25    (c) Equity revenue for a qualifying district that does not receive referendum revenue
179.26under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
179.27units for that year times $14.
179.28    (d) A school district's equity revenue is increased by the greater of zero or an amount
179.29equal to the district's resident adjusted pupil units times the difference between ten percent
179.30of the statewide average amount of referendum revenue per resident adjusted pupil unit for
179.31that year and the district's referendum revenue per resident adjusted pupil unit. A school
179.32district's revenue under this paragraph must not exceed $100,000 for that year.
179.33    (e) A school district's equity revenue for a school district located in the metro equity
179.34region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
180.1    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
180.2units.
180.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
180.4and later.

180.5    Sec. 56. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
180.6    Subd. 25. Regional equity gap. The regional equity gap equals the difference
180.7between the value of the school district at or immediately above the fifth percentile of
180.8adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
180.9district at or immediately above the 95th percentile of adjusted general revenue per
180.10adjusted marginal cost pupil unit.
180.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
180.12and later.

180.13    Sec. 57. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
180.14    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
180.15or the difference between the district's adjusted general revenue and the value of the
180.16school district at or immediately above the regional 95th percentile of adjusted general
180.17revenue per adjusted marginal cost pupil unit.
180.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
180.19and later.

180.20    Sec. 58. Minnesota Statutes 2012, section 126C.10, subdivision 28, is amended to read:
180.21    Subd. 28. Equity region. For the purposes of computing equity revenue under
180.22subdivision 24, a district with its administrative office located in Anoka, Carver, Dakota,
180.23Hennepin, Ramsey, Scott, or Washington County on January 1, 2012, with any of its area
180.24located within the seven-county metropolitan area is part of the metro equity region. All
180.25other districts are part of the rural equity region.
180.26EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

180.27    Sec. 59. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
180.28is amended to read:
180.29    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
180.30sum of the transition revenue the district would have received for fiscal year 2015 under
181.1Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
181.2of zero or the difference between:
181.3    (1) the sum of:
181.4    (i) the general education revenue the district would have received for fiscal year
181.52015 according to Minnesota Statutes 2012, section 126C.10;
181.6(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
181.7Statutes 2012, section 124D.86;
181.8(iii) the pension adjustment the district would have received for fiscal year 2015
181.9under Minnesota Statutes 2012, section 127A.50;
181.10(iv) the special education aid the district would have received for fiscal year 2015
181.11under Minnesota Statutes 2012, section 125A.76; and
181.12(v) the special education excess cost aid the district would have received for fiscal
181.13year 2015 under Minnesota Statutes 2012, section 125A.79; and
181.14(2) the sum of the district's:
181.15(i) general education revenue for fiscal year 2015 excluding transition revenue
181.16under this section;
181.17(ii) achievement and integration revenue for fiscal year 2015 under section
181.18124D.862 ; and
181.19(iii) special education aid for fiscal year 2015 under section 125A.76; and
181.20(iv) alternative teacher compensation revenue for fiscal year 2015 under section
181.21122A.415,
181.22divided by the number of adjusted pupil units for fiscal year 2015.
181.23    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
181.24the district's transition allowance times the district's adjusted pupil units.
181.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
181.26and later.

181.27    Sec. 60. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
181.28amended to read:
181.29    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
181.30 A district's referendum equalization levy equals the sum of the first tier referendum
181.31equalization levy, the second tier referendum equalization levy, and the third tier
181.32referendum equalization levy.
182.1(b) A district's first tier referendum equalization levy equals the district's first tier
182.2referendum equalization revenue times the lesser of one or the ratio of the district's
182.3referendum market value per resident pupil unit to $880,000.
182.4(c) A district's second tier referendum equalization levy equals the district's second
182.5tier referendum equalization revenue times the lesser of one or the ratio of the district's
182.6referendum market value per resident pupil unit to $510,000.
182.7(d) A district's third tier referendum equalization levy equals the district's third
182.8tier referendum equalization revenue times the lesser of one or the ratio of the district's
182.9referendum market value per resident pupil unit to $290,000.

182.10    Sec. 61. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
182.11is amended to read:
182.12    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
182.13of a district's referendum equalization aid and local optional aid under section 126C.10,
182.14subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
182.15equalization aid the district would have received for fiscal year 2015 under Minnesota
182.16Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
182.17received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
182.18(a), (b), and (c).
182.19(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and local
182.20optional aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, for a
182.21district qualifying for additional aid under paragraph (a) for fiscal year 2015, must not
182.22be less than the product of (1) the district's referendum equalization aid for fiscal year
182.232015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
182.24school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
182.25of one or the ratio of the district's referendum market value used for fiscal year 2015
182.26referendum equalization calculations to the district's referendum market value used for
182.27that year's referendum equalization calculations.
182.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
182.29and later.

182.30    Sec. 62. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
182.31amended to read:
182.32    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
182.33subdivision 1
, may be increased in the amount approved by the voters of the district
182.34at a referendum called for the purpose. The referendum may be called by the board.
183.1The referendum must be conducted one or two calendar years before the increased levy
183.2authority, if approved, first becomes payable. Only one election to approve an increase
183.3may be held in a calendar year. Unless the referendum is conducted by mail under
183.4subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
183.5first Monday in November. The ballot must state the maximum amount of the increased
183.6revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
183.7of increased revenue per adjusted pupil unit that differs from year to year over the number
183.8of years for which the increased revenue is authorized or may state that the amount shall
183.9increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
183.10annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
183.11state that existing referendum levy authority is expiring. In this case, the ballot may also
183.12compare the proposed levy authority to the existing expiring levy authority, and express
183.13the proposed increase as the amount, if any, over the expiring referendum levy authority.
183.14The ballot must designate the specific number of years, not to exceed ten, for which the
183.15referendum authorization applies. The ballot, including a ballot on the question to revoke
183.16or reduce the increased revenue amount under paragraph (c), must abbreviate the term
183.17"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
183.18be modified to read, in cases of renewing existing levies at the same amount per pupil
183.19as in the previous year:
183.20"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
183.21TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
183.22SCHEDULED TO EXPIRE."
183.23    The ballot may contain a textual portion with the information required in this
183.24subdivision and a question stating substantially the following:
183.25    "Shall the increase in the revenue proposed by (petition to) the board of .........,
183.26School District No. .., be approved?"
183.27    If approved, an amount equal to the approved revenue per adjusted pupil unit times
183.28the adjusted pupil units for the school year beginning in the year after the levy is certified
183.29shall be authorized for certification for the number of years approved, if applicable, or
183.30until revoked or reduced by the voters of the district at a subsequent referendum.
183.31    (b) The board must prepare and deliver by first class mail at least 15 days but no more
183.32than 30 days before the day of the referendum to each taxpayer a notice of the referendum
183.33and the proposed revenue increase. The board need not mail more than one notice to any
183.34taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
183.35those shown to be owners on the records of the county auditor or, in any county where
183.36tax statements are mailed by the county treasurer, on the records of the county treasurer.
184.1Every property owner whose name does not appear on the records of the county auditor
184.2or the county treasurer is deemed to have waived this mailed notice unless the owner
184.3has requested in writing that the county auditor or county treasurer, as the case may be,
184.4include the name on the records for this purpose. The notice must project the anticipated
184.5amount of tax increase in annual dollars for typical residential homesteads, agricultural
184.6homesteads, apartments, and commercial-industrial property within the school district.
184.7    The notice for a referendum may state that an existing referendum levy is expiring
184.8and project the anticipated amount of increase over the existing referendum levy in
184.9the first year, if any, in annual dollars for typical residential homesteads, agricultural
184.10homesteads, apartments, and commercial-industrial property within the district.
184.11    The notice must include the following statement: "Passage of this referendum will
184.12result in an increase in your property taxes." However, in cases of renewing existing levies,
184.13the notice may include the following statement: "Passage of this referendum extends an
184.14existing operating referendum at the same amount per pupil as in the previous year."
184.15    (c) A referendum on the question of revoking or reducing the increased revenue
184.16amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
184.17revoke or reduce the revenue amount must state the amount per resident marginal cost
184.18 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
184.19by the voters of the district pursuant to paragraph (a) must be available to the school
184.20district at least once before it is subject to a referendum on its revocation or reduction for
184.21subsequent years. Only one revocation or reduction referendum may be held to revoke or
184.22reduce referendum revenue for any specific year and for years thereafter.
184.23    (d) The approval of 50 percent plus one of those voting on the question is required to
184.24pass a referendum authorized by this subdivision.
184.25    (e) At least 15 days before the day of the referendum, the district must submit a
184.26copy of the notice required under paragraph (b) to the commissioner and to the county
184.27auditor of each county in which the district is located. Within 15 days after the results
184.28of the referendum have been certified by the board, or in the case of a recount, the
184.29certification of the results of the recount by the canvassing board, the district must notify
184.30the commissioner of the results of the referendum.
184.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
184.32and later.

184.33    Sec. 63. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
184.34is amended to read:
185.1    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
185.29, a school district may convert up to $300 per adjusted pupil unit of referendum authority
185.3from voter approved to board approved by a board vote. A district with less than $300 per
185.4adjusted pupil unit of referendum authority after the local optional revenue subtraction
185.5under subdivision 1 may authorize new referendum authority up to the difference between
185.6$300 per adjusted pupil unit and the district's referendum authority. The board may
185.7authorize this levy for up to five years and may subsequently reauthorize that authority
185.8in increments of up to five years.
185.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
185.10and later.

185.11    Sec. 64. Minnesota Statutes 2013 Supplement, section 126C.40, subdivision 1, is
185.12amended to read:
185.13    Subdivision 1. To lease building or land. (a) When an independent or a special
185.14school district or a group of independent or special school districts finds it economically
185.15advantageous to rent or lease a building or land for any instructional purposes or for
185.16school storage or furniture repair, and it determines that the operating capital revenue
185.17authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
185.18apply to the commissioner for permission to make an additional capital expenditure levy
185.19for this purpose. An application for permission to levy under this subdivision must contain
185.20financial justification for the proposed levy, the terms and conditions of the proposed
185.21lease, and a description of the space to be leased and its proposed use.
185.22    (b) The criteria for approval of applications to levy under this subdivision must
185.23include: the reasonableness of the price, the appropriateness of the space to the proposed
185.24activity, the feasibility of transporting pupils to the leased building or land, conformity
185.25of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
185.26the proposed lease to the space needs and the financial condition of the district. The
185.27commissioner must not authorize a levy under this subdivision in an amount greater than
185.28the cost to the district of renting or leasing a building or land for approved purposes.
185.29The proceeds of this levy must not be used for custodial or other maintenance services.
185.30A district may not levy under this subdivision for the purpose of leasing or renting a
185.31district-owned building or site to itself.
185.32    (c) For agreements finalized after July 1, 1997, a district may not levy under this
185.33subdivision for the purpose of leasing: (1) a newly constructed building used primarily
185.34for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
185.35building addition or additions used primarily for regular kindergarten, elementary, or
186.1secondary instruction that contains more than 20 percent of the square footage of the
186.2previously existing building.
186.3    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
186.4purpose of leasing or renting a district-owned building or site to itself only if the amount
186.5is needed by the district to make payments required by a lease purchase agreement,
186.6installment purchase agreement, or other deferred payments agreement authorized by law,
186.7and the levy meets the requirements of paragraph (c). A levy authorized for a district by
186.8the commissioner under this paragraph may be in the amount needed by the district to
186.9make payments required by a lease purchase agreement, installment purchase agreement,
186.10or other deferred payments agreement authorized by law, provided that any agreement
186.11include a provision giving the school districts the right to terminate the agreement
186.12annually without penalty.
186.13    (e) The total levy under this subdivision for a district for any year must not exceed
186.14$162 $212 times the adjusted pupil units for the fiscal year to which the levy is attributable.
186.15    (f) For agreements for which a review and comment have been submitted to the
186.16Department of Education after April 1, 1998, the term "instructional purpose" as used in
186.17this subdivision excludes expenditures on stadiums.
186.18    (g) The commissioner of education may authorize a school district to exceed the
186.19limit in paragraph (e) if the school district petitions the commissioner for approval. The
186.20commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
186.21for not more than five years if the district meets the following criteria:
186.22    (1) the school district has been experiencing pupil enrollment growth in the
186.23preceding five years;
186.24    (2) the purpose of the increased levy is in the long-term public interest;
186.25    (3) the purpose of the increased levy promotes colocation of government services; and
186.26    (4) the purpose of the increased levy is in the long-term interest of the district by
186.27avoiding over construction of school facilities.
186.28    (h) A school district that is a member of an intermediate school district may include
186.29in its authority under this section the costs associated with leases of administrative and
186.30classroom space for intermediate school district programs. This authority must not exceed
186.31$46 $65 times the adjusted pupil units of the member districts. This authority is in addition
186.32to any other authority authorized under this section.
186.33    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
186.342012 to 2023, a district that is a member of the "Technology and Information Education
186.35Systems" data processing joint board, that finds it economically advantageous to enter into
186.36a lease agreement to finance improvements to a building and land for a group of school
187.1districts or special school districts for staff development purposes, may levy for its portion
187.2of lease costs attributed to the district within the total levy limit in paragraph (e). The total
187.3levy authority under this paragraph shall not exceed $632,000.
187.4(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
187.5purpose of leasing administrative space if the district can demonstrate to the satisfaction of
187.6the commissioner that the lease cost for the administrative space is no greater than the
187.7lease cost for instructional space that the district would otherwise lease. The commissioner
187.8must deny this levy authority unless the district passes a resolution stating its intent to
187.9lease instructional space under this section if the commissioner does not grant authority
187.10under this paragraph. The resolution must also certify that the lease cost for administrative
187.11space under this paragraph is no greater than the lease cost for the district's proposed
187.12instructional lease.
187.13EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

187.14    Sec. 65. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
187.15126C.44 SAFE SCHOOLS LEVY.
187.16    (a) Each district may make a levy on all taxable property located within the district
187.17for the purposes specified in this section. The maximum amount which may be levied for
187.18all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
187.19units for the school year. The proceeds of the levy must be reserved and used for directly
187.20funding the following purposes or for reimbursing the cities and counties who contract
187.21with the district for the following purposes:
187.22    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
187.23peace officers and sheriffs for liaison in services in the district's schools;
187.24    (2) to pay the costs for a drug abuse prevention program as defined in section
187.25609.101, subdivision 3 , paragraph (e), in the elementary schools;
187.26    (3) to pay the costs for a gang resistance education training curriculum in the
187.27district's schools;
187.28    (4) to pay the costs for security in the district's schools and on school property;
187.29    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
187.30voluntary opt-in suicide prevention tools, and violence prevention measures taken by
187.31the school district;
187.32    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
187.33school social workers, licensed school psychologists, and licensed alcohol and chemical
187.34dependency counselors to help provide early responses to problems;
188.1    (7) to pay for facility security enhancements including laminated glass, public
188.2announcement systems, emergency communications devices, and equipment and facility
188.3modifications related to violence prevention and facility security;
188.4    (8) to pay for costs associated with improving the school climate; or
188.5    (9) to pay costs for colocating and collaborating with mental health professionals
188.6who are not district employees or contractors.
188.7    (b) For expenditures under paragraph (a), clause (1), the district must initially
188.8attempt to contract for services to be provided by peace officers or sheriffs with the
188.9police department of each city or the sheriff's department of the county within the district
188.10containing the school receiving the services. If a local police department or a county
188.11sheriff's department does not wish to provide the necessary services, the district may
188.12contract for these services with any other police or sheriff's department located entirely or
188.13partially within the school district's boundaries.
188.14    (c) A school district that is a member of an intermediate school district may
188.15include in its authority under this section the costs associated with safe schools activities
188.16authorized under paragraph (a) for intermediate school district programs. This authority
188.17must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
188.18districts. This authority is in addition to any other authority authorized under this section.
188.19Revenue raised under this paragraph must be transferred to the intermediate school district.
188.20EFFECTIVE DATE.This section is effective for taxes payable in fiscal year 2015
188.21and later.

188.22    Sec. 66. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
188.23amended to read:
188.24    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
188.25pursuant to subdivision 1 must be made prior to the reductions in clause (2).
188.26(2) Notwithstanding any other law to the contrary, districts that have revenue
188.27pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
188.28under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
188.29to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
188.30severed mineral values must reduce the levies authorized by this chapter and chapters
188.31120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
188.32previous year's revenue specified under this clause and the amount attributable to the same
188.33production year distributed to the cities and townships within the school district under
188.34section 298.28, subdivision 2, paragraph (c).
189.1(3) The amount of any voter approved referendum, facilities down payment, and
189.2debt levies shall not be reduced by more than 50 percent under this subdivision, except that
189.3payments under sections 298.28, subdivision 7a, and 298.292, subdivision 2, clause (6),
189.4may reduce the debt service levy by more than 50 percent. In administering this paragraph,
189.5the commissioner shall first reduce the nonvoter approved levies of a district; then, if any
189.6payments, severed mineral value tax revenue or recognized revenue under paragraph (2)
189.7remains, the commissioner shall reduce any voter approved referendum levies authorized
189.8under section 126C.17; then, if any payments, severed mineral value tax revenue or
189.9recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter
189.10approved facilities down payment levies authorized under section 123B.63 and then, if
189.11any payments, severed mineral value tax revenue or recognized revenue under paragraph
189.12(2) remains, the commissioner shall reduce any voter approved debt levies.
189.13(4) Before computing the reduction pursuant to this subdivision of the health and
189.14safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
189.15shall ascertain from each affected school district the amount it proposes to levy under
189.16each section or subdivision. The reduction shall be computed on the basis of the amount
189.17so ascertained.
189.18(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
189.19limitation in paragraph (3), an amount equal to the excess must be distributed from the
189.20school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
189.21year to the cities and townships within the school district in the proportion that their
189.22taxable net tax capacity within the school district bears to the taxable net tax capacity of
189.23the school district for property taxes payable in the year prior to distribution. No city or
189.24township shall receive a distribution greater than its levy for taxes payable in the year prior
189.25to distribution. The commissioner of revenue shall certify the distributions of cities and
189.26towns under this paragraph to the county auditor by September 30 of the year preceding
189.27distribution. The county auditor shall reduce the proposed and final levies of cities and
189.28towns receiving distributions by the amount of their distribution. Distributions to the cities
189.29and towns shall be made at the times provided under section 298.27.

189.30    Sec. 67. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
189.31    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
189.32treasurers pursuant to section 276.10, apportionments from the school endowment fund
189.33pursuant to section 127A.33, apportionments by the county auditor pursuant to section
189.34127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
189.35pursuant to chapter 298.
190.1(b) "Cumulative amount guaranteed" means the product of
190.2(1) the cumulative disbursement percentage shown in subdivision 3; times
190.3(2) the sum of
190.4(i) the current year aid payment percentage of the estimated aid and credit
190.5entitlements paid according to subdivision 13; plus
190.6(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
190.7(iii) the other distr