HF 4289

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 04/23/2018 01:24pm

A bill for an act
relating to state government; appropriating money for jobs and energy;
appropriating money for the Department of Employment and Economic
Development, Housing Finance Agency, Department of Commerce, Public Facilities
Authority, and Department of Labor and Industry; making changes to energy
provisions; authorizing carbon reduction facilities; modifying the renewable
development account; establishing grant programs; regulating modular and
manufactured homes; requiring legislative review of certain rules; modifying
housing bond allocation; modifying the minimum wage for employees receiving
gratuities; making OSHA federal conformity changes; authorizing management
of Lake Winona; authorizing a satellite broadband pilot project; modifying the
taconite economic development fund; amending Minnesota Statutes 2016, sections
116J.394; 116J.395, subdivisions 2, 5, 7; 177.24, subdivision 1; 182.666,
subdivisions 1, 2, 3, 4, 5, by adding a subdivision; 216A.03, by adding a
subdivision; 216B.16, by adding a subdivision; 216B.243, subdivision 8; 216E.03,
subdivision 9; 216E.04, subdivisions 2, 7; 216F.01, subdivision 2; 298.28,
subdivision 9a; 299D.085, by adding a subdivision; 326B.805, subdivision 3;
326B.815, subdivision 1; 327.31, by adding a subdivision; 327B.041; 327C.095,
subdivisions 4, 6, 12, 13, by adding a subdivision; 462A.222, subdivision 3;
474A.02, by adding subdivisions; 474A.03, subdivision 1; 474A.04, subdivision
1a; 474A.047, subdivisions 1, 2; 474A.061; 474A.062; 474A.091; 474A.131;
474A.14; Minnesota Statutes 2017 Supplement, sections 116C.779, subdivision
1; 116C.7792; 216B.164, subdivision 5; 216B.1691, subdivision 2f; 298.227; Laws
2014, chapter 312, article 2, section 14, as amended; Laws 2017, chapter 94, article
1, sections 2, subdivision 2, as amended; 4, subdivisions 3, 5; article 10, sections
28; 29; proposing coding for new law in Minnesota Statutes, chapters 14; 116C;
216B; 216C; 327; repealing Minnesota Statutes 2016, sections 177.24, subdivision
2; 216B.2423; 471.9996, subdivision 2.

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

ARTICLE 1

JOBS AND ENERGY APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS new text end

new text begin The sums shown in the columns under "Appropriations" are added to appropriations in
Laws 2017, chapter 94, 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 "2018" and "2019" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
respectively. Appropriations for the fiscal year ending June 30, 2018, 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 2018 new text end		new text begin 2019 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 20,320,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin $19,720,000 new text end
new text begin Renewable Development new text end	new text begin -0- new text end	new text begin $600,000 new text end

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

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

new text begin 0 new text end

new text begin 5,320,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin $4,720,000 new text end
new text begin Renewable Development new text end	new text begin -0- new text end	new text begin $600,000 new text end

new text begin (a) $50,000 in fiscal year 2019 is for a grant
to Advocating Change Together to address
barriers to employment for people with
disabilities and provide skills training. This
appropriation is available until June 30, 2021.
new text end

new text begin (b) $400,000 in fiscal year 2019 is for a grant
to Project Build Minnesota for a statewide
public awareness campaign to encourage
middle school and high school students to
consider careers in the construction industry,
with a special emphasis on reaching
individuals and groups that are economically
disadvantaged or historically underrepresented
in the construction industry. Grant funds must
be used to develop educational resources,
including a Web site; perform outreach to
students, parents, guidance counselors, and
others about opportunities in the construction
industry; and partner with educational
institutions and nonprofits to offer technical
training. This is a onetime appropriation.
new text end

new text begin (c) $1,500,000 in fiscal year 2019 is for a grant
to the city of Cambridge for costs associated
with relocating and constructing a propane
distribution facility and for costs associated
with demolition, cleanup and restoration of
the existing propane facility. Eligible costs
include: land acquisition, site preparation and
improvements, moving expenses, building
construction, rail construction, rail switch
construction, demolition, environmental
remediation, engineering, and other necessary
site improvements. This is a onetime
appropriation and is available until the project
is completed or abandoned subject to
Minnesota Statutes, section 16A.642.
new text end

new text begin (d) $590,000 in fiscal year 2019 is for grants
to centers for independent living under
Minnesota Statutes, section 268A.11. The
grant money under this paragraph must be
used to hire eight full-time employees to
provide services to veterans. This is a onetime
appropriation and is available until June 30,
2021.
new text end

new text begin (e) $150,000 in fiscal year 2019 is for transfer
to the Cook County Higher Education Board
to provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This is a onetime
appropriation.
new text end

new text begin (f) $250,000 in fiscal year 2019 is for a grant
to Logistic Specialties, Inc. to create a pilot
workforce and development program in the
east metropolitan area focused on government
contract procurement and targeted to low- and
moderate-income communities of color. Every
six months, beginning on December 15, 2019,
the commissioner of employment and
economic development must submit a brief
update on the progress of the pilot project to
the chairs and ranking minority members of
the legislative committees with jurisdiction
over economic development. A final report
on pilot outcomes must be submitted to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
economic development by February 15, 2020.
This is a onetime appropriation and funds are
available until June 30, 2020.
new text end

new text begin (g) $500,000 in fiscal year 2019 is for job
training grants under Minnesota Statutes,
section 116L.42. This is a onetime
appropriation.
new text end

new text begin (h) $250,000 in fiscal year 2019 is for a grant
to the Hallie Q. Brown Community Center,
Inc., for youth intervention services through
the community ambassadors and youth
employment program. This is a onetime
appropriation.
new text end

new text begin (i) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(k), $600,000 in fiscal year 2019 is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, for
a grant to the Board of Regents of the
University of Minnesota for academic and
applied research through MnDRIVE at the
Natural Resources Research Institute. Of this
amount, $300,000 is to develop and
demonstrate biomass conversion technology
for higher value fuels and $300,000 is to
develop and demonstrate advanced biogas
technologies for clean methane fuels. Both
programs must focus on translation and
deployment of technologies developed in
partnerships between industry and the
University of Minnesota. This is a onetime
appropriation.
new text end

new text begin (j) $230,000 in fiscal year 2019 is for a grant
to a city of the second class that is designated
as an economically depressed area by the
United States Department of Commerce. The
grant is for economic development,
redevelopment, and job creation programs and
projects. This is a onetime appropriation and
is available until June 30, 2021.
new text end

new text begin (k)(1) $300,000 in fiscal year 2019 for a grant
to the Minnesota Environmental Science and
Economic Review Board (MESERB) to
review water quality regulation and national
pollutant discharge elimination system permits
(NPDES). This grant is subject to Minnesota
Statutes, section 16B.98. MESERB may select
the water quality regulations and permits to
be reviewed but must give preference to
reviewing any draft NPDES permit that has
new effluent limit requirements for a publicly
owned wastewater treatment facility outside
the seven county metropolitan area. Any
permit review must analyze the technical
accuracy of the permit and the impact on both
business and residential rates, the water quality
benefit of permit compliance, and the
anticipated funding for the permittee from
federal and state sources. This is a onetime
appropriation and is available until June 30,
2021.
new text end

new text begin (2) Upon completion of the permit review,
MESERB must provide a copy of the review
to the permittee and the commissioner of the
Pollution Control Agency. MESERB must
also submit a report summarizing its findings
in each permit review performed in the
previous calendar year to the chairs and
ranking minority members of the legislative
committees with jurisdiction over capital
investment, environmental policy and finance,
and economic development.
new text end

new text begin (l) $500,000 in fiscal year 2019 is for a grant
to Comunidades Latinas Unidas en Servicio
(CLUES) to acquire property and to construct,
furnish, and equip a new education and
technology institute connected to CLUES
headquarters in St. Paul to provide education
and community gathering space. This
appropriation is available when the
commissioner of management and budget
determines that sufficient resources have been
committed to complete the project, as required
by Minnesota Statutes, section 16A.502. This
appropriation is onetime and available until
the project is completed or abandoned, subject
to Minnesota Statutes, section 16A.642.
new text end

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

new text begin 0 new text end

new text begin 15,000,000 new text end

new text begin (a) $15,000,000 in fiscal year 2019 is for
transfer to the border-to-border broadband
fund account in the special revenue fund
established under Minnesota Statutes, section
116J.396 and may be used for purposes
provided in Minnesota Statutes, section
116J.395. This appropriation is onetime and
is available until spent. Of this appropriation,
up to three percent is for costs incurred by the
commissioner to administer Minnesota
Statutes, section 116J.395. Administrative
costs may include the following activities
related to measuring progress toward the
state's broadband goals established in
Minnesota Statutes, section 237.012:
new text end

new text begin (1) collecting broadband deployment data from
Minnesota providers, verifying its accuracy
through on-the-ground testing, and creating
state and county maps available to the public
showing the availability of broadband service
at various upload and download speeds
throughout Minnesota;
new text end

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

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

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

new text begin (b) Of the amount appropriated in paragraph
(a), $750,000 is for grants to satellite
broadband providers under Minnesota
Statutes, section 116J.395.
new text end

Sec. 3. new text begin HOUSING FINANCE AGENCY 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 1,880,000 new text end

new text begin (a) $1,000,000 in fiscal year 2019 is for
transfer to the housing development fund for
the programs in Minnesota Statutes, sections
462A.201, subdivision 2, paragraph (a), clause
(4), and 462A.204, subdivision 8. The agency
may allocate this appropriation as necessary
to these two programs to facilitate the
Homework Starts with Home program. This
is a onetime appropriation.
new text end

new text begin (b) $500,000 in fiscal year 2019 is for park
infrastructure grants under Minnesota Statutes,
section 462A.2035, subdivision 1b. This is a
onetime appropriation.
new text end

new text begin (c) $380,000 in fiscal year 2019 is for grants
to organizations to provide lead risk
assessments by a lead inspector or a lead risk
assessor licensed by the commissioner
pursuant to Minnesota Statutes, section
144.9505, to test residential units for the
presence of lead hazards. Grant programs
receiving funding under this section must
provide funding for lead risk assessments for
properties built before 1978 to:
new text end

new text begin (1) landlords of residential buildings for
testing on units where the tenant's income does
not exceed 60 percent of area median income;
or
new text end

new text begin (2) tenants with an income that does not
exceed 60 percent of area median income.
new text end

new text begin The commissioner shall award grant funding
to target grant resources to landlords and
tenants where there are high concentrations
of lead poisoning in children based on the
information provided from the commissioner
of health. Up to ten percent of the grant may
be used to administer the grant and provide
education and outreach about lead health
hazards. This is a onetime appropriation.
new text end

Sec. 4. new text begin DEPARTMENT OF COMMERCE 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 7,100,000 new text end

new text begin This appropriation is from the renewable
development fund.
new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(k), $3,000,000 in fiscal year 2019 is from the
renewable development account in the special
revenue fund under Minnesota Statutes,
section 116C.779, subdivision 1, for the local
government emerald ash borer removal grant
program under Minnesota Statutes, section
216C.437. This appropriation is onetime and
available until June 30, 2021.
new text end

new text begin (b)(1) $1,000,000 in fiscal year 2019 is from
the renewable development account in the
special revenue fund under Minnesota
Statutes, section 116C.779, subdivision 1, to
fund grants for demonstration projects that
assess the technical and economic
effectiveness of deploying energy storage
systems to restore electrical energy to critical
health care facilities following electrical
outages due to storms or other catastrophic
events. This is a onetime appropriation.
new text end

new text begin (2) The commissioner of commerce shall
endeavor to make grant awards under this
section for projects at critical health care
facilities located in all regions of the state.
new text end

new text begin (3) For the purposes of this paragraph, "energy
storage system" means a commercially
available technology capable of (i) absorbing
and storing electrical energy, and (ii)
dispatching sorted electrical energy for use at
a later time.
new text end

new text begin (c) $1,100,000 in fiscal year 2019 is from the
renewable development account in the special
revenue fund under Minnesota Statutes,
section 116C.779, subdivision 1, for the
residential biomass heating system grant
program under Minnesota Statutes, section
216C.419. This is a onetime appropriation and
available until June 30, 2020.
new text end

new text begin (d) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(k), $2,000,000 in fiscal year 2019 is
appropriated from the renewable development
account in the special revenue fund established
in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner for a grant
to the public utility that owns the Prairie Island
nuclear generation plant, for the following
purposes:
new text end

new text begin (1) $1,000,000 is to conduct a study to
determine the most rapid, safe, and economical
methods to remove spent nuclear fuel from
the independent spent fuel storage installations
at the Prairie Island and Monticello nuclear
electric generating plants, including, but not
limited to, an evaluation of alternative modes
of transport, possible routes, and infrastructure
needs; and
new text end

new text begin (2) $1,000,000 is to support the preparation
of applications by independent private parties
seeking a license from the Nuclear Regulatory
Commission to establish a consolidated
interim storage facility that could store spent
nuclear fuel currently stored at the independent
spent fuel storage installations at the
Monticello and Prairie Island nuclear electric
generating plants.
new text end

new text begin By July 15, 2019, the public utility that owns
the Prairie Island nuclear electric generating
plant must submit a report to the chairs and
ranking minority members of the legislative
committees with jurisdiction over electric
utilities and to the commissioner describing
the activities on which funds have been
expended under this paragraph, the results or
progress of any study or initiative, and future
planned uses of the funds. The public utility
must submit updated reports to the same
persons each succeeding July 15 until all funds
have been expended or unexpended funds have
been returned to the account. Any funds not
expended at the time of the final report must
be returned to the account. This is a onetime
appropriation.
new text end

Sec. 5. 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 3,550,000 new text end

new text begin (a) $750,000 in fiscal year 2019 is for a grant
to the city of Deer River to predesign, design,
engineer, and construct a stabilization pond
and to predesign, design, construct, and install
the replacement and expansion of storm sewer
lines, sanitary sewer lines, and water lines in
the city of Deer River. This appropriation is
available when the commissioner of
management and budget determines that
resources sufficient to complete the project
are committed to the project, as required in
Minnesota Statutes, section 16A.502. This is
a onetime appropriation and is available until
the project is completed or abandoned subject
to Minnesota Statutes, section 16A.642.
new text end

new text begin (b) $600,000 in fiscal year 2019 is for a grant
to the Alexandria Lake Area Sanitary District
for lake management activities, including but
not limited to alum treatment in Lake Agnes,
carp removal in Lake Winona, and related
management and reassessment measures that
are intended to achieve and maintain
compliance with water quality standards for
phosphorus and the total maximum daily load
for Lake Winona. This is a onetime
appropriation and is available until June 30,
2021.
new text end

new text begin (c) $1,100,000 in fiscal year 2019 is for a grant
to the city of Cold Spring to acquire land,
predesign, design, engineer, construct, furnish,
and equip water infrastructure, including
drilling new wells, a water treatment plant,
and piping for water distribution. This is a
onetime appropriation and is available until
the project is completed or abandoned subject
to Minnesota Statutes, section 16A.642.
new text end

new text begin (d) $1,100,000 in fiscal year 2019 is for a
grant to the Big Lake Area Sanitary District
to construct a pressure sewer system and force
main to convey sewage to the Western Lake
Superior Sanitary District connection in the
city of Cloquet. This is a onetime
appropriation and is available until the project
is completed or abandoned subject to
Minnesota Statutes, section 16A.642.
new text end

Sec. 6.

Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended by Laws
2017, First Special Session chapter 7, section 2, is amended to read:

Subd. 2. Business and Community Development

$

46,074,000

$

deleted text begin 40,935,000 deleted text end new text begin 30,585,000 new text end

Appropriations by Fund
General	$43,363,000	deleted text begin $38,424,000 deleted text end new text begin $28,074,000 new text end
Remediation	$700,000	$700,000
Workforce Development	$1,861,000	$1,811,000
Special Revenue	$150,000	-0-

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

(b) $750,000 each year is for grants to the
Neighborhood Development Center for small
business programs:

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

(c) $1,175,000 each year is for a grant to the
Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services, including
services to entrepreneurs with businesses that
have the potential to create job opportunities
for unemployed and underemployed people,
with an emphasis on minority-owned
businesses. This is a onetime appropriation.

(d) $125,000 each year is for a grant to the
White Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities. This is a onetime appropriation.

(e)(1) $12,500,000 deleted text begin each year is deleted text end new text begin in fiscal year
2018 and $7,500,000 in fiscal year 2019 are new text end
for the Minnesota investment fund under
Minnesota Statutes, section 116J.8731. Of this
amount, the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until spent. new text begin In fiscal year 2020, the base
amount is $12,500,000. For fiscal year 2021
and beyond, the base amount is $9,500,000.
new text end

(2) Of the amount appropriated in fiscal year
2018, $4,000,000 is for a loan to construct and
equip a wholesale electronic component
distribution center investing a minimum of
$200,000,000 and constructing a facility at
least 700,000 square feet in size. Loan funds
may be used for purchases of materials,
supplies, and equipment for the construction
of the facility and are available from July 1,
2017, to June 30, 2021. The commissioner of
employment and economic development shall
forgive the loan after verification that the
project has satisfied performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.

(3) Of the amount appropriated in fiscal year
2018, $700,000 is for a loan to extend an
effluent pipe that will deliver reclaimed water
to an innovative waste-to-biofuel project
investing a minimum of $150,000,000 and
constructing a facility that is designed to
process approximately 400,000 tons of waste
annually. Loan funds are available until June
30, 2021.

new text begin (4) Of the amount appropriated in fiscal year
2019, $2,000,000 is for one or more grants to
Florence Township in Goodhue County to
predesign, design, engineer, construct, and
install infrastructure for storm water
protection, wells, roads, public safety, and
power access in southeastern Minnesota, in
partnership with a tribal government and a
nonprofit organization, to enable future
economic development and increase economic
activity in southeastern Minnesota. The grant
recipient must provide a nonstate contribution
in an amount at least equal to the grant. This
portion of the appropriation is available until
the project is completed or abandoned subject
to Minnesota Statutes, section 16A.642.
new text end

new text begin (5) Of the amount appropriated in fiscal year
2019, $500,000 is for a grant to Mille Lacs
County to provide loans as described in
Minnesota Statutes, section 116J.8731, for
eligible projects located within one of the
follow 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 (6) Of the amount appropriated in fiscal year
2019, $500,000 is for a grant to the city of
Minnetonka for a high-risk, high-return jobs
retention and creation initiative to be
conducted by a local organization that
produces lactic acid/lactate, to help grow and
expand the bioeconomy in Minnesota. The
grant under this clause is not subject to the
limitations under Minnesota Statutes, section
116J.8731, subdivision 5, or the performance
goals and contractual obligations under
Minnesota Statutes, section 116J.8731,
subdivision 7.
new text end

new text begin (7) Of the amount appropriated in fiscal year
2019, $500,000 is for a loan to a paper mill in
Duluth to support the operation and
manufacture of packaging paper grades. The
company that owns the paper mill must spend
$15,000,000 on expansion activities by
December 31, 2019, in order to be eligible to
receive funds under this appropriation.
Appropriation funds may be used for the mill's
equipment, materials, supplies, and other
operating expenses. The commissioner of
employment and economic development shall
forgive a portion of the loan each year after
verification that the mill has retained 195
full-time jobs over a period of five years and
has satisfied other performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.
new text end

(f) $8,500,000 deleted text begin each year is deleted text end new text begin in fiscal year 2018
and $1,500,000 in fiscal year 2019 are new text end for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses. This
appropriation is available until expended. In
fiscal year 2020 deleted text begin and beyond deleted text end , the base amount
is $8,000,000. new text begin In fiscal year 2021 and beyond,
the base amount is $5,000,000.
new text end

(g) $1,647,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent. In fiscal year 2020 and beyond, the base
amount is $1,772,000.

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

(i) $163,000 each year is for the Minnesota
Film and TV Board. The appropriation in each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.

(j) $500,000 each year is from the general fund
for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until June 30,
2021.

(k) $139,000 each year is for a grant to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.

(l)(1) $1,300,000 deleted text begin each year is deleted text end new text begin in fiscal year
2018 and $2,200,000 in fiscal year 2019 are new text end
for the greater Minnesota business
development public infrastructure grant
program under Minnesota Statutes, section
116J.431. This appropriation is available until
spent. If the appropriation for either year is
insufficient, the appropriation for the other
year is available. In fiscal year 2020 and
beyond, the base amount is $1,787,000. Funds
available under this paragraph may be used
for site preparation of property owned and to
be used by private entities.

(2) Of the amounts appropriated, $1,600,000
in fiscal year 2018 is for a grant to the city of
Thief River Falls to support utility extensions,
roads, and other public improvements related
to the construction of a wholesale electronic
component distribution center at least 700,000
square feet in size and investing a minimum
of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is
not required. Grant funds are available from
July 1, 2017, to June 30, 2021.

(m) $876,000 the first year and $500,000 the
second year are for the Minnesota emerging
entrepreneur loan program under Minnesota
Statutes, section 116M.18. Funds available
under this paragraph are for transfer into the
emerging entrepreneur program special
revenue fund account created under Minnesota
Statutes, chapter 116M, and are available until
spent. Of this amount, up to four percent is for
administration and monitoring of the program.
In fiscal year 2020 and beyond, the base
amount is $1,000,000.

(n) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.

(o) $250,000 in fiscal year 2018 is for a grant
to the Minnesota Design Center at the
University of Minnesota for the greater
Minnesota community design pilot project.

(p) $275,000 in fiscal year 2018 is from the
general fund to the commissioner of
employment and economic development for
a grant to Community and Economic
Development Associates (CEDA) for an
economic development study and analysis of
the effects of current and projected economic
growth in southeast Minnesota. CEDA shall
report on the findings and recommendations
of the study to the committees of the house of
representatives and senate with jurisdiction
over economic development and workforce
issues by February 15, 2019. All results and
information gathered from the study shall be
made available for use by cities in southeast
Minnesota by March 15, 2019. This
appropriation is available until June 30, 2020.

(q) $2,000,000 in fiscal year 2018 is for a
grant to Pillsbury United Communities for
construction and renovation of a building in
north Minneapolis for use as the "North
Market" grocery store and wellness center,
focused on offering healthy food, increasing
health care access, and providing job creation
and economic opportunities in one place for
children and families living in the area. To the
extent possible, Pillsbury United Communities
shall employ individuals who reside within a
five mile radius of the grocery store and
wellness center. This appropriation is not
available until at least an equal amount of
money is committed from nonstate sources.
This appropriation is available until the project
is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.

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

(s) $875,000 each year is for the host
community economic development grant
program established in Minnesota Statutes,
section 116J.548.

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

(u) $161,000 each year is from the workforce
development fund for a grant to the Rural
Policy and Development Center. This is a
onetime appropriation.

(v) $300,000 each year is from the workforce
development fund for a grant to Enterprise
Minnesota, Inc. This is a onetime
appropriation.

(w) $50,000 in fiscal year 2018 is from the
workforce development fund for a grant to
Fighting Chance for behavioral intervention
programs for at-risk youth.

(x) $1,350,000 each year is from the
workforce development fund for job training
grants under Minnesota Statutes, section
116L.42.

(y)(1) $519,000 in fiscal year 2018 deleted text begin is deleted text end new text begin and
$750,000 in fiscal year 2019 are new text end for grants to
local communities to increase the supply of
quality child care providers in order to support
economic development. At least 60 percent of
grant funds must go to communities located
outside of the seven-county metropolitan area,
as defined under Minnesota Statutes, section
473.121, subdivision 2. Grant recipients must
obtain a 50 percent nonstate match to grant
funds in either cash or in-kind contributions.
Grant funds available under this paragraph
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-ups or expansions, 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 that have
documented a shortage of child care providers
in the area. new text begin At least half of the money
appropriated in fiscal year 2019 is reserved
for new grant recipients. The base amount in
fiscal year 2020 and beyond is $0.
new text end

(2) Within one year of receiving grant funds,
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.

(3) By January 1 of each year, starting in 2019,
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.

(z) $319,000 in fiscal year 2018 is from the
general fund for a grant to the East Phillips
Improvement Coalition to create the East
Phillips Neighborhood Institute (EPNI) to
expand culturally tailored resources that
address small business growth and create
green jobs. The grant shall fund the
collaborative work of Tamales y Bicicletas,
Little Earth of the United Tribes, a nonprofit
serving East Africans, and other coalition
members towards developing EPNI as a
community space to host activities including,
but not limited to, creation and expansion of
small businesses, culturally specific
entrepreneurial activities, indoor urban
farming, job training, education, and skills
development for residents of this low-income,
environmental justice designated
neighborhood. Eligible uses for grant funds
include, but are not limited to, planning and
start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. This
appropriation is available until June 30, 2020.

(aa) $150,000 the first year is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, to
conduct the biomass facility closure economic
impact study.

(bb)(1)$300,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is available until
June 30, 2020. The appropriation shall fund
the work of African Economic Development
Solutions, the Asian Economic Development
Association, the Dayton's Bluff Community
Council, and the Latino Economic
Development Center in a collaborative
approach to economic development that is
effective with smaller, culturally diverse
communities that seek to increase the
productivity and success of new immigrant
and minority populations living and working
in the community. Programs shall provide
minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.

(2) In fiscal year 2019 ESEC shall use funds
to share its integrated service model and
evolving collaboration principles with civic
and economic development leaders in greater
Minnesota communities which have diverse
populations similar to the East Side of St. Paul.
ESEC shall submit a report of activities and
program outcomes, including quantifiable
measures of success annually to the house of
representatives and senate committees with
jurisdiction over economic development.

(cc) $150,000 in fiscal year 2018 is for a grant
to Mille Lacs County for the purpose of
reimbursement grants to small resort
businesses located in the city of Isle with less
than $350,000 in annual revenue, at least four
rental units, which are open during both
summer and winter months, and whose
business was adversely impacted by a decline
in walleye fishing on Lake Mille Lacs.

(dd)(1) $250,000 in fiscal year 2018 is for a
grant to the Small Business Development
Center hosted at Minnesota State University,
Mankato, for a collaborative initiative with
the Regional Center for Entrepreneurial
Facilitation. Funds available under this section
must be used to provide entrepreneur and
small business development direct professional
business assistance services in the following
counties in Minnesota: Blue Earth, Brown,
Faribault, Le Sueur, Martin, Nicollet, Sibley,
Watonwan, and Waseca. For the purposes of
this section, "direct professional business
assistance services" must include, but is not
limited to, pre-venture assistance for
individuals considering starting a business.
This appropriation is not available until the
commissioner determines that an equal amount
is committed from nonstate sources. Any
balance in the first year does not cancel and
is available for expenditure in the second year.

(2) Grant recipients shall report to the
commissioner by February 1 of each year and
include information on the number of
customers served in each county; the number
of businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates in each county. By April
1 of each year, the commissioner shall report
the information submitted by grant recipients
to the chairs of the standing committees of the
house of representatives and the senate having
jurisdiction over economic development
issues.

(ee) $500,000 in fiscal year 2018 is for the
central Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. This appropriation is available until
June 30, 2022.

(ff) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

Sec. 7.

Laws 2017, chapter 94, article 1, section 4, subdivision 3, is amended to read:

Subd. 3. Labor Standards and Apprenticeship

3,645,000

deleted text begin 3,668,000 deleted text end new text begin 3,868,000 new text end

Appropriations by Fund
General	1,776,000	deleted text begin 1,790,000 deleted text end new text begin 1,990,000 new text end
Workforce Development	1,869,000	1,878,000

(a) $500,000 deleted text begin each year is from the general
fund deleted text end new text begin in fiscal year 2018 and $700,000 in fiscal
year 2019 are new text end for wage theft prevention under
the division of labor standards.

(b) $100,000 each year is from the workforce
development fund for labor education and
advancement program grants under Minnesota
Statutes, section 178.11, to expand and
promote registered apprenticeship training for
minorities and women.

(c) $300,000 each year is from the workforce
development fund for the PIPELINE program.

(d) $200,000 each year is from the workforce
development fund for grants to the
Construction Careers Foundation for the
Helmets to Hardhats Minnesota initiative.
Grant funds must be used to recruit, retain,
assist, and support National Guard, reserve,
and active duty military members' and
veterans' participation into apprenticeship
programs registered with the Department of
Labor and Industry and connect them with
career training and employment in the building
and construction industry. The recruitment,
selection, employment, and training must be
without discrimination due to race, color,
creed, religion, national origin, sex, sexual
orientation, marital status, physical or mental
disability, receipt of public assistance, or age.
This is a onetime appropriation.

(e) $1,029,000 each year is from the workforce
development fund for the apprenticeship
program under Minnesota Statutes, chapter
178.

(f) $150,000 each year is from the workforce
development fund for prevailing wage
enforcement.

Sec. 8.

Laws 2017, chapter 94, article 1, section 4, subdivision 5, is amended to read:

Subd. 5. General Support

6,239,000

6,539,000

Appropriations by Fund
Workforce Development Fund	200,000	500,000
Workers' Compensation	6,039,000	6,039,000

(a) Except as provided in paragraphs (b) and
(c), this appropriation is from the workers'
compensation fund.

(b) $200,000 in fiscal year 2018 is from the
workforce development fund for the
commissioner of labor and industry to convene
and collaborate with stakeholders as provided
under Minnesota Statutes, section 175.46,
subdivision 3, and to develop youth skills
training competencies for approved
occupations. This is a onetime appropriation.

(c) $500,000 in fiscal year 2019 is from the
workforce development fund to administer the
youth skills training program under Minnesota
Statutes, section 175.46. The commissioner
shall award up to five grants each year to local
partnerships located throughout the state, not
to exceed $100,000 per local partnership grant.
The commissioner may use a portion of this
appropriation for administration of the grant
program. The base amount for this program
is deleted text begin $500,000 deleted text end new text begin $750,000 new text end each year beginning in
fiscal year 2020.

ARTICLE 2

ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the fund
for each producer shall be released by the commissioner after review by a joint committee
consisting of an equal number of representatives of the salaried employees and the
nonsalaried production and maintenance employees of that producer. The District 11 director
of the United States Steelworkers of America, on advice of each local employee president,
shall select the employee members. In nonorganized operations, the employee committee
shall be elected by the nonsalaried production and maintenance employees. The review
must be completed no later than six months after the producer presents a proposal for
expenditure of the funds to the committee. The funds held pursuant to this section may be
released only for workforce development deleted text begin and associated public facility improvement deleted text end ,
concurrent reclamation, deleted text begin or for acquisition of deleted text end plant and stationary mining equipment and
facilities for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure equal to the amount of the distribution to be used for the same purpose deleted text begin beginning
with distributions in 2014. Effective for proposals for expenditures of money from the fund
beginning May 26, 2007, the commissioner may not release the funds before the next
scheduled meeting of the board deleted text end . If a proposed expenditure is not approved by the
commissioner, after consultation with the advisory board, the funds must be deposited in
the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a taconite
production facility is sold after operations at the facility had ceased, any money remaining
in the fund for the former producer may be released to the purchaser of the facility on the
terms otherwise applicable to the former producer under this section. If a producer fails to
provide matching funds for a proposed expenditure within six months after the commissioner
approves release of the funds, the funds deleted text begin are available for release to another producer in
proportion to the distribution provided and under the conditions of this section deleted text end new text begin may be
released by the commissioner for deposit in the taconite area environmental protection fund
created in section 298.223 new text end . Any portion of the fund which is not released by the commissioner
within one year of its deposit in the fund shall be deleted text begin divided between deleted text end new text begin distributed to new text end the taconite
environmental protection fund deleted text begin created in section 298.223 and the Douglas J. Johnson
economic protection trust fund created in section 298.292 for placement in their respective
special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite
environmental protection fund and one-third to the Douglas J. Johnson economic protection
trust fund 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. 2.

Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:

Subd. 9a.

Taconite economic development fund.

(a) 25.1 cents per ton for distributions
in 2002 and thereafter must be paid to the taconite economic development fund. No
distribution shall be made under this paragraph in 2004 or any subsequent year in which
total industry production falls below 30 million tons. Distribution shall only be made to a
new text begin Minnesota new text end taconite new text begin pellet new text end producer's fund under section 298.227 if the producer timely pays
its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the
due dates provided by an administrative agreement with the commissioner.

(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold
in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed
pellets shall be paid to the taconite economic development fund. The amount paid shall not
exceed $700,000 annually for all deleted text begin companies deleted text end new text begin Minnesota taconite pellet producers new text end . If the
initial amount to be paid to the fund exceeds this amount, each deleted text begin company's deleted text end new text begin Minnesota taconite
pellet producer's new text end payment shall be prorated so the total does not exceed $700,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 31, 2016.
new text end

Sec. 3. new text begin TRANSFER 2018 DISTRIBUTION ONLY.
new text end

new text begin For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28,
subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after
distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2018 distribution, and the transfer
must be made within ten days of the August 2018 payment.
new text end

Sec. 4. new text begin DISLOCATED WORKER RAPID RESPONSE ACTIVITY.
new text end

new text begin Notwithstanding anything to the contrary, of the money appropriated to the Job Skills
Partnership Board for the purposes of Minnesota Statutes, section 116L.17, under Minnesota
Statutes, section 116L.20, subdivision 2, at least $650,000 in fiscal year 2019 must be used
for rapid response activities under Minnesota Statutes, section 116L.17, subdivision 10, at
Career Solutions in St. Cloud, to address the substantial anticipated job losses at the
Electrolux plant and in related industries affected by its closure. Grant funds may be used
for, but are not limited to, GED programs, English language courses, computer literacy
efforts, and training in the manufacturing and construction trades. In addition, the
commissioner of employment and economic development is directed to take all necessary
steps, including application for any required federal waivers, to begin providing services
to affected workers before December 31, 2018.
new text end

Sec. 5. new text begin USE OF LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116J.8731, and any law to the contrary, a
home rule charter or statutory city, county, or town may, before July 1, 2018, commit money
received from the repayment of funds awarded under Minnesota Statutes, section 116J.8731,
to a business revolving loan fund partially funded by the federal government. Once
committed, funds may be used for any purpose allowed by the federal program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2007.
new text end

Sec. 6. new text begin REVISOR'S INSTRUCTION; MIF NAME CHANGE TO N-SODA.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall change the term "Minnesota investment
fund" to "North Star Opportunity and Development Account" wherever it is apparent from
context that the term "Minnesota investment fund" refers to the program under Minnesota
Statutes, section 116J.8731.
new text end

ARTICLE 3

ENERGY

Section 1.

Minnesota Statutes 2017 Supplement, section 116C.779, subdivision 1, is
amended to read:

Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs new text begin (e) and new text end (f) deleted text begin and (g) deleted text end , and sections 116C.7792 and 216C.41, are
not subject to transfer under this paragraph.

(c) deleted text begin Except as provided in subdivision 1a, deleted text end Beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island new text begin and Monticello
new text end nuclear generating deleted text begin plant deleted text end new text begin plants new text end must transfer to the renewable development account deleted text begin $500,000
each year for each dry cask containing spent fuel that is located at the Prairie Island power
plant for deleted text end new text begin $20,000,000 new text end each year deleted text begin the deleted text end new text begin either new text end plant is in operation, and deleted text begin $7,500,000 each year
the plant is not in operation deleted text end new text begin , new text end if ordered by the commission pursuant to paragraph deleted text begin (i). deleted text end new text begin (h),
$7,500,000 each year the Prairie Island plant is not in operation and $5,250,000 each year
the Monticello plant is not in operation. new text end 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 new text begin or
Monticello new text end for any part of a year.

deleted text begin (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, 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 (i). 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.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end Each year, the public utility shall withhold from the funds transferred to the
renewable development account under deleted text begin paragraphs deleted text end new text begin paragraph new text end (c) deleted text begin and (d) deleted text end the amount necessary
to pay its obligations under paragraphs new text begin (e), new text end (f) deleted text begin and (g) deleted text end , new text begin (k), and (n), new text end and sections 116C.7792
and 216C.41, for that calendar year.

deleted text begin (f) deleted text end new text begin (e) new text end If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and deleted text begin (e) deleted text end new text begin (d) new text end .

deleted text begin (g) deleted text end new text begin (f) new text end If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and deleted text begin (e) deleted text end new text begin (d) new text end .

deleted text begin (h) deleted text end new text begin (g) new text end The collective amount paid under the grant contracts awarded under paragraphs
new text begin (e) and new text end (f) deleted text begin and (g) deleted text end is limited to the amount deposited into the renewable development account,
and its predecessor, the renewable development account, established under this section, that
was not required to be deposited into the account under Laws 1994, chapter 641, article 1,
section 10.

deleted text begin (i) deleted text end new text begin (h) new text end 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.

new text begin (i) The public utility shall file annually with the commission a petition to recover all
funds required to be transferred or withheld under paragraphs (c) to (f) for the next year
through a rider mechanism. The commission shall approve a reasonable cost recovery
schedule for all such funds.
new text end

new text begin (j) On or before January 15 of each year, the public utility shall file a petition with the
commission setting forth the amounts withheld by the public utility the prior year under
paragraph (d) and the amount actually paid the prior year for obligations identified in
paragraph (d). If the amount actually paid is less than the amount withheld, the public utility
shall deduct the surplus from the amount withheld for the current year under paragraph (d).
If the amount actually paid is more than the amount withheld, the public utility shall add
the deficiency amount to the amount withheld for the current year under paragraph (d). Any
surplus remaining in the account after all programs identified in paragraph (d) are terminated
must be returned to the customers of the public utility.
new text end

deleted text begin (j) deleted text end new text begin (k) new text end Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

deleted text begin (k) deleted text end new text begin (l) new text end For the purposes of paragraph deleted text begin (j) deleted text end new text begin (k) new text end , the following terms have the meanings
given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

deleted text begin (l) deleted text end new text begin (m) new text end A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. new text begin Members of the advisory group shall
be chosen by the public utility. new text end The advisory group must design a request for proposal and
evaluate projects submitted in response to a request for proposals. The advisory group 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 deleted text begin (j) deleted text end new text begin (k) new text end , clause (1), may be limited to or include
a request to higher education institutions located in Minnesota for multiple projects authorized
under paragraph deleted text begin (j) deleted text end new text begin (k) new text end , clause (1). 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. In the process of determining
request for proposal scope and subject and in evaluating responses to request for proposals,
the advisory group must strongly consider, where reasonable, potential benefit to Minnesota
citizens and businesses and the utility's ratepayers.

new text begin (n) The cost of acquiring the services of the independent third-party expert described in
paragraph (m) and any other reasonable costs incurred to administer the advisory group and
its actions as required by this section shall be paid from funds withheld by the public utility
under paragraph (d).
new text end

deleted text begin (m) deleted text end new text begin (o) new text end The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the deleted text begin legislature deleted text end new text begin commission new text end . The commission may approve proposed
expenditures, may disapprove proposed expenditures that it finds not to be 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 shall, by order, submit its
funding recommendations to the legislature as provided under paragraph deleted text begin (n) deleted text end new text begin (p) new text end .

deleted text begin (n) deleted text end new text begin (p) new text end The commission shall present its recommended appropriations from the account
to the senate and house of representatives committees with jurisdiction over energy policy
and finance annually by February 15. Expenditures from the account must be appropriated
by law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

deleted text begin (o) deleted text end new text begin (q) new text end 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.

deleted text begin (p) deleted text end new text begin (r) new text end The advisory group 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 new text begin under paragraph (k) new text end 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.

new text begin (s) By June 1, 2018, and each June 1 thereafter, the public utility that owns the Prairie
Island Nuclear Electric Generating Plant must submit to the commissioner of management
and budget an estimate of the amount the public utility will deposit into the account the
following January 15, based on the provisions of paragraphs (c) to (h) and any appropriations
made from the fund during the most recent legislative sessions.
new text end

deleted text begin (q) deleted text end new text begin (t) new text end By deleted text begin February 1 deleted text end new text begin June 30 new text end , 2018, and each deleted text begin February 1 deleted text end new text begin June 30 new text end thereafter, the
commissioner of management and budget new text begin shall estimate the balance in the account as of
the following January 31, taking into account the balance in the account as of June 30 and
the information provided under paragraph (r). By July 15, 2018, and each July 15 thereafter,
the commissioner of management and budget new text end shall submit a written report regarding the
availability of funds in and obligations of the account to the chairs and ranking minority
members of the senate and house committees with jurisdiction over energy policy and
finance, the public utility, and the advisory group. new text begin If more than $15,000,000 is estimated
to be available in the account as of January 31, the advisory group must, by July 30, 2018,
and each July 30 thereafter, issue a request for proposals to initiate a grant cycle for the
purposes of paragraph (k).
new text end

deleted text begin (r) deleted text end new text begin (u) new text end 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.

deleted text begin (s) deleted text end new text begin (v) new text end 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 commissioner
of commerce.

deleted text begin (t) deleted text end new text begin (w) new text end All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

deleted text begin (u) deleted text end new text begin (x) new text end Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

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 2017 Supplement, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

The utility subject to section 116C.779 shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total new text begin aggregate new text end nameplate
capacity of deleted text begin 20 deleted text end new text begin 40 new text end kilowatts direct current new text begin per premises. The owner of a solar energy system
installed before June 1, 2018, is eligible to receive a production incentive under this section
for any additional solar energy systems constructed at the same customer location, provided
the aggregate capacity of all systems at the customer location does not exceed 40 kilowatts new text end .
The program shall be operated for eight consecutive calendar years commencing in 2014.
$5,000,000 shall be allocated in each of the first four years, $15,000,000 in the fifth year,
$10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth year from
funds withheld from transfer to the renewable development account under section 116C.779,
subdivision 1, deleted text begin paragraphs (b) and (e) deleted text end new text begin paragraph (d) new text end , and placed in a separate account for
the purpose of the solar production incentive program new text begin operated by the utility and not for
any other program or purpose. Any unspent amount allocated in the fifth year is available
until December 31 of the sixth year. Any unspent amount remaining at the end of an
allocation year must be transferred to the renewable development account or returned to
customers new text end . The solar system must be sized to less than 120 percent of the customer's on-site
annual energy consumption new text begin when combined with other distributed generation resources and
subscriptions provided under section 216B.1641 associated with the premise new text end . The production
incentive must be paid for ten years commencing with the commissioning of the system.
The utility must file a plan to operate the program with the commissioner of commerce.
The utility may not operate the program until it is approved by the commissioner. new text begin A change
to the program to include projects up to a nameplate capacity of 40 kilowatts or less does
not require the utility to file a plan with the commissioner. Any plan approved by the
commissioner of commerce must not provide an increased incentive scale over prior years
unless the commissioner demonstrates that changes in the market for solar energy facilities
require an increase.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 3.

new text begin [116C.7793] PRAIRIE ISLAND NET ZERO PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The Prairie Island Net Zero Project is established
with the goal of the Prairie Island Indian Community developing an energy system that
results in net zero emissions.
new text end

new text begin Subd. 2. new text end

new text begin Grant. new text end

new text begin The commissioner of employment and economic development shall
enter into a grant contract with the Prairie Island Indian Community to provide $20,000,000
on July 1, 2018, and $5,000,000 each year thereafter for four years to stimulate research,
development, and implementation of renewable energy projects benefitting the Prairie Island
Indian Community or its members.
new text end

new text begin Subd. 3. new text end

new text begin Plan; report. new text end

new text begin The Prairie Island Indian Community shall file a plan with the
commissioner of employment and economic development no later than July 1, 2019,
describing the Prairie Island Net Zero Project elements and implementation strategy. The
Prairie Island Indian Community shall file a report on July 1, 2020, and each July 1 thereafter
through 2023, describing the progress made in implementing the project and the use of
funds expended.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin Notwithstanding section 116C.779, subdivision 1, paragraph
(k), $20,000,000 is appropriated in fiscal year 2019 and $5,000,000 is appropriated each
year in fiscal years 2020, 2021, 2022, and 2023, from the renewable development account
under section 116C.779, subdivision 1, to the commissioner of employment and economic
development for a grant to the Prairie Island Indian Community for the purposes of this
section. Any funds remaining at the end of a fiscal year do not cancel to the renewable
development account but remain available until spent. This subdivision expires upon the
last transfer of funds to the commissioner.
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 2016, section 216A.03, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Offices. new text end

new text begin The Public Utilities Commission's offices must be located in Virginia,
Minnesota.
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 2016, section 216B.16, is amended by adding a subdivision to
read:

new text begin Subd. 13a. new text end

new text begin Pension rate base. new text end

new text begin The commission must allow a public utility to include
in the rate base and recover from ratepayers the costs incurred to contribute to employee
pensions, including (1) accumulated contributions in excess of net periodic benefit costs,
and (2) contributions necessary to comply with the federal Pension Protection Act of 2006
and other applicable federal and state pension funding requirements. A public utility is
authorized to track for future recovery any unrecoverable return of pension rate base costs
and investments at the return on investment level established in the public utility's last
general rate case that have been incurred during the period between general rate cases.
new text end

Sec. 6.

Minnesota Statutes 2017 Supplement, section 216B.164, subdivision 5, is amended
to read:

Subd. 5.

Dispute; resolution.

(a) In the event of deleted text begin disputes deleted text end new text begin a dispute new text end between new text begin a qualifying
facility and new text end a public utility deleted text begin and a qualifying facility deleted text end new text begin or a cooperative electric association that
has not elected to resolve disputes under subdivision 11 new text end , either party may request a
determination of the issue by the commission. In any such determination, the burden of
proof deleted text begin shall be deleted text end new text begin is new text end on the public utility new text begin or cooperative electric association new text end . The commission
in its order resolving each such dispute shall require payments to the prevailing party of the
prevailing party's costs, disbursements, and reasonable attorneys' fees, except that the
qualifying facility will be required to pay the costs, disbursements, and attorneys' fees of
the public utility new text begin or cooperative electric association new text end only if the commission finds that the
claims of the qualifying facility in the dispute have been made in bad faith, or are a sham,
or are frivolous.

(b) Notwithstanding subdivisions 9 and 11, a qualifying facility over 20 megawatts may,
until December 31, 2022, request that the commission resolve a dispute with any utility,
including a cooperative electric association or municipal utility, under paragraph (a).

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 2017 Supplement, section 216B.1691, subdivision 2f, is amended
to read:

Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and 2b, each public utility shall generate or procure sufficient electricity generated by solar
energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
generated by solar energy.

(b) For a public utility with more than 200,000 retail electric customers, at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of deleted text begin 20 deleted text end new text begin 40 new text end kilowatts or less.

(c) A public utility with between 50,000 and 200,000 retail electric customers:

(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and

(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.

(d) The solar energy standard established in this subdivision is subject to all the provisions
of this section governing a utility's standard obligation under subdivision 2a.

(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
electric sales in Minnesota be generated by solar energy.

(f) For the purposes of calculating the total retail electric sales of a public utility under
this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

(g) A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

(i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file
a report with the commission reporting its progress in achieving the solar energy standard
established under 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. 8.

new text begin [216B.1697] CARBON REDUCTION FACILITIES; NUCLEAR ENERGY.
new text end

new text begin Subdivision 1. new text end

new text begin Qualifying facilities. new text end

new text begin An existing large electric generating power plant,
as defined in section 216B.2421, subdivision 2, clause (1), employing nuclear technology
to generate electricity qualifies for designation as a carbon reduction facility as provided in
this section.
new text end

new text begin Subd. 2. new text end

new text begin Proposal submission. new text end

new text begin (a) A public utility may submit a proposal to the
commission for designation of a qualifying facility as a carbon reduction facility under this
section. The proposal must be filed within a public utility's new resource plan filing no
earlier than February 1, 2019. The proposal shall include:
new text end

new text begin (1) a showing that the facility meets the requirements of subdivision 1;
new text end

new text begin (2) a proposed statement of the total expected costs, including, but not limited to, capital
investments and operation and maintenance costs associated with the operation of the facility.
The total expected costs shall cover a period not to exceed the planning period of the public
utility's new resource plan;
new text end

new text begin (3) details about all costs currently included in rates, current operating costs if different
than those currently included in rates, and an evaluation of the utility's forecasted costs
prepared by an independent evaluator; and
new text end

new text begin (4) an analysis of how the proposed capital investments and operation and maintenance
costs would impact rates if that impact is different than any described in the utility's most
recently filed resource plan.
new text end

new text begin (b) If the information submitted in the original proposal changes because it was unknown
and not capable of being known at the time of the original proposal, a utility may at any
time file additional proposals for the same facility.
new text end

new text begin (c) The proposal may ask the commission to establish a sliding scale rate-of-return
mechanism for the capital investments to provide an additional incentive for the utility to
complete the project at or under the proposed costs.
new text end

new text begin Subd. 3. new text end

new text begin Proposal approval. new text end

new text begin (a) The commission shall approve, reject, or modify the
proposed designation of the facility and the total expected costs submitted by the public
utility. The commission shall make a final determination on the proposed designation
concurrent with its order in the resource plan, or sooner, should the commission determine
that it is in the public interest.
new text end

new text begin (b) When conducting the review in paragraph (a), the commission shall allow intervention
by the Department of Commerce, the Office of the Attorney General, ratepayer advocates,
the Prairie Island and Monticello communities, and other interested parties. The public
utility shall pay the costs of any nuclear expert retained by the Department of Commerce.
new text end

new text begin (c) To the extent the commission modifies the proposal, the utility may choose whether
to accept the modifications. If the utility does not accept the modifications, the commission
shall deem the proposal withdrawn.
new text end

new text begin (d) With respect to any carbon reduction facility, the approval shall constitute a finding
of prudency for the total expected costs contained in the proposal, meaning that the utility
shall be entitled to recover, through a subsequent rate case, any actual costs not in excess
of the total expected costs provided in its proposal for designation as a carbon reduction
facility.
new text end

new text begin (e) Upon approval of a proposed designation of a facility and the total expected costs
submitted by the utility, the utility shall provide biennial updates to the commission regarding
its progress with respect to adhering to the approved costs. The commission may issue
orders it deems necessary to ensure that the carbon reduction facility remains cost-effective
for customers and financially viable for the utility.
new text end

Sec. 9.

Minnesota Statutes 2016, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a wind energy conversion system or solar electric generation facility if the system
or facility is owned and operated by an independent power producer and the electric output
of the system or facility is not sold to an entity that provides retail service in Minnesota or
wholesale electric service to another entity in Minnesota other than an entity that is a federally
recognized regional transmission organization or independent system operator; or

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating deleted text begin large energy facility, deleted text end new text begin system new text end as defined in section deleted text begin 216B.2421,
subdivision 2, deleted text end new text begin 216E.01, subdivision 9a, with a nameplate capacity of five megawatts or
more, including systems that are new text end engaging in a repowering project deleted text begin that: deleted text end new text begin .
new text end

deleted text begin (i) will not result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement; or
deleted text end

deleted text begin (ii) will result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increase.
deleted text end

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating large
energy facility to increase its efficiency deleted text begin without increasing its nameplate capacity deleted text end ;

(2) replacing turbines in a large wind energy conversion system deleted text begin without increasing the
nameplate capacity of the system deleted text end ; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

new text begin (c) Nothing in paragraph (a), clause (8), authorizes a large wind energy conversion
system or a solar energy generating system to exceed any limitation imposed on it by an
interconnection agreement regarding the amount of energy generated by the large wind
energy conversion system or solar energy generating system or the amount of nameplate
capacity it injects into the transmission system.
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 a large wind energy conversion system or a solar energy generating system that
has not received a final decision on a certificate of need application filed with the commission
before that date.
new text end

Sec. 10.

new text begin [216C.419] RESIDENTIAL BIOMASS HEATING SYSTEM GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, the following definitions have
the meanings given.
new text end

new text begin (a) "Homeowner" means the owner of a residential homestead, as defined in section
273.124, subdivision 1, paragraph (a), or the owner of an agricultural homestead, as defined
in section 273.13, subdivision 23, paragraph (a).
new text end

new text begin (b) "Residential biomass heating system" means:
new text end

new text begin (1) a pellet stove or wood heater, as defined in Code of Federal Regulations, title 40,
section 60.531; or
new text end

new text begin (2) a residential forced-air furnace or residential hydronic heater, as defined in Code of
Federal Regulations, title 40, section 60.5473.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A grant program is established under the Department of
Commerce to award grants to homeowners to fund the purchase and installation of a
residential biomass heating system.
new text end

new text begin Subd. 3. new text end

new text begin Eligible expenditures. new text end

new text begin (a) Grants awarded to a homeowner under this section
may be used to pay up to the lesser of 33 percent of the cost to purchase and install a
residential biomass heating system in the homeowner's residence, or $5,000.
new text end

new text begin (b) A grant must not be awarded under this section to a homeowner for a residential
biomass heating system that is not certified by the federal Environmental Protection Agency
as meeting the 2015 New Source Performance Standards for air emissions for these heating
systems, contained in Code of Federal Regulations, title 40, part 60, subparts AAA and
QQQQ, as applicable.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin A homeowner must submit an application to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
administrative procedures governing the application and grant award process, and must
award grants on a first-come, first-served basis.
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. 11.

new text begin [216C.437] LOCAL GOVERNMENT EMERALD ASH BORER REMOVAL
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Department of Commerce must establish a program
to:
new text end

new text begin (1) assist eligible local units of government collect and dispose of the wood waste created
when ash trees are removed from public land due to either (i) emerald ash borer infestation,
or (ii) an emerald ash borer management program;
new text end

new text begin (2) award grants to process the wood waste into usable biomass fuel, properly transport
the biomass fuel to an eligible district heating and cooling system cogeneration facility, and
use the biomass fuel to generate electricity and thermal energy; and
new text end

new text begin (3) reduce the biomass fuel costs passed through by an eligible heating and cooling
system cogeneration facility to the public utility that owns the Prairie Island nuclear
generating plant.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin In order to be eligible for the program under subdivision 1, an
applicant must be a district heating and cooling system cogeneration facility that:
new text end

new text begin (1) is located in the city of St. Paul;
new text end

new text begin (2) operates as a nonprofit entity;
new text end

new text begin (3) accepts wood waste from a local unit of government that is:
new text end

new text begin (i) located within the service area of the public utility that is subject to section 116C.779;
new text end

new text begin (ii) located in a county or portion of a county that has been designated by the
commissioner of agriculture as quarantined with respect to the transportation of woody
materials from ash trees due to demonstrated emerald ash borer infestation; and
new text end

new text begin (iii) responsible for the removal of diseased ash trees from public lands within its
jurisdiction; and
new text end

new text begin (4) uses biomass fuel to generate electricity and thermal energy.
new text end

new text begin Subd. 3. new text end

new text begin Eligible expenditures. new text end

new text begin (a) Grants may be awarded under this section to an
eligible recipient under subdivision 2 to:
new text end

new text begin (1) process into acceptable biomass fuel woody materials containing ash trees that have
been removed due to disease or implementation of an emerald ash borer management
program; or
new text end

new text begin (2) transport processed biomass fuel, woody materials infested by emerald ash borer,
and woody material removed under an emerald ash borer management program to a storage
location or to the district heating and cooling system cogeneration facility in downtown St.
Paul.
new text end

new text begin (b) Grant funds may be used to pay reasonable costs incurred by the Department of
Agriculture to administer this section.
new text end

new text begin (c) All funds awarded under paragraph (a) must reduce on a dollar-for-dollar basis the
charges billed by an eligible heating and cooling system cogeneration facility to the public
utility that owns the Prairie Island Nuclear Electric Generating Plant under the power
purchase agreement in effect on January 1, 2018. A heating and cooling system cogeneration
facility receiving a grant under this section must submit a monthly statement showing the
reduction in charges resulting from the requirement of this paragraph to the public utility
that owns the Prairie Island Nuclear Electric Generating Plant.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires the day after the power purchase agreement
in effect on January 1, 2018, between an eligible heating and cooling system cogeneration
facility and the public utility that owns the Prairie Island Nuclear Electric Generating Plant
expires. This section does not extend or renew a power purchase agreement referenced in
this subdivision.
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. 12.

Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:

Subd. 9.

Timing.

The commission shall make a final decision on an application within
60 days after receipt of the report of the administrative law judge. A final decision on the
request for a site permit or route permit shall be made within one year after the commission's
determination that an application is complete. The commission may extend this time limit
for up to deleted text begin three months deleted text end new text begin 30 days new text end for just cause or upon agreement of the applicant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any application filed with the commission on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2016, section 216E.04, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

The requirements and procedures in this section apply to
the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants that are fueled by natural gas;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) high-voltage transmission lines in excess of 200 kilovolts and less than five miles
in length in Minnesota;

(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of
the distance of the line in Minnesota will be located along existing high-voltage transmission
line right-of-way;

(6) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;

(7) a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line; deleted text begin and
deleted text end

(8) large electric power generating plants that are powered by solar energy deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) a high-voltage transmission line in excess of 200 kilovolts, if the applicant
demonstrates secured voluntary easements or other agreements with all landowners located
within the proposed route's right-of-way.
new text end

Sec. 14.

Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:

Subd. 7.

Timing.

The commission shall make a final decision on an application within
60 days after completion of the public hearing. A final decision on the request for a site
permit or route permit under this section shall be made within six months after the
commission's determination that an application is complete. The commission may extend
this time limit for up to deleted text begin three months deleted text end new text begin 30 days new text end for just cause or upon agreement of the
applicant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any application filed with the commission on or after that date.
new text end

Sec. 15.

Minnesota Statutes 2016, section 216F.01, subdivision 2, is amended to read:

Subd. 2.

Large wind energy conversion system or LWECS.

"Large wind energy
conversion system" or "LWECS" means new text begin (1) new text end any combination of WECS with a combined
nameplate capacity of 5,000 kilowatts or more new text begin , and (2) transmission lines directly associated
with the LWECS that are necessary to interconnect the LWECS with the transmission
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. 16.

Laws 2017, chapter 94, article 10, section 28, is amended to read:

Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
THERMAL REBATES.

(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
of a solar thermal system whose application was approved by the commissioner of commerce
after the effective date of this act.

(b) Unspent money remaining in the account established under Minnesota Statutes 2014,
section 216C.416, as of July 2, 2017, must be transferred to the deleted text begin C-LEAF deleted text end new text begin renewable
development new text end account established under Minnesota Statutes 2016, section 116C.779,
subdivision 1.

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 2017, chapter 94, article 10, section 29, is amended to read:

Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
UNEXPENDED GRANT FUNDS.

(a) No later than 30 days after the effective date of this section, the utility subject to
Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
who received a grant funded from the renewable development account deleted text begin previously deleted text end established
under that subdivision:

(1) after January 1, 2012; and

(2) before January 1, 2012, if the funded project remains incomplete as of the effective
date of this section.

The notice must contain the provisions of this section and instructions directing grant
recipients how unexpended funds can be transferred to the deleted text begin clean energy advancement fund deleted text end new text begin
renewable development new text end account.

(b) A recipient of a grant from the renewable development account deleted text begin previously deleted text end established
under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after
receiving the notice required under paragraph (a), transfer any grant funds that remain
unexpended as of the effective date of this section to the deleted text begin clean energy advancement fund deleted text end new text begin
renewable development new text end account if, by that effective date, all of the following conditions
are met:

(1) the grant was awarded more than five years before the effective date of this section;

(2) the grant recipient has failed to obtain control of the site on which the project is to
be constructed;

(3) the grant recipient has failed to secure all necessary permits or approvals from any
unit of government with respect to the project; and

(4) construction of the project has not begun.

(c) A recipient of a grant from the renewable development account deleted text begin previously deleted text end established
under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds
that remain unexpended five years after the grant funds are received by the grant recipient
if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
of the receipt of the grant funds.

(d) A person who transfers funds to the deleted text begin clean energy advancement fund deleted text end new text begin renewable
development new text end account under this section is eligible to apply for funding from the deleted text begin clean energy
advancement fund deleted text end new text begin renewable development new text end account.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 216B.2423, new text end new text begin is repealed.
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

ARTICLE 4

HOUSING

Section 1.

new text begin [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
REMODELING; LEGISLATIVE NOTICE AND REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin As used in this section, "residential construction" means the
new construction or remodeling of any building subject to the Minnesota Residential Code.
new text end

new text begin Subd. 2. new text end

new text begin Impact on housing; agency determination. new text end

new text begin (a) An agency must determine if
implementation of a proposed rule, or any portion of a proposed rule, will, on average,
increase the cost of residential construction or remodeling by $1,000 or more per unit, and
whether the proposed rule meets the state regulatory policy objectives described in section
14.002. In calculating the cost of implementing a proposed rule, the agency may consider
the impact of other related proposed rules on the overall cost of residential construction. If
applicable, the agency may include offsetting savings that may be achieved through
implementation of related proposed rules in its calculation under this subdivision.
new text end

new text begin (b) The agency must make the determination required by paragraph (a) before the close
of the hearing record, or before the agency submits the record to the administrative law
judge if there is no hearing. Upon request of a party affected by the proposed rule, the
administrative law judge must review and approve or disapprove an agency's determination
under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Notice to legislature; legislative review. new text end

new text begin If the agency determines that the
impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 2, or
if the administrative law judge separately confirms the cost of any portion of a rule exceeds
the cost threshold provided in subdivision 2, the agency must notify, in writing, the chair
and ranking minority members of the policy committees of the legislature with jurisdiction
over the subject matter of the proposed rule within ten days of the determination. The agency
shall not adopt the proposed rule until after the adjournment of the next annual session of
the legislature convened on or after the date that notice required in this subdivision is given
to the chairs and ranking minority members.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to
administrative rules proposed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2016, section 299D.085, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Trailer use. new text end

new text begin A vehicle or a combination of vehicles may tow a trailer during
the movement of an overdimensional load if:
new text end

new text begin (1) the party involved is a building mover licensed by the commissioner of transportation
under section 221.81;
new text end

new text begin (2) the building being moved is not a temporary structure;
new text end

new text begin (3) the overdimensional load is a manufactured home, as defined under section 327.31;
or
new text end

new text begin (4) the overdimensional load is a modular home, as defined under section 297A.668,
subdivision 8, paragraph (b).
new text end

Sec. 3.

Minnesota Statutes 2016, section 326B.815, subdivision 1, is amended to read:

Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is deleted text begin $300 deleted text end new text begin $180 new text end for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 4.

Minnesota Statutes 2016, section 327.31, is amended by adding a subdivision to
read:

new text begin Subd. 23. new text end

new text begin Modular home. new text end

new text begin "Modular home" means a building or structural unit of closed
construction that has been substantially manufactured or constructed, in whole or in part,
at an off-site location, with the final assembly occurring on site alone or with other units
and attached to a foundation designed to the State Building Code and occupied as a
single-family dwelling. Modular home construction must comply with applicable standards
adopted in Minnesota Rules, chapter 1360 or 1361.
new text end

Sec. 5.

new text begin [327.335] PLACEMENT OF MODULAR HOMES.
new text end

new text begin Notwithstanding any other law or ordinance to the contrary, a modular home may be
placed in a manufactured home park as defined in section 327.14, subdivision 3. A modular
home placed in a manufactured home park is a manufactured home for purposes of chapters
327C and 504B and all rights, obligations, and duties, under those chapters apply. A modular
home may not be placed in a manufactured home park without prior written approval of the
park owner. Nothing in this section shall be construed to inhibit the application of zoning,
subdivision, architectural, or esthetic requirements under chapters 394 and 462 that otherwise
apply to manufactured homes or manufactured home parks. A modular home placed in a
manufactured home park under this section shall be assessed and taxed as a manufactured
home.
new text end

Sec. 6.

Minnesota Statutes 2016, section 327B.041, is amended to read:

327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. deleted text begin For the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.
deleted text end

Sec. 7.

Minnesota Statutes 2016, section 327C.095, subdivision 4, is amended to read:

Subd. 4.

Public hearing; relocation compensation; neutral third party.

The governing
body of the affected municipality shall hold a public hearing to review the closure statement
and any impact that the park closing may have on the displaced residents and the park owner.
At the time of, and in the notice for, the public hearing, displaced residents must be informed
that they may be eligible for payments from the Minnesota manufactured home relocation
trust fund under section 462A.35 as compensation for reasonable relocation costs under
subdivision 13, paragraphs (a) and (e).

The governing body of the municipality may also require that other parties, including
the municipality, but excluding the park owner or its purchaser, involved in the park closing
provide additional compensation to residents to mitigate the adverse financial impact of the
park closing upon the residents.

At the public hearing, the municipality shall appoint a new text begin qualified new text end neutral third party, to
be agreed upon by both the manufactured home park owner and manufactured home owners,
whose hourly cost must be reasonable and paid from the Minnesota manufactured home
relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with
decision-making authority to resolve any questions or disputes regarding any contributions
or disbursements to and from the Minnesota manufactured home relocation trust fund by
either the manufactured home park owner or the manufactured home owners. If the parties
cannot agree on a neutral third party, the municipality will deleted text begin make a determination deleted text end new text begin determine
who shall act as the neutral third party new text end .

new text begin The qualified neutral third party shall be familiar with manufactured housing and the
requirements of this section. The neutral third party shall keep an overall receipts and cost
summary together with a detailed accounting, for each manufactured lot, of the payments
received by the manufactured home park owner, and expenses approved and payments
disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well
as a record of all services and hours it provided and at what hourly rate it charged to the
Minnesota manufactured home trust fund. This detailed accounting shall be provided to the
manufactured home park owner, the municipality, and the Minnesota Housing Finance
Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph
(h), not later than 30 days after the expiration of the nine-month notice provided in the
closure statement.
new text end

Sec. 8.

Minnesota Statutes 2016, section 327C.095, subdivision 6, is amended to read:

Subd. 6.

Intent to convert use of park at time of purchase.

Before the execution of
an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement. The park owner shall
provide a resident of each manufactured home with a 45-day written notice of the purchaser's
intent to close the park or convert it to another use. The notice must state that the park owner
will provide information on the cash price and the terms and conditions of the purchaser's
offer to residents requesting the information. The notice must be sent by first class mail to
a resident of each manufactured home in the park. The notice period begins on the postmark
date affixed to the notice and ends 45 days after it begins. During the notice period required
in this subdivision, the owners of at least 51 percent of the manufactured homes in the park
or a nonprofit organization which has the written permission of the owners of at least 51
percent of the manufactured homes in the park to represent them in the acquisition of the
park shall have the right to meet the cash price and execute an agreement to purchase the
park for the purposes of keeping the park as a manufactured housing community new text begin , provided
that the owners or nonprofit organization will covenant and warrant to the park owner in
the agreement that they will continue to operate the park for not less than six years from
the date of closing new text end . The park owner must accept the offer if it meets the cash price and the
same terms and conditions set forth in the purchaser's offer except that the seller is not
obligated to provide owner financing. For purposes of this section, cash price means the
cash price offer or equivalent cash offer as defined in section 500.245, subdivision 1,
paragraph (d).

Sec. 9.

Minnesota Statutes 2016, section 327C.095, subdivision 12, is amended to read:

Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the commissioner of management and budget for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.35, the lesser amount of the
actual costs of moving or purchasing the manufactured home approved by the neutral third
party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph
(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
multisection manufactured home, for which a manufactured home owner has made
application for payment of relocation costs under subdivision 13, paragraph (c). The
manufactured home park owner shall make payments required under this section to the
Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than deleted text begin $1,000,000 deleted text end new text begin $3,000,000 new text end as of June 30 of each year, the commissioner of
management and budget shall assess each manufactured home park owner by mail the total
amount of $15 for each licensed lot in their park, payable on or before deleted text begin September deleted text end new text begin November new text end
15 of that year. deleted text begin The commissioner of management deleted text end new text begin Failure to notify new text end and deleted text begin budget shall deposit
any payments in the Minnesota deleted text end new text begin timely assess the new text end manufactured home deleted text begin relocation trust fund.
On or before July 15 of deleted text end new text begin park owner by August 30 of any year shall waive the assessment
and payment obligations of the manufactured home park owner for that year. Together with
said assessment notice, new text end each year deleted text begin , deleted text end the commissioner of management and budget shall prepare
and distribute to park owners a letter explaining whether funds are being collected for that
year, information about the collection, an invoice for all licensed lots, and a sample form
for the park owners to collect information on which park residents have been accounted
for. If assessed under this paragraph, the park owner may recoup the cost of the $15
assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park
residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park
owners may adjust payment for lots in their park that are vacant or otherwise not eligible
for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b),
and new text begin , for park residents who have not paid the $15 assessment to the park owner by October
15, new text end deduct from the assessment accordingly. new text begin The commissioner of management and budget
shall deposit any payments in the Minnesota manufactured home relocation trust fund.
new text end

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 10.

Minnesota Statutes 2016, section 327C.095, subdivision 13, is amended to read:

Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a deleted text begin 25-mile deleted text end new text begin 50-mile new text end radius of the park that is
being closed, up to a maximum of deleted text begin $7,000 deleted text end new text begin $9,000 new text end for a single-section and $12,500 for a
multisection manufactured home. The actual relocation costs must include the reasonable
cost of taking down, moving, and setting up the manufactured home, including equipment
rental, utility connection and disconnection charges, minor repairs, modifications necessary
for transportation of the home, necessary moving permits and insurance, moving costs for
any appurtenances, which meet applicable local, state, and federal building and construction
codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the Minnesota Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current and that
the annual $15 deleted text begin payments deleted text end new text begin payment new text end to the Minnesota manufactured home relocation trust
fund deleted text begin have deleted text end new text begin has new text end been paid when due; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d) new text begin The neutral third party shall promptly process all payments within 14 days. new text end If the
neutral third party has acted reasonably and does not approve or deny payment within 45
days after receipt of the information set forth in paragraph (c), the payment is deemed
approved. Upon approval and request by the neutral third party, the Minnesota Housing
Finance Agency shall issue two checks in equal amount for 50 percent of the contract price
payable to the mover and towing contractor for relocating the manufactured home in the
amount of the actual relocation cost, plus a check to the home owner for additional certified
costs associated with third-party vendors, that were necessary in relocating the manufactured
home. The moving or towing contractor shall receive 50 percent upon execution of the
contract and 50 percent upon completion of the relocation and approval by the manufactured
home owner. The moving or towing contractor may not apply the funds to any other purpose
other than relocation of the manufactured home as provided in the contract. A copy of the
approval must be forwarded by the neutral third party to the park owner with an invoice for
payment of the amount specified in subdivision 12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the commissioner of management and budget in the
amount established in subdivision 12, paragraph (a), less any documented costs submitted
to the neutral third party, required for demolition and removal of the home, and any debris
or refuse left on the lot, not to exceed deleted text begin $1,000 deleted text end new text begin $3,000 new text end . The manufactured home owner must
also provide a copy of the certificate of title endorsed by the owner of record, and certify
to the neutral third party, with a copy to the park owner, that none of the exceptions to
receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the
manufactured home owner, and that the home owner will vacate the home within 60 days
after receipt of payment or the date of park closure, whichever is earlier, provided that the
monthly lot rent is kept current.

(f) The Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's
compensation for relocation costs from the fund under section 462A.35, is the greater of
the amount provided under this subdivision, or the amount under the local ordinance in
effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this
paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

(h) new text begin (1) By October 15, 2018, the Minnesota Housing Finance Agency shall post on its
Web site and report to the chairs of the senate Finance Committee and house of
representatives Ways and Means Committee on the Minnesota manufactured home relocation
trust fund, including the account balance, payments to claimants, the amount of any advances
to the fund, the amount of any insufficiencies encountered during the previous calendar
year, and any itemized administrative charges or expenses deducted from the trust fund
balance. If sufficient funds become available, the Minnesota Housing Finance Agency shall
pay the manufactured home owner whose unpaid claim is the earliest by time and date of
approval.
new text end

new text begin (2) Beginning in 2019, new text end the new text begin Minnesota Housing Finance new text end Agency shall new text begin post on its Web
site and new text end report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee by deleted text begin January deleted text end new text begin October new text end 15 of each year on the Minnesota
manufactured home relocation trust fund, including the new text begin aggregate new text end account balance, new text begin the
aggregate assessment payments received, summary information regarding each closed park
including the total new text end payments to claimants new text begin and payments received from each closed park new text end ,
the amount of any advances to the fund, the amount of any insufficiencies encountered
during the previous deleted text begin calendar deleted text end new text begin fiscal new text end year, new text begin reports of neutral third parties provided pursuant
to subdivision 4, new text end and any new text begin itemized new text end administrative charges or expenses deducted from the
trust fund balance new text begin , all of which should be reconciled to the previous year's trust fund balance new text end .
If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.

Sec. 11.

Minnesota Statutes 2016, section 327C.095, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Reporting of licensed manufactured home parks. new text end

new text begin The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the Department of Management and Budget to invoice each licensed
manufactured home park in Minnesota.
new text end

Sec. 12.

Minnesota Statutes 2016, section 462A.222, subdivision 3, is amended to read:

Subd. 3.

Allocation procedure.

(a) Projects will be awarded tax credits in two
competitive rounds on an annual basis. The date for applications for each round must be
determined by the agency. No allocating agency may award tax credits prior to the application
dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal
Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax
credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4)
of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the
project satisfies the requirements of the allocating agency's qualified allocation plan. For
projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds
for the project, or the issuer of the bonds for the project is located outside the jurisdiction
of a city or county that has received reserved tax credits, the applicable allocation plan is
the agency's qualified allocation plan. new text begin Notwithstanding this paragraph, any projects that are
eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue
Code of 1986, as amended, for which the Minnesota Housing Finance Agency is the issuer
of the bonds for the project, or the issuer of the bonds for the project is located outside the
jurisdiction of a city or county that has received reserved tax credits, and such project meets
the requirements of both section 474A.047 and section 42 of the Internal Revenue Code,
such projects shall be deemed for all purposes to have satisfied all the requirements of the
Minnesota Housing Finance Agency's qualified allocation plan and all other related guidance
and requirements and the agency shall timely issue the necessary determination letters under
section 42(m) of the Internal Revenue Code of 1986, as amended, or Form 8609. The
Minnesota Housing Finance Agency's qualified allocation plan is required to contain the
provisions of this subdivision.
new text end

(d) For applications submitted for the first round, an allocating agency may allocate tax
credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the
extended use period, at least 75 percent of the total tax credit units are single-room
occupancy, efficiency, or one bedroom units and which are affordable by households whose
income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not
restricted to persons who are 55 years of age or older and in which, for the term of the
extended use period, at least 75 percent of the tax credit units contain two or more bedrooms
and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for
revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need
and which are in short supply in the local housing market as evidenced by credible data
submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for
the term of the extended use period, a percentage of the units are set aside and rented to
persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision
20, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section
6001, paragraph (5), as amended through December 31, 1990;

(iii) who have been assessed as drug dependent persons as defined in section 254A.02,
subdivision 5, and are receiving or will receive care and treatment services provided by an
approved treatment program as defined in section 254A.02, subdivision 2;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life
activities, if at least 50 percent of the units in the project are accessible as provided under
Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve
existing subsidized housing, if the use of tax credits is necessary to prevent conversion to
market rate use or to remedy physical deterioration of the project which would result in loss
of existing federal subsidies; or

(5) projects financed by the Farmers Home Administration, or its successor agency,
which meet statewide distribution goals.

(e) Before the date for applications for the final round, the allocating agencies other than
the agency shall return all uncommitted and unallocated tax credits to a unified pool for
allocation by the agency on a statewide basis.

(f) Unused portions of the state ceiling for low-income housing tax credits reserved to
cities and counties for allocation may be returned at any time to the agency for allocation.

(g) If an allocating agency determines, at any time after the initial commitment or
allocation for a specific project, that a project is no longer eligible for all or a portion of the
low-income housing tax credits committed or allocated to the project, the credits must be
transferred to the agency to be reallocated pursuant to the procedures established in
paragraphs (e) to (g); provided that if the tax credits for which the project is no longer
eligible are from the current year's annual ceiling and the allocating agency maintains a
waiting list, the allocating agency may continue to commit or allocate the credits until not
later than the date of applications for the final round, at which time any uncommitted credits
must be transferred to the agency.

Sec. 13.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Aggregate bond limitation. new text end

new text begin "Aggregate bond limitation" means up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.
new text end

Sec. 14.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin AMI. new text end

new text begin "AMI" means the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.
new text end

Sec. 15.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 12a. new text end

new text begin LIHTC. new text end

new text begin "LIHTC" means low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended.
new text end

Sec. 16.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 21a. new text end

new text begin Preservation project. new text end

new text begin "Preservation project" means any residential rental
project, regardless of whether or not such project is restricted to persons of a certain age or
older, that receives federal project-based rental subsidies. In addition, to qualify as a
preservation project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

Sec. 17.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 30. new text end

new text begin 30 percent AMI residential rental project. new text end

new text begin "30 percent AMI residential
rental project" means a residential rental project that does not otherwise qualify as a
preservation project, is expected to generate low-income housing tax credits under section
42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential
units, and in which:
new text end

new text begin (1) all the residential units of the project:
new text end

new text begin (i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
new text end

new text begin (ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (iii) are subject to rent and income restrictions for a period of not less than 30 years; or
new text end

new text begin (2)(i) is located within a county or metropolitan area that has a current median area gross
income that is less than the statewide area median income for Minnesota;
new text end

new text begin (ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2)
of the Internal Revenue Code of 1986, as amended; and
new text end

new text begin (iii) all of the units of the project are subject to the applicable rent and income restrictions
for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 30 percent AMI residential project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

Sec. 18.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin 50 percent AMI residential rental project. new text end

new text begin "50 percent AMI residential
rental project," means a residential rental project that does not qualify as a preservation
project or 30 percent AMI residential rental project, is expected to generate low-income
housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended,
from 100 percent of its residential units, and in which all the residential units of the project:
new text end

new text begin (1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
new text end

new text begin (2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (3) are subject to rent and income restrictions for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

Sec. 19.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 32. new text end

new text begin 100 percent LIHTC project. new text end

new text begin "100 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units
and does not otherwise qualify as a preservation project, 30 percent AMI residential rental
project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent
LIHTC project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

Sec. 20.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 33. new text end

new text begin 20 percent LIHTC project. new text end

new text begin "20 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential
units and does not otherwise qualify as a preservation project, 30 percent AMI residential
rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In
addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the
application must not exceed the aggregate bond limitation.
new text end

Sec. 21.

Minnesota Statutes 2016, section 474A.03, subdivision 1, is amended to read:

Subdivision 1.

Under federal tax law; allocations.

At the beginning of each calendar
year after December 31, 2001, the commissioner shall determine the aggregate dollar amount
of the annual volume cap under federal tax law for the calendar year, and of this amount
the commissioner shall make the following allocation:

(1) $74,530,000 to the small issue pool;

(2) $122,060,000 to the housing pool deleted text begin , of which 31 percent of the adjusted allocation is
reserved until the last Monday in July for single-family housing programs deleted text end ;

(3) $12,750,000 to the public facilities pool; and

(4) amounts to be allocated as provided in subdivision 2a.

If the annual volume cap is greater or less than the amount of bonding authority allocated
under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation
must be adjusted so that each adjusted allocation is the same percentage of the annual volume
cap as each original allocation is of the total bonding authority originally allocated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires January 1, 2021.
new text end

Sec. 22.

Minnesota Statutes 2016, section 474A.04, subdivision 1a, is amended to read:

Subd. 1a.

Entitlement reservations.

Any amount returned by an entitlement issuer
before deleted text begin July deleted text end new text begin June new text end 15 shall be reallocated through the housing pool. Any amount returned on
or after July deleted text begin 15 deleted text end new text begin 1 new text end shall be reallocated through the unified pool. An amount returned after
the last Monday in November shall be reallocated to the Minnesota Housing Finance Agency.

Sec. 23.

Minnesota Statutes 2016, section 474A.047, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) An issuer may only use the proceeds from residential
rental bonds if the proposed project meets the following requirements:

(1) the proposed residential rental project meets the requirements of section 142(d) of
the Internal Revenue Code regarding the incomes of the occupants of the housing; and

(2) the maximum rent for at least 20 percent of the units in the proposed residential rental
project do not exceed the area fair market rent or exception fair market rents for existing
housing, if applicable, as established by the federal Department of Housing and Urban
Development. The rental rates of units in a residential rental project for which project-based
federal assistance payments are made are deemed to be within the rent limitations of this
clause.

(b) The proceeds from residential rental bonds may be used for a project for which
project-based federal rental assistance payments are made only if deleted text begin : deleted text end new text begin the owner of the project
enters into a binding agreement with the issuer under which the owner is obligated to extend
any existing low-income affordability restrictions and any contract or agreement for rental
assistance payments for the maximum term permitted, including any renewals thereof.
new text end

deleted text begin (1) the owner of the project enters into a binding agreement with the Minnesota Housing
Finance Agency under which the owner is obligated to extend any existing low-income
affordability restrictions and any contract or agreement for rental assistance payments for
the maximum term permitted, including any renewals thereof; and
deleted text end

deleted text begin (2) the Minnesota Housing Finance Agency certifies that project reserves will be
maintained at closing of the bond issue and budgeted in future years at the lesser of:
deleted text end

deleted text begin (i) the level described in Minnesota Rules, part 4900.0010, subpart 7, item A, subitem
(2), effective May 1, 1997; or
deleted text end

deleted text begin (ii) the level of project reserves available prior to the bond issue, provided that additional
money is available to accomplish repairs and replacements needed at the time of bond issue.
deleted text end

Sec. 24.

Minnesota Statutes 2016, section 474A.047, subdivision 2, is amended to read:

Subd. 2.

15-year agreement.

Prior to the issuance of residential rental bonds, the
developer of the project for which the bond proceeds will be used must enter into a 15-year
agreement with the issuer that specifies the maximum rental rates of the rent-restricted units
in the project and the income levels of the residents of the project occupying income-restricted
units deleted text begin . deleted text end new text begin and in which the developer will agree to maintain the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, or 20 percent LIHTC project, as applicable and as described in its
application. new text end Such rental rates and income levels must be within the limitations established
under subdivision 1. The developer must annually certify to the issuer over the term of the
agreement that the rental rates for the rent-restricted units are within the limitations under
subdivision 1. The issuer may request individual certification of the income of residents of
the income-restricted units. The commissioner may request from the issuer a copy of the
annual certification prepared by the developer. The commissioner may require the issuer
to request individual certification of all residents of the income-restricted units.

Sec. 25.

Minnesota Statutes 2016, section 474A.061, is amended to read:

474A.061 MANUFACTURING, HOUSING, AND PUBLIC FACILITIES POOLS.

Subdivision 1.

Allocation application new text begin ; small issue pool and public facilities pool new text end .

(a) new text begin
For any requested allocations from the small issue pool and the public facilities pool, new text end an
issuer may apply for an allocation under this section by submitting to the department an
application on forms provided by the department, accompanied by (1) a preliminary
resolution, (2) a statement of bond counsel that the proposed issue of obligations requires
an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified
bonds to be issued, (4) an application deposit in the amount of one percent of the requested
allocation before the last Monday in deleted text begin July deleted text end new text begin June new text end , or in the amount of two percent of the
requested allocation on or after the last Monday in deleted text begin July, deleted text end new text begin June, and new text end (5) a public purpose
scoring worksheet for manufacturing project and enterprise zone facility project applications deleted text begin ,
and (6) for residential rental projects, a statement from the applicant or bond counsel as to
whether the project preserves existing federally subsidized housing for residential rental
project applications and whether the project is restricted to persons who are 55 years of age
or older deleted text end . The issuer must pay the application deposit by a check new text begin or wire transfer new text end made
payable to the Department of Management and Budget. The Minnesota Housing Finance
Agency, the Minnesota Rural Finance Authority, and the Minnesota Office of Higher
Education may apply for and receive an allocation under this section without submitting an
application deposit.

(b) An entitlement issuer may not apply for an allocation deleted text begin from the public facilities pool deleted text end new text begin
under this subdivision new text end unless it has either permanently issued bonds equal to the amount of
its entitlement allocation for the current year plus any amount of bonding authority carried
forward from previous years or returned for reallocation all of its unused entitlement
allocation. deleted text begin An entitlement issuer may not apply for an allocation from the housing pool
unless it either has permanently issued bonds equal to any amount of bonding authority
carried forward from a previous year or has returned for reallocation any unused bonding
authority carried forward from a previous year. deleted text end For purposes of this subdivision, its
entitlement allocation includes an amount obtained under section 474A.04, subdivision 6.
deleted text begin This paragraph does not apply to an application from the Minnesota Housing Finance Agency
for an allocation under subdivision 2a for cities who choose to have the agency issue bonds
on their behalf.
deleted text end

(c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.

new text begin Subd. 1a. new text end

new text begin Allocation application; housing pool. new text end

new text begin (a) For any requested allocations from
the housing pool, an issuer may apply for an allocation under this section by submitting to
the department an application on forms provided by the department, accompanied by (1) a
preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations
requires an allocation under this chapter and the Internal Revenue Code, (3) an application
deposit in the amount of two percent of the requested allocation, (4) a sworn statement from
the applicant identifying the project as either a preservation project, 30 percent AMI
residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC
project, 20 percent LIHTC project, or any other residential rental project, and (5) a
certification from the applicant or its accountant stating whether the requested allocation
exceeds the aggregate bond limitation. The issuer must pay the application deposit by a
check made payable to the Department of Management and Budget or wire transfer. The
Minnesota Housing Finance Agency may apply for and receive an allocation under this
section without submitting an application deposit.
new text end

new text begin (b) An entitlement issuer may not apply for an allocation from the housing pool unless
it either has permanently issued bonds equal to any amount of bonding authority carried
forward from a previous year or has returned for reallocation any unused bonding authority
carried forward from a previous year. For purposes of this subdivision, its entitlement
allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph
does not apply to an application from the Minnesota Housing Finance Agency for an
allocation under subdivision 2a for cities who choose to have the agency issue bonds on the
city's behalf.
new text end

new text begin (c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.
new text end

Subd. 2a.

Housing pool allocation.

(a) Commencing on the second Tuesday in January
and continuing on each Monday through deleted text begin July deleted text end new text begin June new text end 15, the commissioner shall allocate
available bonding authority from the housing pool to applications received on or before the
Monday of the preceding week for residential rental projects that meet the eligibility criteria
under section 474A.047. Allocations of available bonding authority from the housing pool
for eligible residential rental projects shall be awarded in the following order of priority:
deleted text begin (1) projects that preserve existing federally subsidized housing; (2) projects that are not
restricted to persons who are 55 years of age or older; and (3) other residential rental projects.
Prior to May 15, no allocation shall be made to a project restricted to persons who are 55
years of age or older.
deleted text end

new text begin (1) preservation projects;
new text end

new text begin (2) 30 percent AMI residential rental projects;
new text end

new text begin (3) 50 percent AMI residential rental projects;
new text end

new text begin (4) 100 percent LIHTC projects;
new text end

new text begin (5) 20 percent LIHTC projects;
new text end

new text begin (6) after June 1 in calendar years 2018, 2019, and 2020, and after January 1 starting in
calendar year 2021, single family housing programs; and
new text end

new text begin (7) other residential rental projects for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation.
new text end

new text begin If there are two or more applications for residential rental projects at the same priority level
and there is insufficient bonding authority to provide allocations for all such projects in any
one allocation period, available bonding authority shall be randomly awarded by lot. If a
residential rental project is selected by lot, but the remaining allocation is insufficient to
receive the full amount of its requested allocation, the remaining bonding authority shall
be reserved by the commissioner, or by the Minnesota Housing Finance Agency if such
authority is carried forward pursuant to section 474A.131, for the project for up to 24 months
thereafter, and if the project applies in the future to the housing pool or unified pool for
additional allocation of bonds, the project shall be fully funded up to the remaining amount
of its original application request for bonding authority before any new project applying in
the same allocation period that has an equal priority shall receive bonding authority. Within
180 days of receiving an allocation under this paragraph, an issuer must either begin issuing
obligations or submit an additional application deposit equal to one percent of the allocation
amount; if an additional deposit is submitted, the issuer must begin issuing obligations
within 18 months of receiving an allocation. new text end If an issuer that receives an allocation under
this paragraph does not issue obligations equal to all or a portion of the allocation received
within deleted text begin 120 days of the allocation deleted text end new text begin the relevant time period in this paragraph new text end or returns the
allocation to the commissioner, the amount of the allocation is canceled and returned for
reallocation through the housing pool or to the unified pool after July deleted text begin 15. deleted text end new text begin 1. If an issuer that
receives an allocation under this paragraph issues obligations within the relevant time period
in this paragraph, the commissioner shall refund 50 percent of any application deposit
previously paid within 30 days of the issuance of the obligations and the remaining 50
percent of the application deposit will be refunded (i) within 30 days after the date on which
the Internal Revenue Service Forms 8609 are issued with respect to projects generating
low-income housing tax credits, or (ii) within 90 days after the issuer provides a certification
and any other reasonable documentation requested by the commissioner evidencing that
construction of the project has been completed.
new text end

(b) deleted text begin After January 1, and through January 15, deleted text end The Minnesota Housing Finance Agency
may accept applications new text begin , according to the schedule in paragraph (c), new text end from cities for
single-family housing programs which meet program requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically
viable;

(2) the adjusted income of home buyers may not exceed 80 percent of deleted text begin the greater of
statewide or area median income as published by the Department of Housing and Urban
Development, adjusted for household size deleted text end new text begin AMI new text end ;

(3) house price limits may not exceed the federal price limits established for mortgage
revenue bond programs. Data on the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the previous year's single-family
housing program, if any, must be included in each application; and

(4) for applicants who choose to have the agency issue bonds on their behalf, an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to one percent of the requested allocation must be submitted to the Minnesota Housing
Finance Agency before the agency forwards the list specifying the amounts allocated to the
commissioner under paragraph deleted text begin (d) deleted text end new text begin (e) new text end . The agency shall submit the city's application fee
and application deposit to the commissioner when requesting an allocation from the housing
pool.

Applications by a consortium shall include the name of each member of the consortium
and the amount of allocation requested by each member.

new text begin (c) The Minnesota Housing Finance Agency may accept applications under paragraph
(b) after June 1 in calendar years 2018, 2019, and 2020, and after January 1 and through
January 15 starting in calendar year 2021.
new text end

deleted text begin (c) Any amounts remaining in the housing pool after July 15 are available for
single-family housing programs for cities that applied in January and received an allocation
under this section in the same calendar year. deleted text end new text begin (d) new text end For a city that chooses to issue bonds on
its own behalf or pursuant to a joint powers agreement, the agency must allot available
bonding authority based on the formula in paragraphs deleted text begin (d) deleted text end new text begin (e) new text end and deleted text begin (f) deleted text end new text begin (g) new text end . Allocations will
be made loan by loan, on a first-come, first-served basis among cities on whose behalf the
Minnesota Housing Finance Agency issues bonds.

Any city that received an allocation pursuant to paragraph deleted text begin (f) deleted text end new text begin (g) new text end in the same calendar
year that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement
for an amount becoming available for single-family housing programs after deleted text begin July 15 deleted text end new text begin June 1 new text end
shall notify the Minnesota Housing Finance Agency by deleted text begin July 15 deleted text end new text begin June 1 new text end . The Minnesota
Housing Finance Agency shall notify each city making a request of the amount of its
allocation within three business days after deleted text begin July 15 deleted text end new text begin June 1 new text end . The city must comply with
paragraph deleted text begin (f) deleted text end new text begin (g) new text end .

For purposes of deleted text begin paragraphs (a) to (h) deleted text end new text begin this subdivision new text end , "city" means a county or a
consortium of local government units that agree through a joint powers agreement to apply
together for single-family housing programs, and has the meaning given it in section 462C.02,
subdivision 6. "Agency" means the Minnesota Housing Finance Agency.

deleted text begin (d) deleted text end new text begin (e) new text end The total amount of allocation for mortgage bonds for one city is limited to the
lesser of: (i) the amount requested, or (ii) the product of the total amount available for
mortgage bonds from the housing pool, multiplied by the ratio of each applicant's population
as determined by the most recent estimate of the city's population released by the state
demographer's office to the total of all the applicants' population, except that each applicant
shall be allocated a minimum of $100,000 regardless of the amount requested or the amount
determined under the formula in clause (ii). If a city applying for an allocation is located
within a county that has also applied for an allocation, the city's population will be deducted
from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward
to the commissioner a list specifying the amounts allotted to each application with all
application fees and deposits from applicants who choose to have the agency issue bonds
on their behalf.

Total allocations from the housing pool for single-family housing programs may not
exceed 31 percent of the adjusted allocation to the housing pool deleted text begin until after July 15 deleted text end .

deleted text begin (e) deleted text end new text begin (f) new text end The agency may issue bonds on behalf of participating cities. The agency shall
request an allocation from the commissioner for all applicants who choose to have the
agency issue bonds on their behalf and the commissioner shall allocate the requested amount
to the agency. The agency may request an allocation at any time after deleted text begin the second Tuesday
in January and through the last Monday in July deleted text end new text begin June 1 new text end . After awarding an allocation and
receiving a notice of issuance for the mortgage bonds issued on behalf of the participating
cities, the commissioner shall transfer the application deposits to the Minnesota Housing
Finance Agency to be returned to the participating cities. The Minnesota Housing Finance
Agency shall return any application deposit to a city that paid an application deposit under
paragraph (b), clause (4), but was not part of the list forwarded to the commissioner under
paragraph deleted text begin (d) deleted text end new text begin (e) new text end .

deleted text begin (f) deleted text end new text begin (g) new text end A city may choose to issue bonds on its own behalf or through a joint powers
agreement and may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and a one percent
application deposit to the commissioner no later than the Monday of the week preceding
an allocation. If the total amount requested by all applicants exceeds the amount available
in the pool, the city may not receive a greater allocation than the amount it would have
received under the list forwarded by the Minnesota Housing Finance Agency to the
commissioner. No city may request or receive an allocation from the commissioner until
the list under paragraph deleted text begin (d) deleted text end new text begin (e) new text end has been forwarded to the commissioner. A city must request
an allocation from the commissioner no later than the last Monday in deleted text begin July deleted text end new text begin June new text end . No city
may receive an allocation from the housing pool for mortgage bonds which has not first
applied to the Minnesota Housing Finance Agency. The commissioner shall allocate the
requested amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

deleted text begin (g) deleted text end new text begin (h) new text end No entitlement city or county or city in an entitlement county may apply for or
be allocated authority to issue mortgage bonds or use mortgage credit certificates from the
housing pool. No city in an entitlement county may apply for or be allocated authority to
issue residential rental bonds from the housing pool or the unified pool.

deleted text begin (h) deleted text end new text begin (i) new text end A city that does not use at least 50 percent of its allotment by the date applications
are due for the first allocation that is made from the housing pool for single-family housing
programs in the immediately succeeding calendar year may not apply to the housing pool
for a single-family mortgage bond or mortgage credit certificate program allocation that
exceeds the amount of its allotment for the preceding year that was used by the city in the
immediately preceding year or receive an allotment from the housing pool in the succeeding
calendar year that exceeds the amount of its allotment for the preceding year that was used
in the preceding year. The minimum allotment is $100,000 for an allocation made prior to
July deleted text begin 15 deleted text end new text begin 1 new text end , regardless of the amount used in the preceding calendar year, except that a city
whose allocation in the preceding year was the minimum amount of $100,000 and who did
not use at least 50 percent of its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each local government unit in a
consortium must meet the requirements of this paragraph.

Subd. 2b.

Small issue pool allocation.

Commencing on the second Tuesday in January
and continuing on each Monday through the last Monday in deleted text begin July deleted text end new text begin June new text end , the commissioner
shall allocate available bonding authority from the small issue pool to applications received
on or before the Monday of the preceding week for manufacturing projects and enterprise
zone facility projects. From the second Tuesday in January through the last Monday in deleted text begin July deleted text end new text begin
June new text end , the commissioner shall reserve $5,000,000 of the available bonding authority from
the small issue pool for applications for agricultural development bond loan projects of the
Minnesota Rural Finance Authority.

Beginning in calendar year 2002, on the second Tuesday in January through the last
Monday in deleted text begin July deleted text end new text begin June new text end , the commissioner shall reserve $10,000,000 of available bonding
authority in the small issue pool for applications for student loan bonds of or on behalf of
the Minnesota Office of Higher Education. The total amount of allocations for student loan
bonds from the small issue pool may not exceed $10,000,000 per year.

The commissioner shall reserve $10,000,000 until the day after the last Monday in
February, $10,000,000 until the day after the last Monday in April, and $10,000,000 until
the day after the last Monday in June in the small issue pool for enterprise zone facility
projects and manufacturing projects. The amount of allocation provided to an issuer for a
specific enterprise zone facility project or manufacturing project will be based on the number
of points received for the proposed project under the scoring system under section 474A.045.

If there are two or more applications for manufacturing and enterprise zone facility
projects from the small issue pool and there is insufficient bonding authority to provide
allocations for all projects in any one week, the available bonding authority shall be awarded
based on the number of points awarded a project under section 474A.045, with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
receive an equal number of points, available bonding authority shall be awarded by lot
unless otherwise agreed to by the respective issuers.

Subd. 2c.

Public facilities pool allocation.

From the beginning of the calendar year and
continuing for a period of 120 days, the commissioner shall reserve $5,000,000 of the
available bonding authority from the public facilities pool for applications for public facilities
projects to be financed by the Western Lake Superior Sanitary District. Commencing on
the second Tuesday in January and continuing on each Monday through the last Monday
in deleted text begin July deleted text end new text begin June new text end , the commissioner shall allocate available bonding authority from the public
facilities pool to applications for eligible public facilities projects received on or before the
Monday of the preceding week. If there are two or more applications for public facilities
projects from the pool and there is insufficient available bonding authority to provide
allocations for all projects in any one week, the available bonding authority shall be awarded
by lot unless otherwise agreed to by the respective issuers.

Subd. 4.

Return of allocation; deposit refund new text begin for small issue pool or public facilities
pool new text end .

(a) new text begin For any requested allocation from the small issue pool or the public facilities pool,
new text end if an issuer that receives an allocation under this section determines that it will not issue
obligations equal to all or a portion of the allocation received under this section within 120
days of allocation or within the time period permitted by federal tax law, whichever is less,
the issuer must notify the department. If the issuer notifies the department or the 120-day
period since allocation has expired prior to the last Monday in deleted text begin July deleted text end new text begin June new text end , the amount of
allocation is canceled and returned for reallocation through the pool from which it was
originally allocated. If the issuer notifies the department or the 120-day period since allocation
has expired on or after the last Monday in deleted text begin July deleted text end new text begin June new text end , the amount of allocation is canceled
and returned for reallocation through the unified pool. If the issuer notifies the department
after the last Monday in November, the amount of allocation is canceled and returned for
reallocation to the Minnesota Housing Finance Agency. To encourage a competitive
application process, the commissioner shall reserve, for new applications, the amount of
allocation that is canceled and returned for reallocation under this section for a minimum
of seven calendar days.

(b) An issuer that returns for reallocation all or a portion of an allocation received under
this deleted text begin section deleted text end new text begin subdivision new text end within 120 days of allocation shall receive within 30 days a refund
equal to:

(1) one-half of the application deposit for the amount of bonding authority returned
within 30 days of receiving allocation;

(2) one-fourth of the application deposit for the amount of bonding authority returned
between 31 and 60 days of receiving allocation; and

(3) one-eighth of the application deposit for the amount of bonding authority returned
between 61 and 120 days of receiving allocation.

(c) No refund shall be available for allocations returned 120 or more days after receiving
the allocation or beyond the last Monday in November.

new text begin Subd. 4a. new text end

new text begin Return of allocation; deposit refund for housing pool. new text end

new text begin (a) For any requested
allocations from the housing pool, if an issuer that receives an allocation under this section
determines that it will not issue obligations equal to all or a portion of the allocation received
under this section within the time period provided under section 474A.061, subdivision 2a,
paragraph (a), or within the time period permitted by federal tax law, whichever is less, the
issuer must notify the department. If the issuer notifies the department or the time period
provided under section 474A.061, subdivision 2a, paragraph (a), has expired prior to the
last Monday in June, the amount of allocation is canceled and returned for reallocation
through the pool from which it was originally allocated. If the issuer notifies the department
or the time period provided under section 474A.061, subdivision 2a, paragraph (a), has
expired on or after the last Monday in June, the amount of the allocation is canceled and
returned for reallocation through the unified pool. If the issuer notifies the department after
the last Monday in November, the amount of allocation is canceled and returned for
reallocation to the Minnesota Housing Finance Agency. To encourage a competitive
application process, the commissioner shall reserve, for new applications, the amount of
allocation that is canceled and returned for reallocation under this section for a minimum
of seven calendar days.
new text end

new text begin (b) An issuer that returns for reallocation all or a portion of an allocation received under
this subdivision within 180 days of allocation shall receive within 30 days a refund equal
to:
new text end

new text begin (1) one-half of the application deposit for the amount of bonding authority returned
within 45 days of receiving allocation;
new text end

new text begin (2) one-fourth of the allocation deposit for the amount of bonding authority returned
between 46 and 90 days of receiving allocation; and
new text end

new text begin (3) one-eighth of the application deposit for the amount of bonding authority returned
between 91 and 180 days of receiving allocation.
new text end

new text begin (c) No refund shall be available for allocations returned 180 or more days after receiving
the allocation or beyond the last Monday in November.
new text end

Sec. 26.

Minnesota Statutes 2016, section 474A.062, is amended to read:

474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION deleted text begin 120-DAY deleted text end ISSUANCE
EXEMPTION.

The Minnesota Office of Higher Education is exempt from deleted text begin the 120-day issuance
requirements deleted text end new text begin any time limitation on issuance of bonds set forth new text end in this chapter and may
carry forward allocations for student loan bonds, subject to carryforward notice requirements
of section 474A.131, subdivision 2.

Sec. 27.

Minnesota Statutes 2016, section 474A.091, is amended to read:

474A.091 ALLOCATION OF UNIFIED POOL.

Subdivision 1.

Unified pool amount.

On the day after the last Monday in deleted text begin July deleted text end new text begin June new text end any
bonding authority remaining unallocated from the small issue pool, the housing pool, and
the public facilities pool is transferred to the unified pool and must be reallocated as provided
in this section.

Subd. 2.

Application new text begin for residential rental projects new text end .

new text begin (a) new text end Issuers may apply for an
allocation new text begin for residential rental bonds new text end under this section by submitting to the department
an application on forms provided by the department accompanied by new text begin :
new text end

(1) a preliminary resolution deleted text begin , deleted text end new text begin ;
new text end

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code deleted text begin , deleted text end new text begin ;
new text end

(3) deleted text begin the type of qualified bonds to be issued, (4) deleted text end an application deposit in the amount of
two percent of the requested allocation new text begin ; new text end deleted text begin ,(5) a public purpose scoring worksheet for
manufacturing and enterprise zone applications, and (6) for residential rental projects, a
statement from the applicant or bond counsel as to whether the project preserves existing
federally subsidized housing and whether the project is restricted to persons who are 55
years of age or older.
deleted text end

new text begin (4) a sworn statement from the applicant identifying the project as either a preservation
project, 30 percent AMI residential rental project, 50 percent AMI residential rental project,
100 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and
new text end

new text begin (5) a certification from the applicant or its accountant stating whether the requested
allocation exceeds the aggregate bond limitation. Applications for projects requesting bonds
in excess of the aggregate bond limitation may not apply or be allocated bonding authority
until after September 1 each year.
new text end

The issuer must pay the application deposit by check. An entitlement issuer may not apply
for an allocation for deleted text begin public facility bonds, deleted text end residential rental project bonds deleted text begin , or mortgage
bonds deleted text end under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, its entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.

new text begin (b) Within 180 days of receiving an allocation under this subdivision, an issuer must
either begin issuing obligations or submit an additional application deposit equal to one
percent of the allocation amount; if an additional deposit is submitted, the issuer must begin
issuing obligations within 18 months of receiving an allocation. If an issuer that receives
an allocation under this subdivision does not issue obligations equal to all or a portion of
the allocation received within the 180-day time period provided in this paragraph or returns
the allocation to the commissioner, the amount of the allocation is canceled and returned
for reallocation through the unified pool. If an issuer that receives an allocation under this
subdivision issues obligations within the 180-day time period provided in this paragraph,
the commissioner shall refund 50 percent of any application deposit previously paid within
30 days of the issuance of the obligations and the remaining 50 percent of such application
deposit will be refunded (1) within 30 days after the date on which Internal Revenue Service
Forms 8609 are issued with respect to projects generating low-income housing tax credits,
or (2) within 90 days after the issuer provides a certification and any other reasonable
documentation requested by the commissioner evidencing that construction of the project
has been completed.
new text end

new text begin (c) new text end Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency deleted text begin , the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority deleted text end may apply for and receive an allocation under this section without
submitting an application deposit.

new text begin Subd. 2a. new text end

new text begin Application for all other types of qualified bonds. new text end

new text begin Issuers may apply for an
allocation for all types of qualified bonds other than residential rental bonds under this
section by submitting to the department an application on forms provided by the department
accompanied by (1) a preliminary resolution, (2) a statement of bond counsel that the
proposed issue of obligations requires an allocation under this chapter and the Internal
Revenue Code, (3) the type of qualified bonds to be issued, (4) an application deposit in
the amount of two percent of the requested allocation, and (5) a public purpose scoring
worksheet for manufacturing and enterprise zone applications. The issuer must pay the
application deposit by check. An entitlement issuer may not apply for an allocation for
public facility bonds or mortgage bonds under this section unless it has either permanently
issued bonds equal to the amount of its entitlement allocation for the current year plus any
amount carried forward from previous years or returned for reallocation all of its unused
entitlement allocation. For purposes of this subdivision, its entitlement allocation includes
an amount obtained under section 474A.04, subdivision 6.
new text end

new text begin Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.
new text end

Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available bonding
authority under this section on the Monday of every other week beginning with the first
Monday in deleted text begin August deleted text end new text begin July new text end through and on the last Monday in November. Applications for
allocations must be received by the department by 4:30 p.m. on the Monday preceding the
Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation
will be made or the applications must be received by the next business day after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations from
the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan projects.

(c) On the first Monday in October through the last Monday in November, allocations
shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota Office
of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the unified
pool and there is insufficient bonding authority to provide allocations for all manufacturing
projects in any one allocation period, the available bonding authority shall be awarded based
on the number of points awarded a project under section 474A.045 with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
for manufacturing projects receive an equal amount of points, available bonding authority
shall be awarded by lot unless otherwise agreed to by the respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from the
unified pool and there is insufficient bonding authority to provide allocations for all enterprise
zone facility projects in any one allocation period, the available bonding authority shall be
awarded based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation first. If two or
more applications for enterprise zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(f) If there are two or more applications for residential rental projects from the unified
pool and there is insufficient bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available bonding authority shall be awarded
in the following order of priority: (1) deleted text begin projects that preserve existing federally subsidized
housing; (2) projects that are not restricted to persons who are 55 years of age or older; and
(3) deleted text end new text begin preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI
residential rental projects; (4) 100 percent LIHTC projects; (5) 20 percent LIHTC projects;
(6) new text end other residential rental projects new text begin for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation; and (7) other residential
rental projects for which the amount of bonds requested in their respective applications
exceeds the aggregate bond limitation and which apply on or after September 1 of a calendar
year. If there are two or more applications for residential rental projects at the same priority
level and there is insufficient bonding authority to provide allocations for all such projects
in any one allocation period, available bonding authority shall be randomly awarded by lot
but only for projects that can receive the full amount of their respective requested allocations.
If a residential rental project does not receive any of its requested allocation under the
random award, the remaining bonding authority not allocated to the project shall be reserved
by the commissioner, or by the Minnesota Housing Finance Agency if the authority is carried
forward pursuant to section 474A.131, for the project for up to 24 months thereafter, and
if the project applies in the future to the housing pool or unified pool for additional allocation
of bonds, the project shall be fully funded up to the remaining amount of its original
application request for bonding authority before any new project applying in the same
allocation period that has an equal priority shall receive bonding authority new text end .

(g) From the first Monday in deleted text begin August deleted text end new text begin July new text end through the last Monday in deleted text begin November deleted text end new text begin August new text end ,
$20,000,000 of bonding authority or an amount equal to the total annual amount of bonding
authority allocated to the small issue pool under section 474A.03, subdivision 1, less the
amount allocated to issuers from the small issue pool for that year, whichever is less, is
reserved within the unified pool for small issue bonds to the extent such amounts are available
within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and the
unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may not
exceed $25,000,000 per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified bond
category other than enterprise zone facility projects, manufacturing projects, and residential
rental projects, allocations shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and return
the application deposit to the applicant within 30 days unless the applicant requests in writing
that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be evidenced
by issuance of a certificate of allocation.

Subd. 3a.

Mortgage bonds.

(a) Bonding authority remaining in the unified pool on
October 1 is available for single-family housing programs for cities that applied in deleted text begin January deleted text end new text begin
June new text end and received an allocation under section 474A.061, subdivision 2a, in the same calendar
year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
bonds pursuant to this section, minus any amounts for a city or consortium that intends to
issue bonds on its own behalf under paragraph (c).

(b) The agency may issue bonds on behalf of participating cities. The agency shall request
an allocation from the commissioner for all applicants who choose to have the agency issue
bonds on their behalf and the commissioner shall allocate the requested amount to the
agency. Allocations shall be awarded by the commissioner each Monday commencing on
the first Monday in October through the last Monday in November for applications received
by 4:30 p.m. on the Monday of the week preceding an allocation.

For cities who choose to have the agency issue bonds on their behalf, allocations will
be made loan by loan, on a first-come, first-served basis among the cities. The agency shall
submit an application fee pursuant to section 474A.03, subdivision 4, and an application
deposit equal to two percent of the requested allocation to the commissioner when requesting
an allocation from the unified pool. After awarding an allocation and receiving a notice of
issuance for mortgage bonds issued on behalf of the participating cities, the commissioner
shall transfer the application deposit to the Minnesota Housing Finance Agency.

For purposes of paragraphs (a) to (d), "city" means a county or a consortium of local
government units that agree through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in section 462C.02, subdivision
6. "Agency" means the Minnesota Housing Finance Agency.

(c) Any city that received an allocation pursuant to section 474A.061, subdivision 2a,
paragraph (f), in the current year that wishes to receive an additional allocation from the
unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement shall
notify the Minnesota Housing Finance Agency by the third Monday in September. The total
amount of allocation for mortgage bonds for a city choosing to issue bonds on its own behalf
or through a joint powers agreement is limited to the lesser of: (i) the amount requested, or
(ii) the product of the total amount available for mortgage bonds from the unified pool,
multiplied by the ratio of the population of each city that applied in January and received
an allocation under section 474A.061, subdivision 2a, in the same calendar year, as
determined by the most recent estimate of the city's population released by the state
demographer's office to the total of the population of all the cities that applied in January
and received an allocation under section 474A.061, subdivision 2a, in the same calendar
year. If a city choosing to issue bonds on its own behalf or through a joint powers agreement
is located within a county that has also chosen to issue bonds on its own behalf or through
a joint powers agreement, the city's population will be deducted from the county's population
in calculating the amount of allocations under this paragraph.

The Minnesota Housing Finance Agency shall notify each city choosing to issue bonds
on its own behalf or pursuant to a joint powers agreement of the amount of its allocation
by October 15. Upon determining the amount of the allocation of each choosing to issue
bonds on its own behalf or through a joint powers agreement, the agency shall forward a
list specifying the amounts allotted to each city.

A city that chooses to issue bonds on its own behalf or through a joint powers agreement
may request an allocation from the commissioner by forwarding an application with an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to two percent of the requested amount to the commissioner no later than 4:30 p.m. on the
Monday of the week preceding an allocation. Allocations to cities that choose to issue bonds
on their own behalf shall be awarded by the commissioner on the first Monday after October
15 through the last Monday in November. No city may receive an allocation from the
commissioner after the last Monday in November. The commissioner shall allocate the
requested amount to the city or cities subject to the limitations under this subdivision.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

(d) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the
unified pool.

(e) An allocation awarded to the agency for mortgage bonds under this section may be
carried forward by the agency subject to notice requirements under section 474A.131.

Subd. 4.

Remaining bonding authority.

All remaining bonding authority available for
allocation under this section on December 1, is allocated to the Minnesota Housing Finance
Agency.

Subd. 5.

Return of allocation; deposit refund.

(a) If an issuer that receives an allocation
under this section determines that it will not issue obligations equal to all or a portion of
the allocation received under this section within deleted text begin 120 deleted text end new text begin the applicable number of new text end days deleted text begin of deleted text end new text begin after new text end
the allocation new text begin required in this chapter new text end or within the time period permitted by federal tax law,
whichever is less, the issuer must notify the department. If the issuer notifies the department
or deleted text begin the 120-day deleted text end new text begin such new text end period since allocation has expired prior to the last Monday in November,
the amount of allocation is canceled and returned for reallocation through the unified pool.
If the issuer notifies the department on or after the last Monday in November, the amount
of allocation is canceled and returned for reallocation to the Minnesota Housing Finance
Agency. To encourage a competitive application process, the commissioner shall reserve,
for new applications, the amount of allocation that is canceled and returned for reallocation
under this section for a minimum of seven calendar days.

(b) An issuer that returns for reallocation all or a portion of an allocation new text begin for all types
of bonds other than residential rental project bonds new text end received under this section within 120
days of the allocation shall receive within 30 days a refund equal to:

(1) one-half of the application deposit for the amount of bonding authority returned
within 30 days of receiving the allocation;

(2) one-fourth of the application deposit for the amount of bonding authority returned
between 31 and 60 days of receiving the allocation; and

(3) one-eighth of the application deposit for the amount of bonding authority returned
between 61 and 120 days of receiving the allocation.

deleted text begin (c) deleted text end No refund of the application deposit shall be available for allocations returned on or
after the last Monday in November.

new text begin (c) An issuer that returns for reallocation all or a portion of an allocation for residential
rental project bonds received under this section within the earlier of 180 days of the allocation
or the end of the year shall receive within 30 days a refund equal to:
new text end

new text begin (1) one-half of the application deposit for the amount of bonding authority returned
within 45 days of receiving the allocation;
new text end

new text begin (2) one-fourth of the application deposit for the amount of bonding authority returned
between 46 and 90 days of receiving the allocation; and
new text end

new text begin (3) one-eighth of the application deposit for the amount of bonding authority returned
between 91 and 180 days of receiving the allocation.
new text end

new text begin No refund of the application deposit shall be available for allocations returned on or after
the last Monday in November.
new text end

Subd. 6.

Final allocation; carryforward.

Notwithstanding the notice requirements of
section 474A.131, subdivision 2, any bonding authority remaining unissued by the Minnesota
Housing Finance Agency on the last business day in December shall be carried forward
into the next calendar year by the commissioner for the Minnesota Housing Finance Agency. new text begin
Any authority carried forward shall be allocated to utilize such authority that is closest to
expiring first, and in all events, Minnesota Housing Finance Agency shall allocate its bonding
authority to utilize such authority carried forward prior to any current year's allocation.
new text end

Sec. 28.

Minnesota Statutes 2016, section 474A.131, is amended to read:

474A.131 NOTICE OF ISSUE AND NOTICE OF CARRYFORWARD.

Subdivision 1.

Notice of issue.

Each issuer deleted text begin that issues bonds deleted text end with an allocation received
under this chapter shall provide a notice of issue to the department on forms provided by
the department stating:

(1) the date of issuance of the bonds;

(2) the title of the issue;

(3) the principal amount of the bonds;

(4) the type of qualified bonds under federal tax law;

(5) the dollar amount of the bonds issued that were subject to the annual volume cap;
and

(6) for entitlement issuers, whether the allocation is from current year entitlement
authority or is from carryforward authority.

For obligations that are issued as a part of a series of obligations, a notice must be
provided for each series. A penalty of one-half of the amount of the application deposit not
to exceed $5,000 shall apply to any issue of obligations for which a notice of issue is not
provided to the department within five business days after issuance or before 4:30 p.m. on
the last business day in December, whichever occurs first. Within 30 days after receipt of
a notice of issue the department shall refund a portion of the application deposit equal to
one percent of the amount of the bonding authority actually issued if a one percent application
deposit was made, or equal to two percent of the amount of the bonding authority actually
issued if deleted text begin a two percent deleted text end new text begin the applicable new text end application deposit was made, less any penalty amount.

Subd. 1a.

Certificate of notice.

If an allocation received under this chapter is used for
mortgage credit certificates, a certificate notice must be submitted to the department on
forms provided by the department stating the date of the filing of the election not to issue
bonds as provided under section 25, paragraph (c), of the Internal Revenue Code and the
amount of allocation authority to be used under the program.

A penalty of one-half of the amount of the application deposit not to exceed $5,000 shall
apply to any mortgage credit certificate program for which a certificate notice is not provided
to the department within five days of the date of the filing of the election not to issue bonds
or before the last Monday in December, whichever occurs first. Within 30 days after receipt
of a certificate notice the department shall refund a portion of the application deposit equal
to one percent of the amount of the bonding authority to be used for the mortgage credit
certificate program, less any penalty amount.

Subd. 1b.

Deadline for issuance of qualified bonds.

new text begin (a) new text end If an issuer fails to notify the
department before 4:30 p.m. on the last business day in December of issuance of obligations
pursuant to an allocation received for any qualified bond project or issuance of an entitlement
allocation new text begin other than those involving residential rental bonds new text end , the allocation is canceled and
the bonding authority is allocated to the Minnesota Housing Finance Agency for carryforward
by the commissioner under section 474A.091, subdivision 6.

new text begin (b) With respect to (1) an allocation received for a residential rental project for which
such obligations have not been issued before 4:30 p.m. on the last business day in December
and the time period for issuance of such obligations provided under section 474A.061,
subdivision 2a, or section 474A.091, subdivision 2, as applicable has not expired, or (2)
bonding authority reserved for a project for up to 24 months under section 474A.061,
subdivision 2a, or section 474A.091, subdivision 3, paragraph (f), as of 4:30 p.m. on the
last business day of December, such bonding authority shall be allocated to the Minnesota
Housing Finance Agency for carryforward by the commissioner under section 474A.091,
subdivision 6; provided, however, that such allocation shall remain reserved by the Minnesota
Housing Finance Agency for the residential rental project described in the original application
and the Minnesota Housing Finance Agency will have the fiduciary duty to issue such bonds
as intended by the originally intended issuer. In addition, any obligations issued by the
Minnesota Housing Finance Agency for a residential rental project that is subject to this
subdivision shall not be subject to the debt management policies of the Minnesota Housing
Finance Agency, as adopted and amended from time to time. The Minnesota Housing
Finance Agency shall not charge any issuer fees for an issuance under this subdivision and
all issuer fees shall be paid to the original applicant for the bonds. Notwithstanding this
paragraph, the Minnesota Housing Finance Agency may be reimbursed for its reasonable
costs to issue the bonds.
new text end

Subd. 2.

Carryforward notice.

If an issuer intends to carry forward an allocation received
under this chapter, it must notify the department in writing before 4:30 p.m. on the last
business day in December. This notice requirement does not apply to the Minnesota Housing
Finance Agency for the carryforward of unallocated unified pool balances new text begin or for the
carryforward of allocations of residential rental project bonds pursuant to subdivision 1b new text end .

Subd. 3.

Irrevocable allocation.

The department may not revoke an allocation received
under this chapter after receiving a notice of issue or certificate notice from the issuer.

new text begin Subd. 4. new text end

new text begin Allocation plan. new text end

new text begin By January 15 of each year, the commissioner of the Minnesota
Housing Finance Agency shall annually prepare a tax-exempt bond allocation plan that
identifies the amount of tax-exempt bonds allocated to the Minnesota Housing Finance
Agency during the previous calendar year, identifies the amount of carryforward bonds and
the respective issuers pursuant to subdivision 1b, and for all other bond carryforward,
whether or not the Minnesota Housing Fiance Agency intends to carryforward such bonds
not otherwise allocated in the previous year as qualified residential rental bonds or qualified
mortgage bonds or mortgage credit certificates consistent with the requirements of Internal
Revenue Service Form 8328, identifies the carryforward balance of any tax-exempt bonds
allocated to the Minnesota Housing Finance Agency including those bonds carried forward
as qualified residential rental bonds and qualified mortgage bonds or mortgage credit
certificates. Prior to January 15 of each year, the Minnesota Housing Finance Agency must
post on its official Web site the tax-exempt bond allocation plan and invite public comment
until February 1. The Minnesota Housing Finance Agency shall not file the Internal Revenue
Service Form 8328 until the public comment period had closed on February 1 unless
otherwise required by federal law.
new text end

Sec. 29.

Minnesota Statutes 2016, section 474A.14, is amended to read:

474A.14 NOTICE OF AVAILABLE AUTHORITY.

The department shall provide at its official Web site a written notice of the amount of
bonding authority in the housing, small issue, and public facilities pools as soon after January
1 as possible. The department shall provide at its official Web site a written notice of the
amount of bonding authority available for allocation in the unified pool as soon after deleted text begin August deleted text end new text begin
July new text end 1 as possible.

Sec. 30.

Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter
189, article 7, section 8, and Laws 2017, chapter 94, article 6, section 17, is amended to
read:

Sec. 14. ASSIGNED RISK TRANSFER.

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

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

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

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

(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
management and budget shall transfer to the general fund, any unencumbered or unexpended
balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or
the date the commissioner of commerce determines that an excess surplus in the assigned
risk plan does not exist, whichever occurs earlier.

(f) By June 30, deleted text begin 2017 deleted text end new text begin 2018 new text end , and each year thereafter, if the commissioner of commerce
determines on the basis of an audit that there is an excess surplus in the assigned risk plan
created under Minnesota Statutes, section 79.252, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed deleted text begin $2,000,000 deleted text end new text begin $3,000,000 new text end
each year, to the deleted text begin rural policy and development center fund under Minnesota Statutes, section
116J.4221 deleted text end new text begin Minnesota manufactured home relocation trust fund established in Minnesota
Statutes, section 462A.35, subdivision 1 new text end . This transfer occurs prior to any transfer under
paragraph (b) or under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a),
clause (1). The total amount authorized for all transfers under this paragraph must not exceed
deleted text begin $2,000,000 deleted text end new text begin $3,000,000 new text end . This paragraph expires the day following the transfer in which the
total amount transferred under this paragraph to the deleted text begin rural policy and development center
fund deleted text end new text begin Minnesota manufactured home relocation trust fund new text end equals deleted text begin $2,000,000 deleted text end new text begin $3,000,000 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. 31. new text begin ADVANCES TO THE MINNESOTA MANUFACTURED HOME
RELOCATION TRUST FUND.
new text end

new text begin (a) Until June 30, 2020, the Minnesota Housing Finance Agency is authorized to advance
up to $400,000 from available resources to the Minnesota manufactured home relocation
trust fund established under Minnesota Statutes, section 462A.35, if the account balance in
the Minnesota manufactured home relocation trust fund is insufficient to pay the amounts
claimed under Minnesota Statutes, section 327C.095, subdivision 13.
new text end

new text begin (b) The Minnesota Housing Finance Agency shall be reimbursed from the Minnesota
manufactured home relocation trust fund for any money advanced by the agency under
paragraph (a) to the fund.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 471.9996, subdivision 2, new text end new text begin is repealed.
new text end

Sec. 33. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise noted, sections 11 to 28 are effective the day following final
enactment.
new text end

ARTICLE 5

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2016, section 177.24, subdivision 1, is amended to read:

Subdivision 1.

Amount.

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

(1) "Large employer" means an enterprise whose annual gross volume of sales made or
business done is not less than $500,000 (exclusive of excise taxes at the retail level that are
separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales made or
business done is less than $500,000 (exclusive of excise taxes at the retail level that are
separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
to 177.35.

new text begin (3) "Employee receiving gratuities" means an employee who customarily and regularly
receives more than $30 per month in gratuities.
new text end

(b) Except as otherwise provided in sections 177.21 to 177.35:

(1) every large employer must pay each employee wages at a rate of at least:

(i) $8.00 per hour beginning August 1, 2014;

(ii) $9.00 per hour beginning August 1, 2015;

(iii) $9.50 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018; and

(2) every small employer must pay each employee at a rate of at least:

(i) $6.50 per hour beginning August 1, 2014;

(ii) $7.25 per hour beginning August 1, 2015;

(iii) $7.75 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018.

(c) Notwithstanding paragraph (b), during the first 90 consecutive days of employment,
an employer may pay an employee under the age of 20 years a wage of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer
that includes the provision by the employer of a food or lodging benefit, if the employee is
working under authority of a summer work travel exchange visitor program (J) nonimmigrant
visa, a wage of at least:

(1) $7.25 per hour beginning August 1, 2014;

(2) $7.50 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

(e) Notwithstanding paragraph (b), a large employer must pay an employee under the
age of 18 at a rate of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

(f) No later than August 31 of each year, beginning in 2017, the commissioner shall
determine the percentage increase in the rate of inflation, as measured by the implicit price
deflator, national data for personal consumption expenditures as determined by the United
States Department of Commerce, Bureau of Economic Analysis during the 12-month period
immediately preceding that August or, if that data is unavailable, during the most recent
12-month period for which data is available. The minimum wage rates in paragraphs (b),
(c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded to the nearest cent;
or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A minimum
wage rate shall not be reduced under this paragraph. The new minimum wage rates
determined under this paragraph take effect on the next January 1.

(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner
may issue an order that an increase calculated under paragraph (f) not take effect. The
commissioner may issue the order only if the commissioner, after consultation with the
commissioner of management and budget, finds that leading economic indicators, including
but not limited to projections of gross domestic product calculated by the United States
Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index
issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates,
indicate the potential for a substantial downturn in the state's economy. Prior to issuing an
order, the commissioner shall also calculate and consider the ratio of the rate of the calculated
change in the minimum wage rate to the rate of change in state median income over the
same time period used to calculate the change in wage rate. Prior to issuing the order, the
commissioner shall hold a public hearing, notice of which must be published in the State
Register, on the department's Web site, in newspapers of general circulation, and by other
means likely to inform interested persons of the hearing, at least ten days prior to the hearing.
The commissioner must allow interested persons to submit written comments to the
commissioner before the public hearing and for 20 days after the public hearing.

(2) The commissioner may in a year subsequent to issuing an order under clause (1),
make a supplemental increase in the minimum wage rate in addition to the increase for a
year calculated under paragraph (f). The supplemental increase may be in an amount up to
the full amount of the increase not put into effect because of the order. If the supplemental
increase is not the full amount, the commissioner may make a supplemental increase of the
difference, or any part of a difference, in a subsequent year until the full amount of the
increase ordered not to take effect has been included in a supplemental increase. In making
a determination to award a supplemental increase under this clause, the commissioner shall
use the same considerations and use the same process as for an order under clause (1). A
supplemental wage increase is not subject to and shall not be considered in determining
whether a wage rate increase exceeds the limits for annual wage rate increases allowed
under paragraph (f).

new text begin (h) Notwithstanding paragraph (b), every large employer must pay an employee receiving
gratuities a wage of at least:
new text end

new text begin (1) $9.65 per hour if the employee earns sufficient gratuities during the workweek so
that the sum of $9.65 per hour and gratuities received averages at least the amount established
for large employers under paragraph (j); or
new text end

new text begin (2) the greater of the wage rate under this section or United States Code, title 29, section
206(a)(1), if the employee does not earn sufficient gratuities during the workweek so that
the sum of $9.65 per hour and gratuities received averages at least the amount established
for large employers under paragraph (j).
new text end

new text begin (i) Notwithstanding paragraph (b), every small employer must pay an employee receiving
gratuities a wage of at least:
new text end

new text begin (1) $7.87 per hour if the employee earns sufficient gratuities during the workweek so
that the sum of $7.87 per hour and gratuities received averages at least the amount established
for small employers under paragraph (j); or
new text end

new text begin (2) the greater of the wage rate under this section or United States Code, title 29, section
206(a)(1), if the employee does not earn sufficient gratuities during the workweek so that
the sum of $7.87 per hour and gratuities received averages at least the amount established
for small employers under paragraph (j).
new text end

new text begin (j)(1) For large employers, the average hourly wage and gratuity amount begins at $14
and increases annually by the lesser of:
new text end

new text begin (i) two percent, rounded to the nearest cent; or
new text end

new text begin (ii) the percentage calculated by the commissioner under paragraph (f), rounded to the
nearest cent.
new text end

new text begin (2) For small employers, the average hourly wage and gratuity amount begins at $12
and increases annually by the lesser of:
new text end

new text begin (i) two percent, rounded to the nearest cent; or
new text end

new text begin (ii) the percentage calculated by the commissioner under paragraph (f), rounded to the
nearest cent.
new text end

new text begin An average hourly wage and gratuity amount shall not be reduced under this paragraph.
The adjusted average hourly wage and salary amounts determined under this paragraph take
effect on the next January 1.
new text end

Sec. 2.

Minnesota Statutes 2016, section 182.666, subdivision 1, is amended to read:

Subdivision 1.

Willful or repeated violations.

Any employer who willfully or repeatedly
violates the requirements of section 182.653, or any standard, rule, or order adopted under
the authority of the commissioner as provided in this chapter, may be assessed a fine not to
exceed deleted text begin $70,000 deleted text end new text begin $126,750 new text end for each violation. The minimum fine for a willful violation is
deleted text begin $5,000 deleted text end new text begin $9,055 new text end .

Sec. 3.

Minnesota Statutes 2016, section 182.666, subdivision 2, is amended to read:

Subd. 2.

Serious violations.

Any employer who has received a citation for a serious
violation of its duties under section 182.653, or any standard, rule, or order adopted under
the authority of the commissioner as provided in this chapter, shall be assessed a fine not
to exceed deleted text begin $7,000 deleted text end new text begin $12,675 new text end for each violation. If a serious violation under section 182.653,
subdivision 2, causes or contributes to the death of an employee, the employer shall be
assessed a fine of up to $25,000 new text begin for each violation new text end .

Sec. 4.

Minnesota Statutes 2016, section 182.666, subdivision 3, is amended to read:

Subd. 3.

Nonserious violations.

Any employer who has received a citation for a violation
of its duties under section 182.653, subdivisions 2 to 4, where the violation is specifically
determined not to be of a serious nature as provided in section 182.651, subdivision 12,
may be assessed a fine of up to deleted text begin $7,000 deleted text end new text begin $12,675 new text end for each violation.

Sec. 5.

Minnesota Statutes 2016, section 182.666, subdivision 4, is amended to read:

Subd. 4.

Failure to correct a violation.

Any employer who fails to correct a violation
for which a citation has been issued under section 182.66 within the period permitted for
its correction, which period shall not begin to run until the date of the final order of the
commissioner in the case of any review proceedings under this chapter initiated by the
employer in good faith and not solely for delay or avoidance of penalties, may be assessed
a fine of not more than deleted text begin $7,000 deleted text end new text begin $12,675 new text end for each day during which the failure or violation
continues.

Sec. 6.

Minnesota Statutes 2016, section 182.666, subdivision 5, is amended to read:

Subd. 5.

Posting violations.

Any employer who violates any of the posting requirements,
as prescribed under this chapter, except those prescribed under section 182.661, subdivision
3a, shall be assessed a fine of up to deleted text begin $7,000 deleted text end new text begin $12,675 new text end for each violation.

Sec. 7.

Minnesota Statutes 2016, section 182.666, is amended by adding a subdivision to
read:

new text begin Subd. 6a. new text end

new text begin Increases for inflation. new text end

new text begin (a) No later than August 31 of each year, beginning
in 2018, the commissioner shall determine the percentage increase in the rate of inflation,
as measured by the implicit price deflator, national data for personal consumption
expenditures as determined by the United States Department of Commerce, Bureau of
Economic Analysis during the 12-month period immediately preceding that August or, if
that data is unavailable, during the most recent 12-month period for which data is available.
The fines in subdivisions 1, 2, 3, 4, and 5, except for the fine for a serious violation under
section 182.653, subdivision 2, that causes or contributes to the death of an employee, are
increased by the lesser of (1) 2.5 percent, rounded to the nearest dollar amount evenly
divisible by ten, or (2) the percentage calculated by the commissioner, rounded to the nearest
dollar amount evenly divisible by ten.
new text end

new text begin (b) The fines increased under paragraph (a) shall not be increased to an amount greater
than the corresponding federal penalties for the specified violations promulgated in United
States Code, title 29, section 666, subsections (a)-(d), (i), as amended through November
5, 1990, and adjusted according to United States Code, title 28, section 2461, note (Federal
Civil Penalties Inflation Adjustment), as amended through November 2, 2015.
new text end

new text begin (c) A fine must not be reduced under this subdivision. A fine increased under this
subdivision takes effect on the next January 1.
new text end

Sec. 8.

Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:

Subd. 3.

Prohibition.

Except as provided in subdivision 6, no persons required to be
licensed by subdivision 1 may act or hold themselves out as a residential building contractor,
residential remodeler, residential roofer, or manufactured home installer for compensation
without a license issued by the commissioner. new text begin Unlicensed residential building contractor,
residential remodeler, or residential roofer activity is a gross misdemeanor.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 177.24, subdivision 2, new text end new text begin is repealed.
new text end

ARTICLE 6

LAKE WINONA MANAGEMENT

Section 1. new text begin LAKE WINONA MANAGEMENT; USING OFFSET, ADAPTIVE
PLANNING.
new text end

new text begin (a) To facilitate implementation of the Lake Winona total maximum daily load, the
Alexandria Lake Area Sanitary District may fund or perform lake management activities
in Lake Winona and in Lake Agnes. Lake management activities may include but are not
limited to carp removal and alum treatment. If the district agrees to fund or perform lake
management activities in Lake Winona and in Lake Agnes, the commissioner of the Pollution
Control Agency shall do one of the following unless the district chooses another path to
compliance that conforms to state and federal law, such as facility construction:
new text end

new text begin (1) approve an offset of the phosphorous loading proportional to the reduction achievable
through lake management activities in Lake Winona and Lake Agnes creditable to the
Alexandria Lake Area Sanitary District's wastewater treatment facility and issue or amend
the district's NPDES permit MN004738 to include the offset. The approved offset may be
related to the lake eutrophication response variable chlorophyll-a, but shall ensure the district
can achieve compliance with phosphorus effluent limits through wastewater optimization
techniques without performing capital upgrades to the wastewater treatment facility. The
lake management activities contemplated under paragraph (a) need not be completed before
the commissioner approves the offset and related discharge limits or issues the permit, but
the permit may include a schedule of compliance outlining the required lake management
activities and requiring that lake management activities in Lake Winona and Lake Agnes
begin immediately upon permit issuance. The approved offset and related permit language
must be consistent with Clean Water Act requirements and Minnesota Statutes, section
115.03, subdivision 10; or
new text end

new text begin (2) amend the district's NPDES permit MN004738 in a manner consistent with state and
federal law to include an integrated and adaptive lake management plan and to extend the
final compliance deadline for the final phosphorus concentration effluent limit related to
the site specific standard for Lake Winona contained in the district's permit until such time
that carp removal in Lake Winona can be completed and the lake can be reassessed. The
permit may include a schedule of compliance outlining the required lake management
activities and requiring that lake management activities in Lake Winona and Lake Agnes
begin immediately upon permit issuance.
new text end

new text begin (b) If the district agrees to fund or perform the lake management activities identified in
paragraph (a), the district may cooperate with the city of Alexandria in those efforts. The
district's responsibility for lake management activities in Lake Winona and Lake Agnes
terminates upon completion of the lake management activities identified in the schedule of
compliance contemplated under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
Alexandria Lake Area Sanitary District and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 7

TELECOMMUNICATIONS

Section 1.

Minnesota Statutes 2016, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to 116J.398, the following terms have the
meanings given them.

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

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

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

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

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

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

(h) new text begin "Satellite broadband equipment" means a satellite dish or modem installed at a
broadband user's location in order to receive broadband service from a satellite broadband
provider.
new text end

new text begin (i) "Satellite broadband provider" means an entity that provides broadband service by
means of wireless signals transmitted between communication stations orbiting the earth
and satellite broadband equipment installed at a broadband user's location.
new text end

new text begin (j) "Satellite dish" means a parabolic aerial installed on a building exterior that receives
signals from and transmits signals to a satellite broadband provider's satellite communication
station orbiting the earth.
new text end

new text begin (k) new text end "Underserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service at speeds of at least 100 megabits per second
download and at least 20 megabits per second upload.

deleted text begin (i) deleted text end new text begin (l) new text end "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service, as defined in section 116J.39.

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 2016, section 116J.395, subdivision 2, is amended to read:

Subd. 2.

Eligible expenditures.

new text begin (a) new text end Grants may be awarded under this section to fund
the acquisition and installation of new text begin :
new text end

new text begin (1) new text end middle-mile and last-mile infrastructure that support broadband service scalable to
speeds of at least 100 megabits per second download and 100 megabits per second upload deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (2) satellite broadband equipment installed on the premises of a broadband user located
in an unserved area that can support broadband speeds of at least 25 megabits per second
download and three megabits per second upload.
new text end

new text begin (b) Grants may be awarded under this section to fund monthly satellite broadband service
charges for a period of 12 months for a subscriber whose satellite broadband equipment has
been partially funded by a grant under paragraph (a), clause (2).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 116J.395, subdivision 5, is amended to read:

Subd. 5.

Application contents.

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

(1) the location of the project;

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

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

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

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

(6) evidence of community support for the project;

(7) the total cost of the project;

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

(9) evidence that no later than six weeks before submission of the application the applicant
contacted, in writing, all entities providing broadband service in the proposed project area
to ask for each broadband service provider's plan to upgrade broadband service in the project
area to speeds that meet or exceed the state's broadband speed goals in section 237.012,
subdivision 1, within the time frame specified in the proposed grant activities;

(10) the broadband service providers' written responses to the inquiry made under clause
(9); and

(11) any additional information requested by the commissioner.

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 2016, section 116J.395, subdivision 7, is amended to read:

Subd. 7.

Limitation.

(a) No grant awarded under this section may fund more than new text begin :
new text end

new text begin (1) new text end 50 percent of the total cost of a project deleted text begin . deleted text end new text begin under subdivision 2, paragraph (a), clause
(1);
new text end

new text begin (2) 50 percent of the total cost of satellite broadband equipment installed at user locations,
up to $300; or
new text end

new text begin (3) $600 in monthly satellite broadband subscription charges.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: H4289-1

177.24 PAYMENT OF MINIMUM WAGES.

Subd. 2.

Gratuities not applied.

No employer may directly or indirectly credit, apply, or utilize gratuities towards payment of the minimum wage set by this section or federal law.

216B.2423 WIND POWER MANDATE.

Subdivision 1.

Mandate.

A public utility, as defined in section 216B.02, subdivision 4, that operates a nuclear-powered electric generating plant within this state must construct and operate, purchase, or contract to construct and operate: (1) 225 megawatts of electric energy installed capacity generated by wind energy conversion systems within the state by December 31, 1998; and (2) an additional 200 megawatts of installed capacity so generated by December 31, 2002.

For the purpose of this section, "wind energy conversion system" has the meaning given it in section 216C.06, subdivision 19.

Subd. 2.

Resource planning mandate.

The Public Utilities Commission shall order a public utility subject to subdivision 1, to construct and operate, purchase, or contract to purchase an additional 400 megawatts of electric energy installed capacity generated by wind energy conversion systems by December 31, 2002, subject to resource planning and least cost planning requirements in section 216B.2422.

Subd. 2a.

Site preference.

The Public Utilities Commission shall ensure that a utility subject to the requirements of subdivision 1, clause (2), shall implement that clause with a preference for wind energy conversion systems within the state. This preference shall not prevent the utility from constructing or contracting to construct wind energy conversion systems outside the state, if the Public Utilities Commission determines that selection of a facility within the state conflicts with the requirements of section 216B.03.

Subd. 3.

Standard contract for wind energy conversion systems.

The Public Utilities Commission shall require a public utility subject to subdivision 1 to develop and file in a form acceptable to the commission by October 1, 1997, a standard form contract for the purchase of electricity from wind conversion systems with installed capacity of two megawatts and less. For purposes of applying the two megawatts limit, the installed capacity sold to the public utility from a single seller or affiliated group of sellers shall be cumulated. The standard contract shall include all the terms and conditions for purchasing wind-generated power by the utility, except for price and any other specific terms necessary to ensure system reliability and safety, which shall be separately negotiable.

471.9996 RENT CONTROL PROHIBITED.

Subd. 2.

Exception.

Subdivision 1 does not preclude a statutory or home rule charter city, county, or town from controlling rents on private residential property to the extent that the city, county, or town has the power to adopt an ordinance, charter amendment, or law to control these rents if the ordinance, charter amendment, or law that controls rents is approved in a general election. Subdivision 1 does not limit any power or authority of the voters of a statutory or home rule charter city, county, or town to petition for an ordinance or charter amendment to control rents on private residential property to the extent that the power or authority is otherwise provided for by law, and if the ordinance or charter amendment is approved in a general election. This subdivision does not grant any additional power or authority to the citizens of a statutory or home rule charter city, county, or town to vote on any question beyond that contained in other law.