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HF 3172

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/19/2014 10:57am

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A bill for an act
relating to state government; providing supplemental appropriations for Office
of Higher Education, Board of Trustees of the Minnesota State Colleges and
Universities, Board of Regents of the University of Minnesota; jobs, economic
development, labor, commerce and housing finance; state government and
veterans; public safety and corrections; transportation; agriculture, environment,
natural resources and clean water; early childhood education; kindergarten
through grade 12; community and adult education including general education;
education excellence; special education; education facilities; nutrition; state
education agencies; health and human services; making certain appropriations
adjustments; modifying disposition of certain revenues; providing a grant
to College Possible; providing funding for regenerative medicine research;
regulating study abroad programs; providing resident tuition rates for certain
military veterans; authorizing participation in the interstate reciprocity
agreement; authorizing student loan refinancing; requiring a transfer from the
assigned risk plan in the event of surplus; establishing broadband development
grants; modifying workforce development outcomes; requiring workers'
compensation reform; modifying an energy loan program; establishing deaf,
deafblind, and hard-of-hearing grants; modifying distribution of a taconite tax;
implementing an innovation voucher pilot program; establishing competency
standards for certain industries; creating the Legislative Water Commission;
making changes to the Compensation Council; expediting professional
licensure for members of the military; transferring funds to a disaster assistance
contingency account; modifying certain provisions pertaining to victims of
domestic violence; permitting the court to continue a juvenile case without a
finding of delinquency; continuing the fire safety advisory committee; lowering
the penalty for the performance of acts prohibited by statutes for which no penalty
is specified; extending University of Minnesota service of alcohol; providing
for disaster assistance for public entities with and without federal assistance;
providing for railroad and railroad yard safety and emergency preparedness;
designating the Trooper Glen Skolman Memorial Highway; modifying various
provisions governing fund use, driver's licenses and permits, license plates, speed
limits, work zones, gross vehicle weights and permits, products and services
billing, safety oversight, light rail vehicle design, transit shelters and stops,
highway turnbacks, and watercraft decontamination sites; providing for federal
conformity; establishing a community destination sign pilot program; providing
for transit service on election day; modifying off-highway motorcycle provisions;
creating accounts; providing for certain grants; providing for protection
of pollinators; modifying the Water Law; modifying recycling provisions;
providing for state parks and trails license plates; providing for establishment of
Invasive Terrestrial Plants and Pests Center; providing for licensing commercial
breeders of dogs and cats; providing for adoption of research dogs and cats;
modifying provisions governing Health Department, Department of Human
Services, health care, children and family services, Northstar Care for Children
program, community first services and supports, continuing care, home and
community-based services standards, public assistance programs simplification,
and chemical and mental health services; making changes to hospital payment
system; providing rate and grant increases for nursing facilities, ICFs/DD,
and home and community-based services; requiring studies and reports;
requiring rulemaking;amending Minnesota Statutes 2012, sections 12.03,
by adding subdivisions; 12.221, subdivision 4, by adding a subdivision;
12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision 3; 12A.15,
subdivision 1; 13.43, subdivision 16; 13.46, subdivision 4; 13.643, subdivision 6;
13.681, by adding a subdivision; 13.84, subdivisions 5, 6; 15A.082, subdivision
4; 16A.125, subdivision 5; 16A.28, by adding a subdivision; 16C.16, subdivision
6a; 16C.19; 18B.01, by adding subdivisions; 18B.03, by adding a subdivision;
18B.04; 84.788, subdivision 2; 85.053, subdivision 2; 85.34, subdivision 7;
85A.02, subdivision 2; 103G.251; 103G.271, subdivisions 5, 6; 103G.281, by
adding a subdivision; 115A.151, as amended; 115A.55, subdivision 4; 115A.551,
subdivisions 1, 2a; 115A.557, subdivisions 2, 3; 115E.01, by adding subdivisions;
115E.08, by adding subdivisions; 116J.423, subdivision 2; 116J.8731, subdivision
5; 116L.98; 119B.09, subdivision 9a; 122A.18, by adding a subdivision;
122A.40, subdivision 13; 122A.41, subdivision 6; 122A.414, subdivision 2, as
amended if enacted; 122A.415, subdivision 1; 123A.05, subdivision 2; 123A.64;
123B.57, subdivision 6; 123B.71, subdivisions 8, 9; 123B.72, subdivisions 1, 3;
124D.09, subdivisions 9, 13; 124D.111, by adding a subdivision; 124D.1158,
subdivisions 3, 4; 124D.13, subdivisions 2, as amended, 4, 9, 13, by adding
subdivisions; 124D.135, subdivisions 1, 3; 124D.16, subdivision 2; 124D.522;
124D.531, subdivision 3; 124D.59, subdivision 2; 125A.76, subdivision 2;
126C.10, subdivisions 25, 26; 127A.45, subdivisions 2, 3; 127A.49, subdivisions
2, 3; 129C.10, subdivision 3, by adding a subdivision; 136A.01, subdivision
2; 136A.1702; 136A.1785; 144.0724, as amended; 144.1501, subdivision
1; 144.551, subdivision 1; 144A.073, by adding a subdivision; 144A.33,
subdivision 2; 148.624, by adding a subdivision; 148B.53, subdivision 3;
150A.091, by adding a subdivision; 153.16, by adding a subdivision; 154.11, as
amended; 155A.27, by adding a subdivision; 161.14, by adding a subdivision;
165.15, subdivision 2; 169.011, by adding a subdivision; 169.06, subdivision
4, by adding a subdivision; 169.14, subdivision 5d, by adding a subdivision;
169.305, subdivision 1; 169.826, by adding a subdivision; 169.8261, by adding a
subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865,
subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding a
subdivision; 171.02, subdivision 3; 171.06, subdivision 2; 171.13, subdivision
1; 174.02, by adding a subdivision; 174.56, subdivision 1; 179.02, by adding
a subdivision; 181A.07, by adding a subdivision; 216B.241, subdivision 1d;
216C.145; 216C.146; 219.015, subdivisions 1, 2; 222.50, subdivision 7;
245.466, by adding a subdivision; 245A.03, subdivision 2c; 245A.04, by
adding a subdivision; 245C.03, by adding a subdivision; 245C.04, by adding
a subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision;
245C.33, subdivisions 1, 4; 252.451, subdivision 2; 253B.066, subdivision 1;
254B.04, subdivision 3; 254B.12; 256.01, by adding a subdivision; 256.9685,
subdivisions 1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a,
3b, 3c, 6a, 8, 8a, 9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752,
subdivision 2; 256B.04, by adding a subdivision; 256B.0615, subdivision 3;
256B.0624, subdivisions 2, 5, 6, 10; 256B.0625, subdivisions 18b, 18c, 18d, 18g,
30, by adding a subdivision; 256B.0751, by adding a subdivision; 256B.199;
256B.35, subdivision 1; 256B.441, by adding a subdivision; 256B.5012, by
adding a subdivision; 256D.02, subdivisions 8, 12; 256D.05, subdivision 5;
256D.06, subdivision 1; 256D.08, subdivision 1, by adding a subdivision;
256D.10; 256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by
adding a subdivision; 256I.04, subdivision 1; 256I.05, subdivision 2; 256J.08,
subdivisions 47, 57, 83, by adding a subdivision; 256J.10; 256J.21, subdivision 4;
256J.30, subdivision 4; 256J.32, subdivision 1; 256J.33, subdivision 2; 256J.37,
as amended; 256J.425, subdivisions 1, 7; 256J.49, subdivision 13; 256J.53,
subdivisions 1, 2, 5; 256J.531; 256J.95, subdivisions 8, 9, 10; 257.85, subdivision
11; 260B.198, subdivision 7; 260C.212, subdivision 1; 260C.515, subdivision
4; 260C.611; 268A.01, subdivision 14; 298.28, subdivisions 2, 7a, as added;
299F.012, subdivision 2; 326.04, as amended; 326.10, by adding a subdivision;
326.3382, by adding a subdivision; 326A.04, by adding a subdivision; 363A.44,
subdivision 1, as added; 611A.06, by adding a subdivision; 645.241; Minnesota
Statutes 2013 Supplement, sections 15A.082, subdivisions 1, 3; 16A.724,
subdivision 3; 103I.205, subdivision 4; 116V.03; 123B.53, subdivisions 1, 5;
123B.54; 123B.75, subdivision 5; 124D.11, subdivision 1; 124D.111, subdivision
1; 124D.165, subdivisions 3, 4, 5; 124D.531, subdivision 1; 124D.862,
subdivisions 1, 2; 125A.0942; 125A.11, subdivision 1; 125A.76, subdivisions
1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10,
subdivisions 2, 2a, 2c, 2d, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.40,
subdivision 1; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 7;
145.4716, subdivision 2; 148B.17, subdivision 2; 174.12, subdivision 2; 174.42,
subdivision 2; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision 3;
245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b,
8b, 11, 15b, 23, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1,
2, 3, by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions
1, 1a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071,
subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a;
245D.091, subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision
2; 252.27, subdivision 2a; 256B.04, subdivision 21; 256B.055, subdivision
1; 256B.06, subdivision 4; 256B.0625, subdivisions 17, 18e; 256B.0949,
subdivisions 4, 5, 11, by adding a subdivision; 256B.439, subdivisions 1, 7;
256B.441, subdivision 63; 256B.4912, subdivision 1; 256B.4913, subdivision 4a;
256B.4914, subdivisions 2, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision
34; 256B.766; 256B.767; 256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13,
15, 16, 17, 18, 23, 24, by adding subdivisions; 256J.21, subdivision 3; 256J.30,
subdivision 9; 256N.02, by adding a subdivision; 256N.21, subdivision 2, by
adding a subdivision; 256N.22, subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1,
4; 256N.24, subdivisions 9, 10; 256N.25, subdivisions 2, 3; 256N.26, subdivision
1; 256N.27, subdivision 4; 297A.815, subdivision 3; 326A.04, subdivision 5;
Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended; Laws
2009, chapter 83, article 1, section 10, subdivision 7; Laws 2010, chapter 189,
sections 15, subdivision 12; 26, subdivision 4; Laws 2012, chapter 247, article 4,
section 47; Laws 2012, chapter 263, section 1; Laws 2012, chapter 287, article 2,
sections 1; 3; Laws 2012, First Special Session chapter 1, article 1, section 28;
Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 85, article 1,
sections 3, subdivisions 2, 5, 6; 4, subdivisions 1, 2; 5; 13, subdivision 5; Laws
2013, chapter 86, article 1, sections 12, subdivisions 1, 3, as amended; 13; Laws
2013, chapter 108, article 1, section 24; article 7, sections 14; 49; article 14,
sections 2, subdivisions 1, 3, 4, as amended, 6, as amended; 3, subdivisions 1, 4;
4, subdivision 8; 12; Laws 2013, chapter 114, article 3, sections 3, subdivision 6;
4, subdivision 3; article 4, section 47; Laws 2013, chapter 116, article 1, section
58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8,
15, 18, 20; article 4, section 9, subdivision 2; article 5, section 31, subdivisions
2, 3, 4, 5, 8; article 6, section 12, subdivisions 2, 3, 4, 6; article 7, section 21,
subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 8, 9, 10,
11, 14; article 9, sections 1, subdivision 2; 2; Laws 2013, chapter 117, article 1,
sections 3, subdivisions 2, 3, 6; 4; 5, subdivisions 2, 3, 4; Laws 2013, chapter
143, article 11, section 10; Laws 2014, chapter 235, section 43; Laws 2014,
chapter 240, section 26; 2014 H.F. No. 2180, section 11, if enacted; proposing
coding for new law in Minnesota Statutes, chapters 3; 5; 18B; 84; 85; 87A;
103G; 115E; 116J; 123A; 123B; 124D; 129C; 135A; 136A; 144; 144A; 145;
148; 168; 171; 197; 219; 268A; 299A; 347; 473; proposing coding for new law
as Minnesota Statutes, chapters 12B; 256P; repealing Minnesota Statutes 2012,
sections 115A.551, subdivision 2; 116J.997; 123B.71, subdivisions 1, 4; 256.969,
subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions
3, 4; 256D.06, subdivision 1b; 256D.08, subdivision 2; 256D.405, subdivisions
1a, 2; 256J.08, subdivisions 42, 55a, 82a; 256J.20; 256J.24, subdivision 9;
256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, 8; Minnesota Statutes 2013 Supplement,
sections 256B.0625, subdivision 18f; 256J.08, subdivision 24; 256N.26,
subdivision 7; Laws 2014, chapter 272, article 1, section 22; article 3, section 32.

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

ARTICLE 1

HIGHER EDUCATION

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figure "2015" used in this article means that the appropriation listed
under it is available for the fiscal year ending June 30, 2015.

APPROPRIATIONS
Available for the Year
Ending June 30
2014
2015

Sec. 2. OFFICE OF HIGHER EDUCATION

$
750,000

This appropriation is for immediate transfer
to College Possible for the purpose of
expanding College Possible coaching and
mentoring programs in Minnesota schools.
The appropriation shall be used for:

(1) increasing the number of low-income
high school students served by College
Possible by adding at least 150 students and
partnering with at least three additional high
schools in 2015;

(2) expenses related to direct support
for low-income high school students in
after-school programming led by College
Possible; and

(3) coaching and support of low-income
college students through the completion of
their college degree.

College Possible must, by February 1, 2015,
report to the chairs and ranking minority
members of the legislative committees
and divisions with jurisdiction over higher
education and E-12 education on activities
funded by this appropriation. The report must
include, but is not limited to, information
about the expansion of College Possible in
Minnesota, the number of College Possible
coaches hired, the expansion within existing
partner high schools, the expansion of high
school partnerships, the number of high
school and college students served, the
total hours of community service by high
school and college students, and a list of
communities and organizations benefitting
from student service hours.

This appropriation must not be used for the
expansion and support of College Possible
outside of Minnesota.

This is a onetime appropriation.

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

$
17,000,000

$17,000,000 in fiscal year 2015 is
appropriated from the general fund to the
Board of Trustees of the Minnesota State
Colleges and Universities for compensation
costs associated with the settlement of
employment contracts for fiscal year 2014.
The board's appropriation base is increased
by $17,000,000 in fiscal years 2016 and 2017.

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

Subdivision 1.

Total Appropriation

$
4,500,000

Subd. 2.

Health Sciences Special

4,500,000

(a) This appropriation is from the general
fund for the direct and indirect expenses
of the collaborative partnership between
the Univerity of Minnesota and the Mayo
Clinic for regenerative medicine research,
clinical translation, and commercialization.
In addition to representatives from the
University of Minnesota and the Mayo
Clinic, the collaborative partnership must
include representatives of private industry
and others with expertise in regenerative
medicine research, clinical translation,
commercialization, and medical venture
financing who are not affiliated with either the
University of Minnesota or the Mayo Clinic.

(b) By January 15 of each odd-numbered
year beginning in 2017, the partnership must
submit an independent financial audit to the
chairs and ranking minority members of the
committees of the house of representatives
and senate having jurisdiction over higher
education and economic development. The
audit must include the names of all recipients
of grants awarded by the partnership and
their affiliation, if any, with the University of
Minnesota or the Mayo Clinic.

(c) The full amount of this appropriation
is for the partnership and may not be
used by the University of Minnesota for
administrative or monitoring expenses.

(d) For fiscal year 2016 and thereafter, the
base for this program is $4,350,000.

Sec. 5.

[5.39] STUDY ABROAD PROGRAMS.

Subdivision 1.

Definitions.

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

(b) "Postsecondary institution" means an institution that meets the eligibility
requirements under section 136A.103 to participate in state financial aid programs.

(c) "Program" means a study abroad program offered or approved for credit by a
postsecondary institution in which program participants travel outside of the United States
in connection with an educational experience.

Subd. 2.

Report.

(a) A postsecondary institution, must file by November 1 of each
year a report on its programs with the secretary of state. The report must contain the
following information from the previous academic year, including summer terms:

(1) deaths of program participants that occurred during program participation as a
result of program participation; and

(2) accidents and illnesses that occurred during program participation as a result of
program participation and that required hospitalization.

Information reported under clause (1) may be supplemented by a brief explanatory
statement.

(b) A postsecondary institution must report to the secretary of state annually by
November 1 whether its program complies with health and safety standards set by the
Forum on Education Abroad or a similar study abroad program standard setting agency.

Subd. 3.

Secretary of state; publication of program information.

(a) The secretary
of state must publish the reports required by subdivision 2, on its Web site in a format that
facilitates identifying information related to a particular postsecondary institution.

(b) The secretary of state shall publish on its Web site the best available information
by country on sexual assaults and other criminal acts affecting study abroad program
participants during program participation. This information shall not be limited to
programs subject to this section.

Subd. 4.

Office of Higher Education.

The secretary of state shall provide the
information it posts on its Web site under subdivision 3 to the Office of Higher Education,
in electronic format, at the time it posts the information. The Office of Higher Education
shall post the information on its Web site and may otherwise distribute the information. In
materials distributed or posted, the Office of Higher Education must reference this section.

Subd. 5.

Program material.

A postsecondary institution must include in its written
materials provided to prospective program participants a link to the secretary of state Web
site stating that program health and safety information is available at the Web site.

EFFECTIVE DATE.

This section is effective August 1, 2014, provided that the
initial reports under subdivision 2 are due November 1, 2015.

Sec. 6.

[135A.0431] MILITARY VETERANS; RESIDENT TUITION.

(a) A person who is honorably discharged from the armed forces of the United States
is entitled to the resident tuition rate at Minnesota public postsecondary institutions.

(b) This section is in addition to any other statute, rule, or higher education
institution regulation or policy providing eligibility for a resident tuition rate or its
equivalent to a student.

EFFECTIVE DATE.

This section is effective for academic terms beginning after
August 1, 2014.

Sec. 7.

Minnesota Statutes 2012, section 136A.01, subdivision 2, is amended to read:


Subd. 2.

Responsibilities.

(a) The Minnesota Office of Higher Education is
responsible for:

(1) necessary state level administration of financial aid programs, including
accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
financial aid programs to the governor and the legislature;

(2) approval, registration, licensing, and financial aid eligibility of private collegiate
and career schools, under sections 136A.61 to 136A.71 and chapter 141;

(3) determining whether to enter into an interstate reciprocity agreement regarding
postsecondary distance education;

(3) (4) negotiating and administering reciprocity agreements;

(4) (5) publishing and distributing financial aid information and materials, and other
information and materials under section 136A.87, to students and parents;

(5) (6) collecting and maintaining student enrollment and financial aid data and
reporting data on students and postsecondary institutions to develop and implement a
process to measure and report on the effectiveness of postsecondary institutions;

(6) (7) administering the federal programs that affect students and institutions on a
statewide basis; and

(7) (8) prescribing policies, procedures, and rules under chapter 14 necessary to
administer the programs under its supervision.

(b) The office may match individual student data from the student record enrollment
database with individual student financial aid data collected and maintained by the office
in order to audit or evaluate federal or state supported education programs as permitted by
United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title
34, section 99.35. The office shall not release data that personally identifies parents or
students other than to employees and contractors of the office.

Sec. 8.

Minnesota Statutes 2012, section 136A.1702, is amended to read:


136A.1702 LEGISLATIVE OVERSIGHT.

The office shall notify the chairs of the legislative committees with primary
jurisdiction over higher education finance of any proposed material change to any of its
student loan programs, including loan refinancing under section 136A.1704, prior to
making the change.

Sec. 9.

[136A.1704] STUDENT LOAN REFINANCING.

The office may refinance student and parent loans as provided by this section and
on other terms and conditions the office prescribes. The office may establish credit
requirements for borrowers and determine what types of student and parent loans will be
eligible for refinancing. The refinanced loan need not have been made through a loan
program administered by the office. Loans shall be made with available funds in the
loan capital fund under section 136A.1785. The maximum amount of outstanding loans
refinanced under this section may not exceed $100,000,000. The maximum loan under
this section may not exceed $70,000.

EFFECTIVE DATE.

This section is effective the day following final enactment,
provided no loans may be refinanced prior to June 1, 2015.

Sec. 10.

Minnesota Statutes 2012, section 136A.1785, is amended to read:


136A.1785 LOAN CAPITAL FUND.

The office may deposit and hold assets derived from the operation of its student loan
programs and refinanced education loans authorized by this chapter in a fund known as
the loan capital fund. Assets in the loan capital fund are available to the office solely
for carrying out the purposes and terms of sections 136A.15 to 136A.1703 136A.1704,
including, but not limited to, making student loans authorized by this chapter, refinancing
education loans authorized by this chapter,
paying administrative expenses associated with
the operation of its student loan programs, repurchasing defaulted student loans, and
paying expenses in connection with the issuance of revenue bonds authorized under this
chapter. Assets in the loan capital fund may be invested as provided in sections 11A.24
and 136A.16, subdivision 8. All interest and earnings from the investment of the loan
capital fund inure to the benefit of the fund and are deposited into the fund.

Sec. 11.

[136A.658] EXEMPTION; STATE AUTHORIZATION RECIPROCITY
AGREEMENT SCHOOLS.

(a) The office may participate in an interstate reciprocity agreement regarding
postsecondary distance education if it determines that participation is in the best interest of
Minnesota postsecondary students.

(b) If the office decides to participate in an interstate reciprocity agreement, an
institution that meets the following requirements is exempt from the provisions of sections
136A.61 to 136A.71:

(1) the institution is situated in a state which is also participating in the interstate
reciprocity agreement;

(2) the institution has been approved to participate in the interstate reciprocity
agreement by the institution's home state and other entities with oversight of the interstate
reciprocity agreement; and

(3) the institution has elected to participate in and operate in compliance with the
terms of the interstate reciprocity agreement.

Sec. 12. MINNESOTA STATE COLLEGES AND UNIVERSITIES
BACCALAUREATE DEGREE COMPLETION PLAN.

The Board of Trustees of the Minnesota State Colleges and Universities shall develop
a plan to implement multi-campus articulation agreements that lead to baccalaureate
degree completion upon earning the number of credits required for the degree minus 60
credits at a system university after transfer to the system university by a student with an
associate in arts degree, associate of science degree, or an associate of fine arts (AFA)
degree from a system college. The board shall assign the task of developing the plan to
the appropriate committee formed under the board's "Charting the Future" initiative. The
board shall report on this plan to the legislative committees with primary jurisdiction over
higher education finance and policy by March 15, 2015.

Sec. 13. REPORT; OFFICE OF HIGHER EDUCATION.

The Office of Higher Education shall, by February 1, 2015, report to the committees
of the legislature with primary jurisdiction over higher education policy and finance, its
plans and proposed terms and conditions for operating a student loan refinancing program
under section 136A.1704, along with any recommended legislation.

Sec. 14. STUDY ABROAD PROGRAM; ASSESSMENT OF APPROPRIATE
REGULATION.

The Office of Higher Education shall, using existing staff and budget, assess the
appropriate state regulation of postsecondary study abroad programs. The assessment
must be based on a balanced approach of protecting the health and safety of program
participants and maintaining the opportunity of students to study abroad. The office shall
report the results of its assessment with any legislative recommendation by February 1,
2015, to the committees of the legislature with primary jurisdiction over higher education.

Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.

For fiscal years 2016 to 2041, $3,500,000 is added to the base operations and
maintenance appropriation to the Board of Regents of the University of Minnesota in
Laws 2013, chapter 99, article 1, section 5.

Sec. 16. JAMES FORD BELL NATURAL HISTORY MUSEUM AND
PLANETARIUM.

The Board of Regents of the University of Minnesota is requested to complete the
design of and to construct, furnish, and equip a new James Ford Bell Natural History
Museum and Planetarium on the St. Paul campus.

ARTICLE 2

APPROPRIATIONS FOR DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT, DEPARTMENT OF LABOR AND INDUSTRY,
DEPARTMENT OF COMMERCE, AND HOUSING FINANCE

Section 1. APPROPRIATIONS.

The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1,
or other law to the specified agencies. The appropriations are from the general fund, or
another named fund, and are available for the fiscal years indicated for each purpose. The
figures "2014" and "2015" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
Appropriations for the fiscal year ending June 30, 2014, are effective the day following
final enactment. Reductions may be taken in either fiscal year.

APPROPRIATIONS
Available for the Year
Ending June 30
2014
2015

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
0
$
29,475,000
Appropriations by Fund
General
-0-
28,175,000
Workforce
Development
-0-
1,300,000

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

Subd. 2.

Business and Community
Development

0
27,225,000

(a)(1) $20,000,000 in fiscal year 2015 is
from the general fund for deposit in the
border-to-border broadband fund account
created under Minnesota Statutes, section
116J.396, and may be used for the purposes
provided in Minnesota Statutes, section
116J.395, and as provided for under clause
(2). This is a onetime appropriation and is
available until June 30, 2017.

(2) Of the appropriation under clause (1), up
to three percent is for: (i) costs incurred by
the commissioner to administer Minnesota
Statutes, section 116J.395; and (ii) one
or more contracts with an independent
organization that has extensive experience
working with Minnesota broadband
providers to continue to:

(A) collect broadband deployment data from
Minnesota providers, verify its accuracy
through on-the-ground testing, and create
state and county maps available to the public
showing the availability of broadband service
at various upload and download speeds
throughout Minnesota, in order to measure
progress in achieving the state's broadband
goals established in Minnesota Statutes,
section 237.012;

(B) analyze the deployment data collected to
help inform future investments in broadband
infrastructure; and

(C) conduct business and residential surveys
that measure broadband adoption and use in
the state.

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

(b) $475,000 in fiscal year 2015 is from the
general fund for a grant to the Southwest
Initiative Foundation for business revolving
loans or other lending programs at below
market interest rates. This is a onetime
appropriation.

(c) $475,000 in fiscal year 2015 is from the
general fund for a grant to the West Central
Initiative Foundation for business revolving
loans or other lending programs at below
market interest rates. This is a onetime
appropriation.

(d) $475,000 in fiscal year 2015 is from the
general fund for a grant to the Southern
Minnesota Initiative Foundation for business
revolving loans or other lending programs at
below market interest rates. This is a onetime
appropriation.

(e) $475,000 in fiscal year 2015 is from the
general fund for a grant to the Northwest
Minnesota Foundation for business revolving
loans or other lending programs at below
market interest rates. This is a onetime
appropriation.

(f) $475,000 in fiscal year 2015 is from the
general fund for a grant to the Initiative
Foundation for business revolving loans or
other lending programs at below market
interest rates. This is a onetime appropriation.

(g) $475,000 in fiscal year 2015 is from the
general fund for a grant to the Northland
Foundation for business revolving loans or
other lending programs at below market
interest rates. This is a onetime appropriation.

(h) $650,000 in fiscal year 2015 is from
the general fund for a grant to the Urban
Initiative Board under Minnesota Statutes,
chapter 116M, for loans at below market
interest rates, business technical assistance,
or organizational capacity building. Funds
available under this paragraph must be
allocated as follows: (1) 50 percent of
the funds must be allocated for projects
in the counties of Dakota, Ramsey, and
Washington; and (2) 50 percent of the funds
must be allocated for projects in the counties
of Anoka, Carver, Hennepin, and Scott. This
is a onetime appropriation.

(i) $500,000 in fiscal year 2015 is from the
general fund for grants to small business
development centers under Minnesota
Statutes, section 116J.68. Funds made
available under this paragraph may be used to
match funds under the federal Small Business
Development Center (SBDC) program under
United States Code, title 15, section 648, to
provide consulting and technical services, or
to build additional SBDC network capacity
to serve entrepreneurs and small businesses.
The commissioner shall allocate funds
equally among the nine regional centers and
lead center. This is a onetime appropriation.

(j) $400,000 in fiscal year 2015 is from the
general fund for the innovation voucher pilot
program. This is a onetime appropriation
and is available until June 30, 2017. Of
this amount, up to five percent may be used
for administration. Vouchers require a 50
percent match by recipients.

(k) $475,000 in fiscal year 2015 is from
the general fund for the Minnesota Jobs
Skills Partnership program under Minnesota
Statutes, section 116L.02. This is a onetime
appropriation.

(l) $2,200,000 in fiscal year 2015 is from
the general fund for the greater Minnesota
business development public infrastructure
grant program under Minnesota Statutes,
section 116J.431, for grants to design,
construct, prepare, and improve infrastructure
for economic development. This is a onetime
appropriation and is available until June 30,
2017.

(m) $150,000 in fiscal year 2015 is from
the general fund for a grant to the city of
Proctor to design and construct a sand and
salt storage facility to prevent runoff into
surface water. This appropriation is not
available until the commissioner determines
that at least an equal amount is committed to
the project from nonstate sources. This is a
onetime appropriation.

Subd. 3.

Workforce Development

0
1,050,000

(a) $300,000 in fiscal year 2015 is from the
workforce development fund for workforce
program outcome activities under Minnesota
Statutes, section 116L.98. This is a onetime
appropriation.

(b) $250,000 in fiscal year 2015 is from
the workforce development fund for a
grant to the Northwest Indian Opportunities
Industrialization Center and may be used for
a green jobs deconstruction pilot program in
collaboration with a research institute and
a nonprofit organization with experience
developing deconstruction jobs, new
products from reclaimed materials, and reuse
of materials. This is a onetime appropriation.

(c) $250,000 in fiscal year 2015 is from the
workforce development fund for a grant
to the Northeast Minnesota Office of Job
Training. This is a onetime appropriation.

(d) $250,000 in fiscal year 2015 is from the
workforce development fund for a grant to
Twin Cities RISE! to provide job training.
This is a onetime appropriation.

Subd. 4.

General Support Services

0
500,000

$500,000 in fiscal year 2015 is from the
general fund for establishing and operating
the interagency Olmstead Implementation
Office. The base appropriation for the office
is $875,000 each year for fiscal years 2016
and 2017. The state recognizes its obligations
under Jensen, et al. v. Minnesota Department
of Human Services, et al. During the 2015
legislative session, the legislature intends to
review the funding levels provided for the
Olmstead Implementation Office to ensure
that amounts sufficient to comply with the
obligations imposed by the court's order are
appropriated in fiscal years 2016 and 2017.

Subd. 5.

Vocational Rehabilitation

-0-
700,000
Appropriations by Fund
General
-0-
450,000
Workforce
Development
-0-
250,000

(a) $250,000 in fiscal year 2015 is from
the workforce development fund for
rate increases to providers of extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. This is a onetime appropriation.

(b) $450,000 in fiscal year 2015 is from the
general fund for grants to the eight Minnesota
Centers for Independent Living. This is a
onetime appropriation.

Subd. 6.

Transfer

The commissioner shall transfer $7,100,000
from the Minnesota minerals 21st century
fund to the commissioner of the Iron Range
Resources and Rehabilitation Board for
a grant or forgivable loan to the city of
Hoyt Lakes for building and municipal
infrastructure in support of a biochemical
manufacturing project to be located in the
city. This transfer is available until June 30,
2018.

Sec. 3. DEPARTMENT OF LABOR AND
INDUSTRY

$
250,000

For the purpose of establishing competency
standards for programs in advanced
manufacturing, health care services,
information technology, and agriculture.
This is a onetime appropriation.

Sec. 4. DEPARTMENT OF COMMERCE

$
(350,000)
$
-0-

$350,000 in fiscal year 2014 is a onetime
reduction to the appropriation for the gold
bullion dealer registration program.

Sec. 5. HOUSING FINANCE AGENCY

$
-0-
$
2,200,000

$2,200,000 in fiscal year 2015 is from the
general fund for up to two grants for housing
projects, not to exceed $1,100,000 per grant
or 50 percent of the total development costs
of the housing project, whichever is less, in
communities that have:

(1) low housing vacancy rates; and

(2) education and training centers for jobs in
the natural resources or aviation maintenance
fields, or other fields with anticipated
significant job growth potential.

Funds must be used for grants for housing
projects with financial and in-kind
contributions from nonagency resources
that, when combined with a grant under this
section, are sufficient to complete the housing
project. This is a onetime appropriation. If
funds remain uncommitted by the end of
calendar year 2015, the agency may transfer
the uncommitted funds to the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.

Sec. 6.

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


Subd. 2.

Business and Community
Development

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2013.

Sec. 7.

Laws 2013, chapter 85, article 1, section 3, subdivision 5, is amended to read:


Subd. 5.

Minnesota Trade Office

2,322,000
2,292,000

(a) $330,000 in fiscal year 2014 and $300,000
in fiscal year 2015 are for the STEP grants
in Minnesota Statutes, section 116J.979. Of
the fiscal year 2014 appropriation, $30,000
is available for expenditure until June 30,
2015,
for establishing trade, export, and
cultural exchange relations between the state
of Minnesota and east African nations.

(b) $180,000 in fiscal year 2014 and
$180,000 in fiscal year 2015 are for the Invest
Minnesota marketing initiative in Minnesota
Statutes, section 116J.9781. Notwithstanding
any other law, this provision does not expire.

(c) $270,000 each year is from the general
fund for the expansion of Minnesota Trade
Offices under Minnesota Statutes, section
116J.978.

(d) $50,000 each year is from the general
fund for the trade policy advisory group
under Minnesota Statutes, section 116J.9661.

(e) The commissioner of employment and
economic development, in consultation
with the commissioner of agriculture, shall
identify and increase export opportunities for
Minnesota agricultural products.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

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


Subd. 6.

Vocational Rehabilitation

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

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

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

(c) $5,745,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund is for extended
employment services for persons with
severe disabilities under Minnesota Statutes,
section 268A.15. The allocation of extended
employment funds to Courage Center from
July 1, 2012 to June 30, 2013 must be
contracted to Allina Health systems from
July 1, 2013 to June 30, 2014 2015 to provide
extended employment services in accordance
with Minnesota Rules, parts 3300.2005 to
3300.2055.

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

Sec. 9.

Laws 2013, chapter 85, article 1, section 4, subdivision 1, is amended to read:


Subdivision 1.

Total Appropriation

$
58,748,000
$
42,748,000

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

Unless otherwise specified, this appropriation
is for transfer to the housing development
fund for the programs specified in this
section. Except as otherwise indicated, this
transfer is part of the agency's permanent
budget base.

The Housing Finance Agency must make
continuous improvements to its ongoing
efforts to reduce the racial and ethnic
inequalities in homeownership rates and
must seek opportunities to deploy increasing
levels of resources toward these efforts.

Sec. 10.

Laws 2013, chapter 85, article 1, section 4, subdivision 2, is amended to read:


Subd. 2.

Challenge Program

19,203,000
9,203,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
The agency must continue to strengthen its
efforts to address the disparity rate between
white households and indigenous American
Indians and communities of color. Of this
amount, $1,208,000 each year shall be made
available during the first 11 months of the
fiscal year exclusively for housing projects
for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statues, section 462A.33.

(b) Of this amount, $10,000,000 is a onetime
appropriation and is targeted for housing in
communities and regions that have:

(1)(i) low housing vacancy rates; and

(ii) cooperatively developed a plan that
identifies current and future housing needs;
and

(2)(i) experienced job growth since 2005 and
have at least 2,000 jobs within the commuter
shed;

(ii) evidence of anticipated job expansion; or

(iii) a significant portion of area employees
who commute more than 30 miles between
their residence and their employment.

(c) Priority shall be given to programs and
projects that are land trust programs and
programs that work in coordination with a
land trust program.

(d) Of this amount, $500,000 is for
homeownership opportunities for families
who have been evicted or been given
notice of an eviction due to a disabled
child in the home, including adjustments
for the incremental increase in costs of
addressing the unique housing needs of those
households. Any funds not expended for this
purpose may be returned to the challenge
fund after October 31, 2014.

(d) (e) The base funding for this program in
the 2016-2017 biennium is $12,925,000 each
year.

Sec. 11.

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


Sec. 5. EXPLORE MINNESOTA TOURISM

$
13,988,000
$
13,988,000

(a) To develop maximum private sector
involvement in tourism, $500,000 in fiscal
year 2014 and $500,000 in fiscal year 2015
must be matched by Explore Minnesota
Tourism from nonstate sources. Each $1 of
state incentive must be matched with $6 of
private sector funding. Cash match is defined
as revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in fiscal year 2014 shall be based on fiscal
year 2013 private sector contributions. The
incentive in fiscal year 2015 shall be based on
fiscal year 2014 private sector contributions.
This incentive is ongoing.

Funding for the marketing grants is available
either year of the biennium. Unexpended
grant funds from the first year are available
in the second year.

(b) $100,000 of the second year appropriation
is for a grant to the Mille Lacs Tourism
Council to enhance marketing activities
related to tourism promotion in the Mille
Lacs Lake area.

(c) $100,000 of the second year appropriation
is for additional marketing activities.

Sec. 12.

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


Subd. 5.

Telecommunications

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

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

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

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

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

Sec. 13. EXTENDED EMPLOYMENT CARRYFORWARD.

Notwithstanding Minnesota Statutes, section 268A.15, subdivision 8, appropriations
from the general fund and workforce development fund in fiscal years 2014 and 2015
to the commissioner of employment and economic development for the purposes of
Minnesota Statutes, sections 268A.13 and 268A.14, are available until June 30, 2015.

Sec. 14. ASSIGNED RISK TRANSFER.

(a) By June 30, 2015, if the commissioner of commerce determines on the basis of
an audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer
the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This
transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision
1, paragraph (a), clause (1). This is a onetime transfer.

(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
determines on the basis of an audit that there is an excess surplus in the assigned risk plan
created under Minnesota Statutes, section 79.252, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each
year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section
116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section
79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in
paragraph (a). The total amount authorized for all transfers under this paragraph must not
exceed $24,100,000. This paragraph expires the day following the transfer in which the
total amount transferred under this paragraph to the Minnesota minerals 21st century
fund equals $24,100,000.

(c) By June 30, 2015, if the commissioner of commerce determines on the basis of
an audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If
a transfer occurs under this paragraph, the amount transferred is appropriated from the
general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes
of section 15. Both the transfer and appropriation under this paragraph are onetime.

(d) By June 30, 2016, if the commissioner of commerce determines on the basis of
an audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If
a transfer occurs under this paragraph, the amount transferred is appropriated from the
general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes
of section 15. Both the transfer and appropriation under this paragraph are onetime.

(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
management and budget shall transfer to the assigned risk plan under Minnesota Statutes,
section 79.252, any unencumbered or unexpended balance of the appropriations under
paragraphs (c) and (d) remaining on June 30, 2017, or the date the commissioner of
commerce determines that an excess surplus in the assigned risk plan does not exist,
whichever occurs earlier.

Sec. 15. WORKERS' COMPENSATION SYSTEM REFORM; USE OF FUNDS.

(a) The appropriations under section 14 to the commissioner of labor and industry
are for reform of the workers' compensation system. Funds appropriated under section
14, paragraphs (c) and (d), may be expended by the commissioner only after the advisory
council on workers' compensation created under Minnesota Statutes, section 175.007, has
approved a new system including, but not limited to: a Medicare-based diagnosis-related
group (MS-DRG) or similar system for payment of workers' compensation inpatient
hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up
to $100,000 may be used by the commissioner to develop and implement the new system
approved by the advisory council on workers' compensation.

(b) Funds available for expenditure under paragraph (a) may be used by the
commissioner for reimbursement of expenditures that are reasonable and necessary to
defray the costs of the implementation by hospitals, insurers, and self-insured employers
of the new system including, but not limited to: a Medicare-based diagnosis-related group
(MS-DRG) or similar system for payment of workers' compensation inpatient hospital
services, litigation expense reform, worker safety training, administrative costs, or other
related system reform.

(c) For the purposes of this section, reasonable and necessary system reform and
implementation costs include, but are not limited to:

(1) the cost of analyzing data to determine the anticipated costs and savings of
implementing the new system;

(2) the cost of analyzing system or organizational changes necessary for
implementation;

(3) the cost of determining how an organization would implement group or other
software;

(4) the cost of upgrading existing software or purchasing new software and other
technology upgrades needed for implementation;

(5) the cost of educating and training staff about the new system as applied to
workers' compensation; and

(6) the cost of integrating the new system with electronic billing and remittance
systems.

Sec. 16. AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.

(a) The Housing Finance Agency shall provide the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction over the
agency with the draft and final versions of its affordable housing plan before and after it
has been submitted to the agency board for consideration.

(b) The Housing Finance Agency shall annually report to the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over the agency on the progress, if any, the agency has made in closing the racial disparity
gap and low-income concentrated housing disparities.

ARTICLE 3

JOBS, ECONOMIC DEVELOPMENT, ENERGY, AND LABOR

Section 1.

Minnesota Statutes 2012, section 13.681, is amended by adding a
subdivision to read:


Subd. 9.

Community energy efficiency and renewable energy loan.

Energy
usage data provided by an industrial, commercial, or health care facility customer for
community energy efficiency and renewable energy loans are governed by section
216C.145, subdivision 3.

Sec. 2.

[116J.394] DEFINITIONS.

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

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

(c) "Broadband infrastructure" means networks of deployed telecommunications
equipment and technologies necessary to provide high-speed Internet access and other
advanced telecommunications services for end users.

(d) "Commissioner" means the commissioner of employment and economic
development.

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
final leg connecting the broadband service provider's network to the end-use customer's
on-premises telecommunications equipment.

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

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

(h) "Underserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service at speeds that meet the state broadband goals of
ten to 20 megabits per second download and five to ten megabits per second upload.

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

Sec. 3.

[116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
GRANT PROGRAM.

Subdivision 1.

Establishment.

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

Subd. 2.

Eligible expenditures.

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

Subd. 3.

Eligible applicants.

Eligible applicants for grants awarded under this
section include:

(1) an incorporated business or a partnership;

(2) a political subdivision;

(3) an Indian tribe;

(4) a Minnesota nonprofit organization organized under chapter 317A;

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

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

Subd. 4.

Application process.

An eligible applicant must submit an application
to the commissioner on a form prescribed by the commissioner. The commissioner shall
develop administrative procedures governing the application and grant award process.
The commissioner shall act as fiscal agent for the grant program and shall be responsible
for receiving and reviewing grant applications and awarding grants under this section.

Subd. 5.

Application contents.

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

(1) the location of the project;

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

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

(4) the number of households passed that will have access to broadband service as a
result of the project, or whose broadband service will be upgraded as a result of the project;

(5) significant community institutions that will benefit from the proposed project;

(6) evidence of community support for the project;

(7) the total cost of the project;

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

(9) any additional information requested by the commissioner.

Subd. 6.

Awarding grants.

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

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

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

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

(3) facilitate the use of telemedicine and electronic health records;

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

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

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

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

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

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

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

Subd. 7.

Limitation.

(a) No grant awarded under this section may fund more than
50 percent of the total cost of a project.

(b) Grants awarded to a single project under this section must not exceed $5,000,000.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

[116J.396] BORDER-TO-BORDER BROADBAND FUND.

Subdivision 1.

Account established.

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

Subd. 2.

Expenditures.

Money in the account may be used only:

(1) for grant awards made under section 116J.395, including costs incurred by the
Department of Employment and Economic Development to administer that section;

(2) to supplement revenues raised by bonds sold by local units of government for
broadband infrastructure development; or

(3) to contract for the collection of broadband deployment data from providers and
the creation of maps showing the availability of broadband service.

Subd. 3.

Appropriation.

Money in the account is appropriated to the commissioner
for the purposes of subdivision 2.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Minnesota Statutes 2012, section 116J.423, subdivision 2, is amended to read:


Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make
loans or equity investments in mineral or taconite processing facilities including, but
not limited to, taconite processing, direct reduction processing, and
, steel production
facilities, facilities for the manufacturing of renewable energy products, or facilities for the
manufacturing of biobased or biomass products, and that are located within the taconite
relief tax area as defined under section 273.134
. The commissioner must, prior to making
any loans or equity investments and after consultation with industry and public officials,
develop a strategy for making loans and equity investments that assists the Minnesota
mineral industry in becoming globally competitive. Money in the fund may also be used to
pay for the costs of carrying out the commissioner's due diligence duties under this section.

Sec. 6.

Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to read:


Subd. 5.

Grant limits.

A Minnesota investment fund grant may not be approved for
an amount in excess of $1,000,000. This limit covers all money paid to complete the same
project, whether paid to one or more grant recipients and whether paid in one or more
fiscal years. A local community or recognized Indian tribal government may retain 20
40 percent, but not more than $100,000, of a Minnesota investment fund grant when it is
repaid to the local community or recognized Indian tribal government by the person or
entity to which it was loaned by the local community or Indian tribal government. Money
repaid to the state must be credited to a Minnesota investment revolving loan account in
the state treasury. Funds in the account are appropriated to the commissioner and must
be used in the same manner as are funds appropriated to the Minnesota investment fund.
Funds repaid to the state through existing Minnesota investment fund agreements must be
credited to the Minnesota investment revolving loan account effective July 1, 2005. A
grant or loan may not be made to a person or entity for the operation or expansion of a
casino or a store which is used solely or principally for retail sales. Persons or entities
receiving grants or loans must pay each employee total compensation, including benefits
not mandated by law, that on an annualized basis is equal to at least 110 percent of the
federal poverty level for a family of four.

Sec. 7.

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


116L.98 WORKFORCE PROGRAM OUTCOMES.

Subdivision 1.

Requirements.

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

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

Subd. 2.

Definitions.

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

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

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

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

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

Subd. 3.

Uniform outcome report card; reporting by commissioner.

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

(1) the total number of participants enrolled;

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

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

(4) the total number of participants enrolled in training;

(5) the total number of participants enrolled in training by occupational group;

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

(7) the total number of exited participants who completed training;

(8) the total number of exited participants who attained a credential;

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

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

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

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

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

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

Subd. 4.

Data to commissioner; uniform report card.

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

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

Subd. 5.

Information.

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

Subd. 6.

Limitations on future appropriations.

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

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

Subd. 7.

Workforce program net impact analysis.

(a) By January 15, 2015, the
commissioner must report to the committees of the house of representatives and the senate
having jurisdiction over economic development and workforce policy and finance on
the results of the net impact pilot project already underway as of the date of enactment
of this section.

(b) The commissioner shall contract with an independent entity to conduct an ongoing
net impact analysis of the programs included in the net impact pilot project under paragraph
(a) and any other programs deemed appropriate by the commissioner. The net impact
methodology used by the independent entity under this paragraph must be based on the
methodology and evaluation design used in the net impact pilot project under paragraph (a).

(c) By January 15, 2017, and every four years thereafter, the commissioner must
report to the committees of the house of representatives and the senate having jurisdiction
over economic development and workforce policy and finance the following information
for each program subject to paragraph (b):

(1) the net impact of workforce services on individual employment, earnings, and
public benefit usage outcomes; and

(2) a cost-benefit analysis for understanding the monetary impacts of workforce
services from the participant and taxpayer points of view.

The report under this paragraph must be made available to the public in an electronic
format on the Department of Employment and Economic Development's Web site.

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

Sec. 8.

Minnesota Statutes 2012, section 179.02, is amended by adding a subdivision
to read:


Subd. 6.

Receipt of gifts, money; appropriation.

(a) The commissioner may apply
for, accept, and disburse gifts, bequests, grants, or payments for services from the United
States, the state, private foundations, or any other source.

(b) Money received by the commissioner under this subdivision must be deposited in
a separate account in the state treasury and invested by the State Board of Investment. The
amount deposited, including investment earnings, is appropriated to the commissioner
to carry out duties of the commissioner.

(c) The commissioner must post and maintain, on the Bureau of Mediation Services
Web site, a list of the sources of funds and amounts received under this subdivision.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9.

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


Subd. 7.

Approved training programs.

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

Sec. 10.

Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:


Subd. 1d.

Technical assistance.

(a) The commissioner shall evaluate energy
conservation improvement programs on the basis of cost-effectiveness and the reliability
of the technologies employed. The commissioner shall, by order, establish, maintain, and
update energy-savings assumptions that must be used when filing energy conservation
improvement programs. The commissioner shall establish an inventory of the most
effective energy conservation programs, techniques, and technologies, and encourage all
Minnesota utilities to implement them, where appropriate, in their service territories.
The commissioner shall describe these programs in sufficient detail to provide a utility
reasonable guidance concerning implementation. The commissioner shall prioritize the
opportunities in order of potential energy savings and in order of cost-effectiveness. The
commissioner may contract with a third party to carry out any of the commissioner's duties
under this subdivision, and to obtain technical assistance to evaluate the effectiveness of
any conservation improvement program. The commissioner may assess up to $800,000
annually until June 30, 2009, and $450,000
$850,000 annually thereafter for the purposes
of this subdivision. The assessments must be deposited in the state treasury and credited
to the energy and conservation account created under subdivision 2a. An assessment
made under this subdivision is not subject to the cap on assessments provided by section
216B.62, or any other law.

(b) Of the assessment authorized under paragraph (a), the commissioner may expend
up to $400,000 annually for the purpose of developing, operating, maintaining, and
providing technical support for a uniform electronic data reporting and tracking system
available to all utilities subject to this section, in order to enable accurate measurement of
the cost and energy savings of the energy conservation improvements required by this
section. This paragraph expires June 30, 2017, and may be used for no more than three
annual assessments occurring prior to that date.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to assessments made after June 30, 2014.

Sec. 11.

Minnesota Statutes 2012, section 216C.145, is amended to read:


216C.145 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
RENEWABLE ENERGY
LOAN PROGRAM.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Small-scale Community energy efficiency and renewable energy projects"
projects include means solar thermal water heating, solar electric or photovoltaic
equipment, small wind energy conversion systems of less than 250 kW, anaerobic digester
gas systems, microhydro systems up to 100 kW, and heating and cooling applications
using geothermal energy solar thermal or ground source technology, and cost-effective
energy efficiency projects installed in industrial, commercial or public buildings, or health
care facilities
.

(c) "Health care facilities" means a hospital licensed under sections 144.50 to
144.56, or a nursing home licensed under chapter 144A.

(d) "Industrial customer" means a business that is classified under the North
American Industrial Classification System under codes 21, 31 to 33, 48, 49, or 562.

(e) "Small business" means a business that employs 50 or fewer employees.

(c) (f) "Unit of local government" means any home rule charter or statutory city,
county, commission, district, authority, or other political subdivision or instrumentality
of this state, including a sanitary district, park district, the Metropolitan Council, a port
authority, an economic development authority, or a housing and redevelopment authority.

Subd. 2.

Program established.

The commissioner of commerce shall develop,
implement, and administer a microenergy community energy efficiency and renewable
energy
loan program under this section.

Subd. 3.

Loan purposes.

(a) The commissioner may issue low-interest, long-term
loans to units of local government to:

(1) finance community-owned or publicly owned small scale renewable energy
systems or to cost-effective energy efficiency improvements to public buildings; or

provide loans or other aids to small businesses to install small-scale renewable
energy systems

(2) provide loans or other aids to industrial or commercial businesses or health care
facilities for cost-effective energy efficiency projects or to install renewable energy systems
.

(b) The commissioner may participate in loans made by the Housing Finance
Agency to residential property owners, private developers, nonprofit organizations,
or units of local government under sections 462A.05, subdivisions 14 and 18; and
462A.33 for the construction, purchase, or rehabilitation of residential housing to facilitate
the installation of small-scale renewable energy systems in residential housing and
cost-effective energy conservation improvements identified in an energy efficiency audit.
The commissioner shall assist the Housing Finance Agency in assessing the technical
qualifications of loan applicants.

(c) If an industrial, commercial, or health care facility customer seeks a loan
under paragraph (a), clause (2), the commissioner may require an individual industrial,
commercial, or health care facility customer to provide its energy usage data for the
limited purpose of assessing the energy and cost savings of the project that is subject to
the loan. Industrial, commercial, or health care facility customer's energy usage data
may only be released upon the express, written consent of the individual industrial,
commercial, or health care facility customer. The commissioner shall not require an
industrial, commercial, or health care facility customer to provide energy usage data
or aggregation of energy usage data that includes an industrial, commercial, or health
care facility customer for any other loan under this section. Any individual industrial,
commercial, or health care facility customer's energy usage data provided under this
section shall be classified as nonpublic data as defined in section 13.02, subdivision 9.

Subd. 4.

Technical standards.

The commissioner shall determine technical
standards for small-scale renewable energy systems community energy efficiency and
renewable energy projects
to qualify for loans under this section.

Subd. 5.

Loan proposals.

(a) At least once a year, the commissioner shall publish in
the State Register a request for proposals from units of local government for a loan under
this section. Within 45 days after the deadline for receipt of proposals, the commissioner
shall select proposals based on the following criteria:

(1) the reliability and cost-effectiveness of the renewable or energy efficiency
technology to be installed under the proposal;

(2) the extent to which the proposal effectively integrates with the conservation and
energy efficiency programs or goals of the energy utilities serving the proposer;

(3) the total life cycle energy use and greenhouse gas emissions reductions per
dollar of installed cost;

(4) the diversity of the renewable energy or energy efficiency technology installed
under the proposal;

(5) the geographic distribution of projects throughout the state;

(6) the percentage of total project cost requested;

(7) the proposed security for payback of the loan; and

(8) other criteria the commissioner may determine to be necessary and appropriate.

Subd. 6.

Loan terms.

A loan under this section must be issued at the lowest interest
rate required to recover principal and interest plus the costs of issuing the loan, and must
be for a minimum of 15 years, unless the commissioner determines that a shorter loan
period of no less than ten five years is necessary and feasible.

Subd. 7.

Account.

A microenergy community energy efficiency and renewable
energy
loan account is established in the state treasury. Money in the account consists of
the proceeds of revenue bonds issued under section 216C.146, interest and other earnings
on money in the account, money received in repayment of loans from the account,
legislative appropriations, and money from any other source credited to the account.

Subd. 8.

Appropriation.

Money in the account is appropriated to the commissioner
of commerce to make microenergy community energy efficiency and renewable energy
loans under this section and to the commissioner of management and budget to pay debt
service and other costs under section 216C.146. Payment of debt service costs and funding
reserves take priority over use of money in the account for any other purpose.

Sec. 12.

Minnesota Statutes 2012, section 216C.146, is amended to read:


216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
RENEWABLE ENERGY
LOAN REVENUE BONDS.

Subdivision 1.

Bonding authority; definition.

(a) The commissioner of
management and budget, if requested by the commissioner of commerce, shall sell and
issue state revenue bonds for the following purposes:

(1) to make microenergy community energy efficiency and renewable energy loans
under section 216C.145;

(2) to pay the costs of issuance, debt service, including capitalized interest, and
bond insurance or other credit enhancements, and to fund reserves, and make payments
under other agreements entered into under subdivision 2, but excludes refunding bonds
sold and issued under this subdivision
; and

(3) to refund bonds issued under this section.

(b) The aggregate principal amount of bonds for the purposes of paragraph (a),
clause (1), that may be outstanding at any time may not exceed $100,000,000, of which
up to
$20,000,000 shall be reserved for community energy efficiency and renewable
energy projects taking place in small businesses and public buildings
; the principal
amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
(3), is not limited.

(c) For the purpose of this section, "commissioner" means the commissioner of
management and budget.

(d) Revenue bonds may be issued from time to time in one or more series on the
terms and conditions the commissioner determines to be in the best interests of the state at
any price or percentages of par value, but the term on any series of revenue bonds may
not exceed 25 years. The revenue bonds of each issue and series thereof shall be dated
and bear interest, and may be includable in or excludable from the gross income of the
owners for federal income tax purposes.

(e) Revenue bonds may be sold at either public or private sale. Any bid received
may be rejected.

(f) The revenue bonds are not subject to chapter 16C.

(g) Notwithstanding any other law, revenue bonds issued under this section shall
be fully negotiable.

(h) Revenue bond terms must be no longer than the term of any corresponding
loan made under section 216C.145.

Subd. 2.

Procedure.

The commissioner may sell and issue the bonds on the terms
and conditions the commissioner determines to be in the best interests of the state. The
bonds may be sold at public or private sale. The commissioner may enter into any
agreements or pledges the commissioner determines necessary or useful to sell the bonds
that are not inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to
the bonds. The proceeds of the bonds issued under this section must be credited to the
microenergy community energy efficiency and renewable energy loan account created
under section 216C.145.

Subd. 3.

Revenue sources.

The debt service on the bonds is payable only from the
following sources:

(1) revenue credited to the microenergy community energy efficiency and renewable
energy
loan account from the sources identified in section 216C.145 or from any other
source; and

(2) other revenues pledged to the payment of the bonds, including reserves
established by a local government unit
.

Subd. 4.

Refunding bonds.

The commissioner may issue bonds to refund
outstanding bonds issued under subdivision 1, including the payment of any redemption
premiums on the bonds and any interest accrued or to accrue to the first redemption date
after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
discretion of the commissioner, be applied to the purchases or payment at maturity of the
bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
date after delivery of the refunding bonds and may, until so used, be placed in escrow to
be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
subdivision must be issued and secured in the manner provided by the commissioner.

Subd. 5.

Not a general or moral obligation.

Bonds issued under this section are
not public debt, and the full faith, credit, and taxing powers of the state are not pledged
for their payment. The bonds may not be paid, directly in whole or in part from a tax of
statewide application on any class of property, income, transaction, or privilege. Payment
of the bonds is limited to the revenues explicitly authorized to be pledged under this
section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
revenues and other legal security for them is insufficient.

Subd. 6.

Trustee.

The commissioner may contract with and appoint a trustee for
bondholders. The trustee has the powers and authority vested in it by the commissioner
under the bond and trust indentures.

Subd. 7.

Pledges.

A pledge made by the commissioner is valid and binding from
the time the pledge is made. The money or property pledged and later received by the
commissioner is immediately subject to the lien of the pledge without any physical
delivery of the property or money or further act, and the lien of the pledge is valid and
binding as against all parties having claims of any kind in tort, contract, or otherwise
against the commissioner, whether or not those parties have notice of the lien or pledge.
Neither the order nor any other instrument by which a pledge is created need be recorded.

Subd. 8.

Bonds; purchase and cancellation.

The commissioner, subject to
agreements with bondholders that may then exist, may, out of any money available for the
purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
then redeemable, the redemption price then applicable plus accrued interest to the next
interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
applicable on the first date after the purchase upon which the bonds become subject to
redemption plus accrued interest to that date.

Subd. 9.

State pledge against impairment of contracts.

The state pledges and
agrees with the holders of any bonds that the state will not limit or alter the rights vested in
the commissioner to fulfill the terms of any agreements made with the bondholders, or
in any way impair the rights and remedies of the holders until the bonds, together with
interest on them, with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceeding by or on behalf of the bondholders,
are fully met and discharged. The commissioner may include this pledge and agreement
of the state in any agreement with the holders of bonds issued under this section.

Subd. 10.

Revenue bonds as legal investments.

Any of the following entities may
legally invest any sinking funds, money, or other funds belonging to them or under their
control in any revenue bonds issued under this section:

(1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;

(2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and

(3) personal representatives, guardians, trustees, and other fiduciaries.

Subd. 11.

Waiver of immunity.

The waiver of immunity by the state provided for
by section 3.751, subdivision 1, shall be applicable to the revenue bonds and any ancillary
contracts to which the commissioner is a party.

Sec. 13.

Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:


Subd. 14.

Affirmative business enterprise employment.

"Affirmative business
enterprise employment" means employment which provides paid work on the premises of
an affirmative business enterprise as certified by the commissioner.

Affirmative business enterprise employment is considered community employment
for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
that the wages for individuals reported must be at or above customary wages for the same
employer. The employer must also provide one benefit package that is available to all
employees at the specific site certified as an affirmative business enterprise.

Sec. 14.

[268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE
DEAF, DEAFBLIND, OR HARD-OF-HEARING.

Subdivision 1.

Deaf, deafblind, and hard-of-hearing grants.

(a) The
commissioner shall develop and implement a specialized statewide grant program to
provide long-term supported employment services for persons who are deaf, deafblind,
and hard-of-hearing. Programs and services eligible for grants under this section must:

(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and
advancing in employment;

(2) provide services with staff who must possess fluency in all forms of manual
communication, including American Sign Language; knowledge of hearing loss and
psychosocial implications; sensitivity to cultural issues; familiarity with community
services and communication strategies for people who are hard-of-hearing and do not sign;
and awareness of adaptive technology options;

(3) provide specialized employment support services for individuals who have
a combined hearing and vision loss that address the individual's unique ongoing visual
and auditory communication needs; and

(4) involve clients in the planning, development, oversight, and delivery of
long-term ongoing support services.

(b) Priority for funding shall be given to organizations with experience in developing
innovative employment support services for persons who are deaf, deafblind, and
hard-of-hearing. Each applicant for funds under this section shall submit an evaluation
protocol as part of the grant application.

Subd. 2.

Employment services for transition-aged youth who are deaf,
deafblind, and hard-of-hearing.

(a) The commissioner shall develop statewide or
regional grant programs to provide school-based communication, access, and employment
services for youth who are deaf, deafblind, and hard-of-hearing. Services must include
staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise
in serving transition-aged youth.

(b) Priority for funding shall be given to organizations with experience in providing
innovative employment support services and readiness for postsecondary training for
transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for
funds under this section shall submit an evaluation protocol as part of the grant application.

Subd. 3.

Administration.

Up to five percent of the biennial appropriation for the
purpose of this section is available to the commissioner for administration of the program.

EFFECTIVE DATE.

This section is effective upon enactment of a direct
appropriation for grants under this section.

Sec. 15.

Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:


Subd. 2.

City or town where quarried or produced.

(a) 4.5 cents per gross ton of
merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
provided in paragraph (c), must be allocated to the city or town in the county in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. If the mining, quarrying, and concentration, or different steps
in either thereof are carried on in more than one taxing district, the commissioner shall
apportion equitably the proceeds of the part of the tax going to cities and towns among
such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
the operation of mining or quarrying the taconite, and the remainder to the concentrating
plant and to the processes of concentration, and with respect to each thereof giving due
consideration to the relative extent of such operations performed in each such taxing
district. The commissioner's order making such apportionment shall be subject to review
by the Tax Court at the instance of any of the interested taxing districts, in the same
manner as other orders of the commissioner.

(b) Four cents per taxable ton shall be allocated to cities and organized townships
affected by mining because their boundaries are within three miles of a taconite mine pit
that has been actively mined in at least one of the prior three years. If a city or town is
located near more than one mine meeting these criteria, the city or town is eligible to
receive aid calculated from only the mine producing the largest taxable tonnage. When
more than one municipality qualifies for aid based on one company's production, the aid
must be apportioned among the municipalities in proportion to their populations. Of The
amounts distributed under this paragraph to each municipality, one-half must be used for
infrastructure improvement projects, and one-half must be used for projects in which two
or more municipalities cooperate. Each municipality that receives a distribution under this
paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
the commissioner of Iron Range resources and rehabilitation on the projects involving
cooperation with other municipalities
.

(c) The amount that would have been computed for the current year under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
the cities and townships within the school district in the proportion that their taxable net
tax capacity within the school district bears to the taxable net tax capacity of the school
district for property taxes payable in the year prior to distribution.

Sec. 16.

Laws 2013, chapter 143, article 11, section 10, is amended to read:


Sec. 10. 2013 DISTRIBUTION ONLY.

For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
any excess of the balance remaining after distribution of amounts required under Minnesota
Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
County acting as the fiscal agent for the recipients for the following specific purposes:

(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
supply system;

(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
required as a result of actions undertaken by United States Steel Corporation;

(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water
supply system, payable upon agreement with ArcelorMittal to satisfy water permit
conditions
system to further the established collaborative efforts between the city of
Biwabik, the city of Aurora, and surrounding communities
;

(4) 2 cents per ton to the city of Tower for the Tower Marina;

(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
system to replace aging effluent lines and for parking lot repaving;

(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
improvements;

(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;

(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
Intermodal Transportation Center;

(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
hockey arena renovations;

(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
Greenway Township;

(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;

(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;

(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
sewer extension;

(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;

(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;

(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park
infrastructure, and a maintenance garage;

(17) 0.5 cents per ton to the city of Cook for a water line project;

(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street
reconstruction and the city auditorium;

(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and
water line replacements;

(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North
infrastructure and Franklin Park improvement; and

(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development
project.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 17. 2014 DISTRIBUTION ONLY.

For the 2014 distribution, a special fund is established to receive 18.84 cents per ton of
any excess of the balance remaining after distribution of amounts required under Minnesota
Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
County acting as the fiscal agent for the recipients for the following specific purposes:

(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;

(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation
at the Reif Center;

(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements
to accommodate business expansion in the city;

(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;

(5) 0.39 cents per ton to Balkan Township for a salt storage building and
energy-efficient cold storage building;

(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city
of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to
secure a potable water source for the city, provided that the city of McKinley secures
the remainder of the project costs from other sources, and expires three years following
the date of distribution;

(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for
township block grants to be distributed by the board;

(8) 0.5 cents per ton to the city of Marble for a water main and looping project;

(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;

(10) 0.35 cents per ton to the city of Babbitt for demolition of a public building;

(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;

(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;

(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;

(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;

(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall;

(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater
treatment project;

(17) 0.47 cents per ton to the city of Cuyuna for improvements to city properties and
facilities, including construction, electrical, water, sewer, and site preparation; and

(18) 0.3 cents per ton to Morse Township for a recreational trail.

EFFECTIVE DATE.

This section is effective for the 2014 distribution, and all
payments must be made separately and within ten days of the date of the August 2014
payment.

Sec. 18. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM;
EVALUATION.

The commissioner of commerce may utilize a stakeholder group to annually monitor
the usability and product development of systems for electronic data reporting and
tracking for the use of utilities under the conservation improvement plan program under
Minnesota Statutes, section 216B.241. The initial group may be convened by November
1, 2014, and must, among others, include representatives from all sectors of the gas and
electric utility industry and providers of energy conservation.

Sec. 19. INNOVATION VOUCHER PILOT PROGRAM.

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

(b) Funds available under this section may be used by a small business to access
technical assistance and other services including, but not limited to: research, technical
development, product development, commercialization, market development, technology
exploration, and improved business practices including strategies to grow business and
create operational efficiencies.

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

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

(2) deliverable outcomes in one of the following areas:

(i) research and development;

(ii) business model development;

(iii) market feasibility;

(iv) operations; or

(v) other outcomes determined by the commissioner.

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

(d) For the purposes of this section, a small business means a business with fewer
than 40 employees.

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

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

Sec. 20. COMMISSIONER'S ACCOUNTABILITY PLAN.

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

Sec. 21. COMPETENCY STANDARDS: ADVANCED MANUFACTURING,
HEALTH CARE SERVICES, INFORMATION TECHNOLOGY, AND
AGRICULTURE.

(a) The commissioner of labor and industry, in collaboration with the commissioner
of employment and economic development, shall establish competency standards for
programs in advanced manufacturing, health care services, information technology,
and agriculture. This initiative shall be administered by the Department of Labor and
Industry. In establishing the competency standards, the commissioner shall convene
recognized industry experts, representative employers, higher education institutions, and
representatives of labor to assist in defining credible competency standards acceptable to
the advanced manufacturing, health care services, information technology, and agriculture
industries.

(b) The outcomes expected from the initiatives in this section include:

(1) establishment of competency standards for entry level and at least two additional
higher skill levels in each industry;

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

(3) models of ways for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established; and

(4) participation from the identified industry sectors.

(c) By January 15, 2015, the commissioner of labor and industry shall report to the
legislative committees with jurisdiction over jobs on the progress and success, including
outcomes, of the initiatives in this section and recommendations on occupations in which
similar competency standards should be developed and implemented.

Sec. 22. AGRICULTURAL EMPLOYMENT; REPORT.

The commissioner of labor and industry shall report by January 1, 2015, to the chairs
and ranking minority members of the standing committees of the house of representatives
and senate with jurisdiction over labor policy and finance issues on the number of
agricultural employers who are using a 48 hour work week and the number of employees
affected. The commissioner shall include recommendations for appropriate compensation
for such agricultural employees. For the purposes of this section, "agriculture" has the
meaning given in Minnesota Rules, part 5200.0260.

Sec. 23. REPEALER.

Minnesota Statutes 2012, section 116J.997, is repealed.

ARTICLE 4

STATE DEPARTMENTS AND VETERANS

Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund, or another named
fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
and "2015" used in this article mean that the addition to the appropriation listed under
them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2014
2015

Sec. 2. STATE DEPARTMENTS AND
VETERANS APPROPRIATIONS

Subdivision 1.

Legislative Coordinating
Commission

$
-0-
$
380,000

$225,000 is for operating costs of the joint
legislative offices. $150,000 each year is
added to the base.

$155,000 is for the Legislative Water
Commission established in section 3.
$145,000 each fiscal year is added to the base
through fiscal year 2019.

Subd. 2.

Minnesota Housing Finance Agency

-0-
250,000

$250,000 is for at least five grants of up
to $50,000 each to conduct a housing
needs assessment for veterans in any
community within the state. No more than
five percent may be used by the Minnesota
Housing Finance Agency to administer
these grants. The grants may be awarded
to any government or nongovernmental
organization. The assessment, which may be
a study or a survey, may examine the need for
scattered site housing for veterans and their
families who are homeless or in danger of
homelessness or for housing that addresses
the health care needs of disabled or aging
veterans. The assessment must be started by
July 30, 2015, and completed by July 30,
2016. The commissioner of the Minnesota
Housing Finance Agency must provide
copies of any completed assessment to the
chairs and ranking minority members of
the legislative committees with jurisdiction
over housing and veterans affairs no later
than January 1, 2017. This is a onetime
appropriation.

Subd. 3.

Racing Commission

100,000
85,000

These appropriations are from the racing
and card playing regulation accounts in the
special revenue fund. These appropriations
are onetime and are available in either year
of the biennium.

Subd. 4.

Amateur Sports Commission

-0-
50,000

$50,000 is to develop a pilot program to
prevent and reduce childhood obesity. This
appropriation is onetime and is available
until June 30, 2017.

Subd. 5.

Minnesota Historical Society

-0-
25,000

$25,000 is for a grant to Farm America for
repairs and maintenance of the Minnesota
Agricultural Interpretive Center and for audit
expenses. This is a onetime appropriation
and is available until June 30, 2017.

Subd. 6.

Board of the Arts

-0-
750,000

$750,000 is appropriated from the arts and
cultural heritage fund for arts education in
partnership with the President's Turnaround
Arts Initiative. This appropriation is
contingent on Minnesota being designated
a Turnaround site. This appropriation is
available until June 30, 2015. This is a
onetime appropriation.

Subd. 7.

Minnesota Humanities Center

-0-
225,000

$125,000 is from the arts and cultural heritage
fund for the Veterans' Voices program to
educate and engage the community regarding
veterans' contributions, knowledge, skills,
and experiences. Of this amount, $25,000 is
for transfer to the Association of Minnesota
Public Education Radio Stations for statewide
programming to promote the Veterans' Voices
program. This is a onetime appropriation.

$100,000 is from the arts and cultural
heritage fund for professional development
for kindergarten through grade 12 educators
to better culturally engage their work with
at-risk student populations. This may include
new and original literature that addresses
literacy of emerging cultural communities.
This is a onetime appropriation.

Subd. 8.

Department of Education

-0-
44,000

This appropriation is to implement expedited
and temporary licensing provisions of
Minnesota Statutes, section 197.4552. This
is a onetime appropriation.

Subd. 9.

Board of Accountancy

-0-
44,000

This appropriation is to implement expedited
and temporary licensing provisions of
Minnesota Statutes, section 197.4552. This
is a onetime appropriation.

Subd. 10.

Board of Architecture, Engineering,
Land Surveying, Landscape, Architecture,
Geoscience, and Interior Design

-0-
44,000

This appropriation is to implement expedited
and temporary licensing provisions of
Minnesota Statutes, section 197.4552. This
is a onetime appropriation.

Subd. 11.

Board of Cosmetologist Examiners

-0-
20,000

This appropriation is to implement expedited
and temporary licensing provisions of
Minnesota Statutes, section 197.4552. This
is a onetime appropriation.

Subd. 12.

Board of Barber Examiners

-0-
10,000

This appropriation is to implement expedited
and temporary licensing provisions of
Minnesota Statutes, section 197.4552. This
is a onetime appropriation.

Subd. 13.

Board of Private Detectives

-0-
44,000

This appropriation is to implement expedited
and temporary licensing provisions of
Minnesota Statutes, section 197.4552. This
is a onetime appropriation.

Subd. 14.

Board of Behavioral Health and
Therapy

-0-
15,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 15.

Board of Dentistry

-0-
10,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 16.

Board of Dietetics and Nutrition
Practice

-0-
10,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 17.

Board of Marriage and Family
Therapy

-0-
14,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 18.

Board of Nursing Home
Administrators

-0-
1,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 19.

Board of Optometry

-0-
10,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 20.

Board of Podiatric Medicine

-0-
10,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Subd. 21.

Board of Social Work

-0-
3,000

This appropriation is from the state
government special revenue fund to
implement expedited and temporary licensing
provisions of Minnesota Statutes, section
197.4552. This is a onetime appropriation.

Sec. 3.

[3.886] LEGISLATIVE WATER COMMISSION.

Subdivision 1.

Establishment.

A Legislative Water Commission is established.

Subd. 2.

Membership.

(a) The Legislative Water Commission consists of 12
members appointed as follows:

(1) six members of the senate, including three majority party members appointed by
the majority leader and three minority party members appointed by the minority leader; and

(2) six members of the house of representatives, including three majority party
members appointed by the speaker of the house and three minority party members
appointed by the minority leader.

(b) Members serve at the pleasure of the appointing authority and continue to serve
until their successors are appointed or until a member is no longer a member of the
legislative body that appointed the member to the commission. Vacancies shall be filled in
the same manner as the original positions. Vacancies occurring on the commission do not
affect the authority of the remaining members of the Legislative Water Commission to
carry out the function of the commission.

(c) Members shall elect a chair, vice chair, and other officers as determined by
the commission. The chair may convene meetings as necessary to conduct the duties
prescribed by this section.

Subd. 3.

Commission staffing.

The Legislative Coordinating Commission must
employ staff and contract with consultants as necessary to enable the Legislative Water
Commission to carry out its duties and functions.

Subd. 4.

Powers and duties.

(a) The Legislative Water Commission shall review
water policy reports and recommendations of the Environmental Quality Board, the Board
of Water and Soil Resources, the Pollution Control Agency, the Department of Natural
Resources, the Metropolitan Council, and other water-related reports as may be required
by law or the legislature.

(b) The commission may conduct public hearings and otherwise secure data and
comments.

(c) The commission shall make recommendations as it deems proper to assist the
legislature in formulating legislation.

(d) Data or information compiled by the Legislative Water Commission or its
subcommittees shall be made available to the Legislative-Citizen Commission on
Minnesota Resources, the Clean Water Council, and standing and interim committees of
the legislature on request of the chair of the respective commission, council, or committee.

(e) The commission shall coordinate with the Clean Water Council.

Subd. 5.

Compensation.

Members of the commission may receive per diem and
expense reimbursement incurred doing the work of the commission in the manner and
amount prescribed for per diem and expense payments by the senate Committee on Rules
and Administration and the house of representatives Committee on Rules and Legislative
Administration.

Subd. 6.

Expiration.

This section expires July 1, 2019.

Sec. 4.

Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is
amended to read:


Subdivision 1.

Creation.

A Compensation Council is created each odd-numbered
year to assist the legislature in establishing the compensation of constitutional officers,
members of the legislature, justices of the Supreme Court, judges of the Court of Appeals
and district court, and the heads of state and metropolitan agencies included in section
15A.0815.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is
amended to read:


Subd. 3.

Submission of recommendations.

(a) By March April 15 in each
odd-numbered year, the Compensation Council shall submit to the speaker of the house
and the president of the senate salary recommendations for constitutional officers,
legislators, justices of the Supreme Court, and judges of the Court of Appeals and district
court. The recommended salary for each other office must take effect on the first Monday
in January of the next odd-numbered year, with no more than one adjustment, to take
effect on January 1 of the year after that. The salary recommendations for legislators,
judges, and constitutional officers take effect if an appropriation of money to pay the
recommended salaries is enacted after the recommendations are submitted and before
their effective date. Recommendations may be expressly modified or rejected. The salary
recommendations for legislators are subject to additional terms that may be adopted
according to section 3.099, subdivisions 1 and 3.

(b) The council shall also submit to the speaker of the house and the president of
the senate recommendations for the salary ranges of the heads of state and metropolitan
agencies, to be effective retroactively from January 1 of that year if enacted into law. The
recommendations shall include the appropriate group in section 15A.0815 to which each
agency head should be assigned and the appropriate limitation on the maximum range of
the salaries of the agency heads in each group, expressed as a percentage of the salary of
the governor.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:


Subd. 4.

Criteria.

In making compensation recommendations, the council shall
consider the amount of compensation paid in government service and the private sector
to persons with similar qualifications, the amount of compensation needed to attract
and retain experienced and competent persons, and the ability of the state to pay the
recommended compensation. In making recommendations for legislative compensation,
the council shall also consider the average length of a legislative session, the amount of
work required of legislators during interim periods, and opportunities to earn income from
other sources without neglecting legislative duties.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:


Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the
federal government as a condition of receiving federal funds, the commissioner shall
award up to a six percent preference, but no less than the percentage awarded to any
other group under this section, in the amount bid on state procurement to certified small
businesses that are majority-owned and operated by: veterans.

(1) recently separated veterans who have served in active military service, at any
time on or after September 11, 2001, and who have been discharged under honorable
conditions from active service, as indicated by the person's United States Department of
Defense form DD-214 or by the commissioner of veterans affairs;

(2) veterans with service-connected disabilities, as determined at any time by the
United States Department of Veterans Affairs; or

(3) any other veteran-owned small businesses certified under section 16C.19,
paragraph (d).

(b) The purpose of this designation is to facilitate the transition of veterans from
military to civilian life, and to help compensate veterans for their sacrifices, including but
not limited to their sacrifice of health and time, to the state and nation during their military
service, as well as to enhance economic development within Minnesota.

Sec. 8.

Minnesota Statutes 2012, section 16C.19, is amended to read:


16C.19 ELIGIBILITY; RULES.

(a) A small business wishing to participate in the programs under section 16C.16,
subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
by rule standards and procedures for certifying that small businesses, small targeted
group businesses, and small businesses located in economically disadvantaged areas,
and veteran-owned small businesses
are eligible to participate under the requirements
of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and
procedures for hearing appeals and grievances and other rules necessary to carry out the
duties set forth in sections 16C.16 to 16C.21.

(b) The commissioner may make rules which exclude or limit the participation of
nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.

(c) The commissioner may make rules that set time limits and other eligibility limits
on business participation in programs under sections 16C.16 to 16C.21.

(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a
veteran-owned small business, the principal place of business of which is in Minnesota, is
certified if it has been verified by the United States Department of Veterans Affairs as being
either a veteran-owned small business or a service-disabled veteran-owned small business,
in accordance with Public Law 109-461 and Code of Federal Regulations, title 38, part 74.

(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
be read to include veteran-owned small businesses. In addition to the documentation
required in Minnesota Rules, part 1230.1700, the veteran owner must have been
discharged under honorable conditions from active service, as indicated by the veteran
owner's most current United States Department of Defense form DD-214.

Sec. 9.

Minnesota Statutes 2012, section 122A.18, is amended by adding a subdivision
to read:


Subd. 7c.

Temporary military license.

The Board of Teaching shall establish
a temporary license in accordance with section 197.4552 for teaching. The fee for a
temporary license under this subdivision shall be $87.90 for an online application or
$86.40 for a paper application.

Sec. 10.

[148.595] TEMPORARY MILITARY PERMIT; FEE.

The Board of Optometry shall establish a temporary permit in accordance with
section 197.4552. The fee for the temporary military permit is $250.

Sec. 11.

Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision
to read:


Subd. 5.

Temporary military permit.

The board shall issue a temporary permit to
members of the military in accordance with section 197.4552. The fee for the temporary
permit is $250.

Sec. 12.

Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is
amended to read:


Subd. 2.

Licensure and application fees.

Nonrefundable licensure and application
fees established by the board shall not exceed the following amounts:

(1) application fee for national examination is $110;

(2) application fee for Licensed Marriage and Family Therapist (LMFT) state
examination is $110;

(3) initial LMFT license fee is prorated, but cannot exceed $125;

(4) annual renewal fee for LMFT license is $125;

(5) late fee for LMFT license renewal is $50;

(6) application fee for LMFT licensure by reciprocity is $220;

(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT)
license is $75;

(8) annual renewal fee for LAMFT license is $75;

(9) late fee for LAMFT renewal is $25;

(10) fee for reinstatement of license is $150; and

(11) fee for emeritus status is $125; and

(12) fee for temporary license for members of the military is $100.

Sec. 13.

Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:


Subd. 3.

Fee.

Nonrefundable fees are as follows:

(1) initial license application fee for licensed professional counseling (LPC) - $150;

(2) initial license fee for LPC - $250;

(3) annual active license renewal fee for LPC - $250 or equivalent;

(4) annual inactive license renewal fee for LPC - $125;

(5) initial license application fee for licensed professional clinical counseling
(LPCC) - $150;

(6) initial license fee for LPCC - $250;

(7) annual active license renewal fee for LPCC - $250 or equivalent;

(8) annual inactive license renewal fee for LPCC - $125;

(9) license renewal late fee - $100 per month or portion thereof;

(10) copy of board order or stipulation - $10;

(11) certificate of good standing or license verification - $25;

(12) duplicate certificate fee - $25;

(13) professional firm renewal fee - $25;

(14) sponsor application for approval of a continuing education course - $60;

(15) initial registration fee - $50;

(16) annual registration renewal fee - $25; and

(17) approved supervisor application processing fee - $30; and

(18) temporary license for members of the military - $250.

Sec. 14.

Minnesota Statutes 2012, section 150A.091, is amended by adding a
subdivision to read:


Subd. 9c.

Temporary permit.

Applications for a temporary military permit in
accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.

Sec. 15.

Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision
to read:


Subd. 4.

Temporary military permit.

The board shall establish a temporary permit
in accordance with section 197.4552. The fee for the temporary military permit is $250.

Sec. 16.

Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter
85, article 5, section 12, is amended to read:


154.11 EXAMINATION OF NONRESIDENT BARBERS AND
INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS;
TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS
.

Subdivision 1.

Examination of nonresidents.

A person who meets all of the
requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
154.161, 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate of
registration, or an equivalent as a practicing barber or instructor of barbering from another
state or country which in the discretion of the board has substantially the same requirements
for registering barbers and instructors of barbering as required by sections 154.001,
154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or can prove
by sworn affidavits practice as a barber or instructor of barbering in another state or country
for at least five years immediately prior to making application in this state, shall, upon
payment of the required fee, be issued a certificate of registration without examination.

Subd. 2.

Temporary apprentice permits for nonresidents.

Any person who
qualifies for examination as a registered barber under this section may apply for a
temporary apprentice permit which is effective no longer than six months. All persons
holding a temporary apprentice permit are subject to all provisions of sections 154.001,
154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the
rules adopted by the board under those sections concerning the conduct and obligations
of registered apprentices.

Subd. 3.

Temporary military license.

The board shall establish a temporary license
for barbers and master barbers and a temporary permit for apprentices in accordance with
section 197.4552. The fee for a temporary license under this subdivision for a master
barber is $85. The fee for a temporary license under this subdivision for a barber is $180.
The fee for a temporary permit under this subdivision for an apprentice is $80.

Sec. 17.

Minnesota Statutes 2012, section 155A.27, is amended by adding a
subdivision to read:


Subd. 5a.

Temporary military license.

The board shall establish temporary
licenses for a cosmetologist, nail technician, and esthetician, in accordance with section
197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail
technician, or esthetician is $100.

Sec. 18.

[197.4552] EXPEDITED AND TEMPORARY LICENSING FOR
FORMER AND CURRENT MEMBERS OF THE MILITARY.

Subdivision 1.

Expedited licensing processing.

Notwithstanding any other law to
the contrary, each professional licensing board defined in section 214.01, subdivisions 2
and 3, shall establish a procedure to expedite the issuance of a license or certification to
perform professional services regulated by each board to a qualified individual who is:

(1) an active duty military member;

(2) the spouse of an active duty military member; or

(3) a veteran who has left service in the two years preceding the date of license or
certification application, and has confirmation of an honorable or general discharge status.

Subd. 2.

Temporary licenses.

(a) Notwithstanding any other law to the contrary,
each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall
establish a procedure to issue a temporary license or certification to perform professional
services regulated by each board to a qualified individual who is:

(1) an active duty military member;

(2) the spouse of an active duty military member; or

(3) a veteran who has left service in the two years preceding the date of license or
certification application, and has confirmation of an honorable or general discharge status.

(b) A qualified individual under paragraph (a) must provide evidence of:

(1) a current, valid license, certificate, or permit in another state without history of
disciplinary action by a regulatory authority in the other state; and

(2) a current criminal background study without a criminal conviction that is
determined by the board to adversely affect the applicants' ability to become licensed.

(c) A temporary license or certificate issued under this subdivision shall allow a
qualified individual to perform regulated professional services for a limited length of time
as determined by the licensing board. During the temporary license period, the individual
shall complete the full application procedure as required by applicable law.

Subd. 3.

Rulemaking.

Each licensing board may adopt rules to carry out the
provisions of this section.

Sec. 19.

Minnesota Statutes 2012, section 326.04, as amended by Laws 2014, chapter
236, section 3, is amended to read:


326.04 BOARD ESTABLISHED.

Subdivision 1.

Board composition.

To carry out the provisions of sections 326.02
to 326.15 there is hereby created a Board of Architecture, Engineering, Land Surveying,
Landscape Architecture, Geoscience, and Interior Design consisting of 21 members, who
shall be appointed by the governor. Three members shall be licensed architects, five
members shall be licensed engineers, two members shall be licensed landscape architects,
two members shall be licensed land surveyors, two members shall be certified interior
designers, two members shall be licensed geoscientists, and five members shall be public
members. Not more than one member of the board shall be from the same branch of the
profession of engineering. Membership terms, compensation of members, removal of
members, the filling of membership vacancies, and fiscal year and reporting requirements
shall be as provided in sections 214.07 to 214.09. Members shall be limited to two terms.
The provision of staff, administrative services and office space; the review and processing
of complaints; the setting of board fees; and other provisions relating to board operations
shall be as provided in chapter 214.

Subd. 2.

Temporary military certificate.

The board shall establish a temporary
military certificate in accordance with section 197.4552.

Sec. 20.

Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision
to read:


Subd. 10.

Temporary military license.

The board shall establish a temporary
license in accordance with section 197.4552 for the practice of architecture, professional
engineering, geosciences, land surveying, landscape architecture, and interior design.
The fee for the temporary license under this subdivision for the practice of architecture,
professional engineering, geosciences, land surveying, landscape architecture, or interior
design is $132.

Sec. 21.

Minnesota Statutes 2012, section 326.3382, is amended by adding a
subdivision to read:


Subd. 6.

Temporary military license.

The board shall establish a temporary
license to engage in the business of private detective or protective agent in accordance
with section 197.4552. The fee for the temporary license under this subdivision for a
private detective is $1,000. The fee for a temporary license under this subdivision for a
protective agent is $800.

Sec. 22.

Minnesota Statutes 2012, section 326A.04, is amended by adding a
subdivision to read:


Subd. 1a.

Temporary military certificate.

The board shall establish a temporary
military certificate in accordance with section 197.4552.

Sec. 23.

Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is
amended to read:


Subd. 5.

Fee.

(a) The board shall charge a fee for each application for initial
issuance or renewal of a certificate or temporary military certificate under this section as
provided in paragraph (b). The fee for the temporary military certificate is $100.

(b) The board shall charge the following fees:

(1) initial issuance of certificate, $150;

(2) renewal of certificate with an active status, $100 per year;

(3) initial CPA firm permits, except for sole practitioners, $100;

(4) renewal of CPA firm permits, except for sole practitioners and those firms
specified in clause (17), $35 per year;

(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
those firms specified in clause (17), $35 per year;

(6) annual late processing delinquency fee for permit, certificate, or registration
renewal applications not received prior to expiration date, $50;

(7) copies of records, per page, 25 cents;

(8) registration of noncertificate holders, nonlicensees, and nonregistrants in
connection with renewal of firm permits, $45 per year;

(9) applications for reinstatement, $20;

(10) initial registration of a registered accounting practitioner, $50;

(11) initial registered accounting practitioner firm permits, $100;

(12) renewal of registered accounting practitioner firm permits, except for sole
practitioners, $100 per year;

(13) renewal of registered accounting practitioner firm permits for sole practitioners,
$35 per year;

(14) CPA examination application, $40;

(15) CPA examination, fee determined by third-party examination administrator;

(16) renewal of certificates with an inactive status, $25 per year; and

(17) renewal of CPA firm permits for firms that have one or more offices located in
another state, $68 per year.

Sec. 24.

Minnesota Statutes 2012, section 363A.44, subdivision 1, as added by Laws
2014, chapter 239, article 2, section 6, is amended to read:


Subdivision 1.

Scope.

(a) No department, agency of the state, the Metropolitan
Council, or an agency subject to section 473.143, subdivision 1, shall execute a contract
for goods or services or an agreement for goods or services in excess of $500,000 with a
business that has 40 or more full-time employees in this state or a state where the business
has its primary place of business on a single day during the prior 12 months, unless the
business has an equal pay certificate or it has certified in writing that it is exempt. A
certificate is valid for four years.

(b) This section does not apply to a business with respect to a specific contract if
the commissioner of administration determines that application of this section would
cause undue hardship to the contracting entity. This section does not apply to a contract
to provide goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E,
256B, 256I, 256L, and 268A, with a business that has a license, certification, registration,
provider agreement, or provider enrollment contract that is prerequisite to providing those
goods and services. This section does not apply to contracts entered into by the State
Board of Investment for investment options under section 352.965, subdivision 4.

EFFECTIVE DATE.

This section is effective August 1, 2014.

Sec. 25. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS
AND FIRST MEETING.

Initial appointments to the Legislative Water Commission established in section
3 must be made by September 1, 2014. The first meeting of the Legislative Water
Commission shall be convened by the chair or a designee of the Legislative Coordinating
Commission by October 15, 2014. The Legislative Water Commission shall select a chair
from its membership at its first meeting.

Sec. 26. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL
ACCOMMODATION.

The commissioner of management and budget, in consultation with the Commission
of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs and
ranking minority members of the senate Finance Committee, the house of representatives
Ways and Means Committee, the house of representatives State Government Finance
Committee, the senate State Departments and Veterans Budget Division, and the governor
by January 5, 2015, on advantages and disadvantages of creating an account for the
special revenue fund in the state treasury to pay for costs of providing accommodations to
executive branch state employees with disabilities. The report must include:

(1) a summary of money spent by executive branch state agencies in fiscal years
2012 and 2013 for providing accommodations to executive branch state employees, to
the extent that such expenditures can be determined; and

(2) recommendations for laws and policies needed to implement an account in the
special revenue fund, if one is recommended under this section; or other recommendations
related to best practices in provision of accommodations for employees with disabilities
in the executive branch.

ARTICLE 5

PUBLIC SAFETY AND CORRECTIONS APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2014
2015
Total
General
$
-0-
$
35,057,000
$
35,057,000
State Government Special
Revenue
12,361,000
6,865,000
19,226,000
Total
$
12,361,000
$
41,922,000
$
54,283,000

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund, or another named
fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
and "2015" used in this article mean that the addition to the appropriation listed under
them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2014
2015

Sec. 3. PUBLIC SAFETY

Subdivision 1.

Total Appropriation

$
12,361,000
$
8,638,000
Appropriations by Fund
General
-0-
1,773,000
State Government
Special Revenue
12,361,000
6,865,000

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

Subd. 2.

Emergency Communication Networks

5,059,000
6,865,000

This onetime appropriation is from the state
government special revenue fund for 911
emergency telecommunications services.

Subd. 3.

Office of Justice Programs

-0-
1,300,000

(a) $500,000 in fiscal year 2015 is for youth
intervention programs under Minnesota
Statutes, section 299A.73. The appropriation
must be used to create new programs
statewide in underserved areas and to help
existing programs serve unmet needs in
program communities. Of this amount,
$100,000 in fiscal year 2015 is for a youth
intervention program targeted toward
East African youth. This is a onetime
appropriation and is available until expended.

(b) $500,000 in fiscal year 2015 is for a grant
to provide emergency shelter programming
for victims of domestic abuse and trafficking.
The program shall provide shelter to
East African women and children. The
appropriation must be used for the operating
expenses of a shelter. This is a onetime
appropriation, and is available until June 30,
2017.

(c) $300,000 in fiscal year 2015 is for
grants to sexual assault advocacy programs
for sexual violence community prevention
networks. For purposes of this section,
"sexual assault" means a violation of
Minnesota Statutes, sections 609.342 to
609.3453. $300,000 in each of fiscal years
2016 and 2017 is added to the base.

Subd. 4.

Fire Safety Account

1,300,000
-0-

$1,300,000 in fiscal year 2014 is from the fire
safety account in the special revenue fund
for activities and programs under Minnesota
Statutes, section 299F.012. This is a onetime
appropriation. By January 15, 2015, the
commissioner shall report to the chairs and
ranking minority members of the legislative
committees with jurisdiction over the fire
safety account regarding the balances and
uses of the account.

Subd. 5.

Criminal Apprehension

$473,000 in fiscal year 2015 is to implement
the expungement law changes in Laws 2014,
chapter 246. The base for this activity shall
be $583,000 in each of fiscal years 2016 and
2017.

Sec. 4. CORRECTIONS

Subdivision 1.

Total Appropriation

$
-0-
$
30,139,000

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

Subd. 2.

Correctional Institutions

-0-
27,289,000

This includes a onetime appropriation of
$11,089,000.

Subd. 3.

Community Services

-0-
1,950,000

$50,000 in fiscal year 2015 is a onetime
appropriation to implement the victim
notification provisions in article 6, sections
1, 2, and 5.

Subd. 4.

Operations Support

-0-
900,000

Sec. 5. PEACE OFFICER STANDARDS AND
TRAINING (POST) BOARD

-0-
50,000

$50,000 in fiscal year 2015 is for training
state and local community safety personnel
in the use of crisis de-escalation techniques
for use with Minnesota veterans following
their return from active military service in
a combat zone. The director may consult
with any other state or local governmental
official or nongovernmental authority that the
director determines to be relevant, to include
postsecondary institutions, when selecting
a service provider for this training. The
training provider must have a demonstrated
understanding of the transitions and
challenges that veterans may experience
during their re-entry into society following
combat service. The training opportunities
provided must be reasonably distributed
statewide. This is a onetime appropriation.

Sec. 6. HUMAN RIGHTS

$
0
$
50,000

For outreach to the community regarding
the role and duties of the Council on Black
Minnesotans, the Council on Asian Pacific
Minnesotans, the Chicano Latino Affairs
Council, and the Minnesota Indian Affairs
Council. This is a onetime appropriation.

Sec. 7. HUMAN SERVICES

$
0
$
45,000

$45,000 in fiscal year 2015 is to implement
the expungement law changes in Laws 2014,
chapter 246. The base for this activity shall
be $90,000 in each of fiscal years 2016 and
2017.

Sec. 8.

Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:


Subd. 7.

Emergency Communication Networks

66,470,000
70,233,000

This appropriation is from the state
government special revenue fund for 911
emergency telecommunications services.

(a) Public Safety Answering Points.
$13,664,000 each year is to be distributed
as provided in Minnesota Statutes, section
403.113, subdivision 2.

(b) Medical Resource Communication
Centers.
$683,000 each year is for grants
to the Minnesota Emergency Medical
Services Regulatory Board for the Metro
East and Metro West Medical Resource
Communication Centers that were in
operation before January 1, 2000.

(c) ARMER Debt Service. $17,557,000 the
first year and $23,261,000 the second year
are to the commissioner of finance to pay
debt service on revenue bonds issued under
Minnesota Statutes, section 403.275.

Any portion of this appropriation not needed
to pay debt service in a fiscal year may be
used by the commissioner of public safety to
pay cash for any of the capital improvements
for which bond proceeds were appropriated
by Laws 2005, chapter 136, article 1, section
9, subdivision 8, or Laws 2007, chapter 54,
article 1, section 10, subdivision 8.

(d) Metropolitan Council Debt Service.
$1,410,000 each year is to the commissioner
of finance for payment to the Metropolitan
Council for debt service on bonds issued
under Minnesota Statutes, section 403.27.

(e) ARMER State Backbone Operating
Costs.
$5,060,000 each year is to the
commissioner of transportation for costs
of maintaining and operating the statewide
radio system backbone.

(f) ARMER Improvements. $1,000,000
each year is for the Statewide Radio Board for
costs of design, construction, maintenance
of, and improvements to those elements
of the statewide public safety radio and
communication system that support mutual
aid communications and emergency medical
services or provide enhancement of public
safety communication interoperability.

(g) Next Generation 911. $3,431,000 the
first year and $6,490,000 the second year
are to replace the current system with the
Next Generation Internet Protocol (IP) based
network. This appropriation is available until
expended.
The base level of funding for
fiscal year 2012 shall be $2,965,000.

(h) Grants to Local Government.
$5,000,000 the first year is for grants to
local units of government to assist with
the transition to the ARMER system. This
appropriation is available until June 30, 2012.

EFFECTIVE DATE.

This section is effective retroactively from June 29, 2011.

Sec. 9.

Laws 2013, chapter 86, article 1, section 12, subdivision 1, is amended to read:


Subdivision 1.

Total Appropriation

$
157,851,000
$
161,191,000
161,911,000
Appropriations by Fund
2014
2015
General
82,213,000
82,772,000
Special Revenue
14,062,000
13,062,000
State Government
Special Revenue
59,241,000
63,742,000
Environmental
69,000
69,000
Trunk Highway
2,266,000
2,266,000

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

Sec. 10.

Laws 2013, chapter 86, article 1, section 12, subdivision 3, as amended by
Laws 2013, chapter 140, section 2, is amended to read:


Subd. 3.

Criminal Apprehension

47,588,000
47,197,000
Appropriations by Fund
General
42,315,000
42,924,000
Special Revenue
3,000,000
2,000,000
State Government
Special Revenue
7,000
7,000
Trunk Highway
2,266,000
2,266,000
(a) DWI Lab Analysis; Trunk Highway Fund

Notwithstanding Minnesota Statutes, section
161.20, subdivision 3, $1,941,000 each year
is from the trunk highway fund for laboratory
analysis related to driving-while-impaired
cases.

(b) Criminal History System

$50,000 the first year and $580,000 the
second year from the general fund and,
notwithstanding Minnesota Statutes, section
299A.705, subdivision 4, $3,000,000 the
first year and $2,000,000 the second year
from the vehicle services account in the
special revenue fund are to replace the state
criminal history system. This appropriation
is available until expended. Of this amount,
$2,980,000 the first year and $2,580,000
the second year are for a onetime transfer
to the Office of Enterprise Technology for
start-up costs. Service level agreements
must document all project-related transfers
under this paragraph. Ongoing operating
and support costs for this system shall
be identified and incorporated into future
service level agreements.

The commissioner is authorized to use funds
appropriated under this paragraph for the
purposes specified in paragraph (c).

The general fund base for this program is
$4,930,000 in fiscal year 2016 and $417,000
in fiscal year 2017.

(c) Criminal Reporting System

$1,360,000 the first year and $1,360,000 the
second year from the general fund are to
replace the state's crime reporting system
and include one full-time equivalent business
analyst
. This appropriation is available until
expended. Of these amounts, $1,360,000
the first year and $1,360,000 $1,290,000
the second year are for a onetime transfer
to the Office of Enterprise Technology for
start-up costs. Service level agreements
must document all project-related transfers
under this paragraph. Ongoing operating
and support costs for this system shall
be identified and incorporated into future
service level agreements.

The commissioner is authorized to use funds
appropriated under this paragraph for the
purposes specified in paragraph (b).

The base funding for this program is
$1,360,000 in fiscal year 2016 and $380,000
in fiscal year 2017.

(d) Forensic Laboratory

$125,000 the first year and $125,000 the
second year from the general fund and,
notwithstanding Minnesota Statutes, section
161.20, subdivision 3, $125,000 the first
year and $125,000 the second year from the
trunk highway fund are to replace forensic
laboratory equipment at the Bureau of
Criminal Apprehension.

$200,000 the first year and $200,000 the
second year from the general fund and,
notwithstanding Minnesota Statutes, section
161.20, subdivision 3, $200,000 the first
year and $200,000 the second year from the
trunk highway fund are to improve forensic
laboratory staffing at the Bureau of Criminal
Apprehension.

(e) Livescan Fingerprinting

$310,000 the first year and $389,000 the
second year from the general fund are to
maintain Livescan fingerprinting machines.

(f) Report

If the vehicle services special revenue account
accrues an unallocated balance in excess
of 50 percent of the previous fiscal year's
expenditures, the commissioner of public
safety shall submit a report to the chairs
and ranking minority members of the house
of representatives and senate committees
with jurisdiction over transportation and
public safety policy and finance. The report
must contain specific policy and legislative
recommendations for reducing the fund
balance and avoiding future excessive fund
balances. The report is due within three
months of the fund balance exceeding the
threshold established in this paragraph.

Sec. 11.

Laws 2013, chapter 86, article 1, section 13, is amended to read:


Sec. 13. PEACE OFFICER STANDARDS
AND TRAINING (POST) BOARD

$
3,870,000
$
3,870,000

(a) Excess Amounts Transferred

This appropriation is from the peace officer
training account in the special revenue fund.
Any new receipts credited to that account in
the first year in excess of $3,870,000 must be
transferred and credited to the general fund.
Any new receipts credited to that account in
the second year in excess of $3,870,000 must
be transferred and credited to the general
fund.

(b) Peace Officer Training
Reimbursements

$2,734,000 each year is for reimbursements
to local governments for peace officer
training costs.

(c) Training; Sexually Exploited and
Trafficked Youth

Of the appropriation in paragraph (b),
$100,000 the first year is for reimbursements
to local governments for peace officer
training costs on sexually exploited and
trafficked youth, including effectively
identifying sex trafficked victims and
traffickers, investigation techniques, and
assisting sexually exploited youth. These
funds are available until June 30, 2016.

Reimbursement shall be provided on a flat
fee basis of $100 per diem per officer.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12. TRANSFER; EMERGENCY MANAGEMENT.

On July 1, 2014, the commissioner of management and budget shall transfer
$3,000,000 from the general fund to the disaster assistance contingency account created in
article 7, section 4.

ARTICLE 6

PUBLIC SAFETY AND CORRECTIONS

Section 1.

Minnesota Statutes 2012, section 13.84, subdivision 5, is amended to read:


Subd. 5.

Disclosure.

Private or confidential court services data shall not be
disclosed except:

(a) pursuant to section 13.05;

(b) pursuant to a statute specifically authorizing disclosure of court services data;

(c) with the written permission of the source of confidential data;

(d) to the court services department, parole or probation authority or state or local
correctional agency or facility having statutorily granted supervision over the individual
subject of the data;

(e) pursuant to subdivision 6; or

(f) pursuant to a valid court order.; or

(g) pursuant to section 611A.06, subdivision 6.

EFFECTIVE DATE.

This section is effective January 1, 2015.

Sec. 2.

Minnesota Statutes 2012, section 13.84, subdivision 6, is amended to read:


Subd. 6.

Public benefit data.

(a) The responsible authority or its designee of a
parole or probation authority or correctional agency may release private or confidential
court services data related to:

(1) criminal acts to any law enforcement agency, if necessary for law enforcement
purposes; and

(2) criminal acts or delinquent acts to the victims of criminal or delinquent acts to the
extent that the data are necessary for the victim to assert the victim's legal right to restitution.

(b) A parole or probation authority, a correctional agency, or agencies that provide
correctional services under contract to a correctional agency may release to a law
enforcement agency the following data on defendants, parolees, or probationers: current
address, dates of entrance to and departure from agency programs, and dates and times of
any absences, both authorized and unauthorized, from a correctional program.

(c) The responsible authority or its designee of a juvenile correctional agency may
release private or confidential court services data to a victim of a delinquent act to the
extent the data are necessary to enable the victim to assert the victim's right to request
notice of release under section 611A.06. The data that may be released include only the
name, home address, and placement site of a juvenile who has been placed in a juvenile
correctional facility as a result of a delinquent act.

(d) Upon the victim's written or electronic request and, if the victim and offender have
been household or family members as defined in section 518B.01, subdivision 2, paragraph
(b), the commissioner of corrections or the commissioner's designee may disclose to the
victim of an offender convicted of a qualified domestic violence-related offense as defined
in section 609.02, subdivision 16, notification of the city and five-digit zip code of the
offender's residency upon or after release from a Department of Corrections facility, unless:

(1) the offender is not under correctional supervision at the time of the victim's
request;

(2) the commissioner or the commissioner's designee does not have the city or zip
code; or

(3) the commissioner or the commissioner's designee reasonably believes that
disclosure of the city or zip code of the offender's residency creates a risk to the victim,
offender, or public safety.

(e) Paragraph (d) applies only where the offender is serving a prison term for
a qualified domestic violence-related offense committed against the victim seeking
notification.

EFFECTIVE DATE.

This section is effective January 1, 2015.

Sec. 3.

Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to read:


Subd. 7.

Continuance.

(a) When it is in the best interests of the child to do so and
not inimical to public safety
and when the child has admitted the allegations contained in
the petition before the judge or referee, or when a hearing has been held as provided for in
section 260B.163 and the allegations contained in the petition have been duly proven but,
in either case, before a finding of delinquency has been entered, the court may continue
the case for a period not to exceed 90 180 days on any one order. Such a continuance may
be extended for one additional successive period not to exceed 90 days and only after the
court has reviewed the case and entered its order for an additional continuance without a
finding of delinquency.
The continuance may be extended for one additional successive
period not to exceed 180 days, but only with the consent of the prosecutor and only after
the court has reviewed the case and entered its order for the additional continuance
without a finding of delinquency.
During this a continuance the court may enter an order
in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or
enter an order to hold the child in detention for a period not to exceed 15 days on any one
order for the purpose of completing any consideration, or any investigation or examination
ordered in accordance with the provisions of section 260B.157.

(b) A prosecutor may appeal a continuance ordered in contravention of this
subdivision.
This subdivision does not extend the court's jurisdiction under section
260B.193 and
does not apply to an extended jurisdiction juvenile proceeding.

EFFECTIVE DATE.

This section is effective August 1, 2014, and applies to
offenses committed on or after that date.

Sec. 4.

Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:


Subd. 2.

Fire Service Advisory Committee.

(a) The Fire Service Advisory
Committee shall provide recommendations to the commissioner of public safety on
fire service-related issues and shall consist of representatives of each of the following
organizations: two appointed by the president of the Minnesota State Fire Chiefs
Association, two appointed by the president of the Minnesota State Fire Department
Association, two appointed by the president of the Minnesota Professional Fire Fighters,
two appointed by the president of the League of Minnesota Cities, one appointed by the
president of the Minnesota Association of Townships, one appointed by the president
of the Insurance Federation of Minnesota, one appointed jointly by the presidents of
the Minnesota Chapter of the International Association of Arson Investigators and the
Fire Marshals Association of Minnesota, and the commissioner of public safety or the
commissioner's designee. The commissioner of public safety must ensure that at least
three of the members of the advisory committee work and reside in counties outside of the
seven-county metropolitan area. The committee shall provide funding recommendations
to the commissioner of public safety from the fire safety fund for the following purposes:

(1) for the Minnesota Board of Firefighter Training and Education;

(2) for programs and staffing for the State Fire Marshal Division; and

(3) for fire-related regional response team programs and any other fire service
programs that have the potential for statewide impact.

(b) The committee under paragraph (a) does not expire.

Sec. 5.

Minnesota Statutes 2012, section 611A.06, is amended by adding a subdivision
to read:


Subd. 6.

Offender location.

(a) Upon the victim's written or electronic request
and if the victim and offender have been household or family members as defined in
section 518B.01, subdivision 2, paragraph (b), the commissioner of corrections or
the commissioner's designee shall disclose to the victim of an offender convicted of a
qualified domestic violence-related offense as defined in section 609.02, subdivision 16,
notification of the city and five-digit zip code of the offender's residency upon release from
a Department of Corrections facility, unless:

(1) the offender is not under correctional supervision at the time of the victim's
request;

(2) the commissioner or the commissioner's designee does not have the city or zip
code; or

(3) the commissioner or the commissioner's designee reasonably believes that
disclosure of the city or zip code of the offender's residency creates a risk to the victim,
offender, or public safety.

(b) All identifying information regarding the victim including, but not limited to, the
notification provided by the commissioner or the commissioner's designee is classified as
private data on individuals as defined in section 13.02, subdivision 12, and is accessible
only to the victim.

(c) This subdivision applies only where the offender is serving a prison term
for a qualified domestic violence-related offense committed against the victim seeking
notification.

EFFECTIVE DATE.

This section is effective January 15, 2015.

Sec. 6.

Minnesota Statutes 2012, section 645.241, is amended to read:


645.241 PUNISHMENT FOR PROHIBITED ACTS.

(a) Except as provided in paragraph (b), when the performance of any act is
prohibited by a statute, and no penalty for the violation of the same shall be imposed in
any statute, the doing of such act shall be a misdemeanor.

(b) When the performance of any act is prohibited by a statute enacted or amended
after September 1, 2014, and no penalty for the violation of the same shall be imposed in
any statute, the doing of such act shall be a petty misdemeanor.

Sec. 7.

Laws 2014, chapter 240, section 26, is amended to read:


Sec. 26. REPEALER.

Laws 2012, chapter 235, section 11, is repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 7

DISASTER ASSISTANCE FOR PUBLIC ENTITIES; FEDERAL AID GRANTED

Section 1.

Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision
to read:


Subd. 5d.

Local government.

"Local government" has the meaning given in Code
of Federal Regulations, title 44, section 206.2 (2012).

Sec. 2.

Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to
read:


Subd. 6b.

Nonfederal share.

"Nonfederal share" has the meaning given in section
12A.02, subdivision 7.

Sec. 3.

Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:


Subd. 4.

Subgrant agreements; state share.

(a) The state director, serving as the
governor's authorized representative, may enter into subgrant agreements with eligible
applicants to provide federal and state financial assistance made available as a result
of a disaster declaration.

(b) When state funds are used to provide the FEMA Public Assistance Program
cost-share requirement for a local government, the state director must award a local
government 100 percent of the nonfederal share of the local government's FEMA Public
Assistance Program costs.

Sec. 4.

Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision
to read:


Subd. 6.

Disaster assistance contingency account; appropriation.

(a) A disaster
assistance contingency account is created in the special revenue fund in the state treasury.
Money in the disaster assistance contingency account is appropriated to the commissioner
of public safety to provide:

(1) cost-share for federal assistance under section 12A.15, subdivision 1; and

(2) state public disaster assistance to eligible applicants under chapter 12B.

(b) For appropriations under paragraph (a), clause (1), the amount appropriated is
100 percent of any nonfederal share for state agencies and local governments. Money
appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the
nonfederal share for publicly owned capital improvement projects.

(c) For appropriations under paragraph (a), clause (2), the amount appropriated
is the amount required to pay eligible claims under chapter 12B, as certified by the
commissioner of public safety.

(d) By January 15 of each year, the commissioner of management and budget shall
submit a report to the chairs and ranking minority members of the house of representatives
Ways and Means Committee and the senate Finance Committee detailing state disaster
assistance appropriations and expenditures under this subdivision during the previous
calendar year.

(e) The governor's budget proposal submitted to the legislature under section 16A.11
must include recommended appropriations to the disaster assistance contingency account.
The governor's appropriation recommendations must be informed by the commissioner of
public safety's estimate of the amount of money that will be necessary to:

(1) provide 100 percent of the nonfederal share for state agencies and local
governments that will receive federal financial assistance from FEMA during the next
biennium; and

(2) fully pay all eligible claims under chapter 12B.

(f) Notwithstanding section 16A.28:

(1) funds appropriated or transferred to the disaster assistance contingency account
do not lapse but remain in the account until appropriated; and

(2) funds appropriated from the disaster assistance contingency account do not lapse
and are available until expended.

Sec. 5.

Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:


Subd. 2.

Appropriation.

"Appropriation" means an appropriation provided in law
specifically to implement this chapter, including but not limited to a statutory appropriation
to provide the required cost-share for federal disaster assistance under section 12.221
.

Sec. 6.

Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
to read:


Subd. 6.

Local government.

"Local government" has the meaning given in section
12.03, subdivision 5d.

Sec. 7.

Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
to read:


Subd. 7.

Nonfederal share.

"Nonfederal share" means that portion of total FEMA
Public Assistance Program costs that is no more than 25 percent and is not eligible for
FEMA reimbursement.

Sec. 8.

Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:


Subd. 3.

Nonduplication of federal assistance.

State assistance may not duplicate
or supplement eligible FEMA Public Assistance Program assistance. For eligible Public
Assistance Program costs, any state matching cost-share money made available for
that assistance must be disbursed by the Department of Public Safety to a state agency,
local political subdivision, Indian tribe government, or other applicant. State assistance
distributed by a state agency, other than the Department of Public Safety, to a political
subdivision
local government or other applicant for disaster costs that are eligible for
FEMA Public Assistance Program assistance constitutes an advance of funds. Such
advances must be repaid to the applicable state agency when the applicant has received
the FEMA Public Assistance Program assistance, and whatever state matching cost-share
money may be made available for that assistance, from the Department of Public Safety.

Sec. 9.

Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:


Subdivision 1.

State match cost-share for federal assistance.

State appropriations
may be used for payment of the state match for federal disaster assistance to pay 100
percent of the nonfederal share for
state agencies. If authorized in law, state appropriations
may be used to pay all or a portion of the local share of the match for federal funds for
political subdivisions
and local governments under section 12.221. An appropriation from
the bond proceeds fund may be used to fund federal match obligations as cost-share for
federal disaster assistance
for publicly owned capital improvement projects resulting from
the receipt of federal disaster assistance
.

Sec. 10.

Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision
to read:


Subd. 9.

Disaster assistance.

(a) The commissioner of management and budget
must transfer the unexpended and unencumbered balance of a general fund disaster
assistance appropriation that expires as provided under this section or as otherwise provided
by law to the disaster assistance contingency account in section 12.221, subdivision 6.

(b) Expired disaster assistance transferred to the disaster assistance contingency
account is appropriated as provided under section 12.221, subdivision 6, regardless of the
specific disaster event or purpose for which the expired disaster assistance was originally
appropriated.

(c) The commissioner must report each transfer to the chairs of the house of
representatives Ways and Means Committee and the senate Finance Committee.

(d) For the purposes of this subdivision, "disaster assistance appropriation" means
an appropriation from the general fund to provide cost-share required for federal disaster
assistance or to provide other state disaster assistance under chapter 12A or 12B.

Sec. 11. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 8

DISASTER ASSISTANCE FOR PUBLIC ENTITIES; ABSENT FEDERAL AID

Section 1.

[12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL
AID.

This chapter establishes a state public assistance program to provide cost-share
assistance to local governments that sustain significant damage on a per capita basis but
are not eligible for federal disaster assistance or corresponding state assistance under
chapter 12A.

Sec. 2.

[12B.15] DEFINITIONS.

Subdivision 1.

Application.

The definitions in this section apply to this chapter.

Subd. 2.

Applicant.

"Applicant" means a local government that applies for state
disaster assistance under this chapter.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of public safety.

Subd. 4.

Director.

"Director" means the director of the Division of Homeland
Security and Emergency Management in the Department of Public Safety.

Subd. 5.

Disaster.

"Disaster" means any catastrophe, including but not limited
to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic
eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire,
flood, or explosion.

Subd. 6.

FEMA.

"FEMA" means the Federal Emergency Management Agency.

Subd. 7.

Incident period.

"Incident period" means the time interval of a disaster as
delineated by specific start and end dates.

Subd. 8.

Local government.

"Local government" has the meaning given in section
12.03, subdivision 5d.

Sec. 3.

[12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.

Subdivision 1.

Payment required; eligibility criteria.

The director, serving as
the governor's authorized representative, may enter into grant agreements with eligible
applicants to provide state financial assistance made available as a result of a disaster
that satisfies all of the following criteria:

(1) the state or applicable local government declares a disaster or emergency during
the incident period;

(2) damages suffered and eligible costs incurred are the direct result of the disaster;

(3) federal disaster assistance is not available to the applicant because the governor
did not request a presidential declaration of major disaster, the president denied the
governor's request, or the applicant is not eligible for federal disaster assistance because
the state or county did not meet the per capita impact indicator under FEMA's Public
Assistance Program;

(4) the applicant incurred eligible damages that, on a per capita basis, equal or
exceed 50 percent of the countywide per capita impact indicator under FEMA's Public
Assistance Program;

(5) the applicant assumes responsibility for 25 percent of the applicant's total
eligible costs; and

(6) the applicant satisfies all requirements in this chapter.

Subd. 2.

Considerations; other resources available.

When evaluating applicant
eligibility under subdivision 1, the director must consider:

(1) the availability of other resources from federal, state, local, private, or other
sources; and

(2) the availability or existence of insurance.

Sec. 4.

[12B.30] ELIGIBLE COSTS.

Subdivision 1.

Eligible costs.

Costs eligible for payment under this chapter are
those costs that would be eligible for federal financial assistance under FEMA's Public
Assistance Program.

Subd. 2.

Ineligible costs.

Ineligible costs are all costs not included in subdivision
1, including but not limited to:

(1) ordinary operating expenses, including salaries and expenses of employees and
public officials that are not directly related to the disaster response;

(2) costs for which payment has been or will be received from any other funding
source;

(3) disaster-related costs that should, in the determination of the director, be covered
and compensated by insurance; and

(4) projects and claims totaling less than the minimum FEMA project threshold.

Sec. 5.

[12B.35] APPLICANT'S SHARE.

An applicant's share of eligible costs incurred must not be less than 25 percent. The
substantiated value of donated materials, equipment, services, and labor may be used as
all or part of the applicant's share of eligible costs, subject to the following:

(1) all items and sources of donation must be indicated on the application and any
supporting documentation submitted to the commissioner;

(2) the rate for calculating the value of donated, nonprofessional labor is the
prevailing federal minimum wage;

(3) the value of donated equipment may not exceed the highway equipment rates
approved by the commissioner of transportation; and

(4) the value of donated materials and professional services must conform to market
rates and be established by invoice.

Sec. 6.

[12B.40] APPLICATION PROCESS.

(a) The director must develop application materials and may update the materials as
needed. Application materials must include instructions and requirements for assistance
under this chapter.

(b) An applicant has 30 days from the end of the incident period or the president's
official denial of the governor's request for a declaration of a major disaster to provide the
director with written notice of intent to apply. The director may deny an application due to
a late notice of intent to apply.

(c) Within 60 days after the end of the incident period or the president's official denial
of the governor's request for a declaration of a major disaster, the applicant must submit a
complete application to the director. A complete application includes the following:

(1) the cause, location of damage, and incident period;

(2) documentation of a local, tribal, county, or state disaster or emergency
declaration in response to the disaster;

(3) a description of damages, an initial damage assessment, and the amount of
eligible costs incurred by the applicant;

(4) a statement or evidence that the applicant has the ability to pay for at least 25
percent of total eligible costs incurred from the disaster; and

(5) a statement or evidence that the local government has incurred damages equal to
or exceeding 50 percent of the federal countywide threshold in effect during the incident
period.

(d) The director must review the application and supporting documentation for
completeness and may return the application with a request for more detailed information.
The director may consult with local public officials to ensure the application reflects the
extent and magnitude of the damage and to reconcile any differences. The application is
not complete until the director receives all requested information.

(e) If the director returns an application with a request for more detailed information
or for correction of deficiencies, the applicant must submit all required information within
30 days of the applicant's receipt of the director's request. The applicant's failure to
provide the requested information in a timely manner without a reasonable explanation
may be cause for denial of the application.

(f) The director has no more than 60 days from the receipt of a complete application
to approve or deny the application, or the application is deemed approved. If the director
denies an application, the director must send a denial letter. If the director approves an
application or the application is automatically deemed approved after 60 days, the director
must notify the applicant of the steps necessary to obtain reimbursement of eligible
costs, including submission of invoices or other documentation substantiating the costs
submitted for reimbursement.

Sec. 7.

[12B.45] CLAIMS PROCESS.

Subdivision 1.

Claims; appeal.

(a) An applicant must submit to the director
completed claims for payment of actual and eligible costs on forms provided by the
director. All eligible costs claimed for payment must be documented and consistent with
the eligibility provisions of this chapter.

(b) If the director denies an applicant's claim for payment, the applicant has 30 days
from receipt of the director's determination to appeal in writing to the commissioner. The
appeal must include the applicant's rationale for reversing the director's determination. The
commissioner has 30 days from receipt of the appeal to uphold or modify the director's
determination and formally respond to the applicant. If, within 30 days of receiving
the commissioner's decision, the applicant notifies the commissioner that the applicant
intends to contest the commissioner's decision, the Office of Administrative Hearings shall
conduct a hearing under the contested case provisions of chapter 14.

Subd. 2.

Final inspection.

Upon completion of all work by an applicant, the
director may inspect all work claimed by the applicant. The applicant must provide the
director with access to records pertaining to all claimed work and must permit the director
to review all records relating to the work.

Subd. 3.

Closeout.

The director must close out an applicant's disaster assistance
application after all of the following occur:

(1) eligible work is complete;

(2) the applicant receives the final amount due or pays any amount owed under
section 12B.50; and

(3) any extant or scheduled audits are complete.

Subd. 4.

Audit.

(a) An applicant must account for all funds received under this
chapter in conformance with generally accepted accounting principles and practices. The
applicant must maintain detailed records of expenditures to show that grants received under
this chapter were used for the purpose for which the payment was made. The applicant
must maintain records for five years and make the records available for inspection and
audit by the director or the state auditor. The applicant must keep all financial records for
five years after the final payment, including but not limited to all invoices and canceled
checks or bank statements that support all eligible costs claimed by the applicant.

(b) The director or state auditor may audit all applicant records pertaining to an
application or payment under this chapter.

Subd. 5.

Reporting payments.

The director must post on the division Web site a
list of the recipients and amounts of the payments made under this chapter.

Sec. 8.

[12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT
REQUIRED.

If an applicant subsequently recovers eligible costs from another source after
receiving payment under this chapter, the applicant must pay the commissioner an amount
equal to the corresponding state funds received within 30 days. The commissioner must
deposit any repayment in the disaster response contingency account in section 12.221,
subdivision 6.

Sec. 9. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 9

TRANSPORTATION APPROPRIATIONS

Section 1.

Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:


Subd. 12.

Rochester Maintenance Facility

26,430,000
24,937,000

This appropriation is from the bond proceeds
account in the trunk highway fund.

To prepare a site for and design, construct,
furnish, and equip a new maintenance facility
in Rochester.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:


Subd. 4.

Trunk highway fund bond proceeds account.

To provide the money
appropriated in this act from the bond proceeds account in the trunk highway fund, the
commissioner of management and budget shall sell and issue bonds of the state in an
amount up to $32,945,000 $31,452,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts requested by the
commissioner of transportation. The proceeds of the bonds, except accrued interest and
any premium received from the sale of the bonds, must be credited to the bond proceeds
account in the trunk highway fund.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Laws 2012, chapter 287, article 2, section 1, is amended to read:


Section 1. ROCHESTER MAINTENANCE FACILITY.

$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
to design, construct, furnish, and equip the maintenance facility in Rochester and
corresponding remodeling of the existing district headquarters building. This appropriation
is from the bond proceeds account in the trunk highway fund.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Laws 2012, chapter 287, article 2, section 3, is amended to read:


Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.

To provide the money appropriated in this article from the bond proceeds account in
the trunk highway fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the
terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
requested by the commissioner of transportation. The proceeds of the bonds, except
accrued interest and any premium received from the sale of the bonds, must be credited
to the bond proceeds account in the trunk highway fund.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to
read:


Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
SALE AUTHORIZATIONS REDUCED.

(a) The remaining balance of the appropriation in Laws 2010, Second Special
Session chapter 1, article 1, section 7, for the economic development and housing
challenge program, estimated to be $450,000, is transferred to the general fund.

(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
12A.07, is reduced by $1,358,000.

(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
Statutes, section 12A.06, is reduced by $30,000.

(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
1, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
Statutes, section 12A.06, is reduced by $392,000.

(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
Statutes, section 12A.06, is reduced by $2,000.

(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
section 12A.06, is reduced by $5,000.

(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
section 12A.06, is reduced by $271,000.

(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
is reduced by $103,000.

(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
highways and trunk highway bridges is canceled. The bond sale authorization in Laws
2007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
by $1,428,000 $534,000.

(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
grants to local governments for capital costs related to rehabilitation and replacement of
local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.

(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
subdivision 2, is reduced by $2,133,000.

(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:


Subd. 2.

Multimodal Systems

(a) Aeronautics

(1) Airport Development and Assistance
13,648,000
14,648,000
13,648,000
16,648,000

This appropriation is from the state
airports fund and must be spent according
to Minnesota Statutes, section 360.305,
subdivision 4
.

The base appropriation for fiscal years 2016
and 2017 is $14,298,000 for each year.

Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available for five years after appropriation.
If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

For the current biennium, the commissioner
of transportation may establish different
local contribution rates for airport projects
than those established in Minnesota Statutes,
section 360.305, subdivision 4.

(2) Aviation Support and Services
6,386,000
6,386,000
Appropriations by Fund
Airports
5,286,000
5,286,000
Trunk Highway
1,100,000
1,100,000

$65,000 in each year is from the state airports
fund for the Civil Air Patrol.

(b) Transit
17,226,000
17,245,000
23,777,000
Appropriations by Fund
General
16,451,000
16,470,000
23,002,000
Trunk Highway
775,000
775,000

$100,000 in each year is from the general
fund for the administrative expenses of the
Minnesota Council on Transportation Access
under Minnesota Statutes, section 174.285.

$78,000 in each year is from the general
fund for grants to greater Minnesota transit
providers as reimbursement for the costs of
providing fixed route public transit rides free
of charge under Minnesota Statutes, section
174.24, subdivision 7, for veterans certified
as disabled.

$32,000 in the second year is from the
general fund for allocation to public transit
systems under Minnesota Statutes, section
174.24, in amounts that reflect the respective
foregone fare revenues from transit service
under article 11, section 39.

The base appropriation from the general fund
for fiscal years 2016 and 2017 is $17,245,000
in each year.

(c) Passenger Rail
500,000
500,000

This appropriation is from the general
fund for passenger rail system planning,
alternatives analysis, environmental analysis,
design, and preliminary engineering under
Minnesota Statutes, sections 174.632 to
174.636.

(d) Freight
5,653,000
5,153,000
7,153,000
Appropriations by Fund
General
756,000
256,000
2,256,000
Trunk Highway
4,897,000
4,897,000

$500,000 in the first year is from the general
fund to pay for the department's share of costs
associated with the cleanup of contaminated
state rail bank property. This appropriation is
available until expended.

$2,000,000 in the second year is from
the general fund for development and
implementation of safety improvements
at highway-rail grade crossings along rail
corridors in which oil or other hazardous
materials are transported. The commissioner
shall identify highway-rail grade crossing
locations and improvements in consultation
with railroads and relevant road authorities.
This is a onetime appropriation and is
available until expended.

(e) Safe Routes to School
250,000
250,000
500,000

This appropriation is from the general fund
for non-infrastructure activities in the safe
routes to school program under Minnesota
Statutes, section 174.40, subdivision 7a.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:


Subd. 3.

State Roads

(a) Operations and Maintenance
262,395,000
297,395,000
262,395,000
280,395,000

$5,000,000 in each year is for accelerated
replacement of snow plowing equipment.

$10,000,000 in the first year is for expenses
related to pavement repairs necessitated by
the effects of the 2013-2014 winter season.

The base appropriation for operations and
maintenance for fiscal years 2016 and 2017
is $267,395,000 in each year.

(b) Program Planning and Delivery
206,795,000
206,720,000
209,840,000
Appropriations by Fund
2014
2015
H.U.T.D.
75,000
0
Trunk Highway
206,720,000
206,720,000
209,840,000

The base appropriation for program planning
and delivery for fiscal years 2016 and 2017
is $206,720,000 in each year.

$250,000 in each year is for the department's
administrative costs for creation and
operation of the Joint Program Office for
Economic Development and Alternative
Finance, including costs of hiring a
consultant and preparing required reports.

$130,000 in each year is available for
administrative costs of the targeted group
business program.

$266,000 in each year is available for grants
to metropolitan planning organizations
outside the seven-county metropolitan area.

$75,000 in each year is available for a
transportation research contingent account
to finance research projects that are
reimbursable from the federal government or
from other sources. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.

$900,000 in each year is available for
grants for transportation studies outside
the metropolitan area to identify critical
concerns, problems, and issues. These
grants are available: (1) to regional
development commissions; (2) in regions
where no regional development commission
is functioning, to joint powers boards
established under agreement of two or
more political subdivisions in the region to
exercise the planning functions of a regional
development commission; and (3) in regions
where no regional development commission
or joint powers board is functioning, to the
department's district office for that region.

$75,000 in the first year is from the highway
user tax distribution fund to the commissioner
for a grant to the Humphrey School of Public
Affairs at the University of Minnesota for
WorkPlace Telework program congestion
relief efforts consisting of maintenance of
Web site tools and content. This is a onetime
appropriation and is available in the second
year.

$120,000 in the second year is from the trunk
highway fund for the purpose of education
and outreach related to highway work
zone safety initiatives. This is a onetime
appropriation.

(c) State Road Construction Activity
(1) Economic Recovery Funds - Federal
Highway Aid
1,000,000
1,000,000

This appropriation is to complete projects
using funds made available to the
commissioner of transportation under
title XII of the American Recovery and
Reinvestment Act of 2009, Public Law
111-5, and implemented under Minnesota
Statutes, section 161.36, subdivision 7. The
base appropriation is $1,000,000 in fiscal
year 2016 and $0 in fiscal year 2017.

(2) State Road Construction
909,400,000
929,900,000
815,600,000
862,105,000

It is estimated that these appropriations will
be funded as follows:

Appropriations by Fund
Federal Highway
Aid
489,200,000
482,200,000
Highway User Taxes
420,200,000
440,700,000
333,400,000
379,905,000

The commissioner of transportation shall
notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance of
any significant events that should cause these
estimates to change.

This appropriation is for the actual
construction, reconstruction, and
improvement of trunk highways, including
design-build contracts and consultant usage
to support these activities. This includes the
cost of actual payment to landowners for
lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.

The base appropriation for state road
construction for fiscal years 2016 and 2017
is $645,000,000 $645,505,000 in each year.

$10,000,000 in each year is for the
transportation economic development
program under Minnesota Statutes, section
174.12. This appropriation is available until
expended.

The commissioner may expend up to one-half
of one percent of the federal appropriations
under this clause as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.

The commissioner may transfer up to
$15,000,000 each year to the transportation
revolving loan fund.

The commissioner may receive money
covering other shares of the cost of
partnership projects. These receipts are
appropriated to the commissioner for these
projects.

Notwithstanding subdivision 6 and the
restrictions on the use of trunk highway
funds in Minnesota Statutes, section 165.15,
the commissioner may transfer up to
$6,000,000 from the trunk highway fund
under this appropriation to the Stillwater lift
bridge endowment account under Minnesota
Statutes, section 165.15.

$6,500,000 in the first year and $25,000,000
in the second year are for the corridors
of commerce program under Minnesota
Statutes, section 161.088, and may include
right-of-way acquisition for projects included
in the program. The amount appropriated
in the first year is for projects located
outside of a metropolitan county, as defined
in Minnesota Statutes, section 473.121,
subdivision 4. The commissioner may
identify projects based on the most recent
selection process or may perform a new
selection. These are onetime appropriations
and are available until expended.

$14,000,000 in the first year and $21,000,000
in the second year are for the specific
improvements to "Old Highway 14"
described in the settlement agreement and
release executed January 7, 2014, between
the state and Steele and Waseca Counties.
These are onetime appropriations and are
available until expended.

$505,000 in the second year is for costs of
implementing highway work zone safety
initiatives. The base appropriation for this
purpose is $505,000 in each of fiscal years
2016 and 2017.

(d) Highway Debt Service
158,417,000
189,821,000

$148,917,000 in the first year and
$180,321,000 in the second year are for
transfer to the state bond fund. If an
appropriation is insufficient to make all
transfers required in the year for which it is
made, the commissioner of management and
budget shall notify the senate Committee
on Finance and the house of representatives
Committee on Ways and Means of the
amount of the deficiency and shall then
transfer that amount under the statutory open
appropriation. Any excess appropriation
cancels to the trunk highway fund.

(e) Electronic Communications
5,171,000
5,171,000
Appropriations by Fund
General
3,000
3,000
Trunk Highway
5,168,000
5,168,000

The general fund appropriation is to equip
and operate the Roosevelt signal tower for
Lake of the Woods weather broadcasting.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:


Subd. 6.

Transfers

(a) With the approval of the commissioner of
management and budget, the commissioner
of transportation may transfer unencumbered
balances among the appropriations from the
trunk highway fund and the state airports
fund made in this section. No transfer
may be made from the appropriations for
state road construction or for debt service.
Transfers under this paragraph may not be
made between funds. Transfers under this
paragraph must be reported immediately to
the chairs and ranking minority members of
the legislative committees with jurisdiction
over transportation finance.

(b) The commissioner shall transfer from
the flexible highway account in the county
state-aid highway fund: (1) $5,700,000 in the
first year and $21,000,000 in the second year
to the trunk highway fund; (2) $13,000,000
in the first year to the municipal turnback
account in the municipal state-aid street fund;
(3) $10,000,000 in the second year to the
municipal turnback account in the municipal
state-aid street fund; and (4) the remainder
in each year to the county turnback account
in the county state-aid highway fund. The
funds transferred are for highway turnback
purposes as provided under Minnesota
Statutes, section 161.081, subdivision 3.

Sec. 9.

Laws 2013, chapter 117, article 1, section 4, is amended to read:


Sec. 4. METROPOLITAN COUNCIL

$
107,889,000
$
76,970,000
79,804,000

This appropriation is from the general fund
for transit system operations under Minnesota
Statutes, sections 473.371 to 473.449.

The base appropriation for fiscal years 2016
and 2017 is $76,686,000 $76,626,000 in
each year.

$37,000,000 in the first year is for the
Southwest Corridor light rail transit line
from the Hiawatha light rail transit line in
downtown Minneapolis to Eden Prairie, to be
used for environmental studies, preliminary
engineering, acquisition of real property, or
interests in real property, and design. This
is a onetime appropriation and is available
until expended.

$500,000 in the second year is for transit
shelter improvements under Minnesota
Statutes, section 473.41. This is a onetime
appropriation.

$144,000 in the second year is for foregone
fare revenues from transit service under
article 11, section 39. The Metropolitan
Council shall allocate a portion of the
funds under this appropriation to transit
providers receiving financial assistance under
Minnesota Statutes, section 473.388, based
on respective foregone fare revenues. This is
a onetime appropriation.

$250,000 in the second year is for allocation
to replacement service providers operating
under Minnesota Statutes, section 473.388.
This is a onetime appropriation.

$1,000,000 in the second year is for arterial
bus rapid transit development, which
may include, but is not limited to, design,
engineering, construction, capital costs,
technology, equipment, and rolling stock.
This is a onetime appropriation and is
available until expended.

$1,000,000 in the second year is for design
and construction of a bus rapid transit station
on interstate 35W and Lake Street. This is a
onetime appropriation and is available until
expended.

Sec. 10.

Laws 2013, chapter 117, article 1, section 5, subdivision 2, is amended to read:


Subd. 2.

Administration and Related Services

(a) Office of Communications
504,000
504,000
Appropriations by Fund
General
111,000
111,000
Trunk Highway
393,000
393,000
(b) Public Safety Support
8,439,000
8,439,000
8,499,000
Appropriations by Fund
General
3,467,000
3,467,000
3,527,000
H.U.T.D.
1,366,000
1,366,000
Trunk Highway
3,606,000
3,606,000

$380,000 in each year is from the general
fund for payment of public safety officer
survivor benefits under Minnesota Statutes,
section 299A.44. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.

$1,367,000 in each year is from the general
fund to be deposited in the public safety
officer's benefit account. This money
is available for reimbursements under
Minnesota Statutes, section 299A.465.

$600,000 in each year is from the general
fund and $100,000 in each year is from the
trunk highway fund for soft body armor
reimbursements under Minnesota Statutes,
section 299A.38.

$792,000 in each year is from the general
fund for transfer by the commissioner of
management and budget to the trunk highway
fund on December 31, 2013, and December
31, 2014, respectively, in order to reimburse
the trunk highway fund for expenses not
related to the fund. These represent amounts
appropriated out of the trunk highway
fund for general fund purposes in the
administration and related services program.

$610,000 in each year is from the highway
user tax distribution fund for transfer by the
commissioner of management and budget
to the trunk highway fund on December 31,
2013, and December 31, 2014, respectively,
in order to reimburse the trunk highway
fund for expenses not related to the fund.
These represent amounts appropriated out
of the trunk highway fund for highway
user tax distribution fund purposes in the
administration and related services program.

$716,000 in each year is from the highway
user tax distribution fund for transfer by the
commissioner of management and budget to
the general fund on December 31, 2013, and
December 31, 2014, respectively, in order to
reimburse the general fund for expenses not
related to the fund. These represent amounts
appropriated out of the general fund for
operation of the criminal justice data network
related to driver and motor vehicle licensing.

Before January 15, 2015, the commissioner
of public safety shall review the amounts and
purposes of the transfers under this paragraph
and shall recommend necessary changes to
the legislative committees with jurisdiction
over transportation finance.

$60,000 in the second year is from the
general fund for light rail safety oversight
under Minnesota Statutes, section 299A.017.
The base appropriation from the general fund
for this purpose in fiscal years 2016 and 2017
is $60,000 each year.

(c) Technology and Support Service
3,685,000
3,685,000
Appropriations by Fund
General
1,322,000
1,322,000
H.U.T.D.
19,000
19,000
Trunk Highway
2,344,000
2,344,000

Sec. 11.

Laws 2013, chapter 117, article 1, section 5, subdivision 3, is amended to read:


Subd. 3.

State Patrol

(a) Patrolling Highways
72,522,000
72,522,000
78,471,000
Appropriations by Fund
General
37,000
37,000
H.U.T.D.
92,000
92,000
Trunk Highway
72,393,000
72,393,000
78,342,000

$5,949,000 in the second year is from the
trunk highway fund to recruit, hire, train at
the State Patrol Academy, equip, and provide
salary for 48 troopers.

The base appropriation from the trunk
highway fund is $77,893,000 in each of fiscal
years 2016 and 2017.

(b) Commercial Vehicle Enforcement
7,796,000
7,796,000
(c) Capitol Security
4,355,000
4,355,000
6,355,000

This appropriation is from the general fund.

$1,250,000 in each year 2014 and $3,250,000
in 2015 and each subsequent year
is to
implement the recommendations of the
advisory committee on Capitol Area Security
under Minnesota Statutes, section 299E.04,
including the creation of an emergency
manager position under Minnesota Statutes,
section 299E.01, subdivision 2, and an
increase in the number of State Patrol
troopers and other security officers assigned
to the Capitol complex.

The commissioner may not: (1) spend
any money from the trunk highway fund
for capitol security; or (2) permanently
transfer any state trooper from the patrolling
highways activity to capitol security.

The commissioner may not transfer any
money appropriated to the commissioner
under this section: (1) to capitol security; or
(2) from capitol security.

(d) Vehicle Crimes Unit
693,000
693,000

This appropriation is from the highway user
tax distribution fund.

This appropriation is to investigate: (1)
registration tax and motor vehicle sales tax
liabilities from individuals and businesses
that currently do not pay all taxes owed;
and (2) illegal or improper activity related
to sale, transfer, titling, and registration of
motor vehicles.

Sec. 12.

Laws 2013, chapter 117, article 1, section 5, subdivision 4, is amended to read:


Subd. 4.

Driver and Vehicle Services

(a) Vehicle Services
27,909,000
28,430,000
28,453,000
Appropriations by Fund
Special Revenue
19,673,000
19,771,000
20,217,000
H.U.T.D.
8,236,000
8,236,000

The special revenue fund appropriation is
from the vehicle services operating account.

$650,000 in each year is from the special
revenue fund for seven additional positions
to enhance customer service related to
vehicle title issuance.

$521,000 in the second year is from
the special revenue fund for the vehicle
services portion of a new telephone
system and is for transfer to the Office of
Enterprise Technology for construction and
development of the system. This is a onetime
appropriation and is available until expended.

$23,000 in the second year is from the special
revenue fund for expenses related to the task
force on motor vehicle insurance coverage
verification. This is a onetime appropriation.

The base appropriation from the special
revenue fund is $27,909,000 $19,673,000
for fiscal year 2016 and $27,909,000
$19,673,000 for fiscal year 2017.

(b) Driver Services
28,749,000
29,162,000
30,001,000
Appropriations by Fund
Special Revenue
28,748,000
29,161,000
30,000,000
Trunk Highway
1,000
1,000

The special revenue fund appropriation is
from the driver services operating account.

$71,000 in the second year is from the special
revenue fund for one additional position
related to facial recognition.

$279,000 in the second year is from
the special revenue fund for the driver
services portion of a new telephone
system and is for transfer to the Office of
Enterprise Technology for construction and
development of the system. This is a onetime
appropriation and is available until expended.

$37,000 in the first year and $33,000 in the
second year are from the special revenue
fund for one half-time position to assist with
the Novice Driver Improvement Task Force
under Minnesota Statutes, section 171.0701,
subdivision 1a
. The base appropriation for
this position is $6,000 in fiscal year 2016 and
$0 in fiscal year 2017.

$67,000 in the second year is from the
special revenue fund for one new position to
administer changes to the ignition interlock
program. The base appropriation for this
position in fiscal years 2016 and 2017 is
$62,000 in each year.

$23,000 in the second year is from the special
revenue fund for expenses related to the task
force on motor vehicle insurance coverage
verification. This is a onetime appropriation.

$816,000 in the second year is from
the special revenue fund for 12 new
positions to implement improved driving
skill examination scheduling. The base
appropriation for these positions is $759,000
in fiscal year 2016 and $774,000 in fiscal
year 2017.

The base appropriation from the special
revenue fund is $28,851,000 $29,609,000
for fiscal year 2016 and $28,845,000
$29,618,000 for fiscal year 2017.

Sec. 13. TRANSFER; RAILROAD AND PIPELINE SAFETY.

On or before July 31, 2014, the commissioner of management and budget shall
transfer $1,574,000 from the general fund to the railroad and pipeline safety account in the
special revenue fund under Minnesota Statutes, section 299A.55. This is a onetime transfer.

ARTICLE 10

RAILROAD AND PIPELINE SAFETY

Section 1.

Minnesota Statutes 2012, section 115E.01, is amended by adding a
subdivision to read:


Subd. 6a.

Incident commander.

"Incident commander" means the official at the
site of a discharge who has the responsibility for operations at the site, as established
following National Incident Management System guidelines.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
to read:


Subd. 7a.

Listed sensitive area.

"Listed sensitive area" means an area or location
listed as an area of special economic or environmental importance in an Area Contingency
Plan or a Sub-Area Contingency Plan prepared under the federal Clean Water Act, United
States Code, title 33, section 1321(j)(4).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
to read:


Subd. 11d.

Unit train.

"Unit train" means a train with more than 25 tanker railcars
carrying oil or hazardous substance cargo.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

[115E.042] PREPAREDNESS AND RESPONSE FOR CERTAIN
RAILROADS.

Subdivision 1.

Application.

In addition to the requirements of section 115E.04,
a person who owns or operates railroad car rolling stock transporting a unit train must
comply with this section.

Subd. 2.

Training.

(a) Each railroad must offer training to each fire department
having jurisdiction along the route of unit trains. Initial training under this subdivision
must be offered to each fire department by June 30, 2016, and refresher training must be
offered to each fire department at least once every three years thereafter.

(b) The training must address the general hazards of oil and hazardous substances,
techniques to assess hazards to the environment and to the safety of responders and the
public, factors an incident commander must consider in determining whether to attempt to
suppress a fire or to evacuate the public and emergency responders from an area, and other
strategies for initial response by local emergency responders. The training must include
suggested protocol or practices for local responders to safely accomplish these tasks.

Subd. 3.

Coordination.

Beginning June 30, 2015, each railroad must communicate
at least annually with each county or city emergency manager, safety representatives of
railroad employees governed by the Railway Labor Act, and a senior fire department
officer of each fire department having jurisdiction along the route of a unit train, to ensure
coordination of emergency response activities between the railroad and local responders.

Subd. 4.

Response capabilities; time limits.

(a) Following confirmation of a
discharge, a railroad must deliver and deploy sufficient equipment and trained personnel to
contain and recover discharged oil or hazardous substances and to protect the environment
and public safety.

(b) Within one hour of confirmation of a discharge, a railroad must provide a
qualified company employee to advise the incident commander. The employee may be
made available by telephone, and must be authorized to deploy all necessary response
resources of the railroad.

(c) Within three hours of confirmation of a discharge, a railroad must be capable of
delivering monitoring equipment and a trained operator to assist in protection of responder
and public safety. A plan to ensure delivery of monitoring equipment and an operator to a
discharge site must be provided each year to the commissioner of public safety.

(d) Within three hours of confirmation of a discharge, a railroad must provide qualified
personnel at a discharge site to assess the discharge and to advise the incident commander.

(e) A railroad must be capable of deploying containment boom from land across
sewer outfalls, creeks, ditches, and other places where oil or hazardous substances
may drain, in order to contain leaked material before it reaches those resources. The
arrangement to provide containment boom and staff may be made by:

(1) training and caching equipment with local jurisdictions;

(2) training and caching equipment with a fire mutual-aid group;

(3) means of an industry cooperative or mutual-aid group;

(4) deployment of a contractor;

(5) deployment of a response organization under state contract; or

(6) other dependable means acceptable to the Pollution Control Agency.

(f) Each arrangement under paragraph (e) must be confirmed each year. Each
arrangement must be tested by drill at least once every five years.

(g) Within eight hours of confirmation of a discharge, a railroad must be capable of
delivering and deploying containment boom, boats, oil recovery equipment, trained staff,
and all other materials needed to provide:

(1) on-site containment and recovery of a volume of oil equal to ten percent of the
calculated worst case discharge at any location along the route; and

(2) protection of listed sensitive areas and potable water intakes within one mile of
a discharge site and within eight hours of water travel time downstream in any river
or stream that the right-of-way intersects.

(h) Within 60 hours of confirmation of a discharge, a railroad must be capable of
delivering and deploying additional containment boom, boats, oil recovery equipment,
trained staff, and all other materials needed to provide containment and recovery of a
worst case discharge and to protect listed sensitive areas and potable water intakes at any
location along the route.

Subd. 5.

Railroad drills.

Each railroad must conduct at least one oil containment,
recovery, and sensitive area protection drill every three years, at a location and time
chosen by the Pollution Control Agency, and attended by safety representatives of railroad
employees governed by the Railway Labor Act.

Subd. 6.

Prevention and response plans.

(a) By June 30, 2015, a railroad shall
submit the prevention and response plan required under section 115E.04, as necessary to
comply with the requirements of this section, to the commissioner of the Pollution Control
Agency on a form designated by the commissioner.

(b) By June 30 of every third year following a plan submission under this subdivision,
a railroad must update and resubmit the prevention and response plan to the commissioner.

EFFECTIVE DATE.

Subdivisions 1 to 3 and 6 are effective the day following final
enactment. Subdivisions 4 and 5 are effective July 1, 2015.

Sec. 5.

Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
to read:


Subd. 3a.

Railroad preparedness; pollution control.

The Pollution Control
Agency shall carry out environmental protection activities related to railroad discharge
preparedness. Duties under this subdivision include, but are not limited to:

(1) assisting local emergency managers and fire officials in understanding the
hazards of oil and hazardous substances, as well as general strategies for containment and
environmental protection;

(2) assisting railroads to identify natural resources and sensitive areas, and to devise
strategies to contain and recover oil and hazardous substances from land and waters
along routes;

(3) facilitating cooperation between railroads for mutual aid arrangements that
provide training, staff, and equipment as required by this chapter;

(4) participating in drills and training sessions;

(5) reviewing each railroad's prevention and response plan for compliance with
the requirements of this chapter, and assessing each railroad's readiness to protect the
environment;

(6) conducting inspections and drills as necessary to determine the railroad's
compliance with the requirements of this chapter and ability to protect the environment;

(7) conducting follow-up corrective action directives, orders, and enforcement as
necessary based on a finding of inadequate environmental protection preparedness; and

(8) soliciting involvement and advice concerning preparedness activities and
requirements from safety representatives of railroad employees governed by the Railway
Labor Act.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
to read:


Subd. 3b.

Railroad and pipeline preparedness; public safety.

The commissioner
of public safety shall carry out public safety protection activities related to railroad and
pipeline spill and discharge preparedness. Duties under this subdivision include, but
are not limited to:

(1) assisting local emergency managers and fire officials to understand the hazards
of oil and hazardous substances, as well as general strategies for hazard identification,
initial isolation, and other actions necessary to ensure public safety;

(2) assisting railroads and pipeline companies to develop suggested protocols and
practices for local first responder use in protecting the public's safety;

(3) facilitating cooperation between railroads, pipeline companies, county and city
emergency managers, and other public safety organizations;

(4) participating in major exercises and training sessions;

(5) assisting local units of government to incorporate railroad and pipeline hazard
and response information into local emergency operations plans;

(6) monitoring the public safety-related training and planning requirements of
section 115E.03; and

(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:


Subdivision 1.

Position Positions established; duties.

(a) The commissioner of
transportation shall establish a position of three state rail safety inspector positions in
the Office of Freight and Commercial Vehicle Operations of the Minnesota Department
of Transportation. On or after July 1, 2015, the commissioner may establish a fourth
state rail safety inspector position following consultation with railroad companies.
The commissioner shall apply to and enter into agreements with the Federal Railroad
Administration (FRA) of the United States Department of Transportation to participate
in the federal State Rail Safety Partnership Participation Program for training and
certification of an inspector under authority of United States Code, title 49, sections 20103,
20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.

The (b) A state rail safety inspector shall inspect mainline track, secondary track, and
yard and industry track; inspect railroad right-of-way, including adjacent or intersecting
drainage, culverts, bridges, overhead structures, and traffic and other public crossings;
inspect yards and physical plants; review and enforce safety requirements; review
maintenance and repair records; and review railroad security measures.

(c) A state rail safety inspector may perform, but is not limited to, the duties
described in the federal State Rail Safety Participation Program. An inspector may train,
be certified, and participate in any of the federal State Rail Safety Participation Program
disciplines, including: track, signal and train control, motive power and equipment,
operating practices compliance, hazardous materials, and highway-rail grade crossings.

(d) To the extent delegated by the Federal Railroad Administration and authorized
by the commissioner, the an inspector may issue citations for violations of this chapter, or
to ensure railroad employee and public safety and welfare.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:


Subd. 2.

Railroad company assessment; account; appropriation.

(a) As provided
in this subdivision,
the commissioner shall annually assess railroad companies that are
(1) defined as common carriers under section 218.011,; (2) classified by federal law or
regulation as Class I Railroads, or Class I Rail Carriers, Class II Railroads, or Class II
Carriers;
and (3) operating in this state,.

(b) The assessment must be by a division of state rail safety inspector program costs
in
equal proportion between carriers based on route miles operated in Minnesota, assessed
in equal amounts for 365 days of the calendar year. The commissioner shall assess all
start-up or re-establishment costs, and all related costs of initiating the state rail safety
inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties
must begin and be assessed on January 1, 2009.

(c) The assessments must be deposited in a special account in the special revenue
fund, to be known as the state rail safety inspection account. Money in the account is
appropriated to the commissioner and may be expended to cover the costs incurred for the
establishment and ongoing responsibilities of the state rail safety inspector program.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9.

[299A.55] RAILROAD AND PIPELINE SAFETY; OIL AND OTHER
HAZARDOUS MATERIALS.

Subdivision 1.

Definitions.

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

(b) "Applicable rail carrier" means a railroad company that is subject to an
assessment under section 219.015, subdivision 2.

(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.

(d) "Oil" has the meaning given in section 115E.01, subdivision 8.

(e) "Pipeline company" means any individual, partnership, association, or public
or private corporation who owns and operates pipeline facilities and is required to show
specific preparedness under section 115E.03, subdivision 2.

Subd. 2.

Railroad and pipeline safety account.

(a) A railroad and pipeline safety
account is created in the special revenue fund. The account consists of funds collected
under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the
account.

(b) $104,000 is annually appropriated from the railroad and pipeline safety account
to the commissioner of the Pollution Control Agency for environmental protection
activities related to railroad discharge preparedness under chapter 115E.

(c) Following the appropriation in paragraph (b), the remaining money in the
account is annually appropriated to the commissioner of public safety for the purposes
specified in subdivision 3.

Subd. 3.

Allocation of funds.

(a) Subject to funding appropriated for this
subdivision, the commissioner shall provide funds for training and response preparedness
related to (1) derailments, discharge incidents, or spills involving trains carrying oil or
other hazardous substances, and (2) pipeline discharge incidents or spills involving oil
or other hazardous substances.

(b) The commissioner shall allocate available funds as follows:

(1) $100,000 annually for emergency response teams; and

(2) the remaining amount to the Board of Firefighter Training and Education under
section 299N.02 and the Division of Homeland Security and Emergency Management.

(c) Prior to making allocations under paragraph (b), the commissioner shall consult
with the Fire Service Advisory Committee under section 299F.012, subdivision 2.

(d) The commissioner and the entities identified in paragraph (b), clause (2), shall
prioritize uses of funds based on:

(1) firefighter training needs;

(2) community risk from discharge incidents or spills;

(3) geographic balance; and

(4) recommendations of the Fire Service Advisory Committee.

(e) The following are permissible uses of funds provided under this subdivision:

(1) training costs, which may include, but are not limited to, training curriculum,
trainers, trainee overtime salary, other personnel overtime salary, and tuition;

(2) costs of gear and equipment related to hazardous materials readiness, response,
and management, which may include, but are not limited to, original purchase,
maintenance, and replacement;

(3) supplies related to the uses under clauses (1) and (2); and

(4) emergency preparedness planning and coordination.

(f) Notwithstanding paragraph (b), clause (2), from funds in the railroad and pipeline
safety account provided for the purposes under this subdivision, the commissioner may
retain a balance in the account for budgeting in subsequent fiscal years.

Subd. 4.

Assessments.

(a) The commissioner of public safety shall annually assess
$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph
(b). The commissioner shall deposit funds collected under this subdivision in the railroad
and pipeline safety account under subdivision 2.

(b) The assessment for each railroad is 50 percent of the total annual assessment
amount, divided in equal proportion between applicable rail carriers based on route miles
operated in Minnesota. The assessment for each pipeline company is 50 percent of the
total annual assessment amount, divided in equal proportion between companies based
on the yearly aggregate gallons of oil and hazardous substance transported by pipeline
in Minnesota.

(c) The assessments under this subdivision expire July 1, 2017.

Sec. 10. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND
RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS
TRANSPORTATION.

(a) The commissioner of transportation shall conduct a study on highway-rail grade
crossing improvement for oil and other hazardous materials transported by rail, and on
rail safety. At a minimum, the study must:

(1) provide information that assists in risk management associated with
transportation of oil and other hazardous materials by rail;

(2) develop criteria to prioritize needs and improvements at highway-rail grade
crossings;

(3) consider alternatives for safety improvements, including but not limited to active
warning devices such as gates and signals, closings, and grade separation;

(4) provide findings and recommendations that serve to direct accelerated
investments in highway-rail grade crossing safety improvements; and

(5) analyze state inspection activities and staffing for track and hazardous materials
under Minnesota Statutes, section 219.015.

(b) The commissioner shall submit an interim update on the study by August 31,
2014, and a final report by October 31, 2014, to the chairs and ranking minority members
of the legislative committees with jurisdiction over transportation policy and finance.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11. REPORTS ON INCIDENT PREPAREDNESS FOR OIL
TRANSPORTATION.

Subdivision 1.

Report on response preparedness.

By January 15, 2015, the
commissioner of public safety shall submit a report on emergency response preparedness
in the public and private sectors for incidents involving transportation of oil to the chairs
and ranking minority members of the legislative committees with jurisdiction over
transportation and public safety policy and finance. At a minimum, the report must:

(1) summarize the preparedness and emergency response framework in the state;

(2) provide an assessment of costs and needs of fire departments and other
emergency first responders for training and equipment to respond to discharge or spill
incidents involving transportation of oil;

(3) develop a comprehensive public and private response capacity inventory that,
to the extent feasible, includes statewide identification of major emergency response
equipment, equipment staging locations, mutual aid agreements, and capacities across
industries involved in transportation and storage of oil;

(4) provide information and analysis that forms the basis for allocation of funds
under Minnesota Statutes, section 299A.55;

(5) develop benchmarks or assessment criteria for the evaluation under subdivision 2;

(6) assist in long-range oil transportation incident preparedness planning; and

(7) make recommendations for any legislative changes.

Subd. 2.

Evaluation of response preparedness and funding.

By January 15,
2017, the commissioner of public safety shall submit an evaluation of safety preparedness
and funding related to incidents involving transportation of oil to the chairs and ranking
minority members of the legislative committees with jurisdiction over transportation and
public safety policy and finance. At a minimum, the evaluation must:

(1) provide an update to the report under subdivision 1 that identifies notable
changes and provides updated information as appropriate;

(2) evaluate the effectiveness of training and response preparedness activities under
Minnesota Statutes, section 299A.55, using the criteria established under subdivision
1, clause (5);

(3) identify current sources of funds, funding levels, and any unfunded needs for
preparedness activities;

(4) analyze equity in the distribution of funding sources for preparedness activities,
which must include but is not limited to (i) examination of the public-private partnership
financing model, and (ii) review of balance across industries involved in storage and
distribution of oil; and

(5) make recommendations for any programmatic or legislative changes.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 11

TRANSPORTATION FINANCE PROVISIONS

Section 1.

Minnesota Statutes 2012, section 161.14, is amended by adding a
subdivision to read:


Subd. 78.

Trooper Glen Skalman Memorial Highway.

That segment of signed
U.S. Highway 61 from the intersection with signed U.S. Highway 8 in Forest Lake to
the intersection with 260th Street in Wyoming is designated as "Trooper Glen Skalman
Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable
design to mark this highway and erect appropriate signs in the vicinity of the location
where Trooper Skalman died.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:


Subd. 2.

Use of funds.

(a) Income derived from the investment of principal in the
account may be used by the commissioner of transportation for operations and routine
maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive
repairs
. No money from this account may be used for any purposes except those described
in this section, and no money from this account may be transferred to any other account
in the state treasury without specific legislative authorization. Any money transferred
from the trunk highway fund may only be used for trunk highway purposes. For the
purposes of this section:

(1) "Income" is the amount of interest on debt securities and dividends on equity
securities. Any gains or losses from the sale of securities must be added to the principal
of the account.

(2) "Routine maintenance" means activities that are predictable and repetitive, but
not activities that would constitute major repairs or rehabilitation.

(b) Investment management fees incurred by the State Board of Investment are
eligible expenses for reimbursement from the account.

(c) The commissioner of transportation has authority to approve or deny expenditures
of funds in the account.

Sec. 3.

[168.1299] MINNESOTA GOLF PLATES.

Subdivision 1.

Issuance.

Notwithstanding section 168.1293, the commissioner shall
issue special Minnesota golf plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, one-ton pickup truck,
motorcycle, or recreational vehicle;

(2) pays a fee of $10 and any other fees required by this chapter;

(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota
Section PGA Foundation account; and

(4) complies with this chapter and rules governing registration of motor vehicles
and licensing of drivers.

Subd. 2.

Design.

After consultation with the Minnesota Section PGA and the
Minnesota Golf Association, the commissioner shall design the special plate.

Subd. 3.

Plates transfer.

On payment of a fee of $5, plates issued under this section
may be transferred to another passenger automobile, one-ton pickup truck, motorcycle,
or other recreational vehicle registered to the individual to whom the special plates were
issued.

Subd. 4.

Fees.

Fees collected under subdivision 1, clause (2), and subdivision 3 are
credited to the vehicle services operating account in the special revenue fund.

Subd. 5.

Contributions.

Contributions collected under subdivision 1, clause (3),
are credited first to the commissioner of public safety for the cost of administering the
Minnesota Section PGA Foundation account, which is established in the special revenue
fund. After the commissioner's administration costs are paid each year, remaining
contributions are credited to the Minnesota Section PGA Foundation account. Money in
the account is appropriated to the commissioner of public safety for distribution to the
Minnesota Section PGA Foundation, to be used to enhance and promote the game of
golf throughout Minnesota.

EFFECTIVE DATE.

Subdivisions 1 to 4 are effective January 1, 2015, for special
Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.

Sec. 4.

Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision
to read:


Subd. 95.

Work zone.

"Work zone" means a segment of street or highway for which:

(1) a road authority or its agent is constructing, reconstructing, or maintaining the
physical structure of the roadway, which may include, but is not limited to, shoulders,
features adjacent to the roadway, and utilities and highway appurtenances, whether
underground or overhead; and

(2) any of the following applies:

(i) official traffic-control devices that indicate the segment of street or highway under
construction, reconstruction, or maintenance, are erected;

(ii) one or more lanes of traffic are closed;

(iii) a flagger under section 169.06, subdivision 4a, is present;

(iv) a construction zone speed limit under section 169.14, subdivision 4, is
established; or

(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.

EFFECTIVE DATE.

This section is effective August 1, 2014.

Sec. 5.

Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:


Subd. 4.

Obedience to traffic-control signal or flagger authorized persons;
presumptions.

(a) The driver of any vehicle shall obey the instructions of any official
traffic-control device applicable thereto placed in accordance with the provisions of this
chapter, unless otherwise directed by a police officer or by a flagger authorized under this
subdivision, subject to the exceptions granted the driver of an authorized emergency
vehicle in this chapter.

(b) No provision of this chapter for which official traffic-control devices are required
shall be enforced against an alleged violator if at the time and place of the alleged
violation an official device is not in proper position and sufficiently legible to be seen by
an ordinarily observant person. Whenever a particular section does not state that official
traffic-control devices are required, such section shall be effective even though no devices
are erected or in place.

(c) Whenever official traffic-control devices are placed in position approximately
conforming to the requirements of this chapter, such devices shall be presumed to have
been so placed by the official act or direction of lawful authority, unless the contrary
shall be established by competent evidence.

(d) Any official traffic-control device placed pursuant to the provisions of this
chapter and purporting to conform to the lawful requirements pertaining to such devices
shall be presumed to comply with the requirements of this chapter, unless the contrary
shall be established by competent evidence.

(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
been stopped by a flagger in a designated work zone may proceed after stopping only on
instruction by the flagger.

(f) An overdimensional load escort driver with a certificate issued under section
299D.085, while acting as a flagger escorting a legal overdimensional load, may stop
vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
proceed only on instruction by the flagger or a police officer.

(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to
proceed, if the person: (1) holds a motorcycle road guard certificate issued under section
171.60; (2) meets the safety and equipment standards for operating under the certificate;
(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory
or home rule charter city through which the motorcycle group is proceeding; and (5)
has obtained consent from the chief of police, or the chief's designee, of any city of the
first class through which the group is proceeding. A flagger operating as provided under
this paragraph may direct operators of motorcycles within a motorcycle group ride or
other vehicle traffic, notwithstanding any contrary indication of a traffic-control device,
including stop signs or traffic-control signals. A person operating a vehicle that has been
stopped by a flagger under this paragraph may proceed only on instruction by the flagger
or a police officer.

EFFECTIVE DATE.

This section is effective August 1, 2014.

Sec. 6.

Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision
to read:


Subd. 4a.

Obedience to work zone flagger; violation, penalty.

(a) A flagger in a
work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to
proceed. A person operating a motor vehicle that has been stopped by a flagger in a work
zone may proceed after stopping only on instruction by the flagger or a police officer.

(b) A person convicted of operating a motor vehicle in violation of a speed limit
in a work zone, or any other provision of this section while in a work zone, shall be
required to pay a fine of $300. This fine is in addition to the surcharge under section
357.021, subdivision 6.

(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the
vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty
misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may
not be fined under this paragraph if (1) another person is convicted for that violation, or (2)
the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a
lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.

(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle
operator for violating paragraph (a).

(e) A violation under paragraph (c) does not constitute grounds for revocation or
suspension of a driver's license.

EFFECTIVE DATE.

This section is effective August 1, 2014, and applies to
violations committed on or after that date.

Sec. 7.

Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:


Subd. 5d.

Speed zoning limit in work zone; surcharge when workers present.

(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a
road having an established speed limit of 50 miles per hour or greater is adjusted to 45
miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is
closed in either direction, and (2) workers are present. A speed in excess of the adjusted
speed limit is unlawful.

(b) Paragraph (a) does not apply to a segment of road in which:

(1) positive barriers are placed between workers and the traveled portion of the
highway;

(2) the work zone is in place for less than 24 hours;

(3) a different speed limit for the work zone is determined by the road authority
following an engineering and traffic investigation and based on accepted engineering
practice; or

(4) a different speed limit for the work zone is established by the road authority
under paragraph (c).

(c) The commissioner, on trunk highways and temporary trunk highways, and
local authorities, on streets and highways under their jurisdiction, may authorize the use
of reduced maximum speed limits in highway work zones. The commissioner or local
authority is not required to conduct
when workers are present, without an engineering and
traffic investigation before authorizing a reduced speed limit in a highway work zone
required. The work zone speed limit must not reduce the speed limit on the affected
street or highway by more than:

(b) The minimum highway work zone speed limit is 20 miles per hour. The work
zone speed limit must not reduce the established speed limit on the affected street or
highway by more than 15 miles per hour, except that the highway work zone speed limit
must not exceed 40 miles per hour. The commissioner or local authority shall post the limits
of the work zone. Highway work zone speed limits are effective on erection of appropriate
regulatory speed limit signs. The signs must be removed or covered when they are not
required. A speed greater than the posted highway work zone speed limit is unlawful.

(c) Notwithstanding paragraph (b), on divided highways the commissioner or local
authority may establish a highway work zone speed limit that does not exceed 55 miles
per hour.

(d) Notwithstanding paragraph (b), on two-lane highways having one lane for
each direction of travel with a posted speed limit of 60 miles per hour or greater, the
commissioner or local authority may establish a highway work zone speed limit that
does not exceed 40 miles per hour.

(e) For purposes of this subdivision, "highway work zone" means a segment of
highway or street where a road authority or its agent is constructing, reconstructing, or
maintaining the physical structure of the roadway, its shoulders, or features adjacent to
the roadway, including underground and overhead utilities and highway appurtenances,
when workers are present.

(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person
who violates a speed limit established under this subdivision, or who violates any other
provision of this section while in a highway work zone, is assessed an additional surcharge
equal to the amount of the fine imposed for the speed violation, but not less than $25.

(1) 20 miles per hour on a street or highway having an established speed limit of
55 miles per hour or greater; and

(2) 15 miles per hour on a street or highway having an established speed limit of
50 miles per hour or less.

(d) A work zone speed limit under paragraph (c) is effective on erection of
appropriate regulatory speed limit signs. The signs must be removed or covered when
they are not required. A speed in excess of the posted work zone speed limit is unlawful.

(e) For any speed limit under this subdivision, a road authority shall erect signs
identifying the speed limit and indicating the beginning and end of the speed limit zone.

EFFECTIVE DATE.

This section is effective August 1, 2014, and applies to
violations committed on or after that date.

Sec. 8.

Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision
to read:


Subd. 6a.

Work zone speed limit violations.

A person convicted of operating a
motor vehicle in violation of a speed limit in a work zone, or any other provision of
this section while in a work zone, shall be required to pay a fine of $300. This fine is in
addition to the surcharge under section 357.021, subdivision 6.

EFFECTIVE DATE.

This section is effective August 1, 2014, and applies to
violations committed on or after that date.

Sec. 9.

Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:


Subdivision 1.

Entrance and exit; crossover; use regulations; signs; rules.

(a) No
person shall drive a vehicle onto or from any controlled-access highway except at such
entrances and exits as are established by public authority.

(b) When special crossovers between the main roadways of a controlled-access
highway are provided for emergency vehicles or maintenance equipment and such
crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except
an emergency vehicle, maintenance equipment, or construction equipment including
contractor's and state-owned equipment when operating within a marked construction
zone, or a vehicle operated by a commercial vehicle inspector of the Department of Public
Safety,
to use such crossover. Vehicles owned and operated by elderly and needy persons
under contract with the commissioner of transportation pursuant to section 160.282 for
maintenance services on highway rest stop and tourist centers outside the seven-county
metropolitan area as defined in section 473.121, may also use these crossovers while those
persons are proceeding to or from work in the rest area or tourist center if authorized by the
commissioner, and the vehicle carries on its roof a distinctive flag designed and issued by
the commissioner. For the purposes of this clause "emergency vehicle" includes a tow truck
or towing vehicle if it is on the way to the location of an accident or a disabled vehicle.

(c) The commissioner of transportation may by order, and any public authority may
by ordinance, with respect to any controlled-access highway under their jurisdictions
prohibit or regulate the use of any such highway by pedestrians, bicycles, or other
nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is
found to be incompatible with the normal and safe flow of traffic.

(d) The commissioner of transportation or the public authority adopting any such
prohibitory rules shall erect and maintain official signs on the controlled-access highway
on which such rules are applicable and when so erected no person shall disobey the
restrictions stated on such signs.

Sec. 10.

Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision
to read:


Subd. 7.

Expiration date.

Upon request of the permit applicant, the expiration
date for a permit issued under this section must be the same as the expiration date of the
permitted vehicle's registration.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 11.

Minnesota Statutes 2012, section 169.8261, is amended by adding a
subdivision to read:


Subd. 3.

Expiration date.

Upon request of the permit applicant, the expiration
date for a permit issued under this section must be the same as the expiration date of the
permitted vehicle's registration.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 12.

Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:


Subd. 5.

Fees; proceeds deposited; appropriation.

The commissioner, with
respect to highways under the commissioner's jurisdiction, may charge a fee for each
permit issued. The fee for an annual permit that expires by law on the date of the
vehicle registration expiration must be based on the proportion of the year that remains
until the expiration date.
Unless otherwise specified, all fees for permits issued by the
commissioner of transportation must be deposited in the state treasury and credited to
the trunk highway fund. Except for those annual permits for which the permit fees are
specified elsewhere in this chapter, the fees are:

(a) $15 for each single trip permit.

(b) $36 for each job permit. A job permit may be issued for like loads carried on
a specific route for a period not to exceed two months. "Like loads" means loads of the
same product, weight, and dimension.

(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
months. Annual permits may be issued for:

(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
or well-being of the public;

(2) motor vehicles that travel on interstate highways and carry loads authorized
under subdivision 1a;

(3) motor vehicles operating with gross weights authorized under section 169.826,
subdivision 1a
;

(4) special pulpwood vehicles described in section 169.863;

(5) motor vehicles bearing snowplow blades not exceeding ten feet in width;

(6) noncommercial transportation of a boat by the owner or user of the boat;

(7) motor vehicles carrying bales of agricultural products authorized under section
169.862; and

(8) special milk-hauling vehicles authorized under section 169.867.

(d) $120 for an oversize annual permit to be issued for a period not to exceed 12
consecutive months. Annual permits may be issued for:

(1) mobile cranes;

(2) construction equipment, machinery, and supplies;

(3) manufactured homes and manufactured storage buildings;

(4) implements of husbandry;

(5) double-deck buses;

(6) commercial boat hauling and transporting waterfront structures, including, but
not limited to, portable boat docks and boat lifts;

(7) three-vehicle combinations consisting of two empty, newly manufactured trailers
for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
paragraph (c); and

(8) vehicles operating on that portion of marked Trunk Highway 36 described in
section 169.81, subdivision 3, paragraph (e).

(e) For vehicles that have axle weights exceeding the weight limitations of sections
169.823 to 169.829, an additional cost added to the fees listed above. However, this
paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph
(b), but only when the vehicle exceeds its gross weight allowance set forth in that
paragraph, and then the additional cost is for all weight, including the allowance weight,
in excess of the permitted maximum axle weight. The additional cost is equal to the
product of the distance traveled times the sum of the overweight axle group cost factors
shown in the following chart:

Overweight Axle Group Cost Factors
Weight (pounds)
Cost Per Mile For Each Group Of:
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
0-2,000
.12
.05
.04
2,001-4,000
.14
.06
.05
4,001-6,000
.18
.07
.06
6,001-8,000
.21
.09
.07
8,001-10,000
.26
.10
.08
10,001-12,000
.30
.12
.09
12,001-14,000
Not
permitted
.14
.11
14,001-16,000
Not
permitted
.17
.12
16,001-18,000
Not
permitted
.19
.15
18,001-20,000
Not
permitted
Not
permitted
.16
20,001-22,000
Not
permitted
Not
permitted
.20

The amounts added are rounded to the nearest cent for each axle or axle group. The
additional cost does not apply to paragraph (c), clauses (1) and (3).

For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
in addition to the normal permit fee. Miles must be calculated based on the distance
already traveled in the state plus the distance from the point of detection to a transportation
loading site or unloading site within the state or to the point of exit from the state.

(f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
or oversize and overweight, mobile cranes; construction equipment, machinery, and
supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
are as follows:

Gross Weight (pounds) of Vehicle
Annual Permit Fee
90,000
or less
$200
90,001
- 100,000
$300
100,001
- 110,000
$400
110,001
- 120,000
$500
120,001
- 130,000
$600
130,001
- 140,000
$700
140,001
- 145,000
$800
145,001
- 155,000
$900

If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
under paragraph (e).

(g) For vehicles which exceed the width limitations set forth in section 169.80 by
more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
in effect.

(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
subdivision 2
, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.

(i) $300 for a motor vehicle described in section 169.8261. The fee under this
paragraph must be deposited as follows:

(1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
costs related to administering the permit program and inspecting and posting bridges; and

(2) all remaining money in each fiscal year must be deposited in the bridge
inspection and signing account as provided under subdivision 5b.

(j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
under authority of section 169.824, subdivision 2, paragraph (a), clause (2).

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 13.

Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision
to read:


Subd. 3.

Expiration date.

Upon request of the permit applicant, the expiration
date for a permit issued under this section must be the same as the expiration date of the
permitted vehicle's registration.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 14.

Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:


Subdivision 1.

Six-axle vehicles.

(a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw
or unprocessed agricultural products and be operated with a gross vehicle weight of up to:

(1) 90,000 pounds; and

(2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1
.

(b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
combination of vehicles operated under this subdivision and transporting only sealed
intermodal containers may be operated on an interstate highway if allowed by the United
States Department of Transportation.

(c) The fee for a permit issued under this subdivision is $300, or a proportional
amount as provided in section 169.86, subdivision 5
.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 15.

Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:


Subd. 2.

Seven-axle vehicles.

(a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of seven or more axles to
haul raw or unprocessed agricultural products and be operated with a gross vehicle weight
of up to:

(1) 97,000 pounds; and

(2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1
.

(b) Drivers of vehicles operating under this subdivision must comply with driver
qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
of Federal Regulations, title 49, parts 40 and 382.

(c) The fee for a permit issued under this subdivision is $500, or a proportional
amount as provided in section 169.86, subdivision 5
.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 16.

Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision
to read:


Subd. 5.

Expiration date.

Upon request of the permit applicant, the expiration
date for a permit issued under this section must be the same as the expiration date of the
permitted vehicle's registration.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 17.

Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:


Subd. 3.

Permit fee; appropriation.

Vehicle permits issued under subdivision 1
must be annual permits. The fee is $850 for each vehicle, or a proportional amount as
provided in section 169.86, subdivision 5,
and must be deposited in the trunk highway
fund. An amount sufficient to administer the permit program is appropriated from the
trunk highway fund to the commissioner for the costs of administering the permit program.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 18.

Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision
to read:


Subd. 4.

Expiration date.

Upon request of the permit applicant, the expiration
date for a permit issued under this section must be the same as the expiration date of the
permitted vehicle's registration.

EFFECTIVE DATE.

This section is effective November 30, 2016, and applies
to permits issued on and after that date.

Sec. 19.

Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:


Subd. 3.

Motorized bicycle.

(a) A motorized bicycle may not be operated on any
public roadway by any person who does not possess a valid driver's license, unless the
person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
permit from the commissioner of public safety. The operator's permit may be issued to
any person who has attained the age of 15 years and who has passed the examination
prescribed by the commissioner. The instruction permit may be issued to any person who
has attained the age of 15 years and who has successfully completed an approved safety
course and passed the written portion of the examination prescribed by the commissioner.

(b) This course must consist of, but is not limited to, a basic understanding of:

(1) motorized bicycles and their limitations;

(2) motorized bicycle laws and rules;

(3) safe operating practices and basic operating techniques;

(4) helmets and protective clothing;

(5) motorized bicycle traffic strategies; and

(6) effects of alcohol and drugs on motorized bicycle operators.

(c) The commissioner may adopt rules prescribing the content of the safety course,
examination, and the information to be contained on the permits. A person operating a
motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
instruction permit.

(d) The fees for motorized bicycle operator's permits are as follows:

(1)
Examination and operator's permit, valid for one year
$
6.75
(2)
Duplicate
$
3.75
(3) (1)
Renewal Motorized bicycle operator's permit before age 21 and
valid until age 21
$
9.75
(4) (2)
Renewal permit age 21 or older and valid for four years
$
15.75
(5) (3)
Duplicate of any renewal permit
$
5.25
(6) (4)
Written examination and instruction permit, valid for 30 days
$
6.75

Sec. 20.

Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:


Subd. 2.

Fees.

(a) The fees for a license and Minnesota identification card are
as follows:

Classified Driver's License
D-$17.25
C-$21.25
B-$28.25
A-$36.25
Classified Under-21 D.L.
D-$17.25
C-$21.25
B-$28.25
A-$16.25
Enhanced Driver's License
D-$32.25
C-$36.25
B-$43.25
A-$51.25
Instruction Permit
$5.25
Enhanced Instruction
Permit
$20.25
Commercial Learner's
Permit
$2.50
Provisional License
$8.25
Enhanced Provisional
License
$23.25
Duplicate License or
duplicate identification
card
$6.75
Enhanced Duplicate
License or enhanced
duplicate identification
card
$21.75
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
Enhanced Minnesota
identification card
$26.25

In addition to each fee required in this paragraph, the commissioner shall collect a
surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
2016. Surcharges collected under this paragraph must be credited to the driver and vehicle
services technology account in the special revenue fund under section 299A.705.

(b) Notwithstanding paragraph (a), an individual who holds a provisional license and
has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
violations, and (3) convictions for moving violations that are not crash related, shall have a
$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
has the meaning given it in section 171.04, subdivision 1.

(c) In addition to the driver's license fee required under paragraph (a), the
commissioner shall collect an additional $4 processing fee from each new applicant
or individual renewing a license with a school bus endorsement to cover the costs for
processing an applicant's initial and biennial physical examination certificate. The
department shall not charge these applicants any other fee to receive or renew the
endorsement.

(d) In addition to the fee required under paragraph (a), a driver's license agent may
charge and retain a filing fee as provided under section 171.061, subdivision 4.

(e) In addition to the fee required under paragraph (a), the commissioner shall
charge a filing fee at the same amount as a driver's license agent under section 171.061,
subdivision 4. Revenue collected under this paragraph must be deposited in the driver
services operating account.

(f) An application for a Minnesota identification card, instruction permit, provisional
license, or driver's license, including an application for renewal, must contain a provision
that allows the applicant to add to the fee under paragraph (a), a $2 donation for the
purposes of public information and education on anatomical gifts under section 171.075.

Sec. 21.

Minnesota Statutes 2012, section 171.13, subdivision 1, is amended to read:


Subdivision 1.

Examination subjects and locations; provisions for color
blindness, disabled veterans.

(a) Except as otherwise provided in this section, the
commissioner shall examine each applicant for a driver's license by such agency as the
commissioner directs. This examination must include:

(1) a test of the applicant's eyesight;

(2) a test of the applicant's ability to read and understand highway signs regulating,
warning, and directing traffic;

(3) a test of the applicant's knowledge of (i) traffic laws; (ii) the effects of alcohol
and drugs on a driver's ability to operate a motor vehicle safely and legally, and of the
legal penalties and financial consequences resulting from violations of laws prohibiting
the operation of a motor vehicle while under the influence of alcohol or drugs; (iii)
railroad grade crossing safety; (iv) slow-moving vehicle safety; (v) laws relating to pupil
transportation safety, including the significance of school bus lights, signals, stop arm, and
passing a school bus; (vi) traffic laws related to bicycles; and (vii) the circumstances and
dangers of carbon monoxide poisoning;

(4) an actual demonstration of ability to exercise ordinary and reasonable control
in the operation of a motor vehicle; and

(5) other physical and mental examinations as the commissioner finds necessary to
determine the applicant's fitness to operate a motor vehicle safely upon the highways.

(b) Notwithstanding paragraph (a), no driver's license may be denied an applicant on
the exclusive grounds that the applicant's eyesight is deficient in color perception. War
veterans operating motor vehicles especially equipped for disabled persons, if otherwise
entitled to a license, must be granted such license.

(c) The commissioner shall make provision for giving the examinations under this
subdivision either in the county where the applicant resides or at a place adjacent thereto
reasonably convenient to the applicant.

(d) The commissioner shall ensure that an applicant is able to obtain an appointment
for an examination to demonstrate ability under paragraph (a), clause (4), within 14 days
of the applicant's request if, under the applicable statutes and rules of the commissioner,
the applicant is eligible to take the examination.

EFFECTIVE DATE.

This section is effective May 1, 2015.

Sec. 22.

[171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL
CONFORMITY.

Subdivision 1.

Conformity with federal law.

The commissioner of public safety
shall ensure the programs and policies related to commercial drivers' licensure and the
operation of commercial motor vehicles in Minnesota conform with the requirements of
Code of Federal Regulations, title 49, part 383.

Subd. 2.

Conflicts.

To the extent a requirement of sections 171.162 to 171.169, or
any other state or local law, conflicts with a provision of Code of Federal Regulations, title
49, part 383, the federal provision prevails.

Sec. 23.

Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision
to read:


Subd. 10.

Products and services; billing.

The commissioner of transportation may
bill operations units of the department for costs of centrally managed products or services
that benefit multiple operations units. These costs may include equipment acquisition and
rental, labor, materials, and other costs determined by the commissioner. Receipts must be
credited to the special products and services account, which is established in the trunk
highway fund, and are appropriated to the commissioner to pay the costs for which the
billings are made.

Sec. 24.

Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is
amended to read:


Subd. 2.

Transportation economic development accounts.

(a) A transportation
economic development account is established in the special revenue fund under the
budgetary jurisdiction of the legislative committees having jurisdiction over transportation
finance. Money in the account may be expended only as appropriated by law. The account
may not contain money transferred or otherwise provided from the trunk highway fund.

(b) A transportation economic development account is established in the trunk
highway fund. The account consists of funds donated, allotted, transferred, or otherwise
provided to the account. Money in the account may be used only for trunk highway
purposes. All funds in the account available prior to August 1, 2013, are available until
expended.

Sec. 25.

Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is
amended to read:


Subd. 2.

Funding requirement.

In each federal fiscal year, the commissioner
shall obtain a total amount in federal authorizations for reimbursement on transportation
alternatives projects that is equal to or greater than the annual average of federal
authorizations on transportation alternatives projects calculated over the preceding four
federal fiscal years 2010 to 2012.

EFFECTIVE DATE.

This section is effective the day following final enactment and
applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

Sec. 26.

Minnesota Statutes 2012, section 174.56, subdivision 1, is amended to read:


Subdivision 1.

Report required.

(a) The commissioner of transportation shall
submit a report by December 15 of each year on (1) the status of major highway projects
completed during the previous two years or under construction or planned during the year
of the report and for the ensuing 15 years, and (2) trunk highway fund expenditures,
and (3) beginning with the report due in 2016, efficiencies achieved during the previous
two fiscal years
.

(b) For purposes of this section, a "major highway project" is a highway project that
has a total cost for all segments that the commissioner estimates at the time of the report
to be at least (1) $15,000,000 in the metropolitan highway construction district, or (2)
$5,000,000 in any nonmetropolitan highway construction district.

Sec. 27.

[219.375] RAILROAD YARD LIGHTING.

Subdivision 1.

Lighting status reports submitted by railroad common carriers.

By January 15 of each year, each Class I and Class II railroad common carrier that
operates one or more railroad yards in this state, where, between sunset and sunrise, cars or
locomotives are frequently switched, repaired, or inspected, or where trains are assembled
and disassembled, shall submit to the commissioner of transportation a plan that:

(1) identifies all railroad yards operated by the railroad where the described work
is frequently accomplished between sunset and sunrise;

(2) describes the nature and placement of lighting equipment currently in use in the
yard and the maintenance status and practices regarding this equipment;

(3) states whether the lighting meets or exceeds guidelines for illumination
established by the American Railway Engineering and Maintenance-of-Way Association;

(4) describes whether existing lighting is installed and operated in a manner
consistent with energy conservation, glare reduction, minimization of light pollution, and
preservation of the natural night environment; and

(5) identifies plans and timelines to bring into compliance railroad yards that do not
utilize and maintain lighting equipment that meets or exceeds the standards and guidelines
under clauses (3) and (4), or states any reason why the standards and guidelines should
not apply.

Subd. 2.

Maintenance of lighting equipment.

A railroad common carrier
that is required to file a report under subdivision 1 shall maintain all railroad yard
lighting equipment in good working order and shall repair or replace any malfunctioning
equipment within 48 hours after the malfunction has been reported to the carrier. Repairs
must be made in compliance with, or to exceed the standards in, the Minnesota Electrical
Code and chapter 326B.

Subd. 3.

Lighting status reports submitted by worker representative.

By
January 15 of each year, the union representative of the workers at each railroad yard
required to submit a report under subdivision 1 shall submit to the commissioner of
transportation a report that:

(1) describes the nature and placement of lighting equipment currently in use in the
yard and maintenance status and practices regarding the equipment;

(2) describes the level of maintenance of lighting equipment and the carrier's
promptness in responding to reports of lighting malfunction;

(3) states whether the available lighting is adequate to provide safe working
conditions for crews working at night; and

(4) describes changes in the lighting equipment and its adequacy that have occurred
since the last previous worker representative report.

Subd. 4.

Commissioner response.

The commissioner shall review the reports
submitted under subdivisions 1 and 3. The commissioner shall investigate any
discrepancies between lighting status reports submitted under subdivisions 1 and 3,
and shall report findings to the affected yard's owner and worker representative. The
commissioner shall annually advise the chairs and ranking minority members of the house
of representatives and senate committees and divisions with jurisdiction over transportation
budget and policy as to the content of the reports submitted, discrepancies investigated,
the progress achieved by the railroad common carriers towards achieving the standards
and guidelines under clauses (3) and (4), and any recommendations for legislation to
achieve compliance with the standards and guidelines within a reasonable period of time.

Subd. 5.

Required lighting.

By December 31, 2015, a railroad common carrier
shall establish lighting that meets the standards and guidelines under subdivision 1, clauses
(3) and (4), at each railroad yard where:

(1) between sunset and sunrise:

(i) locomotives, or railcars carrying placarded hazardous materials, are frequently
switched, repaired, or inspected; or

(ii) trains with more than 25 tanker railcars carrying placarded hazardous materials
are assembled and disassembled; and

(2) the yard is located within two miles of a petroleum refinery having a crude oil
production capacity of 150,000 or more barrels per day.

Sec. 28.

Minnesota Statutes 2012, section 222.50, subdivision 7, is amended to read:


Subd. 7.

Expenditures.

(a) The commissioner may expend money from the rail
service improvement account for the following purposes:

(1) to make transfers as provided under section 222.57 or to pay interest adjustments
on loans guaranteed under the state rail user and rail carrier loan guarantee program;

(2) to pay a portion of the costs of capital improvement projects designed to improve
rail service of a rail user or a rail carrier;

(3) to pay a portion of the costs of rehabilitation projects designed to improve rail
service of a rail user or a rail carrier;

(4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to
the state rail bank program;

(5) to provide for aerial photography survey of proposed and abandoned railroad
tracks for the purpose of recording and reestablishing by analytical triangulation the
existing alignment of the inplace track;

(6) to pay a portion of the costs of acquiring a rail line by a regional railroad
authority established pursuant to chapter 398A;

(7) to pay the state matching portion of federal grants for rail-highway grade
crossing improvement projects; and

(8) for expenditures made before July 1, 2017, to pay the state matching portion
of grants under the federal Transportation Investment Generating Economic Recovery
(TIGER) program of the United States Department of Transportation; and

(9) to fund rail planning studies.

(b) All money derived by the commissioner from the disposition of railroad
right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall
be deposited in the rail service improvement account.

Sec. 29.

Minnesota Statutes 2013 Supplement, section 297A.815, subdivision 3,
is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this
subdivision, "net revenue" means an amount equal to:

(1) the revenues, including interest and penalties, collected under this section, during
the fiscal year; less

(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal
year 2013 and following fiscal years,
$32,000,000 in each fiscal year.

(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the revenues and subtraction under paragraph (a) net revenue
for the current fiscal year.

(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the net revenue as estimated in paragraph (b) from the general
fund, as follows:

(1) $9,000,000 annually until January 1, 2016 2015, and 50 percent annually
thereafter to the county state-aid highway fund. Notwithstanding any other law to the
contrary, the commissioner of transportation shall allocate the funds transferred under this
clause to the counties in the metropolitan area, as defined in section 473.121, subdivision
4, excluding the counties of Hennepin and Ramsey, so that each county shall receive
of such amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause; and

(2) the remainder to the greater Minnesota transit account.

Sec. 30.

[299A.017] STATE SAFETY OVERSIGHT.

Subdivision 1.

Office created.

The commissioner of public safety shall establish an
Office of State Safety Oversight in the Department of Public Safety for safety oversight of
rail fixed guideway public transportation systems within the state. The commissioner shall
designate a director of the office.

Subd. 2.

Authority.

The director shall implement and has regulatory authority to
enforce the requirements for the state set forth in United States Code, title 49, sections
5329 and 5330, federal regulations adopted pursuant to those sections, and successor or
supplemental requirements.

Sec. 31.

[473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.

Subdivision 1.

Adoption of standards.

(a) By January 1, 2015, the Metropolitan
Council shall adopt and may thereafter amend standards for the design of light rail
vehicles that are reasonably necessary to provide access for, and to protect the health and
safety of, persons who use the service. All light rail transit vehicles procured on and after
January 1, 2015, must conform to the standards then in effect.

(b) The Transportation Accessibility Advisory Committee must review the standards
and all subsequent amendments before the Metropolitan Council adopts them.

(c) The Metropolitan Council shall post adopted standards, including amendments,
on its Web site.

Subd. 2.

Minimum standards.

Standards adopted under this section must include,
but are not limited to:

(1) two dedicated spaces for wheelchair users in each car;

(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and

(3) further specifications that meet or exceed the standards established in the
Americans with Disabilities Act.

Sec. 32.

[473.41] TRANSIT SHELTERS AND STOPS.

Subdivision 1.

Definitions.

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

(b) "Transit authority" means:

(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and
train stop locations, transit shelters, and transit passenger seating facilities owned by the
city or established pursuant to a vendor contract with the city;

(2) the Metropolitan Council, with respect to transit shelters and transit passenger
seating facilities owned by the council or established pursuant to a vendor contract with
the council; or

(3) a replacement service provider under section 473.388, with respect to
rights-of-way at bus stop and train stop locations, transit shelters, and transit passenger
seating facilities owned by the provider or established pursuant to a vendor contract
with the provider.

(c) "Transit shelter" means a wholly or partially enclosed structure provided for
public use as a waiting area in conjunction with light rail transit, bus rapid transit, or
regular route transit.

Subd. 2.

Design.

(a) A transit authority shall establish design specifications for
establishment and replacement of its transit shelters, which must include:

(1) engineering standards, as appropriate;

(2) maximization of protection from the wind, snow, and other elements;

(3) to the extent feasible, inclusion of warming capability at each shelter in which
there is a proportionally high number of transit service passenger boardings; and

(4) full accessibility for the elderly and persons with disabilities.

(b) The council shall consult with the Transportation Accessibility Advisory
Committee.

Subd. 3.

Maintenance.

A transit authority shall ensure transit shelters are
maintained in good working order and are accessible to all users of the transit system.
This requirement includes but is not limited to:

(1) keeping transit shelters reasonably clean and free from graffiti; and

(2) removing snow and ice in a manner that provides accessibility for the elderly
and persons with disabilities to be able to enter and exit transit shelters, and board and
exit trains at each stop.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 33. TRANSPORTATION EFFICIENCIES.

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

Sec. 34. WATERCRAFT DECONTAMINATION SITES; REST AREAS.

Where feasible with existing resources, the commissioners of natural resources
and transportation shall cooperate in an effort to use rest areas as sites for watercraft
decontamination and other activities to prevent the spread of aquatic invasive species.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 35. HIGHWAY 14 TURNBACK.

(a) Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and
161.16, or any other law to the contrary, the commissioner of transportation may:

(1) by temporary order, take over the road described as "Old Highway 14" in the
settlement agreement and release executed January 7, 2014, between the state and Waseca
and Steele Counties; and

(2) upon completion of the work described in the settlement agreement, release "Old
Highway 14" back to Steele and Waseca Counties.

(b) Upon completion of the work described in the settlement agreement between the
state and Waseca and Steele Counties, the counties shall accept responsibility for the road
described in the agreement as "Old Highway 14."

Sec. 36. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.

Subdivision 1.

Engineering and traffic investigations.

The commissioner of
transportation shall perform engineering and traffic investigations on trunk highway
segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per
hour. On determining upon the basis of the investigation that the 55 miles per hour speed
limit can be reasonably and safely increased under the conditions found to exist on any
of the trunk highway segments examined, the commissioner may designate an increased
limit applicable to those segments and erect appropriate signs designating the speed limit.
The new speed limit shall be effective when the signs are erected. Of all the roadways
to be studied under this section, approximately one-fifth must be subject to investigation
each year until the statewide study is complete in 2019.

Subd. 2.

Report.

By January 15 annually, the commissioner shall provide to
the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over transportation policy and finance a list of trunk
highways or segments of trunk highways that were subject to an engineering and safety
investigation in the previous calendar year, specifying in each case the applicable speed
limits before and after the investigation.

EFFECTIVE DATE.

This section is effective the day following final enactment
and expires on the earlier of January 15, 2019, or the date the final report is submitted to
the legislative committees under this section.

Sec. 37. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE
VERIFICATION.

Subdivision 1.

Establishment.

The task force on motor vehicle insurance coverage
verification is established to review and evaluate approaches to insurance coverage
verification and recommend legislation to create and fund a program in this state.

Subd. 2.

Membership; meetings; staff.

(a) The task force shall be composed of
13 members, who must be appointed by July 1, 2014, and who serve at the pleasure of
their appointing authorities:

(1) the commissioner of public safety or a designee;

(2) the commissioner of commerce or a designee;

(3) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;

(4) two members of the senate, one appointed by the Subcommittee on Committees
of the Committee on Rules and Administration and one appointed by the minority leader;

(5) a representative of Minnesota Deputy Registrars Association;

(6) a representative of AAA Minnesota;

(7) a representative of AARP Minnesota;

(8) a representative of the Insurance Federation of Minnesota;

(9) a representative of the Minnesota Bankers Association;

(10) a representative of the Minnesota Bar Association; and

(11) a representative of the Minnesota Police and Peace Officers Association.

(b) Compensation and expense reimbursement must be as provided under Minnesota
Statutes, section 15.059, subdivision 3, to members of the task force.

(c) The commissioner of public safety shall convene the task force by August
1, 2014, and shall appoint a chair from the membership of the task force. Staffing and
technical assistance must be provided by the Department of Public Safety.

Subd. 3.

Duties.

The task force shall review and evaluate programs established in
other states as well as programs proposed by third parties, identify one or more programs
recommended for implementation in this state, and, as to the recommended programs,
adopt findings concerning:

(1) comparative costs of programs;

(2) implementation considerations, and in particular, identifying the appropriate
supervising agency and assessing compatibility with existing and planned computer
systems;

(3) effectiveness in verifying existence of motor vehicle insurance coverage;

(4) identification of categories of authorized users;

(5) simplicity of access and use for authorized users;

(6) data privacy considerations;

(7) data retention policies; and

(8) statutory changes necessary for implementation.

Subd. 4.

Report.

By February 1, 2015, the task force must submit to the
chairs and ranking minority members of the house of representatives and senate
committees and divisions with primary jurisdiction over commerce and transportation its
written recommendations, including any draft legislation necessary to implement the
recommendations.

Subd. 5.

Sunset.

The task force shall sunset the day after submitting the report
under subdivision 4, or February 2, 2015, whichever is earlier.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 38. COMMUNITY DESTINATION SIGN PILOT PROGRAM.

Subdivision 1.

Definition.

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

(b) "City" means the city of Two Harbors.

(c) "General retail services" means a business that sells goods or services (1) at
retail and directly to an end-use consumer, and (2) that are of interest to tourists or the
traveling public.

Subd. 2.

Pilot program established.

(a) In consultation with the city of Two
Harbors, the commissioner of transportation shall establish a community destination sign
pilot program for wayfinding within the city to destinations or attractions of interest to
the traveling public.

(b) For purposes of Minnesota Statutes, chapter 173, signs under the pilot program
are official signs.

Subd. 3.

Signage, design.

(a) The pilot program must include as eligible attractions
and destinations:

(1) minor traffic generators; and

(2) general retail services, specified by business name, that are identified in a
community wayfinding program established by the city.

(b) The commissioner of transportation, in coordination with the city, may establish
sign design specifications for signs under the pilot program. Design specifications must
allow for placement of:

(1) a city name and city logo or symbol; and

(2) up to five attractions or destinations on a community destination sign assembly.

Subd. 4.

Program costs.

The city shall pay costs of design, construction,
erection, and maintenance of the signs and sign assemblies under the pilot program. The
commissioner shall not impose fees for the pilot program.

Subd. 5.

Pilot program evaluation.

In coordination with the city, the commissioner
of transportation shall evaluate effectiveness of the pilot program under this section,
which must include analysis of traffic safety impacts, utility to motorists and tourists,
costs and expenditures, extent of community support, and pilot program termination
or continuation. By January 15, 2021, the commissioner shall submit a report on the
evaluation to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance.

Subd. 6.

Expiration.

The pilot program under this section expires January 1, 2022.

EFFECTIVE DATE.

This section is effective the day after the governing body of
the city of Two Harbors and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Sec. 39. TRANSIT SERVICE ON ELECTION DAY.

Subdivision 1.

Operating assistance recipients.

An eligible recipient of operating
assistance under Minnesota Statutes, section 174.24, who contracts or has contracted to
provide fixed route public transit shall provide fixed route public transit service free of
charge on a day a state general election is held.

Subd. 2.

Metropolitan Council.

(a) The Metropolitan Council shall provide
regular route transit, as defined under Minnesota Statutes, section 473.385, subdivision 1,
paragraph (b), free of charge on a day a state general election is held.

(b) The requirements under this subdivision apply to operators of regular route
transit (1) receiving financial assistance under Minnesota Statutes, section 473.388, or (2)
operating under Minnesota Statutes, section 473.405, subdivision 12.