HF 3931

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/20/2016 12:34pm

A bill for an act
relating to state government; making supplemental appropriations for jobs,
economic development, and energy affordability; appropriating money to the
Departments of Employment and Economic Development, Labor and Industry,
and Commerce, the Housing Finance Agency, Public Utilities Commission,
Public Facilities Authority, Explore Minnesota Tourism, Bureau of Mediation
Services, and Public Employment Relations Board; making policy changes to jobs
and economic development, labor and industry, housing, workers' compensation,
unemployment insurance, telephone regulation, broadband development, and
energy; requiring reports; amending Minnesota Statutes 2014, sections 115C.09,
subdivisions 1, 3; 116C.779, subdivision 1, by adding a subdivision; 116J.395,
subdivisions 4, 6, 7, by adding subdivisions; 116J.548, subdivisions 2, 3;
116J.8737, subdivision 3; 116J.8747, subdivisions 1, 2; 116M.15, subdivision 1;
176.011, subdivision 7a; 176.081, subdivisions 1, 3; 176.137, subdivisions 1, 4,
by adding a subdivision; 176.331; 176.361, subdivisions 1, 2, 3, 4, 5, 6, by adding
a subdivision; 176.471, subdivisions 3, 5; 176.511, subdivisions 2, 3; 176.571,
subdivision 1; 182.653, subdivision 9; 216A.03, subdivision 1, by adding a
subdivision; 216B.1641; 216B.241, subdivisions 1, 1a, 1c; 216B.243, subdivision
8; 216C.20, subdivision 3; 216E.03, subdivision 5; 216H.01, by adding a
subdivision; 216H.03, subdivision 1; 237.01, by adding subdivisions; 237.012,
subdivisions 1, 2; 268.035, subdivisions 12, 20, 23a, 29, by adding subdivisions;
268.051, subdivision 5; 268.085, subdivisions 4, 5; 268.0865, subdivisions
3, 4; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.18; 268.182,
subdivision 2; 383B.142; 462A.204, subdivisions 1, 3; Minnesota Statutes 2015
Supplement, sections 16A.967, subdivisions 2, 7; 116J.394; 176.135, subdivision
7a; 176.136, subdivision 1b; 268.07, subdivision 3b; 268.085, subdivision 2;
Laws 2001, chapter 130, section 3; Laws 2015, First Special Session chapter 1,
article 1, sections 2, subdivision 3; 8, subdivision 8; proposing coding for new
law in Minnesota Statutes, chapters 116J; 216E; 237; 383B; repealing Minnesota
Statutes 2014, sections 116U.26; 179A.50; 179A.51; 179A.52; 179A.53.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS new text end

new text begin The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2015, First Special Session,
chapter 1, or other law to the specified agencies. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2016" and "2017" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
respectively. Appropriations for the fiscal year ending June 30, 2016, are effective the day
following final enactment. Reductions may be taken in either fiscal year.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2016 new text end		new text begin 2017 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 7,653,000 new text end

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin (11,947,000) new text end

new text begin (a) $12,000,000 in fiscal year 2017 is a
onetime reduction in the general fund
appropriation for the Minnesota investment
fund under Minnesota Statutes, section
116J.8731. The base funding for this purpose
is $5,000,000 in fiscal year 2018 and each
fiscal year thereafter.
new text end

new text begin (b) $8,500,000 in fiscal year 2017 is a
onetime reduction in the general fund
appropriation for the Minnesota job creation
fund under Minnesota Statutes, section
116J.8748. The base funding for this
program is $7,500,000 in fiscal year 2018
and each fiscal year thereafter.
new text end

new text begin (c) $1,000,000 in fiscal year 2017 is from the
general fund for the redevelopment program
under Minnesota Statutes, section 116J.571.
This is a onetime appropriation.
new text end

new text begin (d) $1,000,000 in fiscal year 2017 is from the
workforce development fund for a grant to
the Neighborhood Development Center for
developing and supporting entrepreneurial
skills and job creation in communities served
by the Neighborhood Development Center.
Funds may be used for activities including but
not limited to business plan training, business
workshops, technical assistance to small
business owners, development and support
of business incubators, entrepreneurial
network development, and the expansion
of entrepreneurial capacity in communities.
This is a onetime appropriation.
new text end

new text begin (e) $100,000 in fiscal year 2017 is from
the general fund for an easy-to-understand
manual to instruct aspiring business owners
in how to start a child care business. The
commissioner shall work in consultation
with relevant state and local agencies
and affected stakeholders to produce the
manual. The manual must be made available
electronically to interested persons. This is a
onetime appropriation and is available until
June 30, 2019.
new text end

new text begin (f) $500,000 in fiscal year 2017 is from the
workforce development fund for a grant to
Enterprise Minnesota, Inc. Of this amount,
$250,000 is for the small business growth
acceleration program under Minnesota
Statutes, section 116O.115, and $250,000
is for operations under Minnesota Statutes,
sections 116O.01 to 116O.061. This is a
onetime appropriation.
new text end

new text begin (g) $12,000 in fiscal year 2017 is a reduction
in the general fund appropriation for the
Upper Minnesota Film Office.
new text end

new text begin (h) $1,825,000 in fiscal year 2017 is a
reduction in the general fund appropriation
for the Minnesota Film and TV Board.
new text end

new text begin (i) $5,000,000 in fiscal year 2017 is from
the general fund for the workforce housing
grant program in Minnesota Statutes, section
116J.549. This is a onetime appropriation.
new text end

new text begin (j) $2,290,000 in fiscal year 2017 is from the
general fund for a grant to Mille Lacs County
to develop and operate the Lake Mille Lacs
area economic relief program established
in article 2, section 11. This is a onetime
appropriation.
new text end

new text begin (k) $500,000 in fiscal year 2017 is from the
general fund for grants to local communities
outside of the metropolitan area as defined
under Minnesota Statutes, section 473.121,
subdivision 2, to increase the supply of
quality child care providers in order to
support regional economic development.
Grant recipients must match state funds on a
dollar-for-dollar basis. Grant funds available
under this section must be used to implement
solutions to reduce the child care shortage
in the state, including but not limited to
funding for child care business start-up or
expansion, training, facility modifications
or improvements required for licensing,
and assistance with licensing and other
regulatory requirements. In awarding grants,
the commissioner must give priority to
communities in greater Minnesota that have
documented a shortage of child care providers
in the area. This is a onetime appropriation
and is available until June 30, 2019.
new text end

new text begin By September 30, 2017, grant recipients must
report to the commissioner on the outcomes
of the grant program, including but not
limited to the number of new providers, the
number of additional child care provider jobs
created, the number of additional child care
slots, and the amount of local funds invested.
new text end

new text begin By January 1, 2018, the commissioner must
report to the standing committees of the
legislature having jurisdiction over child care
and economic development on the outcomes
of the program to date.
new text end

new text begin Subd. 3. new text end new text begin Workforce Development new text end

new text begin 3,900,000 new text end

new text begin (a) $600,000 in fiscal year 2017 is from the
workforce development fund for a grant to
Ujamaa Place for job training, employment
preparation, internships, education, training
in the construction trades, housing, and
organizational capacity building. This is a
onetime appropriation.
new text end

new text begin (b) $800,000 in fiscal year 2017 is from the
workforce development fund for a grant
to Latino Communities United in Service
(CLUES) to expand culturally tailored
programs that address employment and
education skill gaps for working parents
and underserved youth. Funds must be
used to provide new job skills training to
stimulate higher wages for low-income
people, family support systems designed
to reduce generational poverty, and youth
programming to promote educational
advancement and career pathways. At
least 50 percent of the total grant funds
must be used for programming in greater
Minnesota. CLUES shall submit a report to
the chairs and ranking minority members of
the legislative committees and divisions of
the senate and house of representatives with
primary jurisdiction over jobs with findings
of program outcomes by March 1, 2018. The
report must include the type, duration, and
attendance of each program and quantifiable
measures of success. This is a onetime
appropriation and is available until June 30,
2019.
new text end

new text begin (c) $600,000 in fiscal year 2017 is from the
workforce development fund for performance
grants under Minnesota Statutes, section
116J.8747, to Twin Cities RISE! to provide
training to hard-to-train individuals. This is
onetime appropriation.
new text end

new text begin (d) $1,000,000 in fiscal year 2017 is from the
general fund for a grant to the Construction
Careers Foundation for the construction
career pathway initiative to provide
year-round educational and experiential
learning opportunities for teens and young
adults under the age of 21 that lead to careers
in the construction industry. This is a onetime
appropriation and is available until June 30,
2019. Grant funds must be used to:
new text end

new text begin (1) increase construction industry exposure
activities for middle school and high school
youth, parents, and counselors to reach a more
diverse demographic and broader statewide
audience. This requirement includes, but
is not limited to, an expansion of programs
to provide experience in different crafts to
youth and young adults throughout the state;
new text end

new text begin (2) increase the number of high schools
in Minnesota offering construction classes
during the academic year that utilize a
multicraft curriculum;
new text end

new text begin (3) increase the number of summer internship
opportunities;
new text end

new text begin (4) enhance activities to support graduating
seniors in their efforts to obtain employment
in the construction industry;
new text end

new text begin (5) increase the number of young adults
employed in the construction industry and
ensure that they reflect Minnesota's diverse
workforce; and
new text end

new text begin (6) enhance an industrywide marketing
campaign targeted to youth and young adults
about the depth and breadth of careers within
the construction industry.
new text end

new text begin Programs and services supported by grant
funds must give priority to individuals and
groups that are economically disadvantaged
or historically underrepresented in the
construction industry, including but not
limited to women, veterans, and members of
minority and immigrant groups.
new text end

new text begin (e) $400,000 in fiscal year 2017 is from the
general fund for the Youth at Work youth
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
program. This is a onetime appropriation and
is available until June 30, 2018.
new text end

new text begin (f) $500,000 in fiscal year 2017 is
appropriated from the workforce
development fund for a grant to the YWCA
of Minneapolis to provide economically
challenged individuals the jobs skills
training, career counseling, and job
placement assistance necessary to secure
a child development associate credential
and to have a career path in early childhood
education. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end new text begin Vocational Rehabilitation new text end

new text begin 500,000 new text end

new text begin $500,000 in fiscal year 2017 is from
the general fund for grants to centers
for independent living under Minnesota
Statutes, section 268A.11. This is a onetime
appropriation.
new text end

new text begin Subd. 5. new text end new text begin State Services for the Blind new text end

new text begin 200,000 new text end

new text begin $200,000 in fiscal year 2017 is from the
general fund for State Services for the
Blind. Funds appropriated must be used to
provide services for senior citizens who are
becoming blind. At least half of the funds
appropriated must be used to provide training
services for seniors who are becoming blind.
Training services must provide independent
living skills to seniors who are becoming
blind to allow them to continue to live
independently in their homes. This is a
onetime appropriation.
new text end

new text begin Subd. 6. new text end new text begin Broadband Development new text end

new text begin 15,000,000 new text end

new text begin (a) $15,000,000 in fiscal year 2017 is
from the general fund for deposit in the
border-to-border broadband fund account
under Minnesota Statutes, section 116J.396,
for the purpose of awarding grants under that
section. The base funding for this program is
$25,000,000 in fiscal year 2018. These are
onetime appropriations.
new text end

new text begin (b) $500,000 must be awarded to projects
that propose to expand the availability and
adoption of broadband service to areas
that contain a significant proportion of
low-income households. For the purposes of
this subdivision, "low-income households"
means households whose household income
is less than or equal to 200 percent of the
most recent calculation of the United States
federal poverty guidelines published by the
federal Department of Health and Human
Services, adjusted for family size.
new text end

new text begin (c) Minnesota Statutes, section 116J.395,
subdivision 5a, does not apply to applications
for grants under paragraph (b) and does
not apply to applications for grants under
paragraph (a) in underserved areas.
new text end

new text begin (d) If grant awards in any area are insufficient
to fully expend the funds available for
that area, the commissioner may reallocate
unexpended funds to other areas.
new text end

Sec. 3. new text begin HOUSING FINANCE AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (4,750,000) new text end

new text begin Subd. 2. new text end new text begin Challenge Program new text end

new text begin (5,000,000) new text end

new text begin (a) This is a onetime general fund
appropriation reduction in fiscal year 2017.
new text end

new text begin (b) The base funding for this program in fiscal
year 2018 and thereafter is $12,925,000.
new text end

new text begin Subd. 3. new text end new text begin Family Homeless Prevention new text end

new text begin 250,000 new text end

new text begin $250,000 in fiscal year 2017 is from the
general fund for grants to eligible applicants
to create or expand risk mitigation programs
to reduce landlord financial risks for renting
to persons eligible under Minnesota Statutes,
section 462A.204. Eligible programs may
reimburse landlords for costs including but
not limited to nonpayment of rent, or damage
costs above those costs covered by security
deposits. The agency may give higher
priority to applicants that can demonstrate
a matching amount of money by a local
unit of government, business, or nonprofit
organization. Grantees must establish a
procedure to review and validate claims and
reimbursements under this grant program.
This is a onetime appropriation.
new text end

Sec. 4. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 800,000 new text end

new text begin (a) $300,000 in fiscal year 2017 is from
the general fund for a grant to the Mille
Lacs Tourism Council to enhance marketing
activities related to tourism promotion in
the Mille Lacs Lake area. This is a onetime
appropriation.
new text end

new text begin (b) $500,000 in fiscal year 2017 is from the
general fund for a pilot project to assist in
funding and securing major events benefiting
communities throughout the state. The pilot
project must measure the economic impact
of visitors on state and local economies,
increased lodging and nonlodging sales taxes
in addition to visitor spending, and increased
media awareness of the state as an event
destination. This is a onetime appropriation.
new text end

Sec. 5. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin Subd. 2. new text end new text begin Labor Standards and Apprenticeship new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin $250,000 in fiscal year 2017 is from the
general fund for the apprenticeship program
under Minnesota Statutes, chapter 178.
new text end

Sec. 6. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (125,000) new text end

new text begin This is a reduction in the general fund
appropriation in fiscal year 2017 for the
Public Employment Relations Board.
new text end

Sec. 7. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (151,000) new text end

new text begin Subd. 2. new text end new text begin Telecommunications new text end

new text begin (376,000) new text end

new text begin The base amount for this purpose is $558,000
in fiscal year 2018 and $482,000 in fiscal
year 2019.
new text end

new text begin Subd. 3. new text end new text begin Energy Resources new text end

new text begin -0- new text end

new text begin 100,000 new text end

new text begin $100,000 in fiscal year 2017 is from the
general fund for energy regulation and
planning unit staff. This appropriation is
not subject to assessment under Minnesota
Statutes, section 216B.62.
new text end

new text begin Subd. 4. new text end new text begin Insurance new text end

new text begin 125,000 new text end

new text begin $125,000 in fiscal year 2017 is from the
general fund for insurance fraud enforcement
under Minnesota Statutes, section 45.0135,
subdivision 9.
new text end

Sec. 8. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (56,000) new text end

new text begin (a) Of the amount appropriated, $112,000
in fiscal year 2017 is from the general
fund for costs related to implementation
of solar energy standards and community
solar garden requirements under Laws
2013, chapter 85, and Laws 2015, First
Special Session chapter 1, article 3. This
appropriation is not subject to assessment
under Minnesota Statutes, section 216B.62.
new text end

new text begin (b) Of the amount in fiscal year 2017,
$375,000 is a onetime reduction in the general
fund appropriation for telecommunications
regulation.
new text end

new text begin (c) Of the amount appropriated in fiscal year
2017, $207,000 is from the general fund for
expenses related to additional Public Utilities
Commission members.
new text end

new text begin (d) The base funding for the Public Utilities
Commission is $7,155,000 in fiscal year
2018 and $7,461,000 in fiscal year 2019.
new text end

Sec. 9. new text begin PUBLIC FACILITIES AUTHORITY new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 11,500,000 new text end

new text begin $11,500,000 in fiscal year 2017 is from the
general fund for a grant to the Lewis and
Clark Joint Powers Board to acquire land,
design, engineer, and construct facilities
and infrastructure necessary to complete
Phase 3 of the Lewis and Clark Regional
Water System project, including extension
of the project from the Lincoln-Pipestone
Rural Water System connection near
Adrian to Worthington, construction of a
reservoir in Nobles County and a meter
building in Worthington, and acquiring and
installing a supervisory control and data
acquisition (SCADA) system. This is a
onetime appropriation and is not available
until the commissioner of management and
budget determines that at least $9,000,000
is committed to the Phase 3 of the project
from nonstate sources. This appropriation
is available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.
new text end

Sec. 10.

Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 3,
is amended to read:

Subd. 3. Workforce Development

Appropriations by Fund
General	2,189,000	1,789,000
Workforce Development	17,567,000	16,767,000

(a) $1,039,000 each year from the general
fund and $3,104,000 each year from the
workforce development fund are for the adult
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
adult workforce development competitive
grant program. All grant awards shall be
for two consecutive years. Grants shall be
awarded in the first year.

(b) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561, to
provide employment and career advising to
youth, including career guidance in secondary
schools, to address the youth career advising
deficiency, to carry out activities outlined
in Minnesota Statutes, section 116L.561,
to provide support services, and to provide
work experience to youth in the workforce
service areas. The funds in this paragraph
may be used for expansion of the pilot
program combining career and higher
education advising in Laws 2013, chapter 85,
article 3, section 27. Activities in workforce
services areas under this paragraph may
serve all youth up to age 24.

(c) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota
Statutes, sections 116L.361 to 116L.366.

(d) $450,000 each year is from the workforce
development fund for a grant to Minnesota
Diversified Industries, Inc., to provide
progressive development and employment
opportunities for people with disabilities.

(e) $3,348,000 each year is from the
workforce development fund for the "Youth
at Work" youth workforce development
competitive grant program. Of this amount,
up to five percent is for administration
and monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first
year.

(f) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs.

(g) $750,000 each year is from the workforce
development fund for a grant to the
Minnesota Alliance of Boys and Girls
Clubs to administer a statewide project
of youth jobs skills development. This
project, which may have career guidance
components, including health and life skills,
is to encourage, train, and assist youth in
job-seeking skills, workplace orientation,
and job-site knowledge through coaching.
This grant requires a 25 percent match from
nonstate resources.

(h) $250,000 the first year and $250,000 the
second year are for pilot programs in the
workforce service areas to combine career
and higher education advising.

(i) $215,000 each year is from the workforce
development fund for a grant to Big
Brothers, Big Sisters of the Greater Twin
Cities for workforce readiness, employment
exploration, and skills development for
youth ages 12 to 21. The grant must serve
youth in the Twin Cities, Central Minnesota
and Southern Minnesota Big Brothers, Big
Sisters chapters.

(j) $900,000 in fiscal year 2016 and
$1,100,000 in fiscal year 2017 are from the
workforce development fund for a grant to the
Minnesota High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two-
and four-year college students in their field
of study. The internship opportunities
must match students with paid internships
within STEM disciplines at small, for-profit
companies located in the seven-county
metropolitan area, having fewer than 150
total employees; or at small or medium,
for-profit companies located outside of the
seven-county metropolitan area, having
fewer than 250 total employees. At least 200
students must be matched in the first year
and at least 250 students must be matched in
the second year. Selected hiring companies
shall receive from the grant 50 percent of the
wages paid to the intern, capped at $2,500
per intern. The program must work toward
increasing the participation among women or
other underserved populations.

(k) $50,000 each year is from the workforce
development fund for a grant to the St. Cloud
deleted text begin Area deleted text end Somali deleted text begin Salvation deleted text end new text begin Youth new text end Organization
for youth development and crime prevention
activities. Grant funds may be used to
train and place mentors in elementary and
secondary schools; for athletic, social,
and other activities to foster leadership
development; to provide a safe place for
participating youth to gather after school, on
weekends, and on holidays; and activities to
improve the organizational and job readiness
skills of participating youth. new text begin This is a
onetime appropriation and is available until
June 30, 2019. Funds appropriated the first
year are available for use in the second year
of the biennium.
new text end

(l) $500,000 each year is for rural career
counseling coordinator positions in the
workforce service areas and for the purposes
specified in Minnesota Statutes, section
116L.667. The commissioner, in consultation
with local workforce investment boards and
local elected officials in each of the service
areas receiving funds, shall develop a method
of distributing funds to provide equitable
services across workforce service areas.

(m) $400,000 in fiscal year 2016 is for a grant
to YWCA Saint Paul for training and job
placement assistance, including commercial
driver's license training, through the job
placement and retention program. This is a
onetime appropriation.

(n) $800,000 in fiscal year 2016 is from
the workforce development fund for
the customized training program for
manufacturing industries under article 2,
section 24. This is a onetime appropriation
and is available in either year of the
biennium. Of this amount:

(1) $350,000 is for a grant to Central Lakes
College for the purposes of this paragraph;

(2) $250,000 is for Minnesota West
Community and Technical College for the
purposes of this paragraph; and

(3) $200,000 is for South Central College for
the purposes of this paragraph.

(o) $500,000 each year is from the workforce
development fund for a grant to Resource,
Inc. to provide low-income individuals
career education and job skills training that
are fully integrated with chemical and mental
health services.

(p) $200,000 in fiscal year 2016 and $200,000
in fiscal year 2017 are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide training to
hard-to-train individuals. This is a onetime
appropriation.

(q) $200,000 in fiscal year 2016 is from
the workforce development fund for the
foreign-trained health care professionals
grant program modeled after the pilot
program conducted under Laws 2006,
chapter 282, article 11, section 2, subdivision
12, to encourage state licensure of
foreign-trained health care professionals,
including: physicians, with preference given
to primary care physicians who commit
to practicing for at least five years after
licensure in underserved areas of the state;
nurses; dentists; pharmacists; mental health
professionals; and other allied health care
professionals. The commissioner must
collaborate with health-related licensing
boards and Minnesota workforce centers to
award grants to foreign-trained health care
professionals sufficient to cover the actual
costs of taking a course to prepare health
care professionals for required licensing
examinations and the fee for the state
licensing examinations. When awarding
grants, the commissioner must consider the
following factors:

(1) whether the recipient's training involves
a medical specialty that is in high demand in
one or more communities in the state;

(2) whether the recipient commits to
practicing in a designated rural area or an
underserved urban community, as defined in
Minnesota Statutes, section 144.1501;

(3) whether the recipient's language skills
provide an opportunity for needed health care
access for underserved Minnesotans; and

(4) any additional criteria established by the
commissioner.

This is a onetime appropriation and is
available until June 30, 2019.

Sec. 11.

Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 8,
is amended to read:

Subd. 8. Insurance

Appropriations by Fund
General	4,095,000	4,004,000
Workers' Compensation	553,000	553,000

$642,000 each year is for health insurance
rate review staffing.

$91,000 in fiscal year 2016 is for the task
force on no-fault auto insurance issues.

new text begin $125,000 in fiscal year 2017 is for insurance
fraud enforcement under Minnesota Statutes,
section 45.0135, subdivision 9.
new text end

ARTICLE 2

JOBS AND ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2015 Supplement, section 16A.967, subdivision 2,
is amended to read:

Subd. 2.

Authorization to issue appropriation bonds.

(a) Subject to the limitations
of this subdivision, the commissioner may sell and issue appropriation bonds of the state
under this section for public purposes as provided by law deleted text begin , including, in particular, the
financing of the land acquisition, design, engineering, and construction of facilities and
infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water
System project, including completion of the pipeline to Magnolia, extension of the project
to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering,
design, and easement acquisition for the final phase of the project to Worthington. No
bonds shall be sold until the commissioner determines that a nonstate match of at least
$9,000,000 is committed to this project phase deleted text end . Grant agreements entered into under this
section must provide for reimbursement to the state from any federal money provided for
the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.

(b) The appropriation bonds may be issued and sold only after the commissioner
determines that the construction and administration for work done on the project will
comply with (1) all federal requirements and regulations associated with the Lewis and
Clark Rural Water System Act of 2000, and (2) the cooperative agreement between the
United States Department of the Interior and the Lewis and Clark Regional Water System,
Inc. Proceeds of the appropriation bonds must be credited to a special appropriation Lewis
and Clark bond proceeds fund in the state treasury. All income from investment of the
bond proceeds, as estimated by the commissioner, is appropriated to the commissioner for
the payment of principal and interest on the appropriation bonds.

(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the
commissioner, are necessary to provide sufficient money new text begin to the Public Facilities Authority
under subdivision 7 new text end , not to exceed $19,000,000 net of costs of issuance, for the purposes as
provided under new text begin this new text end paragraph deleted text begin (a) deleted text end , and pay debt service including capitalized interest, costs
of issuance, costs of credit enhancement, or make payments under other agreements entered
into under paragraph (e). new text begin The bonds authorized by this paragraph are for the purposes
of financing the land acquisition, design, engineering, and construction of facilities and
infrastructure necessary to complete Phase 2 of the Lewis and Clark Regional Water
System project, including completion of the pipeline to Magnolia; extension of the project
to the Lincoln-Pipestone Rural Water System connection near Adrian; and engineering,
design, and easement acquisition for the final phase of the project to Worthington. No
bonds shall be sold under this subdivision until the commissioner determines that a
nonstate match of at least $9,000,000 is committed to this project phase. Upon completion
of Phase 2, the unspent, unencumbered portion of the appropriation in this subdivision
is available for the purposes of Phase 3, which includes extension of the project from
the Lincoln-Pipestone Rural Water System connection near Adrian to Worthington,
construction of a reservoir in Nobles County and a meter building in Worthington, and
acquiring and installing a supervisory control and data acquisition (SCADA) system.
new text end

(d) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 25 years. The appropriation 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) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
enter into agreements and ancillary arrangements relating to the appropriation bonds,
including but not limited to trust indentures, grant agreements, lease or use agreements,
operating agreements, management agreements, liquidity facilities, remarketing or
dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
reimbursement agreements, indexing agreements, or interest exchange agreements. Any
payments made or received according to the agreement or ancillary arrangement shall be
made from or deposited as provided in the agreement or ancillary arrangement. The
determination of the commissioner included in an interest exchange agreement that the
agreement relates to an appropriation bond shall be conclusive.

(f) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance
of appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized
by the order or resolution.

(g) The appropriation bonds are not subject to chapter 16C.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2015 Supplement, section 16A.967, subdivision 7, is
amended to read:

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds new text begin issued
under this section new text end and interest credited to the special appropriation Lewis and Clark bond
proceeds fund are appropriated deleted text begin to the commissioner deleted text end new text begin :
new text end

new text begin (1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers
Board new text end for payment of capital expenses deleted text begin for the purposes provided by deleted text end new text begin as specified in new text end
subdivision 2 deleted text begin , paragraph (a), deleted text end new text begin ; and
new text end

new text begin (2) to the commissioner for new text end debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and
payments under any agreements entered into under subdivision 2, paragraph (e), each as
permitted by state and federal law deleted text begin , and such proceeds may be granted, loaned, or otherwise
provided for the public purposes provided by subdivision 2, paragraph (a) deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 116J.548, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section:

(a) "Capital costs" means expenditures for the new text begin public new text end acquisition deleted text begin and deleted text end new text begin of land and
buildings, new text end betterment of public lands and buildings, and deleted text begin for deleted text end other publicly owned capital
improvements. Capital costs also include expenditures for predesign, design, engineering,
and similar activities for specifically identified eligible projects.

(b) "Eligible project" means a development or redevelopment project that will
generate economic development new text begin within a time frame of five years or less or facilitate the
preparation of long-term economic development new text end within a host community.

(c) "Economic development" means new text begin assistance in preparation of a redevelopment or
development area contained in the application that results in at least one of the following:
new text end

new text begin (1) new text end job creation, new text begin including jobs relating to construction and temporary jobs;
new text end

new text begin (2) new text end an increase in the tax base deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) new text end the deleted text begin capacity deleted text end new text begin ability new text end of the eligible project to attract private investment deleted text begin , and deleted text end new text begin ;
new text end

new text begin (4) long-term economic development;
new text end

new text begin (5) needed public infrastructure or transportation-related improvements to facilitate
long-term redevelopment or development; or
new text end

new text begin (6) new text end other objective criteria established by the commissioner that demonstrate a
public benefit to the host community.

(d) "Host community" means a city located within the seven-county metropolitan
area, as defined in section 473.121, subdivision 2, that is the site of a waste disposal
facility that meets the standards in section 473.849, that accepts unprocessed mixed
municipal solid waste generated in the metropolitan area.

new text begin (e) "Long-term economic development" means capital costs associated with
economic development projects identified by a host community comprehensive plan or
redevelopment plan that will generate eligible economic development.
new text end

Sec. 4.

Minnesota Statutes 2014, section 116J.548, subdivision 3, is amended to read:

Subd. 3.

Application.

Host communities may apply for a grant under this section
on a form and in a manner prescribed by the commissioner. In awarding grants under
this section, deleted text begin the commissioner shall give priority to eligible projects that, based on a
cost-benefit analysis, provide the highest return on public investment. deleted text end the commissioner
must allocate available money between host communities as evenly as practicable.

Sec. 5.

Minnesota Statutes 2014, section 116J.8737, subdivision 3, is amended to read:

Subd. 3.

Certification of qualified investors.

(a) Investors may apply to the
commissioner for certification as a qualified investor for a taxable year. The application
must be in the form and be made under the procedures specified by the commissioner,
accompanied by an application fee of $350. Application fees are deposited in the small
business investment tax credit administration account in the special revenue fund. The
application for certification for 2010 must be made available on the department's Web
site by August 1, 2010. Applications for subsequent years' certification must be made
available on the department's Web site by November 1 of the preceding year.

(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the investor as satisfying the conditions required
of a qualified investor, request additional information from the investor, or reject the
application for certification. If the commissioner requests additional information from the
investor, the commissioner must either certify the investor or reject the application within
30 days of receiving the additional information. If the commissioner neither certifies the
investor nor rejects the application within 30 days of receiving the original application or
within 30 days of receiving the additional information requested, whichever is later, then
the application is deemed rejected, and the commissioner must refund the $350 application
fee. An investor who applies for certification and is rejected may reapply.

(c) To receive certification, an investor must (1) be a natural person; and (2) certify
to the commissioner that the investor will only invest in a transaction that is exempt under
section 80A.46, clause (13) or (14), new text begin in a security exempt under section 80A.461, new text end or in a
security registered under section 80A.50, paragraph (b).

(d) In order for a qualified investment in a qualified small business to be eligible
for tax credits, a qualified investor who makes the investment must have applied for
and received certification for the calendar year prior to making the qualified investment,
except in the case of an investor who is not an accredited investor, within the meaning of
Regulation D of the Securities and Exchange Commission, Code of Federal Regulations,
title 17, section 230.501, paragraph (a), application for certification may be made within
30 days after making the qualified investment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 6.

Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:

Subdivision 1.

Grant allowed.

The commissioner may provide a grant to a qualified
job training program from money appropriated for the purposes of this section as follows:

(1) deleted text begin a $9,000 deleted text end new text begin an $11,000 new text end placement grant paid to a job training program upon
placement in employment of a qualified graduate of the program; and

(2) deleted text begin a $9,000 deleted text end new text begin an $11,000 new text end retention grant paid to a job training program upon retention
in employment of a qualified graduate of the program for at least one year.

Sec. 7.

Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:

Subd. 2.

Qualified job training program.

To qualify for grants under this section,
a job training program must satisfy the following requirements:

(1) the program must be operated by a nonprofit corporation that qualifies under
section 501(c)(3) of the Internal Revenue Code;

(2) the program must spend deleted text begin at least deleted text end new text begin , on average, new text end $15,000 new text begin or more new text end per graduate
of the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics, and communications;

(ii) thinking skills, such as reasoning, creative thinking, decision making, and
problem solving; and

(iii) personal qualities, such as responsibility, self-esteem, self-management,
honesty, and integrity;

(4) the program deleted text begin must deleted text end new text begin may new text end provide income supplements, when needed, to participants
for housing, counseling, tuition, and other basic needs;

(5) the program's education and training course must last for an average of at least
six months;

(6) individuals served by the program must:

(i) be 18 years of age or older;

(ii) have federal adjusted gross income of no more than deleted text begin $11,000 deleted text end new text begin $12,000 new text end per year in
the calendar year immediately before entering the program;

(iii) have assets of no more than deleted text begin $7,000 deleted text end new text begin $10,000 new text end , excluding the value of a
homestead; and

(iv) not have been claimed as a dependent on the federal tax return of another person
in the previous taxable year; and

(7) the program must be certified by the commissioner of employment and economic
development as meeting the requirements of this subdivision.

Sec. 8.

Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:

Subdivision 1.

Creation; membership.

The Urban Initiative Board is created and
consists of the commissioner of employment and economic development, new text begin the commissioner
of human rights, new text end the chair of the Metropolitan Council, and eight members from the general
public appointed by the governor. Six of the public members must be representatives from
minority business enterprises. No more than four of the public members may be of one
gender. All public members must be experienced in business or economic development.

Sec. 9.

Minnesota Statutes 2014, section 383B.142, is amended to read:

383B.142 PROCEDURE.

Subdivision 1.

Delegation of authority.

The county board may by resolution
delegate the powers and duties enumerated in sections 383B.141 to deleted text begin 383B.151 deleted text end new text begin 383B.1511 new text end ,
and those powers and duties necessary to the implementation of the purposes of central
purchasing specifying the nature, scope and extent of the delegation. The authority and
responsibility subject to delegation shall include, but not be limited to the following:

(a) purchasing and contracting for all goods, materials, supplies, equipment and
contracted services, as provided in section 383B.143;

(b) preparation, review, modification and approval of all plans and specifications for
goods, materials, supplies, equipment and contracted services;

(c) the transfer of any goods, materials, supplies, equipment or contracted services to
or between departments, boards, commissions and agencies;

(d) selling or otherwise disposing of goods, materials, supplies, equipment and
contracted services which are unusable or no longer required; and

(e) periodically reviewing and requiring department heads to supply necessary data
concerning inventories and surpluses and monitoring compliance by department heads
with purchasing laws, rules, regulations and procedures.

Subd. 2.

Administrator's duties.

Notwithstanding the provisions of section
373.02, the county board may delegate its purchasing powers and duties to the county
administrator. The county administrator, wherever referred to in sections 383B.141 to
deleted text begin 383B.151 deleted text end new text begin 383B.1511 new text end , may designate and delegate a purchasing manager or other person
to perform the tasks empowered or assigned to the county administrator. Any purchase in
excess of $3,500 shall require the signature of the county administrator or designee.

Sec. 10.

new text begin [383B.1511] JOB ORDER CONTRACTING.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) In this section, the definitions in this subdivision
apply.
new text end

new text begin (b) "Job order contracting" means a project delivery method that requests a limited
number of bids from a list of qualified contractors, selected from a registry of qualified
contractors who have been prescreened and who have entered into master contracts with
the county, as provided in this section.
new text end

new text begin (c) "Project" means an undertaking by the county to construct, alter, maintain, repair,
or enlarge a building, structure, road, or bridge, or make other improvements.
new text end

new text begin (d) "Request for qualifications" means the document or publication soliciting
qualifications for a job order contracting contract.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin Notwithstanding any law to the contrary, the county may utilize
job order contracting for projects that do not exceed a construction cost of $250,000.
new text end

new text begin Subd. 3. new text end

new text begin Job order contracting request for qualifications. new text end

new text begin (a) The county is
authorized to issue a request for qualifications that includes the criteria that will be
used for the projects, provided that these criteria (1) do not unduly restrict competition
or impose conditions beyond reasonable requirements, in order to ensure maximum
participation of all qualified contractors, and (2) do not relate to the collective bargaining
status of the contractor.
new text end

new text begin (b) The request for qualifications must be publicized in a manner designated by the
county that ensures open and unrestricted access for any potential responder. To the extent
practical, this must include posting on a county Web site.
new text end

new text begin Subd. 4. new text end

new text begin Qualified contractors. new text end

new text begin (a) The county shall review the responses to the
request for qualifications and determine each proposer's ability to enter into the master
contract that will be utilized for the projects. The county shall establish a list of qualified
contractors based on the proposers' ability to enter into a master contract as described
in the request for qualifications.
new text end

new text begin (b) The county may establish a reasonable limit to the number of contractors on the
registry of qualified contractors, based on the reasonable needs of the county. The county
may reserve up to 75 percent of the registry for certified small business enterprises that
may include minority-owned business enterprises, women-owned business enterprises,
and veteran-owned businesses. The remaining 25 percent of the registry may include
qualified businesses of any size or ownership.
new text end

new text begin (c) The county shall establish procedures to allow firms to submit qualifications at
least every 24 months to allow placement on the list of contractors qualified to enter
into a master contract. The county is not prohibited from accepting qualifications more
frequently or on an ongoing or rolling basis.
new text end

new text begin Subd. 5. new text end

new text begin Construction services bidding. new text end

new text begin The county shall request bids for
construction services for any project using job order contracting from qualified contractors
as follows:
new text end

new text begin (1) for projects up to a maximum cost of $50,000, the county shall request a
minimum of two bids;
new text end

new text begin (2) for projects with a cost greater than $50,000, but less than or equal to $100,000,
the county shall request a minimum of three bids; and
new text end

new text begin (3) for projects with a cost greater than $100,000, but less than or equal to $250,000,
the county shall request a minimum of four bids.
new text end

new text begin Subd. 6. new text end

new text begin Qualified contractor selection. new text end

new text begin The county shall select the contractor who
submits the lowest price bid for the construction services proposed. At the discretion of
the county, any or all bids may be rejected if it is determined to be in the best interest
of the county.
new text end

new text begin Subd. 7. new text end

new text begin Reasonable distribution of bid requests among qualified contractors.
new text end

new text begin The county, in requesting bidding for projects using job order contracting as described in
this section, shall develop a system to ensure a reasonable opportunity for all qualified
contractors to periodically bid on construction services.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The authority to enter into new contracts under this section
expires on December 31, 2019.
new text end

new text begin Subd. 9. new text end

new text begin Reporting. new text end

new text begin Hennepin County must provide reports to the chairs of the
committees in the senate and the house of representatives that have jurisdiction over local
government operations, describing the uses of the authority provided in this section.
Uses of the authority described in the reports may include identifying the total number
of projects where this procurement method was used, the total number of contractors
qualified by the county, and the total annual expenditures for projects under this section.
The first report must be made by January 15, 2018, and subsequent reports must be made
on January 15 of each subsequent even-numbered year.
new text end

Sec. 11. new text begin LAKE MILLE LACS AREA ECONOMIC RELIEF PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Relief program established. new text end

new text begin Mille Lacs County must develop and
implement a Lake Mille Lacs area economic relief program to assist businesses adversely
affected by a decline in walleye fishing on Lake Mille Lacs.
new text end

new text begin Subd. 2. new text end

new text begin Available relief. new text end

new text begin (a) The economic relief program established under this
section may include grants or loans as provided in this section to the extent that funds are
available. Prior to awarding a grant to Mille Lacs County for the relief program under
this section:
new text end

new text begin (1) the county must develop criteria, procedures, and requirements for:
new text end

new text begin (i) determining eligibility for assistance;
new text end

new text begin (ii) the duration, terms, underwriting and security requirements, and repayment
requirements for loans;
new text end

new text begin (iii) evaluating applications for assistance;
new text end

new text begin (iv) awarding assistance; and
new text end

new text begin (v) administering the grant and loan program authorized under this section;
new text end

new text begin (2) the county must submit its criteria, procedures, and requirements developed
pursuant to clause (1) to the commissioner of employment and economic development
for review; and
new text end

new text begin (3) the commissioner must approve the criteria, procedures, and requirements as
developed pursuant to clause (1) to be used by the county in determining eligibility for
assistance, evaluating, awarding, and administering the grant and loan program.
new text end

new text begin (b) The relief authorized under this section includes:
new text end

new text begin (1) grants not to exceed $50,000 per business. Grants may be awarded to applicants
only when the county determines that a loan is not appropriate to address the needs of
the applicant; and
new text end

new text begin (2) loans, with or without interest, and deferred or forgivable loans. The maximum
loan amount under this subdivision is $100,000 per business. The lending criteria adopted
by the county for loans under this subdivision must:
new text end

new text begin (i) specify that an entity receiving a deferred or forgivable loan must remain in
the local community a minimum of five years after the date of the loan. The maximum
loan deferral period must not exceed five years from the date the loan is approved. The
maximum amount of a loan that may be forgiven must not exceed 50 percent of the
principle amount and may be forgiven only if the business has remained in operation in
the community for at least ten years after the loan is approved; and
new text end

new text begin (ii) require submission of a business plan for continued operation until the walleye
fishing resource recovers. The plan must document the probable success of the applicant's
business plan and probable success in repaying the loan according to the terms established
for the loan program; and
new text end

new text begin (3) tourism promotion grants to the Mille Lacs Tourism Council.
new text end

new text begin (c) All loan repayment funds under this subdivision must be paid to the commissioner
of employment and economic development for deposit in the Minnesota investment fund
disaster contingency account under Minnesota Statutes, section 116J.8731.
new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for assistance under this section, a
business must:
new text end

new text begin (1) be located within one of the following municipalities surrounding Lake Mille
Lacs:
new text end

new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township
of Roosevelt;
new text end

new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
of Malmo, or township of Lakeside; or
new text end

new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
new text end

new text begin (2) document a reduction of at least ten percent in gross receipts in any two-year
period since 2010; and
new text end

new text begin (3) be a business in one of the following industries, as defined within the
North American Industry Classification System: accommodation, restaurants, bars,
amusement and recreation, food and beverages retail, sporting goods, miscellaneous retail,
general retail, museums, historical sites, health and personal care, gas station, general
merchandise, business and professional membership, movies, or nonstore retailer, as
determined by Mille Lacs County in consultation with the commissioner of employment
and economic development.
new text end

new text begin Subd. 4. new text end

new text begin Monitoring. new text end

new text begin (a) Mille Lacs County must establish performance measures
that include, but are not limited to, the following components:
new text end

new text begin (1) the number of loans approved and the amounts and terms of the loans;
new text end

new text begin (2) the number of grants awarded, award amounts, and the reason that a grant award
was made in lieu of a loan;
new text end

new text begin (3) the loan default rate;
new text end

new text begin (4) the number of jobs created or retained as a result of the assistance, including
information on the wages and benefit levels, the status of the jobs as full-time or part-time,
and the status of the jobs as temporary or permanent;
new text end

new text begin (5) the amount of business activity and changes in gross revenues of the grant or
loan recipient as a result of the assistance; and
new text end

new text begin (6) the new tax revenue generated as a result of the assistance.
new text end

new text begin (b) The commissioner of employment and economic development must monitor
Mille Lacs County's compliance with this section and the performance measures
developed under paragraph (a).
new text end

new text begin (c) Mille Lacs County must comply with all requests made by the commissioner
under this section.
new text end

new text begin Subd. 5. new text end

new text begin Business subsidy requirements. new text end

new text begin Sections 116J.993 to 116J.995 do not
apply to assistance under this section. Businesses in receipt of assistance under this section
must provide for job creation and retention goals, and wage and benefit goals.
new text end

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

new text begin The commissioner of employment and economic
development may use up to one percent of the appropriation made for this section for
administrative expenses of the department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section, except for subdivision 4, is effective July 1,
2016, and expires June 30, 2017. Subdivision 4 is effective July 1, 2016, and expires on
the date the last loan is repaid or forgiven as provided under this section.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 116U.26, new text end new text begin is repealed.
new text end

ARTICLE 3

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2014, section 182.653, subdivision 9, is amended to read:

Subd. 9.

Standard industrial classification list.

The commissioner shall adopt,
in accordance with section 182.655, a rule specifying a list of either standard industrial
classifications of employers or North American industry classifications of employers who
must comply with subdivision 8. The commissioner shall demonstrate the need to include
each industrial classification on the basis of the safety record or workers' compensation
record of that industry segment. An employer must comply with subdivision 8 six months
following the date the standard industrial classification or North American industry
classification that applies to the employee is placed on the list. deleted text begin An employer having less
than 51 employees must comply with subdivision 8 six months following the date the
standard industrial classification or North American industry classification that applies
to the employee is placed on the list or by July 1, 1993, whichever is later. deleted text end The list shall
be updated every deleted text begin two deleted text end new text begin five new text end years.

Sec. 2. new text begin HANDS OFF CHILD CARE; REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 179A.50; 179A.51; 179A.52; and 179A.53, new text end new text begin are
repealed.
new text end

ARTICLE 4

HOUSING

Section 1.

Minnesota Statutes 2014, section 462A.204, subdivision 1, is amended to
read:

Subdivision 1.

Establishment.

The agency may establish a family homeless
prevention and assistance program to assist families who are homeless or are at imminent
risk of homelessness. The term "family" may include single individuals. The agency may
make grants to develop and implement family homeless prevention and assistance projects
under the program. For purposes of this section, "families" means families and persons
deleted text begin under the age of 22 deleted text end new text begin 24 years of age or younger new text end .

Sec. 2.

Minnesota Statutes 2014, section 462A.204, subdivision 3, is amended to read:

Subd. 3.

Set aside.

At least one grant must be awarded in an area located outside of
the metropolitan area. A county, a group of contiguous counties jointly acting together, new text begin a
tribe, a group of tribes, new text end or a community-based nonprofit organization with a sponsoring
resolution from each of the county boards of the counties located within its operating
jurisdiction may apply for and receive grants for areas located outside the metropolitan area.

ARTICLE 5

WORKERS' COMPENSATION COURT OF APPEALS PROPOSALS

Section 1.

Minnesota Statutes 2014, section 176.081, subdivision 1, is amended to read:

Subdivision 1.

Limitation of fees.

(a) A fee for legal services of 20 percent of the
first $130,000 of compensation awarded to the employee is the maximum permissible fee
and does not require approval by the commissioner, compensation judge, or any other
party. All fees, including fees for obtaining medical or rehabilitation benefits, must be
calculated according to the formula under this subdivision, except as otherwise provided
in clause (1) or (2).

(1) The contingent attorney fee for recovery of monetary benefits according to the
formula in this section is presumed to be adequate to cover recovery of medical and
rehabilitation benefit or services concurrently in dispute. Attorney fees for recovery of
medical or rehabilitation benefits or services shall be assessed against the employer or
insurer only if the attorney establishes that the contingent fee is inadequate to reasonably
compensate the attorney for representing the employee in the medical or rehabilitation
dispute. In cases where the contingent fee is inadequate the employer or insurer is liable
for attorney fees based on the formula in this subdivision or in clause (2).

For the purposes of applying the formula where the employer or insurer is liable for
attorney fees, the amount of compensation awarded for obtaining disputed medical and
rehabilitation benefits under sections 176.102, 176.135, and 176.136 shall be the dollar
value of the medical or rehabilitation benefit awarded, where ascertainable.

(2) The maximum attorney fee for obtaining a change of doctor or qualified
rehabilitation consultant, or any other disputed medical or rehabilitation benefit for which
a dollar value is not reasonably ascertainable, is the amount charged in hourly fees for the
representation or $500, whichever is less, to be paid by the employer or insurer.

(3) The fees for obtaining disputed medical or rehabilitation benefits are included
in the $26,000 limit in paragraph (b). An attorney must concurrently file all outstanding
disputed issues. An attorney is not entitled to attorney fees for representation in any
issue which could reasonably have been addressed during the pendency of other issues
for the same injury.

(b) All fees for legal services related to the same injury are cumulative and may
not exceed $26,000. If multiple injuries are the subject of a dispute, the commissioner,
compensation judge, or court of appeals shall specify the attorney fee attributable to
each injury.

(c) If the employer or the insurer or the defendant is given written notice of claims
for legal services or disbursements, the claim shall be a lien against the amount paid
or payable as compensation. Subject to the foregoing maximum amount for attorney
fees, up to 20 percent of the first $130,000 of periodic compensation awarded to the
employee may be withheld from the periodic payments for attorney fees or disbursements
if the payor of the funds clearly indicates on the check or draft issued to the employee for
payment the purpose of the withholding, the name of the attorney, the amount withheld,
and the gross amount of the compensation payment before withholding. In no case
shall fees be calculated on the basis of any undisputed portion of compensation awards.
Allowable fees under this chapter shall be based solely upon genuinely disputed claims or
portions of claims, including disputes related to the payment of rehabilitation benefits or
to other aspects of a rehabilitation plan. The existence of a dispute is dependent upon a
disagreement after the employer or insurer has had adequate time and information to take
a position on liability. Neither the holding of a hearing nor the filing of an application for a
hearing alone may determine the existence of a dispute. Except where the employee is
represented by an attorney in other litigation pending at the department or at the Office
of Administrative Hearings, a fee may not be charged after June 1, 1996, for services
with respect to a medical or rehabilitation issue arising under section 176.102, 176.135,
or 176.136 performed before the employee has consulted with the department and the
department certifies that there is a dispute and that it has tried to resolve the dispute.

(d) An attorney who is claiming legal fees for representing an employee in a workers'
compensation matter shall file a statement of attorney fees with the commissioner deleted text begin , deleted text end new text begin or
new text end compensation judge before whom the matter was heard deleted text begin , or Workers' Compensation Court
of Appeals on cases before the court deleted text end . A copy of the signed retainer agreement shall also
be filed. The employee and insurer shall receive a copy of the statement. The statement
shall be on a form prescribed by the commissioner and shall report the number of hours
spent on the case.

(e) Employers and insurers may not pay attorney fees or wages for legal services
of more than $26,000 per case.

(f) An attorney must file a statement of attorney fees within 12 months of the date
the attorney has submitted the written notice specified in paragraph (c). If the attorney
has not filed a statement of attorney fees within the 12 months, the attorney must send a
renewed notice of lien to the insurer. If 12 months have elapsed since the last notice of
lien has been received by the insurer and no statement of attorney fees has been filed, the
insurer must release the withheld money to the employee, except that before releasing the
money to the employee, the insurer must give the attorney 30 days' written notice of the
pending release. The insurer must not release the money if the attorney files a statement of
attorney fees within the 30 days.

Sec. 2.

Minnesota Statutes 2014, section 176.081, subdivision 3, is amended to read:

Subd. 3.

Review.

A party that is dissatisfied with deleted text begin its deleted text end attorney fees new text begin awarded by the
commissioner or a compensation judge new text end may file deleted text begin an application deleted text end new text begin a petition new text end for review by the
Workers' Compensation Court of Appeals. The deleted text begin application deleted text end new text begin petition new text end shall state the basis for
the need of review and whether or not a hearing is requested. A copy of the deleted text begin application deleted text end new text begin
petition new text end shall be served new text begin by the court new text end upon the deleted text begin party's deleted text end attorney deleted text begin by the court administrator
and if a hearing is requested by either party, the matter shall be set for hearing deleted text end new text begin awarded
or denied attorney fees new text end . deleted text begin The notice of hearing shall be served upon known interested
parties. deleted text end The Workers' Compensation Court of Appeals shall have the authority to raise
the issue of the attorney fees at any time upon its own motion and shall have continuing
jurisdiction over attorney fees.

Sec. 3.

Minnesota Statutes 2014, section 176.471, subdivision 3, is amended to read:

Subd. 3.

Service of writ deleted text begin and bond deleted text end ; filing fee.

To effect a review upon certiorari,
the party shall serve a writ of certiorari deleted text begin and a bond deleted text end upon the administrator of the Workers'
Compensation Court of Appeals within the 30-day period referred to in subdivision 1. The
party shall also at this time pay to the deleted text begin administrator deleted text end new text begin clerk of the appellate courts new text end the fee
prescribed by rule deleted text begin 103.01 deleted text end new text begin 116.03 new text end of the Rules of Civil Appellate Procedure deleted text begin which shall be
disposed of in the manner provided by that rule deleted text end .

Sec. 4.

Minnesota Statutes 2014, section 176.471, subdivision 5, is amended to read:

Subd. 5.

Bond.

deleted text begin The bond required by subdivision 3 shall be executed in such
amount and with such sureties as the Workers' Compensation Court of Appeals directs
and approves. The bond shall be conditioned to pay the cost of the review. deleted text end new text begin The Workers'
Compensation Court of Appeals may, upon motion of any respondent and a showing that
extraordinary circumstances warrant the requirement of a cost bond, order that a bond be
provided as prescribed by rule 107.02 of the Rules of Civil Appellate Procedure.
new text end

Sec. 5.

Minnesota Statutes 2014, section 176.511, subdivision 2, is amended to read:

Subd. 2.

Disbursements, taxation.

The commissioner or compensation judge, or
deleted text begin on appeal deleted text end the Workers' Compensation Court of Appeals new text begin on cases before the court new text end , may
award the prevailing party reimbursement for actual and necessary disbursements. deleted text begin These deleted text end
Disbursements shall be taxed upon deleted text begin five deleted text end new text begin ten new text end days' written notice to adverse parties.

Sec. 6.

Minnesota Statutes 2014, section 176.511, subdivision 3, is amended to read:

Subd. 3.

Attorney fee, allowance.

Where deleted text begin upon an appeal to the Workers'
Compensation Court of Appeals, deleted text end new text begin (1) new text end an award of compensation is affirmed, or modified
and affirmed, deleted text begin or deleted text end new text begin (2) new text end an order disallowing compensation is reversed, new text begin or (3) a petition to
vacate an award is granted, new text end the Workers' Compensation Court of Appeals may include in
its award deleted text begin as an incident to its review on appeal deleted text end an amount to cover a reasonable attorney
fee deleted text begin , deleted text end or deleted text begin it deleted text end may allow deleted text begin the deleted text end new text begin an attorney new text end fee in a proceeding to tax disbursements.

If the employer or insurer files a notice of discontinuance of an employee's benefits
and an administrative conference is held to resolve the dispute, but the employer or insurer
fails to attend the administrative conference, the commissioner or compensation judge
may order the employer or insurer to pay the employee's attorney fees as a cost under this
section if the employee's benefits are continued.

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day following final enactment.
new text end

ARTICLE 6

WORKERS' COMPENSATION DEPARTMENT PROPOSALS

Section 1.

Minnesota Statutes 2015 Supplement, section 176.135, subdivision 7a,
is amended to read:

Subd. 7a.

Electronic transactions.

(a) For purposes of this subdivision, the
following terms have the meanings given:

(1) "workers' compensation payer" means a workers' compensation insurer and an
employer, or group of employers, that is self-insured for workers' compensation;

(2) "clearinghouse" has the meaning given in section 62J.51, subdivision 11a; and

(3) "electronic transactions" means the health care administrative transactions
described in section 62J.536.

(b) In addition to the requirements of section 62J.536, workers' compensation payers
and health care providers must comply with the requirements in paragraphs (c) to (e).

(c) No later than January 1, 2016, each workers' compensation payer must place
the following information in a prominent location on its Web site or otherwise provide
the information to health care providers:

(1) the name of each clearinghouse with which the workers' compensation payer has
an agreement to exchange or transmit electronic transactions, along with the identification
number each clearinghouse has assigned to the payer in order to route electronic
transactions through intermediaries or other clearinghouses to the payer;

(2) information about how a health care provider can obtain the claim number
assigned by the workers' compensation payer for an employee's claim and how the
provider should submit the claim number in the appropriate field on the electronic bill to
the payer; and

(3) the name, phone number, and e-mail address of contact persons who can answer
questions related to electronic transactions on behalf of the workers' compensation payer
and the clearinghouses with which the payer has agreements.

(d) No later than deleted text begin July 1, 2016 deleted text end new text begin January 1, 2017 new text end :

(1) health care providers must electronically submit copies of medical records or
reports that substantiate the nature of the charge and its relationship to the work injury
using the deleted text begin most recently approved deleted text end new text begin ASC X12N 5010 new text end version of the ASC X12N 275
transaction ("Additional Information to Support Health Care Claim or Encounter"),
according to the requirements in the corresponding implementation guide. The ASC X12N
275 transaction is the only one that shall be used to electronically submit attachments
unless a national standard is adopted by federal law or rule. If a new version of the
attachment transaction is approved, it must be used one year after the approval date;

(2) workers' compensation payers and all clearinghouses receiving or transmitting
workers' compensation bills must accept attachments using the ASC X12N 275 transaction
and must respond with the deleted text begin most recently approved deleted text end new text begin ASC X12N 5010 version of the new text end ASC
X12 electronic acknowledgment for the attachment transaction. If a new version of the
acknowledgment transaction is approved, it must be used one year after the approval
date; and

(3) if a different national claims attachment or acknowledgment requirement is
adopted by federal law or rule, it will replace the ASC X12N 275 transaction, and the new
standard must be used on the date that it is required by the federal law or rule.

(e) No later than September 1, 2015, workers' compensation payers must provide
the patient's name and patient control number on or with all payments made to a provider
under this chapter, whether payment is made by check or electronic funds transfer. The
information provided on or with the payment must be sufficient to allow providers to
match the payment to specific bills. If a bulk payment is made to a provider for more than
one patient, the check or electronic funds transfer statement must also specify the amount
being paid for each patient. For purposes of this paragraph, the patient control number is
located on the electronic health care claim 837 transaction, loop 2300, segment CLM01,
and on the electronic health care claim payment/advice 835 transaction, loop 2100, CLP01.

(f) The commissioner may assess a monetary penalty of $500 for each violation of
this section, not to exceed $25,000 for identical violations during a calendar year. Before
issuing a penalty for a first violation of this section, the commissioner must provide written
notice to the noncompliant payer, clearinghouse, or provider that a penalty may be issued
if the violation is not corrected within 30 days. Penalties under this paragraph are payable
to the commissioner for deposit in the assigned risk safety account.

Sec. 2.

Minnesota Statutes 2015 Supplement, section 176.136, subdivision 1b, is
amended to read:

Subd. 1b.

Limitation of liability.

(a) The liability of the employer for treatment,
articles, and supplies provided to an employee while an inpatient or outpatient at a Critical
Access Hospital certified by the Centers for Medicare and Medicaid Services new text begin , or while an
outpatient at a hospital with 100 or fewer licensed beds, new text end shall be the hospital's usual and
customary charge, unless the charge is determined by the commissioner or a compensation
judge to be unreasonably excessive.

(b) The liability of the employer for the treatment, articles, and supplies that are not
limited by paragraph (a), subdivision 1a, 1c, or section 176.1362 shall be limited to 85
percent of the provider's usual and customary charge, or 85 percent of the prevailing
charges for similar treatment, articles, and supplies furnished to an injured person when
paid for by the injured person, whichever is lower. On this basis, the commissioner or
compensation judge may determine the reasonable value of all treatment, services, and
supplies, and the liability of the employer is limited to that amount. The commissioner
may by rule establish the reasonable value of a service, article, or supply in lieu of the
85 percent limitation in this paragraph. A prevailing charge established under Minnesota
Rules, part 5221.0500, subpart 2, must be based on no more than two years of billing data
immediately preceding the date of the service.

(c) The limitation of liability for charges provided by paragraph (b) does not apply
to a nursing home that participates in the medical assistance program and whose rates are
established by the commissioner of human services.

(d) An employer's liability for treatment, articles, and supplies provided under this
chapter by a health care provider located outside of Minnesota is limited to the payment that
the health care provider would receive if the treatment, article, or supply were paid under
the workers' compensation law of the jurisdiction in which the treatment was provided.

Sec. 3.

Minnesota Statutes 2014, section 176.571, subdivision 1, is amended to read:

Subdivision 1.

Preliminary investigation.

When the head of a department has filed
a report or the commissioner of administration has otherwise received information of
the occurrence of an injury to a state employee for which liability to pay compensation
may exist, the commissioner of administration shall make a preliminary investigation to
determine the question of probable liability.

In making this investigation, the commissioner of administration may require the
assistance of the head of any department or any employee of the state. The commissioner
of deleted text begin management and budget deleted text end new text begin administration new text end may require that all facts be furnished which
appear in the records of any state department bearing on the issue.

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following enactment.
new text end

ARTICLE 7

WORKERS' COMPENSATION LITIGATION-RELATED PROPOSALS

Section 1.

Minnesota Statutes 2014, section 176.011, subdivision 7a, is amended to read:

Subd. 7a.

deleted text begin (1) deleted text end Compensation judge. "Compensation judge" means a workers'
compensation judge at the Office of Administrative Hearings.

deleted text begin (2) Calendar judge. "Calendar judge" means a workers' compensation judge at the
Office of Administrative Hearings.
deleted text end

deleted text begin (3) Compensation judge. "Compensation judge" means a compensation judge at
the Department of Labor and Industry. deleted text end Compensation judges may conduct settlement
conferences, issue summary decisions, approve settlements and issue awards thereon,
determine petitions for attorney fees and costs, and make other determinations,
decisions, orders, and awards as may be delegated to them by new text begin law or new text end the commissioner.
Compensation judges must be learned in the law.

Sec. 2.

Minnesota Statutes 2014, section 176.137, subdivision 1, is amended to read:

Subdivision 1.

Requirement; determination.

The employer shall furnish to an
employee who is permanently disabled because of a personal injury suffered in the course
of employment with that employer such alteration or remodeling of the employee's
principal residence as is reasonably required to enable the employee to move freely into
and throughout the residence and to otherwise adequately accommodate the disability.
Any remodeling or alteration shall be furnished only when the division deleted text begin or Workers'
Compensation Court of Appeals deleted text end determines that the injury is to such a degree that the
employee is substantially prevented from functioning within the principal residence.

Sec. 3.

Minnesota Statutes 2014, section 176.137, subdivision 4, is amended to read:

Subd. 4.

Certification required; exceptions.

(a) Except as provided in paragraph
(b), no award may be made except upon the certification of a licensed architect to the
division deleted text begin or Workers' Compensation Court of Appeals deleted text end that the proposed alteration or
remodeling of an existing residence or the building or purchase of a new or different
residence is reasonably required for the purposes specified in subdivision 1. The Council on
Disability shall advise the division deleted text begin or Workers' Compensation Court of Appeals deleted text end as provided
in section 256.482, subdivision 5, clause (7). The alteration or remodeling of an existing
residence, or the building or purchase of a new home must be done under the supervision
of a licensed architect relative to the specific needs to accommodate the disability.

(b) Remodeling or alteration projects do not require an architect's certification and
supervision if the project is:

(1) approved by the Council on Disability;

(2) performed by a residential building contractor or residential remodeler licensed
under section 326B.805, subdivision 1; and

(3) approved by a certified building official or certified accessibility specialist under
section 326B.133, subdivision 3a, paragraphs (b) and (d), who states in writing that the
proposed remodeling or alterations are reasonably required to enable the employee to move
freely into and throughout the residence and to otherwise accommodate the disability.

Sec. 4.

Minnesota Statutes 2014, section 176.137, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Disputes. new text end

new text begin A proceeding to resolve a dispute under this section shall be
initiated by petition under sections 176.271 and 176.291 and decided by a compensation
judge at the office under section 176.305, 176.322, or 176.341. The decision of the
compensation judge is appealable to the Workers' Compensation Court of Appeals under
section 176.421.
new text end

Sec. 5.

Minnesota Statutes 2014, section 176.331, is amended to read:

176.331 PROCEEDINGS WHEN ANSWER NOT FILED.

Except in cases involving multiple employers or multiple insurers, if an adverse
party fails to file and serve an answer or obtain an extension from the commissioner or the
petitioner as required by section 176.321, subdivision 3, the commissioner shall refer the
matter to the chief administrative law judge for an immediate hearing and prompt award
or other order. The adverse party that failed to file an answer may appear at the hearing,
present evidence and question witnesses, but shall not be granted a continuance deleted text begin for any
reason deleted text end new text begin except upon a showing of good cause new text end .

If an adverse party who fails to serve and file an answer is neither insured for
workers' compensation liability nor a licensed self-insured as required by section 176.181
and the special compensation fund is a party to the proceeding, the commissioner or
compensation judge may enter an order awarding benefits to the petitioning party without
a hearing if so requested by the special compensation fund.

Sec. 6.

Minnesota Statutes 2014, section 176.361, subdivision 1, is amended to read:

Subdivision 1.

Right to intervene.

A person who has an interest in any matter
before the Workers' Compensation Court of Appeals, or commissioner, or compensation
judge such that the person may either gain or lose by an order or decision may intervene in
the proceeding by filing deleted text begin an application or deleted text end new text begin a new text end motion in writing stating the facts which show
the interest. The commissioner is considered to have an interest and shall be permitted
to intervene at the appellate level when a party relies in its claim or defense upon any
statute or rule administered by the commissioner, or upon any rule, order, requirement, or
agreement issued or made under the statute or rule.

The commissioner may adopt rules, not inconsistent with this section to govern
intervention. The Workers' Compensation Court of Appeals shall adopt rules to govern the
procedure for intervention in matters before it.

If the Department of Human Services or the Department of Employment and
Economic Development seeks to intervene in any matter before the division, a
compensation judge or the Workers' Compensation Court of Appeals, a nonattorney
employee of the department, acting at the direction of the staff of the attorney general,
may prepare, sign, serve and file motions for intervention and related documents, deleted text begin appear
at deleted text end new text begin attend new text end prehearing conferences, and participate in matters before a compensation judge
or the Workers' Compensation Court of Appeals. Any other interested party may intervene
using a nonattorney and may participate in any proceeding to the same extent an attorney
could. This activity shall not be considered to be the unauthorized practice of law. An
intervenor represented by a nonattorney shall be deemed to be represented by an attorney
for the purposes of the conclusive presumption of section 176.521, subdivision 2.

Subdivisions 3 to 6 do not apply to deleted text begin matters pending in the mediation or rehabilitation
and medical services sections deleted text end new text begin the following proceedings conducted by the Department
of Labor and Industry or the office: mediation proceedings; discontinuance conferences
under section 176.239; or administrative conferences under section 176.106 new text end .

Sec. 7.

Minnesota Statutes 2014, section 176.361, subdivision 2, is amended to read:

Subd. 2.

Written deleted text begin application or deleted text end motion.

A person desiring to intervene in a
workers' compensation case as a party, including but not limited to a health care provider
who has rendered services to an employee or an insurer who has paid benefits under
section 176.191, shall submit a timely written deleted text begin application or deleted text end motion to intervene to the
commissioner, the office, or to the court of appeals, whichever is applicable.

(a) The deleted text begin application or deleted text end motion must be served on all parties new text begin , except for other
intervenors, new text end either personally, by first class mail, or new text begin by new text end registered mail, return receipt
requested. deleted text begin An application or deleted text end new text begin A new text end motion to intervene must be served and filed within 60
days after a potential intervenor has been served with notice of a right to intervene or
within 30 days of notice of an administrative conference. Upon the filing of a timely
deleted text begin application or deleted text end motion to intervene, the potential intervenor shall be granted intervenor
status without the need for an order. Objections to the intervention may be subsequently
addressed by a compensation judge. Where a motion to intervene is not timely filed
under this section, the potential intervenor interest shall be extinguished and the potential
intervenor may not collect, or attempt to collect, the extinguished interest from the
employee, employer, insurer, or any government program.

(b) The deleted text begin application or deleted text end motion must show how the applicant's legal rights, duties, or
privileges may be determined or affected by the case; state the grounds and purposes for
which intervention is sought; and indicate the statutory right to intervene. The deleted text begin application
or deleted text end motion must be accompanied by the following:

(1) an itemization of disability payments showing the period during which the
payments were or are being made; the weekly or monthly rate of the payments; and the
amount of reimbursement claimed;

(2) a summary of the medical or treatment payments, or rehabilitation services
provided by the Vocational Rehabilitation Unit, broken down by creditor, showing the
total bill submitted, the period of treatment or rehabilitation covered by that bill, the
amount of payment on that bill, and to whom the payment was made;

(3) copies of all medical or treatment bills deleted text begin on which some deleted text end new text begin for which new text end payment deleted text begin was
made deleted text end new text begin is sought new text end ;

(4) copies of the work sheets or other information stating how the payments on
medical or treatment bills were calculated;

(5) a copy of the relevant policy or contract provisions upon which the claim for
reimbursement is based;

(6) the name and telephone number of the person representing the intervenor who
has authority to new text begin represent the intervenor, including but not limited to the authority to
new text end reach a settlement of the issues in dispute;

(7) proof of service or copy of the registered mail receipt new text begin evidencing service on all
parties except for other intervenors new text end ;

(8) at the option of the intervenor, a proposed stipulation which states that all of the
payments for which reimbursement is claimed are related to the injury or condition in
dispute in the case and that, if the petitioner is successful in proving the compensability of
the claim, it is agreed that the sum be reimbursed to the intervenor; and

(9) if represented by an attorney, the name, address, telephone number, and
Minnesota Supreme Court license number of the attorney.

Sec. 8.

Minnesota Statutes 2014, section 176.361, subdivision 3, is amended to read:

Subd. 3.

Stipulation.

If the person submitting the deleted text begin application or deleted text end motion deleted text begin for
intervention deleted text end new text begin to intervene new text end has included a proposed stipulation, all parties shall either
execute and return the signed stipulation to the intervenor who must file it with the
division or judge or serve upon the intervenor and all other parties and file with the
division specific and detailed objections to any payments made by the intervenor which
are not conceded to be correct and related to the injury or condition the petitioner has
asserted is compensable. If a party has not returned the signed stipulation or filed new text begin specific
and detailed new text end objections within 30 days of service of the deleted text begin application or deleted text end motion new text begin to intervene new text end ,
the intervenor's right to reimbursement for the amount sought is deemed established
provided that the petitioner's claim is determined to be compensable. new text begin The office may
establish procedures for filing objections if a timely motion to intervene is filed less than
30 days before a scheduled hearing.
new text end

Sec. 9.

Minnesota Statutes 2014, section 176.361, subdivision 4, is amended to read:

Subd. 4.

Attendance by intervenor.

deleted text begin Unless a stipulation has been signed and filed or
the intervenor's right to reimbursement has otherwise been established, the intervenor shall
attend all settlement or pretrial conferences, administrative conferences, and the hearing.
Failure deleted text end new text begin A person who has submitted a timely written motion to intervene, as required by
subdivision 2, is not required to attend settlement or pretrial conferences or the hearing,
unless attendance is ordered by the compensation judge assigned to the case, pursuant to a
motion to require the intervenor's attendance filed by a party or as a matter of the judge's
discretion. A motion to require attendance must be served and filed at least 20 days before
a scheduled hearing, and the compensation judge must serve and file an order granting or
denying the motion at least ten days before a scheduled hearing. If attendance is ordered,
failure of the intervenor new text end to deleted text begin appear deleted text end new text begin attend a proceeding either in person or, if approved by
the compensation judge, by telephone or some other electronic medium, new text end shall result in the
denial of the claim for reimbursement deleted text begin . deleted text end new text begin except upon a showing of good cause. If attendance
has not been ordered, this subdivision does not prohibit an intervenor from attending a
conference or hearing in person, or from requesting permission from the compensation
judge to attend a conference or hearing by telephone or other electronic medium.
new text end

Sec. 10.

Minnesota Statutes 2014, section 176.361, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Order deleted text end new text begin Objections new text end .

If deleted text begin an deleted text end new text begin a specific and detailed new text end objection to intervention
remains following settlement or pretrial conferences, the issue shall be addressed at the
hearing. new text begin If the intervenor has not been ordered to attend the hearing pursuant to subdivision
4, or has received permission to attend the hearing by telephone or other electronic
medium, the intervenor may provide a written response to the objection before the hearing
according to subdivision 6 for consideration as a matter of discretion by the judge.
new text end

Sec. 11.

Minnesota Statutes 2014, section 176.361, subdivision 6, is amended to read:

Subd. 6.

Presentation of evidence by intervenor.

Unless a stipulation has been
signed and filed or the intervenor's right to reimbursement has otherwise been established,
the intervenor shall present evidence in support of the claim at new text begin or before new text end the hearing deleted text begin unless
otherwise ordered by the compensation judge deleted text end . new text begin When the intervenor has not been ordered
to attend the hearing pursuant to subdivision 4, or has received permission to attend the
hearing by telephone or other electronic medium, the office may establish a procedure
for submission of the intervenor's evidence and response to outstanding objections to
intervention. If the intervenor does not submit a written response to the objection before
the hearing, the compensation judge's determination on the objection must be based on
the information and evidence submitted prior to or at the hearing, as a matter of judicial
discretion.
new text end

Sec. 12.

Minnesota Statutes 2014, section 176.361, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Chief administrative law judge orders. new text end

new text begin The chief administrative law
judge may issue standing orders to implement this section. The chief administrative law
judge has the authority to issue standing orders instead of, or in addition to, the authority
granted to the office or compensation judges under this section, provided that any standing
order issued by the chief administrative law judge must be consistent with this section.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective August 1, 2016.
new text end

ARTICLE 8

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

Section 1.

Minnesota Statutes 2014, section 268.051, subdivision 5, is amended to read:

Subd. 5.

Tax rate for new employers.

deleted text begin (a) Each new taxpaying employer that does
not qualify for an experience rating under subdivision 3, except new employers in a high
experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
the total amount of unemployment benefits paid all applicants during the 48 calendar
months ending on June 30 of the prior calendar year by the total taxable wages of all
taxpaying employers during the same period, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
deleted text end

deleted text begin (b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
paid to all applicants from high experience rating industry employers during the 48
calendar months ending on June 30 of the prior calendar year by the total taxable wages
of all high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
deleted text end

deleted text begin (c) An employer is considered to be in a high experience rating industry if:
deleted text end

deleted text begin (1) the employer is engaged in residential, commercial, or industrial construction,
including general contractors;
deleted text end

deleted text begin (2) the employer is engaged in sand, gravel, or limestone mining;
deleted text end

deleted text begin (3) the employer is engaged in the manufacturing of concrete, concrete products,
or asphalt; or
deleted text end

deleted text begin (4) the employer is engaged in road building, repair, or resurfacing, including bridge
and tunnels and residential and commercial driveways and parking lots.
deleted text end

new text begin (a) Each new taxpaying employer that does not qualify for an experience rating
under subdivision 3 must be assigned, for the calendar year, a tax rate equal to the average
experience rating for the employer's industry, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c). The tax rate assigned may not
be less than one percent.
new text end

new text begin (b) The employer's industry, except for construction, is determined by the first two
digits of the North American Industrial Classification System (NAICS). The construction
industry is determined to five digits. For each calendar year, the commissioner must
compute, in accordance with subdivision 3, the average industry experience rating for
the employer's industry.
new text end

deleted text begin (d) deleted text end new text begin (c) new text end Regardless of any law to the contrary, a taxpaying employer must be
assigned a tax rate under this subdivision if the employer had no taxable wages during the
experience rating period under subdivision 3.

deleted text begin (e) deleted text end new text begin (d) new text end The commissioner must send to the new employer, by mail or electronic
transmission, a determination of tax rate. An employer may appeal the determination of
tax rate in accordance with deleted text begin the procedures in deleted text end subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, and applies to tax
rates assigned for the calendar year 2018 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 268.07, subdivision 3b, is
amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating deleted text begin at deleted text end new text begin within seven calendar days of new text end the deleted text begin time deleted text end new text begin date new text end the application is filed. An
application may be backdated only if the applicant was unemployed during the period of
the backdating. If an individual attempted to file an application for unemployment benefits,
but was prevented from filing an application by the department, the application is effective
the Sunday of the calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit
account; and

(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday
following the expiration of the benefit year on a prior benefit account. Except as allowed
under paragraph (c), an applicant may establish only one benefit account each 52 calendar
weeks. This paragraph applies to benefit accounts established under any federal law or
the law of any other state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to
applications for unemployment benefits filed after that date.
new text end

Sec. 3.

Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:

Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the
employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment
that provided deleted text begin substantially deleted text end new text begin equal or new text end better terms and conditions of employment, but
the applicant did not work long enough at the second employment to have sufficient
subsequent deleted text begin earnings deleted text end new text begin wages paid new text end to satisfy the period of ineligibility that would otherwise
be imposed under subdivision 10 for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment deleted text begin because deleted text end new text begin and new text end the employment was unsuitable deleted text begin for the applicant deleted text end ;

(4) the employment was unsuitable deleted text begin for the applicant deleted text end and the applicant quit to enter
reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment
in the base period, from which full-time employment the applicant separated because of
reasons for which the applicant deleted text begin was held deleted text end new text begin is new text end not deleted text begin to be deleted text end ineligible, and the wage credits from
the full-time employment are sufficient to meet the minimum requirements to establish a
benefit account under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant
was going to be laid off because of lack of work within 30 calendar days. An applicant
who quit employment within 30 calendar days of a notified date of layoff because of lack
of work is ineligible for unemployment benefits through the end of the week that includes
the scheduled date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or
injury made it medically necessary that the applicant quit; or (ii) in order to provide
necessary care because of the illness, injury, or disability of an immediate family member
of the applicant. This exception only applies if the applicant informs the employer of
the medical problem and requests accommodation and no reasonable accommodation
is made available.

If the applicant's serious illness is chemical dependency, this exception does not
apply if the applicant was previously diagnosed as chemically dependent or had treatment
for chemical dependency, and since that diagnosis or treatment has failed to make
consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the
applicant to quit the employment, provided the applicant made reasonable effort to obtain
other child care and requested time off or other accommodation from the employer and no
reasonable accommodation is available.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the
applicant or an immediate family member of the applicant, necessitated the applicant's
quitting the employment.

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections
609.342 to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

(10) the applicant quit in order to relocate to accompany a spouse new text begin : new text end

new text begin (1) who is in the military; or
new text end

new text begin (2) new text end whose job new text begin was transferred by the spouse's employer to a new new text end location deleted text begin changed deleted text end
making it impractical for the applicant to commute.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination or a decision by an unemployment law judge.
new text end

Sec. 4.

Minnesota Statutes 2014, section 268.101, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) The commissioner must determine any issue of
ineligibility raised by information required from an applicant under subdivision 1,
paragraph (a) or (c), and send to the applicant and any involved employer, by mail or
electronic transmission, a document titled a determination of eligibility or a determination
of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result
of a quit or a discharge of the applicant must state the effect on the employer under section
268.047. A determination must be made in accordance with this paragraph even if a
notified employer has not raised the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an
employer and send to the applicant and that employer, by mail or electronic transmission,
a document titled a determination of eligibility or a determination of ineligibility as is
appropriate. The determination on an issue of ineligibility as a result of a quit or discharge
of the applicant must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for
unemployment benefits;

(2) did not employ the applicant during the six calendar months before the
application for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the
applicant within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant
should be determined ineligible for unemployment benefits for that communication to be
considered to have raised an issue of ineligibility for purposes of this section. A statement
of "protest" or a similar term without more information does not constitute raising an issue
of ineligibility for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon
that information required of an applicant, any information that may be obtained from an
applicant or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not
required to send to an applicant a copy of the determination where the applicant has
satisfied a period of ineligibility because of a quit or a discharge under section 268.095,
subdivision 10.

(e) The commissioner may issue a determination on an issue of ineligibility deleted text begin at any
time deleted text end within 24 months from the establishment of a benefit account based upon information
from any source, even if the issue of ineligibility was not raised by the applicant or an
employer. deleted text begin This paragraph does not prevent the imposition of a penalty on
deleted text end

new text begin If new text end an applicant new text begin obtained unemployment benefits through fraud new text end under section 268.18,
subdivision 2, deleted text begin or 268.182 deleted text end new text begin a determination of ineligibility may be issued within 48 months
of the establishment of the benefit account new text end .

(f) A determination of eligibility or determination of ineligibility is final unless an
appeal is filed by the applicant or deleted text begin notified deleted text end employer within 20 calendar days after sending.
The determination must contain a prominent statement indicating the consequences of not
appealing. Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes
any question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

deleted text begin (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
the employer will be (1) sent a copy of the determination of eligibility or a determination
of ineligibility, or (2) considered an involved employer for purposes of an appeal under
section 268.105, only if the employer raised the issue of ineligibility.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination.
new text end

Sec. 5.

Minnesota Statutes 2014, section 268.182, subdivision 2, is amended to read:

Subd. 2.

Administrative penalties.

new text begin (a) new text end Any applicant who knowingly makes a false
statement or representation, who knowingly fails to disclose a material fact, or who makes
a false statement or representation without a good faith belief as to the correctness of the
statement or representation, in order to obtain or in an attempt to obtain unemployment
benefits may be assessed, in addition to any other penalties, an administrative penalty of
being ineligible for unemployment benefits for 13 to 104 weeks.

new text begin (b) new text end A determination of ineligibility setting out the weeks the applicant is ineligible
must be sent to the applicant by mail or electronic transmission. new text begin A determination of
ineligibility under this subdivision may be issued within 48 months of the establishment of
the benefit account upon which the unemployment benefits were obtained or attempted to
be obtained. new text end Unless an appeal is filed within 20 calendar days of sending, the determination
is final. Proceedings on the appeal are conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination.
new text end

ARTICLE 9

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

Section 1.

Minnesota Statutes 2014, section 268.035, subdivision 12, is amended to read:

Subd. 12.

Covered employment.

(a) "Covered employment" means the following
unless excluded as "noncovered employment" under subdivision 20:

(1) an employee's entire employment during the calendar quarter if:

(i) the employment during the quarter is performed primarily in Minnesota;

(ii) the employment during the quarter is not performed primarily in Minnesota or
any other state but some of the employment is performed in Minnesota and the base
of operations or the place from which the employment is directed or controlled is in
Minnesota; or

(iii) the employment during the quarter is not performed primarily in Minnesota
or any other state and the base of operations or place from which the employment is
directed or controlled is not in any state where part of the employment is performed, but
the employee's residence is in Minnesota;

(2) an employee's entire employment during the calendar quarter performed within
the United States or Canada, if:

(i) the employment is not deleted text begin considered deleted text end covered employment under the unemployment
insurance program of any other state, federal law, or the law of Canada; and

(ii) the place from which the employment is directed or controlled is in Minnesota;

(3) the employment during the calendar quarter, performed entirely outside deleted text begin of deleted text end the
United States and Canada, by an employee who is a United States citizen in the employ of
an American employer if the employer's principal place of business in the United States is
located in Minnesota. An "American employer," for the purposes of this clause, means a
corporation organized under the laws of any state, an individual who is a resident of the
United States, or a partnership if two-thirds or more of the partners are residents of the
United States, or a trust, if all of the trustees are residents of the United States; and

(4) all employment during the calendar quarter performed by an officer or member
of the crew of an American vessel on or in connection with the vessel, if the operating
office from which the operations of the vessel operating on navigable waters within, or
within and without, the United States are ordinarily and regularly supervised, managed,
directed, and controlled is in Minnesota.

(b) "Covered employment" includes covered agricultural employment under
subdivision 11.

(c) For the purposes of deleted text begin satisfying the period of ineligibility under deleted text end section 268.095,
deleted text begin subdivision 10, deleted text end "covered employment" includes deleted text begin covered deleted text end employment new text begin covered new text end under an
unemployment insurance program:

(1) of any other state; or

(2) established by an act of Congress.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all
matters pending a determination or a decision by an unemployment law judge
new text end

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 29, is amended to read:

Subd. 29.

Wages.

(a) "Wages" means all compensation for employment, including
commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and
holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by
a customer of an employer and accounted for by the employee to the employer; sickness
and accident disability payments, except as otherwise provided in this subdivision; and
the cash value of housing, utilities, meals, exchanges of services, and any other goods
and services provided to compensate an employee, except:

(1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or
classes of employees, including any amount paid by an employer for insurance or annuities,
or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or (iii) death;

(2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;

(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
to a trust described in United States Code, title 26, section 401(a) of the federal Internal
Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
unless the payment is made to an employee of the trust as compensation for services as an
employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
the time of the payment, is a plan described in section 403(a);

(4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;

(5) customary and reasonable directors' fees paid to individuals who are not
otherwise employed by the corporation of which they are directors;

(6) the payment to employees for reimbursement of meal expenses when employees
are required to perform work after their regular hours;

(7) the payment into a trust or plan for purposes of providing legal or dental services
if provided for all employees generally or for a class or classes of employees;

(8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;

(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
or other right;

(10) advances or reimbursements for traveling or other bona fide ordinary and
necessary expenses incurred or reasonably expected to be incurred in the business of the
employer. Traveling and other reimbursed expenses must be identified either by making
separate payments or by specifically indicating the separate amounts where both wages
and expense allowances are combined in a single payment;

(11) residual payments to radio, television, and similar artists that accrue after
the production of television commercials, musical jingles, spot announcements, radio
transcriptions, film sound tracks, and similar activities;

(12) the income to a former employee resulting from the exercise of a nonqualified
stock option;

(13) deleted text begin payments made to supplement deleted text end new text begin supplemental new text end unemployment deleted text begin benefits deleted text end new text begin benefit
payments new text end under a plan established by an employer, deleted text begin that makes provisions for employees
generally or for a class or classes of employees under the written terms of an agreement,
contract, trust arrangement, or other instrument deleted text end new text begin if the payment is not wages under the
Federal Unemployment Tax Act new text end . The deleted text begin plan must provide supplemental deleted text end payments new text begin are
wages unless made new text end solely for the supplementing of weekly state or federal unemployment
benefits. deleted text begin The plan must provide supplemental payments only for those weeks the applicant
has been paid regular, extended, or additional unemployment benefits. The supplemental
payments, when combined with the applicant's weekly unemployment benefits paid, may
not exceed the applicant's regular weekly pay. The plan must not allow the assignment
of deleted text end Supplemental new text begin unemployment benefit new text end payments deleted text begin or provide for any type of additional
payment. The plan must not require deleted text end new text begin may not be assigned, nor may new text end any consideration new text begin be
required new text end from the applicant, other than a release of claims deleted text begin , and must not be designed for
the purpose of avoiding the payment of Social Security obligations, or unemployment
taxes on money disbursed from the plan deleted text end new text begin in order to be excluded from wages new text end ;

(14) sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the individual
worked for the employer;

(15) disability payments made under the provisions of any workers' compensation
law;

(16) sickness or accident disability payments made by a third-party payer such as
an insurance company; or

(17) payments made into a trust fund, or for the purchase of insurance or an annuity,
to provide for sickness or accident disability payments to employees under a plan or
system established by the employer that provides for the employer's employees generally
or for a class or classes of employees.

(b) Nothing in this subdivision excludes from the term "wages" any payment
made under any type of salary reduction agreement, including payments made under a
cash or deferred arrangement and cafeteria plan, as defined in United States Code, title
26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the
employee has the option to receive the payment in cash.

(c) Wages includes the total payment to the operator and supplier of a vehicle or
other equipment where the payment combines compensation for personal services as well
as compensation for the cost of operating and hiring the equipment in a single payment.
This paragraph does not apply if:

(1) there is a preexisting written agreement providing for allocation of specific
amounts; or

(2) at the time of each payment there is a written deleted text begin acknowledgement deleted text end new text begin acknowledgment
new text end indicating the separate allocated amounts.

(d) Wages includes payments made for services as a caretaker. Unless there is a
contract or other proof to the contrary, compensation is considered as being equally
received by a married couple where the employer makes payment to only one spouse, or
by all tenants of a household who perform services where two or more individuals share
the same dwelling and the employer makes payment to only one individual.

(e) Wages includes payments made for services by a migrant family. Where services
are performed by a married couple or a family and an employer makes payment to only
one individual, each worker is considered as having received an equal share of the
compensation unless there is a contract or other proof to the contrary.

(f) Wages includes advances or draws against future earnings, when paid, unless
the payments are designated as a loan or return of capital on the books of the employer
at the time of payment.

(g) Wages includes payments made by a subchapter "S" corporation, as organized
under the Internal Revenue Code, to or on behalf of officers and shareholders that are
reasonable compensation for services performed for the corporation.

For a subchapter "S" corporation, wages does not include:

(1) a loan for business purposes to an officer or shareholder evidenced by a
promissory note signed by an officer before the payment of the loan proceeds and recorded
on the books and records of the corporation as a loan to an officer or shareholder;

(2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;

(3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of
the corporation as corporate expenses; and

(4) a reasonable lease or rental payment to an officer who owns property that is
leased or rented to the corporation.

Sec. 3.

Minnesota Statutes 2015 Supplement, section 268.085, subdivision 2, is
amended to read:

Subd. 2.

Not eligible.

An applicant is ineligible for unemployment benefits for
any week:

(1) that occurs before the effective date of a benefit account;

(2) that the applicant, at deleted text begin the beginning of deleted text end new text begin any time during new text end the week, has an
outstanding fraud overpayment balance under section 268.18, subdivision 2, including
any penalties and interest;

(3) that occurs in a period when the applicant is a student in attendance at, or on
vacation from a secondary school including the period between academic years or terms;

(4) that the applicant is incarcerated or performing court-ordered community service.
The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
the applicant is incarcerated or performing court-ordered community service;

(5) that the applicant fails or refuses to provide information on an issue of
ineligibility required under section 268.101;

(6) that the applicant is performing services 32 hours or more, in employment,
covered employment, noncovered employment, volunteer work, or self-employment
regardless of the amount of any earnings; or

(7) with respect to which the applicant has filed an application for unemployment
benefits under any federal law or the law of any other state. If the appropriate agency
finally determines that the applicant is not entitled to establish a benefit account under
federal law or the law of any other state, this clause does not apply.

Sec. 4.

Minnesota Statutes 2014, section 268.0865, subdivision 3, is amended to read:

Subd. 3.

Continued request for unemployment benefits by electronic
transmission.

(a) A continued request for unemployment benefits by electronic
transmission must be filed to that electronic mail address, telephone number, or Internet
address prescribed by the commissioner for that applicant. In order to constitute a
continued request, all information asked for, including information authenticating that the
applicant is sending the transmission, must be provided in the format required. If all of the
information asked for is not provided, the communication does not constitute a continued
request for unemployment benefits.

(b) The new text begin continued request by new text end electronic transmission deleted text begin communication deleted text end must be filed
new text begin within four calendar weeks following the week for which payment is requested new text end on the
deleted text begin date deleted text end new text begin day of the week new text end and during the time of day designated for the applicant deleted text begin for filing a
continued request by electronic transmission deleted text end .

(c) deleted text begin If the electronic transmission continued request is not filed as required under
paragraph (b), a continued request by electronic transmission must be accepted if the
applicant files the continued request by electronic transmission within three calendar
weeks following the week for which payment is requested. deleted text end If the continued request by
electronic transmission is not filed within deleted text begin three deleted text end new text begin four new text end calendar weeks following the week
for which payment is requested, the electronic continued request will not be accepted
and the applicant is ineligible for unemployment benefits for the period covered by the
continued request, unless the applicant shows good cause for failing to file the continued
request by electronic transmission within the time period required.

Sec. 5.

Minnesota Statutes 2014, section 268.0865, subdivision 4, is amended to read:

Subd. 4.

Continued request for unemployment benefits by mail.

(a) A
continued request for unemployment benefits by mail must be on a form prescribed by
the commissioner. The form, in order to constitute a continued request, must be totally
completed and signed by the applicant. The form must be filed by mail, in an envelope
with postage prepaid, and sent to the address designated deleted text begin during the week following the
week for which payment is requested.
deleted text end

deleted text begin (b) If the mail continued request for unemployment benefits is not filed as required
under paragraph (a), a continued request must be accepted if the form is filed by mail
deleted text end within deleted text begin three deleted text end new text begin four new text end calendar weeks following the week for which payment is requested.

new text begin (b) new text end If the new text begin continued request new text end form is not filed within deleted text begin three deleted text end new text begin four new text end calendar weeks
following the week for which payment is requested, the form will not be accepted and the
applicant is ineligible for unemployment benefits deleted text begin for the period covered by the continued
request for unemployment benefits, deleted text end unless the applicant shows good cause for failing to
file the form by mail within the time period required.

(c) If the applicant has been designated to file a continued request for unemployment
benefits by mail, an applicant may submit the form by facsimile transmission within
deleted text begin three deleted text end new text begin four new text end calendar weeks following the week for which payment is requested. A form
submitted by facsimile transmission must be sent only to the telephone number assigned
for that purpose.

(d) An applicant who has been designated to file a continued request by mail may
personally deliver a continued request form only to the location to which the form was
otherwise designated to be mailed.

Sec. 6.

Minnesota Statutes 2014, section 268.095, subdivision 2, is amended to read:

Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.

new text begin (b) When determining if an applicant quit, the theory of a constructive quit does
not apply.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An employee who has been notified that the employee will be discharged in
the future, who chooses to end the employment while employment in any capacity is still
available, deleted text begin is considered to have deleted text end new text begin has new text end quit the employment.

deleted text begin (c) deleted text end new text begin (d) new text end An employee who seeks to withdraw a previously submitted notice of quitting
deleted text begin is considered to have deleted text end new text begin has new text end quit the employment, as of the intended date of quitting, if the
employer does not agree that the notice may be withdrawn.

deleted text begin (d) deleted text end new text begin (e) new text end An applicant deleted text begin who deleted text end new text begin has quit employment with a staffing service if new text end , within
five calendar days after completion of a suitable job assignment from a staffing service new text begin ,
the applicant:
new text end

(1) fails without good cause to affirmatively request an additional suitable job
assignment deleted text begin , deleted text end new text begin ;
new text end

(2) refuses without good cause an additional suitable job assignment offered deleted text begin , deleted text end new text begin ; new text end or

(3) accepts employment with the client of the staffing service deleted text begin , is considered to have
quit employment with the staffing service deleted text end . Accepting employment with the client of the
staffing service meets the requirements of the exception to ineligibility under subdivision
1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the
staffing service, the applicant signed and was provided a copy of a separate document
written in clear and concise language that informed the applicant of this paragraph and
that unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that deleted text begin is significant and deleted text end would
compel an average, reasonable worker, who would otherwise want an additional suitable
job assignment with the staffing service (1) to fail to contact the staffing service, or (2)
to refuse an offered assignment.

Sec. 7.

Minnesota Statutes 2014, section 268.095, subdivision 5, is amended to read:

Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any
words or actions by an employer would lead a reasonable employee to believe that the
employer will no longer allow the employee to work for the employer in any capacity. A
layoff because of lack of work is deleted text begin considered deleted text end a discharge. A suspension from employment
without pay of more than 30 calendar days is deleted text begin considered deleted text end a discharge.

new text begin (b) When determining if an applicant was discharged, the theory of a constructive
discharge does not apply.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An employee who gives notice of intention to quit the employment and is not
allowed by the employer to work the entire notice period is deleted text begin considered deleted text end discharged from
the employment as of the date the employer will no longer allow the employee to work. If
the discharge occurs within 30 calendar days before the intended date of quitting, then,
as of the intended date of quitting, the separation from employment is deleted text begin considered deleted text end a quit
from employment subject to subdivision 1.

deleted text begin (c) deleted text end new text begin (d) new text end The end of a job assignment with the client of a staffing service is deleted text begin considered
deleted text end a discharge from employment with the staffing service unless subdivision 2, paragraph
(d), applies.

Sec. 8.

Minnesota Statutes 2014, section 268.18, is amended to read:

268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.

Subdivision 1.

deleted text begin Nonfraud deleted text end new text begin Repaying an new text end overpayment.

(a) Any applicant who (1)
because of a determination or amended determination issued under section 268.07 or
268.101, or any other section of this chapter, or (2) because of an unemployment law
judge's decision under section 268.105, has received any unemployment benefits that the
applicant was held not entitled to, new text begin is overpaid the benefits, and new text end must promptly repay the
deleted text begin unemployment deleted text end benefits to the trust fund.

(b) If the applicant fails to repay the unemployment benefits overpaid, deleted text begin the
commissioner may offset from any future unemployment benefits otherwise payable the
amount of the overpayment. Except when the overpayment resulted because the applicant
failed to report deductible earnings or deductible or benefit delaying payments, no single
offset may exceed 50 percent of the amount of the payment from which the offset is made.
The overpayment may also deleted text end new text begin including any penalty and interest assessed under subdivisions
2 and 2b, the total due may new text end be collected by the methods allowed under state and federal law.

deleted text begin (c) If an applicant has been overpaid unemployment benefits under the law of
another state, because of a reason other than fraud, and that state certifies that the applicant
is liable under its law to repay the unemployment benefits and requests the commissioner
to recover the overpayment, the commissioner may offset from future unemployment
benefits otherwise payable the amount of overpayment, except that no single offset may
exceed 50 percent of the amount of the payment from which the offset is made.
deleted text end

Subd. 2.

Overpayment because of fraud.

(a) deleted text begin Any deleted text end new text begin An new text end applicant deleted text begin who receives deleted text end new text begin has
committed fraud if the applicant is overpaid new text end unemployment benefits by new text begin :
new text end

new text begin (1) new text end knowingly misrepresenting, misstating, or failing to disclose any material fact deleted text begin , deleted text end new text begin ;
new text end or deleted text begin who makes
deleted text end

new text begin (2) making new text end a false statement or representation without a good faith belief as to the
correctness of the statement or representation deleted text begin , has committed fraud deleted text end .

After the discovery of facts indicating fraud, the commissioner must deleted text begin make deleted text end new text begin issue new text end a
determination deleted text begin that the applicant obtained unemployment benefits by fraud and that the
applicant must promptly repay the unemployment benefits to the trust fund. In addition, the
commissioner must assess deleted text end new text begin of overpayment penalty, assessing new text end a penalty equal to 40 percent
of the amount deleted text begin fraudulently obtained deleted text end new text begin overpaid new text end . This penalty is in addition to penalties under
section 268.182. deleted text begin The determination is effective the Sunday of the week that it was issued.
deleted text end

(b) Unless the applicant files an appeal within 20 calendar days after the sending of
deleted text begin the deleted text end new text begin a new text end determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end to the applicant by mail or electronic
transmission, the determination is final. Proceedings on the appeal are conducted in
accordance with section 268.105.

(c) deleted text begin If the applicant fails to repay the unemployment benefits, penalty, and interest
assessed, the total due may be collected by the methods allowed under state and federal
law. deleted text end A determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end must state the methods of collection
the commissioner may use to recover the overpayment new text begin , penalty, and interest assessed new text end .
Money received in repayment of deleted text begin fraudulently obtained deleted text end new text begin overpaid new text end unemployment benefits,
penalties, and interest is first applied to the deleted text begin unemployment deleted text end benefits overpaid, then to the
penalty amount due, then to any interest due. 62.5 percent of the payments made toward the
penalty are credited to the contingent account and 37.5 percent credited to the trust fund.

deleted text begin (d) If an applicant has been overpaid unemployment benefits under the law of
another state because of fraud and that state certifies that the applicant is liable to repay
the unemployment benefits and requests the commissioner to recover the overpayment,
the commissioner may offset from future unemployment benefits otherwise payable the
amount of overpayment.
deleted text end

deleted text begin (e) Regardless of the limitations in section 268.101, subdivision 2, paragraph (e),
unemployment benefits paid for weeks more than four years before the date of deleted text end new text begin (d) new text end A
determination of overpayment deleted text begin by fraud issued deleted text end new text begin penalty new text end under this subdivision deleted text begin are not
considered overpaid unemployment benefits deleted text end new text begin may be issued within 48 months of the
establishment of the benefit account upon which the unemployment benefits were obtained
though fraud new text end .

Subd. 2b.

Interest.

On any unemployment benefits fraudulently obtained, and any
penalty amounts assessed under subdivision 2, the commissioner must assess interest at the
rate of one percent per month on any amount that remains unpaid beginning 30 calendar
days after the date of deleted text begin the deleted text end new text begin a new text end determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end . A determination
of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end must state that interest will be assessed. Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
Interest payments collected under this subdivision are credited to the trust fund.

Subd. 3a.

Offset of deleted text begin federal deleted text end unemployment benefits.

deleted text begin The commissioner is
authorized to enter into reciprocal agreements with the United States Secretary of Labor,
whereby, deleted text end new text begin (a) The commissioner may offset from any future unemployment benefits
otherwise payable the amount of a nonfraud overpayment. Except when the nonfraud
overpayment resulted because the applicant failed to report deductible earnings or
deductible or benefit delaying payments, no single offset may exceed 50 percent of the
amount of the payment from which the offset is made.
new text end

new text begin (b) new text end Overpayments of unemployment benefits deleted text begin as determined deleted text end under new text begin a new text end federal deleted text begin law, deleted text end new text begin
program new text end may be recovered by offset from deleted text begin unemployment deleted text end new text begin future new text end benefits otherwise
payable deleted text begin and deleted text end new text begin .
new text end

new text begin (c) If an applicant has been overpaid unemployment benefits under the law of
another state, the commissioner may offset from future benefits otherwise payable the
amount of overpayment.
new text end

new text begin (d) Nonfraud new text end unemployment benefit overpayments deleted text begin under subdivisions 1 and 2
deleted text end may be recovered by offset from deleted text begin unemployment deleted text end new text begin future new text end benefits otherwise payable under
a federal program.

Subd. 4.

Cancellation of overpayments.

(a) If unemployment benefits overpaid
deleted text begin under subdivision 1 deleted text end new text begin for reasons other than fraud new text end are not repaid or offset from subsequent
deleted text begin unemployment deleted text end benefits deleted text begin as provided for in subdivision 1 deleted text end within six years after the date
of the determination or decision holding the applicant overpaid, the commissioner must
cancel the overpayment balance, and no administrative or legal proceedings may be used
to enforce collection of those amounts.

(b) If unemployment benefits deleted text begin determined deleted text end overpaid deleted text begin under subdivision 2 deleted text end new text begin because of
fraud new text end including penalties and interest are not repaid within ten years after the date of
the determination of overpayment deleted text begin by fraud deleted text end new text begin penalty new text end , the commissioner must cancel the
overpayment balance and any penalties and interest due, and no administrative or legal
proceeding may be used to enforce collection of those amounts.

(c) The commissioner may cancel at any time any overpayment, including penalties
and interest, that the commissioner determines is uncollectible because of death or
bankruptcy.

Subd. 4a.

Court fees; collection fees.

(a) If the deleted text begin commissioner deleted text end new text begin department
new text end is required to pay any court fees in an attempt to enforce collection of overpaid
unemployment benefits, penalties, or interest, deleted text begin the commissioner may add deleted text end the amount of
the court fees new text begin may be added new text end to the total amount due.

(b) If an applicant who has been deleted text begin determined deleted text end overpaid unemployment benefits
because of fraud seeks to have any portion of the debt discharged under the federal
bankruptcy code, and the deleted text begin commissioner deleted text end new text begin department new text end files an objection in bankruptcy court
to the discharge, the deleted text begin commissioner may add the commissioner's deleted text end cost of any court fees new text begin may
be added new text end to the debt if the bankruptcy court does not discharge the debt.

(c) If the Internal Revenue Service assesses the deleted text begin commissioner deleted text end new text begin department new text end a fee for
offsetting from a federal tax refund the amount of any overpayment, including penalties
and interest, the amount of the fee may be added to the total amount due. The offset
amount must be put in the trust fund and that amount credited to the total amount due
from the applicant.

Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not considered an election
of a method of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation
matter under section 176.361 is not considered an election of a remedy and does not
prevent the commissioner from determining any unemployment benefits overpaid under
subdivision 1 or 2 or taking action under section 268.182.

Subd. 6.

Collection of overpayments.

(a) The commissioner may not compromise
the amount deleted text begin that has been determined deleted text end new text begin of any new text end overpaid deleted text begin under this section deleted text end new text begin unemployment
benefits new text end including penalties and interest.

(b) The commissioner has discretion regarding the recovery of any overpayment
deleted text begin under subdivision 1 deleted text end new text begin for reasons other than fraud new text end . Regardless of any law to the contrary, the
commissioner is not required to refer any deleted text begin amount determined overpaid under subdivision
1 deleted text end new text begin overpayment for reasons other than fraud new text end to a public or private collection agency,
including agencies of this state.

(c) Amounts deleted text begin determined deleted text end overpaid deleted text begin under subdivision 1 deleted text end new text begin for reasons other than fraud
new text end are not considered a "debt" to the state of Minnesota for purposes of any reporting
requirements to the commissioner of management and budget.

(d) A pending appeal under section 268.105 does not suspend the assessment of
interest, penalties, or collection of an overpayment deleted text begin under this section deleted text end .

(e) Section 16A.626 applies to the repayment by an applicant of any overpayment,
penalty, or interest deleted text begin under this section deleted text end .

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2016, unless indicated otherwise.
new text end

ARTICLE 10

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL TECHNICAL

Section 1.

Minnesota Statutes 2014, section 268.035, is amended by adding a
subdivision to read:

new text begin Subd. 12e. new text end

new text begin Earnings. new text end

new text begin "Earnings" means all compensation to which the applicant has
a legal claim and is earned income under state and federal law for income tax purposes.
new text end

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 20, is amended to read:

Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof,
including military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government;

deleted text begin (4) employment for an instrumentality wholly owned by a foreign government,
if the employment is of a character similar to that performed in foreign countries by
employees of the United States government or an instrumentality thereof and the United
States Secretary of State has certified that the foreign government grants an equivalent
exemption to similar employment performed in the foreign country by employees of the
United States government and instrumentalities thereof;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end employment covered under deleted text begin United States Code, title 45, section 351, deleted text end the
new text begin federal new text end Railroad Unemployment Insurance Act;

deleted text begin (6) employment covered by a reciprocal arrangement between the commissioner and
another state or the federal government that provides that all employment performed by an
individual for an employer during the period covered by the reciprocal arrangement is
considered performed entirely within another state;
deleted text end

deleted text begin (7) deleted text end new text begin (5) new text end employment for a church or convention or association of churches, or deleted text begin an
deleted text end new text begin a nonprofit new text end organization operated primarily for religious purposes that is operated,
supervised, controlled, or principally supported by a church or convention or association
of churches deleted text begin described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a) deleted text end ;

deleted text begin (8) deleted text end new text begin (6) new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit
organization, new text end of a duly ordained or licensed minister of a church in the exercise of a
ministry or by a member of a religious order in the exercise of duties required by the order deleted text begin ,
for Minnesota or a political subdivision or an organization described in United States
Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from
income tax under section 501(a) deleted text end ;

deleted text begin (9) deleted text end new text begin (7) new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit
organization, new text end of an individual receiving rehabilitation of "sheltered" work in a facility
conducted for the purpose of carrying out a program of rehabilitation for individuals
whose earning capacity is impaired by age or physical or mental deficiency or injury or a
program providing "sheltered" work for individuals who because of an impaired physical
or mental capacity cannot be readily absorbed in the competitive labor market. This
clause applies only to services performed deleted text begin for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a) deleted text end in a facility
certified by the Rehabilitation Services Branch of the department or in a day training or
habilitation program licensed by the Department of Human Services;

deleted text begin (10) deleted text end new text begin (8) new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit
organization, new text end of an individual receiving work relief or work training as part of an
unemployment work relief or work training program assisted or financed in whole or
in part by any federal agency or an agency of a state or political subdivision thereof.
deleted text begin This clause applies only to employment for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of the federal
Internal Revenue Code and exempt from income tax under section 501(a). deleted text end This clause does
not apply to programs that require unemployment benefit coverage for the participants;

deleted text begin (11) deleted text end new text begin (9) new text end employment for Minnesota or a political subdivision new text begin , new text end as an elected official, a
member of a legislative body, or a member of the judiciary;

deleted text begin (12) deleted text end new text begin (10) new text end employment as a member of the Minnesota National Guard or Air National
Guard;

deleted text begin (13) deleted text end new text begin (11) new text end employment for Minnesota deleted text begin , deleted text end new text begin or new text end a political subdivision, or instrumentality
thereof, deleted text begin as an employee deleted text end new text begin of an individual new text end serving deleted text begin only deleted text end on a temporary basis in case of
fire, flood, tornado, or similar emergency;

deleted text begin (14) deleted text end new text begin (12) new text end employment as an election official or election worker for Minnesota or
a political subdivision, deleted text begin but only deleted text end if the compensation for that employment was less than
$1,000 in a calendar year;

deleted text begin (15) deleted text end new text begin (13) new text end employment for Minnesota that is a major policy-making or advisory
position in the unclassified service;

deleted text begin (16) deleted text end new text begin (14) new text end employment for Minnesota in an unclassified position established under
section 43A.08, subdivision 1a;

deleted text begin (17) deleted text end new text begin (15) new text end employment for a political subdivision of Minnesota that is a nontenured
major policy making or advisory position;

deleted text begin (18) deleted text end new text begin (16) new text end domestic employment in a private household, local college club, or local
chapter of a college fraternity or sorority deleted text begin performed for a person, only deleted text end new text begin , new text end if the wages paid
in any calendar quarter in either the current or prior calendar year to all individuals in
domestic employment totaled less than $1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or
sorority as distinguished from service as an employee in the pursuit of an employer's
trade or business;

deleted text begin (19) deleted text end new text begin (17) new text end employment of an individual by a son, daughter, or spouse, and
employment of a child under the age of 18 by the child's father or mother;

deleted text begin (20) deleted text end new text begin (18) new text end employment of an inmate of a custodial or penal institution;

deleted text begin (21) deleted text end new text begin (19) new text end employment for a school, college, or university new text begin , new text end by a student who is
enrolled and whose primary relation to the school, college, or university is as a student.
This does not include an individual whose primary relation to the school, college, or
university is as an employee who also takes courses;

deleted text begin (22) deleted text end new text begin (20) new text end employment of an individual who is enrolled as a student in a full-time
program at a nonprofit or public educational institution that maintains a regular faculty
and curriculum and has a regularly organized body of students in attendance at the place
where its educational activities are carried on, taken for credit at the institution, that
combines academic instruction with work experience, if the employment is an integral
part of the program, and the institution has so certified to the employer, except that this
clause does not apply to employment in a program established for or on behalf of an
employer or group of employers;

deleted text begin (23) deleted text end new text begin (21) new text end employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (24) deleted text end new text begin (22) new text end employment for a hospital by a patient of the hospital. "Hospital" means
an institution that has been licensed by the Department of Health as a hospital;

deleted text begin (25) deleted text end new text begin (23) new text end employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

deleted text begin (26) deleted text end new text begin (24) new text end employment as an intern for a hospital by an individual who has completed
a four-year course in an accredited medical school;

deleted text begin (27) deleted text end new text begin (25) new text end employment as an insurance salesperson, by other than a corporate
officer, if all the wages from the employment is solely by way of commission. The word
"insurance" includes an annuity and an optional annuity;

deleted text begin (28) deleted text end new text begin (26) new text end employment as an officer of a township mutual insurance company or
farmer's mutual insurance company deleted text begin operating deleted text end under chapter 67A;

deleted text begin (29) deleted text end new text begin (27) new text end employment of a corporate officer, if the officer directly or indirectly,
including through a subsidiary or holding company, owns 25 percent or more of the
employer corporation, and employment of a member of a limited liability company, if the
member directly or indirectly, including through a subsidiary or holding company, owns
25 percent or more of the employer limited liability company;

deleted text begin (30) deleted text end new text begin (28) new text end employment as a real estate salesperson, deleted text begin by deleted text end other than a corporate officer,
if all the wages from the employment is solely by way of commission;

deleted text begin (31) deleted text end new text begin (29) new text end employment as a direct seller as defined in United States Code, title 26,
section 3508;

deleted text begin (32) deleted text end new text begin (30) new text end employment of an individual under the age of 18 in the delivery or
distribution of newspapers or shopping news, not including delivery or distribution to any
point for subsequent delivery or distribution;

deleted text begin (33) deleted text end new text begin (31) new text end casual employment performed for an individual, other than domestic
employment under clause deleted text begin (18) deleted text end new text begin (16) new text end , that does not promote or advance that employer's
trade or business;

deleted text begin (34) deleted text end new text begin (32) new text end employment in "agricultural employment" unless deleted text begin considered deleted text end new text begin it is new text end "covered
agricultural employment" under subdivision 11; or

deleted text begin (35) deleted text end new text begin (33) new text end if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is deleted text begin considered deleted text end covered employment;
but if during more than one-half of any pay period the employment was noncovered
employment, then all of the employment for the pay period is deleted text begin considered deleted text end noncovered
employment. "Pay period" means a period of not more than a calendar month for which a
payment or compensation is ordinarily made to the employee by the employer.

Sec. 3.

Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision
to read:

new text begin Subd. 20b. new text end

new text begin Nonprofit organization. new text end

new text begin "Nonprofit organization" means an
organization described in United States Code, title 26, section 501(c)(3), and is exempt
from income tax under United States Code, title 26, section 501(a).
new text end

Sec. 4.

Minnesota Statutes 2014, section 268.035, subdivision 23a, is amended to read:

Subd. 23a.

Suitable employment.

(a) Suitable employment means employment in
the applicant's labor market area that is reasonably related to the applicant's qualifications.
In determining whether any employment is suitable for an applicant, the degree of risk
involved to the health and safety, physical fitness, prior training, experience, length
of unemployment, prospects for securing employment in the applicant's customary
occupation, and the distance of the employment from the applicant's residence is
considered.

(b) In determining what is suitable employment, primary consideration is given to the
temporary or permanent nature of the applicant's separation from employment and whether
the applicant has favorable prospects of finding employment in the applicant's usual or
customary occupation at the applicant's past wage level within a reasonable period of time.

If prospects are unfavorable, employment at lower skill or wage levels is suitable
if the applicant is reasonably suited for the employment considering the applicant's
education, training, work experience, and current physical and mental ability.

The total compensation must be considered, including the wage rate, hours of
employment, method of payment, overtime practices, bonuses, incentive payments, and
fringe benefits.

(c) When potential employment is at a rate of pay lower than the applicant's former
rate, consideration must be given to the length of the applicant's unemployment and the
proportion of difference in the rates. Employment that may not be suitable because of
lower wages during the early weeks of the applicant's unemployment may become suitable
as the duration of unemployment lengthens.

(d) For an applicant seasonally unemployed, suitable employment includes
temporary work in a lower skilled occupation that pays average gross weekly wages equal
to or more than 150 percent of the applicant's weekly unemployment benefit amount.

(e) If a majority of the applicant's weeks of employment in the base period includes
part-time employment, part-time employment in a position with comparable skills and
comparable hours that pays comparable wages is deleted text begin considered deleted text end suitable employment.

Full-time employment is not deleted text begin considered deleted text end suitable employment for an applicant if a
majority of the applicant's weeks of employment in the base period includes part-time
employment.

(f) To determine suitability of employment in terms of shifts, the arrangement of
hours in addition to the total number of hours is to be considered. Employment on a
second, third, rotating, or split shift is suitable employment if it is customary in the
occupation in the labor market area.

(g) Employment is not deleted text begin considered deleted text end suitable if:

(1) the position offered is vacant because of a labor dispute;

(2) the wages, hours, or other conditions of employment are deleted text begin substantially deleted text end less
favorable than those prevailing for similar employment in the labor market area; new text begin or
new text end

(3) as a condition of becoming employed, the applicant would be required to join a
company union or to resign from or refrain from joining any bona fide labor organization deleted text begin ; or
deleted text end

deleted text begin (4) the employment is with a staffing service and less than 25 percent of the
applicant's wage credits are from a job assignment with the client of a staffing service deleted text end .

(h) A job assignment with a staffing service is deleted text begin considered deleted text end suitable only if 25
percent or more of the applicant's wage credits are from job assignments with clients of
a staffing service and the job assignment meets the definition of suitable employment
under paragraph (a).

Sec. 5.

Minnesota Statutes 2014, section 268.085, subdivision 4, is amended to read:

Subd. 4.

Social Security old age insurance benefits.

(a) Any applicant aged 62 or
over is required to state when filing an application for unemployment benefits and when
filing continued requests for unemployment benefits if the applicant is receiving, has filed
for, or intends to file for, primary Social Security old age benefits.

new text begin (b) new text end Unless paragraph deleted text begin (b) deleted text end new text begin (c) new text end applies, 50 percent of the weekly equivalent of the
primary Social Security old age benefit the applicant has received, has filed for, or
intends to file for, with respect to that week must be deducted from an applicant's weekly
unemployment benefit amount.

deleted text begin (b) deleted text end new text begin (c) new text end If all of the applicant's wage credits were earned while the applicant was
claiming Social Security old age benefits, there is no deduction new text begin of the Social Security
benefits new text end from the applicant's weekly unemployment benefit amount.

deleted text begin (c) deleted text end new text begin (d) new text end Information from the Social Security Administration is deleted text begin considered deleted text end conclusive,
absent specific evidence showing that the information was erroneous.

deleted text begin (d) deleted text end new text begin (e) new text end This subdivision does not apply to Social Security survivor benefits.

Sec. 6.

Minnesota Statutes 2014, section 268.085, subdivision 5, is amended to read:

Subd. 5.

Deductible earnings.

(a) If the applicant has earnings, including holiday
pay, with respect to any week, from employment, covered employment, noncovered
employment, self-employment, or volunteer work, equal to or in excess of the applicant's
weekly unemployment benefit amount, the applicant is ineligible for unemployment
benefits for that week.

(b) If the applicant has earnings, including holiday pay, with respect to any week,
that is less than the applicant's weekly unemployment benefit amount, from employment,
covered employment, noncovered employment, self-employment, or volunteer work, 50
percent of the earnings are deducted from the weekly unemployment benefit amount.

(c) No deduction is made from an applicant's weekly unemployment benefit amount
for earnings from service in the National Guard or a United States military reserve unit or
from direct service as a volunteer firefighter or volunteer ambulance service personnel.
This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
for jury duty pay or for pay as an election judge.

(d) The applicant may report deductible earnings on continued requests for
unemployment benefits at the next lower whole dollar amount.

(e) Deductible earnings does not include any money deleted text begin considered deleted text end new text begin that is new text end a deductible
payment under subdivision 3 deleted text begin , but includes all compensation considered wages under
section 268.035, subdivision 29, and any other compensation considered earned income
under state and federal law for income tax purposes deleted text end .

Sec. 7. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change "liability" to "liability for damages" in
Minnesota Rules, part 3315.0555, subpart 1.
new text end

new text begin (b) The revisor of statutes shall change "entitled to" to "eligible for" in Minnesota
Statutes, section 268.085, subdivision 1, clause (6).
new text end

new text begin (c) The revisor of statutes shall change "shall calculate" to "must calculate" in
Minnesota Statutes, section 268.035, subdivision 23.
new text end

new text begin (d) The revisor of statutes shall renumber Minnesota Statutes, section 268.035,
subdivision 12d, to subdivision 12f.
new text end

new text begin (e) The revisor of statutes shall reletter the paragraphs in Minnesota Statutes, section
268.085, subdivision 4, as follows:
new text end

new text begin (1) paragraph (a) shall be relettered paragraph (c); and
new text end

new text begin (2) paragraph (c) shall be relettered paragraph (a).
new text end

new text begin (f) The revisor of statutes shall renumber the reference to "clause (29)" to "clause
(27)" in Minnesota Statutes, section 268.046, subdivision 1.
new text end

new text begin (g) The revisor of statutes shall renumber the reference to "clause (10)" to "clause
(8)" in Minnesota Statutes, section 383C.19.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2016, and applies to all matters pending a
determination or a decision by an unemployment law judge.
new text end

ARTICLE 11

TELEPHONE REGULATION

Section 1.

Minnesota Statutes 2014, section 237.01, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Voice-over-Internet protocol service. new text end

new text begin "Voice-over-Internet protocol
service" or "VoIP service" means any service that (1) enables real-time two-way voice
communications that originate from or terminate at the user's location in Internet protocol
or any successor protocol, and (2) permits users generally to receive calls that originate
on the public switched telephone network and terminate calls to the public switched
telephone network.
new text end

Sec. 2.

Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Internet protocol-enabled service. new text end

new text begin "Internet protocol-enabled service"
or "IP-enabled service" means any service, capability, functionality, or application
provided using Internet protocol, or any successor protocol, that enables an end user to
send or receive a communication in Internet protocol format or any successor format,
regardless of whether that communication is voice, data, or video.
new text end

Sec. 3.

new text begin [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND
INTERNET PROTOCOL-ENABLED SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Regulation prohibited. new text end

new text begin Except as provided in this section, no
state agency, including the commission and the Department of Commerce, or political
subdivision of this state shall by rule, order, or other means directly or indirectly regulate
the entry, rates, terms, quality of service, availability, classification, or any other aspect of
VoIP service or IP-enabled service.
new text end

new text begin Subd. 2. new text end

new text begin VoIP regulation. new text end

new text begin (a) To the extent permitted by federal law, VoIP service
is subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard
to the collection and remittance of the surcharges governed by those sections.
new text end

new text begin (b) A provider of VoIP service must comply with the requirements of chapter 403
applicable to the provision of access to 911 service by service providers, except to the
extent those requirements conflict with federal requirements for the provision of 911
service by VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP
provider is entitled to the benefit of the limitation of liability provisions of section 403.07,
subdivision 5. Beginning June 1, 2016, and continuing each June 1 thereafter, each VoIP
provider shall file a plan with the commission describing how it will comply with the
requirements of this paragraph. After its initial filing under this paragraph, a VoIP provider
shall file with the commission either an update of the plan or a statement certifying that
the plan and personnel contact information previously filed is still current.
new text end

new text begin Subd. 3. new text end

new text begin Relation to other law. new text end

new text begin Nothing in this section restricts, creates, expands,
or otherwise affects or modifies:
new text end

new text begin (1) the commission's authority under the Federal Communications Act of 1934,
United States Code, title 47, sections 251 and 252;
new text end

new text begin (2) any applicable wholesale tariff or any commission authority related to wholesale
services;
new text end

new text begin (3) any commission jurisdiction over (i) intrastate switched access rates, terms,
and conditions, including the implementation of federal law with respect to intercarrier
compensation, or (ii) existing commission authority to address or affect the resolution of
disputes regarding intercarrier compensation;
new text end

new text begin (4) the rights of any entity, or the authority of the commission and local government
authorities, with respect to the use and regulation of public rights-of-way under sections
237.162 and 237.163; or
new text end

new text begin (5) the establishment or enforcement of standards, requirements or procedures in
procurement policies, internal operational policies, or work rules of any state agency or
political subdivision of the state relating to the protection of intellectual property.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin The following services delivered by IP-enabled service are
not regulated under this chapter:
new text end

new text begin (1) video services provided by a cable communications system, as defined in section
238.02, subdivision 3; or
new text end

new text begin (2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
new text end

new text begin (3) any other IP-enabled video service.
new text end

ARTICLE 12

BROADBAND DEVELOPMENT

Section 1.

Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to deleted text begin 116J.396 deleted text end new text begin 116J.398 new text end , 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 deleted text begin that meet the state
broadband goals of deleted text end new text begin greater than new text end ten deleted text begin to 20 deleted text end megabits per second download and deleted text begin five to ten deleted text end new text begin
three new text end megabits per second upload new text begin but less than 25 megabits per second download and
three megabits per second upload new text end .

(i) "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service deleted text begin , as defined in section 116J.39 deleted text end new text begin at speeds equal to
or greater than ten megabits per second download and three megabits per second upload new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:

Subd. 4.

Application process.

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

new text begin (b) At least 30 days prior to the first day applications may be submitted each fiscal
year, the commissioner must publish the specific criteria and any quantitative weighting
scheme or scoring system the commissioner will use to evaluate or rank applications and
award grants under subdivision 6 on the department's Web site.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Incumbent right of first refusal. new text end

new text begin (a) An applicant shall submit a copy of
the application to all incumbent broadband service providers operating in the geographic
area in which the proposed project is to be located at the same time the application is
submitted to the commissioner.
new text end

new text begin (b) The commissioner may not continue to process or consider an application for a
grant award if the commissioner receives notice in writing from an incumbent broadband
service provider of the service provider's intention and commitment to begin construction,
within 12 months of the date on which grant awards are to be made under this section, and
to complete construction within 24 months of that date, of a project to extend or upgrade
broadband service to speeds equal to or greater than the state broadband speed goal
contained in section 237.012, subdivision 1, throughout the area in which the proposed
project that is the subject of the application is to be located.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 116J.395, subdivision 6, is amended to read:

Subd. 6.

Awarding grants.

(a) In evaluating applications and awarding grants,
the commissioner shall give priority to applications that new text begin : (1) new text end are constructed in areas
identified by the director of the Office of Broadband Development as unserved new text begin ; and (2) the
commissioner determines will result in the creation or retention of jobs in underserved
areas located in counties that are not metropolitan counties, as defined in section 473.121,
subdivision 4 new text end .

(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.

new text begin (d) Within 90 days after the first grant is awarded under this section in a fiscal year,
the commissioner shall notify in writing each applicant who did not receive a grant why
the specific application was unsuccessful.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 116J.395, subdivision 7, is amended to read:

Subd. 7.

Limitation.

(a) No grant awarded under this section new text begin in an unserved area
new text end may fund more than 50 percent of the total cost of a project.

(b) deleted text begin Grants awarded to a single project under this section must not exceed $5,000,000 deleted text end new text begin
No grant awarded under this section in an underserved area may fund more than 25
percent of the total cost of a project new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Application evaluation report. new text end

new text begin By June 30 of each year, the Office of
Broadband Development shall place on the Department of Employment and Economic
Development's Web site and provide to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over broadband
a list of all applications for grants under this section received during the previous year
and, for each application:
new text end

new text begin (1) the results of any quantitative weighting scheme or scoring system the
commissioner used to award grants or rank the applications;
new text end

new text begin (2) the grant amount requested; and
new text end

new text begin (3) the grant amount awarded, if any.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
The initial report submission required under this section is due June 30, 2016.
new text end

Sec. 7.

new text begin [116J.397] UPDATED BROADBAND DEPLOYMENT DATA AND MAPS.
new text end

new text begin (a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband
Development shall contract with one or more independent organizations that have
extensive experience working with Minnesota broadband providers to:
new text end

new text begin (1) collect broadband deployment data from Minnesota providers, verify its accuracy
through on-the-ground testing, and create state and county maps available to the public by
February 1, 2017, and each February 1 thereafter, showing the availability of broadband
service at various upload and download speeds throughout Minnesota;
new text end

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

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

new text begin (b) Data provided by a broadband provider under this section is nonpublic data
under section 13.02, subdivision 9. Maps produced under this paragraph are public data
under section 13.03.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

new text begin [116J.398] BROADBAND PREVAILING WAGE EXEMPTION.
new text end

new text begin Notwithstanding any other law to the contrary, sections 116J.871 and 177.41 to
177.44 do not apply to the construction, installation, remodeling, and repair of last-mile
infrastructure, as defined under section 116J.394, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 237.012, subdivision 1, is amended to read:

Subdivision 1.

Universal access and high-speed goal.

new text begin (a) new text end It is a state goal that as
soon as possible, but no later than deleted text begin 2015 deleted text end new text begin 2022 new text end , all state residents and businesses have access
to high-speed broadband new text begin service new text end that provides minimum download speeds of deleted text begin ten to 20 deleted text end new text begin 25 new text end
megabits per second and minimum upload speeds of deleted text begin five to ten deleted text end new text begin three new text end megabits per second.

new text begin (b) It is a state goal that no later than 2026 all households in the state have access to
at least one broadband service provider offering broadband service at minimum speeds of
100 megabits per second download and 20 megabits per second upload.
new text end

Sec. 10.

Minnesota Statutes 2014, section 237.012, subdivision 2, is amended to read:

Subd. 2.

State broadband leadership position.

It is a goal of the state that by
deleted text begin 2015 deleted text end new text begin 2022 new text end and thereafter, the state be in:

(1) the top five states of the United States for broadband speed universally accessible
to residents and businesses;

(2) the top five states for broadband access; and

(3) the top 15 when compared to countries globally for broadband penetration.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 13

ENERGY

Section 1.

Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:

Subdivision 1.

Reimbursable costs.

(a) The board shall provide reimbursement to
eligible applicants for reimbursable costs.

(b) The following costs are reimbursable for purposes of this chapter:

(1) corrective action costs incurred by the applicant and documented in a form
prescribed by the board deleted text begin , except the costs related to the physical removal of a tank deleted text end new text begin .
Corrective action costs incurred by the applicant include costs for physical removal of
a tank when the physical removal is part of a corrective action, regardless of whether
the tank is leaking at the time of removal, and the removal is directed or approved by
the commissioner new text end ;

(2) costs that the responsible person is legally obligated to pay as damages to third
parties for bodily injury, property damage, or corrective action costs incurred by a third
party caused by a release where the responsible person's liability for the costs has been
established by a court order or court-approved settlement; and

(3) up to 180 days of interest costs associated with the financing of corrective action
and incurred by the applicant in a written extension of credit or loan that has been signed by
the applicant and executed after July 1, 2002, provided that the applicant documents that:

(i) the interest costs are incurred as a result of an extension of credit or loan from a
financial institution; and

(ii) the board has not considered the application within the applicable time frame
specified in subdivision 2a, paragraph (c).

Interest costs meeting the requirements of this clause are eligible only when they are
incurred between the date a complete initial application is received by the board, or the
date a complete supplemental application is received by the board, and the date that the
board first notifies the applicant of its reimbursement determination. An application is
complete when the information reasonably required or requested by the board's staff
from the applicant has been received by the board's staff. Interest costs are not eligible
for reimbursement to the extent they exceed two percentage points above the adjusted
prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the
extension of credit or loan was executed.

(c) A cost for liability to a third party is incurred by the responsible person when an
order or court-approved settlement is entered that sets forth the specific costs attributed
to the liability. Except as provided in this paragraph, reimbursement may not be made
for costs of liability to third parties until all eligible corrective action costs have been
reimbursed. If a corrective action is expected to continue in operation for more than one
year after it has been fully constructed or installed, the board may estimate the future
expense of completing the corrective action and, after subtracting this estimate from the
total reimbursement available under subdivision 3, reimburse the costs for liability to third
parties. The total reimbursement may not exceed the limit set forth in subdivision 3.

Sec. 2.

Minnesota Statutes 2014, section 115C.09, subdivision 3, is amended to read:

Subd. 3.

Reimbursements; subrogation; appropriation.

(a) The board shall
reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs
incurred at the site, except that the board may reimburse an eligible applicant from the
fund for greater than 90 percent of the total reimbursable costs, if the applicant previously
qualified for a higher reimbursement rate. For costs associated with a release from a tank
in transport, the board may reimburse a maximum of $100,000.

Not more than deleted text begin $1,000,000 may be reimbursed for costs associated with a single
release, regardless of the number of persons eligible for reimbursement, and not more than deleted text end
$2,000,000 may be reimbursed for costs associated with a single deleted text begin tank facility deleted text end new text begin release new text end .

(b) A reimbursement may not be made from the fund under this chapter until the
board has determined that the costs for which reimbursement is requested were actually
incurred and were reasonable.

(c) When an applicant has obtained responsible competitive bids or proposals
according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs
for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal
are presumed to be reasonable by the board, unless the costs of the low bid or proposal are
substantially in excess of the average costs charged for similar tasks, procedures, services,
materials, equipment, and tests in the same geographical area during the same time period.

(d) When an applicant has obtained a minimum of two responsible competitive bids or
proposals on forms prescribed by the board and where the rules deleted text begin promulgated deleted text end new text begin adopted new text end under
this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures,
services, materials, equipment and tests, the eligible costs of the low bid or proposal are
deemed reasonable if the costs are at or below the maximums set forth in the rules.

(e) Costs incurred for change orders executed as prescribed in rules deleted text begin promulgated deleted text end new text begin
adopted new text end under this chapter after June 1, 1995, are presumed reasonable if the costs are
at or below the maximums set forth in the rules, unless the costs in the change order are
above those in the original bid or proposal or are unsubstantiated and inconsistent with the
process and standards required by the rules.

(f) A reimbursement may not be made from the fund in response to either an initial
or supplemental application for costs incurred after June 4, 1987, that are payable under
an applicable insurance policy, except that if the board finds that the applicant has made
reasonable efforts to collect from an insurer and failed, the board shall reimburse the
applicant.

(g) If the board reimburses an applicant for costs for which the applicant has
insurance coverage, the board is subrogated to the rights of the applicant with respect to
that insurance coverage, to the extent of the reimbursement by the board. The board may
request the attorney general to bring an action in district court against the insurer to enforce
the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes
an assignment by the applicant to the board of any rights of the applicant with respect to
any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this
paragraph, the board may instead request a return of the reimbursement under subdivision
5 and may employ against the applicant the remedies provided in that subdivision, except
where the board has knowingly provided reimbursement because the applicant was denied
coverage by the insurer.

(h) Money in the fund is appropriated to the board to make reimbursements under
this chapter. A reimbursement to a state agency must be credited to the appropriation
account or accounts from which the reimbursed costs were paid.

(i) The board may reduce the amount of reimbursement to be made under this
chapter if it finds that the applicant has not complied with a provision of this chapter, a
rule or order issued under this chapter, or one or more of the following requirements:

(1) the agency was given notice of the release as required by section 115.061;

(2) the applicant, to the extent possible, fully cooperated with the agency in
responding to the release;

(3) the state rules applicable after December 22, 1993, to operating an underground
storage tank and appurtenances without leak detection;

(4) the state rules applicable after December 22, 1998, to operating an underground
storage tank and appurtenances without corrosion protection or spill and overfill
protection; and

(5) the state rule applicable after November 1, 1998, to operating an aboveground
tank without a dike or other structure that would contain a spill at the aboveground tank site.

(j) The reimbursement may be reduced as much as 100 percent for failure by
the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In
determining the amount of the reimbursement reduction, the board shall consider:

(1) the reasonable determination by the agency that the noncompliance poses a
threat to the environment;

(2) whether the noncompliance was negligent, knowing, or willful;

(3) the deterrent effect of the award reduction on other tank owners and operators;

(4) the amount of reimbursement reduction recommended by the commissioner; and

(5) the documentation of noncompliance provided by the commissioner.

(k) An applicant may request that the board issue a multiparty check that includes each
lender who advanced funds to pay the costs of the corrective action or to each contractor
or consultant who provided corrective action services. This request must be made by filing
with the board a document, in a form prescribed by the board, indicating the identity of the
applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the
location of the corrective action. The applicant must submit a request for the issuance
of a multiparty check for each application submitted to the board. Payment under this
paragraph does not constitute the assignment of the applicant's right to reimbursement
to the consultant, contractor, or lender. The board has no liability to an applicant for a
payment issued as a multiparty check that meets the requirements of this paragraph.

Sec. 3.

Minnesota Statutes 2014, section 116C.779, subdivision 1, is amended to read:

Subdivision 1.

Renewable development account.

(a) new text begin Except as provided in
subdivision 1a, new text end the public utility that owns the Prairie Island nuclear generating plant
must transfer to a renewable development account $500,000 each year for each dry cask
containing spent fuel that is located at the Prairie Island power plant for each year the plant
is in operation, and $7,500,000 each year the plant is not in operation if ordered by the
commission pursuant to paragraph (c). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for
any part of a year.

(b) new text begin Except as provided in subdivision 1a, new text end the public utility that owns the Monticello
nuclear generating plant must transfer to the renewable development account $350,000
each year for each dry cask containing spent fuel that is located at the Monticello nuclear
power plant for each year the plant is in operation, and $5,250,000 each year the plant is
not in operation if ordered by the commission pursuant to paragraph (c). The fund transfer
must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage
facility at Monticello for any part of a year.

(c) After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear
fuel stored at the facility to a permanent or interim storage site out of the state. This
determination shall be made at least every two years.

(d) Funds in the account may be expended only for any of the following purposes:

(1) to increase the market penetration within the state of renewable electric energy
resources at reasonable costs;

(2) to promote the start-up, expansion, and attraction of renewable electric energy
projects and companies within the state;

(3) to stimulate research and development within the state into renewable electric
energy technologies; and

(4) to develop near-commercial and demonstration scale renewable electric projects
or near-commercial and demonstration scale electric infrastructure delivery projects if
those delivery projects enhance the delivery of renewable electric energy.

The utility that owns a nuclear generating plant is eligible to apply for renewable
development account grants.

(e) Expenditures authorized by this subdivision from the account may be made only
after approval by order of the Public Utilities Commission upon a petition by the public
utility. The commission may approve proposed expenditures, may disapprove proposed
expenditures that it finds to be not in compliance with this subdivision or otherwise
not in the public interest, and may, if agreed to by the public utility, modify proposed
expenditures. The commission may approve reasonable and necessary expenditures
for administering the account in an amount not to exceed five percent of expenditures.
Commission approval is not required for expenditures required under subdivisions 2
and 3, section 116C.7791, or other law.

(f) The account shall be managed by the public utility but the public utility must
consult about account expenditures with an advisory group that includes, among others,
representatives of its ratepayers. The commission may require that other interests be
represented on the advisory group. The advisory group must be consulted with respect to
the general scope of expenditures in designing a request for proposal and in evaluating
projects submitted in response to a request for proposals. In addition to consulting with the
advisory group, the public utility must utilize an independent third-party expert to evaluate
proposals submitted in response to a request for proposal, including all proposals made by
the public utility. A request for proposal for research and development under paragraph (d),
clause (3), may be limited to or include a request to higher education institutions located in
Minnesota for multiple projects authorized under paragraph (d), clause (3). The request for
multiple projects may include a provision that exempts the projects from the third-party
expert review and instead provides for project evaluation and selection by a merit peer
review grant system. The utility should attempt to reach agreement with the advisory
group after consulting with it but the utility has full and sole authority to determine which
expenditures shall be submitted to the commission for commission approval. In the
process of determining request for proposal scope and subject and in evaluating responses
to request for proposals, the public utility must strongly consider, where reasonable,
potential benefit to Minnesota citizens and businesses and the utility's ratepayers.

(g) Funds in the account may not be directly appropriated by the legislature by a law
enacted after January 1, 2012, and unless appropriated by a law enacted prior to that date
may be expended only pursuant to an order of the commission according to this subdivision.

(h) A request for proposal for renewable energy generation projects must, when
feasible and reasonable, give preference to projects that are most cost-effective for a
particular energy source.

(i) The public utility must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.

(j) A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers.

(k) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public Web site designated by the commission.

(l) All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development fund, noting that the fund is financed
by the public utility's ratepayers.

Sec. 4.

Minnesota Statutes 2014, section 116C.779, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Payment termination. new text end

new text begin (a) The commissioner shall track the cumulative
transfers made to the account each year since 1999 for each dry cask containing spent fuel
that is stored at an independent spent-fuel storage facility at Prairie Island or Monticello.
During the time when state law required the public utility to transfer a specific amount of
funds to the account for all the casks stored, the per-cask allocation shall be calculated by
dividing the total amount transferred by the number of casks stored that year.
new text end

new text begin (b) When the commissioner determines that the cumulative transfers calculated
under paragraph (a) for a specific cask reach $10,000,000, the commissioner shall notify
the public utility that no additional transfers to the account for that cask shall be made.
new text end

new text begin (c) This subdivision does not affect any provisions of subdivision 1, paragraph (a) or
(b), with respect to transfers to the account made after a plant has ceased operation.
new text end

Sec. 5.

Minnesota Statutes 2014, section 216A.03, subdivision 1, is amended to read:

Subdivision 1.

Members.

The Public Utilities Commission shall consist of deleted text begin five deleted text end new text begin nine new text end
members new text begin , eight of whom shall each represent one of the state's congressional districts, and
one member appointed at large. At the time of appointment, each member, except for the
at-large appointee, must reside in the congressional district the member is to represent new text end .
The terms of members shall be six years and until their successors have been appointed
and qualified. Each commissioner shall be appointed by the governor by and with the
advice and consent of the senate. Not more than deleted text begin three deleted text end new text begin five new text end commissioners shall belong
to the same political party. deleted text begin At least one commissioner must have been domiciled at the
time of appointment outside the seven-county metropolitan area. If the membership of the
commission after July 31, 1986, does not consist of at least one member domiciled at the
time of appointment outside the seven-county metropolitan area, the membership shall
conform to this requirement following normal attrition of the present commissioners. deleted text end The
governor when selecting commissioners shall give consideration to persons learned in the
law or persons who have engaged in the profession of engineering, public accounting,
property and utility valuation, finance, physical or natural sciences, production agriculture,
or natural resources as well as being representative of the general public.

deleted text begin For purposes of this subdivision, "seven-county metropolitan area" means Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 216A.03, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Transition. new text end

new text begin (a) Until the governor has appointed commissioners from
each congressional district and one at-large commissioner, this subdivision governs
membership of the commission.
new text end

new text begin (b) Members of the commission as of July 1, 2016, shall continue to serve until the
expiration of their terms.
new text end

new text begin (c) No later than October 1, 2016, the governor shall appoint commissioners from
the first, seventh, and eighth congressional districts for terms to begin January 2, 2017.
new text end

new text begin (d) No later than October 1, 2018, the governor shall appoint a commissioner from
the second congressional district for a term to begin January 7, 2019.
new text end

new text begin (e) No later than October 1, 2019, the governor shall appoint commissioners from
the third, fourth, and fifth congressional districts for terms to begin January 6, 2020.
new text end

new text begin (f) No later than October 1, 2020, the governor shall appoint a commissioner from
the sixth congressional district for a term to begin January 4, 2021.
new text end

new text begin (g) No later than October 1, 2021, the governor shall appoint an at-large
commissioner for a term to begin January 3, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 216B.1641, is amended to read:

216B.1641 COMMUNITY SOLAR GARDEN.

(a) The public utility subject to section 116C.779 shall file by September 30, 2013, a
plan with the commission to operate a community solar garden program which shall begin
operations within 90 days after commission approval of the plan. Other public utilities
may file an application at their election. The community solar garden program must be
designed to offset the energy use of not less than five subscribers in each community
solar garden facility of which no single subscriber has more than a 40 percent interest.
The owner of the community solar garden may be a public utility or any other entity or
organization that contracts to sell the output from the community solar garden to the
utility under section 216B.164. There shall be no limitation on the number or cumulative
generating capacity of community solar garden facilities other than the limitations imposed
under section 216B.164, subdivision 4c, or other limitations provided in law or regulations.

(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for
the electricity generated in proportion to the size of their subscription. The solar garden
must have a nameplate capacity of no more than one megawatt. Each subscription shall be
sized to represent at least 200 watts of the community solar garden's generating capacity
and to supply, when combined with other distributed generation resources serving the
premises, no more than 120 percent of the average annual consumption of electricity by
each subscriber at the premises to which the subscription is attributed.

(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility located in
the same county or a county contiguous to where the facility is located.

(d) The public utility must purchase from the community solar garden all energy
generated by the solar garden. The purchase shall be at the rate calculated under section
216B.164, subdivision 10, or, until that rate for the public utility has been approved by
the commission, the applicable retail rate. A solar garden is eligible for any incentive
programs offered under either section 116C.7792 or section 216C.415. A subscriber's
portion of the purchase shall be provided by a credit on the subscriber's bill.

(e) The commission may approve, disapprove, or modify a community solar garden
program. Any plan approved by the commission must:

(1) reasonably allow for the creation, financing, and accessibility of community
solar gardens;

(2) establish uniform standards, fees, and processes for the interconnection
of community solar garden facilities that allow the utility to recover reasonable
interconnection costs for each community solar garden;

(3) not apply different requirements to utility and nonutility community solar garden
facilities;

(4) be consistent with the public interest;

(5) identify the information that must be provided to potential subscribers to ensure
fair disclosure of future costs and benefits of subscriptions;

(6) include a program implementation schedule;

(7) identify all proposed rules, fees, and charges; deleted text begin and
deleted text end

(8) identify the means by which the program will be promoted deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) certify that the utility and the owner of a solar garden will submit copies of all
marketing and promotional material and sample contracts to the commission, and that
the materials will be updated periodically;
new text end

new text begin (10) provide a mechanism for subscribers to transfer subscriptions to other new or
current subscribers;
new text end

new text begin (11) require an owner of a solar garden and the utility purchasing electricity
generated by the solar garden to forward customer complaints regarding the operation of
the solar garden to the commission; and
new text end

new text begin (12) reflect the commission's determination that:
new text end

new text begin (i) the plan is financially viable; and
new text end

new text begin (ii) the contract between a subscriber and the owner of a solar garden is fair,
reasonable, and not discriminatory.
new text end

(f) Notwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.

(g) Within 180 days of commission approval of a plan under this section, a utility
shall begin crediting subscriber accounts for each community solar garden facility in
its service territory, and shall file with the commissioner of commerce a description of
its crediting system.

(h) For the purposes of this section, the following terms have the meanings given:

(1) "subscriber" means a retail customer of a utility who owns one or more
subscriptions of a community solar garden facility interconnected with that utility; and

(2) "subscription" means a contract between a subscriber and the owner of a solar
garden.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any plan submitted to the commission for approval on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2014, section 216B.241, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section and section 216B.16,
subdivision 6b, the terms defined in this subdivision have the meanings given them.

(a) "Commission" means the Public Utilities Commission.

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

(c) "Department" means the Department of Commerce.

(d) "Energy conservation" means demand-side management of energy supplies
resulting in a net reduction in energy use. Load management that reduces overall energy
use is energy conservation.

(e) "Energy conservation improvement" means a project that results in energy
efficiency or energy conservation. Energy conservation improvement may include waste
heat that is recovered and converted into electricity, but does not include electric utility
infrastructure projects approved by the commission under section 216B.1636. Energy
conservation improvement also includes waste heat recovered and used as thermal energy.

(f) "Energy efficiency" means measures or programs, including energy conservation
measures or programs, that target consumer behavior, equipment, processes, or devices
designed to produce either an absolute decrease in consumption of electric energy or natural
gas or a decrease in consumption of electric energy or natural gas on a per unit of production
basis without a reduction in the quality or level of service provided to the energy consumer.

(g) "Gross annual retail energy sales" means annual electric sales to all retail
customers in a utility's or association's Minnesota service territory or natural gas
throughput to all retail customers, including natural gas transportation customers, on a
utility's distribution system in Minnesota. For purposes of this section, gross annual
retail energy sales exclude:

(1) gas sales to:

(i) a large energy facility;

(ii) a large customer facility whose natural gas utility has been exempted by the
commissioner under subdivision 1a, paragraph (b), with respect to natural gas sales made
to the large customer facility; deleted text begin and
deleted text end

(iii) a commercial gas customer facility whose natural gas utility has been exempted
by the commissioner under subdivision 1a, paragraph (c), with respect to natural gas sales
made to the commercial gas customer facility; new text begin and
new text end

new text begin (iv) a pipeline facility; new text end and

(2) electric sales to new text begin :
new text end

new text begin (i) new text end a large customer facility whose electric utility has been exempted by the
commissioner under subdivision 1a, paragraph (b), with respect to electric sales made to
the large customer facility new text begin ; and
new text end

new text begin (ii) a pipeline facility new text end .

(h) "Investments and expenses of a public utility" includes the investments
and expenses incurred by a public utility in connection with an energy conservation
improvement, including but not limited to:

(1) the differential in interest cost between the market rate and the rate charged on a
no-interest or below-market interest loan made by a public utility to a customer for the
purchase or installation of an energy conservation improvement;

(2) the difference between the utility's cost of purchase or installation of energy
conservation improvements and any price charged by a public utility to a customer for
such improvements.

(i) "Large customer facility" means all buildings, structures, equipment, and
installations at a single site that collectively (1) impose a peak electrical demand on an
electric utility's system of not less than 20,000 kilowatts, measured in the same way as the
utility that serves the customer facility measures electrical demand for billing purposes or
(2) consume not less than 500 million cubic feet of natural gas annually. In calculating
peak electrical demand, a large customer facility may include demand offset by on-site
cogeneration facilities and, if engaged in mineral extraction, may aggregate peak energy
demand from the large customer facility's mining and processing operations.

(j) "Large energy facility" has the meaning given it in section 216B.2421,
subdivision 2, clause (1).

(k) "Load management" means an activity, service, or technology to change the
timing or the efficiency of a customer's use of energy that allows a utility or a customer to
respond to wholesale market fluctuations or to reduce peak demand for energy or capacity.

(l) "Low-income programs" means energy conservation improvement programs that
directly serve the needs of low-income persons, including low-income renters.

(m) new text begin "Petroleum products" has the meaning given in section 296A.01, subdivision 42,
and includes propane, as defined in section 216B.02, subdivision 3a.
new text end

new text begin (n) "Pipeline facility" means a pipeline located within Minnesota with a diameter of
six inches or greater and through which natural gas, petroleum, or petroleum products are
transported under pressure to a utility, petroleum refinery, or other wholesale customer.
Pipeline facility includes natural gas compressor stations, petroleum pumping stations,
and other facilities necessary to physically transport fuel through a pipeline to a wholesale
customer, but does not include facilities used to transport natural gas, petroleum, or
petroleum products within a petroleum refinery, storage, or manufacturing facility.
new text end

new text begin (o) new text end "Qualifying utility" means a utility that supplies the energy to a customer that
enables the customer to qualify as a large customer facility.

deleted text begin (n) deleted text end new text begin (p) new text end "Waste heat recovered and used as thermal energy" means capturing
heat energy that would otherwise be exhausted or dissipated to the environment from
machinery, buildings, or industrial processes and productively using such recovered
thermal energy where it was captured or distributing it as thermal energy to other locations
where it is used to reduce demand-side consumption of natural gas, electric energy, or both.

deleted text begin (o) deleted text end new text begin (q) new text end "Waste heat recovery converted into electricity" means an energy recovery
process that converts otherwise lost energy from the heat of exhaust stacks or pipes used
for engines or manufacturing or industrial processes, or the reduction of high pressure
in water or gas pipelines.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 216B.241, subdivision 1a, is amended to read:

Subd. 1a.

Investment, expenditure, and contribution; public utility.

(a) For
purposes of this subdivision and subdivision 2, "public utility" has the meaning given it
in section 216B.02, subdivision 4. Each public utility shall spend and invest for energy
conservation improvements under this subdivision and subdivision 2 the following
amounts:

(1) for a utility that furnishes gas service, 0.5 percent of its gross operating revenues
from service provided in the state;

(2) for a utility that furnishes electric service, 1.5 percent of its gross operating
revenues from service provided in the state; and

(3) for a utility that furnishes electric service and that operates a nuclear-powered
electric generating plant within the state, two percent of its gross operating revenues
from service provided in the state.

For purposes of this paragraph (a), "gross operating revenues" do not include
revenues from large customer facilities exempted under paragraph (b), deleted text begin or deleted text end from commercial
gas customers that are exempted under paragraph (c) or (e) new text begin , or from a customer that is
a pipeline facility new text end .

(b) The owner of a large customer facility may petition the commissioner to exempt
both electric and gas utilities serving the large customer facility from the investment and
expenditure requirements of paragraph (a) with respect to retail revenues attributable to
the large customer facility. The filing must include a discussion of the competitive or
economic pressures facing the owner of the facility and the efforts taken by the owner
to identify, evaluate, and implement energy conservation and efficiency improvements.
A filing submitted on or before October 1 of any year must be approved within 90 days
and become effective January 1 of the year following the filing, unless the commissioner
finds that the owner of the large customer facility has failed to take reasonable measures
to identify, evaluate, and implement energy conservation and efficiency improvements.
If a facility qualifies as a large customer facility solely due to its peak electrical demand
or annual natural gas usage, the exemption may be limited to the qualifying utility if
the commissioner finds that the owner of the large customer facility has failed to take
reasonable measures to identify, evaluate, and implement energy conservation and
efficiency improvements with respect to the nonqualifying utility. Once an exemption is
approved, the commissioner may request the owner of a large customer facility to submit,
not more often than once every five years, a report demonstrating the large customer
facility's ongoing commitment to energy conservation and efficiency improvement after
the exemption filing. The commissioner may request such reports for up to ten years after
the effective date of the exemption, unless the majority ownership of the large customer
facility changes, in which case the commissioner may request additional reports for up to
ten years after the change in ownership occurs. The commissioner may, within 180 days
of receiving a report submitted under this paragraph, rescind any exemption granted under
this paragraph upon a determination that the large customer facility is not continuing
to make reasonable efforts to identify, evaluate, and implement energy conservation
improvements. A large customer facility that is, under an order from the commissioner,
exempt from the investment and expenditure requirements of paragraph (a) as of
December 31, 2010, is not required to submit a report to retain its exempt status, except as
otherwise provided in this paragraph with respect to ownership changes. No exempt large
customer facility may participate in a utility conservation improvement program unless the
owner of the facility submits a filing with the commissioner to withdraw its exemption.

(c) A commercial gas customer that is not a large customer facility and that
purchases or acquires natural gas from a public utility having fewer than 600,000 natural
gas customers in Minnesota may petition the commissioner to exempt gas utilities serving
the commercial gas customer from the investment and expenditure requirements of
paragraph (a) with respect to retail revenues attributable to the commercial gas customer.
The petition must be supported by evidence demonstrating that the commercial gas
customer has acquired or can reasonably acquire the capability to bypass use of the utility's
gas distribution system by obtaining natural gas directly from a supplier not regulated by
the commission. The commissioner shall grant the exemption if the commissioner finds
that the petitioner has made the demonstration required by this paragraph.

(d) The commissioner may require investments or spending greater than the amounts
required under this subdivision for a public utility whose most recent advance forecast
required under section 216B.2422 or 216C.17 projects a peak demand deficit of 100
megawatts or greater within five years under midrange forecast assumptions.

(e) A public utility or owner of a large customer facility may appeal a decision of the
commissioner under paragraph (b), (c), or (d) to the commission under subdivision 2. In
reviewing a decision of the commissioner under paragraph (b), (c), or (d), the commission
shall rescind the decision if it finds that the required investments or spending will:

(1) not result in cost-effective energy conservation improvements; or

(2) otherwise not be in the public interest.

new text begin (f) No pipeline facility may participate in a utility conservation improvement
program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to read:

Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) Each individual utility and association shall have an annual energy-savings
goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the
most recent three-year weather-normalized average. A utility or association may elect to
carry forward energy savings in excess of 1.5 percent for a year to the succeeding three
calendar years, except that savings from electric utility infrastructure projects allowed
under paragraph (d) may be carried forward for five years. A particular energy savings can
be used only for one year's goal.

(c) The commissioner must adopt a filing schedule that is designed to have all
utilities and associations operating under an energy-savings plan by calendar year 2010.

(d) In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based on
its historical conservation investment experience, customer class makeup, load growth, a
conservation potential study, or other factors the deleted text begin commissioner determines warrants deleted text end new text begin utility
or association asserts warrant new text end an adjustment. The commissioner new text begin :
new text end

new text begin (1) must approve a request by a municipal utility or cooperative electric association
to adjust the utility's or association's annual energy-savings goal;
new text end

new text begin (2) may approve a request from a public utility to adjust its annual energy-savings
goal; and
new text end

new text begin (3) new text end deleted text begin may not approve deleted text end new text begin is prohibited from approving new text end a plan of a public utility that
provides for an annual energy-savings goal of less than one percent of gross annual retail
energy sales from energy conservation improvements.

A new text begin public new text end utility deleted text begin or association deleted text end may include in its energy conservation plan energy
savings from electric utility infrastructure projects approved by the commission under
section 216B.1636 or waste heat recovery converted into electricity projects deleted text begin that deleted text end new text begin , each of
which new text end may count as energy savings new text begin only new text end in addition to a minimum energy-savings goal of
at least one percent for energy conservation improvements. new text begin Energy savings from electric
utility infrastructure projects, as defined in section 216B.1636, may be included in the
energy conservation plan of a municipal utility or cooperative electric association. new text end Electric
utility infrastructure projects must result in increased energy efficiency greater than that
which would have occurred through normal maintenance activity.

(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.

(f) An association or utility is not required to make energy conservation investments
to attain the energy-savings goals of this subdivision that are not cost-effective even
if the investment is necessary to attain the energy-savings goals. For the purpose of
this paragraph, in determining cost-effectiveness, the commissioner shall consider the
costs and benefits to ratepayers, the utility, participants, and society. In addition, the
commissioner shall consider the rate at which an association or municipal utility is
increasing its energy savings and its expenditures on energy conservation.

(g) On an annual basis, the commissioner shall produce and make publicly available
a report on the annual energy savings and estimated carbon dioxide reductions achieved
by the energy conservation improvement programs for the two most recent years for
which data is available. The commissioner shall report on program performance both in
the aggregate and for each entity filing an energy conservation improvement plan for
approval or review by the commissioner.

(h) By January 15, 2010, the commissioner shall report to the legislature whether
the spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to
serve the demand of a single customer at a single location, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the
demand of a single customer that primarily uses existing rights-of-way, unless the applicant
opts to request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using
natural gas;

(6) the modification of an existing electric generating plant to increase efficiency,
as long as the capacity of the plant is not increased more than ten percent or more than
100 megawatts, whichever is greater; deleted text begin or
deleted text end

(7) a wind energy conversion system or solar electric generation facility if the system
or facility is owned and operated by an independent power producer and the electric output
of the system or facility is not sold to an entity that provides retail service in Minnesota
or wholesale electric service to another entity in Minnesota other than an entity that is a
federally recognized regional transmission organization or independent system operator new text begin ; or
new text end

new text begin (8) an interstate pipeline traversing Minnesota whose termini lie outside the state new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to (1) a pipeline that has not filed a certificate of need application before the
effective date of this section, and (2) a pipeline that has a certificate of need application
pending before the commission on the effective date of this section.
new text end

Sec. 12.

Minnesota Statutes 2014, section 216C.20, subdivision 3, is amended to read:

Subd. 3.

Parking ramp.

No enclosed structure or portion of an enclosed structure
constructed after January 1, 1978, and used primarily as a commercial parking facility for
three or more motor vehicles shall be heated. Incidental heating resulting from building
exhaust air passing through a parking facility shall not be prohibited, provided that
substantially all useful heat has previously been removed from the air. new text begin The commissioner
of commerce may grant an exemption from this subdivision if the commercial parking is
integrated within a facility that has both public and private uses, the benefits to taxpayers
of the exemption exceed the costs, and all appropriate energy efficiency measures have
been considered.
new text end

Sec. 13.

new text begin [216E.023] PROHIBITION; SITING SOLAR SYSTEM; TREE
CUTTING.
new text end

new text begin No state or local site permit may be issued for a solar energy generating system that
would contribute to meeting the requirements of section 216B.1691, subdivision 2f, or
that is governed under section 216B.1641, if the solar energy generating system is to be
sited at a location where more than 75 percent of the trees standing in an area exceeding
three acres are proposed to be cut in order to accommodate construction of the solar
energy generating system.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:

Subd. 5.

Environmental review.

new text begin (a) new text end The commissioner of the Department of
Commerce shall prepare for the commission an environmental impact statement on each
proposed large electric generating plant or high-voltage transmission line for which a
complete application has been submitted. The commissioner shall not consider whether
or not the project is needed. No other state environmental review documents shall be
required. The commissioner shall study and evaluate any site or route proposed by an
applicant and any other site or route the commission deems necessary that was proposed in
a manner consistent with rules concerning the form, content, and timeliness of proposals
for alternate sites or routes.

new text begin (b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is
a large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 216H.01, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Cogeneration facility or combined heat and power facility.
new text end

new text begin "Cogeneration facility" or "combined heat and power facility" means a facility that:
new text end

new text begin (1) has the meaning given in United States Code, title 16, section 796, clause (18),
paragraph (A); and
new text end

new text begin (2) meets the applicable operating and efficiency standards contained in Code of
Federal Regulations, title 18, part 292.205.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:

Subdivision 1.

Definition; new large energy facility.

For the purpose of this
section, "new large energy facility" means a large energy facility, as defined in section
216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, but
does not include a facility that (1) uses natural gas as a primary fuel, (2) is new text begin a cogeneration
facility or combined heat and power facility located in the electric service area of a public
utility, as defined in section 216B.02, subdivision 4, or is new text end designed to provide peaking,
intermediate, emergency backup, or contingency services, (3) uses a simple cycle or
combined cycle turbine technology, and (4) is capable of achieving full load operations
within 45 minutes of startup for a simple cycle facility, or is capable of achieving
minimum load operations within 185 minutes of startup for a combined cycle facility.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Laws 2001, chapter 130, section 3, is amended to read:

Sec. 3. ASSESSMENT.

A propane education and research council, established and certified pursuant to
section 2, may assess propane producers and retail marketers an amount not to exceed deleted text begin one
mill deleted text end new text begin the maximum assessment authorized in United States Code, title 15, section 6405(a),
new text end per gallon of odorized propane in a manner established by the council in compliance with
United States Code, title 15, section 6405, subsections (a) to (c). Propane producers and
retail marketers shall be responsible for the amounts assessed.

Sec. 18. new text begin PROHIBITION ON EXPENDITURE OF STATE FUNDS; CLEAN
POWER PLAN.
new text end

new text begin No state agency shall expend state funds to develop a state plan as required by the
federal Clean Power Plan unless and until a final decision in the case of West Virginia,
et. al., v. United States Environmental Protection Agency, et. al., determines that the
federal Environmental Protection Agency has legal authority to require the submission
of such state plans.
new text end

new text begin For the purposes of this section, "Clean Power Plan" means the final rule of the
federal Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric
Utility Generating Units, issued by the United States Environmental Protection Agency in
Docket No. EPA-HQ-OAR-2013-0602, and any subsequent amendments made to the plan.
new text end