Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 729

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/15/2013 12:03pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 729
1.2A bill for an act
1.3relating to state government; appropriating money for jobs and economic
1.4development, commerce and consumer protection, and housing; making
1.5changes to labor and industry provisions; modifying and providing for
1.6certain fees; modifying employment, economic development, and workforce
1.7development provisions; making unemployment insurance changes; reducing
1.8the unemployment insurance tax; establishing notice for contracts for deed
1.9involving residential property; providing remedies; establishing the Office of
1.10Broadband Development in the Department of Commerce and assigning it duties;
1.11requiring the Department of Transportation to post a database on its Web site;
1.12appropriating money to various boards, departments, and the Housing Finance
1.13Agency; requiring reports;amending Minnesota Statutes 2012, sections 60A.14,
1.14subdivision 1; 116J.70, subdivision 2a; 116J.8731, subdivisions 2, 3, 8, 9;
1.15116L.17, subdivision 4, by adding a subdivision; 116U.26; 136F.37; 154.001, by
1.16adding a subdivision; 154.003; 154.02; 154.05; 154.06; 154.065, subdivision 2;
1.17154.07, subdivision 1; 154.08; 154.09; 154.10, subdivision 1; 154.11, subdivision
1.181; 154.12; 154.14; 154.15, subdivision 2; 154.26; 155A.23, subdivisions 3, 8, 11;
1.19155A.25, subdivisions 1a, 4; 155A.27, subdivisions 4, 10; 155A.29, subdivision
1.202; 155A.30, by adding a subdivision; 177.27, subdivision 4; 237.012, subdivision
1.213; 239.101, subdivision 3; 245.4712, subdivision 1; 268.051, subdivision 5;
1.22268.07, subdivision 3b; 268.125, subdivisions 1, 3, 4, 5; 268.136, subdivisions
1.231, 2, 3, 4, 5, by adding a subdivision; 268.199; 268.23; 268A.13; 268A.14,
1.24subdivision 1; 326.02, subdivision 5; 326A.04, subdivisions 2, 3, 5, 7; 326A.10;
1.25326B.081, subdivision 3; 326B.082, subdivision 11; 326B.093, subdivision 4;
1.26326B.101; 326B.103, subdivision 11; 326B.121, subdivision 1; 326B.163, by
1.27adding subdivisions; 326B.184, subdivisions 1, 2, by adding a subdivision;
1.28326B.187; 326B.31, by adding a subdivision; 326B.33, subdivisions 19, 21;
1.29326B.36, subdivision 7; 326B.37, by adding a subdivision; 326B.43, subdivision
1.302; 326B.49, subdivisions 2, 3; 326B.89, subdivision 1; 327B.04, subdivision
1.314; 341.21, subdivision 3a; 341.221; 341.27; 341.29; 341.30, subdivision 4;
1.32341.32, subdivision 2; 341.321; 507.235, subdivision 2; 559.211, subdivision
1.332; Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision
1.344; Laws 2012, chapter 201, article 1, section 3; proposing coding for new law
1.35in Minnesota Statutes, chapters 116J; 116L; 154; 155A; 161; 179; 237; 268;
1.36326B; 383D; 559; proposing coding for new law as Minnesota Statutes, chapter
1.3780G; repealing Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03;
1.38116W.035; 116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23;
1.39116W.24; 116W.25; 116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31;
1.40116W.32; 116W.33; 116W.34; 155A.25, subdivision 1; 326A.03, subdivisions
1.412, 5, 8; 326B.31, subdivisions 18, 19, 22; 326B.978, subdivision 4; 507.235,
1.42subdivision 4; Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700;
1.431307.0032; 3800.3520, subpart 5, items C, D; 3800.3602, subpart 2, item B.
2.1May 15, 2013
2.2The Honorable Paul Thissen
2.3Speaker of the House of Representatives
2.4The Honorable Sandra L. Pappas
2.5President of the Senate
2.6We, the undersigned conferees for H. F. No. 729 report that we have agreed upon the
2.7items in dispute and recommend as follows:
2.8That the Senate recede from its amendments and that H. F. No. 729 be further
2.9amended as follows:
2.10Delete everything after the enacting clause and insert:

2.11"ARTICLE 1
2.12APPROPRIATIONS

2.13
Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
2.14    The amounts shown in this section summarize direct appropriations, by fund, made
2.15in this article.
2.16
2014
2015
Total
2.17
General
$
197,787,000
$
170,068,000
$
367,855,000
2.18
Workforce Development
21,469,000
20,951,000
42,420,000
2.19
Remediation
700,000
700,000
1,400,000
2.20
Workers' Compensation
23,535,000
23,325,000
46,860,000
2.21
Special Revenue
940,000
1,240,000
2,180,000
2.22
Petroleum Tank Release
1,052,000
1,052,000
2,104,000
2.23
Total
$
245,483,000
$
217,336,000
$
462,819,000

2.24
Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
2.25    The sums shown in the columns marked "Appropriations" are appropriated to the
2.26agencies and for the purposes specified in this article. The appropriations are from the
2.27general fund, or another named fund, and are available for the fiscal years indicated
2.28for each purpose. The figures "2014" and "2015" used in this article mean that the
2.29appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.30June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.31year 2015. "The biennium" is fiscal years 2014 and 2015.
2.32
APPROPRIATIONS
2.33
Available for the Year
2.34
Ending June 30
2.35
2014
2015

2.36
2.37
Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
3.1
Subdivision 1.Total Appropriation
$
107,134,000
$
97,364,000
3.2
Appropriations by Fund
3.3
2014
2015
3.4
General
85,994,000
76,742,000
3.5
Remediation
700,000
700,000
3.6
3.7
Workforce
Development
20,440,000
19,922,000
3.8The amounts that may be spent for each
3.9purpose are specified in the following
3.10subdivisions.
3.11
3.12
Subd. 2.Business and Community
Development
53,642,000
45,407,000
3.13
Appropriations by Fund
3.14
General
52,942,000
44,707,000
3.15
Remediation
700,000
700,000
3.16(a)(1) $15,000,000 each year is for
3.17the Minnesota investment fund under
3.18Minnesota Statutes, section 116J.8731. This
3.19appropriation is available until spent.
3.20(2) Of the amount available under clause
3.21(1), up to $3,000,000 in fiscal year 2014
3.22is for a loan to facilitate initial investment
3.23in the purchase and operation of a
3.24biopharmaceutical manufacturing facility.
3.25This loan is not subject to the loan limitations
3.26under Minnesota Statutes, section 116J.8731,
3.27and shall be forgiven by the commissioner
3.28of employment and economic development
3.29upon verification of meeting performance
3.30goals. Purchases related to and for the
3.31purposes of this loan award must be made
3.32between January 1, 2013, and June 30, 2015.
3.33The amount under this clause is available
3.34until expended.
4.1(3) Of the amount available under clause (1),
4.2up to $2,000,000 is available for subsequent
4.3investment in the biopharmaceutical facility
4.4project in clause (2). The amount under this
4.5clause is available until expended. Loan
4.6thresholds under clause (2) must be achieved
4.7and maintained to receive funding. Loans
4.8are not subject to the loan limitations under
4.9Minnesota Statutes, section 116J.8731, and
4.10shall be forgiven by the commissioner of
4.11employment and economic development
4.12upon verification of meeting performance
4.13goals. Purchases related to and for the
4.14purposes of loan awards must be made during
4.15the biennium the loan was received.
4.16(4) Notwithstanding any law to the contrary,
4.17the biopharmaceutical manufacturing facility
4.18in this paragraph shall be deemed eligible
4.19for the Minnesota job creation fund under
4.20Minnesota Statutes, section 116J.8748,
4.21by having at least $25,000,000 in capital
4.22investment and 190 retained employees.
4.23(5) For purposes of clauses (1) to (4),
4.24"biopharmaceutical" and "biologics" are
4.25interchangeable and mean medical drugs
4.26or medicinal preparations produced using
4.27technology that uses biological systems,
4.28living organisms, or derivatives of living
4.29organisms, to make or modify products or
4.30processes for specific use. The medical drugs
4.31or medicinal preparations include but are not
4.32limited to proteins, antibodies, nucleic acids,
4.33and vaccines.
4.34(b) $12,000,000 each year is for the
4.35Minnesota job creation fund under Minnesota
5.1Statutes, section 116J.8748. Of this amount,
5.2the commissioner of employment and
5.3economic development may use up to three
5.4percent for administrative expenses. This
5.5appropriation is available until spent. The
5.6base funding for this program shall be
5.7$12,500,000 each year in the fiscal year
5.82016-2017 biennium.
5.9(c) $1,272,000 each year is from the
5.10general fund for contaminated site cleanup
5.11and development grants under Minnesota
5.12Statutes, sections 116J.551 to 116J.558. This
5.13appropriation is available until expended.
5.14(d) $700,000 each year is from the
5.15remediation fund for contaminated site
5.16cleanup and development grants under
5.17Minnesota Statutes, sections 116J.551 to
5.18116J.558. This appropriation is available
5.19until expended.
5.20(e) $1,425,000 the first year and $1,425,000
5.21the second year are from the general fund for
5.22the business development competitive grant
5.23program. Of this amount, up to five percent
5.24is for administration and monitoring of the
5.25business development competitive grant
5.26program. All grant awards shall be for two
5.27consecutive years. Grants shall be awarded
5.28in the first year.
5.29(f) $4,195,000 each year is from the general
5.30fund for the Minnesota job skills partnership
5.31program under Minnesota Statutes, sections
5.32116L.01 to 116L.17. If the appropriation for
5.33either year is insufficient, the appropriation
5.34for the other year is available. This
5.35appropriation is available until spent.
6.1(g) $6,000,000 the first year is from the
6.2general fund for the redevelopment program
6.3under Minnesota Statutes, section 116J.571.
6.4This is a onetime appropriation and is
6.5available until spent.
6.6(h) $12,000 each year is from the general
6.7fund for a grant to the Upper Minnesota Film
6.8Office.
6.9(i) $325,000 each year is from the general
6.10fund for the Minnesota Film and TV Board.
6.11The appropriation in each year is available
6.12only upon receipt by the board of $1 in
6.13matching contributions of money or in-kind
6.14contributions from nonstate sources for every
6.15$3 provided by this appropriation, except that
6.16each year up to $50,000 is available on July
6.171 even if the required matching contribution
6.18has not been received by that date.
6.19(j) $100,000 each year is for a grant to the
6.20Northern Lights International Music Festival.
6.21(k) $5,000,000 each year is from the general
6.22fund for a grant to the Minnesota Film
6.23and TV Board for the film production jobs
6.24program under Minnesota Statutes, section
6.25116U.26. This appropriation is available
6.26until expended. The base funding for this
6.27program shall be $1,500,000 each year in the
6.28fiscal year 2016-2017 biennium.
6.29(l) $375,000 each year is from the general
6.30fund for a grant to Enterprise Minnesota, Inc.,
6.31for the small business growth acceleration
6.32program under Minnesota Statutes, section
6.33116O.115. This is a onetime appropriation.
7.1(m) $160,000 each year is from the general
7.2fund for a grant to develop and implement
7.3a southern and southwestern Minnesota
7.4initiative foundation collaborative pilot
7.5project. Funds available under this paragraph
7.6must be used to support and develop
7.7entrepreneurs in diverse populations in
7.8southern and southwestern Minnesota. This
7.9is a onetime appropriation and is available
7.10until expended.
7.11(n) $100,000 each year is from the general
7.12fund for the Center for Rural Policy
7.13and Development. This is a onetime
7.14appropriation.
7.15(o) $250,000 each year is from the general
7.16fund for the Broadband Development Office.
7.17(p) $250,000 the first year is from the
7.18general fund for a onetime grant to the St.
7.19Paul Planning and Economic Development
7.20Department for neighborhood stabilization
7.21use in NSP3.
7.22(q) $1,235,000 the first year is from the
7.23general fund for a onetime grant to a city
7.24of the second class that is designated as an
7.25economically depressed area by the United
7.26States Department of Commerce. The
7.27appropriation is for economic development,
7.28redevelopment, and job creation programs
7.29and projects. This appropriation is available
7.30until expended.
7.31(r) $875,000 each year is from the general
7.32fund for the Host Community Economic
7.33Development Program established in
7.34Minnesota Statutes, section 116J.548.
8.1(s) $750,000 the first year is from the general
8.2fund for a onetime grant to the city of Morris
8.3for loans or grants to agricultural processing
8.4facilities for energy efficiency improvements.
8.5Funds available under this section shall be
8.6used to increase conservation and promote
8.7energy efficiency through retrofitting existing
8.8systems and installing new systems to
8.9recover waste heat from industrial processes
8.10and reuse energy. This appropriation is not
8.11available until the commissioner determines
8.12that at least $1,250,000 is committed to
8.13the project from nonpublic sources. This
8.14appropriation is available until expended.
8.15
Subd. 3.Workforce Development
16,386,000
14,881,000
8.16
Appropriations by Fund
8.17
General
2,776,000
1,789,000
8.18
8.19
Workforce
Development
13,610,000
13,092,000
8.20(a) $1,039,000 each year from the general
8.21fund and $2,244,000 each year from the
8.22workforce development fund are for the adult
8.23workforce development competitive grant
8.24program. Of this amount, up to five percent
8.25is for administration and monitoring of the
8.26adult workforce development competitive
8.27grant program. All grant awards shall be
8.28for two consecutive years. Grants shall be
8.29awarded in the first year.
8.30(b) $3,500,000 each year is from the
8.31workforce development fund for the
8.32Minnesota youth program under Minnesota
8.33Statutes, sections 116L.56 and 116L.561.
8.34(c) $1,000,000 each year is from the
8.35workforce development fund and $250,000
9.1each year is from the general fund for
9.2the youthbuild program under Minnesota
9.3Statutes, sections 116L.361 to 116L.366. Of
9.4this appropriation and notwithstanding any
9.5law to the contrary, $250,000 each year is for
9.6the Little Earth youthbuild program and is
9.7available until expended. The appropriation
9.8from the general fund and the appropriation to
9.9Little Earth youthbuild program are onetime.
9.10(d) $200,000 each year is from the workforce
9.11development fund for a grant to Minnesota
9.12Diversified Industries, Inc., to provide
9.13progressive development and employment
9.14opportunities for people with disabilities.
9.15(e) $2,848,000 each year is from the
9.16workforce development fund for the youth
9.17workforce development competitive grant
9.18program. Of this amount, up to five percent
9.19is for administration and monitoring of the
9.20youth workforce development competitive
9.21grant program. All grant awards shall be
9.22for two consecutive years. Grants shall be
9.23awarded in the first year.
9.24(f) $1,500,000 each year is from the
9.25workforce development fund for a grant
9.26to FastTRAC - Minnesota Adult Careers
9.27Pathways Program. Up to ten percent
9.28of this appropriation may be used to
9.29provide leadership, oversight, and technical
9.30assistance services for low-skilled,
9.31low-income adults.
9.32(g) $987,000 in fiscal year 2014 is a onetime
9.33appropriation from the general fund for
9.34the pilot customized training program for
10.1manufacturing industries under article 3. Of
10.2this amount:
10.3(1) $240,000 is for the commissioner for
10.4coordination, oversight, and reporting
10.5responsibilities related to the customized
10.6training program;
10.7(2) $187,000 is for a grant to Alexandria
10.8Technical College for the customized training
10.9center;
10.10(3) $380,000 is for a grant to Century College
10.11for the purposes of this paragraph;
10.12(4) $90,000 is for Hennepin Technical
10.13College for the purposes of this paragraph;
10.14and
10.15(5) $90,000 is for Central Lakes College for
10.16the purposes of this paragraph.
10.17(h) $425,000 the first year and $425,000
10.18the second year are from the workforce
10.19development fund for a grant to the
10.20Minnesota High Tech Association to support
10.21SciTechsperience, a program that supports
10.22science, technology, engineering, and math
10.23(STEM) internship opportunities for two-
10.24and four-year college and university students
10.25in their field of study. The internship
10.26opportunities must match students with
10.27paid internships within STEM disciplines
10.28at small, for-profit companies located in the
10.29seven-county metropolitan area, with fewer
10.30than 150 total employees, or at small or
10.31medium, for-profit companies located outside
10.32of the seven-county metropolitan area, with
10.33fewer than 250 total employees. At least 100
10.34students must be matched in the first year
11.1and at least 125 students must be matched in
11.2the second year. Selected hiring companies
11.3shall receive from the grant 50 percent of the
11.4wages paid to the intern, capped at $2,500
11.5per intern. The program must work toward
11.6increasing the participation among women
11.7or other underserved populations. This is a
11.8onetime appropriation and is available until
11.9expended.
11.10(i) $500,000 each year is from the workforce
11.11development fund for the Opportunities
11.12Industrialization Center programs. This
11.13appropriation shall be divided equally among
11.14the eligible centers.
11.15(j) $450,000 the first year is from the
11.16workforce development fund for the
11.17foreign-trained health care professionals
11.18grant program modeled after the pilot
11.19program conducted under Laws 2006,
11.20chapter 282, article 11, section 2, subdivision
11.2112, to encourage state licensure of
11.22foreign-trained health care professionals,
11.23including: physicians, with preference given
11.24to primary care physicians who commit
11.25to practicing for at least five years after
11.26licensure in underserved areas of the state;
11.27nurses; dentists; pharmacists; mental health
11.28professionals; and other allied health care
11.29professionals. The commissioner must
11.30collaborate with health-related licensing
11.31boards and Minnesota workforce centers to
11.32award grants to foreign-trained health care
11.33professionals sufficient to cover the actual
11.34costs of taking a course to prepare health
11.35care professionals for required licensing
11.36examinations and the fee for the state
12.1licensing examinations. When awarding
12.2grants, the commissioner must consider the
12.3following factors:
12.4(1) whether the recipient's training involves
12.5a medical specialty that is in high demand in
12.6one or more communities in the state;
12.7(2) whether the recipient commits to
12.8practicing in a designated rural area or an
12.9underserved urban community, as defined in
12.10Minnesota Statutes, section 144.1501;
12.11(3) whether the recipient's language skills
12.12provide an opportunity for needed health care
12.13access for underserved Minnesotans; and
12.14(4) any additional criteria established
12.15by the commissioner. This is a onetime
12.16appropriation and is available until expended.
12.17(k) $68,000 the first year from the workforce
12.18development fund is for a grant to Olmsted
12.19County for employment supports and
12.20independent living services to county
12.21residents diagnosed with high-functioning
12.22autism, Asperger's syndrome, nonverbal
12.23learning disorders, and pervasive
12.24development disorder, not otherwise
12.25specified, and for education, outreach,
12.26and support services to area employers
12.27to encourage the hiring and promotion
12.28of workers with high-functioning autism,
12.29Asperger's syndrome, nonverbal learning
12.30disorders, and pervasive development
12.31disorder, not otherwise specified. This is a
12.32onetime appropriation and is available until
12.33expended.
13.1(l) $750,000 each year is from the workforce
13.2development fund for a grant to the
13.3Minnesota Alliance of Boys and Girls
13.4Clubs to administer a statewide project
13.5of youth jobs skills development. This
13.6project, which may have career guidance
13.7components, including health and life skills,
13.8is to encourage, train, and assist youth in
13.9job-seeking skills, workplace orientation,
13.10and job-site knowledge through coaching.
13.11This grant requires a 25 percent match from
13.12nonstate resources.
13.13(m) $500,000 the first year and $500,000 the
13.14second year are appropriated from the general
13.15fund for the publication, dissemination,
13.16and use of labor market information under
13.17Minnesota Statutes, section 116J.4011, and
13.18for pilot programs in the workforce service
13.19areas specified in this act, to combine career
13.20and higher education advising.
13.21(n) $125,000 each year is from the workforce
13.22development fund for a grant to Big
13.23Brothers, Big Sisters of the Greater Twin
13.24Cities for workforce readiness, employment
13.25exploration, and skills development for
13.26youth ages 12 to 21. The grant must serve
13.27youth in the Twin Cities, Central Minnesota
13.28and Southern Minnesota Big Brothers, Big
13.29Sisters chapters.
13.30
Subd. 4.General Support Services
1,168,000
1,168,000
13.31$150,000 each year is from the general fund
13.32for the cost-of-living study required under
13.33Minnesota Statutes, section 116J.013.
13.34
Subd. 5.Minnesota Trade Office
2,322,000
2,292,000
14.1(a) $330,000 in fiscal year 2014 and $300,000
14.2in fiscal year 2015 are for the STEP grants
14.3in Minnesota Statutes, section 116J.979. Of
14.4the fiscal year 2014 appropriation, $30,000
14.5is for establishing trade, export, and cultural
14.6exchange relations between the state of
14.7Minnesota and east African nations.
14.8(b) $180,000 in fiscal year 2014 and
14.9$180,000 in fiscal year 2015 are for the Invest
14.10Minnesota marketing initiative in Minnesota
14.11Statutes, section 116J.9801. Notwithstanding
14.12any other law, this provision does not expire.
14.13(c) $270,000 each year is from the general
14.14fund for the expansion of Minnesota Trade
14.15Offices under Minnesota Statutes, section
14.16116J.978.
14.17(d) $50,000 each year is from the general
14.18fund for the trade policy advisory group
14.19under Minnesota Statutes, section 116J.9661.
14.20(e) The commissioner of employment and
14.21economic development, in consultation
14.22with the commissioner of agriculture, shall
14.23identify and increase export opportunities for
14.24Minnesota agricultural products.
14.25
Subd. 6.Vocational Rehabilitation
27,691,000
27,691,000
14.26
Appropriations by Fund
14.27
General
20,861,000
20,861,000
14.28
14.29
Workforce
Development
6,830,000
6,830,000
14.30(a) $10,800,000 each year is from the general
14.31fund for the state's vocational rehabilitation
14.32program under Minnesota Statutes, chapter
14.33268A.
15.1(b) $2,261,000 each year is from the general
15.2fund for grants to centers for independent
15.3living under Minnesota Statutes, section
15.4268A.11.
15.5(c) $5,745,000 each year from the general
15.6fund and $6,830,000 each year from the
15.7workforce development fund is for extended
15.8employment services for persons with
15.9severe disabilities under Minnesota Statutes,
15.10section 268A.15. The allocation of extended
15.11employment funds to Courage Center from
15.12July 1, 2012 to June 30, 2013 must be
15.13contracted to Allina Health systems from
15.14July 1, 2013 to June 30, 2014 to provide
15.15extended employment services in accordance
15.16with Minnesota Rules, parts 3300.2005 to
15.173300.2055.
15.18(d) $2,055,000 each year is from the general
15.19fund for grants to programs that provide
15.20employment support services to persons with
15.21mental illness under Minnesota Statutes,
15.22sections 268A.13 and 268A.14. The base
15.23appropriation for this program is $1,555,000
15.24each year in the fiscal year 2016-2017
15.25biennium.
15.26
Subd. 7.Services for the Blind
5,925,000
5,925,000

15.27
Sec. 4. HOUSING FINANCE AGENCY
15.28
Subdivision 1.Total Appropriation
$
58,748,000
$
42,748,000
15.29The amounts that may be spent for each
15.30purpose are specified in the following
15.31subdivisions.
15.32Unless otherwise specified, this appropriation
15.33is for transfer to the housing development
15.34fund for the programs specified in this
16.1section. Except as otherwise indicated, this
16.2transfer is part of the agency's permanent
16.3budget base.
16.4
Subd. 2.Challenge Program
19,203,000
9,203,000
16.5(a) This appropriation is for the economic
16.6development and housing challenge program
16.7under Minnesota Statutes, section 462A.33.
16.8The agency must continue to strengthen its
16.9efforts to address the disparity rate between
16.10white households and indigenous American
16.11Indians and communities of color. Of this
16.12amount, $1,208,000 each year shall be made
16.13available during the first 11 months of the
16.14fiscal year exclusively for housing projects
16.15for American Indians. Any funds not
16.16committed to housing projects for American
16.17Indians in the first 11 months of the fiscal year
16.18shall be available for any eligible activity
16.19under Minnesota Statues, section 462A.33.
16.20(b) Of this amount, $10,000,000 is a onetime
16.21appropriation and is targeted for housing in
16.22communities and regions that have:
16.23(1)(i) low housing vacancy rates; and
16.24(ii) cooperatively developed a plan that
16.25identifies current and future housing needs;
16.26and
16.27(2)(i) experienced job growth since 2005 and
16.28have at least 2,000 jobs within the commuter
16.29shed;
16.30(ii) evidence of anticipated job expansion; or
16.31(iii) a significant portion of area employees
16.32who commute more than 30 miles between
16.33their residence and their employment.
17.1(c) Priority shall be given to programs and
17.2projects that are land trust programs and
17.3programs that work in coordination with a
17.4land trust program.
17.5(d) The base funding for this program in the
17.62016-2017 biennium is $12,925,000 each
17.7year.
17.8
Subd. 3.Housing Trust Fund
13,276,000
10,276,000
17.9(a) This appropriation is for deposit in the
17.10housing trust fund account created under
17.11Minnesota Statutes, section 462A.201, and
17.12may be used for the purposes provided in
17.13that section. To the extent that these funds
17.14are used for the acquisition of housing, the
17.15agency shall give priority among comparable
17.16projects to projects that focus on creating
17.17safe and stable housing for homeless youth
17.18or projects that provide housing to trafficked
17.19women and children.
17.20(b) $2,000,000 in the first year is a onetime
17.21appropriation for temporary rental assistance
17.22for families with school-age children who
17.23have changed school or home at least
17.24once in the last school year. The agency,
17.25in consultation with the Department of
17.26Education, may establish additional targeting
17.27criteria.
17.28(c) Of this amount, $500,000 the first year
17.29is a onetime appropriation for temporary
17.30rental assistance for adults who are in
17.31the process of being released from state
17.32correctional facilities or on supervised
17.33release in the community who are homeless
17.34or at risk of becoming homeless. The
17.35agency, in consultation with the Department
18.1of Corrections, may establish additional
18.2targeting criteria to identify those adults
18.3most at risk of reentering state correctional
18.4facilities.
18.5(d) Of this amount, $500,000 the first year
18.6is a onetime appropriation for a grant to the
18.7nonprofit organization selected to administer
18.8the state demonstration project for high-risk
18.9adults established under Laws 2007, chapter
18.1054, article 1, section 19.
18.11(e) The base funding for this program in
18.12fiscal years 2016 and 2017 is $11,471,000
18.13each year.
18.14
Subd. 4.Rental Assistance for Mentally Ill
2,838,000
2,838,000
18.15This appropriation is for the rental housing
18.16assistance program under Minnesota
18.17Statutes, section 462A.2097.
18.18
Subd. 5.Family Homeless Prevention
7,862,000
7,862,000
18.19This appropriation is for the family homeless
18.20prevention and assistance programs under
18.21Minnesota Statutes, section 462A.204.
18.22The base funding for this program in the
18.232016-2017 biennium is $8,519,000 each year.
18.24
Subd. 6.Home Ownership Assistance Fund
830,000
830,000
18.25This appropriation is for the home ownership
18.26assistance program under Minnesota
18.27Statutes, section 462A.21, subdivision 8.
18.28The agency shall continue to strengthen
18.29its efforts to address the disparity gap in
18.30the homeownership rate between white
18.31households and indigenous American Indians
18.32and communities of color.
19.1The base funding for this program in fiscal
19.2years 2016 and 2017 is $885,000 each year.
19.3
Subd. 7.Affordable Rental Investment Fund
4,218,000
4,218,000
19.4(a) This appropriation is for the affordable
19.5rental investment fund program under
19.6Minnesota Statutes, section 462A.21,
19.7subdivision 8b, to finance the acquisition,
19.8rehabilitation, and debt restructuring of
19.9federally assisted rental property and
19.10for making equity take-out loans under
19.11Minnesota Statutes, section 462A.05,
19.12subdivision 39.
19.13(b) The owner of federally assisted rental
19.14property must agree to participate in
19.15the applicable federally assisted housing
19.16program and to extend any existing
19.17low-income affordability restrictions on the
19.18housing for the maximum term permitted.
19.19The owner must also enter into an agreement
19.20that gives local units of government,
19.21housing and redevelopment authorities,
19.22and nonprofit housing organizations the
19.23right of first refusal if the rental property
19.24is offered for sale. Priority must be given
19.25among comparable federally assisted rental
19.26properties to properties with the longest
19.27remaining term under an agreement for
19.28federal assistance. Priority must also be
19.29given among comparable rental housing
19.30developments to developments that are or
19.31will be owned by local government units, a
19.32housing and redevelopment authority, or a
19.33nonprofit housing organization.
19.34(c) The appropriation also may be used to
19.35finance the acquisition, rehabilitation, and
20.1debt restructuring of existing supportive
20.2housing properties. For purposes of this
20.3subdivision, "supportive housing" means
20.4affordable rental housing with links to
20.5services necessary for individuals, youth, and
20.6families with children to maintain housing
20.7stability.
20.8
Subd. 8.Housing Rehabilitation
2,772,000
2,772,000
20.9This appropriation is for housing assistance
20.10for the rehabilitation of single-family homes
20.11under the housing rehabilitation program
20.12under Minnesota Statutes, section 462A.05,
20.13subdivision 14.
20.14
20.15
Subd. 9.Homeownership Education,
Counseling, and Training
791,000
791,000
20.16This appropriation is for the homeownership
20.17education, counseling, and training program
20.18under Minnesota Statutes, section 462A.209.
20.19Priority may be given to funding programs
20.20that are aimed at culturally specific groups
20.21who are providing services to members of
20.22their communities.
20.23The base funding for this program in fiscal
20.24years 2016 and 2017 is $857,000 each year.
20.25
Subd. 10.Capacity Building Grants
375,000
375,000
20.26This appropriation is for nonprofit capacity
20.27building grants under Minnesota Statutes,
20.28section 462A.21, subdivision 3b.
20.29
Subd. 11.Grants
445,000
445,000
20.30(a) This appropriation is for the grants in
20.31paragraphs (b) to (d) and is available until
20.32expended. This appropriation is added to the
20.33agency's base.
21.1(b) $70,000 each year is for a grant to Open
21.2Access Connection to provide free voice mail
21.3services for homeless and low-income people
21.4so that they have a reliable and consistent
21.5communication tool to aid in their search
21.6for affordable housing and their search for
21.7and maintenance of jobs so that they have
21.8income to maintain affordable housing. This
21.9service is provided in the metropolitan area
21.10and through a toll-free number in greater
21.11Minnesota.
21.12(c) $200,000 each year is for a grant to
21.13HOME Line for the tenant's rights advocacy
21.14and services program.
21.15(d) $175,000 each year is for a grant to the
21.16Voice of East African Women Organization
21.17to provide safe housing for victims of
21.18domestic abuse and trafficking. The program
21.19shall provide shelter to East African women
21.20and children in Minnesota and other victims
21.21of domestic violence. This appropriation is
21.22available in either year.
21.23
Subd. 12.Rental Rehabilitation
3,138,000
3,138,000
21.24This appropriation is for the rental housing
21.25rehabilitation loan program under Minnesota
21.26Statutes, section 462A.05, subdivision 14.
21.27The base funding for this program in fiscal
21.28years 2016 and 2017 is $3,743,000 each year.
21.29
Subd. 13.Transfers and Appropriations
21.30(a) The remaining balance of appropriations
21.31in Laws 2012, First Special Session chapter
21.321, article 1, section 7, for the economic
21.33development and housing challenge program
21.34that is unobligated to loans to homeowners
22.1or rental property owners as of June 30,
22.22013, estimated to be $3,000,000 is canceled
22.3to the general fund. By August 1, 2013,
22.4the commissioner of the Housing Finance
22.5Agency shall provide the commissioner of
22.6management and budget with the information
22.7necessary to determine the amount that is
22.8uncommitted and available for transfer.
22.9(b) The amount canceled to the general fund
22.10under paragraph (a) is appropriated to the
22.11Housing Finance Agency from the general
22.12fund for transfer to the housing development
22.13fund for the rehabilitation loan program
22.14under Minnesota Statutes, section 462A.05,
22.15subdivision 14. Until August 1, 2014,
22.16priority in the use of these funds shall be
22.17given to assistance for eligible homeowners
22.18residing in the area included in DR-4069
22.19whose homes were damaged as a result of
22.20the storms and flooding that occurred June
22.2114 to June 21, 2012.

22.22
Sec. 5. EXPLORE MINNESOTA TOURISM
$
13,988,000
$
13,988,000
22.23To develop maximum private sector
22.24involvement in tourism, $500,000 in fiscal
22.25year 2014 and $500,000 in fiscal year 2015
22.26must be matched by Explore Minnesota
22.27Tourism from nonstate sources. Each $1 of
22.28state incentive must be matched with $6 of
22.29private sector funding. Cash match is defined
22.30as revenue to the state or documented cash
22.31expenditures directly expended to support
22.32Explore Minnesota Tourism programs. Up
22.33to one-half of the private sector contribution
22.34may be in-kind or soft match. The incentive
22.35in fiscal year 2014 shall be based on fiscal
23.1year 2013 private sector contributions. The
23.2incentive in fiscal year 2015 shall be based on
23.3fiscal year 2014 private sector contributions.
23.4This incentive is ongoing.
23.5Funding for the marketing grants is available
23.6either year of the biennium. Unexpended
23.7grant funds from the first year are available
23.8in the second year.

23.9
23.10
Sec. 6. DEPARTMENT OF LABOR AND
INDUSTRY
23.11
Subdivision 1.Total Appropriation
$
22,966,000
$
22,966,000
23.12
Appropriations by Fund
23.13
2014
2015
23.14
General
1,066,000
1,066,000
23.15
23.16
Workers'
Compensation
20,871,000
20,871,000
23.17
23.18
Workforce
Development
1,029,000
1,029,000
23.19The amounts that may be spent for each
23.20purpose are specified in the following
23.21subdivisions.
23.22
Subd. 2.Workers' Compensation
10,678,000
10,678,000
23.23This appropriation is from the workers'
23.24compensation fund.
23.25$200,000 each year is for grants to the
23.26Vinland Center for rehabilitation services.
23.27Grants shall be distributed as the department
23.28refers injured workers to the Vinland Center
23.29for rehabilitation services.
23.30
Subd. 3.Labor Standards and Apprenticeship
2,095,000
2,095,000
23.31
Appropriations by Fund
23.32
General
1,066,000
1,066,000
23.33
23.34
Workforce
Development
1,029,000
1,029,000
24.1(a) $816,000 each year is from the
24.2general fund for the labor standards and
24.3apprenticeship program.
24.4(b) $150,000 each year is from the general
24.5fund for a child labor initiative for expanding
24.6education and outreach to high schools and
24.7targeted industries to ensure minors entering
24.8the workforce are safe.
24.9(c) $879,000 each year is appropriated from
24.10the workforce development fund for the
24.11apprenticeship program under Minnesota
24.12Statutes, chapter 178, and includes
24.13$100,000 each year for labor education and
24.14advancement program grants and to expand
24.15and promote registered apprenticeship
24.16training in nonconstruction trade programs.
24.17(d) $150,000 each year is appropriated
24.18from the workforce development fund for
24.19prevailing wage enforcement.
24.20(e) $70,000 each year is from the general
24.21fund for implementing and administering a
24.22minimum wage inflation adjustment. This
24.23appropriation is available only if a law is
24.24enacted in 2013 that includes an automatic
24.25inflation adjustment to the state minimum
24.26wage. The availability of this appropriation
24.27is effective in the same fiscal year that the
24.28inflation adjustment is first effective.
24.29(f) $100,000 each year is from the general
24.30fund for wage enforcement.
24.31
Subd. 4.Workplace Safety
4,154,000
4,154,000
24.32This appropriation is from the workers'
24.33compensation fund.
24.34
Subd. 5.General Support
6,039,000
6,039,000
25.1This appropriation is from the workers'
25.2compensation fund.

25.3
25.4
Sec. 7. BUREAU OF MEDIATION
SERVICES
$
2,129,000
$
2,033,000
25.5(a) $68,000 each year is for grants to area
25.6labor management committees. Grants may
25.7be awarded for a 12-month period beginning
25.8July 1 each year. Any unencumbered balance
25.9remaining at the end of the first year does not
25.10cancel but is available for the second year.
25.11(b) $100,000 in fiscal year 2014 is
25.12appropriated from the general fund to the
25.13Bureau of Mediation Services for transfer
25.14to the Office of Enterprise Technology to
25.15develop a new business management system
25.16for case and document management. This is
25.17a onetime appropriation and is available for
25.18spending until June 30, 2015. Any ongoing
25.19information technology support or costs for
25.20this application will be incorporated into the
25.21service level agreement and will be paid to
25.22the Office of Enterprise Technology by the
25.23Bureau of Mediation Services under the rates
25.24and mechanism specified in that agreement.
25.25Of this amount, $25,000 each year is added
25.26to the Bureau of Mediation Services base
25.27budget to cover the information technology
25.28support costs for this application.
25.29(c) $256,000 each year is from the general
25.30fund for the Office of Collaboration and
25.31Dispute Resolution under Minnesota
25.32Statutes, section 179.90. Of this amount,
25.33$160,000 each year is for grants under
25.34Minnesota Statutes, section 179.91, and
25.35$96,000 each year is for intergovernmental
26.1and public policy collaboration and operation
26.2of the office.
26.3(d) The bureau's general fund base
26.4is $2,058,000 in fiscal year 2016 and
26.5$2,058,000 in fiscal year 2017.

26.6
Sec. 8. BOARD OF ACCOUNTANCY
$
705,000
$
618,000

26.7
26.8
26.9
26.10
Sec. 9. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
774,000
$
774,000

26.11
26.12
Sec. 10. BOARD OF COSMETOLOGIST
EXAMINERS
$
1,346,000
$
1,346,000

26.13
Sec. 11. BOARD OF BARBER EXAMINERS
$
317,000
$
317,000

26.14
26.15
Sec. 12. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,913,000
$
1,703,000
26.16This appropriation is from the workers'
26.17compensation fund.
26.18Of this appropriation, $210,000 is a
26.19onetime appropriation and is available for
26.20spending until June 30, 2015. $100,000 in
26.21fiscal year 2014 is appropriated from the
26.22workers' compensation fund to the Workers'
26.23Compensation Court of Appeals for transfer
26.24to the Office of Enterprise Technology to
26.25develop a paperless case management system
26.26and to ensure that services and hardware
26.27are accessible and compatible with systems
26.28with which the Workers' Compensation
26.29Court of Appeals must interact. This is a
26.30onetime appropriation and is available for
26.31spending until June 30, 2015. Any ongoing
26.32information technology support or costs for
26.33this application will be incorporated into the
27.1service level agreement and will be paid to
27.2the Office of Enterprise Technology by the
27.3Workers' Compensation Court of Appeals
27.4under the rates and mechanism specified in
27.5that agreement.

27.6
Sec. 13. DEPARTMENT OF COMMERCE
27.7
Subdivision 1.Total Appropriation
$
29,006,000
$
27,038,000
27.8
Appropriations by Fund
27.9
2014
2015
27.10
General
26,263,000
23,995,000
27.11
Special Revenue
940,000
1,240,000
27.12
Petroleum Tank
1,052,000
1,052,000
27.13
27.14
Workers'
Compensation
751,000
751,000
27.15The amounts that may be spent for each
27.16purpose are specified in the following
27.17subdivisions.
27.18
Subd. 2.Financial Institutions
4,885,000
4,885,000
27.19$142,000 each year is for the regulation of
27.20mortgage originators and servicers under
27.21Minnesota Statutes, chapters 58 and 58A.
27.22
27.23
Subd. 3.Petroleum Tank Release
Compensation Board
1,052,000
1,052,000
27.24This appropriation is from the petroleum
27.25tank fund.
27.26
Subd. 4.Administrative Services
6,615,000
6,615,000
27.27$375,000 each year is for additional
27.28compliance efforts with unclaimed property.
27.29The commissioner may issue contracts for
27.30these services.
27.31$25,000 each year is for newspaper
27.32advertising directed at persons who own or
27.33may own unclaimed property. By June 30
27.34of each year, the commissioner shall submit
28.1a report to the house and senate committees
28.2with jurisdiction over the department of the
28.3results of the newspaper advertisements
28.4in returning property to the owners. This
28.5appropriation for newspaper advertising and
28.6the requirement of a report is for fiscal years
28.72014 and 2015 only.
28.8$100,000 each year is for the support of
28.9broadband development.
28.10Fees for the Weights and Measures Unit are
28.11increased by 30 percent during fiscal year
28.122014. All fees are deposited to the general
28.13fund as nondedicated revenue.
28.14
Subd. 5.Telecommunications
1,949,000
2,249,000
28.15
Appropriations by Fund
28.16
General
1,009,000
1,009,000
28.17
Special Revenue
940,000
1,240,000
28.18$940,000 in fiscal year 2014 and $1,240,000
28.19in fiscal year 2015 are appropriated to the
28.20commissioner from the telecommunication
28.21access fund for the following transfers. This
28.22appropriation is added to the department's
28.23base.
28.24(1) $500,000 in fiscal year 2014 and $800,000
28.25in fiscal year 2015 to the commissioner of
28.26human services to supplement the ongoing
28.27operational expenses of the Commission
28.28of Deaf, DeafBlind, and Hard-of-Hearing
28.29Minnesotans;
28.30(2) $290,000 in fiscal year 2014 and $290,000
28.31in fiscal year 2015 to the chief information
28.32officer for the purpose of coordinating
28.33technology accessibility and usability; and
29.1(3) $150,000 in fiscal year 2014 and
29.2$150,000 in fiscal year 2015 to the
29.3Legislative Coordinating Commission for
29.4captioning of legislative coverage.
29.5
Subd. 6.Enforcement
4,824,000
4,820,000
29.6
Appropriations by Fund
29.7
General
4,626,000
4,622,000
29.8
29.9
Workers'
Compensation
198,000
198,000
29.10Of the general fund amount, $646,000 in
29.11fiscal year 2014 and $642,000 in fiscal
29.12year 2015 is to establish the regulation of
29.13gold bullion dealers. This appropriation is
29.14only available if a law is enacted in 2013
29.15to establish the regulation of gold bullion
29.16dealers.
29.17
Subd. 7.Energy Resources
5,766,000
3,502,000
29.18$2,000,000 the first year is for the
29.19weatherization assistance program. This is a
29.20onetime appropriation and is available until
29.21June 30, 2015.
29.22$150,000 each year is for grants to
29.23providers of low-income weatherization
29.24services to install renewable energy
29.25equipment in households that are eligible for
29.26weatherization assistance under Minnesota's
29.27weatherization assistance program state
29.28plan as provided for in Minnesota Statutes,
29.29section 239.101.
29.30The general fund base budget for energy
29.31resources is $3,424,000 in fiscal year 2016
29.32and $3,415,000 in fiscal year 2017.
29.33
Subd. 8.Insurance
3,915,000
3,915,000
30.1
Appropriations by Fund
30.2
General
3,362,000
3,362,000
30.3
30.4
Workers'
Compensation
553,000
553,000

30.5
Sec. 14. PUBLIC UTILITIES COMMISSION
$
6,457,000
$
6,441,000
30.6The general fund base for the Public Utilities
30.7Commission is $6,241,000 in fiscal year
30.82016 and $6,205,000 in fiscal year 2017.

30.9    Sec. 15. TRANSFERS.
30.10(a) The deposits in each year of the biennium into the contingent account created
30.11under Minnesota Statutes, section 268.199, estimated to be $7,500,000 each year, shall be
30.12transferred before the closing of each fiscal year to the general fund.
30.13(b) By June 30, 2014, the commissioner of management and budget shall transfer
30.14$10,000,000 in assets of the workers' compensation assigned risk plan created under
30.15Minnesota Statutes, section 79.252, to the general fund.

30.16ARTICLE 2
30.17LABOR AND INDUSTRY

30.18    Section 1. Minnesota Statutes 2012, section 116J.70, subdivision 2a, is amended to read:
30.19    Subd. 2a. License; exceptions. "Business license" or "license" does not include
30.20the following:
30.21(1) any occupational license or registration issued by a licensing board listed in
30.22section 214.01 or any occupational registration issued by the commissioner of health
30.23pursuant to section 214.13;
30.24(2) any license issued by a county, home rule charter city, statutory city, township, or
30.25other political subdivision;
30.26(3) any license required to practice the following occupation regulated by the
30.27following sections:
30.28(i) abstracters regulated pursuant to chapter 386;
30.29(ii) accountants regulated pursuant to chapter 326A;
30.30(iii) adjusters regulated pursuant to chapter 72B;
30.31(iv) architects regulated pursuant to chapter 326;
30.32(v) assessors regulated pursuant to chapter 270;
30.33(vi) athletic trainers regulated pursuant to chapter 148;
31.1(vii) attorneys regulated pursuant to chapter 481;
31.2(viii) auctioneers regulated pursuant to chapter 330;
31.3(ix) barbers and cosmetologists regulated pursuant to chapter 154;
31.4(x) boiler operators regulated pursuant to chapter 183 326B;
31.5(xi) chiropractors regulated pursuant to chapter 148;
31.6(xii) collection agencies regulated pursuant to chapter 332;
31.7(xiii) dentists, registered dental assistants, and dental hygienists regulated pursuant
31.8to chapter 150A;
31.9(xiv) detectives regulated pursuant to chapter 326;
31.10(xv) electricians regulated pursuant to chapter 326 326B;
31.11(xvi) mortuary science practitioners regulated pursuant to chapter 149A;
31.12(xvii) engineers regulated pursuant to chapter 326;
31.13(xviii) insurance brokers and salespersons regulated pursuant to chapter 60A;
31.14(xix) certified interior designers regulated pursuant to chapter 326;
31.15(xx) midwives regulated pursuant to chapter 147D;
31.16(xxi) nursing home administrators regulated pursuant to chapter 144A;
31.17(xxii) optometrists regulated pursuant to chapter 148;
31.18(xxiii) osteopathic physicians regulated pursuant to chapter 147;
31.19(xxiv) pharmacists regulated pursuant to chapter 151;
31.20(xxv) physical therapists regulated pursuant to chapter 148;
31.21(xxvi) physician assistants regulated pursuant to chapter 147A;
31.22(xxvii) physicians and surgeons regulated pursuant to chapter 147;
31.23(xxviii) plumbers regulated pursuant to chapter 326 326B;
31.24(xxix) podiatrists regulated pursuant to chapter 153;
31.25(xxx) practical nurses regulated pursuant to chapter 148;
31.26(xxxi) professional fund-raisers regulated pursuant to chapter 309;
31.27(xxxii) psychologists regulated pursuant to chapter 148;
31.28(xxxiii) real estate brokers, salespersons, and others regulated pursuant to chapters
31.2982 and 83;
31.30(xxxiv) registered nurses regulated pursuant to chapter 148;
31.31(xxxv) securities brokers, dealers, agents, and investment advisers regulated
31.32pursuant to chapter 80A;
31.33(xxxvi) steamfitters regulated pursuant to chapter 326 326B;
31.34(xxxvii) teachers and supervisory and support personnel regulated pursuant to
31.35chapter 125;
31.36(xxxviii) veterinarians regulated pursuant to chapter 156;
32.1(xxxix) water conditioning contractors and installers regulated pursuant to chapter
32.2326 326B;
32.3(xl) water well contractors regulated pursuant to chapter 103I;
32.4(xli) water and waste treatment operators regulated pursuant to chapter 115;
32.5(xlii) motor carriers regulated pursuant to chapter 221;
32.6(xliii) professional firms regulated under chapter 319B;
32.7(xliv) real estate appraisers regulated pursuant to chapter 82B;
32.8(xlv) residential building contractors, residential remodelers, residential roofers,
32.9manufactured home installers, and specialty contractors regulated pursuant to chapter
32.10326 326B;
32.11(xlvi) licensed professional counselors regulated pursuant to chapter 148B;
32.12(4) any driver's license required pursuant to chapter 171;
32.13(5) any aircraft license required pursuant to chapter 360;
32.14(6) any watercraft license required pursuant to chapter 86B;
32.15(7) any license, permit, registration, certification, or other approval pertaining to a
32.16regulatory or management program related to the protection, conservation, or use of or
32.17interference with the resources of land, air, or water, which is required to be obtained
32.18from a state agency or instrumentality; and
32.19(8) any pollution control rule or standard established by the Pollution Control
32.20Agency or any health rule or standard established by the commissioner of health or any
32.21licensing rule or standard established by the commissioner of human services.

32.22    Sec. 2. Minnesota Statutes 2012, section 177.27, subdivision 4, is amended to read:
32.23    Subd. 4. Compliance orders. The commissioner may issue an order requiring
32.24an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031,
32.25181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, 181.275, subdivision
32.262a
, 181.722, and 181.79, or with any rule promulgated under section 177.28. The
32.27commissioner shall issue an order requiring an employer to comply with sections 177.41
32.28to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation
32.29is repeated if at any time during the two years that preceded the date of violation, the
32.30commissioner issued an order to the employer for violation of sections 177.41 to 177.435
32.31and the order is final or the commissioner and the employer have entered into a settlement
32.32agreement that required the employer to pay back wages that were required by sections
32.33177.41 to 177.435. The department shall serve the order upon the employer or the
32.34employer's authorized representative in person or by certified mail at the employer's place
32.35of business. An employer who wishes to contest the order must file written notice of
33.1objection to the order with the commissioner within 15 calendar days after being served
33.2with the order. A contested case proceeding must then be held in accordance with sections
33.314.57 to 14.69. If, within 15 calendar days after being served with the order, the employer
33.4fails to file a written notice of objection with the commissioner, the order becomes a
33.5final order of the commissioner.

33.6    Sec. 3. Minnesota Statutes 2012, section 326.02, subdivision 5, is amended to read:
33.7    Subd. 5. Limitation. The provisions of sections 326.02 to 326.15 shall not apply
33.8to the preparation of plans and specifications for the erection, enlargement, or alteration
33.9of any building or other structure by any person, for that person's exclusive occupancy
33.10or use, unless such occupancy or use involves the public health or safety or the health
33.11or safety of the employees of said person, or of the buildings listed in section 326.03,
33.12subdivision 2
, nor to any detailed or shop plans required to be furnished by a contractor
33.13to a registered engineer, landscape architect, architect, or certified interior designer,
33.14nor to any standardized manufactured product, nor to any construction superintendent
33.15supervising the execution of work designed by an architect, landscape architect, engineer,
33.16or certified interior designer licensed or certified in accordance with section 326.03, nor
33.17to the planning for and supervision of the construction and installation of work by an
33.18electrical or elevator contractor or master plumber as defined in and licensed pursuant to
33.19chapter 326B, where such work is within the scope of such licensed activity and not
33.20within the practice of professional engineering, or architecture, or where the person does
33.21not claim to be a certified interior designer as defined in subdivision 2, 3, or 4b.

33.22    Sec. 4. Minnesota Statutes 2012, section 326B.081, subdivision 3, is amended to read:
33.23    Subd. 3. Applicable law. "Applicable law" means the provisions of sections
33.24181.723 , 325E.66, 327.31 to 327.36, and this chapter, and chapter 341, and all rules,
33.25orders, stipulation agreements, settlements, compliance agreements, licenses, registrations,
33.26certificates, and permits adopted, issued, or enforced by the department under sections
33.27181.723, 325E.66, 327.31 to 327.36, or this chapter, or chapter 341.

33.28    Sec. 5. Minnesota Statutes 2012, section 326B.082, subdivision 11, is amended to read:
33.29    Subd. 11. Licensing orders; grounds; reapplication. (a) The commissioner may
33.30deny an application for a permit, license, registration, or certificate if the applicant does
33.31not meet or fails to maintain the minimum qualifications for holding the permit, license,
33.32registration, or certificate, or has any unresolved violations or unpaid fees or monetary
34.1penalties related to the activity for which the permit, license, registration, or certificate has
34.2been applied for or was issued.
34.3    (b) The commissioner may deny, suspend, limit, place conditions on, or revoke a
34.4person's permit, license, registration, or certificate, or censure the person holding the
34.5permit, license, registration, or certificate, if the commissioner finds that the person:
34.6    (1) committed one or more violations of the applicable law;
34.7    (2) submitted false or misleading information to the state in connection with
34.8activities for which the permit, license, registration, or certificate was issued, or in
34.9connection with the application for the permit, license, registration, or certificate;
34.10    (3) allowed the alteration or use of the person's own permit, license, registration,
34.11or certificate by another person;
34.12    (4) within the previous five years, was convicted of a crime in connection with
34.13activities for which the permit, license, registration, or certificate was issued;
34.14    (5) violated: (i) a final administrative order issued under subdivision 7 or, (ii) a final
34.15stop order issued under subdivision 10, or (iii) injunctive relief issued under subdivision 9,
34.16or (iv) a consent order or final order of the commissioner;
34.17    (6) failed to cooperate with a commissioner's request to give testimony, to produce
34.18documents, things, apparatus, devices, equipment, or materials, or to access property
34.19under subdivision 2;
34.20    (7) retaliated in any manner against any employee or person who is questioned by,
34.21cooperates with, or provides information to the commissioner or an employee or agent
34.22authorized by the commissioner who seeks access to property or things under subdivision 2;
34.23    (8) engaged in any fraudulent, deceptive, or dishonest act or practice; or
34.24    (9) performed work in connection with the permit, license, registration, or
34.25certificate or conducted the person's affairs in a manner that demonstrates incompetence,
34.26untrustworthiness, or financial irresponsibility.
34.27    (c) If the commissioner revokes or denies a person's permit, license, registration,
34.28or certificate under paragraph (b), the person is prohibited from reapplying for the same
34.29type of permit, license, registration, or certificate for at least two years after the effective
34.30date of the revocation or denial. The commissioner may, as a condition of reapplication,
34.31require the person to obtain a bond or comply with additional reasonable conditions the
34.32commissioner considers necessary to protect the public.
34.33    (d) If a permit, license, registration, or certificate expires, or is surrendered,
34.34withdrawn, or terminated, or otherwise becomes ineffective, the commissioner may
34.35institute a proceeding under this subdivision within two years after the permit, license,
35.1registration, or certificate was last effective and enter a revocation or suspension order as
35.2of the last date on which the permit, license, registration, or certificate was in effect.

35.3    Sec. 6. Minnesota Statutes 2012, section 326B.093, subdivision 4, is amended to read:
35.4    Subd. 4. Examination results. If the applicant receives a passing score on the
35.5examination and meets all other requirements for licensure, the commissioner must
35.6approve the application and notify the applicant of the approval within 60 days of the
35.7date of the passing score. The applicant must, within 90 180 days after the notification
35.8of approval, pay the license fee. Upon receipt of the license fee, the commissioner must
35.9issue the license. If the applicant does not pay the license fee within 90 180 days after
35.10the notification of approval, the commissioner will rescind the approval and must deny
35.11the application. If the applicant does not receive a passing score on the examination,
35.12the commissioner must deny the application. If the application is denied because of the
35.13applicant's failure to receive a passing score on the examination, then the applicant cannot
35.14submit a new application for the license until at least 30 days after the notification of denial.

35.15    Sec. 7. Minnesota Statutes 2012, section 326B.101, is amended to read:
35.16326B.101 POLICY AND PURPOSE.
35.17The State Building Code governs the construction, reconstruction, alteration, and
35.18 repair, and use of buildings and other structures to which the code is applicable. The
35.19commissioner shall administer and amend a state code of building construction which will
35.20provide basic and uniform performance standards, establish reasonable safeguards for
35.21health, safety, welfare, comfort, and security of the residents of this state and provide for
35.22the use of modern methods, devices, materials, and techniques which will in part tend to
35.23lower construction costs. The construction of buildings should be permitted at the least
35.24possible cost consistent with recognized standards of health and safety.

35.25    Sec. 8. Minnesota Statutes 2012, section 326B.103, subdivision 11, is amended to read:
35.26    Subd. 11. Public building. "Public building" means a building and its grounds the
35.27cost of which is paid for by the state or a state agency regardless of its cost, and a school
35.28district building project or charter school building project the cost of which is $100,000
35.29or more.

35.30    Sec. 9. Minnesota Statutes 2012, section 326B.121, subdivision 1, is amended to read:
36.1    Subdivision 1. Application. (a) The State Building Code is the standard that applies
36.2statewide for the construction, reconstruction, alteration, and repair, and use of buildings
36.3and other structures of the type governed by the code.
36.4(b) The State Building Code supersedes the building code of any municipality.
36.5(c) The State Building Code does not apply to agricultural buildings except:
36.6(1) with respect to state inspections required or rulemaking authorized by sections
36.7103F.141 ; 216C.19, subdivision 9; and 326B.36; and
36.8(2) translucent panels or other skylights without raised curbs shall be supported to
36.9have equivalent load-bearing capacity as the surrounding roof.

36.10    Sec. 10. Minnesota Statutes 2012, section 326B.163, is amended by adding a
36.11subdivision to read:
36.12    Subd. 9. Direct supervision. "Direct supervision" means:
36.13(1) an unlicensed individual is being directly supervised by an individual licensed
36.14to perform the elevator work being supervised during the entire time the unlicensed
36.15individual is performing elevator work;
36.16(2) the licensed individual is physically present at the location where the unlicensed
36.17individual is performing elevator work and immediately available to the unlicensed
36.18individual at all times for assistance and direction;
36.19(3) the licensed individual shall review the elevator work performed by the
36.20unlicensed individual before the elevator work is operated; and
36.21(4) the licensed individual is able to and does determine that all elevator work
36.22performed by the unlicensed individual is performed in compliance with the elevator code.

36.23    Sec. 11. Minnesota Statutes 2012, section 326B.163, is amended by adding a
36.24subdivision to read:
36.25    Subd. 10. Elevator contractor. "Elevator contractor" means a licensed contractor
36.26whose responsible licensed individual is a master elevator constructor. An elevator
36.27contractor license does not itself qualify its holder to perform or supervise elevator work
36.28authorized by holding a personal license issued by the commissioner.

36.29    Sec. 12. Minnesota Statutes 2012, section 326B.163, is amended by adding a
36.30subdivision to read:
36.31    Subd. 11. Limited elevator contractor. "Limited elevator contractor" means a
36.32licensed contractor whose responsible licensed individual is a limited master elevator
36.33constructor. A limited elevator contractor or its employees may only install, test, or alter
37.1residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited
37.2use or limited application elevator equipment, conveyors, and special purpose personnel
37.3elevators.

37.4    Sec. 13. Minnesota Statutes 2012, section 326B.163, is amended by adding a
37.5subdivision to read:
37.6    Subd. 11a. Limited elevator work. "Limited elevator work" means the installing,
37.7maintaining, altering, repairing, testing, planning, or laying out of residential elevators,
37.8platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited
37.9application elevator equipment, conveyors, and special purpose personnel elevators
37.10as covered by Minnesota Rules, chapters 1307 and 1315. Limited elevator work also
37.11includes electrical wiring on the load side of the elevator equipment disconnect and the
37.12decommissioning of elevator equipment to enable safe removal.

37.13    Sec. 14. Minnesota Statutes 2012, section 326B.163, is amended by adding a
37.14subdivision to read:
37.15    Subd. 12. Elevator work. "Elevator work" means the installing, maintaining,
37.16altering, repairing, testing, planning, or laying out of elevator apparatus or equipment as
37.17covered by Minnesota Rules, chapters 1307 and 1315. Elevator work also includes the
37.18disconnection of electrical wiring on the load side of the elevator equipment disconnect
37.19and the decommissioning of elevator equipment to enable safe removal.

37.20    Sec. 15. Minnesota Statutes 2012, section 326B.163, is amended by adding a
37.21subdivision to read:
37.22    Subd. 13. Master elevator constructor. "Master elevator constructor" means
37.23an individual having the necessary qualifications, training, experience, and technical
37.24knowledge to properly plan, lay out, supervise, and perform the installation, maintenance,
37.25altering, testing, wiring, and repair of apparatus and equipment for elevators, including
37.26electrical wiring on the load side of the elevator equipment disconnect and who is licensed
37.27as a master elevator constructor by the commissioner.

37.28    Sec. 16. Minnesota Statutes 2012, section 326B.163, is amended by adding a
37.29subdivision to read:
37.30    Subd. 14. Limited master elevator constructor. "Limited master elevator
37.31constructor" means an individual having the necessary qualifications, training, experience,
37.32and technical knowledge to properly plan, lay out, supervise, and perform the testing,
38.1altering, installation, maintenance, and repair of wiring, apparatus, and equipment for
38.2residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited
38.3use or limited application elevator equipment, conveyors, and special purpose personnel
38.4elevators, including wiring on the load side of the elevator equipment disconnect and who
38.5is licensed as a limited master elevator constructor by the commissioner.

38.6    Sec. 17. Minnesota Statutes 2012, section 326B.163, is amended by adding a
38.7subdivision to read:
38.8    Subd. 14a. Limited journeyman elevator constructor. "Limited journeyman
38.9elevator constructor" means an individual having the necessary qualifications, training,
38.10experience, and technical knowledge to install, maintain, alter, test, and repair apparatus
38.11and equipment for residential elevators, platform lifts, stairway chairlifts, dumbwaiters,
38.12material lifts, limited use or limited application elevator equipment, conveyors, and
38.13special purpose personnel elevators, including electrical wiring on the load side of the
38.14elevator equipment disconnect and who is licensed as a limited journeyman elevator
38.15constructor by the commissioner.

38.16    Sec. 18. Minnesota Statutes 2012, section 326B.163, is amended by adding a
38.17subdivision to read:
38.18    Subd. 15. Journeyman elevator constructor. "Journeyman elevator constructor"
38.19means an individual having the necessary qualifications, training, experience, and
38.20technical knowledge to install, maintain, alter, test, and repair apparatus and equipment for
38.21elevators, including electrical wiring on the load side of the elevator equipment disconnect
38.22and who is licensed as a journeyman elevator constructor by the commissioner.

38.23    Sec. 19. Minnesota Statutes 2012, section 326B.163, is amended by adding a
38.24subdivision to read:
38.25    Subd. 16. Registered unlicensed elevator constructor. "Registered unlicensed
38.26elevator constructor" means an individual who has registered with the department but is
38.27not licensed by the commissioner to perform elevator work.

38.28    Sec. 20. Minnesota Statutes 2012, section 326B.163, is amended by adding a
38.29subdivision to read:
38.30    Subd. 17. Residential dwelling. "Residential dwelling" is a single dwelling unit
38.31that is contained in a one-family, two-family, or multifamily dwelling. A residential
38.32dwelling also includes outdoor space at a one-family dwelling.

39.1    Sec. 21. Minnesota Statutes 2012, section 326B.163, is amended by adding a
39.2subdivision to read:
39.3    Subd. 18. Responsible licensed individual. "Responsible licensed individual"
39.4means an individual licensed as a master elevator constructor or limited master elevator
39.5constructor who is identified as the responsible licensed individual on an elevator
39.6contractor license application.

39.7    Sec. 22. [326B.164] LICENSES.
39.8    Subdivision 1. Master elevator constructor. (a) Except as otherwise provided by
39.9law, no individual shall perform or supervise elevator work, unless:
39.10(1) the individual is licensed by the commissioner as a master elevator constructor;
39.11and
39.12(2) the elevator work is for a licensed elevator contractor and the individual is an
39.13employee, partner, or officer of, or is the licensed contractor.
39.14(b) An applicant for a master elevator constructor license shall:
39.15(1) have at least one year of experience, acceptable to the commissioner, as a
39.16licensed journeyman elevator constructor; or
39.17(2) have at least six years' experience, acceptable to the commissioner, in planning
39.18for, laying out, supervising, and installing apparatus, equipment, and wiring for elevators.
39.19(c) Individuals licensed as master elevator constructors under section 326B.33,
39.20subdivision 11, as of December 31, 2013, shall not be required to pass an examination
39.21under this section but, effective January 1, 2014, shall be subject to the requirements of
39.22sections 326B.163 to 326B.191.
39.23(d) Except for the initial license term, as a condition of license renewal, master
39.24elevator constructors must attain a minimum of 16 hours of continuing education credit
39.25approved by the commissioner every renewal period. Not less than 12 hours shall be based
39.26on the Minnesota Elevator Code or elevator technology, and not less than four hours shall
39.27be based on the National Electrical Code.
39.28    Subd. 2. Limited master elevator constructor. (a) Except as otherwise provided
39.29by law, no individual shall perform or supervise elevator work on residential elevators,
39.30platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited
39.31application elevator equipment, conveyors, and special purpose personnel elevators, unless:
39.32(1) the individual is licensed by the commissioner as a limited master elevator
39.33constructor; and
39.34(2) the elevator work is for a limited elevator contractor and the individual is an
39.35employee, partner, or officer of, or is the licensed contractor.
40.1(b) An applicant for a limited master elevator constructor license shall have at
40.2least three years of experience, acceptable to the commissioner, in installing apparatus,
40.3equipment, and wiring for elevators.
40.4(c) Except for the initial license term, as a condition of license renewal, limited
40.5master elevator constructors must attain a minimum of eight hours of continuing education
40.6credit approved by the commissioner every renewal period. Not less than six hours shall
40.7be based on the Minnesota Elevator Code or elevator technology, and not less than two
40.8hours on the National Electrical Code.
40.9    Subd. 3. Journeyman elevator constructor. (a) Except as otherwise provided
40.10by law, no individual shall perform and supervise elevator work except for planning or
40.11laying out of elevator work, unless:
40.12(1) the individual is licensed by the commissioner as a journeyman elevator
40.13constructor; and
40.14(2) the elevator work is for an elevator contractor, and the individual is an employee,
40.15partner, or officer of the licensed elevator contractor.
40.16(b) An applicant for a journeyman elevator constructor license shall have completed
40.17a four-year elevator mechanics apprenticeship registered with the United States
40.18Department of Labor or worked at least 9,000 hours in five consecutive years for a
40.19licensed elevator contractor, acceptable to the commissioner, installing, maintaining,
40.20modernizing, testing, wiring, and repairing elevators.
40.21(c) Individuals licensed as journeyman elevator constructors under section 326B.33,
40.22subdivision 8, as of December 31, 2013, shall not be required to pass an examination
40.23under this section but, effective January 1, 2014, shall be subject to the requirements of
40.24sections 326B.163 to 326B.191.
40.25(d) As a condition of license renewal, journeyman elevator constructors must attain
40.26a minimum of 16 hours of continuing education credit approved by the commissioner
40.27every renewal period. Not less than 12 hours shall be based on the Minnesota Elevator
40.28Code or elevator technology, and not less than four hours shall be based on the National
40.29Electrical Code.
40.30    Subd. 3a. Limited journeyman elevator constructor. (a) Except as otherwise
40.31provided by law, no individual shall perform or supervise elevator work on residential
40.32elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use
40.33or limited application elevator equipment, conveyors, and special purpose personnel
40.34elevators, except for planning or laying out of elevator work, unless:
40.35(1) the individual is licensed by the commissioner as a limited journeyman elevator
40.36constructor; and
41.1(2) the elevator work is for a limited elevator contractor or an elevator contractor,
41.2and the individual is an employee, partner, or officer of the licensed limited elevator
41.3contractor or licensed elevator contractor.
41.4(b) An applicant for a limited journeyman elevator constructor license shall have
41.5at least two years of experience, acceptable to the commissioner, in installing apparatus,
41.6equipment, and wiring for elevators.
41.7(c) Except for the initial license term, as a condition of license renewal, limited
41.8journeyman elevator constructors must attain a minimum of eight hours of continuing
41.9education credit approved by the commissioner every renewal period. Not less than six
41.10hours shall be based on the Minnesota Elevator Code or elevator technology, and not less
41.11than two hours on the National Electrical Code.
41.12    Subd. 4. Registered unlicensed elevator constructor. (a) An unlicensed individual
41.13shall not perform elevator work, unless the individual has first registered with the
41.14department as an unlicensed elevator constructor. Except as allowed by subdivision 12, a
41.15registered unlicensed elevator constructor shall not perform elevator work unless the work
41.16is performed under the direct supervision of an individual actually licensed to perform
41.17such work. The licensed elevator constructor and the registered unlicensed elevator
41.18constructor must be employed by the same employer. Unlicensed individuals shall not
41.19supervise the performance of elevator work or make assignments of elevator work to
41.20unlicensed individuals. Licensed elevator constructors shall provide direct supervision for
41.21no more than two registered unlicensed elevator constructors.
41.22(b) Notwithstanding any other provision of this section, no individual other than a
41.23master elevator constructor or limited master elevator constructor shall plan or lay out
41.24elevator wiring, apparatus, or equipment.
41.25(c) Contractors employing registered unlicensed elevator constructors performing
41.26elevator work shall maintain records establishing compliance with this subdivision that
41.27shall identify all unlicensed individuals performing elevator work and shall permit the
41.28department to examine and copy all such records.
41.29(d) When a licensed elevator constructor supervises the elevator work of an
41.30unlicensed individual, the licensed elevator constructor is responsible for ensuring that the
41.31elevator work complies with this section and the Minnesota Elevator Code.
41.32(e) A registered unlicensed elevator constructor with a minimum of one year
41.33experience may perform the following maintenance tasks for elevator equipment without
41.34being provided with direct supervision: oiling, cleaning, greasing, painting, relamping,
41.35and replacing of escalator and moving walk comb teeth.
42.1    Subd. 5. Registration of unlicensed individuals. (a) Unlicensed individuals
42.2performing elevator work for a contractor shall register with the department in the manner
42.3prescribed by the commissioner. Experience credit for elevator work performed in
42.4Minnesota after January 1, 2009, by an applicant for a license identified in this section
42.5shall not be granted where the applicant has not registered with the department or is
42.6not licensed by the department.
42.7(b) As a condition of renewal of registration, unlicensed individuals shall attain a
42.8minimum of two hours of continuing education credit, approved by the commissioner,
42.9every renewal period. The continuing education course shall be based on the Minnesota
42.10Elevator Code or elevator technology.
42.11(c) Individuals registered under section 326B.33, subdivision 13, whose registration
42.12expires after July 31, 2013, shall be subject to the registration requirements of this
42.13subdivision and the requirements of sections 326B.163 to 326B.191.
42.14    Subd. 6. Contractor's license required. (a) No individual, other than an employee,
42.15partner, or officer of a licensed contractor, as defined by section 326B.163, subdivision
42.1610, shall perform or offer to perform elevator work with or without compensation, unless
42.17the individual obtains a contractor's license. A contractor's license does not of itself
42.18qualify its holder to perform or supervise the elevator work authorized by holding any
42.19class of personal license.
42.20(b) Companies licensed under section 326B.33, subdivision 14, as of July 31, 2013,
42.21shall not be required to comply with this subdivision.
42.22    Subd. 7. Bond required. As a condition of licensing, each contractor shall give
42.23and maintain bond to the state in the sum of $25,000, conditioned upon the faithful and
42.24lawful performance of all work contracted for or performed by the contractor within the
42.25state of Minnesota, and such bond shall be for the benefit of persons injured or suffering
42.26financial loss by reason of failure of such performance. The bond shall be filed with
42.27the commissioner and shall be in lieu of all other license bonds to any other political
42.28subdivision. The bond shall be written by a corporate surety licensed to do business
42.29in the state of Minnesota.
42.30    Subd. 8. Insurance required. Each elevator contractor shall have and maintain
42.31in effect general liability insurance, which includes premises and operations insurance
42.32and products and completed operations insurance, with limits of at least $100,000 per
42.33occurrence, $300,000 aggregate limit for bodily injury, and property damage insurance
42.34with limits of at least $50,000, or a policy with a single limit for bodily injury and property
42.35damage of $300,000 per occurrence and $300,000 aggregate limits. The insurance shall be
42.36written by an insurer licensed to do business in the state of Minnesota, and each contractor
43.1shall maintain on file with the commissioner a certificate evidencing such insurance. In the
43.2event of a policy cancellation, the insurer shall send written notice to the commissioner at
43.3the same time that a cancellation request is received from or a notice is sent to the insured.
43.4    Subd. 9. Employment of responsible individual. (a) Each elevator contractor
43.5must designate a responsible master elevator constructor or limited master elevator
43.6constructor who shall be the responsible individual for the performance of all elevator
43.7work in accordance with the requirements of sections 326B.163 to 326B.191, all rules
43.8adopted under these sections, and all orders issued under section 326B.082. The classes of
43.9work that a licensed contractor is authorized to perform shall be limited to the classes of
43.10work that the responsible individual is allowed to perform.
43.11(b) When a contractor's license is held by an individual, sole proprietorship,
43.12partnership, limited liability company, or corporation, and the individual, proprietor, one
43.13of the partners, one of the members, or an officer of the corporation, respectively, is not the
43.14responsible master elevator constructor or limited master elevator constructor, all elevator
43.15permits shall be submitted by the responsible master elevator constructor or limited
43.16master elevator constructor. If the contractor is an individual or a sole proprietorship,
43.17the responsible master or limited master elevator constructor must be the individual,
43.18proprietor, or managing employee. If the contractor is a partnership, the responsible
43.19master or limited master elevator constructor must be a general partner or managing
43.20employee. If the licensed contractor is a limited liability company, the responsible master
43.21or limited master elevator constructor must be a chief manager or managing employee.
43.22If the contractor is a corporation, the responsible master or limited master elevator
43.23constructor must be an officer or managing employee. If the responsible master or limited
43.24master elevator constructor is a managing employee, the responsible individual must be
43.25actively engaged in performing elevator work on behalf of the contractor and cannot be
43.26employed in any capacity performing elevator work for any other elevator contractor or
43.27employer. An individual may be the responsible individual for only one contractor.
43.28(c) All applications and renewals for contractor licenses shall include a verified
43.29statement that the applicant and responsible individual are in compliance with this
43.30subdivision.
43.31    Subd. 10. Examination. In addition to the other requirements described in this
43.32section and sections 326B.091 to 326B.098, as a precondition to issuance of a personal
43.33license, each applicant must pass a written or oral examination developed and administered
43.34by the commissioner to ensure the competence of each applicant for license. An oral
43.35examination shall be administered only to an applicant who furnishes a written statement
43.36from a certified teacher or other professional, trained in the area of reading disabilities,
44.1stating that the applicant has a specific reading disability that would prevent the applicant
44.2from performing satisfactorily on a written test. The oral examination shall be structured
44.3so that an applicant who passes the examination will not impair the applicant's own safety
44.4or that of others while acting as a licensed individual.
44.5    Subd. 11. License, registration, and renewal fees; expiration. (a) Unless revoked
44.6or suspended under this chapter, all licenses issued or renewed under this section expire on
44.7the following schedule:
44.8(1) master licenses expire March 1 of each odd-numbered year after issuance or
44.9renewal;
44.10(2) elevator contractor licenses expire March 1 of each even-numbered year after
44.11issuance or renewal;
44.12(3) journeyman elevator constructor licenses expire two years from the date of
44.13original issuance and every two years thereafter; and
44.14(4) registrations of unlicensed individuals expire one year from the date of original
44.15issuance and every year thereafter.
44.16(b) For purposes of calculating license fees and renewal license fees required under
44.17section 326B.092:
44.18(1) the registration of an unlicensed individual under subdivision 5 shall be
44.19considered an entry-level license;
44.20(2) the journeyman elevator constructor and the limited journeyman elevator
44.21constructor shall be considered a journeyman license;
44.22(3) the master elevator constructor and limited master elevator constructor licenses
44.23shall be considered master licenses; and
44.24(4) an elevator contractor license shall be considered a business license.
44.25    Subd. 12. Exemption from licensing. Employees of a licensed elevator contractor
44.26or licensed limited elevator contractor are not required to hold or obtain a license
44.27under this section or be provided with direct supervision by a licensed master elevator
44.28constructor, licensed limited master elevator constructor, licensed elevator constructor,
44.29or licensed limited elevator constructor to install, maintain, or repair platform lifts and
44.30stairway chairlifts. Unlicensed employees performing elevator work under this exemption
44.31must comply with subdivision 5. This exemption does not include the installation,
44.32maintenance, repair, or replacement of electrical wiring for elevator equipment.
44.33    Subd. 13. Reciprocity. (a) The commissioner may enter into reciprocity agreements
44.34for personal licenses with another state and issue a personal license without requiring the
44.35applicant to pass an examination provided the applicant:
44.36(1) submits an application under this section;
45.1(2) pays the application and examination fee and license fee required under section
45.2326B.092; and
45.3(3) holds a valid comparable license in the state participating in the agreement.
45.4(b) Reciprocity agreements are subject to the following:
45.5(1) the parties to the agreement must administer a statewide licensing program that
45.6includes examination and qualifying experience or training comparable to Minnesota's;
45.7(2) the experience and training requirements under which an individual applicant
45.8qualified for examination in the qualifying state must be deemed equal to or greater than
45.9required for an applicant making application in Minnesota at the time the applicant
45.10acquired the license in the qualifying state;
45.11(3) the applicant must have acquired the license in the qualifying state through an
45.12examination deemed equivalent to the same class of license examination in Minnesota.
45.13A lesser class of license may be granted where the applicant has acquired a greater
45.14class of license in the qualifying state, and the applicant otherwise meets the conditions
45.15of this subdivision;
45.16(4) at the time of application, the applicant must hold a valid license in the qualifying
45.17state and have held the license continuously for at least one year before making application
45.18in Minnesota;
45.19(5) an applicant is not eligible for a license under this subdivision if the applicant has
45.20failed the same or greater class of license examination in Minnesota, or if the applicant's
45.21license of the same or greater class has been revoked or suspended; and
45.22(6) an applicant who has failed to renew a personal license for two years or more
45.23after its expiration is not eligible for a license under this subdivision.

45.24    Sec. 23. Minnesota Statutes 2012, section 326B.184, subdivision 1, is amended to read:
45.25    Subdivision 1. Permits. No person may construct, install, alter, repair, or remove
45.26an elevator without first filing an application for a permit with the department or a
45.27municipality authorized by subdivision 4 to inspect elevators. A permit issued by the
45.28department is valid for work commenced within 12 months of application and completed
45.29within two years of application. Where no work is commenced within 12 months of
45.30application, an applicant may cancel the permit and request a refund of inspection fees.

45.31    Sec. 24. Minnesota Statutes 2012, section 326B.184, is amended by adding a
45.32subdivision to read:
45.33    Subd. 1a. Department permit and inspection fees. (a) The department permit and
45.34inspection fees to construct, install, alter, repair, or remove an elevator are as follows:
46.1(1) the permit fee is $100;
46.2(2) the inspection fee is 0.015 of the total cost of the permitted work for labor and
46.3materials, including related electrical and mechanical equipment. The inspection fee
46.4covers two inspections. The inspection fee for additional inspections is $80 per hour;
46.5(3) when inspections scheduled by the permit submitter are not able to be completed
46.6because the work is not complete, a fee equal to two hours at the hourly rate of $80 must
46.7be paid by the permit submitter; and
46.8(4) when the owner or permit holder requests inspections be performed outside of
46.9normal work hours or on weekends or holidays, an hourly rate of $120 in addition to
46.10the inspection fee must be paid.
46.11(b) The department fees for inspection of existing elevators when requested by the
46.12elevator owner or as a result of an accident resulting in personal injury are at an hourly rate
46.13of $80 during normal work hours or $120 outside of normal work hours or on weekends or
46.14holidays, with a one-hour minimum.
46.15EFFECTIVE DATE.This section is effective January 1, 2014.

46.16    Sec. 25. Minnesota Statutes 2012, section 326B.184, subdivision 2, is amended to read:
46.17    Subd. 2. Operating permits and fees; periodic inspections. (a) No person may
46.18operate an elevator without first obtaining an annual operating permit from the department
46.19or a municipality authorized by subdivision 4 to issue annual operating permits. A $100
46.20annual operating permit fee must be paid to the department for each annual operating
46.21permit issued by the department, except that the original annual operating permit must
46.22be included in the permit fee for the initial installation of the elevator. Annual operating
46.23permits must be issued at 12-month intervals from the date of the initial annual operating
46.24permit. For each subsequent year, an owner must be granted an annual operating permit
46.25for the elevator upon the owner's or owner's agent's submission of a form prescribed by
46.26the commissioner and payment of the $100 fee. Each form must include the location of
46.27the elevator, the results of any periodic test required by the code, and any other criteria
46.28established by rule. An annual operating permit may be revoked by the commissioner upon
46.29an audit of the periodic testing results submitted with the application or a failure to comply
46.30with elevator code requirements, inspections, or any other law related to elevators. Except
46.31for an initial operating permit fee, hand-powered manlifts and electric endless belt manlifts,
46.32 and vertical reciprocating conveyors are not subject to a subsequent operating permit fee.
46.33(b) All elevators are subject to periodic inspections by the department or a
46.34municipality authorized by subdivision 4 to perform periodic inspections, except that
46.35hand-powered manlifts and electric endless belt manlifts are exempt from periodic
47.1inspections. Periodic inspections by the department shall be performed at the following
47.2intervals:
47.3(1) a special purpose personnel elevator is subject to inspection not more than once
47.4every five years;
47.5(2) an elevator located within a house of worship that does not have attached school
47.6facilities is subject to inspection not more than once every three years; and
47.7(3) all other elevators are subject to inspection not more than once each year.

47.8    Sec. 26. Minnesota Statutes 2012, section 326B.187, is amended to read:
47.9326B.187 RULES.
47.10    The commissioner may adopt rules for the following purposes:
47.11    (1) to establish minimum qualifications for elevator inspectors that must include
47.12possession of a current elevator constructor electrician's license issued by the department
47.13and proof of successful completion of the national elevator industry education program
47.14examination or equivalent experience;
47.15    (2) to establish minimum qualifications for limited elevator inspectors;
47.16    (3) to establish criteria for the qualifications of elevator contractors;
47.17    (4) to establish elevator standards under sections 326B.106, subdivisions 1 and 3,
47.18and 326B.13;
47.19    (5) to establish procedures for appeals of decisions of the commissioner under
47.20chapter 14 and procedures allowing the commissioner, before issuing a decision, to seek
47.21advice from the elevator trade, building owners or managers, and others knowledgeable in
47.22the installation, construction, and repair of elevators; and
47.23    (6) to establish requirements for the registration of all elevators.

47.24    Sec. 27. Minnesota Statutes 2012, section 326B.31, is amended by adding a
47.25subdivision to read:
47.26    Subd. 26a. Request for inspection. "Request for inspection" means the application
47.27for and issuance of a permit for an electrical installation that is required to be inspected
47.28under section 326B.36.

47.29    Sec. 28. Minnesota Statutes 2012, section 326B.33, subdivision 19, is amended to read:
47.30    Subd. 19. License, registration, and renewal fees; expiration. (a) Unless
47.31revoked or suspended under this chapter, all licenses issued or renewed under this section
47.32expire on the date specified in this subdivision. Master licenses expire March 1 of each
47.33odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
48.11 of each even-numbered year after issuance or renewal. Technology system contractor
48.2and satellite system contractor licenses expire August 1 of each even-numbered year after
48.3issuance or renewal. All other personal licenses expire two years from the date of original
48.4issuance and every two years thereafter. Registrations of unlicensed individuals expire
48.5one year from the date of original issuance and every year thereafter.
48.6(b) For purposes of calculating license fees and renewal license fees required under
48.7section 326B.092:
48.8(1) the registration of an unlicensed individual under subdivision 12 shall be
48.9considered an entry level license;
48.10(2) the following licenses shall be considered journeyman licenses: Class A
48.11journeyman electrician, Class B journeyman electrician, Class A installer, Class B
48.12installer, elevator constructor, lineman, maintenance electrician, satellite system installer,
48.13and power limited technician;
48.14(3) the following licenses shall be considered master licenses: Class A master
48.15electrician, and Class B master electrician, and master elevator constructor; and
48.16(4) the following licenses shall be considered business licenses: Class A electrical
48.17contractor, Class B electrical contractor, elevator contractor, satellite system contractor,
48.18and technology systems contractor.
48.19(c) For each filing of a certificate of responsible person by an employer, the fee is
48.20$100.

48.21    Sec. 29. Minnesota Statutes 2012, section 326B.33, subdivision 21, is amended to read:
48.22    Subd. 21. Exemptions from licensing. (a) An individual who is a maintenance
48.23electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:
48.24    (1) the individual is engaged in the maintenance and repair of electrical equipment,
48.25apparatus, and facilities that are owned or leased by the individual's employer and that are
48.26located within the limits of property operated, maintained, and either owned or leased by
48.27the individual's employer;
48.28    (2) the individual is supervised by:
48.29    (i) the responsible master electrician for a contractor who has contracted with the
48.30individual's employer to provide services for which a contractor's license is required; or
48.31    (ii) a licensed master electrician, a licensed maintenance electrician, an electrical
48.32engineer, or, if the maintenance and repair work is limited to technology circuits or
48.33systems work, a licensed power limited technician; and
48.34    (3) the individual's employer has on file with the commissioner a current certificate
48.35of responsible person, signed by the responsible master electrician of the contractor, the
49.1licensed master electrician, the licensed maintenance electrician, the electrical engineer, or
49.2the licensed power limited technician, and stating that the person signing the certificate
49.3is responsible for ensuring that the maintenance and repair work performed by the
49.4employer's employees complies with the Minnesota Electrical Act and the rules adopted
49.5under that act. The employer must pay a filing fee to file a certificate of responsible person
49.6with the commissioner. The certificate shall expire two years from the date of filing. In
49.7order to maintain a current certificate of responsible person, the employer must resubmit a
49.8certificate of responsible person, with a filing fee, no later than two years from the date
49.9of the previous submittal.
49.10    (b) Employees of a licensed electrical or technology systems contractor or other
49.11employer where provided with supervision by a master electrician in accordance with
49.12subdivision 1, or power limited technician in accordance with subdivision 7, paragraph
49.13(a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399
49.14for the planning, laying out, installing, altering, and repairing of technology circuits or
49.15systems except planning, laying out, or installing:
49.16    (1) in other than residential dwellings, class 2 or class 3 remote control circuits that
49.17control circuits or systems other than class 2 or class 3, except circuits that interconnect
49.18these systems through communication, alarm, and security systems are exempted from
49.19this paragraph;
49.20    (2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing
49.21physically unprotected circuits other than class 2 or class 3; or
49.22    (3) technology circuits or systems in hazardous classified locations as covered by
49.23chapter 5 of the National Electrical Code.
49.24    (c) Companies and their employees that plan, lay out, install, alter, or repair class
49.252 and class 3 remote control wiring associated with plug or cord and plug connected
49.26appliances other than security or fire alarm systems installed in a residential dwelling are
49.27not required to hold a license under sections 326B.31 to 326B.399.
49.28    (d) Heating, ventilating, air conditioning, and refrigeration contractors and their
49.29employees are not required to hold or obtain a license under sections 326B.31 to 326B.399
49.30when performing heating, ventilating, air conditioning, or refrigeration work as described
49.31in section 326B.38.
49.32    (e) Employees of any electrical, communications, or railway utility, cable
49.33communications company as defined in section 238.02, or a telephone company as defined
49.34under section 237.01 or its employees, or of any independent contractor performing work
49.35on behalf of any such utility, cable communications company, or telephone company, shall
49.36not be required to hold a license under sections 326B.31 to 326B.399:
50.1    (1) while performing work on installations, materials, or equipment which are owned
50.2or leased, and operated and maintained by such utility, cable communications company, or
50.3telephone company in the exercise of its utility, antenna, or telephone function, and which
50.4    (i) are used exclusively for the generation, transformation, distribution, transmission,
50.5or metering of electric current, or the operation of railway signals, or the transmission
50.6of intelligence and do not have as a principal function the consumption or use of electric
50.7current or provided service by or for the benefit of any person other than such utility, cable
50.8communications company, or telephone company, and
50.9    (ii) are generally accessible only to employees of such utility, cable communications
50.10company, or telephone company or persons acting under its control or direction, and
50.11    (iii) are not on the load side of the service point or point of entrance for
50.12communication systems;
50.13    (2) while performing work on installations, materials, or equipment which are a part
50.14of the street lighting operations of such utility; or
50.15    (3) while installing or performing work on outdoor area lights which are directly
50.16connected to a utility's distribution system and located upon the utility's distribution poles,
50.17and which are generally accessible only to employees of such utility or persons acting
50.18under its control or direction.
50.19    (f) An owner shall not be required to hold or obtain a license under sections 326B.31
50.20to 326B.399.
50.21(g) Companies and their employees licensed under section 326B.164 shall not be
50.22required to hold or obtain a license under sections 326B.31 to 326B.399 while performing
50.23elevator work.

50.24    Sec. 30. Minnesota Statutes 2012, section 326B.36, subdivision 7, is amended to read:
50.25    Subd. 7. Exemptions from inspections. Installations, materials, or equipment shall
50.26not be subject to inspection under sections 326B.31 to 326B.399:
50.27    (1) when owned or leased, operated and maintained by any employer whose
50.28maintenance electricians are exempt from licensing under sections 326B.31 to 326B.399,
50.29while performing electrical maintenance work only as defined by rule;
50.30    (2) when owned or leased, and operated and maintained by any electrical,
50.31communications, or railway utility, cable communications company as defined in section
50.32238.02 , or telephone company as defined under section 237.01, in the exercise of its
50.33utility, antenna, or telephone function; and
50.34    (i) are used exclusively for the generations, transformation, distribution,
50.35transmission, or metering of electric current, or the operation of railway signals, or the
51.1transmission of intelligence, and do not have as a principal function the consumption or
51.2use of electric current by or for the benefit of any person other than such utility, cable
51.3communications company, or telephone company; and
51.4    (ii) are generally accessible only to employees of such utility, cable communications
51.5company, or telephone company or persons acting under its control or direction; and
51.6    (iii) are not on the load side of the service point or point of entrance for
51.7communication systems;
51.8    (3) when used in the street lighting operations of an electrical utility;
51.9    (4) when used as outdoor area lights which are owned and operated by an electrical
51.10utility and which are connected directly to its distribution system and located upon the
51.11utility's distribution poles, and which are generally accessible only to employees of such
51.12utility or persons acting under its control or direction;
51.13    (5) when the installation, material, and equipment are in facilities subject to the
51.14jurisdiction of the federal Mine Safety and Health Act; or
51.15    (6) when the installation, material, and equipment is part of an elevator installation
51.16for which the elevator contractor, licensed under section 326B.33 326B.164, is required to
51.17obtain a permit from the authority having jurisdiction as provided by section 326B.184,
51.18and the inspection has been or will be performed by an elevator inspector certified and
51.19licensed by the department. This exemption shall apply only to installations, material, and
51.20equipment permitted or required to be connected on the load side of the disconnecting
51.21means required for elevator equipment under National Electrical Code Article 620, and
51.22elevator communications and alarm systems within the machine room, car, hoistway, or
51.23elevator lobby.

51.24    Sec. 31. Minnesota Statutes 2012, section 326B.37, is amended by adding a
51.25subdivision to read:
51.26    Subd. 15. Utility interconnected wind generation installations. (a) Fees
51.27associated with utility interconnected generation installations consisting of one or more
51.28generator sources interconnected with a utility power system and not supplying other
51.29premises loads are calculated according to paragraph (b) or (c).
51.30(b) The inspection fee is calculated according to subdivisions 2, 3, 4, and 6,
51.31paragraphs (d), (f), (j), and (k). A fee must be included for the generators and utility
51.32interconnect feeders, but not for a utility service.
51.33(c) There is a plan review fee and an inspection fee for the entire electrical
51.34installation. The plan review fee is based on the valuation of the electrical installation
51.35related to one of the generator systems that is part of the overall installation, not to include
52.1the supporting tower or other nonelectrical equipment or structures, calculated according
52.2to section 326B.153, subdivision 2. The inspection fee is $80 for each individual tower,
52.3including any voltage matching transformers located at the tower, and the fee for the
52.4feeders interconnecting the individual towers to the utility power system is calculated
52.5according to subdivisions 4 and 6, paragraph (k).

52.6    Sec. 32. Minnesota Statutes 2012, section 326B.43, subdivision 2, is amended to read:
52.7    Subd. 2. Agreement with municipality. The commissioner may enter into an
52.8agreement with a municipality, in which the municipality agrees to perform plan and
52.9specification reviews required to be performed by the commissioner under Minnesota
52.10Rules, part 4715.3130, if:
52.11    (a) the municipality has adopted:
52.12    (1) the plumbing code;
52.13    (2) an ordinance that requires plumbing plans and specifications to be submitted to,
52.14reviewed, and approved by the municipality, except as provided in paragraph (n);
52.15    (3) an ordinance that authorizes the municipality to perform inspections required by
52.16the plumbing code; and
52.17    (4) an ordinance that authorizes the municipality to enforce the plumbing code in its
52.18entirety, except as provided in paragraph (p);
52.19    (b) the municipality agrees to review plumbing plans and specifications for all
52.20construction for which the plumbing code requires the review of plumbing plans and
52.21specifications, except as provided in paragraph (n);
52.22    (c) the municipality agrees that, when it reviews plumbing plans and specifications
52.23under paragraph (b), the review will:
52.24    (1) reflect the degree to which the plans and specifications affect the public health
52.25and conform to the provisions of the plumbing code;
52.26    (2) ensure that there is no physical connection between water supply systems that
52.27are safe for domestic use and those that are unsafe for domestic use; and
52.28    (3) ensure that there is no apparatus through which unsafe water may be discharged
52.29or drawn into a safe water supply system;
52.30    (d) the municipality agrees to perform all inspections required by the plumbing
52.31code in connection with projects for which the municipality reviews plumbing plans and
52.32specifications under paragraph (b);
52.33    (e) the commissioner determines that the individuals who will conduct the inspections
52.34and the plumbing plan and specification reviews for the municipality do not have any
52.35conflict of interest in conducting the inspections and the plan and specification reviews;
53.1    (f) individuals who will conduct the plumbing plan and specification reviews for
53.2the municipality are:
53.3    (1) licensed master plumbers;
53.4    (2) licensed professional engineers; or
53.5    (3) individuals who are working under the supervision of a licensed professional
53.6engineer or licensed master plumber and who are licensed master or journeyman plumbers
53.7or hold a postsecondary degree in engineering;
53.8    (g) individuals who will conduct the plumbing plan and specification reviews for
53.9the municipality have passed a competency assessment required by the commissioner to
53.10assess the individual's competency at reviewing plumbing plans and specifications;
53.11    (h) individuals who will conduct the plumbing inspections for the municipality
53.12are licensed master or journeyman plumbers, or inspectors meeting the competency
53.13requirements established in rules adopted under section 326B.135;
53.14    (i) the municipality agrees to enforce in its entirety the plumbing code on all
53.15projects, except as provided in paragraph (p);
53.16    (j) the municipality agrees to keep official records of all documents received,
53.17including plans, specifications, surveys, and plot plans, and of all plan reviews, permits
53.18and certificates issued, reports of inspections, and notices issued in connection with
53.19plumbing inspections and the review of plumbing plans and specifications;
53.20    (k) the municipality agrees to maintain the records described in paragraph (j) in the
53.21official records of the municipality for the period required for the retention of public
53.22records under section 138.17, and shall make these records readily available for review at
53.23the request of the commissioner;
53.24    (l) the municipality and the commissioner agree that if at any time during the
53.25agreement the municipality does not have in effect the plumbing code or any of ordinances
53.26described in paragraph (a), or if the commissioner determines that the municipality is not
53.27properly administering and enforcing the plumbing code or is otherwise not complying
53.28with the agreement:
53.29    (1) the commissioner may, effective 14 days after the municipality's receipt of
53.30written notice, terminate the agreement;
53.31    (2) the municipality may challenge the termination in a contested case before the
53.32commissioner pursuant to the Administrative Procedure Act; and
53.33    (3) while any challenge is pending under clause (2), the commissioner shall perform
53.34plan and specification reviews within the municipality under Minnesota Rules, part
53.354715.3130;
54.1    (m) the municipality and the commissioner agree that the municipality may terminate
54.2the agreement with or without cause on 90 days' written notice to the commissioner;
54.3    (n) the municipality and the commissioner agree that the municipality shall forward
54.4to the state for review all plumbing plans and specifications for the following types of
54.5projects within the municipality:
54.6    (1) hospitals, nursing homes, supervised living facilities licensed for eight or
54.7more individuals, and similar health-care-related facilities regulated by the Minnesota
54.8Department of Health state-licensed facilities as defined in section 326B.103, subdivision
54.913;
54.10    (2) buildings owned by the federal or state government public buildings as defined
54.11in section 326B.103, subdivision 11; and
54.12    (3) projects of a special nature for which department review is requested by either
54.13the municipality or the state;
54.14    (o) where the municipality forwards to the state for review plumbing plans and
54.15specifications, as provided in paragraph (n), the municipality shall not collect any fee for
54.16plan review, and the commissioner shall collect all applicable fees for plan review; and
54.17    (p) no municipality shall revoke, suspend, or place restrictions on any plumbing
54.18license issued by the state.

54.19    Sec. 33. Minnesota Statutes 2012, section 326B.49, subdivision 2, is amended to read:
54.20    Subd. 2. Fees for plan reviews and audits. Plumbing system plans and
54.21specifications that are submitted to the commissioner for review shall be accompanied by
54.22the appropriate plan examination fees. If the commissioner determines, upon review of
54.23the plans, that inadequate fees were paid, the necessary additional fees shall be paid prior
54.24to plan approval. The commissioner shall charge the following fees for plan reviews and
54.25audits of plumbing installations for public, commercial, and industrial buildings:
54.26    (1) systems with both water distribution and drain, waste, and vent systems and
54.27having:
54.28    (i) 25 or fewer drainage fixture units, $150;
54.29    (ii) 26 to 50 drainage fixture units, $250;
54.30    (iii) 51 to 150 drainage fixture units, $350;
54.31    (iv) 151 to 249 drainage fixture units, $500;
54.32    (v) 250 or more drainage fixture units, $3 per drainage fixture unit to a maximum
54.33of $4,000; and
54.34    (vi) interceptors, separators, or catch basins, $70 per interceptor, separator, or catch
54.35basin design;
55.1    (2) building sewer service only, $150;
55.2    (3) building water service only, $150;
55.3    (4) building water distribution system only, no drainage system, $5 per supply
55.4fixture unit or $150, whichever is greater;
55.5    (5) storm drainage system, a minimum fee of $150 or:
55.6    (i) $50 per drain opening, up to a maximum of $500; and
55.7    (ii) $70 per interceptor, separator, or catch basin design;
55.8    (6) manufactured home park or campground, one to 25 sites, $300;
55.9    (7) manufactured home park or campground, 26 to 50 sites, $350;
55.10    (8) manufactured home park or campground, 51 to 125 sites, $400;
55.11    (9) manufactured home park or campground, more than 125 sites, $500; and
55.12    (10) accelerated review, double the regular fee, one-half to be refunded if no
55.13response from the commissioner within 15 business days; and
55.14    (11) (10) revision to previously reviewed or incomplete plans:
55.15    (i) review of plans for which the commissioner has issued two or more requests for
55.16additional information, per review, $100 or ten percent of the original fee, whichever
55.17is greater;
55.18    (ii) proposer-requested revision with no increase in project scope, $50 or ten percent
55.19of original fee, whichever is greater; and
55.20    (iii) proposer-requested revision with an increase in project scope, $50 plus the
55.21difference between the original project fee and the revised project fee.
55.22EFFECTIVE DATE.This section is effective January 1, 2014.

55.23    Sec. 34. Minnesota Statutes 2012, section 326B.49, subdivision 3, is amended to read:
55.24    Subd. 3. Inspection Permits; fees. The commissioner shall charge the following
55.25fees for inspections under sections 326B.42 to 326B.49:
55.26
Residential inspection fee (each visit)
$
50
55.27
Public, Commercial, and Industrial Inspections
Inspection Fee
55.28
25 or fewer drainage fixture units
$
300
55.29
26 to 50 drainage fixture units
$
900
55.30
51 to 150 drainage fixture units
$
1,200
55.31
151 to 249 drainage fixture units
$
1,500
55.32
250 or more drainage fixture units
$
1,800
55.33
Callback fee (each visit)
$
100
55.34(a) Before commencement of a plumbing installation to be inspected by the
55.35commissioner, the plumbing contractor or registered plumbing employer performing the
56.1plumbing work must submit to the commissioner an application for a permit and the
56.2permit and inspection fees in paragraphs (b) to (f).
56.3(b) The permit fee is $100.
56.4(c) The residential inspection fee is $50 for each inspection trip.
56.5(d) The public, commercial, and industrial inspection fees are as follows:
56.6(1) for systems with water distribution, drain, waste, and vent system connection:
56.7(i) $25 for each fixture, permanently connected appliance, floor drain, or other
56.8appurtenance;
56.9    (ii) $25 for each water conditioning, water treatment, or water filtration system; and
56.10(iii) $25 for each interceptor, separator, catch basin, or manhole;
56.11(2) roof drains, $25 for each drain;
56.12(3) building sewer service only, $100;
56.13(4) building water service only, $100;
56.14(5) building water distribution system only, no drainage system, $5 for each fixture
56.15supplied;
56.16(6) storm drainage system, a minimum fee of $25 for each drain opening, interceptor,
56.17separator, or catch basin;
56.18(7) manufactured home park or campground, $25 for each site;
56.19(8) reinspection fee to verify corrections, regardless of the total fee submitted, $100
56.20for each reinspection; and
56.21(9) each $100 in fees paid covers one inspection trip.
56.22(e) In addition to the fees in paragraph (c), the fee submitter must pay an hourly rate of
56.23$80 during regular business hours, or $120 when inspections are requested to be performed
56.24outside of normal work hours or on weekends and holidays, with a two-hour minimum
56.25where the fee submitter requests inspections of installations as systems are being installed.
56.26(f) The fee submitter must pay a fee equal to two hours at the hourly rate of $80
56.27when inspections scheduled by the submitter are not able to be completed because the
56.28work is not complete.

56.29    Sec. 35. Minnesota Statutes 2012, section 326B.89, subdivision 1, is amended to read:
56.30    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
56.31have the meanings given them.
56.32    (b) "Gross annual receipts" means the total amount derived from residential
56.33contracting or residential remodeling activities, regardless of where the activities are
56.34performed, and must not be reduced by costs of goods sold, expenses, losses, or any
56.35other amount.
57.1    (c) "Licensee" means a person licensed as a residential contractor or residential
57.2remodeler.
57.3    (d) "Residential real estate" means a new or existing building constructed for
57.4habitation by one to four families, and includes detached garages.
57.5    (e) "Fund" means the contractor recovery fund.
57.6(f) "Owner" when used in connection with real property, means a person who has
57.7any legal or equitable interest in real property and includes a condominium or townhome
57.8association that owns common property located in a condominium building or townhome
57.9building or an associated detached garage. Owner does not include any real estate
57.10developer or any owner using, or intending to use, the property for a business purpose and
57.11not as owner-occupied residential real estate.

57.12    Sec. 36. Minnesota Statutes 2012, section 327B.04, subdivision 4, is amended to read:
57.13    Subd. 4. License prerequisites. No application shall be granted nor license issued
57.14until the applicant proves to the commissioner that:
57.15    (a) the applicant has a permanent, established place of business at each licensed
57.16location. An "established place of business" means a permanent enclosed building other
57.17than a residence, or a commercial office space, either owned by the applicant or leased by
57.18the applicant for a term of at least one year, located in an area where zoning regulations
57.19allow commercial activity, and where the books, records and files necessary to conduct
57.20the business are kept and maintained. The owner of a licensed manufactured home park
57.21who resides in or adjacent to the park may use the residence as the established place of
57.22business required by this subdivision, unless prohibited by local zoning ordinance.
57.23    If a license is granted, the licensee may use unimproved lots and premises for sale,
57.24storage, and display of manufactured homes, if the licensee first notifies the commissioner
57.25in writing;
57.26    (b) if the applicant desires to sell, solicit or advertise the sale of new manufactured
57.27homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor
57.28of the new manufactured home it proposes to deal in;
57.29    (c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each
57.30agency and each subagency location that bears the applicant's name and the name under
57.31which the applicant will be licensed and do business in this state. Each bond is for the
57.32protection of consumer customers, and must be executed by the applicant as principal and
57.33issued by a surety company admitted to do business in this state. Each bond shall be
57.34exclusively for the purpose of reimbursing consumer customers and shall be conditioned
57.35upon the faithful compliance by the applicant with all of the laws and rules of this state
58.1pertaining to the applicant's business as a dealer or manufacturer, including sections
58.2325D.44 , 325F.67 and 325F.69, and upon the applicant's faithful performance of all its
58.3legal obligations to consumer customers; and (2) a certificate of liability insurance in
58.4the amount of $1,000,000 that provides aggregate coverage for the agency and each
58.5subagency location. In the event of a policy cancellation, the insurer shall send written
58.6notice to the commissioner at the same time that a cancellation request is received from
58.7or a notice is sent to the insured;
58.8    (d) the applicant has established a trust account as required by section 327B.08,
58.9subdivision 3
, unless the applicant states in writing its intention to limit its business to
58.10selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and
58.11    (e) the applicant has provided evidence of having had at least two years' prior
58.12experience in the sale of manufactured homes, working for a licensed dealer. The
58.13applicant does not have to satisfy the two-year prior experience requirement if:
58.14(1) the applicant sells or brokers used manufactured homes as permitted under
58.15section 327B.01, subdivision 7; or
58.16    (2) the applicant:
58.17    (i) has met all other licensing requirements;
58.18    (ii) is the owner of a manufactured home park; and
58.19    (iii) is selling new manufactured homes installed in the manufactured home park
58.20that the applicant owns.

58.21    Sec. 37. Minnesota Statutes 2012, section 341.21, subdivision 3a, is amended to read:
58.22    Subd. 3a. Commissioner. "Commissioner" means the commissioner of labor
58.23and industry or a duly designated representative of the commissioner who is either an
58.24employee of the Department of Labor and Industry or a person working under contract
58.25with the department.

58.26    Sec. 38. Minnesota Statutes 2012, section 341.221, is amended to read:
58.27341.221 ADVISORY COUNCIL.
58.28(a) The commissioner must appoint a Combative Sports Advisory Council to advise
58.29the commissioner on the administration of duties under this chapter.
58.30(b) The council shall have nine members appointed by the commissioner. One
58.31member must be a retired judge of the Minnesota District Court, Minnesota Court of
58.32Appeals, Minnesota Supreme Court, the United States District Court for the District of
58.33Minnesota, or the Eighth Circuit Court of Appeals. At least four members must have
58.34knowledge of the boxing industry. At least four members must have knowledge of the
59.1mixed martial arts industry. The commissioner shall make serious efforts to appoint
59.2qualified women to serve on the council.
59.3(c) Council members shall serve terms of four years with the terms ending on the
59.4first Monday in January.
59.5(d) The council shall annually elect from its membership a chair.
59.6(e) The commissioner shall convene the first meeting of the council by July 1, 2012.
59.7The council shall elect a chair at its first meeting. Thereafter, Meetings shall be convened
59.8by the commissioner, or by the chair with the approval of the commissioner.
59.9(f) For the first appointments to the council, the commissioner shall appoint the
59.10members currently serving on the Combative Sports Commission established under
59.11section 341.22, to the council. The commissioner shall designate two of the members to
59.12serve until the first Monday in January 2013; two members to serve until the first Monday
59.13in January 2014; two members to serve until the first Monday in January 2015; and three
59.14members to serve until the first Monday in January 2016.
59.15(g) Removal of members, filling of vacancies, and compensation of members shall
59.16be as provided in section 15.059.

59.17    Sec. 39. Minnesota Statutes 2012, section 341.27, is amended to read:
59.18341.27 COMMISSIONER DUTIES.
59.19    The commissioner shall:
59.20    (1) issue, deny, renew, suspend, or revoke licenses;
59.21    (2) make and maintain records of its acts and proceedings including the issuance,
59.22denial, renewal, suspension, or revocation of licenses;
59.23    (3) keep public records of the council open to inspection at all reasonable times;
59.24    (4) develop rules to be implemented under this chapter;
59.25    (5) conform to the rules adopted under this chapter;
59.26    (6) develop policies and procedures for regulating boxing and mixed martial arts; and
59.27    (7) immediately suspend an individual license for a medical condition, including but
59.28not limited to a medical condition resulting from an injury sustained during a match, bout,
59.29or contest that has been confirmed by the ringside physician. The medical suspension must
59.30be lifted after the commissioner receives written information from a physician licensed in
59.31the home state of the licensee indicating that the combatant may resume competition, and
59.32any other information that the commissioner may by rule require. Medical suspensions
59.33are not subject to section 214.10. 326B.082 or the contested case procedures provided
59.34in sections 14.57 to 14.69; and
60.1    (8) immediately suspend an individual combatant license for a mandatory rest period,
60.2which must commence at the conclusion of every combative sports contest in which the
60.3license holder competes and does not receive a medical suspension. A rest suspension
60.4must automatically lift after seven calendar days from the date the combative sports
60.5contest passed without notice or additional proceedings. Rest suspensions are not subject
60.6to section 326B.082 or the contested case procedures provided in sections 14.57 to 14.69.

60.7    Sec. 40. Minnesota Statutes 2012, section 341.29, is amended to read:
60.8341.29 JURISDICTION OF COMMISSIONER.
60.9    The commissioner shall:
60.10    (1) have sole direction, supervision, regulation, control, and jurisdiction over all
60.11combative sport contests that are held within this state unless a contest is exempt from the
60.12application of this chapter under federal law;
60.13    (2) have sole control, authority, and jurisdiction over all licenses required by this
60.14chapter; and
60.15    (3) grant a license to an applicant if, in the judgment of the commissioner, the
60.16financial responsibility, experience, character, and general fitness of the applicant are
60.17consistent with the public interest, convenience, or necessity and the best interests of
60.18combative sports and conforms with this chapter and the commissioner's rules.; and
60.19    (4) deny, suspend, or revoke a license using the enforcement provisions of section
60.20326B.082.

60.21    Sec. 41. Minnesota Statutes 2012, section 341.30, subdivision 4, is amended to read:
60.22    Subd. 4. Prelicensure requirements. (a) Before the commissioner issues a license
60.23to a promoter, corporation, or other business entity, the applicant shall:
60.24    (1) provide the commissioner with a copy of any agreement between a combatant
60.25and the applicant that binds the applicant to pay the combatant a certain fixed fee or
60.26percentage of the gate receipts;
60.27    (2) show on the application the owner or owners of the applicant entity and the
60.28percentage of interest held by each owner holding a 25 percent or more interest in the
60.29applicant;
60.30    (3) provide the commissioner with a copy of the latest financial statement of the
60.31entity; and
60.32    (4) provide the commissioner with a copy or other proof acceptable to the
60.33commissioner of the insurance contract or policy required by this chapter.
61.1    (b) Before the commissioner issues a license to a promoter, the applicant shall
61.2deposit with the commissioner a cash bond or surety bond in an amount set by the
61.3commissioner, which must not be less than $10,000. The bond shall be executed in favor
61.4of this state and shall be conditioned on the faithful performance by the promoter of the
61.5promoter's obligations under this chapter and the rules adopted under it. An applicant for a
61.6license as a promoter and licensed promoters shall submit an application for each event a
61.7minimum of six weeks before the combative sport contest is scheduled to occur.
61.8    (c) Before the commissioner issues a license to a combatant, the applicant shall
61.9submit to the commissioner:
61.10    (1) a mixed martial arts combatant national identification number or federal boxing
61.11identification number that is unique to the applicant, or both; and
61.12    (2) the results of a current medical examination on forms furnished or approved
61.13by the commissioner. The medical examination must include an ophthalmological and
61.14neurological examination, and documentation of test results for HBV, HCV, and HIV, and
61.15any other blood test as the commissioner by rule may require. The ophthalmological
61.16examination must be designed to detect any retinal defects or other damage or condition
61.17of the eye that could be aggravated by combative sports. The neurological examination
61.18must include an electroencephalogram or medically superior test if the combatant has
61.19been knocked unconscious in a previous contest. The commissioner may also order an
61.20electroencephalogram or other appropriate neurological or physical examination before
61.21any contest if it determines that the examination is desirable to protect the health of the
61.22combatant. The commissioner shall not issue a license to an applicant submitting positive
61.23test results for HBV, HCV, or HIV.

61.24    Sec. 42. Minnesota Statutes 2012, section 341.32, subdivision 2, is amended to read:
61.25    Subd. 2. Expiration and renewal. A license issued after July 1, 2007, is valid for
61.26one year from the date it is issued and Licenses expire annually on December 31, and may
61.27be renewed by filing an application for renewal with the commissioner and payment of the
61.28license fees established in section 341.321. An application for a license and renewal of a
61.29license must be on a form provided by the commissioner. There is a 30-day grace period
61.30during which a license may be renewed if a late filing penalty fee equal to the license fee
61.31is submitted with the regular license fee. A licensee that files late shall not conduct any
61.32activity regulated by this chapter until the commissioner has renewed the license. If the
61.33licensee fails to apply to the commissioner within the 30-day grace period, the licensee
61.34must apply for a new license under subdivision 1.

62.1    Sec. 43. Minnesota Statutes 2012, section 341.321, is amended to read:
62.2341.321 FEE SCHEDULE.
62.3    (a) The fee schedule for professional licenses issued by the commissioner is as
62.4follows:
62.5    (1) referees, $45 $80 for each initial license and each renewal;
62.6    (2) promoters, $400 $700 for each initial license and each renewal;
62.7    (3) judges and knockdown judges, $45 $80 for each initial license and each renewal;
62.8    (4) trainers, $45 $80 for each initial license and each renewal;
62.9    (5) ring announcers, $45 $80 for each initial license and each renewal;
62.10    (6) seconds, $45 $80 for each initial license and each renewal;
62.11    (7) timekeepers, $45 $80 for each initial license and each renewal;
62.12    (8) combatants, $45 $100 for each initial license and each renewal;
62.13    (9) managers, $45 $80 for each initial license and each renewal; and
62.14    (10) ringside physicians, $45 $80 for each initial license and each renewal.
62.15In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
62.162
, if applicable, an individual who applies for a professional license on the same day the
62.17combative sporting event is held shall pay a late fee of $100 plus the original license fee of
62.18$45 $120 at the time the application is submitted.
62.19    (b) The fee schedule for amateur licenses issued by the commissioner is as follows:
62.20    (1) referees, $45 $80 for each initial license and each renewal;
62.21    (2) promoters, $400 $700 for each initial license and each renewal;
62.22    (3) judges and knockdown judges, $45 $80 for each initial license and each renewal;
62.23    (4) trainers, $45 $80 for each initial license and each renewal;
62.24    (5) ring announcers, $45 $80 for each initial license and each renewal;
62.25    (6) seconds, $45 $80 for each initial license and each renewal;
62.26    (7) timekeepers, $45 $80 for each initial license and each renewal;
62.27    (8) combatant, $25 $60 for each initial license and each renewal;
62.28    (9) managers, $45 $80 for each initial license and each renewal; and
62.29    (10) ringside physicians, $45 $80 for each initial license and each renewal.
62.30    (c) The commissioner shall establish a contest fee for each combative sport contest.
62.31The professional combative sport contest fee is $1,500 per event or not more than four
62.32percent of the gross ticket sales, whichever is greater, as determined by the commissioner
62.33when the combative sport contest is scheduled, except that the amateur combative sport
62.34contest fee shall be $500 $1,500 or not more than four percent of the gross ticket sales,
62.35whichever is greater. The commissioner shall consider the size and type of venue when
62.36establishing a contest fee. The commissioner may establish the maximum number
63.1of complimentary tickets allowed for each event by rule. A professional or amateur
63.2combative sport contest fee is nonrefundable.
63.3    (d) All fees and penalties collected by the commissioner must be deposited in the
63.4commissioner account in the special revenue fund.

63.5    Sec. 44. REPEALER.
63.6(a) Minnesota Statutes 2012, sections 326B.31, subdivisions 18, 19, and 22; and
63.7326B.978, subdivision 4, are repealed.
63.8(b) Minnesota Rules, part 1307.0032, is repealed effective December 31, 2013.
63.9(c) Minnesota Rules, parts 3800.3520, subpart 5, items C and D; and 3800.3602,
63.10subpart 2, item B, subitems (5) and (6), are repealed.

63.11ARTICLE 3
63.12EMPLOYMENT, ECONOMIC DEVELOPMENT, AND
63.13WORKFORCE DEVELOPMENT

63.14    Section 1. [116J.013] COST-OF-LIVING STUDY; ANNUAL REPORT.
63.15(a) The commissioner shall conduct an annual cost-of-living study in Minnesota.
63.16The study shall include:
63.17(1) a calculation of the statewide basic needs cost of living, adjusted for family size;
63.18(2) a calculation of the basic needs cost of living, adjusted for family size, for each
63.19county;
63.20(3) an analysis of statewide and county cost-of-living data, employment data, and
63.21job vacancy data; and
63.22(4) recommendations to aid in the assessment of employment and economic
63.23development planning needs throughout the state.
63.24(b) The commissioner shall report on the cost-of-living study and recommendations
63.25by February 1 of each year to the governor and to the chairs of the standing committees
63.26of the house of representatives and the senate having jurisdiction over employment and
63.27economic development issues.

63.28    Sec. 2. [116J.4011] LABOR MARKET INFORMATION DATA PRODUCTION
63.29REQUIREMENT.
63.30(a) As part of the commissioner's obligation under section 116J.401, the
63.31commissioner must, in collaboration with the Office of Higher Education and local
63.32workforce councils, produce and publish labor market analysis describing the alignment
63.33between employer requirements and workforce qualifications.
64.1(b) The analysis must include a description of job trends that supports career choice
64.2and job seeking including:
64.3(1) measures of current job growth, projected future job growth, and current job
64.4vacancies;
64.5(2) a breakdown of these measures, whenever feasible, by industry, occupation,
64.6statewide and substate region, by educational requirement, state employee retirement
64.7trends, and by racial trends;
64.8(3) a description of industry- or occupation-based credentials and minimum
64.9educational standards necessary for successful employment in each area; and
64.10(4) a designation of areas of opportunity based on high growth, high vacancy, and
64.11high pay conditions.
64.12(c) The analysis must include a description of workforce supply and quality,
64.13including:
64.14(1) a description of the current educational attainment of the workforce and its
64.15distribution across industries, occupations, and regions;
64.16(2) the number and distribution of recent graduates of and current enrollees in
64.17postsecondary institutions by academic concentration or major and by credential type; and
64.18(3) the completion rate, employment outcome, and average debt for recent
64.19postsecondary graduates by program of study, institution type, and credential.
64.20(d) The analysis must be reviewed on a regular basis by representatives from the
64.21business and postsecondary sectors, and any feedback should be incorporated into data
64.22collection and presentation where feasible. This feedback may also include surveys of
64.23employers on their skill, credential, and other workforce requirements when necessary.
64.24(e) Analysis, data, and reports required by this section must be easily accessible, easily
64.25readable, and prominently presented on the Department of Employment and Economic
64.26Development Web site and Web sites of workforce centers. Information on job vacancies
64.27and areas of potential employment opportunities should link to educational or credential
64.28requirements, appropriate training or educational offerings, prevailing wages, and other
64.29indicators of market conditions deemed important to career choosers and job seekers.

64.30    Sec. 3. [116J.548] HOST COMMUNITY ECONOMIC DEVELOPMENT
64.31GRANTS.
64.32    Subdivision 1. Creation of account. A host community economic development
64.33grant program is created in the Department of Employment and Economic Development.
64.34Grants awarded under this section may only be spent for capital costs of an eligible project.
64.35    Subd. 2. Definitions. For purposes of this section:
65.1(1) "Capital costs" means expenditures for the acquisition and betterment of public
65.2lands and buildings, and for other publicly owned capital improvements. Capital costs
65.3also include expenditures for predesign, design, engineering, and similar activities for
65.4specifically identified eligible projects.
65.5(2) "Eligible project" means a development or redevelopment project that will
65.6generate economic development within a host community.
65.7(3) "Economic development" means job creation, an increase in the tax base, the
65.8capacity of the eligible project to attract private investment, and other objective criteria
65.9established by the commissioner that demonstrate a public benefit to the host community.
65.10(4) "Host community" means a city located within the seven-county metropolitan
65.11area, as defined in section 473.121, subdivision 2, that is the site of a waste disposal
65.12facility that meets the standards in section 473.849, that accepts unprocessed mixed
65.13municipal solid waste generated in the metropolitan area.
65.14    Subd. 3. Application. Host communities may apply for a grant under this section
65.15on a form and in a manner prescribed by the commissioner. In awarding grants under
65.16this section, the commissioner shall give priority to eligible projects that, based on a
65.17cost-benefit analysis, provide the highest return on public investment. The commissioner
65.18must allocate available money between host communities as evenly as practicable.
65.19    Subd. 4. No match required. Notwithstanding section 16A.86 or any other law to
65.20the contrary, the state share of a project covered by this section shall cover 100 percent of
65.21the total cost of the project.
65.22    Subd. 5. Report. The commissioner must report to committees of the legislature
65.23with jurisdiction over economic development by February 15 of each year on grants
65.24awarded under this section.
65.25EFFECTIVE DATE.This section is effective the day following final enactment.

65.26    Sec. 4. Minnesota Statutes 2012, section 116J.8731, subdivision 2, is amended to read:
65.27    Subd. 2. Administration. Except as otherwise provided in this section, the
65.28commissioner shall administer the fund as part of the Small Cities Development Block
65.29Grant Program. and funds shall be made available to local communities and recognized
65.30Indian tribal governments in accordance with the rules adopted for economic development
65.31grants in the small cities community development block grant program, except that.
65.32 All units of general purpose local government are eligible applicants for Minnesota
65.33investment funds. The commissioner may provide forgivable loans directly to a private
65.34enterprise and not require a local community or recognized Indian tribal government
65.35application other than a resolution supporting the assistance. Eligible applicants for the
66.1state-funded portion of the fund also include development authorities as defined in section
66.2116J.552, subdivision 4, provided that the governing body of the municipality approves,
66.3by resolution, the application of the development authority. The commissioner may also
66.4make funds available within the department for eligible expenditures under subdivision 3,
66.5clause (2). A home rule charter or statutory city, county, or town may loan or grant money
66.6received from repayment of funds awarded under this section to a regional development
66.7commission, other regional entity, or statewide community capital fund as determined by
66.8the commissioner, to capitalize or to provide the local match required for capitalization of
66.9a regional or statewide revolving loan fund.

66.10    Sec. 5. Minnesota Statutes 2012, section 116J.8731, subdivision 3, is amended to read:
66.11    Subd. 3. Eligible expenditures. The money appropriated for this section may
66.12be used to:
66.13(1) fund loans or grants for infrastructure, loans, loan guarantees, interest buy-downs,
66.14and other forms of participation with private sources of financing, provided that a loan to
66.15a private enterprise must be for a principal amount not to exceed one-half of the cost of
66.16the project for which financing is sought;
66.17(2) fund strategic investments in renewable energy market development, such as
66.18low interest loans for renewable energy equipment manufacturing, training grants to
66.19support renewable energy workforce, development of a renewable energy supply chain
66.20that represents and strengthens the industry throughout the state, and external marketing
66.21to garner more national and international investment into Minnesota's renewable sector.
66.22Expenditures in external marketing for renewable energy market development are not
66.23subject to the limitations in clause (1); and
66.24(3) provide private entrepreneurs with training, other technical assistance, and
66.25financial assistance, as provided in the small cities development block grant program.

66.26    Sec. 6. Minnesota Statutes 2012, section 116J.8731, subdivision 8, is amended to read:
66.27    Subd. 8. Disaster contingency account; repayments. There is created a Minnesota
66.28investment fund disaster contingency account in the special revenue fund. Repayment of
66.29loan amounts to the local government unit or development authority under this section
66.30shall be forwarded to the commissioner and deposited in the disaster contingency account
66.31in the Minnesota investment fund to be appropriated by law for future disaster relief.

66.32    Sec. 7. Minnesota Statutes 2012, section 116J.8731, subdivision 9, is amended to read:
67.1    Subd. 9. Requirements for assistance. (a) All awards under section 12A.07 are
67.2subject to the following requirements in this subdivision.
67.3(a) Eligible applicants include the following:
67.4(b) Eligible applicants are subject to the following requirements:
67.5(1) Applicants may be any business or nonprofit organization in the area included
67.6in the disaster declaration that was directly and adversely affected by the disaster. This
67.7includes: businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit
67.8organizations, including those nonprofits that provide residential, health care, child care,
67.9social, or other services on behalf of the Department of Human Services to residents
67.10included in the disaster area.
67.11    (2) Business applicants must be organized as a proprietorship, partnership, LLC, or
67.12a corporation.
67.13    (3) Applicants must have been in operation before the date of the disaster.
67.14    (b) Eligible activities. (c) Loan funds may be used to assist businesses only in their
67.15recovery efforts but are not available to provide relief from economic losses.
67.16    (c) Eligible costs. (d) Eligible costs may include the following: repair of buildings,
67.17leasehold improvements, fixtures and/or equipment, loss of inventory, and cleanup costs.
67.18    (d) (e) Ineligible activities include all of the following:
67.19    (1) Ineligible applicants. Any applicants not meeting the eligibility requirements
67.20outlined in this subdivision are ineligible to receive recovery loan funds.
67.21    (2) Ineligible activities. Funds may not be used for lending or investment operations,
67.22land speculation, or any activity deemed illegal by federal, state, or local law or ordinance.
67.23    (3) Ineligible costs. Ineligible costs include but are not limited to: economic injury
67.24losses, relocation, management fees, financing costs, franchise fees, debt consolidation,
67.25moving costs, refinancing debt existing prior to the date of the disaster, and operating costs.
67.26    (e) (f) Loan application:
67.27    (1) Application process. All parties seeking recovery loan funds must file an
67.28application with the local unit of government or development authority. Small Business
67.29Administration (SBA) application forms may be used. Applications must be transmitted
67.30in the form and manner prescribed by the commissioner.
67.31    (f) Application information. (g) Only completed applications will be reviewed for
67.32consideration. Submittal of the following information constitutes a complete application:
67.33    (1) Minnesota investment fund recovery loan fund application;
67.34    (2) business SBA disaster application, if applicable;
67.35    (3) regional development organization or responsible local government application,
67.36if applicable;
68.1    (4) administrative contact;
68.2    (5) business release for local government to review SBA damage assessment/loss
68.3verification, if applicable;
68.4    (6) proof of loss statement from insurer;
68.5    (7) construction cost estimates;
68.6    (8) invoices for work completed;
68.7    (9) quotes for equipment;
68.8    (10) proposed security;
68.9    (11) company historical financial statements for the 24 months immediately prior to
68.10the application date;
68.11    (12) credit check release;
68.12    (13) number of jobs to be retained;
68.13    (14) wages paid;
68.14    (15) amount of loan request;
68.15    (16) documentation of damages incurred;
68.16    (17) property taxes paid and current;
68.17    (18) judgments, liens, agreements, consent decrees, stipulations for settlements, or
68.18other such actions which would prevent the applicant from participating in any program
68.19administered by the responsible local, state, or regional government;
68.20    (19) compliance with all applicable local ordinances and plans;
68.21    (20) documentation through financial and tax records that the business was a viable
68.22operating entity at the time of the flood;
68.23    (21) business tax identification number; and
68.24    (22) other documentation as requested.
68.25    (g) (h) Incomplete applications will be assigned pending status and the applicant
68.26will be informed in writing of the missing documentation.
68.27    (h) Determination of eligibility. (i) Applicant eligibility will be determined using
68.28criteria enumerated in paragraph (a) (b). A credit check for the company and each of its
68.29principal owners may be conducted. An owner's encumbrance report will be completed
68.30by the Recorder's Office.
68.31    (j) A grant recipient is eligible for assistance provided under this section only after the
68.32recipient has claimed all applicable private insurance and the recipient has utilized all other
68.33sources of applicable assistance available under the act appropriating funding for the grant.

68.34    Sec. 8. [116J.8748] MINNESOTA JOB CREATION FUND.
69.1    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
69.2have the meanings given.
69.3(b) "Agreement" or "business subsidy agreement" means a business subsidy
69.4agreement under section 116J.994 that must include, but is not limited to: specification
69.5of the duration of the agreement, job goals and a timeline for achieving those goals over
69.6the duration of the agreement, construction and other investment goals and a timeline for
69.7achieving those goals over the duration of the agreement, and the value of benefits the
69.8firm may receive following achievement of capital investment and employment goals.
69.9The local government and business must report to the commissioner on the business
69.10performance using the forms developed by the commissioner.
69.11(c) "Business" means an individual, corporation, partnership, limited liability
69.12company, association, or other entity.
69.13(d) "Capital investment" means money that is expended for the purpose of building
69.14or improving real fixed property where employees under paragraphs (g) and (h) are or
69.15will be employed and also includes construction materials, services, and supplies, and the
69.16purchase and installation of equipment and machinery as provided under subdivision 4,
69.17paragraph (b), clause (5).
69.18(e) "Commissioner" means the commissioner of employment and economic
69.19development.
69.20(f) "Minnesota job creation fund business" means a business that is designated
69.21by the commissioner under subdivision 3.
69.22(g) "New full-time employee" means an employee who:
69.23(1) begins work at a Minnesota job creation fund business facility noted in a business
69.24subsidy agreement and following the designation as a job creation fund business; and
69.25(2) has expected work hours of at least 2,080 hours annually.
69.26(h) "Retained job" means a full-time position:
69.27(1) that existed at the facility prior to the designation as a job creation fund business;
69.28and
69.29(2) has expected work hours of at least 2,080 hours annually.
69.30(i) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).
69.31    Subd. 2. Application. (a) In order to qualify for designation as a Minnesota job
69.32creation fund business under subdivision 3, a business must submit an application to the
69.33local government entity where the facility is or will be located.
69.34(b) A local government must submit the business application along with other
69.35application materials to the commissioner for approval.
70.1(c) The applications required under paragraphs (a) and (b) must be in the form and
70.2be made under the procedures specified by the commissioner.
70.3    Subd. 3. Minnesota job creation fund business designation; requirements. (a)
70.4To receive designation as a Minnesota job creation fund business, a business must satisfy
70.5all of the following conditions:
70.6(1) the business is or will be engaged in, within Minnesota, one of the following
70.7as its primary business activity:
70.8(i) manufacturing;
70.9(ii) warehousing;
70.10(iii) distribution;
70.11(iv) information technology;
70.12(v) finance;
70.13(vi) insurance; or
70.14(vii) professional or technical services;
70.15(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
70.16professional sports; political consulting; leisure; hospitality; or professional services
70.17provided by attorneys, accountants, business consultants, physicians, or health care
70.18consultants, or primarily engaged in making retail sales to purchasers who are physically
70.19present at the business's location;
70.20(3) the business must enter into a binding construction and job creation business
70.21subsidy agreement with the commissioner to expend at least $500,000 in capital investment
70.22in a capital investment project that includes a new, expanded, or remodeled facility within
70.23one year following designation as a Minnesota job creation fund business and:
70.24(i) create at least ten new full-time employee positions within two years of the
70.25benefit date following the designation as a Minnesota job creation fund business; or
70.26(ii) expend at least $25,000,000, which may include the installation and purchase
70.27of machinery and equipment, in capital investment and retain at least 200 employees for
70.28projects located in the metropolitan area as defined in section 200.02, subdivision 24, and
70.2975 employees for projects located outside the metropolitan area;
70.30(4) positions or employees moved or relocated from another Minnesota location
70.31of the Minnesota job creation fund business must not be included in any calculation or
70.32determination of job creation or new positions under this paragraph; and
70.33(5) a Minnesota job creation fund business must not terminate, lay off, or reduce
70.34the working hours of an employee for the purpose of hiring an individual to satisfy job
70.35creation goals under this subdivision.
71.1(b) Prior to approving the proposed designation of a business under this subdivision,
71.2the commissioner shall consider the following:
71.3(1) the economic outlook of the industry in which the business engages;
71.4(2) the projected sales of the business that will be generated from outside the state
71.5of Minnesota;
71.6(3) how the business will build on existing regional, national, and international
71.7strengths to diversify the state's economy;
71.8(4) whether the business activity would occur without financial assistance;
71.9(5) whether the business is unable to expand at an existing Minnesota operation
71.10due to facility or land limitations;
71.11(6) whether the business has viable location options outside Minnesota;
71.12(7) the effect of financial assistance on industry competitors in Minnesota;
71.13(8) financial contributions to the project made by local governments; and
71.14(9) any other criteria the commissioner deems necessary.
71.15(c) Upon receiving notification of local approval under subdivision 2, the
71.16commissioner shall review the determination by the local government and consider the
71.17conditions listed in paragraphs (a) and (b) to determine whether it is in the best interests of
71.18the state and local area to designate a business as a Minnesota job creation fund business.
71.19(d) If the commissioner designates a business as a Minnesota job creation fund
71.20business, the business subsidy agreement shall include the performance outcome
71.21commitments and the expected financial value of any Minnesota job creation fund benefits.
71.22(e) The commissioner may amend an agreement once, upon request of a local
71.23government on behalf of a business, only if the performance is expected to exceed
71.24thresholds stated in the original agreement.
71.25(f) A business may apply to be designated as a Minnesota job creation fund business
71.26at the same location more than once only if all goals under a previous Minnesota job
71.27creation fund agreement have been met and the agreement is completed.
71.28    Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job
71.29creation fund business as eligible to receive a specific value of benefit under paragraphs
71.30(b) and (c) when the business has achieved its job creation and capital investment goals
71.31noted in its agreement under subdivision 3.
71.32(b) A qualified Minnesota job creation fund business may be certified eligible for the
71.33benefits in this paragraph for up to five years for projects located in the metropolitan area
71.34as defined in section 200.02, subdivision 24, and seven years for projects located outside
71.35the metropolitan area, as determined by the commissioner when considering the best
71.36interests of the state and local area. The eligibility for the following benefits begins the
72.1date the commissioner certifies the business as a qualified Minnesota job creation fund
72.2business under this subdivision:
72.3(1) up to five percent rebate for projects located in the metropolitan area as
72.4defined in section 200.02, subdivision 24, and 7.5 percent for projects located outside
72.5the metropolitan area, on capital investment on qualifying purchases as provided in
72.6subdivision 5 with the total rebate for a project not to exceed $500,000;
72.7(2) an award of up to $500,000 based on full-time job creation and wages paid as
72.8provided in subdivision 6 with the total award not to exceed $500,000;
72.9(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation
72.10awards are allowable for projects that have at least $25,000,000 in capital investment
72.11and 200 new employees;
72.12(4) up to $1,000,000 in capital investment rebates are allowable for projects that
72.13have at least $25,000,000 in capital investment and 200 retained employees for projects
72.14located in the metropolitan area as defined in section 200.02, subdivision 24, and 75
72.15employees for projects located outside the metropolitan area; and
72.16(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
72.17include the installation and purchases of machinery and equipment. These expenditures
72.18are not eligible for the capital investment rebate provided under subdivision 5.
72.19(c) The job creation award may be provided in multiple years as long as the qualified
72.20Minnesota job creation fund business continues to meet the job creation goals provided
72.21for in its agreement under subdivision 3 and the total award does not exceed $500,000
72.22except as provided under paragraph (b), clauses (3) and (4).
72.23(d) No rebates or award may be provided until the Minnesota job creation fund
72.24business has at least $500,000 in capital investment in the project and at least ten full-time
72.25jobs have been created and maintained for at least one year or the retained employees, as
72.26provided in paragraph (b), clause (4), remain for at least one year. The agreement may
72.27require additional performance outcomes that need to be achieved before rebates and
72.28awards are provided. If fewer retained jobs are maintained, but still above the minimum
72.29under this subdivision, the capital investment award shall be reduced on a proportionate
72.30basis.
72.31(e) The forms needed to be submitted to document performance by the Minnesota
72.32job creation fund business must be in the form and be made under the procedures specified
72.33by the commissioner. The forms shall include documentation and certification by the
72.34business that it is in compliance with the business subsidy agreement, sections 116J.871
72.35and 116L.66, and other provisions as specified by the commissioner.
73.1(f) Minnesota job creation fund businesses must pay each new full-time employee
73.2added pursuant to the agreement total compensation, including benefits not mandated by
73.3law, that on an annualized basis is equal to at least 110 percent of the federal poverty
73.4level for a family of four.
73.5(g) A Minnesota job creation fund business must demonstrate reasonable progress on
73.6its capital investment expenditures within six months following designation as a Minnesota
73.7job creation fund business to ensure that the capital investment goal in the agreement
73.8under subdivision 1 will be met. Businesses not making reasonable progress will not be
73.9eligible for benefits under the submitted application and will need to work with the local
73.10government unit to resubmit a new application and request to be a Minnesota job creation
73.11fund business. Notwithstanding the goals noted in its agreement under subdivision 1, this
73.12action shall not be considered a default of the business subsidy agreement.
73.13    Subd. 5. Capital investment rebate. (a) A qualified Minnesota job creation fund
73.14business is eligible for a rebate on the purchase and use of construction materials, services,
73.15and supplies used for or consumed in the construction project as described in the goals
73.16under the agreement provided under subdivision 1, paragraph (b).
73.17(b) The rebate under this subdivision applies regardless of whether the purchases are
73.18made by the qualified Minnesota job creation fund business or a contractor hired to perform
73.19work or provide services at the qualified Minnesota job creation fund business location.
73.20(c) Minnesota job creation fund businesses seeking the rebate for capital investment
73.21provided under subdivision 4 must submit forms and applications to the Department of
73.22Employment and Economic Development as prescribed by the commissioner of each
73.23department.
73.24    Subd. 6. Job creation award. (a) A qualified Minnesota job creation fund business
73.25is eligible for an annual award for each new job created and maintained by the business
73.26using the following schedule: $1,000 for each job position paying annual wages at least
73.27$26,000 but less than $35,000; $2,000 for each job position paying at least $35,000 but
73.28less than $45,000; and $3,000 for each job position paying at least $45,000; and as noted
73.29in the goals under the agreement provided under subdivision 1.
73.30(b) The job creation award schedule must be adjusted annually using the percentage
73.31increase in the federal poverty level for a family of four.
73.32(c) Minnesota job creation fund businesses seeking an award credit provided under
73.33subdivision 4 must submit forms and applications to the Department of Employment and
73.34Economic Development as prescribed by the commissioner.
74.1    Subd. 7. Rulemaking. (a) If the commissioner's policies, procedures, or other
74.2statements are rules, as defined in section 14.02, subdivision 4, the requirements in either
74.3paragraph (b) or (c) apply, as applicable.
74.4(b) Effective upon enactment until January 1, 2015:
74.5(1) the commissioner shall publish notice of proposed rules in the State Register
74.6after complying with section 14.07, subdivision 2;
74.7(2) interested parties have 21 days to comment on the proposed rules. The
74.8commissioner must consider comments it receives. After the commissioner has considered
74.9all comments and has complied with section 14.07, subdivision 2, the commissioner shall
74.10publish notice of the final rule in the State Register;
74.11(3) if the adopted rules are the same as the proposed rules, the notice shall state that
74.12the rules have been adopted as proposed and shall cite the prior publication. If the adopted
74.13rules differ from the proposed rules, the portions of the adopted rules that differ from the
74.14proposed rules shall be included in the notice of adoption, together with a citation to the
74.15prior State Register that contained the notice of the proposed rules; and
74.16(4) rules published in the State Register before January 1, 2014, take effect upon
74.17publication of the notice. Rules published in the State Register on and after January 1,
74.182014, take effect 30 days after publication of the notice.
74.19(c) Beginning January 1, 2015, the commissioner may adopt rules to implement any
74.20provisions in this section using the expedited rulemaking process in section 14.389.
74.21(d) The notice of proposed rules required in paragraph (b) must provide information
74.22as to where the public may obtain a copy of the rules. The commissioner shall post the
74.23proposed rules on the department Web site at the same time the notice is published in
74.24the State Register.
74.25EFFECTIVE DATE.This section is effective January 1, 2014.

74.26    Sec. 9. [116J.9661] TRADE POLICY ADVISORY COUNCIL.
74.27    Subdivision 1. Establishment. The Trade Policy Advisory Council is established to
74.28advise and assist the governor and the legislature regarding United States trade agreements.
74.29    Subd. 2. Membership. (a) The Trade Policy Advisory Council shall have 15
74.30members, as follows:
74.31(1) the commissioner of employment and economic development or designee;
74.32(2) the commissioner of agriculture or designee;
74.33(3) the commissioner of administration or designee;
74.34(4) two senators, including one appointed by the Subcommittee on Committees of
74.35the Committee on Rules and Administration, and one appointed by the minority leader;
75.1(5) two members of the house of representatives, including one member appointed
75.2by the speaker of the house and one member appointed by the minority leader; and
75.3(6) eight members appointed by the governor. The governor's appointees shall
75.4represent specified interests, including organized labor, environmental interests, family
75.5farmers, business and industry, and international trade and development.
75.6(b) The Trade Policy Advisory Council may invite representatives from other state
75.7agencies, industries, trade and labor organizations, nongovernmental organizations, and
75.8local governments to join the council as nonvoting ex officio members.
75.9(c) Except for initial appointments, the appointing authorities shall make
75.10appointments by the first Monday in January of each odd-numbered year.
75.11    Subd. 3. Term. Except for the initial appointees, members of the Trade Policy
75.12Advisory Council shall serve for a term of two years and may be reappointed. Members
75.13shall serve until their successors have been appointed.
75.14    Subd. 4. Administration. The commissioner of employment and economic
75.15development or the commissioner's designee shall provide meeting space and
75.16administrative services for the council.
75.17    Subd. 5. Initial appointments and first meeting. The appointing authorities shall
75.18appoint the first members of the council by January 15, 2014. The first appointees shall
75.19serve until the first Monday in January 2015. The commissioner of the Department of
75.20Employment and Economic Development shall convene the first meeting by February 15,
75.212014, and shall act as chair until the council elects a chair at its first meeting.
75.22    Subd. 6. Chair. The members shall elect a chair from the legislative members
75.23of the advisory council.
75.24    Subd. 7. No compensation. Public members of the advisory council serve without
75.25compensation or payment of expenses.
75.26    Subd. 8. Duties. The Trade Policy Advisory Council shall:
75.27(1) advise the governor and the legislature on matters relating to United States
75.28trade agreements;
75.29(2) assess the potential impact of federal trade agreements on the state's economy;
75.30(3) advise the governor and the legislature of the group's findings and make
75.31recommendations, including any draft legislation necessary to implement the
75.32recommendations, to the governor and the legislature;
75.33(4) determine, on a case-by-case basis, the impact of a specific federal trade
75.34agreement by requesting input from state agencies, seeking expert advice, convening
75.35public hearings, and taking other reasonable and appropriate actions;
76.1(5) request information from the Office of the United States Trade Representative
76.2necessary to conduct an appropriate review of government procurement agreements or
76.3other trade issues; and
76.4(6) receive information obtained by the United States Trade Representative's single
76.5point of contact for Minnesota.
76.6    Subd. 9. Meeting. The Trade Policy Advisory Council shall meet at least once
76.7per fiscal year.
76.8    Subd. 10. Sunset. The council shall sunset January 1, 2020.

76.9    Sec. 10. [116J.978] MINNESOTA TRADE OFFICES IN FOREIGN MARKETS.
76.10(a) The commissioner of employment and economic development shall establish
76.11three new Minnesota Trade Offices in key foreign markets selected for their potential to
76.12increase Minnesota exports and attract foreign direct investment.
76.13(b) The commissioner shall establish a performance rating system for the new offices
76.14established under this section and create specific annual goals for the offices to meet. The
76.15commissioner shall monitor activities of the office, including, but not limited to, the number
76.16of inquiries and projects received and completed, meetings arranged between Minnesota
76.17companies and potential investors, distributors, or customers, and agreements signed.

76.18    Sec. 11. [116J.979] MINNESOTA STEP GRANTS.
76.19    Subdivision 1. Establishment. The commissioner of employment and economic
76.20development shall create a State Trade and Export Promotion grants program, hereafter
76.21STEP grants, to provide financial and technical assistance to eligible Minnesota small
76.22businesses with an active interest in exporting products or services to foreign markets.
76.23    Subd. 2. Grants. Recipients may apply, on an application devised by the
76.24commissioner, for up to $7,500 in reimbursement for approved export-development
76.25activities, including, but not limited to:
76.26(1) participation in trade missions;
76.27(2) export training;
76.28(3) exhibition at trade shows or industry-specific events;
76.29(4) translation of marketing materials;
76.30(5) development of foreign language Web sites, Gold Key, or other business
76.31matchmaking services;
76.32(6) company-specific international sales activities; and
76.33(7) testing and certification required to sell products in foreign markets.

77.1    Sec. 12. [116J.9801] INVEST MINNESOTA.
77.2The commissioner shall establish the Invest Minnesota marketing initiative. This
77.3initiative must focus on branding the state's economic development initiatives and
77.4promoting Minnesota business opportunities. The initiative may include measures to
77.5communicate the benefits of doing business in Minnesota to companies considering
77.6relocating, establishing a United States presence, or expanding.

77.7    Sec. 13. [116J.998] OFFICE OF BROADBAND DEVELOPMENT.
77.8    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
77.9have the meanings given them.
77.10(b) "Broadband" or "broadband service" means any service providing advanced
77.11telecommunications capability and Internet access with transmission speeds that, at a
77.12minimum, meet the Federal Communications Commission definition for broadband.
77.13(c) "Local unit of government" has the meaning given in section 116G.03,
77.14subdivision 3.
77.15(d) "Office" means the Office of Broadband Development established in subdivision
77.162, paragraph (a).
77.17    Subd. 2. Office established; purpose. (a) An Office of Broadband Development is
77.18established within the Department of Employment and Economic Development and shall
77.19remain in existence until the commissioner certifies that the state has met the broadband
77.20goals established in section 237.012. The director shall be appointed by the governor and
77.21shall serve in the unclassified service. The director must be qualified by experience and
77.22training in broadband. The office may employ staff necessary to carry out the office's
77.23duties under subdivision 4.
77.24(b) The purpose of the office is to encourage, foster, develop, and improve broadband
77.25within the state in order to:
77.26(1) drive job creation, promote innovation, and expand markets for Minnesota
77.27businesses;
77.28(2) serve the ongoing and growing needs of Minnesota's education systems, health
77.29care system, public safety system, industries and businesses, governmental operations,
77.30and citizens; and
77.31(3) improve accessibility for underserved communities and populations.
77.32    Subd. 3. Organization. The office shall consist of a director of the Office of
77.33Broadband Development, as well as any staff necessary to carry out the office's duties
77.34under subdivision 4.
77.35    Subd. 4. Duties. (a) The office shall have the power and duty to:
78.1(1) serve as the central broadband planning body for the state of Minnesota;
78.2(2) coordinate with state, regional, local, and private entities to develop, to the
78.3maximum extent practicable, a uniform statewide broadband access and usage policy;
78.4(3) develop, recommend, and implement a statewide plan to encourage cost-effective
78.5broadband access, and to make recommendations for increased usage, particularly in
78.6rural and other underserved areas;
78.7(4) coordinate efforts, in consultation and cooperation with the commissioner of
78.8commerce, local units of government, and private entities, to meet the state's broadband
78.9goals in section 237.012;
78.10(5) develop, coordinate, and implement the state's broadband infrastructure
78.11development program under section 116J.999;
78.12(6) provide consultation services to local units of government or other project
78.13sponsors in connection with the planning, acquisition, improvement, construction, or
78.14development of any broadband deployment project;
78.15(7) encourage public-private partnerships to increase deployment and adoption
78.16of broadband services and applications, including recommending funding options and
78.17possible incentives to encourage investment in broadband expansion;
78.18(8) monitor the broadband development efforts of other states and nations in areas
78.19such as business, education, public safety, and health;
78.20(9) consult with the commissioner of commerce to monitor broadband-related
78.21activities at the federal level, including regulatory and policy changes and the potential
78.22impact on broadband deployment and sustainability in the state;
78.23(10) serve as an information clearinghouse for federal programs providing financial
78.24assistance to institutions located in rural areas seeking to obtain access to high-speed
78.25broadband service, and use this information as an outreach tool to make institutions
78.26located in rural areas that are unserved or underserved with respect to broadband service
78.27aware of the existence of federal assistance;
78.28(11) provide logistical and administrative support for the Governor's Broadband
78.29Task Force;
78.30(12) provide an annual report, as required by subdivision 5;
78.31(13) coordinate an ongoing collaborative effort of stakeholders to evaluate and
78.32address security, vulnerability, and redundancy issues in order to ensure the reliability of
78.33broadband networks; and
78.34(14) perform any other activities consistent with the office's purpose.
79.1(b) In carrying out its duties under this subdivision, the Office of Broadband
79.2Development shall have no authority to regulate or compel action on the part of any
79.3provider of broadband service.
79.4    Subd. 5. Reporting. (a) Beginning January 15, 2014, and each year thereafter,
79.5the Office of Broadband Development shall report to the legislative committees with
79.6jurisdiction over broadband policy and finance on the office's activities during the previous
79.7year.
79.8(b) The report shall contain, at a minimum:
79.9(1) an analysis of the current availability and use of broadband, including average
79.10broadband speeds, within the state;
79.11(2) information gathered from schools, libraries, hospitals, and public safety facilities
79.12across the state, determining the actual speed and capacity of broadband currently in use
79.13and the need, if any, for increases in speed and capacity to meet current or anticipated needs;
79.14(3) an analysis of incumbent broadband infrastructure within the state and its ability
79.15to spur economic development;
79.16(4) an analysis of the degree to which new, additional, or improved broadband
79.17infrastructure would spur economic development in the state;
79.18(5) a summary of the office's activities in coordinating broadband infrastructure
79.19development under section 116J.999;
79.20(6) suggested policies, incentives, and legislation designed to accelerate the
79.21achievement of the goals under section 237.012, subdivisions 1 and 2;
79.22(7) any proposed legislative and policy initiatives; and
79.23(8) any other information requested by the legislative committees with jurisdiction
79.24over broadband policy and finance, or that the office deems necessary.
79.25(c) The report may be submitted electronically and is subject to section 3.195,
79.26subdivision 1.
79.27EFFECTIVE DATE.This section is effective the day following final enactment.

79.28    Sec. 14. [116J.999] COORDINATION OF BROADBAND INFRASTRUCTURE
79.29DEVELOPMENT.
79.30    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
79.31have the meanings given them.
79.32(b) "Broadband" or "broadband service" has the meaning given in section 116J.998,
79.33subdivision 1, paragraph (b).
79.34(c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct for fiber
79.35optic or other cables that support broadband and wireless facilities for broadband service.
80.1(d) "Local unit of government" has the meaning given in section 116G.03,
80.2subdivision 3.
80.3(e) "Office" means the Office of Broadband Development established in section
80.4116J.998.
80.5    Subd. 2. Broadband infrastructure development. (a) The office shall, in
80.6collaboration with the Department of Transportation and private entities, encourage and
80.7coordinate "dig once" efforts for the planning, relocation, installation, or improvement of
80.8broadband conduit within the right-of-way in conjunction with any current or planned
80.9construction, including, but not limited to, trunk highways and bridges. To the extent
80.10necessary, the office shall, in collaboration with the Department of Transportation,
80.11evaluate engineering and design standards, procedures and criteria for contracts or lease
80.12agreements with private entities, and pricing requirements, and provide for allocation
80.13of risk, costs, and any revenue generated.
80.14(b) The office shall, in collaboration with other state departments and agencies as the
80.15office deems necessary, develop a strategy to facilitate the timely and efficient deployment
80.16of broadband conduit or other broadband facilities on state-owned lands and buildings.
80.17(c) To the extent practicable, the office shall encourage and assist local units of
80.18government to adopt and implement policies similar to those under paragraphs (a) and (b)
80.19for construction or other improvements to county state-aid highways, municipal state-aid
80.20roads, and any other rights-of-way under the local unit of government's jurisdiction, and to
80.21other lands or buildings owned by the local unit of government.
80.22(d) Special consideration must be paid to projects under this subdivision that will
80.23likely improve access to broadband by rural or underserved communities.
80.24    Subd. 3. Reporting. As part of its annual report under section 116J.998, subdivision
80.255, the office shall report on activities taken under this section, including, but not limited to,
80.26the number of current and planned projects using the "dig once" approach, any gains in
80.27broadband speed or access associated with the project, and any costs or cost savings to
80.28the state, private entity, or end user of broadband services.
80.29    Subd. 4. No right of action. Nothing in this section shall be construed to create
80.30any right or benefit, substantive or procedural, enforceable at law or in equity by any
80.31party against the state of Minnesota; its departments, agencies, or entities; its officers,
80.32employees, or agents; or any other person.
80.33EFFECTIVE DATE.This section is effective the day following final enactment.

80.34    Sec. 15. [116L.191] WORKFORCE CENTER; CREDENTIAL ASSISTANCE.
81.1(a) The commissioner shall provide at local workforce centers services that
81.2assist individuals in identifying and obtaining industry-recognized credentials for jobs,
81.3particularly jobs in high demand. The workforce centers must consult and cooperate
81.4with training institutions, particularly postsecondary institutions, to identify credential
81.5programs to individuals.
81.6(b) Each workforce center shall provide information under section 116J.4011,
81.7paragraph (b), clause (3), linked as a shortcut from the desktop of each workforce center
81.8computer and available in hard copy. Prominent signs should be posted in workforce
81.9centers directing individuals to where they can find a list of top job vacancies and related
81.10credential information.

81.11    Sec. 16. Minnesota Statutes 2012, section 116U.26, is amended to read:
81.12116U.26 FILM PRODUCTION JOBS PROGRAM.
81.13    (a) The film production jobs program is created. The program shall be operated
81.14by the Minnesota Film and TV Board with administrative oversight and control by the
81.15commissioner of administration employment and economic development. The program
81.16shall make payment to producers of feature films, national television or Internet programs,
81.17documentaries, music videos, and commercials that directly create new film jobs in
81.18Minnesota. To be eligible for a payment, a producer must submit documentation to the
81.19Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota
81.20that are directly attributable to the production in Minnesota of a film product.
81.21    The Minnesota Film and TV Board shall make recommendations to the
81.22commissioner of administration employment and economic development about program
81.23payment, but the commissioner has the authority to make the final determination on
81.24payments. The commissioner's determination must be based on proper documentation of
81.25eligible production costs submitted for payments. No more than five percent of the funds
81.26appropriated for the program in any year may be expended for administration, including
81.27costs for independent audits and financial reviews of projects.
81.28    (b) For the purposes of this section:
81.29    (1) "production costs" means the cost of the following:
81.30    (i) a story and scenario to be used for a film;
81.31    (ii) salaries of talent, management, and labor, including payments to personal
81.32services corporations for the services of a performing artist;
81.33    (iii) set construction and operations, wardrobe, accessories, and related services;
81.34    (iv) photography, sound synchronization, lighting, and related services;
81.35    (v) editing and related services;
82.1    (vi) rental of facilities and equipment; or
82.2    (vii) other direct costs of producing the film in accordance with generally accepted
82.3entertainment industry practice; and
82.4(viii) above-the-line talent fees for nonresident talent; or
82.5(ix) costs incurred during postproduction; and
82.6    (2) "film" means a feature film, television or Internet show, pilot, program, series,
82.7documentary, music video, or television commercial, whether on film, video, or digital
82.8media. Film does not include news, current events, public programming, or a program
82.9that includes weather or market reports; a talk show; a production with respect to a
82.10questionnaire or contest; a sports event or sports activity; a gala presentation or awards
82.11show; a finished production that solicits funds; or a production for which the production
82.12company is required under United States Code, title 18, section 2257, to maintain records
82.13with respect to a performer portrayed in a single-media or multimedia program.
82.14    (c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board
82.15may make reimbursements of: (1) up to 20 25 percent of film production costs for films that
82.16locate production outside the metropolitan area, as defined in section 473.121, subdivision
82.172, or that incur production costs in excess of $5,000,000 a minimum Minnesota expenditure
82.18of $1,000,000 in the metropolitan area within a 12-month period; or (2) up to 15 20
82.19percent of film production costs for films that incur less than $1,000,000 in Minnesota
82.20 production costs of $5,000,000 or less in the metropolitan area within a 12-month period.
82.21EFFECTIVE DATE.This section is effective the day following final enactment.

82.22    Sec. 17. Minnesota Statutes 2012, section 136F.37, is amended to read:
82.23136F.37 JOB PLACEMENT IMPACT ON PROGRAM REVIEW;
82.24INFORMATION TO STUDENTS.
82.25    Subdivision 1. Colleges; technical occupational program. The board must
82.26assess labor market data when conducting college program reviews. Colleges must
82.27provide prospective students with the job placement rate for graduates of technical and
82.28occupational programs offered at the colleges.
82.29    Subd. 2. DEED labor market survey; MnSCU usage and disclosure. The data
82.30assessed under subdivision 1 must include labor market data compiled by the Department
82.31of Employment and Economic Development under section 116J.4011. The board and its
82.32colleges and universities must use this market data when deciding upon course and program
82.33offerings. The board must provide a link to this labor market data on its Internet portal.
82.34EFFECTIVE DATE.This section is effective the day following final enactment.

83.1    Sec. 18. [161.462] FIBER COLLABORATION DATABASE.
83.2    Subdivision 1. Purpose. The purpose of the fiber collaboration database is
83.3to provide broadband providers with advance notice of upcoming Department of
83.4Transportation construction projects so that they may notify the department of their
83.5interest in installing broadband infrastructure within the right-of-way during construction
83.6in order to minimize installation costs.
83.7    Subd. 2. Database. (a) The Department of Transportation shall post on its Web site,
83.8and update annually, the list of upcoming construction projects contained in its statewide
83.9transportation improvement program, including, for each project:
83.10(1) the geographical location where construction will occur;
83.11(2) the estimated start and end dates of construction; and
83.12(3) a description of the nature of the construction project.
83.13(b) The commissioner shall post the information required in paragraph (a) as far in
83.14advance of the beginning of construction as is feasible.
83.15(c) The department's Web site must allow a provider of broadband service to register
83.16to receive from the department electronic information on proposed construction projects
83.17added to the database in specific geographical areas of the state as soon as it is updated.
83.18EFFECTIVE DATE.This section is effective the day following final enactment.

83.19    Sec. 19. Minnesota Statutes 2012, section 245.4712, subdivision 1, is amended to read:
83.20    Subdivision 1. Availability of community support services. (a) County boards
83.21must provide or contract for sufficient community support services within the county to
83.22meet the needs of adults with serious and persistent mental illness who are residents of the
83.23county. Adults may be required to pay a fee according to section 245.481. The community
83.24support services program must be designed to improve the ability of adults with serious
83.25and persistent mental illness to:
83.26    (1) work in a regular or supported work environment find and maintain competitive
83.27employment;
83.28    (2) handle basic activities of daily living;
83.29    (3) participate in leisure time activities;
83.30    (4) set goals and plans; and
83.31    (5) obtain and maintain appropriate living arrangements.
83.32    The community support services program must also be designed to reduce the
83.33need for and use of more intensive, costly, or restrictive placements both in number of
83.34admissions and length of stay.
84.1    (b) Community support services are those services that are supportive in nature and
84.2not necessarily treatment oriented, and include:
84.3    (1) conducting outreach activities such as home visits, health and wellness checks,
84.4and problem solving;
84.5    (2) connecting people to resources to meet their basic needs;
84.6    (3) finding, securing, and supporting people in their housing;
84.7    (4) attaining and maintaining health insurance benefits;
84.8    (5) assisting with job applications, finding and maintaining employment, and
84.9securing a stable financial situation;
84.10    (6) fostering social support, including support groups, mentoring, peer support, and
84.11other efforts to prevent isolation and promote recovery; and
84.12    (7) educating about mental illness, treatment, and recovery.
84.13    (c) Community support services shall use all available funding streams. The county
84.14shall maintain the level of expenditures for this program, as required under section
84.15245.4835 . County boards must continue to provide funds for those services not covered
84.16by other funding streams and to maintain an infrastructure to carry out these services. The
84.17county is encouraged to fund evidence-based practices such as Individual Placement and
84.18Supported Employment and Illness Management and Recovery.
84.19    (d) The commissioner shall collect data on community support services programs,
84.20including, but not limited to, demographic information such as age, sex, race, the number
84.21of people served, and information related to housing, employment, hospitalization,
84.22symptoms, and satisfaction with services.

84.23    Sec. 20. Minnesota Statutes 2012, section 268A.13, is amended to read:
84.24268A.13 EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH
84.25MENTAL ILLNESS.
84.26The commissioner of employment and economic development, in cooperation
84.27with the commissioner of human services, shall develop a statewide program of grants
84.28as outlined in section 268A.14 to provide services for persons with mental illness who
84.29want to work in supported employment. Projects funded under this section must: (1)
84.30assist persons with mental illness in obtaining and retaining competitive employment; (2)
84.31emphasize individual community placements for clients client preferences; (3) ensure
84.32interagency collaboration at the local level between vocational rehabilitation field offices,
84.33county service agencies, community support programs operating under the authority of
84.34section 245.4712, and community rehabilitation providers, in assisting clients; (4) ensure
84.35services are integrated with mental health treatment; (5) provide benefits counseling;
85.1(6) conduct rapid job search; and (4) (7) involve clients in the planning, development,
85.2oversight, and delivery of support services. Project funds may not be used to provide
85.3services in segregated settings such as the center-based employment subprograms as
85.4defined in section 268A.01.
85.5The commissioner of employment and economic development, in consultation
85.6with the commissioner of human services, shall develop a request for proposals which is
85.7consistent with the requirements of this section and section 268A.14 and which specifies
85.8the types of services that must be provided by grantees. Priority for funding shall be given
85.9to organizations with experience in developing innovative employment support services
85.10for persons with mental illness carrying out evidence-based practices. Each applicant for
85.11funds under this section shall submit an evaluation protocol as part of the grant application.

85.12    Sec. 21. Minnesota Statutes 2012, section 268A.14, subdivision 1, is amended to read:
85.13    Subdivision 1. Employment support services and programs. The commissioner
85.14of employment and economic development, in cooperation with the commissioner of
85.15human services, shall operate a statewide system to reimburse providers for employment
85.16support services for persons with mental illness. The system shall be operated to support
85.17employment programs and services where:
85.18(1) services provided are readily accessible to all persons with mental illness who
85.19want to work, including rapid competitive job search, so they can make progress toward
85.20economic self-sufficiency;
85.21(2) services provided are made an integral part of all mental health treatment and
85.22rehabilitation programs for persons with mental illness to ensure that they have the ability
85.23and opportunity to consider a variety of work options;
85.24(3) programs help persons with mental illness form long-range plans for employment
85.25that fit their skills and abilities by ensuring that ongoing time-unlimited support, crisis
85.26management, placement, and career planning services are available;
85.27(4) services provided give persons with mental illness the information needed
85.28to make informed choices about employment expectations and options, including
85.29information on the types of employment available in the local community, the types of
85.30employment services available, the impact of employment on eligibility for governmental
85.31benefits, and career options;
85.32(5) programs assess whether persons with mental illness being serviced are satisfied
85.33with the services and outcomes. Satisfaction assessments shall address at least whether
85.34persons like their jobs, whether quality of life is improved, whether potential for
85.35advancement exists, and whether there are adequate support services in place;
86.1(6) programs encourage persons with mental illness being served to be involved in
86.2employment support services issues by allowing them to participate in the development of
86.3individual rehabilitation plans and to serve on boards, committees, task forces, and review
86.4bodies that shape employment services policies and that award grants, and by encouraging
86.5and helping them to establish and participate in self-help and consumer advocacy groups;
86.6(7) programs encourage employers to expand employment opportunities for
86.7persons with mental illness and, to maximize the hiring of persons with mental illness,
86.8educate employers about the needs and abilities of persons with mental illness and the
86.9requirements of the Americans with Disabilities Act;
86.10(8) programs encourage persons with mental illness, vocational rehabilitation
86.11professionals, and mental health professionals to learn more about current work incentive
86.12provisions in governmental benefits programs;
86.13(9) programs establish and maintain linkages with a wide range of other programs
86.14and services, including educational programs, housing programs, economic assistance
86.15services, community support services, and clinical services to ensure that persons with
86.16mental illness can obtain and maintain employment;
86.17(10) programs participate in ongoing training across agencies and service delivery
86.18systems so that providers in human services systems understand their respective roles,
86.19rules, and responsibilities and understand the options that exist for providing employment
86.20and community support services to persons with mental illness; and
86.21(11) programs work with local communities to expand system capacity to provide
86.22access to employment services to all persons with mental illness who want them.

86.23    Sec. 22. [383D.412] DAKOTA COUNTY COMMUNITY DEVELOPMENT
86.24AGENCY; MINNESOTA INVESTMENT FUND.
86.25    Subdivision 1. Treatment. As long as the conditions set forth in subdivision 2 are met
86.26and notwithstanding the provisions of section 116J.8731, the Dakota County Community
86.27Development Agency will be treated as if it were a general purpose local governmental unit
86.28and may apply for and receive state-funded money from the Minnesota investment fund.
86.29    Subd. 2. Conditions precedent. Conditions precedent to the treatment of the
86.30Dakota County Community Development Agency as a general purpose local governmental
86.31unit as described in subdivision 1 are:
86.32(a) the board of commissioners of Dakota County shall have adopted a resolution
86.33approving such treatment of the Dakota County Community Development Agency, and
86.34such resolution shall be in full force and effect and shall not have been revoked by
86.35Dakota County; and
87.1(b) the members of the board of commissioners of Dakota County shall be the same
87.2persons as the members of the board of commissioners of the Dakota County Community
87.3Development Agency.

87.4    Sec. 23. EMPLOYMENT SUPPORT AND INDEPENDENT LIVING SERVICES
87.5FOR INDIVIDUALS WITH HIGH-FUNCTIONING AUTISM, ASPERGER'S
87.6SYNDROME, NONVERBAL LEARNING DISORDERS, AND PERVASIVE
87.7DEVELOPMENT DISORDER, NOT OTHERWISE SPECIFIED; PILOT
87.8PROGRAM.
87.9    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
87.10have the meanings given them.
87.11(b) "Communication" means the ability to effectively give and receive information
87.12through spoken words, writing, speaking, listening, or other means of communication,
87.13including but not limited to nonverbal expressions, gestures, or other adaptive methods.
87.14(c) "Functional areas" means communication, interpersonal skills, mobility, self-care,
87.15self-direction, preemployment skills, work tolerance, and independent living skills.
87.16(d) "Independent living assessment" means an active, performance-based skill
87.17assessment in the functional areas of communication, interpersonal skills, mobility,
87.18self-care, self-direction, preemployment skills, and independent living skills, that provides
87.19an analysis of the individual's ability to independently achieve certain skills and which
87.20is performed through direct observation.
87.21(e) "Interpersonal skills" means the ability to establish and maintain personal,
87.22family, work, and community relationships.
87.23(f) "Mobility" means the physical and psychological ability to move about from
87.24place to place, including travel to and from destinations in the community for activities
87.25of daily living, training, or work.
87.26(g) "Natural supports" means the process of assisting an employer to expand its
87.27capacity for training, supervising, and supporting workers with disabilities.
87.28(h) "Ongoing employment support services" means any of the following services:
87.29(1) facilitation of natural supports at the work site;
87.30(2) disability awareness training for the worker, the worker's employer, supervisor,
87.31or coworkers;
87.32(3) services necessary to increase the worker's inclusion at the work site;
87.33(4) job skills training at the work site;
87.34(5) regular observation or supervision of the worker;
87.35(6) coordination of support services;
88.1(7) job-related safety training;
88.2(8) job-related advocacy skills training to advance employment;
88.3(9) training in independent living skills and support including self-advocacy, money
88.4management and organization, grooming and personal care, communication, interpersonal
88.5skills, problem solving, orientation and mobility, and using public transportation or
88.6driver's training;
88.7(10) follow-up services necessary to reinforce and stabilize employment, including
88.8regular contact with the worker's employer, supervisor or coworkers, parents, family
88.9members, advocates, legal representatives, other suitable professionals, and informed
88.10advisors;
88.11(11) training in job seeking skills; and
88.12(12) internships or career planning to assist the individual's advancement in
88.13meaningful employment.
88.14(i) "Preemployment skills" means the abilities and skills to successfully apply for,
88.15secure, and maintain competitive employment.
88.16(j) "Self-care" means skills needed to manage one's self or living environment,
88.17including but not limited to money management, personal health care, personal hygiene,
88.18and safety needs, including medication management.
88.19(k) "Self-direction" means the ability to plan, initiate, organize, or carry out
88.20goal-directed activities or solve problems related to self-care, socialization, recreation, and
88.21working independently.
88.22(l) "Severe impairment to employment" means limitations experienced by persons
88.23diagnosed with high-functioning autism, Asperger's syndrome, nonverbal learning
88.24disorders, or pervasive development disorder, not otherwise specified, due to an extended
88.25history of unemployment or underemployment; limited education, training, or job skills;
88.26and physical, intellectual, or emotional characteristics that seriously impair the individual's
88.27ability to obtain and retain permanent employment.
88.28(m) "Work tolerance" means the ability to effectively and efficiently perform jobs
88.29with various levels of sensory and environmental components including scent, noise,
88.30visual stimuli, physical space, and psychological demands.
88.31    Subd. 2. Employment support plan and outcomes. An individual participating in
88.32the program under this section must develop an employment support plan that includes:
88.33(1) employment goals;
88.34(2) ongoing support services;
88.35(3) program outcomes that focus on competitive employment in the community; and
89.1(4) ongoing independent living services and employment supports necessary for the
89.2individual to secure, maintain, and advance in employment that best fits the individual's
89.3strengths and career goals.

89.4    Sec. 24. CUSTOMIZED TRAINING PILOT PROGRAM FOR SKILLED
89.5MANUFACTURING INDUSTRIES.
89.6    Subdivision 1. Program. The commissioner of employment and economic
89.7development in consultation with the commissioner of labor and industry shall collaborate
89.8with Minnesota State Colleges and Universities (MnSCU) institutions and employers,
89.9to develop a customized training program for skilled manufacturing industries that
89.10integrates academic instruction and job-related learning in the workplace and MnSCU
89.11institutions. The commissioner shall actively recruit participants in a customized training
89.12program for skilled manufacturing industries from the following groups: secondary and
89.13postsecondary school systems; individuals with disabilities; dislocated workers; retired
89.14and disabled veterans; individuals enrolled in MFIP under Minnesota Statutes, chapter
89.15256J; minorities; previously incarcerated individuals; individuals residing in labor surplus
89.16areas as defined by the United States Department of Labor; and any other disadvantaged
89.17group as determined by the commissioner.
89.18    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
89.19subdivision have the meanings given them.
89.20(b) "Commissioner" means the commissioner of employment and economic
89.21development.
89.22(c) "Employer" means a skilled manufacturing industry employer within the state
89.23who enters into the agreements with MnSCU institutions and the commissioner under
89.24subdivisions 3 to 5.
89.25(d) "MnSCU institution" means Alexandria Technical and Community College,
89.26Century College, Hennepin Technical College, and Central Lakes College.
89.27(e) "Participant" means an employee who enters into a customized training program
89.28for skilled manufacturing industries participation agreement under subdivision 4.
89.29(f) "Related instruction" means classroom instruction or technical or vocational
89.30training required to perform the duties of the skilled manufacturing job.
89.31(g) "Skilled manufacturing" means occupations in manufacturing industry sectors 31
89.32to 33 as defined by the North American Industry Classification System (NAICS).
89.33    Subd. 3. Skilled manufacturing customized training program employer
89.34agreement. (a) The commissioner, employer, and MnSCU institution shall enter into a
90.1skilled manufacturing customized training program employer agreement that is specific to
90.2the identified skilled manufacturing training needs of an employer.
90.3(b) The agreement must contain the following:
90.4(1) the name of the employer;
90.5(2) a statement showing the number of hours to be spent by a participant in work and
90.6the number of hours to be spent, if any, in concurrent, supplementary instruction in related
90.7subjects. The maximum number of hours of work per week, not including time spent in
90.8related instruction, for any participant shall not exceed either the number prescribed by
90.9law or the customary regular number of hours per week for the employees of the employer.
90.10A participant may be allowed to work overtime provided that the overtime work does not
90.11conflict with supplementary instruction course attendance. All time spent by the participant
90.12in excess of the number of hours of work per week as specified in the skilled manufacturing
90.13customized training program participation agreement shall be considered overtime;
90.14(3) the hourly wage to be paid to the participant and requirements for reporting to
90.15the commissioner on actual wages paid to the participant;
90.16(4) an explanation of how the employer agreement or participant agreement may
90.17be terminated;
90.18(5) a statement setting forth a schedule of the processes in the occupation in which
90.19the participant is to be trained and the approximate time to be spent at each process;
90.20(6) a statement by the MnSCU institution and the employer describing the related
90.21instruction that will be offered, if any, under subdivision 5, paragraph (c); and
90.22(7) any other provision the commissioner deems necessary to carry out the purposes
90.23of this section.
90.24(c) The commissioner may periodically review the adherence to the terms of the
90.25customized training program employer agreement. If the commissioner determines that
90.26an employer or employee has failed to comply with the terms of the agreement, the
90.27commissioner shall terminate the agreement. An employer must report to the commissioner
90.28any change in status for the participant within 30 days of the change in status.
90.29    Subd. 4. Skilled manufacturing customized training program participation
90.30agreement. (a) The commissioner, the prospective participant, and the employer shall
90.31enter into a skilled manufacturing customized training program participation agreement
90.32that is specific to the training to be provided to the participant.
90.33(b) The participation agreement must contain the following:
90.34(1) the name of the employer;
90.35(2) the name of the participant;
91.1(3) a statement setting forth a schedule of the processes of the occupation in which
91.2the participant is to be trained and the approximate time to be spent at each process;
91.3(4) a description of any related instruction;
91.4(5) a statement showing the number of hours to be spent by a participant in work and
91.5the number of hours to be spent, if any, in concurrent, supplementary instruction in related
91.6subjects. The maximum number of hours of work per week, not including time spent in
91.7related instruction, for any participant shall not exceed either the number prescribed
91.8by law or the customary regular number of hours per week for the employees of the
91.9employer. A participant may be allowed to work overtime provided that the overtime
91.10work does not conflict with supplementary instruction course attendance. All time spent
91.11by the participant in excess of the number of hours of work per week as specified in the
91.12customized training program participation agreement shall be considered overtime;
91.13(6) the hourly wage to be paid to the participant; and
91.14(7) an explanation of how the parties may terminate the participation agreement.
91.15(c) The commissioner may periodically review the adherence to the terms of the
91.16customized training program participation agreement. If the commissioner determines
91.17that an employer or participant has failed to comply with the terms of the agreement, the
91.18commissioner shall terminate the agreement. An employer must report to the commissioner
91.19any change in status for the participant within 30 days of the change in status.
91.20    Subd. 5. MnSCU instruction. (a) MnSCU institutions shall collaborate with
91.21an employer to provide related instruction which the employer deems necessary to
91.22instruct participants of a skilled manufacturing customized training program. The related
91.23instruction provided must be, for the purposes of this section, career-level, as negotiated
91.24by the commissioner and the MnSCU institution. The related instruction may be for credit
91.25or noncredit, and credit earned may be transferable to a degree program, as determined by
91.26the MnSCU institution.
91.27(b) The commissioner, in conjunction with the MnSCU institution, shall issue a
91.28certificate of completion to a participant who completes all required components of the
91.29skilled manufacturing customized training program participation agreement.
91.30(c) As part of the skilled manufacturing customized training program, an employer
91.31shall collaborate with a MnSCU institution for any related instruction required to perform
91.32the skilled manufacturing job. The agreement shall include:
91.33(1) a detailed explanation of the related instruction; and
91.34(2) the number of hours of related instruction needed to receive a certificate of
91.35completion.

92.1    Sec. 25. SKILLED MANUFACTURING REPORTS.
92.2(a) The commissioner of employment and economic development shall study the
92.3training needs of skilled manufacturing industry employers in the state and report study
92.4findings and recommendations to the standing committees of the house of representatives
92.5and the senate having jurisdiction over employment and workforce development by
92.6March 1, 2014.
92.7(b) The commissioner of employment and economic development shall coordinate
92.8and monitor customized training programs for skilled manufacturing industries at Century
92.9College, Alexandria Technical and Community College, Hennepin Technical College, and
92.10Central Lakes College. By January 15, 2015, the commissioner, in conjunction with
92.11each MnSCU institution listed in this section, shall report to the standing committees
92.12of the house of representatives and the senate having jurisdiction over employment
92.13and workforce development. The report must address the progress and success of the
92.14implementation of a customized training program for skilled manufacturing industries
92.15at each MnSCU institution. The report must give recommendations on where a skilled
92.16manufacturing customized training program should next be implemented, taking into
92.17consideration all current and potential skilled manufacturing training providers available.

92.18    Sec. 26. STATE BROADBAND STRATEGY; REPORT.
92.19The Office of Broadband Development shall conduct research and produce a report
92.20recommending a set of programs and strategies the state can pursue to promote the
92.21improvement, more efficient and effective use, and expansion of broadband services in
92.22ways that will have the greatest impact on the state's economic development, by which is
92.23meant enhancing the ability of Minnesota citizens and businesses to develop their skills,
92.24to expand businesses to new markets, develop new products, reach more customers, and
92.25lower costs. While the state's broadband goals in Minnesota Statutes, section 237.012,
92.26address the universal provision of greater broadband access and speed statewide, this report
92.27must consider broadband as an economic development tool and must examine and analyze:
92.28(1) how the state can best use its limited resources to adopt strategies and make
92.29investments to improve the use of broadband services by subgroups of broadband users,
92.30including mobile broadband users, that promise to deliver the greatest economic impact
92.31per dollar of state investment;
92.32(2) roles the state can play in addition to financial assistance for broadband
92.33infrastructure, including supporting education and training for Minnesotans to enable
92.34them to use broadband more effectively; and
93.1(3) strategies and opportunities for state investment to leverage additional amounts
93.2of private capital and financial assistance from the federal government in order to achieve
93.3these goals.
93.4By January 15, 2014, the office shall submit the report to the chairs and ranking minority
93.5members of the senate and house of representatives committees with jurisdiction over
93.6broadband issues.
93.7EFFECTIVE DATE.This section is effective the day following final enactment.

93.8    Sec. 27. PILOT PROGRAMS; COMBINING CAREER AND HIGHER
93.9EDUCATION ADVISING.
93.10The workforce council in each of the workforce service areas of Hennepin/Carver,
93.11Northeast Minnesota, Stearns/Benton, and rural Minnesota CEP must with at least one
93.12public school district in its service area, cooperate in operating a program to assist high
93.13school students in selecting careers of interest to a student and a postsecondary path to
93.14prepare for that career. The local workforce council shall individually advise a student on
93.15jobs in high demand in areas of interest to a student. Advising must include information
93.16on various career paths and associated jobs, the salary profile of those jobs, and the
93.17credentials and other training desired by employers for those jobs. A district may assist
93.18the local workforce council by, among other activities:
93.19(1) describing to the local workforce council what kind of vocational exploration the
93.20student already received;
93.21(2) identifying opportunities for the council to assist students by providing office
93.22space at school to meet with students, access to assemblies and other groups for testing
93.23and career exploration, access to teachers through in-service and in other manners, to
93.24support students to use a pilot program; and
93.25(3) working with students after testing and advising by the local workforce council.

93.26    Sec. 28. REPEALER.
93.27Minnesota Statutes 2012, section 237.012, subdivision 3, is repealed.

93.28ARTICLE 4
93.29UNEMPLOYMENT INSURANCE

93.30    Section 1. Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:
93.31    Subd. 4. Use of funds. Funds granted by the board under this section may be used
93.32for any combination of the following, except as otherwise provided in this section:
94.1    (1) employment transition services such as developing readjustment plans for
94.2individuals; outreach and intake; early readjustment; job or career counseling; testing;
94.3orientation; assessment of skills and aptitudes; provision of occupational and labor market
94.4information; job placement assistance; job search; job development; prelayoff assistance;
94.5relocation assistance; and programs provided in cooperation with employers or labor
94.6organizations to provide early intervention in the event of plant closings or substantial
94.7layoffs; and entrepreneurial training and business consulting;
94.8    (2) support services, including assistance to help the participant relocate to employ
94.9existing skills; out-of-area job search assistance; family care assistance, including child
94.10care; commuting assistance; emergency housing and rental assistance; counseling
94.11assistance, including personal and financial; health care; emergency health assistance;
94.12emergency financial assistance; work-related tools and clothing; and other appropriate
94.13support services that enable a person to participate in an employment and training program
94.14with the goal of reemployment;
94.15    (3) specific, short-term training to help the participant enhance current skills
94.16in a similar occupation or industry; entrepreneurial training, customized training, or
94.17on-the-job training; basic and remedial education to enhance current skills; and literacy
94.18and work-related English training for non-English speakers; and
94.19    (4) long-term training in a new occupation or industry, including occupational skills
94.20training or customized training in an accredited program recognized by one or more
94.21relevant industries. Long-term training shall only be provided to dislocated workers
94.22whose skills are obsolete and who have no other transferable skills likely to result in
94.23employment at a comparable wage rate. Training shall only be provided for occupations or
94.24industries with reasonable expectations of job availability based on the service provider's
94.25thorough assessment of local labor market information where the individual currently
94.26resides or is willing to relocate. This clause shall not restrict training in personal services
94.27or other such industries.

94.28    Sec. 2. Minnesota Statutes 2012, section 116L.17, is amended by adding a subdivision
94.29to read:
94.30    Subd. 11. Converting layoffs into Minnesota businesses (CLIMB). Converting
94.31layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in
94.32starting or growing a business. CLIMB must offer entrepreneurial training, business
94.33consulting, and technical assistance to dislocated workers seeking to start or grow a
94.34business. The commissioner, in cooperation with local workforce councils, must provide
94.35the assistance in this subdivision by:
95.1(1) encouraging closer ties between the Small Business Development Center
95.2network, Small Business Development Center training providers, and workforce centers,
95.3as well as other dislocated worker program service providers; and
95.4(2) eliminating grantee performance data disincentives that would otherwise prevent
95.5enrollment of dislocated workers in entrepreneurship-related training.

95.6    Sec. 3. Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:
95.7    Subd. 5. Tax rate for new employers. (a) Each new taxpaying employer that does
95.8not qualify for an experience rating under subdivision 3, except new employers in a high
95.9experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
95.10(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
95.11the total amount of unemployment benefits paid all applicants during the 48 calendar
95.12months ending on June 30 of the prior calendar year by the total taxable wages of all
95.13taxpaying employers during the same period, plus the applicable base tax rate and any
95.14additional assessments under subdivision 2, paragraph (c).
95.15    (b) Each new taxpaying employer in a high experience rating industry that does not
95.16qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
95.17a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
95.18to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
95.19paid to all applicants from high experience rating industry employers during the 48
95.20calendar months ending on June 30 of the prior calendar year by the total taxable wages
95.21of all high experience rating industry employers during the same period, to a maximum
95.22provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
95.23additional assessments under subdivision 2, paragraph (c).
95.24    (c) An employer is considered to be in a high experience rating industry if:
95.25    (1) the employer is engaged in residential, commercial, or industrial construction,
95.26including general contractors;
95.27    (2) the employer is engaged in sand, gravel, or limestone mining;
95.28    (3) the employer is engaged in the manufacturing of concrete, concrete products,
95.29or asphalt; or
95.30    (4) the employer is engaged in road building, repair, or resurfacing, including bridge
95.31and tunnels and residential and commercial driveways and parking lots.
95.32(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a
95.33tax rate under this subdivision if:
95.34(1) the employer registers for a tax account under section 268.042 and for each of
95.35the five calendar quarters after registering files a "no wages paid" report on wage detail
96.1under section 268.044; or had no taxable wages during the experience rating period under
96.2subdivision 3.
96.3(2) the employer has filed 14 consecutive quarterly "no wages paid" reports on
96.4wage detail under section 268.044.
96.5    (e) The commissioner must send to the new employer, by mail or electronic
96.6transmission, a determination of tax rate. An employer may appeal the determination of
96.7tax rate in accordance with the procedures in subdivision 6, paragraph (c).
96.8EFFECTIVE DATE.This section is effective the day following final enactment.

96.9    Sec. 4. Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:
96.10    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
96.11unemployment benefits is effective the Sunday of the calendar week that the application
96.12was filed. An application for unemployment benefits may be backdated one calendar week
96.13before the Sunday of the week the application was actually filed if the applicant requests
96.14the backdating at the time the application is filed. An application may be backdated only if
96.15the applicant had no employment was unemployed during the period of the backdating.
96.16If an individual attempted to file an application for unemployment benefits, but was
96.17prevented from filing an application by the department, the application is effective the
96.18Sunday of the calendar week the individual first attempted to file an application.
96.19    (b) A benefit account established under subdivision 2 is effective the date the
96.20application for unemployment benefits was effective.
96.21    (c) A benefit account, once established, may later be withdrawn only if:
96.22    (1) the applicant has not been paid any unemployment benefits on that benefit
96.23account; and
96.24(2) a new application for unemployment benefits is filed and a new benefit account is
96.25established at the time of the withdrawal.
96.26    A determination or amended determination of eligibility or ineligibility issued under
96.27section 268.101, that was sent before the withdrawal of the benefit account, remains in
96.28effect and is not voided by the withdrawal of the benefit account.
96.29    (d) An application for unemployment benefits is not allowed before the Sunday
96.30following the expiration of the benefit year on a prior benefit account. Except as allowed
96.31under paragraph (c), an applicant may establish only one benefit account each 52 calendar
96.32weeks.

96.33    Sec. 5. Minnesota Statutes 2012, section 268.125, subdivision 1, is amended to read:
97.1    Subdivision 1. Additional unemployment benefits; when available. Additional
97.2unemployment benefits are available if:
97.3    (1) MS 2008 [Expired, 2008 c 300 s 15]
97.4    (2)(i) at a facility that had 100 or more employees, the employer reduced operations,
97.5resulting within a one-month period in the layoff of 50 percent or more of the facility's
97.6work force, including reductions caused as a result of a major natural disaster declared by
97.7the president;
97.8    (ii) the employer has no expressed plan to resume operations that would lead to the
97.9reemployment of those employees in the immediate future; and
97.10    (iii) the seasonally adjusted unemployment rate in the county that the facility is
97.11located was ten percent or more during the month of the reduction or any of the three
97.12months before or after the month of the reduction; or
97.13    (3) the applicant stopped working because of a lockout. The term "lockout" has the
97.14meaning given in section 179.01, subdivision 9. This clause does not apply to professional
97.15athletes who are locked out by a professional sports team.
97.16EFFECTIVE DATE.This section is effective the day following final enactment.

97.17    Sec. 6. Minnesota Statutes 2012, section 268.125, subdivision 3, is amended to read:
97.18    Subd. 3. Eligibility conditions. (a) An applicant is eligible to receive additional
97.19unemployment benefits for any week during the applicant's benefit year if:
97.20    (1) for any week during which benefits are available under subdivision 1, clause (1):
97.21    (i) the applicant resides in a county that meets the requirements of subdivision 1,
97.22clause (1), and resided in that county each week that regular unemployment benefits
97.23were paid;
97.24    (ii) the applicant was not paid unemployment benefits for any week in the 12 months
97.25before the effective date of the applicant's benefit account;
97.26    (iii) the applicant meets the same eligibility requirements that are required for
97.27regular unemployment benefits under section 268.069; and
97.28    (iv) MS 2008 [Expired, 2008 c 300 s 17]
97.29    (2) (1) the applicant was laid off from employment as a result of a reduction under
97.30subdivision 1, clause (2), or was laid off because of lack of work from that employer
97.31during the three-month period before, or the three-month period after, the month of the
97.32reduction under subdivision 1, clause (2);
97.33    (3) (2) the applicant meets the same eligibility requirements that are required for
97.34regular unemployment benefits under section 268.069;
98.1    (4) (3) the applicant has exhausted regular unemployment benefits under section
98.2268.07 , is not entitled to receive extended unemployment benefits under section 268.115,
98.3and is not entitled to receive unemployment benefits under any other state or federal law
98.4for that week; and
98.5    (5) (4) a majority of the applicant's wage credits were from the employer that had a
98.6reduction in operations under subdivision 1, clause (2).
98.7(b) An applicant who stopped working because of a lockout is eligible to receive
98.8additional unemployment benefits for any week if:
98.9(1) the applicant meets the eligibility requirements under section 268.069;
98.10(2) the applicant has exhausted regular unemployment benefits under section 268.07
98.11or the law of another state;
98.12(3) the applicant is not eligible for extended unemployment benefits or
98.13unemployment benefits under any federal law; and
98.14(4) the lockout is in active progress.
98.15Section 268.085, subdivision 1, clause (2), does not apply to this paragraph.
98.16EFFECTIVE DATE.This section is effective the day following final enactment.

98.17    Sec. 7. Minnesota Statutes 2012, section 268.125, subdivision 4, is amended to read:
98.18    Subd. 4. Weekly unemployment benefit amount. An applicant's weekly additional
98.19unemployment benefit amount is the same as the applicant's weekly regular unemployment
98.20benefit amount during the current benefit year under section 268.07.
98.21EFFECTIVE DATE.This section is effective the day following final enactment.

98.22    Sec. 8. Minnesota Statutes 2012, section 268.125, subdivision 5, is amended to read:
98.23    Subd. 5. Maximum amount of unemployment benefits. (a) For an applicant
98.24who qualifies for additional unemployment benefits under subdivision 1, clause (2), the
98.25maximum amount of additional unemployment benefits available in the applicant's benefit
98.26year is one-half of the applicant's maximum amount of regular unemployment benefits
98.27available under section 268.07, subdivision 2. Extended unemployment benefits paid and
98.28unemployment benefits paid under any federal law other than regular unemployment
98.29benefits must be deducted from the maximum amount of additional unemployment
98.30benefits available.
98.31(b) For an applicant who qualifies for additional unemployment benefits under
98.32subdivision 1, clause (3), the applicant may receive additional unemployment benefits for
98.33up to 26 weeks so long as the lockout is in active progress.
99.1EFFECTIVE DATE.This section is effective the day following final enactment.

99.2    Sec. 9. [268.133] UNEMPLOYMENT BENEFITS WHILE IN
99.3ENTREPRENEURIAL TRAINING.
99.4Unemployment benefits are available to dislocated workers participating in the
99.5converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17,
99.6subdivision 11. Applicants participating in CLIMB are considered in reemployment
99.7assistance training under section 268.035, subdivision 21c. All requirements under section
99.8268.069, subdivision 1, must be met, except the commissioner may waive:
99.9(1) the deductible earnings provisions in section 268.085, subdivision 5; and
99.10(2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A
99.11maximum of 500 applicants may receive a waiver at any given time.

99.12    Sec. 10. Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:
99.13    Subdivision 1. Shared work agreement plan requirements. (a) An employer
99.14may submit a proposed shared work plan for an employee group to the commissioner
99.15for approval in a manner and format set by the commissioner. The proposed agreement
99.16 shared work plan must include:
99.17(1) a certified statement that the normal weekly hours of work of all of the proposed
99.18participating employees were full time or regular part time but are now reduced, or will be
99.19reduced, with a corresponding reduction in pay, in order to prevent layoffs;
99.20(2) the name and Social Security number of each participating employee;
99.21(3) the number of layoffs that would have occurred absent the employer's ability to
99.22participate in a shared work plan;
99.23(4) a certified statement of when that each participating employee was first hired by
99.24the employer, which must be at least one year before the proposed agreement shared work
99.25plan is submitted and is not a seasonal, temporary, or intermittent worker;
99.26(4) (5) the hours of work each participating employee will work each week for
99.27the duration of the agreement shared work plan, which must be at least 20 50 percent
99.28of the normal weekly hours and but no more than 32 hours per week 90 percent of the
99.29normal weekly hours, except that the agreement plan may provide for a uniform vacation
99.30shutdown of up to two weeks;
99.31(6) a certified statement that any health benefits and pension benefits provided by
99.32the employer to participating employees will continue to be provided under the same
99.33terms and conditions as though the participating employees' hours of work each week had
99.34not been reduced;
100.1(7) a certified statement that the terms and implementation of the shared work plan is
100.2consistent with the employer's obligations under state and federal law;
100.3(8) an acknowledgement that the employer understands that unemployment benefits
100.4paid under a shared work plan will be used in computing the future tax rate of a taxpaying
100.5employer or charged to the reimbursable account of a nonprofit or government employer;
100.6(5) (9) the proposed duration of the agreement shared work plan, which must be
100.7at least two months and not more than one year, although an agreement a plan may be
100.8extended for up to an additional year upon approval of the commissioner;
100.9(6) (10) a starting date beginning on a Sunday at least 15 calendar days after the date
100.10the proposed agreement shared work plan is submitted; and
100.11(7) (11) a signature of an owner or officer of the employer who is listed as an owner
100.12or officer on the employer's account under section 268.045.
100.13(b) An agreement may not be approved for an employer that:
100.14(1) has any unemployment tax or reimbursements, including any interest, fees,
100.15or penalties, due but unpaid; or
100.16(2) has the maximum experience rating provided for under section 268.051,
100.17subdivision 3.

100.18    Sec. 11. Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:
100.19    Subd. 2. Agreement Approval by commissioner. (a) The commissioner must
100.20promptly review a proposed agreement shared work plan and notify the employer, by mail
100.21or electronic transmission, within 15 days of receipt, whether the proposal satisfies the
100.22requirements of this section and has been approved. If the proposal does not comply
100.23with this section, the commissioner must specifically state why the proposal is not in
100.24compliance. If a proposed agreement complies with this section shared work plan has
100.25been approved, it must be implemented according to its terms.
100.26(b) The commissioner may reject an agreement not approve a proposed shared work
100.27plan if the commissioner has cause to believe the proposal is not was submitted for the a
100.28 purpose of other than preventing layoffs due to lack of work.
100.29(c) The commissioner may not approve a proposed shared work plan if the employer
100.30has any unemployment tax or reimbursements, including any interest, fees, or penalties,
100.31due but unpaid.
100.32(d) A shared work plan that has been approved by the commissioner is considered
100.33a contract that is binding on the employer and the department. This contract may be
100.34canceled or modified under subdivision 5.

101.1    Sec. 12. Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
101.2to read:
101.3    Subd. 2a. Notice to participating employee. The employer must provide written
101.4notification to each participating employee that the employer has submitted a proposed
101.5shared work plan. The notification must be provided to the employee no later than the
101.6time the commissioner notifies the employer that a proposed shared work plan has been
101.7approved. The notification must inform the employee of the proposed terms of the
101.8shared work plan along with notice to the employee of the employee's right to apply for
101.9unemployment benefits.

101.10    Sec. 13. Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:
101.11    Subd. 3. Applicant requirements. (a) An applicant, in order to be paid
101.12unemployment benefits under this section, must meet all of the requirements under section
101.13268.069, subdivision 1 . The following provisions of section 268.085 do not apply to an
101.14applicant under this section in an approved shared work plan:
101.15(1) the deductible earnings provision of section 268.085, under subdivision 5;
101.16(2) the restriction under section 268.085, subdivision 6 2, clause (6), if the applicant
101.17works exactly 32 hours in a week;
101.18(3) the requirement of being available for suitable employment under subdivision 1,
101.19clause (4), but only if the applicant is (i) available for the normal hours of work per week
101.20with the shared work employer, or (ii) is in a training program when not working; and
101.21(4) the requirement of actively seeking suitable employment under subdivision
101.221, clause (5).
101.23(b) An applicant is ineligible for unemployment benefits under this section for
101.24any week, if:
101.25(1) the applicant works more than 32 hours in a week in employment with one or
101.26more employer; or.
101.27(2) the applicant works more hours in a week for the shared work employer than
101.28the reduced weekly hours provided for in the agreement.

101.29    Sec. 14. Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:
101.30    Subd. 4. Amount of unemployment benefits available. (a) The weekly benefit
101.31amount and maximum amount of unemployment benefits available are computed
101.32according to section 268.07, except that an applicant is paid the amount of benefits
101.33available is a reduced amount in direct proportion to the reduction in hours set out in the
101.34shared work plan from the lesser of (1) 40 hours per week; or (2) the normal weekly hours.
102.1(b) Regardless of paragraph (a), if the applicant works more hours or less hours in a
102.2week for the shared work employer than provided for in the shared work plan, the amount
102.3of unemployment benefits available is in direct proportion to the reduction in hours
102.4actually worked from the lesser of (1) 40 hours per week; or (2) the normal weekly hours.

102.5    Sec. 15. Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:
102.6    Subd. 5. Cancellation; modification. (a) An employer may cancel an agreement a
102.7shared work plan at any time upon seven calendar days' notice to the commissioner in a
102.8manner and format prescribed by the commissioner. The cancellation must be signed by
102.9an owner or officer of the employer.
102.10(b) An employer may request that the commissioner allow modification of the shared
102.11work plan as to the hours of work each participating employee will work each week. The
102.12request must be sent in a manner and form prescribed by the commissioner. The request
102.13must be signed by an owner or officer of the employer. The commissioner must notify the
102.14employer as soon as possible if the modification is allowed.
102.15(b) (c) An employer that cancels an agreement or requests modification of a shared
102.16work plan must provide written notice to each participating employee in the group of the
102.17cancellation or requested modification at the time notice is sent to the commissioner.
102.18(c) (d) If an employer cancels an agreement a shared work plan before the expiration
102.19date provided for in subdivision 1, a new agreement shared work plan may not be entered
102.20into with approved for that employer under this section for at least 60 calendar days.
102.21(d) (e) The commissioner may immediately cancel any agreement shared work plan
102.22 if the commissioner determines the agreement plan was based upon false information or
102.23the employer is in breach has failed to adhere to the terms of the contract shared work plan.
102.24The commissioner must immediately send written notice of cancellation to the employer.
102.25An employer that receives notice of cancellation by the commissioner must provide
102.26written notice to each participating employer in the group employee of the cancellation.

102.27    Sec. 16. Minnesota Statutes 2012, section 268.23, is amended to read:
102.28268.23 SEVERABLE.
102.29    In the event that If the United States Department of Labor or a court of competent
102.30jurisdiction determines that any provision of the Minnesota Unemployment Insurance
102.31Law, or any other provision of Minnesota Statutes relating to the unemployment insurance
102.32program, is not in conformity with, or is inconsistent with, the requirements of federal
102.33law, the provision has no force or effect; but. If only a portion of the provision, or
102.34the application to any person or circumstances, is held determined not in conformity,
103.1 or determined inconsistent, the remainder of the provision and the application of the
103.2provision to other persons or circumstances are not affected.

103.3    Sec. 17. Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to
103.4read:
103.5EFFECTIVE DATE.This section is effective July 1, 2012, except the amendments
103.6to paragraph (d) are effective for penalties imposed credited on or after July 1, 2013.
103.7EFFECTIVE DATE.This section is effective the day following final enactment.

103.8    Sec. 18. UNEMPLOYMENT INSURANCE EMPLOYER TAX REDUCTION.
103.9(a) Notwithstanding Minnesota Statutes, section 268.051, subdivision 2, if, on
103.10September 30, 2013, the balance in the Minnesota Unemployment Trust Fund is more than
103.11$800,000,000, the base tax rate for calendar year 2014 is 0.1 percent, and there will be no
103.12additional assessment assigned. If, on September 30, 2014, the balance in the Minnesota
103.13Unemployment Trust Fund is more than $900,000,000, the base tax rate for calendar year
103.142015 is 0.1 percent, and there will be no additional assessment assigned.
103.15(b) This section expires December 31, 2015.

103.16    Sec. 19. COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK
103.17FUNDS.
103.18The commissioner of employment and economic development is authorized to
103.19request federal funding for Minnesota's shared work unemployment benefit program
103.20under Minnesota Statutes, section 268.136. Federal funding is available under the Middle
103.21Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding
103.22provided under that act for the shared work program must be immediately deposited in
103.23the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota
103.24Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money.
103.25EFFECTIVE DATE.This section is effective the day following final enactment.

103.26    Sec. 20. EFFECTIVE DATE.
103.27Unless otherwise specified, this article is effective for shared work plans approved
103.28on or after July 1, 2013.

104.1ARTICLE 5
104.2MISCELLANEOUS

104.3    Section 1. Minnesota Statutes 2012, section 16B.122, subdivision 2, is amended to read:
104.4    Subd. 2. Purchases; printing. (a) Whenever practicable, a public entity shall:
104.5(1) purchase uncoated office paper and printing paper;
104.6(2) purchase recycled content paper with at least ten percent postconsumer material
104.7by weight;
104.8(3) purchase paper which has not been dyed with colors, excluding pastel colors;
104.9(4) purchase recycled content paper that is manufactured using little or no chlorine
104.10bleach or chlorine derivatives;
104.11(5) use no more than two colored inks, standard or processed, except in formats
104.12where they are necessary to convey meaning;
104.13(6) use reusable binding materials or staples and bind documents by methods that do
104.14not use glue;
104.15(7) use soy-based inks; and
104.16(8) produce reports, publications, and periodicals that are readily recyclable within
104.17the state resource recovery program; and
104.18(9) purchase paper which has been made on a paper machine located in Minnesota.
104.19(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at
104.20least 50 percent postconsumer material.
104.21(c) A public entity shall print documents on both sides of the paper where commonly
104.22accepted publishing practices allow.
104.23(d) Notwithstanding paragraph (a), clause (2), and section 16B.121, copier paper
104.24purchased by a state agency must contain at least ten percent postconsumer material by
104.25fiber content.

104.26    Sec. 2. Minnesota Statutes 2012, section 154.001, is amended by adding a subdivision
104.27to read:
104.28    Subd. 4. Comprehensive examination. "Comprehensive examination" means all
104.29parts of a test administered by the board, including but not limited to written, oral, and
104.30practical components.

104.31    Sec. 3. Minnesota Statutes 2012, section 154.003, is amended to read:
104.32154.003 FEES.
105.1    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
105.2board, shall be paid to the board. The board shall deposit the fees in the general fund
105.3in the state treasury.
105.4    (b) The board shall charge the following fees:
105.5    (1) examination and certificate, registered barber, $85;
105.6(2) retake of written examination, registered barber, $10;
105.7    (2) (3) examination and certificate, apprentice, $80;
105.8(4) retake of written examination, apprentice, $10;
105.9    (3) (5) examination, instructor, $180;
105.10    (4) (6) certificate, instructor, $65;
105.11    (5) (7) temporary teacher or apprentice permit, $80;
105.12    (6) (8) renewal of license, registered barber, $80;
105.13    (7) (9) renewal of license, apprentice, $70;
105.14    (8) (10) renewal of license, instructor, $80;
105.15    (9) (11) renewal of temporary teacher permit, $65;
105.16    (10) (12) student permit, $45;
105.17(13) renewal of student permit, $25;
105.18    (11) (14) initial shop registration, $85;
105.19    (12) (15) initial school registration, $1,030;
105.20    (13) (16) renewal shop registration, $85;
105.21    (14) (17) renewal school registration, $280;
105.22    (15) (18) restoration of registered barber license, $95;
105.23    (16) (19) restoration of apprentice license, $90;
105.24    (17) (20) restoration of shop registration, $105;
105.25    (18) (21) change of ownership or location, $55;
105.26    (19) (22) duplicate license, $40; and
105.27    (20) (23) home study course, $95 $75;
105.28(24) letter of license verification, $25; and
105.29(25) reinspection, $100.

105.30    Sec. 4. Minnesota Statutes 2012, section 154.02, is amended to read:
105.31154.02 WHAT CONSTITUTES BARBERING.
105.32Any one or any combination of the following practices when done upon the head
105.33and neck for cosmetic purposes and not for the treatment of disease or physical or mental
105.34ailments and when done for payment directly or indirectly or without payment for the
105.35public generally constitutes the practice of barbering within the meaning of sections
106.1154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26:
106.2to shave the face or neck, trim the beard, cut or bob the hair of any person of either sex
106.3for compensation or other reward received by the person performing such service or any
106.4other person; to give facial and scalp massage or treatments with oils, creams, lotions,
106.5or other preparations either by hand or mechanical appliances; to singe, shampoo the
106.6hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils,
106.7clays, or lotions to hair, scalp, face, or neck.

106.8    Sec. 5. Minnesota Statutes 2012, section 154.05, is amended to read:
106.9154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
106.10REGISTERED BARBER.
106.11A person is qualified to receive a certificate of registration as a registered barber:
106.12(1) who is qualified under the provisions of section 154.06;
106.13(2) who has practiced as a registered apprentice for a period of 12 months under the
106.14immediate personal supervision of a registered barber; and
106.15(3) who has passed an examination conducted by the board to determine fitness to
106.16practice barbering.
106.17An apprentice applicant for a certificate of registration to practice as a registered
106.18barber who fails to pass the comprehensive examination conducted by the board and
106.19who fails to pass a onetime retake of the written examination, shall continue to practice
106.20as an apprentice for an additional two months 300 hours before being again entitled to
106.21take eligible to retake the comprehensive examination for a registered barber as many
106.22times as necessary to pass.

106.23    Sec. 6. Minnesota Statutes 2012, section 154.06, is amended to read:
106.24154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
106.25REGISTERED APPRENTICE.
106.26A person is qualified to receive a certificate of registration as a registered apprentice:
106.27(1) who has completed at least ten grades of an approved school;
106.28(2) who has graduated from a barber school approved by the a barber board within
106.29the previous four years; and
106.30(3) who has passed an examination conducted by the board to determine fitness to
106.31practice as a registered apprentice. An applicant who graduated from a barber school
106.32approved by a barber board more than four years prior to application is required to
106.33complete a further course of study of at least 500 hours.
107.1An applicant for a an initial certificate of registration to practice as an apprentice,
107.2 who fails to pass the comprehensive examination conducted by the board, and who fails to
107.3pass a onetime retake of the written examination, is required to complete a further course
107.4of study of at least 500 hours, of not more than eight hours in any one working day, in a
107.5barber school approved by the board before being eligible to retake the comprehensive
107.6examination as many times as necessary to pass.
107.7A certificate of registration of an apprentice shall be valid for four years from the
107.8date the certificate of registration is issued by the board and shall not be renewed for a fifth
107.9year. During the four-year period the certificate of registration shall remain in full force
107.10and effect only if the apprentice complies with all the provisions of sections 154.001,
107.11154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including
107.12the payment of an annual fee, and the rules of the board.
107.13If a registered apprentice, during the term in which the certificate of registration is in
107.14effect, enters full-time active duty in the armed forces of the United States of America,
107.15the expiration date of the certificate of registration shall be extended by a period of time
107.16equal to the period or periods of active duty.
107.17If a registered apprentice graduates from a barber school approved by the board and
107.18is issued a certificate of registration while incarcerated by the Department of Corrections
107.19of the Federal Bureau of Prisons, the expiration date of the certificate of registration shall
107.20be extended one time so that it expires four years from the date of first release from a
107.21correctional facility.

107.22    Sec. 7. Minnesota Statutes 2012, section 154.065, subdivision 2, is amended to read:
107.23    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration
107.24as an instructor of barbering who:
107.25(1) is a graduate from of an approved high school, or its equivalent, as determined
107.26by examination by the Department of Education;
107.27(2) has qualified for a teacher's or instructor's vocational certificate; successfully
107.28completed vocational instructor training from a board-approved program or accredited
107.29college or university program that includes the following courses or their equivalents as
107.30determined by the board:
107.31(i) introduction to career and technical education training;
107.32(ii) philosophy and practice of career and technical education;
107.33(iii) course development for career and technical education;
107.34(iv) instructional methods for career and technical education; and
107.35(v) human relations;
108.1(3) is currently a registered barber and has at least three years experience as a
108.2registered barber in this state, or its equivalent as determined by the board; and
108.3(4) has passed an examination conducted by the board to determine fitness to
108.4instruct in barbering.
108.5A certificate of registration under this section is provisional until a teacher's or
108.6instructor's vocational certificate has been issued by the Department of Education. A
108.7provisional certificate of registration is valid for 30 days and is not renewable.

108.8    Sec. 8. Minnesota Statutes 2012, section 154.07, subdivision 1, is amended to read:
108.9    Subdivision 1. Admission requirements; course of instruction. No barber school
108.10shall be approved by the board unless it requires, as a prerequisite to admission, ten grades
108.11of an approved school or its equivalent, as determined by an examination conducted by
108.12the commissioner of education, which shall issue a certificate that the student has passed
108.13the required examination, and unless it requires, as a prerequisite to graduation, a course
108.14of instruction of at least 1,500 hours, of not more than eight hours in any one working day.
108.15The course of instruction must include the following subjects: scientific fundamentals
108.16for barbering; hygiene; practical study of the hair, skin, muscles, and nerves; structure of
108.17the head, face, and neck; elementary chemistry relating to sterilization and antiseptics;
108.18diseases of the skin, hair, and glands; massaging and manipulating the muscles of the face
108.19and neck; haircutting; shaving; trimming the beard; bleaching, tinting and dyeing the hair;
108.20and the chemical waving and straightening of hair.

108.21    Sec. 9. Minnesota Statutes 2012, section 154.08, is amended to read:
108.22154.08 APPLICATION; FEE.
108.23Each applicant for an examination shall:
108.24(1) make application to the Board of Barber Examiners on blank forms prepared and
108.25furnished by it, the application to contain proof under the applicant's oath of the particular
108.26qualifications and identity of the applicant;
108.27(2) furnish to the board two five-inch x three-inch signed photographs of the
108.28applicant, one to accompany the application and one to be returned to the applicant,
108.29to be presented to the board when the applicant appears for examination provide all
108.30documentation required in support of the application; and
108.31(3) pay to the board the required fee; and
108.32(4) present a government-issued photo identification as proof of identity upon
108.33application and when the applicant appears for examination.

109.1    Sec. 10. Minnesota Statutes 2012, section 154.09, is amended to read:
109.2154.09 EXAMINATIONS, CONDUCT AND SCOPE.
109.3The board shall conduct examinations of applicants for certificates of registration to
109.4practice as barbers and apprentices not more than six times each year, at such time and
109.5place as the board may determine. Additional written examinations may be scheduled
109.6by the board and conducted by board staff as designated by the board. The proprietor
109.7of a barber school must file an affidavit shall be filed with the board by the proprietor
109.8of a barber school that of hours completed by students applying to take the apprentice
109.9examination have completed. Students must complete 1,500 hours in a barber school
109.10registered with approved by the board.
109.11The examination of applicants for certificates of registration as barbers and
109.12apprentices shall include both a practical demonstration and a written and oral test and
109.13embrace. The examination must cover the subjects usually taught in barber schools
109.14registered with the board.

109.15    Sec. 11. Minnesota Statutes 2012, section 154.10, subdivision 1, is amended to read:
109.16    Subdivision 1. Application. Each applicant for an initial certificate of registration
109.17shall make application to the board on forms prepared and furnished by the board with
109.18proof under oath of the particular qualifications and identity of each applicant. This
109.19application shall be accompanied by a fee prescribed by law or the rules of the board to
109.20defray the expenses of making investigation and for the examination of such applicant.

109.21    Sec. 12. Minnesota Statutes 2012, section 154.11, subdivision 1, is amended to read:
109.22    Subdivision 1. Examination of nonresidents. A person who meets all of the
109.23requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
109.24154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate
109.25of registration, or an equivalent as a practicing barber or instructor of barbering from
109.26another state or country which in the discretion of the board has substantially the same
109.27requirements for registering barbers and instructors of barbering as required by sections
109.28154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or
109.29can prove by sworn affidavits practice as a barber or instructor of barbering in another
109.30state or country for at least five years immediately prior to making application in this state,
109.31shall, upon payment of the required fee, be issued a certificate of registration without
109.32examination, provided that the other state or country grants the same privileges to holders
109.33of Minnesota certificates of registration.

110.1    Sec. 13. Minnesota Statutes 2012, section 154.12, is amended to read:
110.2154.12 EXAMINATION OF NONRESIDENT APPRENTICES.
110.3A person who meets all of the requirements for registration as a barber in sections
110.4154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and
110.5who has a license, a certificate of registration, or its equivalent as an apprentice in a state
110.6or country which in the discretion of the board has substantially the same requirements for
110.7registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01
110.8to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required
110.9fee, be issued a certificate of registration without examination, provided that the other state
110.10or country grants the same privileges to holders of Minnesota certificates of registration.

110.11    Sec. 14. Minnesota Statutes 2012, section 154.14, is amended to read:
110.12154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS
110.13TO BE DISPLAYED.
110.14Every holder of a certificate of registration as a registered barber or registered
110.15apprentice or temporary apprentice permit shall display it the certificate or permit, with a
110.16photograph of the certificate or permit holder that meets the same standards as required for
110.17a United States passport, in a conspicuous place adjacent to or near the chair where work
110.18is performed. Every holder of a certificate of registration as an instructor of barbering or
110.19as a barber school, of a temporary permit as an instructor of barbering, shall display the
110.20certificate or permit, with a photograph of the certificate or permit holder that meets the
110.21same standards as required for a United States passport, in a conspicuous place accessible
110.22to the public. Every holder of a certificate of registration as a barber school and of a shop
110.23registration card shall display it in a conspicuous place accessible to the public.

110.24    Sec. 15. Minnesota Statutes 2012, section 154.15, subdivision 2, is amended to read:
110.25    Subd. 2. Effect of failure to renew. A registered barber or a registered apprentice
110.26who has not renewed a certificate of registration may be reinstated within one year four
110.27years of such failure to renew without examination upon the payment of the required
110.28restoration fee for each year the certificate is lapsed. A registered instructor of barbering
110.29who has not renewed a certificate of registration may be reinstated within three four years
110.30of such failure to renew without examination upon payment of the required restoration fee
110.31 for each year the certificate is lapsed. All registered barbers and registered apprentices
110.32who allow their certificates of registration to lapse for more than one year four years shall
110.33be required to reexamine before being issued a certificate of registration. All registered
110.34instructors of barbering who allow their certificates of registration to lapse for more
111.1than three four years shall be required to reexamine before being issued a certificate of
111.2registration. A barber shop owner who has not renewed the barber shop certificate for more
111.3than one year may reinstate the barber shop registration upon payment of the restoration
111.4fee for each year the shop card was lapsed. If lapsed or unlicensed status is discovered by
111.5the barber inspector during inspection, penalties under section 154.162 shall apply.

111.6    Sec. 16. [154.162] ADMINISTRATIVE PENALTIES.
111.7The board shall impose and collect the following penalties:
111.8(1) missing or lapsed shop registration discovered upon inspection; penalty imposed
111.9on shop owner: $500;
111.10(2) unlicensed or unregistered apprentice or registered barber, first occurrence
111.11discovered upon inspection; penalty imposed on shop owner and unlicensed or
111.12unregistered individual: $500; and
111.13(3) unlicensed or unregistered apprentice or registered barber, second occurrence
111.14discovered upon inspection; penalty imposed on shop owner and unlicensed or
111.15unregistered individual: $1,000.

111.16    Sec. 17. Minnesota Statutes 2012, section 154.26, is amended to read:
111.17154.26 MUNICIPALITIES MAY REGULATE HOURS; REGULATION
111.18AUTHORIZED.
111.19The governing body of any city of this state may regulate by ordinance the opening
111.20and closing hours of barber shops within its municipal limits in addition to all other
111.21applicable local regulations.

111.22    Sec. 18. [154.27] MISREPRESENTATION.
111.23No person shall represent themselves to the public, solicit business, advertise as a
111.24licensed barber or as operating a licensed barber shop, use the title or designation of barber
111.25or barber shop, engage in any other act or practice that would create the impression to
111.26members of the public that the person is a licensed barber or is operating a licensed barber
111.27shop unless the person holds the appropriate license under this chapter. Violation of this
111.28section is a petty misdemeanor.

111.29    Sec. 19. [154.28] SYMBOLS; BARBER POLE.
111.30No person shall place a barber pole in a location that would create or tend to create
111.31the impression to the public that the business is a barber shop unless the operator holds a
111.32valid license under this chapter. For the purposes of this section, "barber pole" means a
112.1red and white or red, white, and blue striped vertical cylinder commonly recognized as a
112.2barber pole. Violation of this section is a petty misdemeanor.

112.3    Sec. 20. Minnesota Statutes 2012, section 155A.23, subdivision 3, is amended to read:
112.4    Subd. 3. Cosmetology. "Cosmetology" is the practice of personal services, for
112.5compensation, for the cosmetic care of the hair, nails, and skin. These services include
112.6cleaning, conditioning, shaping, reinforcing, coloring and enhancing the body surface in
112.7the areas of the head, scalp, face, arms, hands, legs, and feet, and trunk of the body, except
112.8where these services are performed by a barber under sections 154.001, 154.002, 154.003,
112.9154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26.

112.10    Sec. 21. Minnesota Statutes 2012, section 155A.23, subdivision 8, is amended to read:
112.11    Subd. 8. Manager. A "manager" is any person who conducts, operates, or manages a
112.12cosmetology school or salon and who also instructs in or provides any services, as defined
112.13in subdivision 3. A school manager must maintain an active salon manager's license.

112.14    Sec. 22. Minnesota Statutes 2012, section 155A.23, subdivision 11, is amended to read:
112.15    Subd. 11. Instructor. An "instructor" is any person employed by a school to prepare
112.16and present the theoretical and practical education of cosmetology to persons who seek to
112.17practice cosmetology. An instructor must maintain an active operator or manager's license
112.18in the area in which the instructor holds an instructor's license.

112.19    Sec. 23. Minnesota Statutes 2012, section 155A.25, subdivision 1a, is amended to read:
112.20    Subd. 1a. Schedule. The fee schedule for licensees is as follows for licenses issued
112.21after June 30, 2010, and prior to July 1, 2013:
112.22(a) Three-year license fees:
112.23(1) cosmetologist, manicurist nail technician, or esthetician:
112.24(i) $90 for each initial license and a $40 nonrefundable initial license application fee,
112.25for a total of $130; and
112.26(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for
112.27a total of $75;
112.28(2) instructor or manager:
112.29(i) $120 for each initial license and a $40 nonrefundable initial license application
112.30fee, for a total of $160; and
112.31(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a
112.32total of $105;
113.1(3) salon:
113.2(i) $130 for each initial license and a $100 nonrefundable initial license application
113.3fee, for a total of $230; and
113.4(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a
113.5total of $150; and
113.6(4) school:
113.7(i) $1,500 for each initial license and a $1,000 nonrefundable initial license
113.8application fee, for a total of $2,500; and
113.9(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee,
113.10for a total of $2,000.
113.11(b) Penalties:
113.12(1) reinspection fee, variable;
113.13(2) manager and owner with lapsed practitioner found on inspection, $150 each;
113.14(3) lapsed practitioner or instructor found on inspection, $200;
113.15(4) lapsed salon found on inspection, $500;
113.16(5) lapsed school found on inspection, $1,000;
113.17(6) failure to display current license, $100;
113.18(7) failure to dispose of single-use equipment, implements, or materials as provided
113.19under section 155A.355, subdivision 1, $500;
113.20(8) use of prohibited razor-type callus shavers, rasps, or graters under section
113.21155A.355, subdivision 2, $500;
113.22(9) performing manicuring or cosmetology services in esthetician salon, or
113.23performing esthetician or cosmetology services in manicure salon, $500;
113.24(10) owner and manager allowing an operator to work as an independent contractor,
113.25$200;
113.26(11) operator working as an independent contractor, $100;
113.27(12) refusal or failure to cooperate with an inspection, $500;
113.28(3) (13) expired cosmetologist, manicurist, esthetician, manager, school manager,
113.29and instructor license, $45; and
113.30(4) (14) expired salon or school license, $50.
113.31(c) Administrative fees:
113.32(1) certificate of identification, $20;
113.33(2) name change, $20;
113.34(3) letter of license verification, $30;
113.35(4) duplicate license, $20;
113.36(5) processing fee, $10;
114.1(6) special event permit, $75 per year; and
114.2(7) registration of hair braiders, $20 per year.

114.3    Sec. 24. Minnesota Statutes 2012, section 155A.25, subdivision 4, is amended to read:
114.4    Subd. 4. License expiration date. The board shall, in a manner determined by the
114.5board and without the need for rulemaking under chapter 14, phase in changes to initial
114.6and renewal license expiration dates so that by January 1, 2014:
114.7(1) individual licenses expire on the last day of the licensee's birth month of the
114.8year due; and
114.9(2) salon and school licenses expire on the last day of the month of initial licensure
114.10of the year due.

114.11    Sec. 25. Minnesota Statutes 2012, section 155A.27, subdivision 4, is amended to read:
114.12    Subd. 4. Testing. All theory, practical, and Minnesota law and rule testing must
114.13be done by a board-approved provider. Appropriate standardized tests shall be used and
114.14shall include subject matter relative to the application of Minnesota law. In every case,
114.15the primary consideration shall be to safeguard the health and safety of consumers by
114.16determining the competency of the applicants to provide the services indicated.

114.17    Sec. 26. Minnesota Statutes 2012, section 155A.27, subdivision 7, is amended to read:
114.18    Subd. 7. Renewals. Renewal of license shall be for a period of three years
114.19under conditions and process established by rule and subject to continuing education
114.20requirements of section 155A.271.

114.21    Sec. 27. Minnesota Statutes 2012, section 155A.27, subdivision 10, is amended to read:
114.22    Subd. 10. Nonresident licenses. (a) A nonresident cosmetologist, manicurist, or
114.23esthetician may be licensed in Minnesota if the individual has completed cosmetology
114.24school in a state or country with the same or greater school hour requirements, has an
114.25active license in that state or country, and has passed a board-approved theory and
114.26practice-based examination, the Minnesota-specific written operator examination for
114.27cosmetologist, manicurist, or esthetician. If a test is used to verify the qualifications of
114.28trained cosmetologists, the test should be translated into the nonresident's native language
114.29within the limits of available resources. Licenses shall not be issued under this subdivision
114.30for managers or instructors.
114.31(b) If an individual has less than the required number of school hours, the individual
114.32must have had a current active license in another state or country for at least three
115.1years and have passed a board-approved theory and practice-based examination, or
115.2the Minnesota-specific written operator examination for cosmetologist, manicurist, or
115.3esthetician. If a test is used to verify the qualifications of trained cosmetologists, the test
115.4should be translated into the nonresident's native language within the limits of available
115.5resources. Licenses must not be issued under this subdivision for managers or instructors.
115.6(c) Applicants claiming training and experience in a foreign country shall supply
115.7official English-language translations of all required documents from a board-approved
115.8source.

115.9    Sec. 28. [155A.271] CONTINUING EDUCATION REQUIREMENTS.
115.10    Subdivision 1. Continuing education requirements. Effective August 1, 2014,
115.11to qualify for license renewal under this chapter as an individual cosmetologist, nail
115.12technician, esthetician, or salon manager, the applicant must attest to the completion of
115.13four hours of continuing education credits from an accredited school or a professional
115.14association of cosmetology during the three years prior to the applicant's renewal
115.15date. One credit hour of the requirement must include instruction pertaining to state
115.16laws and rules governing the practice of cosmetology. Three credit hours must include
115.17instruction pertaining to health, safety, and sanitation matters consistent with the United
115.18States Department of Labor's Occupational Safety and Health Administration standards
115.19applicable to the practice of cosmetology, or other applicable federal health, sanitation,
115.20and safety standards, and must be regularly updated so as to incorporate newly developed
115.21standards and accepted professional best practices. Credit hours earned are valid for three
115.22years and may be applied simultaneously to all individual licenses held by a licensee under
115.23this chapter. This subdivision does not apply to instructors or inactive licenses.
115.24    Subd. 2. Schools and professional associations. Only a board-licensed school of
115.25cosmetology, a postsecondary institution as defined in section 136A.103, paragraph (a), or
115.26a board-recognized professional association may offer continuing education curriculum
115.27for credit under this section. The school and professional association may offer online
115.28and independent study options to achieve maximum involvement of licensees and is
115.29encouraged to offer classes available in foreign language formats.
115.30    Subd. 3. Proof of credits. The school or professional association shall provide
115.31to licensees who attend a class a receipt to prove completion of the class. Licensees
115.32shall retain proof of their continuing education credits for one year beyond the credit's
115.33expiration. The school or professional association shall retain documentation of all
115.34licensees successfully completing a class and the licensee's credit hours for five years.
116.1    Subd. 4. Audit. The board shall conduct random audits of active licensees
116.2periodically to ensure compliance with continuing education requirements. To initiate
116.3an audit, the board shall notify an active licensee of the audit and request proof of
116.4credits earned during a specified period. The licensee must provide the requested proof
116.5to the board within 30 days of an audit notice. The board may request that a school or
116.6professional association verify a licensee's credits. The school or professional association
116.7must furnish verification, or a written statement that the credits are not verified, within
116.815 days of the board's request for verification. If the board determines that a licensee has
116.9failed to provide proof of necessary credits earned during the specified time, the board
116.10may revoke the individual's license and may deem the individual a lapsed practitioner
116.11subject to penalty under section 155A.25 or 155A.36.

116.12    Sec. 29. Minnesota Statutes 2012, section 155A.29, subdivision 2, is amended to read:
116.13    Subd. 2. Requirements. (a) The conditions and process by which a salon is licensed
116.14shall be established by the board by rule. In addition to those requirements, no license
116.15shall be issued unless the board first determines that the conditions in clauses (1) to (5)
116.16have been satisfied:
116.17(1) compliance with all local and state laws, particularly relating to matters of
116.18sanitation, health, and safety;
116.19(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
116.20(3) inspection and licensing prior to the commencing of business;
116.21(4) (3) if applicable, evidence of compliance with section 176.182; and
116.22(5) (4) evidence of continued professional liability insurance coverage of at least
116.23$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
116.24(b) A licensed esthetician or manicurist who complies with the health, safety,
116.25sanitation, inspection, and insurance rules promulgated by the board to operate a salon
116.26solely for the performance of those personal services defined in section 155A.23,
116.27subdivision 5
, in the case of an esthetician, or subdivision 7, in the case of a manicurist.

116.28    Sec. 30. Minnesota Statutes 2012, section 155A.30, is amended by adding a
116.29subdivision to read:
116.30    Subd. 11. Instruction requirements. (a) Instruction may be offered for no more
116.31than ten hours per day per student.
116.32(b) Instruction must be given within a licensed school building. Online instruction is
116.33permitted for board-approved theory-based classes. Practice-based classes must not be
116.34given online.

117.1    Sec. 31. [155A.355] PROHIBITED USES.
117.2    Subdivision 1. Single-use equipment and materials. Single-use equipment,
117.3implements, or materials that are made or constructed of paper, wood, or other porous
117.4materials must only be used for one application or client service. Presence of used articles
117.5in the work area is prima facie evidence of reuse. Failure to dispose of the materials in this
117.6subdivision is punishable by penalty under section 155A.25, subdivision 1a, paragraph
117.7(b), clause (7).
117.8    Subd. 2. Skin-cutting equipment. Razor-type callus shavers, rasps, or graters
117.9designed and intended to cut growths of skin such as corns and calluses, including but not
117.10limited to credo blades, are prohibited. Presence of these articles in the work area is prima
117.11facie evidence of use and is punishable by penalty in section 155A.25, subdivision 1a,
117.12paragraph (b), clause (8).
117.13    Subd. 3. Substances. Licensees must not use any of the following substances or
117.14products in performing cosmetology services:
117.15(1) methyl methacrylate liquid monomers, also known as MMA; and
117.16(2) fumigants, including but not limited to formalin tablets or formalin liquids.

117.17    Sec. 32. [179.90] OFFICE OF COLLABORATION AND DISPUTE
117.18RESOLUTION.
117.19The commissioner of mediation services shall establish an Office of Collaboration
117.20and Dispute Resolution within the bureau. The office must:
117.21(1) promote the broad use of community mediation in the state, ensuring that all areas
117.22of the state have access to services by providing grants to private nonprofits entities certified
117.23by the state court administrator under chapter 494 that assist in resolution of disputes;
117.24(2) assist state agencies, offices of the executive, legislative, and judicial branches,
117.25and units of local government in improving collaboration and dispute resolution;
117.26(3) support collaboration and dispute resolution in the public and private sector by
117.27providing technical assistance and information on best practices and new developments in
117.28dispute resolution options;
117.29(4) educate the public and governmental entities on dispute resolution options; and
117.30(5) promote and utilize collaborative dispute resolution models and processes based
117.31on documented best practices including, but not limited to, the Minnesota Solutions model:
117.32(i) establishing criteria and procedures for identification and assessment of dispute
117.33resolution projects;
117.34(ii) designating projects and appointing impartial convenors by the commissioner
117.35or the commissioner's designee;
118.1(iii) forming multidisciplinary conflict resolution teams; and
118.2(iv) utilizing collaborative techniques, processes, and standards through facilitated
118.3meetings until consensus among parties is reached in resolving a dispute.

118.4    Sec. 33. [179.91] GRANTS.
118.5    Subdivision 1. Authority. The commissioner of mediation services shall to the
118.6extent funds are appropriated for this purpose, make grants to private nonprofit community
118.7mediation entities certified by the state court administrator under chapter 494 that assist
118.8in resolution of disputes. The commissioner shall establish a grant review committee to
118.9assist in the review of grant applications and the allocation of grants under this section.
118.10    Subd. 2. Eligibility. To be eligible for a grant under this section, a nonprofit
118.11organization must meet the requirements of section 494.05, subdivision 1, clauses (1),
118.12(2), (4), and (5).
118.13    Subd. 3. Conditions and exclusions. A nonprofit entity receiving a grant must
118.14agree to comply with guidelines adopted by the state court administrator under section
118.15494.015, subdivision 1. Sections 16B.97 and 16B.98 and policies adopted under those
118.16sections apply to grants under this section. The exclusions in section 494.03 apply to
118.17grants under this section.
118.18    Subd. 4. Reporting. Grantees must report data required under chapter 494 to
118.19evaluate quality and outcomes.

118.20    Sec. 34. Minnesota Statutes 2012, section 298.22, subdivision 1, is amended to read:
118.21    Subdivision 1. The office of the commissioner of Iron Range resources and
118.22rehabilitation. (1) The office of the commissioner of Iron Range resources and
118.23rehabilitation is created as an agency in the executive branch of state government. The
118.24governor shall appoint the commissioner of Iron Range resources and rehabilitation under
118.25section 15.06.
118.26(2) The commissioner may hold other positions or appointments that are not
118.27incompatible with duties as commissioner of Iron Range resources and rehabilitation. The
118.28commissioner may appoint a deputy commissioner. All expenses of the commissioner,
118.29including the payment of staff and other assistance as may be necessary, must be paid
118.30out of the amounts appropriated by section 298.28 or otherwise made available by law
118.31to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner
118.32may utilize contracting options available under section 471.345 when the commissioner
118.33determines it is in the best interest of the agency. The agency is not subject to sections
118.3416E.016 and 16C.05.
119.1(3) When the commissioner determines that distress and unemployment exists or
119.2may exist in the future in any county by reason of the removal of natural resources or
119.3a possibly limited use of natural resources in the future and any resulting decrease in
119.4employment, the commissioner may use whatever amounts of the appropriation made to
119.5the commissioner of revenue in section 298.28 that are determined to be necessary and
119.6proper in the development of the remaining resources of the county and in the vocational
119.7training and rehabilitation of its residents, except that the amount needed to cover cost
119.8overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
119.9the commissioner or in effect after July 1, 1985, is appropriated from the general fund.
119.10For the purposes of this section, "development of remaining resources" includes, but is
119.11not limited to, the promotion of tourism.

119.12    Sec. 35. Minnesota Statutes 2012, section 298.28, subdivision 9c, is amended to read:
119.13    Subd. 9c. Temporary Distribution; city of Eveleth. 0.20 cent per taxable ton
119.14must be paid to the city of Eveleth for distribution in 2007 through 2011 only 2013
119.15and thereafter, to be used for the support of the Hockey Hall of Fame, provided that it
119.16continues to operate in that city, and provided that the city of Eveleth certifies to the St.
119.17Louis County auditor that it has received donations for the support of the Hockey Hall of
119.18Fame from professional hockey organizations or other donors in an amount at least equal
119.19 to the amount of the distribution under this subdivision. If the Hockey Hall of Fame
119.20ceases to operate in the city of Eveleth prior to receipt of the distribution in either any
119.21year, and the governing body of the city determines that it is unlikely to resume operation
119.22there within a six-month period, the distribution under this subdivision shall be made to
119.23the Iron Range Resources and Rehabilitation Board. If the amount of the distribution
119.24authorized under this subdivision exceeds the total amount of donations for the support of
119.25the Hockey Hall of Fame during the 12-month period ending 30 days before the date of
119.26the distribution, the amount by which 0.20 cent per ton exceeds the donations shall be
119.27distributed to the Iron Range Resources and Rehabilitation Board.

119.28    Sec. 36. Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:
119.29    Subd. 2. Timing. (a) Certificates must be initially issued and renewed for periods of
119.30not more than three years annually but in any event must expire on December 31 in the year
119.31prescribed by the board by rule. Applications for certificates must be made in the form, and
119.32in the case of applications for renewal between the dates, specified by the board in rule.
119.33The board shall grant or deny an application no later than 90 days after the application is
119.34filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal
120.1of a certificate was mistakenly denied, or if the board is unable to determine whether it
120.2should be granted or denied, the board may issue to the applicant a provisional certificate
120.3that expires 90 days after its issuance, or when the board determines whether or not to
120.4issue or renew the certificate for which application was made, whichever occurs first.
120.5(b) Certificate holders who do not provide professional services and do not use the
120.6certified public accountant designation in any manner are not required to renew their
120.7certificates provided they have notified the board as provided in board rule and comply
120.8with the requirements for nonrenewal as specified in board rule.
120.9(c) Applications for renewal of a certificate that are complete and timely filed with
120.10the board and are not granted or denied by the board before January 1 are renewed on a
120.11provisional basis as of January 1 and for 90 days thereafter, or until the board grants or
120.12denies the renewal of the certificate, whichever occurs first, provided the licensee meets
120.13the requirements in this chapter and rules adopted by the board.
120.14EFFECTIVE DATE.This section is effective for licenses issued or renewed after
120.15January 1, 2014.

120.16    Sec. 37. Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:
120.17    Subd. 3. Residents of other states. (a) With regard to an applicant who must
120.18obtain a certificate in this state because the applicant does not qualify under the substantial
120.19equivalency standard in section 326A.14, subdivision 1, the board shall issue a certificate
120.20to a holder of a certificate, license, or permit issued by another state upon a showing that:
120.21(1) the applicant passed the examination required for issuance of a certificate in
120.22this state;
120.23(2) the applicant had four years of experience of the type described in section
120.24326A.03, subdivision 6 , paragraph (b), if application is made on or after July 1, 2006,
120.25or section 326A.03, subdivision 8, if application is made before July 1, 2006; or the
120.26applicant meets equivalent requirements prescribed by the board by rule, after passing
120.27the examination upon which the applicant's certificate was based and within the ten years
120.28immediately preceding the application;
120.29(3) if the applicant's certificate, license, or permit was issued more than four years
120.30prior to the application for issuance of an initial certificate under this subdivision, that the
120.31applicant has fulfilled the requirements of continuing professional education that would
120.32have been applicable under subdivision 4; and
120.33(4) the applicant has met the qualifications prescribed by the board by rule.
120.34(b) A certificate holder licensed by another state who establishes a principal place
120.35of business in this state shall request the issuance of a certificate from the board prior to
121.1establishing the principal place of business. The board shall issue a certificate to the person
121.2if the person's individual certified public accountant qualifications, upon verification, are
121.3substantially equivalent to the certified public accountant licensure requirements of this
121.4chapter or the person meets equivalent requirements as the board prescribes by rule.
121.5Residents of this state who provide professional services in this state at an office location
121.6in this state shall be considered to have their principal place of business in this state.

121.7    Sec. 38. Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:
121.8    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
121.9issuance or renewal of a certificate under this section as provided in paragraph (b).
121.10(b) The board shall charge the following fees:
121.11(1) initial issuance of certificate, $150;
121.12(2) renewal of certificate with an active status, $100 per year;
121.13(3) initial CPA firm permits, except for sole practitioners, $100;
121.14(4) renewal of CPA firm permits, except for sole practitioners and those firms
121.15specified in clause (17), $35 per year;
121.16(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
121.17those firms specified in clause (17), $35 per year;
121.18(6) annual late processing delinquency fee for permit, certificate, or registration
121.19renewal applications not received prior to expiration date, $50;
121.20(7) copies of records, per page, 25 cents;
121.21(8) registration of noncertificate holders, nonlicensees, and nonregistrants in
121.22connection with renewal of firm permits, $45 per year;
121.23(9) applications for reinstatement, $20;
121.24(10) initial registration of a registered accounting practitioner, $50;
121.25(11) initial registered accounting practitioner firm permits, $100;
121.26(12) renewal of registered accounting practitioner firm permits, except for sole
121.27practitioners, $100 per year;
121.28(13) renewal of registered accounting practitioner firm permits for sole practitioners,
121.29$35 per year;
121.30(14) CPA examination application, $40;
121.31(15) CPA examination, fee determined by third-party examination administrator;
121.32(16) renewal of certificates with an inactive status, $25 per year; and
121.33(17) renewal of CPA firm permits for firms that have one or more offices located in
121.34another state, $68 per year.

122.1    Sec. 39. Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:
122.2    Subd. 7. Certificates issued by foreign countries. The board shall issue a
122.3certificate to a holder of a generally equivalent foreign country designation, provided that:
122.4(1) the foreign authority that granted the designation makes similar provision to
122.5allow a person who holds a valid certificate issued by this state to obtain the foreign
122.6authority's comparable designation;
122.7(2) the foreign designation:
122.8(i) was duly issued by a foreign authority that regulates the practice of public
122.9accountancy and the foreign designation has not expired or been revoked or suspended;
122.10(ii) entitles the holder to issue reports upon financial statements; and
122.11(iii) was issued upon the basis of educational, examination, and experience
122.12requirements established by the foreign authority or by law; and
122.13(3) the applicant:
122.14(i) received the designation, based on educational and examination standards
122.15generally equivalent to those in effect in this state, at the time the foreign designation
122.16was granted;
122.17(ii) has, within the ten years immediately preceding the application, completed an
122.18experience requirement that is generally equivalent to the requirement in section 326A.03,
122.19subdivision 6
, paragraph (b), if application is made on or after July 1, 2006, or section
122.20326A.03, subdivision 8, if application is made before July 1, 2006, in the jurisdiction that
122.21granted the foreign designation; completed four years of professional experience in this
122.22state; or met equivalent requirements prescribed by the board by rule; and
122.23(iii) passed a uniform qualifying examination in national standards and an
122.24examination on the laws, regulations, and code of ethical conduct in effect in this state
122.25as the board prescribes by rule.

122.26    Sec. 40. Minnesota Statutes 2012, section 326A.10, is amended to read:
122.27326A.10 UNLAWFUL ACTS.
122.28(a) Only a licensee and individuals who have been granted practice privileges
122.29under section 326A.14 may issue a report on financial statements of any person, firm,
122.30organization, or governmental unit that results from providing attest services, or offer to
122.31render or render any attest service. Only a certified public accountant, an individual who
122.32has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent
122.33permitted by board rule, a person registered under section 326A.06, paragraph (b), may
122.34issue a report on financial statements of any person, firm, organization, or governmental
122.35unit that results from providing compilation services or offer to render or render any
123.1compilation service. These restrictions do not prohibit any act of a public official or
123.2public employee in the performance of that person's duties or prohibit the performance
123.3by any nonlicensee of other services involving the use of accounting skills, including
123.4the preparation of tax returns, management advisory services, and the preparation of
123.5financial statements without the issuance of reports on them. Nonlicensees may prepare
123.6financial statements and issue nonattest transmittals or information on them which do not
123.7purport to be in compliance with the Statements on Standards for Accounting and Review
123.8Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may,
123.9to the extent permitted by board rule, prepare financial statements and issue nonattest
123.10transmittals or information on them.
123.11(b) Licensees and individuals who have been granted practice privileges under
123.12section 326A.14 performing attest or compilation services must provide those services in
123.13accordance with professional standards. To the extent permitted by board rule, registered
123.14accounting practitioners performing compilation services must provide those services in
123.15accordance with standards specified in board rule.
123.16(c) A person who does not hold a valid certificate issued under section 326A.04
123.17or a practice privilege granted under section 326A.14 shall not use or assume the title
123.18"certified public accountant," the abbreviation "CPA," or any other title, designation,
123.19words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
123.20certified public accountant.
123.21(d) A firm shall not provide attest services or assume or use the title "certified public
123.22accountants," the abbreviation "CPA's," or any other title, designation, words, letters,
123.23abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless
123.24(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in
123.25accordance with this chapter and rules adopted by the board.
123.26(e) A person or firm that does not hold a valid certificate or permit issued under
123.27section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or
123.28326A.05 as required in this chapter shall not assume or use the title "certified accountant,"
123.29"chartered accountant," "enrolled accountant," "licensed accountant," "registered
123.30accountant," "accredited accountant," "accounting practitioner," "public accountant,"
123.31"licensed public accountant," or any other title or designation likely to be confused
123.32with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
123.33"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
123.34abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
123.35so designated by the Internal Revenue Service.
124.1(f) Persons registered under section 326A.06, paragraph (b), may use the title
124.2"registered accounting practitioner" or the abbreviation "RAP." A person who does not
124.3hold a valid registration under section 326A.06, paragraph (b), shall not assume or use
124.4such title or abbreviation.
124.5(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
124.6language in any statement relating to the financial affairs of a person or entity that is
124.7conventionally used by licensees in reports on financial statements. In this regard, the
124.8board shall issue by rule safe harbor language that nonlicensees may use in connection
124.9with such financial information. A person or firm that does not hold a valid certificate or
124.10permit, or a registration issued under section 326A.04, 326A.05, or 326A.06, paragraph
124.11(b)
, or has not otherwise complied with section 326A.04 or 326A.05 as required in this
124.12chapter shall not assume or use any title or designation that includes the word "accountant"
124.13or "accounting" in connection with any other language, including the language of a report,
124.14that implies that the person or firm holds such a certificate, permit, or registration or has
124.15special competence as an accountant. A person or firm that does not hold a valid certificate
124.16or permit issued under section 326A.04 or 326A.05 or has not otherwise complied with
124.17section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title
124.18or designation that includes the word "auditor" in connection with any other language,
124.19including the language of a report, that implies that the person or firm holds such a
124.20certificate or permit or has special competence as an auditor. However, this paragraph
124.21does not prohibit any officer, partner, member, manager, or employee of any firm or
124.22organization from affixing that person's own signature to any statement in reference to the
124.23financial affairs of such firm or organization with any wording designating the position,
124.24title, or office that the person holds, nor prohibit any act of a public official or employee in
124.25the performance of the person's duties as such.
124.26(h)(1) No person holding a certificate or registration or firm holding a permit under
124.27this chapter shall use a professional or firm name or designation that is misleading about
124.28the legal form of the firm, or about the persons who are partners, officers, members,
124.29managers, or shareholders of the firm, or about any other matter. However, names of one
124.30or more former partners, members, managers, or shareholders may be included in the
124.31name of a firm or its successor.
124.32(2) A common brand name or network name part, including common initials, used
124.33by a CPA firm in its name, is not misleading if the firm is a network firm as defined in
124.34the American Institute of Certified Public Accountants (AICPA) Code of Professional
124.35Conduct in effect July 1, 2011, and when offering or rendering services that require
125.1independence under AICPA standards, the firm must comply with the AICPA code's
125.2applicable standards on independence.
125.3(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
125.4designation, degree, or license granted in a foreign country entitling the holder to engage
125.5in the practice of public accountancy or its equivalent in that country, if:
125.6(1) the activities of the person or firm in this state are limited to the provision of
125.7professional services to persons or firms who are residents of, governments of, or business
125.8entities of the country in which the person holds the entitlement;
125.9(2) the person or firm performs no attest or compilation services and issues no reports
125.10with respect to the financial statements of any other persons, firms, or governmental
125.11units in this state; and
125.12(3) the person or firm does not use in this state any title or designation other than
125.13the one under which the person practices in the foreign country, followed by a translation
125.14of the title or designation into English, if it is in a different language, and by the name
125.15of the country.
125.16(j) No holder of a certificate issued under section 326A.04 may perform attest services
125.17through any business form that does not hold a valid permit issued under section 326A.05.
125.18(k) No individual licensee may issue a report in standard form upon a compilation
125.19of financial information through any form of business that does not hold a valid permit
125.20issued under section 326A.05, unless the report discloses the name of the business through
125.21which the individual is issuing the report, and the individual:
125.22(1) signs the compilation report identifying the individual as a certified public
125.23accountant;
125.24(2) meets the competency requirement provided in applicable standards; and
125.25(3) undergoes no less frequently than once every three years, a peer review
125.26conducted in a manner specified by the board in rule, and the review includes verification
125.27that the individual has met the competency requirements set out in professional standards
125.28for such services.
125.29(l) No person registered under section 326A.06, paragraph (b), may issue a report
125.30in standard form upon a compilation of financial information unless the board by rule
125.31permits the report and the person:
125.32(1) signs the compilation report identifying the individual as a registered accounting
125.33practitioner;
125.34(2) meets the competency requirements in board rule; and
126.1(3) undergoes no less frequently than once every three years a peer review conducted
126.2in a manner specified by the board in rule, and the review includes verification that the
126.3individual has met the competency requirements in board rule.
126.4(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
126.5preparing or presenting records or documents customarily prepared by an attorney or firm
126.6of attorneys in connection with the attorney's professional work in the practice of law.
126.7(n) The board shall adopt rules that place limitations on receipt by a licensee or a
126.8person who holds a registration under section 326A.06, paragraph (b), of:
126.9(1) contingent fees for professional services performed; and
126.10(2) commissions or referral fees for recommending or referring to a client any
126.11product or service.
126.12(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
126.13of this section for a firm not holding a valid permit under section 326A.05 and not having
126.14an office in this state to provide its professional services in this state so long as it complies
126.15with the applicable requirements of section 326A.05, subdivision 1.

126.16    Sec. 41. Minnesota Statutes 2012, section 462.358, subdivision 2b, is amended to read:
126.17    Subd. 2b. Dedication. (a) The regulations may require that a reasonable portion of
126.18the buildable land, as defined by municipal ordinance, of any proposed subdivision be
126.19dedicated to the public or preserved for public use as streets, roads, sewers, electric,
126.20gas, and water facilities, storm water drainage and holding areas or ponds and similar
126.21utilities and improvements, parks, recreational facilities as defined in section 471.191,
126.22playgrounds, trails, wetlands, or open space. The requirement must be imposed by
126.23ordinance or under the procedures established in section 462.353, subdivision 4a.
126.24(b) If a municipality adopts the ordinance or proceeds under section 462.353,
126.25subdivision 4a, as required by paragraph (a), the municipality must adopt a capital
126.26improvement budget and have a parks and open space plan or have a parks, trails, and
126.27open space component in its comprehensive plan subject to the terms and conditions in
126.28this paragraph and paragraphs (c) to (i).
126.29    (c) The municipality may choose to accept a cash fee as set by ordinance from the
126.30applicant for some or all of the new lots created in the subdivision, based on the average
126.31fair market value of the unplatted land for which park fees have not already been paid that
126.32is, no later than at the time of final approval or under the city's adopted comprehensive
126.33plan, to be served by municipal sanitary sewer and water service or community septic and
126.34private well as authorized by state law. For purposes of redevelopment on developed
126.35land, the municipality may choose to accept a cash fee based on fair market value of the
127.1land no later than the time of final approval. "Fair market value" means the value of the
127.2land as determined by the municipality annually based on tax valuation or other relevant
127.3data. If the municipality's calculation of valuation is objected to by the applicant, then
127.4the value shall be as negotiated between the municipality and the applicant, or based on
127.5the market value as determined by the municipality based on an independent appraisal of
127.6land in a same or similar land use category.
127.7(d) In establishing the portion to be dedicated or preserved or the cash fee, the
127.8regulations shall give due consideration to the open space, recreational, or common areas
127.9and facilities open to the public that the applicant proposes to reserve for the subdivision.
127.10(e) The municipality must reasonably determine that it will need to acquire that
127.11portion of land for the purposes stated in this subdivision as a result of approval of the
127.12subdivision.
127.13(f) Cash payments received must be placed by the municipality in a special fund to
127.14be used only for the purposes for which the money was obtained.
127.15(g) Cash payments received must be used only for the acquisition and development
127.16or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open
127.17space based on the approved park systems plan. Cash payments must not be used for
127.18ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails,
127.19wetlands, or open space.
127.20(h) The municipality must not deny the approval of a subdivision based solely on
127.21an inadequate supply of parks, open spaces, trails, or recreational facilities within the
127.22municipality.
127.23(i) Previously subdivided property from which a park dedication has been received,
127.24being resubdivided with the same number of lots, is exempt from park dedication
127.25requirements. If, as a result of resubdividing the property, the number of lots is increased,
127.26then the park dedication or per-lot cash fee must apply only to the net increase of lots.

127.27    Sec. 42. Minnesota Statutes 2012, section 462A.37, subdivision 1, is amended to read:
127.28    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
127.29have the meanings given.
127.30(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
127.31(c) "Community land trust" means an entity that meets the requirements of section
127.32462A.31, subdivisions 1 and 2.
127.33(d) "Debt service" means the amount payable in any fiscal year of principal,
127.34premium, if any, and interest on housing infrastructure bonds and the fees, charges, and
127.35expenses related to the bonds.
128.1(e) "Foreclosed property" means residential property where foreclosure proceedings
128.2have been initiated or have been completed and title transferred or where title is transferred
128.3in lieu of foreclosure.
128.4(f) "Housing infrastructure bonds" means bonds issued by the agency under this
128.5chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the
128.6Internal Revenue Code, finance qualified residential rental projects within the meaning of
128.7Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private
128.8activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the
128.9purpose of financing or refinancing affordable housing authorized under this chapter.
128.10(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
128.11(h) "Supportive housing" means housing that is not time-limited and provides or
128.12coordinates with linkages to services necessary for residents to maintain housing stability
128.13and maximize opportunities for education and employment.
128.14EFFECTIVE DATE.This section is effective the day following final enactment.

128.15    Sec. 43. Laws 2006, chapter 269, section 2, as amended by Laws 2008, chapter 331,
128.16section 11, and Laws 2008, chapter 366, article 17, section 5, is amended to read:
128.17    Sec. 2. DEDICATION FEE.
128.18    The Minneapolis Park and Recreation Board and the Minneapolis City Council
128.19may jointly exercise the powers conferred under Minnesota Statutes, section 462.358,
128.20with respect to requiring require that a reasonable portion of land be dedicated to the
128.21public or imposing impose a dedication fee on in conjunction with the construction permit
128.22required for new housing units and new commercial and industrial development in the
128.23city, wherever located, for public parks, playgrounds, recreational facilities, wetlands,
128.24trails, or open space. The dedication of land or dedication fee must be imposed by an
128.25ordinance jointly enacted by the park board and the city council. The cash fee may be set
128.26at a flat fee rate per net new residential unit. The ordinance may exclude senior housing
128.27and affordable housing from paying the fee or the dedication of land. The provisions of
128.28Minnesota Statutes, section 462.358, subdivisions 2b, paragraph (b), and 2c, apply to the
128.29imposition, application, and use of the dedication of land or the dedication fee.
128.30EFFECTIVE DATE.This section is effective the day after the Minneapolis City
128.31Council and the Minneapolis Park and Recreation Board and their chief clerical officers
128.32timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions
128.332 and 3, and applies to joint dedication fee ordinances adopted or amended by the city
128.34of Minneapolis and the Minneapolis Park and Recreation Board before, on, or after that
129.1date, provided that no dedication of land or collection of park dedication fees can be
129.2effective until after December 31, 2013.

129.3    Sec. 44. CITY OF ST. PAUL DEDICATION FEE.
129.4The city of St. Paul may require that a reasonable portion of land be dedicated to the
129.5public or impose a dedication fee in conjunction with the construction permit required for
129.6new housing units and new commercial and industrial development in the city, wherever
129.7located, for public parks, playgrounds, recreational facilities, wetlands, trails, or open
129.8space. The dedication of land or dedication fee must be imposed by an ordinance enacted
129.9by the city council. The cash fee may be set at a flat fee rate per net new residential
129.10unit. The ordinance may exclude senior housing and affordable housing from paying the
129.11fee or the dedication of land. The provisions of Minnesota Statutes, section 462.358,
129.12subdivisions 2b, paragraph (b); and 2c, apply to the application and use of the dedication
129.13of land or the dedication fee.
129.14EFFECTIVE DATE.This section is effective January 1, 2014, and applies to
129.15dedication fee ordinances adopted or amended by the city of St. Paul before, on, or after
129.16that date.

129.17    Sec. 45. GOOD CAUSE EXEMPTION.
129.18The Board of Cosmetology may amend Minnesota Rules so that they conform
129.19with this article. The Board of Cosmetology may use the good cause exemption under
129.20Minnesota Statutes, section 14.388, subdivision 1, clause (3), in adopting the amendment,
129.21and Minnesota Statutes, section 14.386, does not apply, except as it relates to Minnesota
129.22Statutes, section 14.388.

129.23    Sec. 46. 2013 DISTRIBUTION ONLY.
129.24For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
129.25any excess of the balance remaining after distribution of amounts required under Minnesota
129.26Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
129.27County acting as the fiscal agent for the recipients for the following specific purposes:
129.28(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
129.29supply system;
129.30(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
129.31required as a result of actions undertaken by United States Steel Corporation;
129.32(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply
129.33system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
130.1(4) 2.5 cents per ton to the city of Tower for the Tower Marina;
130.2(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
130.3system to replace aging effluent lines and for parking lot repaving;
130.4(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
130.5improvements;
130.6(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
130.7(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
130.8Intermodal Transportation Center;
130.9(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
130.10hockey arena renovations;
130.11(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
130.12to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
130.13Greenway Township;
130.14(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
130.15(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
130.16(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
130.17sewer extension;
130.18(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
130.19(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
130.20(16) 1.5 cents per ton to the city of Cook for street improvements, business park
130.21infrastructure, and a maintenance garage;
130.22(17) 0.5 cents per ton to the city of Cook for a water line project;
130.23(18) 1.8 cents per ton to the city of Eveleth to be used for Jones Street reconstruction
130.24and the city auditorium;
130.25(19) 0.5 cents for the city of Keewatin for an electrical substation and water line
130.26replacements; and
130.27(20) 3.3 cents for the city of Virginia for Fourth Street North infrastructure and
130.28Franklin Park improvement.
130.29EFFECTIVE DATE.This section is effective for the 2013 distribution, and all
130.30payments must be made separately and within ten days of the date of the August 2013
130.31payment.

130.32    Sec. 47. ST. PAUL RIVERCENTRE ARENA.
130.33Notwithstanding Laws 1998, chapter 404, section 23, subdivision 6, as amended
130.34by Laws 2002, chapter 220, Article 10, section 35, the repayment amounts due from the
130.35city of St. Paul in fiscal years 2014 and 2015 shall be reduced by $500,000 each year. No
131.1repayments are required from the city of St. Paul from fiscal years 2016 through 2021.
131.2Amounts scheduled to be repaid in fiscal years 2016 through 2021 must be used solely
131.3to pay for or finance design, construction, or equipment to make arena improvements
131.4according to a project list mutually agreed to between the lessee and the city of St. Paul's
131.5lease representative.

131.6    Sec. 48. WHISKEY ROAD IMPROVEMENTS.
131.7The money held by St. Louis County for the Whiskey Road improvement project
131.8shall accrue interest at the current market rate and must be used for improvements to
131.9the road near the city of Biwabik.

131.10    Sec. 49. REVISOR'S INSTRUCTION.
131.11(a) The revisor of statutes shall change the term "manicurist" to "nail technician"
131.12wherever it appears in Minnesota Rules and Statutes.
131.13(b) The revisor of statutes shall change the term "licensed" to "registered" and
131.14"license" to "registration" wherever it appears in Minnesota Statutes, chapter 154, or
131.15applicable Minnesota Rules.

131.16    Sec. 50. REPEALER.
131.17(a) Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03; 116W.035;
131.18116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25;
131.19116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33;
131.20116W.34; 155A.25, subdivision 1; and 326A.03, subdivisions 2, 5, and 8, are repealed.
131.21(b) Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, are repealed.

131.22ARTICLE 6
131.23COMMERCE AND CONSUMER PROTECTION POLICY

131.24    Section 1. Minnesota Statutes 2012, section 45.0135, subdivision 6, is amended to read:
131.25    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention
131.26account is created in the state treasury. Money received from assessments under
131.27subdivision 7 and transferred from the automobile theft prevention account in section
131.2865B.84, subdivision 1, is deposited in the account. Money in this fund is appropriated
131.29to the commissioner of commerce for the purposes specified in this section and sections
131.3060A.951 to 60A.956.

131.31    Sec. 2. Minnesota Statutes 2012, section 60A.14, subdivision 1, is amended to read:
132.1    Subdivision 1. Fees other than examination fees. In addition to the fees and
132.2charges provided for examinations, the following fees must be paid to the commissioner
132.3for deposit in the general fund:
132.4(a) by township mutual fire insurance companies;
132.5(1) for filing certificate of incorporation $25 and amendments thereto, $10;
132.6(2) for filing annual statements, $15;
132.7(3) for each annual certificate of authority, $15;
132.8(4) for filing bylaws $25 and amendments thereto, $10;
132.9(b) by other domestic and foreign companies including fraternals and reciprocal
132.10exchanges;
132.11(1) for filing an application for an initial certification of authority to be admitted
132.12to transact business in this state, $1,500;
132.13(2) for filing certified copy of certificate of articles of incorporation, $100;
132.14(3) for filing annual statement, $225;
132.15(4) for filing certified copy of amendment to certificate or articles of incorporation,
132.16$100;
132.17(5) for filing bylaws, $75 or amendments thereto, $75;
132.18(6) for each company's certificate of authority, $575, annually;
132.19(c) the following general fees apply:
132.20(1) for each certificate, including certified copy of certificate of authority, renewal,
132.21valuation of life policies, corporate condition or qualification, $25;
132.22(2) for each copy of paper on file in the commissioner's office 50 cents per page,
132.23and $2.50 for certifying the same;
132.24(3) for license to procure insurance in unadmitted foreign companies, $575;
132.25(4) for valuing the policies of life insurance companies, one cent per $1,000 of
132.26insurance so valued, provided that the fee shall not exceed $13,000 per year for any
132.27company. The commissioner may, in lieu of a valuation of the policies of any foreign life
132.28insurance company admitted, or applying for admission, to do business in this state, accept
132.29a certificate of valuation from the company's own actuary or from the commissioner of
132.30insurance of the state or territory in which the company is domiciled;
132.31(5) for receiving and filing certificates of policies by the company's actuary, or by
132.32the commissioner of insurance of any other state or territory, $50;
132.33(6) for each appointment of an agent filed with the commissioner, $10 $30;
132.34(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
132.35per filing, or $125 per filing when submitted via electronic filing system. Filing fees
133.1may be paid on a quarterly basis in response to an invoice. Billing and payment may
133.2be made electronically;
133.3(8) for annual renewal of surplus lines insurer license, $300.
133.4The commissioner shall adopt rules to define filings that are subject to a fee.

133.5    Sec. 3. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
133.6    Subdivision 1. Program described; commissioner's duties; appropriation. (a)
133.7The commissioner of commerce shall:
133.8(1) develop and sponsor the implementation of statewide plans, programs, and
133.9strategies to combat automobile theft, improve the administration of the automobile theft
133.10laws, and provide a forum for identification of critical problems for those persons dealing
133.11with automobile theft;
133.12(2) coordinate the development, adoption, and implementation of plans, programs,
133.13and strategies relating to interagency and intergovernmental cooperation with respect
133.14to automobile theft enforcement;
133.15(3) annually audit the plans and programs that have been funded in whole or in part
133.16to evaluate the effectiveness of the plans and programs and withdraw funding should the
133.17commissioner determine that a plan or program is ineffective or is no longer in need
133.18of further financial support from the fund;
133.19(4) develop a plan of operation including:
133.20(i) an assessment of the scope of the problem of automobile theft, including areas
133.21of the state where the problem is greatest;
133.22(ii) an analysis of various methods of combating the problem of automobile theft;
133.23(iii) a plan for providing financial support to combat automobile theft;
133.24(iv) a plan for eliminating car hijacking; and
133.25(v) an estimate of the funds required to implement the plan; and
133.26(5) distribute money, in consultation with the commissioner of public safety,
133.27pursuant to subdivision 3 from the automobile theft prevention special revenue account
133.28for automobile theft prevention activities, including:
133.29(i) paying the administrative costs of the program;
133.30(ii) providing financial support to the State Patrol and local law enforcement
133.31agencies for automobile theft enforcement teams;
133.32(iii) providing financial support to state or local law enforcement agencies for
133.33programs designed to reduce the incidence of automobile theft and for improved
133.34equipment and techniques for responding to automobile thefts;
134.1(iv) providing financial support to local prosecutors for programs designed to reduce
134.2the incidence of automobile theft;
134.3(v) providing financial support to judicial agencies for programs designed to reduce
134.4the incidence of automobile theft;
134.5(vi) providing financial support for neighborhood or community organizations or
134.6business organizations for programs designed to reduce the incidence of automobile
134.7theft and to educate people about the common methods of automobile theft, the models
134.8of automobiles most likely to be stolen, and the times and places automobile theft is
134.9most likely to occur; and
134.10(vii) providing financial support for automobile theft educational and training
134.11programs for state and local law enforcement officials, driver and vehicle services exam
134.12and inspections staff, and members of the judiciary.
134.13(b) The commissioner may not spend in any fiscal year more than ten percent of the
134.14money in the fund for the program's administrative and operating costs. The commissioner
134.15is annually appropriated and must distribute the amount of the proceeds credited to
134.16the automobile theft prevention special revenue account each year, less the transfer of
134.17$1,300,000 each year to the general fund described in section 168A.40, subdivision 4.
134.18(c) At the end of each fiscal year, the commissioner may transfer any unobligated
134.19balances in the auto theft prevention account to the insurance fraud prevention account
134.20under section 45.0135, subdivision 6.

134.21    Sec. 4. [80G.01] REGISTRATION.
134.22(a) The fee for each registration under this chapter shall be as follows:
134.23(1) bullion coin dealers, $25; and
134.24(2) coin dealer representatives, $10.
134.25(b) The commissioner, based on the cost of processing registrations, may adjust the
134.26registration fee on an annual basis as needed.

134.27    Sec. 5. Minnesota Statutes 2012, section 239.101, subdivision 3, is amended to read:
134.28    Subd. 3. Petroleum inspection fee; appropriation, uses. (a) An inspection fee
134.29is imposed (1) on petroleum products when received by the first licensed distributor,
134.30and (2) on petroleum products received and held for sale or use by any person when the
134.31petroleum products have not previously been received by a licensed distributor. The
134.32petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of
134.33revenue shall collect the fee. The revenue from 81 89 cents of the fee is appropriated to
134.34the commissioner of commerce for the cost of operations of the Division of Weights and
135.1Measures, petroleum supply monitoring, and to make grants to providers of low-income
135.2weatherization services to install renewable energy equipment in households that are
135.3eligible for weatherization assistance under Minnesota's weatherization assistance
135.4program state plan. The remainder of the fee must be deposited in the general fund.
135.5    (b) The commissioner of revenue shall credit a person for inspection fees previously
135.6paid in error or for any material exported or sold for export from the state upon filing of a
135.7report as prescribed by the commissioner of revenue.
135.8    (c) The commissioner of revenue may collect the inspection fee along with any
135.9taxes due under chapter 296A.

135.10    Sec. 6. Minnesota Statutes 2012, section 507.235, subdivision 2, is amended to read:
135.11    Subd. 2. Penalty for failure to file. (a) A vendee who fails to record a contract for
135.12deed, as required by subdivision 1, is subject to a civil penalty, payable under subdivision
135.135, equal to two percent of the principal amount of the contract debt, unless the vendee
135.14has not received a copy of the contract for deed in recordable form, as required under
135.15subdivision 1a. Payments of the penalty shall be deposited in the general fund of the
135.16county. The penalty may be enforced as a lien against the vendee's interest in the property.
135.17(b) A person receiving an assignment of a vendee's interest in a contract for deed
135.18who fails to record the assignment as required by subdivision 1 is subject to a civil penalty,
135.19payable under subdivision 5, equal to two percent of the original principal amount of the
135.20contract debt. Payments of the penalty must be deposited in the general fund of the county.
135.21The penalty may be enforced as a lien against the vendee's interest in the property.

135.22    Sec. 7. [559.201] DEFINITIONS.
135.23    Subdivision 1. Application. The definitions in this section apply to section 559.202.
135.24    Subd. 2. Business day. "Business day" means any day other than a Saturday,
135.25Sunday, or holiday as defined in section 645.44, subdivision 5.
135.26    Subd. 3. Family farm security loan. "Family farm security loan" has the meaning
135.27given in Minnesota Statutes 2008, section 41.52, subdivision 5.
135.28    Subd. 4. Multiple seller. "Multiple seller" means a person that has acted as a seller
135.29in four or more contracts for deed involving residential real property during the 12-month
135.30period that precedes either: (1) the date on which the purchaser executes a purchase
135.31agreement under section 559.202; or (2) if there is no purchase agreement, the date on
135.32which the purchaser executes a contract for deed under section 559.202. A contract for
135.33deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed
135.34for the purposes of determining whether a seller is a multiple seller.
136.1    Subd. 5. Person. "Person" means a natural person, partnership, corporation, limited
136.2liability company, association, trust, or other legal entity, however organized.
136.3    Subd. 6. Purchase agreement. "Purchase agreement" means a purchase agreement
136.4for a contract for deed, an earnest money contract, or an executed option contemplating
136.5that, at closing, the seller and the purchaser will enter into a contract for deed.
136.6    Subd. 7. Purchaser. "Purchaser" means a natural person who enters into a contract
136.7for deed to purchase residential real property. Purchaser includes all purchasers who enter
136.8into the same contract for deed to purchase residential real property.
136.9    Subd. 8. Residential real property. "Residential real property" means real property
136.10consisting of one to four family dwelling units, one of which the purchaser intends to
136.11occupy as the purchaser's principal place of residence. Residential real property does
136.12not include property subject to a family farm security loan or a transaction subject to
136.13sections 583.20 to 583.32.

136.14    Sec. 8. [559.202] CONTRACTS FOR DEED INVOLVING RESIDENTIAL
136.15PROPERTY.
136.16    Subdivision 1. Notice required. (a) In addition to the disclosures required under
136.17sections 513.52 to 513.60, a multiple seller must deliver the notice specified under
136.18subdivision 3 to a prospective purchaser as provided under this subdivision.
136.19(b) If there is a purchase agreement, the notice must be affixed to the front of
136.20the purchase agreement. A contract for deed for which notice is required under this
136.21subdivision may not be executed for five business days following the execution of the
136.22purchase agreement and delivery of the notice and instructions for cancellation.
136.23(c) If there is no purchase agreement, a multiple seller must deliver the notice in a
136.24document separate from any other document or writing to a prospective purchaser no less
136.25than five business days before the prospective purchaser executes the contract for deed.
136.26(d) The notice must be:
136.27(1) written in at least 12-point type; and
136.28(2) signed and dated by the purchaser.
136.29(e) If a dispute arises concerning whether or when the notice required by this
136.30subdivision was provided to the purchaser, there is a rebuttable presumption that the notice
136.31was not provided unless the original executed contract for deed contains the following
136.32statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges
136.33receipt at least five business days before signing this contract for deed of the disclosure
136.34statement entitled "Important Information About Contracts for Deed" required by
136.35Minnesota Statutes, section 559.202, subdivision 3."
137.1    Subd. 2. Exception. This section does not apply if the purchaser is represented
137.2throughout the transaction by either:
137.3(1) a person licensed to practice law in this state; or
137.4(2) a person licensed as a real estate broker or salesperson under chapter 82,
137.5provided that the representation does not create a dual agency, as that term is defined
137.6in section 82.55, subdivision 6.
137.7    Subd. 3. Content of the notice. The notice must contain the following verbatim
137.8language:
137.9"IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED
137.10Know What You Are Getting Into
137.11(1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage
137.12foreclosure laws don't apply.
137.13(2) You should know ALL of your obligations and rights before you sign a purchase
137.14agreement or contract for deed.
137.15(3) You (seller must circle one):
137.16
(a)
DO
DO NOT
have to pay homeowner's insurance.
137.17
(b)
DO
DO NOT
have to pay property taxes.
137.18
137.19
(c)
DO
DO NOT
have to make and pay for some or all of the repairs or
maintenance, as described in the contract for deed.
137.20(4) After some time, you may need to make a large lump sum payment (called a "balloon
137.21payment"). Know when it is due and how much it will be. You'll probably need to get a
137.22new mortgage, another financial arrangement, or pay for the balance in cash at that time.
137.23(5) If you miss just a single payment or can't make the balloon payment, the seller can
137.24cancel your contract. You will likely lose all the money you have already paid. You will
137.25likely lose your ability to purchase the home. The seller can begin an eviction action
137.26against you in just a few months.
137.27(6) Within four months of signing the contract for deed, you must "record" it in the office
137.28of the county recorder or registrar of titles in the county in which the property is located.
137.29If you do not do so, you could face a fine.
137.30Key Things Highly Recommended Before You Sign
137.31(1) Get advice from a lawyer or the Minnesota Home Ownership Center at 1-866-462-6466
137.32or go to www.hocmn.org. To find a lawyer through the Minnesota State Bar Association,
137.33go to www.mnfindalawyer.com.
137.34(2) Get an independent, professional appraisal of the property to learn what it is worth.
137.35(3) Get an independent, professional inspection of the property.
137.36(4) Buy title insurance or ask a real estate lawyer for a "title opinion."
138.1(5) Check with the city or county to find out if there are inspection reports or unpaid
138.2utility bills.
138.3(6) Check with a title company or the county where the property is located to find out if
138.4there is a mortgage or other lien on the property and if the property taxes have been paid.
138.5(7) Ensure that your interest rate does not exceed the maximum allowed by law by calling
138.6the Department of Commerce at 651-297-7053 to get a recorded message for the current
138.7month's maximum rate.
138.8If You Are Entering into a Purchase Agreement
138.9(1) If you haven't already signed the contract for deed, you can cancel the purchase
138.10agreement (and get all your money back) if you do so within five business days after
138.11getting this notice.
138.12(2) To cancel the purchase agreement, you must follow the provisions of Minnesota
138.13Statutes, section 559.217, subdivision 4. Ask a lawyer for help."
138.14    Subd. 4. Right to cancel purchase agreement. (a) A prospective purchaser may
138.15cancel a purchase agreement within five business days after actually receiving the notice
138.16required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided
138.17that the contract for deed has not been executed by all parties.
138.18(b) A prospective purchaser may cancel the purchase agreement in accordance with
138.19the provisions of section 559.217, subdivision 4.
138.20(c) In the event of cancellation, the multiple seller may not impose a penalty and must
138.21promptly refund all payments made by the prospective purchaser prior to cancellation.
138.22    Subd. 5. Remedies for failure to timely deliver notices. (a) Notwithstanding
138.23any contrary provision in the purchase agreement or contract for deed, a purchaser has
138.24a private right of action against a multiple seller who fails to timely deliver the notice
138.25required under subdivision 1. The multiple seller is liable to the purchaser for:
138.26(1) the greater of actual damages or statutory damages of $2,500; and
138.27(2) reasonable attorney fees and court costs.
138.28(b) A multiple seller who knowingly fails to timely deliver the notice required
138.29under subdivision 1 is liable to the purchaser for triple the actual or statutory damages
138.30available under paragraph (a), whichever is greater, provided that the purchaser must elect
138.31the remedy provided under either paragraph (a) or this paragraph and may not recover
138.32damages under both paragraphs.
138.33(c) The rights and remedies provided in this subdivision are cumulative to, and not
138.34a limitation of, any other rights and remedies provided under law. An action brought
138.35pursuant to this subdivision must be commenced within four years from the date of the
138.36alleged violation.
139.1    Subd. 6. Effects of violation. A violation of this section has no effect on the
139.2validity of the contract.
139.3    Subd. 7. Duty of multiple seller to account. Upon reasonable request by the
139.4purchaser and no more than once every 12-month period, a multiple seller must provide an
139.5accounting of all payments made pursuant to the contract for deed, the amount of interest
139.6paid, and the amount remaining to satisfy the principal balance under the contract.
139.7    Subd. 8. No waiver. The provisions of this section may not be waived.
139.8EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
139.9transactions in which the contract for deed and the purchase agreement for the contract
139.10for deed, if any, were both executed on or after that date.

139.11    Sec. 9. Minnesota Statutes 2012, section 559.211, subdivision 2, is amended to read:
139.12    Subd. 2. Remedies additional. The remedies provided in this section are in
139.13addition to and do not limit other rights or remedies available to purchasers or vendors of
139.14real estate. Subject to the provisions of sections 559.213 and 559.217, subdivision 7, this
139.15section shall not be construed to bar a court from determining the validity, effectiveness,
139.16or consequences of proceeding under section 559.21 or 559.217, or granting other relief in
139.17connection therewith, by reason of the failure of a purchaser to seek or obtain relief under
139.18this section prior to the purported effective date of the termination of the contract.

139.19    Sec. 10. Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision 4,
139.20is amended to read:
139.21
Subd. 4.Administrative Services
4,247,000
4,247,000
139.22$375,000 each year is for additional
139.23compliance efforts with unclaimed property.
139.24The commissioner may issue contracts
139.25for these services. This additional amount
139.26shall be added to the base budget for fiscal
139.27years 2014 and 2015 only. The enhanced
139.28unclaimed property compliance program
139.29shall sunset June 30, 2015.

139.30    Sec. 11. SOLAR PHOTOVOLTAIC MODULES.
139.31No solar photovoltaic module may be installed that is financed directly or indirectly,
139.32wholly or in part, with money appropriated in this act, unless the solar photovoltaic
140.1module is made in Minnesota as defined in Minnesota Statutes, section 16B.323,
140.2subdivision 1, paragraph (b).

140.3    Sec. 12. INFORMATION ON COUNSELING AGENCIES.
140.4The commissioner of commerce shall consult with interested stakeholders in
140.5studying the possibility of providing on its Internet Web site a link, including contact
140.6information, for each of the counseling certification entities identified in Minnesota
140.7Statutes, section 58.13, subdivision 1, where a list of certified counselors and counseling
140.8agencies, including designations for nonprofit organizations, is available.

140.9    Sec. 13. REPEALER.
140.10Minnesota Statutes 2012, section 507.235, subdivision 4, is repealed effective the
140.11day following final enactment.

140.12ARTICLE 7
140.13UTILITY REGULATION

140.14    Section 1. Minnesota Statutes 2012, section 216B.16, subdivision 7b, is amended to
140.15read:
140.16    Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision
140.17of this chapter, the commission may approve a tariff mechanism for the automatic annual
140.18adjustment of charges for the Minnesota jurisdictional costs net of associated revenues of:
140.19    (i) new transmission facilities that have been separately filed and reviewed and
140.20approved by the commission under section 216B.243 or are certified as a priority project
140.21or deemed to be a priority transmission project under section 216B.2425; and
140.22    (ii) new transmission facilities approved by the regulatory commission of the state
140.23in which the new transmission facilities are to be constructed, to the extent approval
140.24is required by the laws of that state, and determined by the Midcontinent Independent
140.25System Operator to benefit the utility or integrated transmission system; and
140.26    (iii) charges incurred by a utility under a federally approved tariff that accrue
140.27from other transmission owners' regionally planned transmission projects that have been
140.28determined by the Midwest Midcontinent Independent System Operator to benefit the
140.29utility, as provided for under a federally approved tariff or integrated transmission system.
140.30    (b) Upon filing by a public utility or utilities providing transmission service, the
140.31commission may approve, reject, or modify, after notice and comment, a tariff that:
141.1    (1) allows the utility to recover on a timely basis the costs net of revenues of
141.2facilities approved under section 216B.243 or certified or deemed to be certified under
141.3section 216B.2425 or exempt from the requirements of section 216B.243;
141.4    (2) allows the utility to recover charges incurred by a utility under a federally
141.5approved tariff that accrue from other transmission owners' regionally planned
141.6transmission projects that have been determined by the Midwest Midcontinent Independent
141.7System Operator to benefit the utility, as provided for under a federally approved tariff
141.8 or integrated transmission system. These charges must be reduced or offset by revenues
141.9received by the utility and by amounts the utility charges to other regional transmission
141.10owners, to the extent those revenues and charges have not been otherwise offset;
141.11    (3) allows the utility to recover on a timely basis the costs net of revenues of facilities
141.12approved by the regulatory commission of the state in which the new transmission
141.13facilities are to be constructed and determined by the Midcontinent Independent System
141.14Operator to benefit the utility or integrated transmission system;
141.15    (4) allows a return on investment at the level approved in the utility's last general
141.16rate case, unless a different return is found to be consistent with the public interest;
141.17    (4) (5) provides a current return on construction work in progress, provided that
141.18recovery from Minnesota retail customers for the allowance for funds used during
141.19construction is not sought through any other mechanism;
141.20    (5) (6) allows for recovery of other expenses if shown to promote a least-cost project
141.21option or is otherwise in the public interest;
141.22    (6) (7) allocates project costs appropriately between wholesale and retail customers;
141.23    (7) (8) provides a mechanism for recovery above cost, if necessary to improve the
141.24overall economics of the project or projects or is otherwise in the public interest; and
141.25    (8) (9) terminates recovery once costs have been fully recovered or have otherwise
141.26been reflected in the utility's general rates.
141.27    (c) A public utility may file annual rate adjustments to be applied to customer bills
141.28paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
141.29    (1) a description of and context for the facilities included for recovery;
141.30    (2) a schedule for implementation of applicable projects;
141.31    (3) the utility's costs for these projects;
141.32    (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
141.33the project; and
141.34    (5) calculations to establish that the rate adjustment is consistent with the terms
141.35of the tariff established in paragraph (b).
142.1    (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
142.2paragraph (b), the commission shall approve the annual rate adjustments provided that,
142.3after notice and comment, the costs included for recovery through the tariff were or are
142.4expected to be prudently incurred and achieve transmission system improvements at the
142.5lowest feasible and prudent cost to ratepayers.

142.6    Sec. 2. Minnesota Statutes 2012, section 216B.1635, is amended to read:
142.7216B.1635 RECOVERY OF GAS UTILITY INFRASTRUCTURE COSTS.
142.8    Subdivision 1. Definitions. (a) "Gas utility" means a public utility as defined in
142.9section 216B.02, subdivision 4, that furnishes natural gas service to retail customers.
142.10(b) "Gas utility infrastructure costs" or "GUIC" means costs incurred in gas utility
142.11projects that:
142.12(1) do not serve to increase revenues by directly connecting the infrastructure
142.13replacement to new customers;
142.14(2) are in service but were not included in the gas utility's rate base in its most recent
142.15general rate case; and, or are planned to be in service during the period covered by the
142.16report submitted under subdivision 2, but in no case longer than the one year forecast
142.17period in the report; and
142.18(3) replace or modify existing infrastructure if the replacement or modification does
142.19not constitute a betterment, unless the betterment is required by a political subdivision,
142.20as evidenced by specific documentation from the government entity requiring the
142.21replacement or modification of infrastructure do not constitute a betterment, unless the
142.22betterment is based on requirements by a political subdivision or a federal or state agency,
142.23as evidenced by specific documentation, an order, or other similar requirement from the
142.24government entity requiring the replacement or modification of infrastructure.
142.25(c) "Gas utility projects" means relocation and:
142.26(1) replacement of natural gas facilities located in the public right-of-way required
142.27by the construction or improvement of a highway, road, street, public building, or other
142.28public work by or on behalf of the United States, the state of Minnesota, or a political
142.29subdivision.; and
142.30(2) replacement or modification of existing natural gas facilities, including surveys,
142.31assessments, reassessment, and other work necessary to determine the need for replacement
142.32or modification of existing infrastructure that is required by a federal or state agency.
142.33    Subd. 2. Gas infrastructure filing. (a) The commission may approve a gas utility's
142.34petition for a rate schedule A public utility submitting a petition to recover GUIC gas
142.35infrastructure costs under this section. A gas utility may must submit to the commission,
143.1the department, and interested parties a gas infrastructure project plan report and a petition
143.2the commission to recover a rate of return, income taxes on the rate of return, incremental
143.3property taxes, plus incremental depreciation expense associated with GUIC for rate
143.4recovery of only incremental costs associated with projects under subdivision 1, paragraph
143.5(c). The report and petition must be made at least 150 days in advance of implementation
143.6of the rate schedule, provided that the rate schedule will not be implemented until the
143.7petition is approved by the commission pursuant to subdivision 5. The report must be
143.8for a forecast period of one year.
143.9(b) The filing is subject to the following:
143.10(1) A gas utility may submit a filing under this section no more than once per year.
143.11(2) A gas utility must file sufficient information to satisfy the commission regarding
143.12the proposed GUIC or be subject to denial by the commission. The information includes,
143.13but is not limited to:
143.14(i) the government entity ordering the gas utility project and the purpose for which
143.15the project is undertaken;
143.16(ii) the location, description, and costs associated with the project;
143.17(iii) a description of the costs, and salvage value, if any, associated with the existing
143.18infrastructure replaced or modified as a result of the project;
143.19(iv) the proposed rate design and an explanation of why the proposed rate design
143.20is in the public interest;
143.21(v) the magnitude and timing of any known future gas utility projects that the utility
143.22may seek to recover under this section;
143.23(vi) the magnitude of GUIC in relation to the gas utility's base revenue as approved
143.24by the commission in the gas utility's most recent general rate case, exclusive of gas
143.25purchase costs and transportation charges;
143.26(vii) the magnitude of GUIC in relation to the gas utility's capital expenditures since
143.27its most recent general rate case;
143.28(viii) the amount of time since the utility last filed a general rate case and the utility's
143.29reasons for seeking recovery outside of a general rate case; and
143.30(ix) documentation supporting the calculation of the GUIC.
143.31    Subd. 3. Gas infrastructure project plan report. The gas infrastructure project
143.32plan report required to be filed under subdivision 2 shall include all pertinent information
143.33and supporting data on each proposed project including, but not limited to, project
143.34description and scope, estimated project costs, and project in-service date.
143.35    Subd. 4. Cost recovery petition for utility's facilities. Notwithstanding any other
143.36provision of this chapter, the commission may approve a rate schedule for the automatic
144.1annual adjustment of charges for gas utility infrastructure costs net of revenues under
144.2this section, including a rate of return, income taxes on the rate of return, incremental
144.3property taxes, incremental depreciation expense, and any incremental operation and
144.4maintenance costs. A gas utility's petition for approval of a rate schedule to recover
144.5gas utility infrastructure costs outside of a general rate case under section 216B.16, is
144.6subject to the following:
144.7(1) a gas utility may submit a filing under this section no more than once per year; and
144.8(2) a gas utility must file sufficient information to satisfy the commission regarding
144.9the proposed GUIC. The information includes, but is not limited to:
144.10(i) the information required to be included in the gas infrastructure project plan
144.11report under subdivision 3;
144.12(ii) the government entity ordering or requiring the gas utility project and the
144.13purpose for which the project is undertaken;
144.14(iii) a description of the estimated costs and salvage value, if any, associated with the
144.15existing infrastructure replaced or modified as a result of the project;
144.16(iv) a comparison of the utility's estimated costs included in the gas infrastructure
144.17project plan and the actual costs incurred, including a description of the utility's efforts to
144.18ensure the costs of the facilities are reasonable and prudently incurred;
144.19(v) calculations to establish that the rate adjustment is consistent with the terms
144.20of the rate schedule, including the proposed rate design and an explanation of why the
144.21proposed rate design is in the public interest;
144.22(vi) the magnitude and timing of any known future gas utility projects that the
144.23utility may seek to recover under this section;
144.24(vii) the magnitude of GUIC in relation to the gas utility's base revenue as approved
144.25by the commission in the gas utility's most recent general rate case, exclusive of gas
144.26purchase costs and transportation charges;
144.27(viii) the magnitude of GUIC in relation to the gas utility's capital expenditures
144.28since its most recent general rate case; and
144.29(ix) the amount of time since the utility last filed a general rate case and the utility's
144.30reasons for seeking recovery outside of a general rate case.
144.31    Subd. 5. Commission action. Upon receiving a gas utility report and petition for
144.32cost recovery under subdivision 2 and assessment and verification under subdivision 4, the
144.33commission may approve the annual GUIC rate adjustments provided that, after notice
144.34and comment, the costs included for recovery through the rate schedule are prudently
144.35incurred and achieve gas facility improvements at the lowest reasonable and prudent
144.36cost to ratepayers.
145.1    Subd. 6. Rate of return. The return on investment for the rate adjustment shall be
145.2at the level approved by the commission in the public utility's last general rate case, unless
145.3the commission determines that a different rate of return is in the public interest.
145.4    Subd. 3 7. Commission authority; rules. The commission may issue orders and
145.5adopt rules necessary to implement and administer this section.
145.6EFFECTIVE DATE.This section is effective the day following final enactment.

145.7    Sec. 3. Minnesota Statutes 2012, section 216B.1691, subdivision 2e, is amended to read:
145.8    Subd. 2e. Rate impact of standard compliance; report. Each electric utility must
145.9submit to the commission and the legislative committees with primary jurisdiction over
145.10energy policy a report containing an estimation of the rate impact of activities of the
145.11electric utility necessary to comply with this section. In consultation with the Department
145.12of Commerce, the commission shall determine a uniform reporting system to ensure that
145.13individual utility reports are consistent and comparable, and shall, by order, require each
145.14electric utility subject to this section to use that reporting system. The rate impact estimate
145.15must be for wholesale rates and, if the electric utility makes retail sales, the estimate
145.16shall also be for the impact on the electric utility's retail rates. Those activities include,
145.17without limitation, energy purchases, generation facility acquisition and construction, and
145.18transmission improvements. An initial report must be submitted within 150 days of May
145.1928, 2011. After the initial report, a report must be updated and submitted as part of each
145.20integrated resource plan or plan modification filed by the electric utility under section
145.21216B.2422 . The reporting obligation of an electric utility under this subdivision expires
145.22December 31, 2025, for an electric utility subject to subdivision 2a, paragraph (a), and
145.23December 31, 2020, for an electric utility subject to subdivision 2a, paragraph (b).

145.24    Sec. 4. Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to read:
145.25    Subdivision 1. Qualifying projects. (a) Projects that may be approved for the
145.26emissions reduction-rate rider allowed in this section must:
145.27(1) be installed on existing large electric generating power plants, as defined in
145.28section 216B.2421, subdivision 2, clause (1), that are located in the state and that are
145.29currently not subject to emissions limitations for new power plants under the federal Clean
145.30Air Act, United States Code, title 42, section 7401 et seq.;
145.31(2) not increase the capacity of the existing electric generating power plant more
145.32than ten percent or more than 100 megawatts, whichever is greater; and
145.33(3) result in the existing plant either:
146.1(i) complying with applicable new source review standards under the federal Clean
146.2Air Act; or
146.3(ii) emitting air contaminants at levels substantially lower than allowed for new
146.4facilities by the applicable new source performance standards under the federal Clean
146.5Air Act; or
146.6(iii) reducing emissions from current levels at a unit to the lowest cost-effective level
146.7when, due to the age or condition of the generating unit, the public utility demonstrates
146.8that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).
146.9(b) Notwithstanding paragraph (a), a project may be approved for the emission
146.10reduction rate rider allowed in this section if the project is to be installed on existing
146.11large electric generating power plants, as defined in section 216B.2421, subdivision 2,
146.12clause (1), that are located outside the state and are needed to comply with state or federal
146.13air quality standards, but only if the project has received an advance determination of
146.14prudence from the commission under section 216B.1695.
146.15EFFECTIVE DATE.This section is effective the day following final enactment.

146.16    Sec. 5. Minnesota Statutes 2012, section 216B.1692, is amended by adding a
146.17subdivision to read:
146.18    Subd. 1a. Exemption. Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not
146.19apply to projects qualifying under subdivision 1, paragraph (b).
146.20EFFECTIVE DATE.This section is effective the day following final enactment.

146.21    Sec. 6. Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:
146.22    Subd. 8. Sunset. This section is effective until December 31, 2015 2020, and
146.23applies to plans, projects, and riders approved before that date and modifications made to
146.24them after that date.

146.25    Sec. 7. Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:
146.26    Subd. 5. Cost recovery. The utility may begin recovery of costs that have been
146.27incurred by the utility in connection with implementation of the project in the next rate
146.28case following an advance determination of prudence or in a rider approved under section
146.29216B.1692. The commission shall review the costs incurred by the utility for the project.
146.30The utility must show that the project costs are reasonable and necessary, and demonstrate
146.31its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's
146.32prior determination of prudence, it may accept, modify, or reject any of the project costs.
147.1The commission may determine whether to require an allowance for funds used during
147.2construction offset.
147.3EFFECTIVE DATE.This section is effective the day following final enactment.

147.4    Sec. 8. Minnesota Statutes 2012, section 216B.1695, is amended by adding a
147.5subdivision to read:
147.6    Subd. 5a. Rate of return. The return on investment in the rider shall be at the
147.7level approved by the commission in the public utility's last general rate case, unless the
147.8commission determines that a different rate of return is in the public interest.
147.9EFFECTIVE DATE.This section is effective the day following final enactment.

147.10    Sec. 9. Laws 2005, chapter 97, article 10, section 3, is amended to read:
147.11    Sec. 3. SUNSET.
147.12    Sections 1 and 2 shall expire on June 30, 2015 2023.

147.13ARTICLE 8
147.14PACE

147.15    Section 1. Minnesota Statutes 2012, section 216C.435, is amended by adding a
147.16subdivision to read:
147.17    Subd. 3a. Cost-effective energy improvements. "Cost-effective energy
147.18improvements" mean energy improvements that have been identified in an energy audit
147.19or renewable energy system feasibility study as repaying their purchase and installation
147.20costs in 20 years or less, based on the amount of future energy saved and estimated future
147.21energy prices.
147.22EFFECTIVE DATE.This section is effective the day following final enactment.

147.23    Sec. 2. Minnesota Statutes 2012, section 216C.435, subdivision 8, is amended to read:
147.24    Subd. 8. Qualifying real property. "Qualifying real property" means a
147.25single-family or multifamily residential dwelling, or a commercial or industrial building,
147.26that the implementing entity has determined, after review of an energy audit or renewable
147.27energy system feasibility study, can be benefited by installation of cost-effective energy
147.28improvements.
147.29EFFECTIVE DATE.This section is effective the day following final enactment.

148.1    Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 2, is amended to read:
148.2    Subd. 2. Program requirements. A financing program must:
148.3(1) impose requirements and conditions on financing arrangements to ensure timely
148.4repayment;
148.5(2) require an energy audit or renewable energy system feasibility study to be
148.6conducted on the qualifying real property and reviewed by the implementing entity prior
148.7to approval of the financing;
148.8(3) require the inspection of all installations and a performance verification of at
148.9least ten percent of the energy improvements financed by the program;
148.10(4) not prohibit the financing of all cost-effective energy improvements not otherwise
148.11prohibited by this section;
148.12(5) require that all cost-effective energy improvements be made to a qualifying
148.13real property prior to, or in conjunction with, an applicant's repayment of financing for
148.14energy improvements for that property;
148.15(5) (6) have energy improvements financed by the program performed by licensed
148.16contractors as required by chapter 326B or other law or ordinance;
148.17(6) (7) require disclosures to borrowers by the implementing entity of the risks
148.18involved in borrowing, including the risk of foreclosure if a tax delinquency results from
148.19a default;
148.20(7) (8) provide financing only to those who demonstrate an ability to repay;
148.21(8) (9) not provide financing for a qualifying real property in which the owner is not
148.22current on mortgage or real property tax payments;
148.23(9) (10) require a petition to the implementing entity by all owners of the qualifying
148.24real property requesting collections of repayments as a special assessment under section
148.25429.101 ;
148.26(10) (11) provide that payments and assessments are not accelerated due to a default
148.27and that a tax delinquency exists only for assessments not paid when due; and
148.28(11) (12) require that liability for special assessments related to the financing runs
148.29with the qualifying real property.
148.30EFFECTIVE DATE.This section is effective the day following final enactment.

148.31    Sec. 4. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
148.32    Subd. 7. Repayment. An implementing entity that finances an energy improvement
148.33under this section must:
148.34(1) secure payment with a lien against the benefited qualifying real property; and
149.1(2) collect repayments as a special assessment as provided for in section 429.101
149.2or by charter, provided that special assessments may be made payable in up to 20 equal
149.3annual installments.
149.4If the implementing entity is an authority, the local government that authorized
149.5the authority to act as implementing entity shall impose and collect special assessments
149.6necessary to pay debt service on bonds issued by the implementing entity under subdivision
149.78, and shall transfer all collections of the assessments upon receipt to the authority.
149.8EFFECTIVE DATE.This section is effective the day following final enactment.

149.9    Sec. 5. Minnesota Statutes 2012, section 216C.436, subdivision 8, is amended to read:
149.10    Subd. 8. Bond issuance; repayment. (a) An implementing entity may issue
149.11revenue bonds as provided in chapter 475 for the purposes of this section, provided the
149.12revenue bond must not be payable more than 20 years from the date of issuance.
149.13(b) The bonds must be payable as to both principal and interest solely from the
149.14revenues from the assessments established in subdivision 7.
149.15(c) No holder of bonds issued under this subdivision may compel any exercise of the
149.16taxing power of the implementing entity that issued the bonds to pay principal or interest
149.17on the bonds, and if the implementing entity is an authority, no holder of the bonds may
149.18compel any exercise of the taxing power of the local government. Bonds issued under
149.19this subdivision are not a debt or obligation of the issuer or any local government that
149.20issued them, nor is the payment of the bonds enforceable out of any money other than the
149.21revenue pledged to the payment of the bonds.
149.22EFFECTIVE DATE.This section is effective the day following final enactment.

149.23    Sec. 6. Minnesota Statutes 2012, section 429.101, subdivision 2, is amended to read:
149.24    Subd. 2. Procedure for assessment. Any special assessment levied under
149.25subdivision 1 shall be payable in a single installment, or by up to ten equal annual
149.26installments as the council may provide, except that a special assessment made under an
149.27energy improvements financing program under subdivision 1, paragraph (c), may be
149.28repayable in up to 20 equal installments. With this exception these exceptions, sections
149.29429.061 , 429.071, and 429.081 shall apply to assessments made under this section.
149.30EFFECTIVE DATE.This section is effective the day following final enactment.

150.1ARTICLE 9
150.2DISTRIBUTED GENERATION

150.3    Section 1. Minnesota Statutes 2012, section 216B.164, subdivision 2, is amended to
150.4read:
150.5    Subd. 2. Applicability. This section as well as any rules promulgated by the
150.6commission to implement this section or the Public Utility Regulatory Policies Act
150.7of 1978, Public Law 95-617, Statutes at Large, volume 92, page 3117, and the Federal
150.8Energy Regulatory Commission regulations thereunder, Code of Federal Regulations,
150.9title 18, part 292, shall, unless otherwise provided in this section, apply to all Minnesota
150.10electric utilities, including cooperative electric associations and municipal electric utilities.

150.11    Sec. 2. Minnesota Statutes 2012, section 216B.164, is amended by adding a
150.12subdivision to read:
150.13    Subd. 2a. Definitions. (a) For the purposes of this section, the following terms
150.14have the meanings given them:
150.15(b) "Aggregated meter" means a meter located on the premises of a customer's
150.16owned or leased property that is contiguous with property containing the customer's
150.17designated meter.
150.18(c) "Capacity" means the number of megawatts alternating current (AC) at the point
150.19of interconnection between a distributed generation facility and a utility's electric system.
150.20(d) "Cogeneration" means a combined process whereby electrical and useful thermal
150.21energy are produced simultaneously.
150.22(e) "Contiguous property" means property owned or leased by the customer sharing
150.23a common border, without regard to interruptions in contiguity caused by easements,
150.24public thoroughfares, transportation rights-of-way, or utility rights-of-way.
150.25(f) "Customer" means the person who is named on the utility electric bill for the
150.26premises.
150.27(g) "Designated meter" means a meter that is physically attached to the customer's
150.28facility that the customer-generator designates as the first meter to which net metered
150.29credits are to be applied as the primary meter for billing purposes when the customer is
150.30serviced by more than one meter.
150.31(h) "Distributed generation" means a facility that:
150.32(1) has a capacity of ten megawatts or less;
150.33(2) is interconnected with a utility's distribution system, over which the commission
150.34has jurisdiction; and
151.1(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel,
151.2and may include waste heat, cogeneration, or fuel cell technology.
151.3(i) "High-efficiency distributed generation" means a distributed energy facility
151.4that has a minimum efficiency of 40 percent, as calculated under section 272.0211,
151.5subdivision 1.
151.6(j) "Net metered facility" means an electric generation facility constructed for the
151.7purpose of offsetting energy use through the use of renewable energy or high-efficiency
151.8distributed generation sources.
151.9(k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2.
151.10(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
151.11generation facility for the recovery of costs for the provision of standby services, as
151.12provided for in a utility's tariffs approved by the commission, necessary to make electricity
151.13service available to the distributed generation facility.

151.14    Sec. 3. Minnesota Statutes 2012, section 216B.164, subdivision 3, is amended to read:
151.15    Subd. 3. Purchases; small facilities. (a) This paragraph applies to cooperative
151.16electric associations and municipal utilities. For a qualifying facility having less than
151.1740-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility
151.18according to the applicable rate schedule for sales to that class of customer. In the case
151.19of net input into the utility system by a qualifying facility having less than 40-kilowatt
151.20capacity, compensation to the customer shall be at a per kilowatt-hour rate determined
151.21under paragraph (b) or (c) or (d).
151.22(b) This paragraph applies to public utilities. For a qualifying facility having less
151.23than 1,000-kilowatt capacity, the customer shall be billed for the net energy supplied by
151.24the utility according to the applicable rate schedule for sales to that class of customer. In
151.25the case of net input into the utility system by a qualifying facility having: (1) more than
151.2640-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be
151.27at a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt
151.28capacity, compensation to the customer shall be at a per-kilowatt rate determined under
151.29paragraph (d).
151.30(c) In setting rates, the commission shall consider the fixed distribution costs to the
151.31utility not otherwise accounted for in the basic monthly charge and shall ensure that the
151.32costs charged to the qualifying facility are not discriminatory in relation to the costs
151.33charged to other customers of the utility. The commission shall set the rates for net
151.34input into the utility system based on avoided costs as defined in the Code of Federal
152.1Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
152.2Federal Regulations, title 18, section 292.304, and all other relevant factors.
152.3(c) (d) Notwithstanding any provision in this chapter to the contrary, a qualifying
152.4facility having less than 40-kilowatt capacity may elect that the compensation for net input
152.5by the qualifying facility into the utility system shall be at the average retail utility energy
152.6rate. "Average retail utility energy rate" is defined as the average of the retail energy rates,
152.7exclusive of special rates based on income, age, or energy conservation, according to the
152.8applicable rate schedule of the utility for sales to that class of customer.
152.9(d) (e) If the qualifying facility or net metered facility is interconnected with a
152.10nongenerating utility which has a sole source contract with a municipal power agency
152.11or a generation and transmission utility, the nongenerating utility may elect to treat its
152.12purchase of any net input under this subdivision as being made on behalf of its supplier
152.13and shall be reimbursed by its supplier for any additional costs incurred in making the
152.14purchase. Qualifying facilities or net metered facilities having less than 40-kilowatt
152.15 1,000-kilowatt capacity if interconnected to a public utility, or less than 40-kilowatt
152.16capacity if interconnected to a cooperative electric association or municipal utility may, at
152.17the customer's option, elect to be governed by the provisions of subdivision 4.

152.18    Sec. 4. Minnesota Statutes 2012, section 216B.164, is amended by adding a
152.19subdivision to read:
152.20    Subd. 3a. Net metered facility. (a) Except for customers receiving a value of
152.21solar rate under subdivision 10, a customer with a net metered facility having more than
152.2240-kilowatt and less than 1,000-kilowatt capacity that is interconnected to a public utility
152.23may elect to be compensated for the customer's net input into the utility system in the form
152.24of a kilowatt-hour credit on the customer's energy bill carried forward and applied to
152.25subsequent energy bills. Any net input supplied by the customer into the utility system
152.26that exceeds energy supplied to the customer by the utility during a calendar year must be
152.27compensated at the applicable rate.
152.28(b) A public utility may not impose a standby charge on a net metered or qualifying
152.29facility:
152.30(1) of 100 kilowatts or less capacity; or
152.31(2) of more than 100 kilowatts capacity, except in accordance with an order of the
152.32commission establishing the allowable costs to be recovered through standby charges.

152.33    Sec. 5. Minnesota Statutes 2012, section 216B.164, subdivision 4, is amended to read:
153.1    Subd. 4. Purchases; wheeling; costs. (a) Except as otherwise provided in paragraph
153.2(c), this subdivision shall apply to all qualifying facilities having 40-kilowatt capacity or
153.3more as well as qualifying facilities as defined in subdivision 3 and net metered facilities
153.4under subdivision 3a, if interconnected to a cooperative electric association or municipal
153.5utility, or 1,000-kilowatt capacity or more if interconnected to a public utility, which elect
153.6to be governed by its provisions.
153.7(b) The utility to which the qualifying facility is interconnected shall purchase all
153.8energy and capacity made available by the qualifying facility. The qualifying facility shall
153.9be paid the utility's full avoided capacity and energy costs as negotiated by the parties, as
153.10set by the commission, or as determined through competitive bidding approved by the
153.11commission. The full avoided capacity and energy costs to be paid a qualifying facility
153.12that generates electric power by means of a renewable energy source are the utility's least
153.13cost renewable energy facility or the bid of a competing supplier of a least cost renewable
153.14energy facility, whichever is lower, unless the commission's resource plan order, under
153.15section 216B.2422, subdivision 2, provides that the use of a renewable resource to meet
153.16the identified capacity need is not in the public interest.
153.17(c) For all qualifying facilities having 30-kilowatt capacity or more, the utility
153.18shall, at the qualifying facility's or the utility's request, provide wheeling or exchange
153.19agreements wherever practicable to sell the qualifying facility's output to any other
153.20Minnesota utility having generation expansion anticipated or planned for the ensuing ten
153.21years. The commission shall establish the methods and procedures to insure that except
153.22for reasonable wheeling charges and line losses, the qualifying facility receives the full
153.23avoided energy and capacity costs of the utility ultimately receiving the output.
153.24(d) The commission shall set rates for electricity generated by renewable energy.

153.25    Sec. 6. Minnesota Statutes 2012, section 216B.164, is amended by adding a
153.26subdivision to read:
153.27    Subd. 4a. Aggregation of meters. (a) For the purpose of measuring electricity
153.28under subdivisions 3 and 3a, a public utility must aggregate for billing purposes a
153.29customer's designated meter with one or more aggregated meters if a customer requests
153.30that it do so. To qualify for aggregation under this subdivision, a meter must be owned by
153.31the customer requesting the aggregation, must be located on contiguous property owned
153.32by the customer requesting the aggregation, and the total of all aggregated meters must be
153.33subject to the size limitation in this section.
153.34(b) A public utility must comply with a request by a customer-generator to aggregate
153.35additional meters within 90 days. The specific meters must be identified at the time of the
154.1request. In the event that more than one meter is identified, the customer must designate
154.2the rank order for the aggregated meters to which the net metered credits are to be applied.
154.3At least 60 days prior to the beginning of the next annual billing period, a customer may
154.4amend the rank order of the aggregated meters, subject to this subdivision.
154.5(c) The aggregation of meters applies only to charges that use kilowatt-hours as the
154.6billing determinant. All other charges applicable to each meter account shall be billed to
154.7the customer.
154.8(d) A public utility will first apply the kilowatt-hour credit to the charges for the
154.9designated meter and then to the charges for the aggregated meters in the rank order
154.10specified by the customer. If the net metered facility supplies more electricity to the
154.11public utility than the energy usage recorded by the customer-generator's designated and
154.12aggregated meters during a monthly billing period, the public utility shall apply credits to
154.13the customer's next monthly bill for the excess kilowatt-hours.
154.14(e) With the commission's prior approval, a public utility may charge the
154.15customer-generator requesting to aggregate meters a reasonable fee to cover the
154.16administrative costs incurred in implementing the costs of this subdivision, pursuant to
154.17a tariff approved by the commission for a public utility.

154.18    Sec. 7. Minnesota Statutes 2012, section 216B.164, is amended by adding a
154.19subdivision to read:
154.20    Subd. 4b. Limiting cumulative generation. The commission may limit the
154.21cumulative generation of net metered facilities under subdivisions 3 and 3a. A public
154.22utility may request the commission to limit the cumulative generation of net metered
154.23facilities under subdivisions 3 and 3a upon a showing that such generation has reached
154.24four percent of the public utility's annual retail electricity sales. The commission may limit
154.25additional net metering obligations under this subdivision only after providing notice and
154.26opportunity for public comment. In determining whether to limit additional net metering
154.27obligations under this subdivision, the commission shall consider:
154.28(1) the environmental and other public policy benefits of net metered facilities;
154.29(2) the impact of net metered facilities on electricity rates for customers without
154.30net metered systems;
154.31(3) the effects of net metering on the reliability of the electric system;
154.32(4) technical advances or technical concerns; and
154.33(5) other statutory obligations imposed on the commission or on a utility.
155.1The commission may limit additional net metering obligations under clauses (2) to (4) only
155.2if it determines that additional net metering obligations would cause significant rate impact,
155.3require significant measures to address reliability, or raise significant technical issues.

155.4    Sec. 8. Minnesota Statutes 2012, section 216B.164, is amended by adding a
155.5subdivision to read:
155.6    Subd. 4c. Individual system capacity limits. (a) A public utility that provides retail
155.7electric service may require customers with a facility of 40-kilowatt capacity or more
155.8and participating in net metering and net billing to limit the total generation capacity of
155.9individual distributed generation systems by either:
155.10(1) for wind generation systems, limiting the total generation system capacity kilowatt
155.11alternating current to 120 percent of the customer's on-site maximum electric demand; or
155.12(2) for solar photovoltaic and other distributed generation limiting the total
155.13generation system annual energy production kilowatt hours alternating current to 120
155.14percent of the customer's on-site annual electric energy consumption.
155.15(b) Limits under paragraph (a) must be based on standard 15-minute intervals,
155.16measured during the previous 12 calendar months, or on a reasonable estimate of the
155.17average monthly maximum demand or average annual consumption if the customer has
155.18either:
155.19(i) less than 12 calendar months of actual electric usage; or
155.20(ii) no demand metering available.

155.21    Sec. 9. Minnesota Statutes 2012, section 216B.164, subdivision 6, is amended to read:
155.22    Subd. 6. Rules and uniform contract. (a) The commission shall promulgate rules
155.23to implement the provisions of this section. The commission shall also establish a uniform
155.24statewide form of contract for use between utilities and a net metered or qualifying facility
155.25having less than 40-kilowatt 1,000-kilowatt capacity if interconnected to a public utility
155.26or less than 40-kilowatt capacity if interconnected to a cooperative electric association
155.27or municipal utility.
155.28(b) The commission shall require the qualifying facility to provide the utility with
155.29reasonable access to the premises and equipment of the qualifying facility if the particular
155.30configuration of the qualifying facility precludes disconnection or testing of the qualifying
155.31facility from the utility side of the interconnection with the utility remaining responsible
155.32for its personnel.
155.33(c) The uniform statewide form of contract shall be applied to all new and existing
155.34interconnections established between a utility and a net metered or qualifying facility
156.1having less than 40-kilowatt capacity, except that existing contracts may remain in force
156.2until written notice of election that the uniform statewide contract form applies is given by
156.3either party to the other, with the notice being of the shortest time period permitted under
156.4the existing contract for termination of the existing contract by either party, but not less
156.5than ten nor longer than 30 days terminated by mutual agreement between both parties.

156.6    Sec. 10. Minnesota Statutes 2012, section 216B.164, is amended by adding a
156.7subdivision to read:
156.8    Subd. 10. Alternative tariff; compensation for resource value. (a) A public utility
156.9may apply for commission approval for an alternative tariff that compensates customers
156.10through a bill credit mechanism for the value to the utility, its customers, and society for
156.11operating distributed solar photovoltaic resources interconnected to the utility system and
156.12operated by customers primarily for meeting their own energy needs.
156.13(b) If approved, the alternative tariff shall apply to customers' interconnections
156.14occurring after the date of approval. The alternative tariff is in lieu of the applicable
156.15rate under subdivisions 3 and 3a.
156.16(c) The commission shall after notice and opportunity for public comment approve
156.17the alternative tariff provided the utility has demonstrated the alternative tariff:
156.18(1) appropriately applies the methodology established by the department and
156.19approved by the commission under this subdivision;
156.20(2) includes a mechanism to allow recovery of the cost to serve customers receiving
156.21the alternative tariff rate;
156.22(3) charges the customer for all electricity consumed by the customer at the
156.23applicable rate schedule for sales to that class of customer;
156.24(4) credits the customer for all electricity generated by the solar photovoltaic device
156.25at the distributed solar value rate established under this subdivision;
156.26(5) applies the charges and credits in clauses (3) and (4) to a monthly bill that
156.27includes a provision so that the unused portion of the credit in any month or billing period
156.28shall be carried forward and credited against all charges. In the event that the customer
156.29has a positive balance after the 12-month cycle ending on the last day in February, that
156.30balance will be eliminated and the credit cycle will restart the following billing period
156.31beginning on March 1;
156.32(6) complies with the size limits specified in subdivision 3a;
156.33(7) complies with the interconnection requirements under section 216B.1611; and
156.34(8) complies with the standby charge requirements in subdivision 3a, paragraph (b).
157.1(d) A utility must provide to the customer the meter and any other equipment needed
157.2to provide service under the alternative tariff.
157.3(e) The department must establish the distributed solar value methodology in
157.4paragraph (c), clause (1), no later than January 31, 2014. The department must submit
157.5the methodology to the commission for approval. The commission must approve, modify
157.6with the consent of the department, or disapprove the methodology within 60 days of its
157.7submission. When developing the distributed solar value methodology, the department
157.8shall consult stakeholders with experience and expertise in power systems, solar
157.9energy, and electric utility ratemaking regarding the proposed methodology, underlying
157.10assumptions, and preliminary data.
157.11(f) The distributed solar value methodology established by the department must,
157.12at a minimum, account for the value of energy and its delivery, generation capacity,
157.13transmission capacity, transmission and distribution line losses, and environmental
157.14value. The department may, based on known and measurable evidence of the cost or
157.15benefit of solar operation to the utility, incorporate other values into the methodology,
157.16including credit for locally manufactured or assembled energy systems, systems installed
157.17at high-value locations on the distribution grid, or other factors.
157.18(g) The credit for distributed solar value applied to alternative tariffs approved
157.19under this section shall represent the present value of the future revenue streams of the
157.20value components identified in paragraph (f).
157.21(h) The utility shall recalculate the alternative tariff on an annual cycle, and shall file
157.22the recalculated alternative tariff with the commission for approval.
157.23(i) Renewable energy credits for solar energy credited under this subdivision belong
157.24to the electric utility providing the credit.
157.25(j) The commission may not authorize a utility to charge an alternative tariff rate
157.26that is lower than the utility's applicable retail rate until three years after the commission
157.27approves an alternative tariff for the utility.
157.28(k) A utility must enter into a contract with an owner of a solar photovoltaic device
157.29receiving an alternative tariff rate under this section that has a term of at least 20 years,
157.30unless a shorter term is agreed to by the parties.
157.31(l) An owner of a solar photovoltaic device receiving an alternative tariff rate
157.32under this section must be paid the same rate per kilowatt-hour generated each year for
157.33the term of the contract.

158.1ARTICLE 10
158.2SOLAR ENERGY

158.3    Section 1. [116C.7792] SOLAR ENERGY INCENTIVE PROGRAM.
158.4The utility subject to section 116C.779 shall operate a program to provide solar
158.5energy production incentives for solar energy systems of no more than a total nameplate
158.6capacity of 20 kilowatts direct current. The program shall be operated for five consecutive
158.7calendar years commencing in 2014. $5,000,000 shall be allocated for each of the five
158.8years from the renewable development account established in section 116C.779 to a
158.9separate account for the purpose of the solar production incentive program. The solar
158.10system must be sized to less than 120 percent of the customer's on-site annual energy
158.11consumption. The production incentive must be paid for ten years commencing with
158.12the commissioning of the system. The utility must file a plan to operate the program
158.13with the commissioner of commerce. The utility may not operate the program until it is
158.14approved by the commissioner.

158.15    Sec. 2. [216B.1641] COMMUNITY SOLAR GARDEN.
158.16(a) The public utility subject to section 116C.779 shall file by September 30, 2013, a
158.17plan with the commission to operate a community solar garden program which shall begin
158.18operations within 90 days after commission approval of the plan. Other public utilities
158.19may file an application at their election. The community solar garden program must be
158.20designed to offset the energy use of not less than five subscribers in each community
158.21solar garden facility of which no single subscriber has more than a 40 percent interest.
158.22The owner of the community solar garden may be a public utility or any other entity or
158.23organization that contracts to sell the output from the community solar garden to the
158.24utility under section 216B.164. There shall be no limitation on the number or cumulative
158.25generating capacity of community solar garden facilities other than the limitations imposed
158.26under section 216B.164, subdivision 4c or other limitations provided in law or regulations.
158.27(b) A solar garden is a facility that generates electricity by means of a ground
158.28mounted or roof mounted solar photovoltaic device whereby subscribers receive a bill
158.29credit for the electricity generated in proportion to the size of their subscription. The solar
158.30garden must have a nameplate capacity of no more than one megawatt. Each subscription
158.31shall be sized to represent at least 200 watts of the community solar garden's generating
158.32capacity and to supply, when combined with other distributed generation resources serving
158.33the premises, no more than 120 percent of the average annual consumption of electricity
158.34by each subscriber at the premises to which the subscription is attributed.
159.1(c) The solar generation facility must be located in the service territory of the public
159.2utility filing the plan. Subscribers must be retail customers of the public utility located in
159.3the same county or a county contiguous to where the facility is located.
159.4(d) The public utility must purchase from the community solar garden all energy
159.5generated by the solar garden. The purchase shall be at the rate calculated under section
159.6216B.164, subdivision 10, or, until that rate for the public utility has been approved by
159.7the commission, the applicable retail rate. A solar garden is eligible for any incentive
159.8programs offered under either section 116C.7792 or section 216C.415. A subscriber's
159.9portion of the purchase shall be provided by a credit on the subscriber's bill.
159.10(e) The commission may approve, disapprove, or modify a community solar garden
159.11program. Any plan approved by the commission must:
159.12(1) reasonably allow for the creation, financing, and accessibility of community
159.13solar gardens;
159.14(2) establish uniform standards, fees, and processes for the interconnection
159.15of community solar garden facilities that allow the utility to recover reasonable
159.16interconnection costs for each community solar garden;
159.17(3) not apply different requirements to utility and non-utility community solar
159.18garden facilities;
159.19(4) be consistent with the public interest;
159.20(5) identify the information that must be provided to potential subscribers to ensure
159.21fair disclosure of future costs and benefits of subscriptions;
159.22(6) include a program implementation schedule;
159.23(7) identify all proposed rules, fees, and charges; and
159.24(8) identify the means by which the program will be promoted.
159.25(f) Notwithstanding any other law, neither the manager of nor the subscribers to a
159.26community solar garden facility shall be considered a utility solely as a result of their
159.27participation in the community solar garden facility.
159.28(g) Within 180 days of commission approval of a plan under this section, a utility
159.29shall begin crediting subscriber accounts for each community solar garden facility in
159.30its service territory, and shall file with the commissioner of commerce a description of
159.31its crediting system.
159.32(h) For the purposes of this section, the following terms have the meanings given:
159.33(1) "subscriber" means a retail customer of a utility who owns one or more
159.34subscriptions of a community solar garden facility interconnected with that utility; and
159.35(2) "subscription" means a contract between a subscriber and the owner of a solar
159.36garden.

160.1    Sec. 3. Minnesota Statutes 2012, section 216B.1691, is amended by adding a
160.2subdivision to read:
160.3    Subd. 2f. Solar energy standard. (a) In addition to the requirements of subdivisions
160.42a and 2b, each public utility shall generate or procure sufficient electricity generated
160.5by solar energy to serve its retail electricity customers in Minnesota so that by the end
160.6of 2020, at least 1.5 percent of the utility's total retail electric sales to retail customers in
160.7Minnesota is generated by solar energy. At least ten percent of the 1.5 percent goal must
160.8be met by solar energy generated by or procured from solar photovoltaic devices with a
160.9nameplate capacity of 20 kilowatts or less.
160.10(b) The solar energy standard established in this subdivision is subject to all the
160.11provisions of this section governing a utility's standard obligation under subdivision 2a .
160.12(c) It is an energy goal of the state of Minnesota that by 2030, ten percent of the
160.13retail electric sales in Minnesota be generated by solar energy.
160.14(d) For the purposes of calculating the total retail electric sales of a public utility
160.15under this subdivision, there shall be excluded retail electric sales to customers that are:
160.16(1) an iron mining extraction and processing facility, including a scram mining
160.17facility as defined in Minnesota Rules, part 6130.0100, subpart 16; or
160.18(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
160.19manufacturer.
160.20Those customers may not have included in the rates charged to them by the public
160.21utility any costs of satisfying the solar standard specified by this subdivision.
160.22(e) A public utility may not use energy used to satisfy the solar energy standard
160.23under this subdivision to satisfy its standard obligation under subdivision 2a. A public
160.24utility may not use energy used to satisfy the standard obligation under subdivision 2a to
160.25satisfy the solar standard under this subdivision.
160.26(f) Notwithstanding any law to the contrary, a solar renewable energy credit
160.27associated with a solar photovoltaic device installed and generating electricity in
160.28Minnesota after the effective date of this act but before 2020 may be used to meet the solar
160.29energy standard established under this subdivision.
160.30(g) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall
160.31file a report with the commission reporting its progress in achieving the solar energy
160.32standard established under this subdivision.

160.33    Sec. 4. Minnesota Statutes 2012, section 216B.2411, subdivision 3, is amended to read:
160.34    Subd. 3. Other provisions. (a) Electricity generated by a facility constructed with
160.35funds provided under this section and using an eligible renewable energy source may be
161.1counted toward the renewable energy objectives in section 216B.1691, subject to the
161.2provisions of that section, except as provided in paragraph (c).
161.3(b) Two or more entities may pool resources under this section to provide assistance
161.4jointly to proposed eligible renewable energy projects. The entities shall negotiate and
161.5agree among themselves for allocation of benefits associated with a project, such as the
161.6ability to count energy generated by a project toward a utility's renewable energy objectives
161.7under section 216B.1691, except as provided in paragraph (c). The entities shall provide a
161.8summary of the allocation of benefits to the commissioner. A utility may spend funds under
161.9this section for projects in Minnesota that are outside the service territory of the utility.
161.10(c) Electricity generated by a solar photovoltaic device constructed with funds
161.11provided under this section may be counted toward a public utility's solar energy standard
161.12under section 216B.1691, subdivision 2f.

161.13ARTICLE 11
161.14MADE IN MINNESOTA

161.15    Section 1. [216C.411] DEFINITIONS.
161.16For the purposes of sections 216C.411 to 216C.415, the following terms have the
161.17meanings given.
161.18(a) "Made in Minnesota" means the manufacture in this state of solar photovoltaic
161.19modules:
161.20(1) at a manufacturing facility located in Minnesota that is registered and authorized
161.21to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by
161.22Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved
161.23independent certification agency;
161.24(2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or
161.25an equivalent UL-approved independent certification agency, which must be physically
161.26applied to the modules at a manufacturing facility described in clause (1); and
161.27(3) that are manufactured in Minnesota:
161.28(i) by manufacturing processes that must include tabbing, stringing, and lamination;
161.29or
161.30(ii) by interconnecting low-voltage direct current photovoltaic elements that produce
161.31the final useful photovoltaic output of the modules.
161.32A solar photovoltaic module that is manufactured by attaching microinverters, direct
161.33current optimizers, or other power electronics to a laminate or solar photovoltaic
161.34module that has received UL 1703 certification marks outside Minnesota from UL, CSA
162.1International, Intertek, or an equivalent UL-approved independent certification agency is
162.2not "Made in Minnesota" under this paragraph.
162.3    (b) "Solar photovoltaic module" has the meaning given in section 116C.7791,
162.4subdivision 1, paragraph (e).
162.5EFFECTIVE DATE.This section is effective the day following final enactment.

162.6    Sec. 2. [216C.412] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
162.7INCENTIVE ACCOUNT.
162.8    Subdivision 1. Account established; account management. A "Made in
162.9Minnesota" solar energy production incentive account is established as a separate account
162.10in the special revenue fund in the state treasury. Earnings, such as interest, dividends,
162.11and any other earnings arising from account assets, must be credited to the account.
162.12Funds remaining in the account at the end of a fiscal year do not cancel to the general
162.13fund but remain in the account. There is annually appropriated from the account to the
162.14commissioner of commerce money sufficient to make the incentive payments under section
162.15216C.415, the transfers under 216C.416, and to administer sections 216C.412 to 216C.415.
162.16    Subd. 2. Payments from public utilities. (a) Beginning January 1, 2014, and
162.17each January 1 thereafter, through 2023, for a total of ten years, each electric public
162.18utility subject to section 216B.241 must annually pay to the commissioner of commerce
162.19five percent of the minimum amount it is required to spend on energy conservation
162.20improvements under section 216B.241, subdivision 1a. Payments under this subdivision
162.21must be included in the calculation of whether a utility's other spending on generation
162.22exceeds the limits authorized for spending on generation under section 216B.2411,
162.23subdivision 1, for investments proposed for commissioner of commerce approval after
162.24July 1, 2013. The limits on spending in section 216B.2411 do not limit or apply to
162.25payments required by this subdivision. Payments made under this paragraph count
162.26towards satisfying expenditure obligations of a public utility under section 216B.241,
162.27subdivision 1a. The commissioner shall, upon receipt of the funds, deposit them in the
162.28account established in subdivision 1. A public utility subject to this paragraph must be
162.29credited energy-savings for the purpose of satisfying its energy savings requirement under
162.30section 216B.241, subdivision 1c, based on its payment to the commissioner.
162.31(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning
162.32January 1, 2014, and continuing through January 1, 2023, for a total of ten years, the
162.33public utility that manages the account under section 116C.779 must annually pay from
162.34that account to the commissioner an amount that, when added to the total amount paid to
162.35the commissioner of commerce under paragraph (a), totals $15,000,000 annually. The
163.1commissioner shall, upon receipt of the payment, deposit it in the account established in
163.2subdivision 1.
163.3EFFECTIVE DATE.This section is effective the day following final enactment.

163.4    Sec. 3. [216C.413] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
163.5INCENTIVE; QUALIFICATION.
163.6    Subdivision 1. Application. A manufacturer of solar photovoltaic modules seeking
163.7to qualify those modules as eligible to receive the "Made in Minnesota" solar energy
163.8production incentive must submit an application to the commissioner of commerce on a
163.9form prescribed by the commissioner. The application must contain:
163.10(1) a technical description of the solar photovoltaic module and the processes used
163.11to manufacture it, excluding proprietary details;
163.12(2) documentation that the solar photovoltaic module meets all the required
163.13applicable parts of the "Made in Minnesota" definition in section 216C.411, including
163.14evidence of the UL 1703 right to mark for all solar photovoltaic modules seeking to
163.15qualify as "Made in Minnesota";
163.16(3) any additional nonproprietary information requested by the commissioner
163.17of commerce; and
163.18(4) certification signed by the chief executive officer of the manufacturing company
163.19attesting to the truthfulness of the contents of the application and supporting materials
163.20under penalty of perjury.
163.21    Subd. 2. Certification. If the commissioner determines that a manufacturer's solar
163.22photovoltaic module meets the definition of "Made in Minnesota" in section 216C.411, the
163.23commissioner shall issue the manufacturer a "Made in Minnesota" certificate containing
163.24the name and model numbers of the certified solar photovoltaic modules and the date of
163.25certification. The commissioner must issue or deny the issuance of a certificate within 90
163.26days of receipt of a completed application. A copy of the certificate must be provided to
163.27each purchaser of the solar photovoltaic module.
163.28    Subd. 3. Revocation of certification. The commissioner may revoke a certification
163.29of a module as "Made in Minnesota" if the commissioner finds that the module no longer
163.30meets the requirements to be certified. The revocation does not affect incentive payments
163.31awarded prior to the revocation.
163.32EFFECTIVE DATE.This section is effective the day following final enactment.

164.1    Sec. 4. [216C.414] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
164.2INCENTIVE.
164.3    Subdivision 1. Setting incentive. Within 90 days of a module being certified as
164.4"Made in Minnesota" the commissioner of commerce shall set a solar energy production
164.5incentive amount for that solar photovoltaic module for the purpose of the incentive
164.6payment under section 216C.415. The incentive is a performance-based financial
164.7incentive expressed as a per kilowatt-hour amount. The amount shall be used for incentive
164.8applications approved in the year to which the incentive amount is applicable for the
164.9ten-year duration of the incentive payments. An incentive amount must be calculated for
164.10each module for each calendar year, through 2023.
164.11    Subd. 2. Criteria for determining incentive amount. (a) The commissioner shall
164.12set the incentive payment amount by determining the average amount of incentive payment
164.13required to allow an average owner of installed solar photovoltaic modules a reasonable
164.14return on their investment. In setting the incentive amount the commissioner shall consider:
164.15(1) an estimate of the installed cost per kilowatt-direct current, based on the cost data
164.16supplied by the manufacturer in the application submitted under section 216C.413, and an
164.17estimate of the average installation cost based on a representative sample of Minnesota
164.18solar photovoltaic installed projects;
164.19(2) the average insolation rate in Minnesota;
164.20(3) an estimate of the decline in the generation efficiency of the solar photovoltaic
164.21modules over time;
164.22(4) the rate paid by public utilities to owners of solar photovoltaic modules under
164.23section 216B.164 or other law;
164.24(5) applicable federal tax incentives for installing solar photovoltaic modules; and
164.25(6) the estimated levelized cost per kilowatt-hour generated.
164.26(b) The commissioner shall annually, for incentive applications received in a year,
164.27revise each incentive amount based on the factors in paragraph (a), clauses (1) to (6),
164.28general market conditions, and the availability of other incentives. In no case shall the
164.29"Made in Minnesota" incentive amount result in the "Made in Minnesota" incentives paid
164.30exceeding 40 percent, net of average applicable taxes on the ten-year incentive payments,
164.31of the average historic installation cost per kilowatt. The commissioner may exceed the 40
164.32percent cap if the commissioner determines it is necessary to fully expend funds available
164.33for incentive payments in a particular year.
164.34    Subd. 3. Metering of production. A public utility must, at the expense of a customer,
164.35provide a meter to measure the production of a solar photovoltaic module system that is
164.36approved to receive incentive payments. The public utility must furnish the commissioner
165.1with information sufficient for the commissioner to determine the incentive payment. The
165.2information must be provided on a calendar year basis by no later than March 1. The
165.3commissioner shall provide a public utility with forms to use to provide the production
165.4information. A customer must attest to the accuracy of the production information.
165.5    Subd. 4. Payment due date. Payments must be made no later than July 1 following
165.6the year of production.
165.7    Subd. 5. Renewable energy credits. Renewable energy credits associated with
165.8energy provided to a public utility for which an incentive payment is made belong to
165.9the utility.

165.10    Sec. 5. [216C.415] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
165.11INCENTIVE; PAYMENT.
165.12    Subdivision 1. Incentive payment. Incentive payments may be made under this
165.13section only to an owner of grid-connected solar photovoltaic modules with a total
165.14nameplate capacity below 40 kilowatts direct current who:
165.15(1) has submitted to the commissioner, on a form established by the commissioner,
165.16an application to receive the incentive that has been approved by the commissioner;
165.17(2) has received a "Made in Minnesota" certificate under section 216C.413 for
165.18the module; and
165.19(3) has installed on residential or commercial property solar photovoltaic modules
165.20that are generating electricity and has received a "Made in Minnesota" certificate under
165.21section 216C.413.
165.22    Subd. 2. Application process. Applications for an incentive payment must be
165.23received by the commissioner between January 1 and February 28. The commissioner
165.24shall by a random method approve the number of applications the commissioner
165.25reasonably determines will exhaust the funds available for payment for the ten-year period
165.26of incentive payments. Applications for residential and commercial installations shall be
165.27separately randomly approved.
165.28    Subd. 3. Commissioner approval of incentive application. The commissioner
165.29must approve an application for an incentive for an owner to be eligible for incentive
165.30payments. The commissioner must not approve an application in a calendar year if the
165.31commissioner determines there will not be sufficient funding available to pay an incentive
165.32to the applicant for any portion of the ten-year duration of payment. The commissioner
165.33shall annually establish a cap on the cumulative capacity for a program year based on
165.34funds available and historic average installation costs. Receipt of an incentive is not
166.1an entitlement and payment need only be made from available funds in the "Made in
166.2Minnesota" solar production incentive account.
166.3    Subd. 4. Eligibility window; payment duration. (a) Payments may be made under
166.4this section only for electricity generated from new solar photovoltaic module installations
166.5that are commissioned between January 1, 2014, and December 31, 2023.
166.6(b) The payment eligibility window of the incentive begins and runs consecutively
166.7from the date the solar system is commissioned.
166.8(c) An owner of solar photovoltaic modules may receive payments under this
166.9section for a particular module for a period of ten years provided that sufficient funds are
166.10available in the account.
166.11(d) No payment may be made under this section for electricity generated after
166.12December 31, 2033.
166.13(e) An owner of solar photovoltaic modules may not first begin to receive payments
166.14under this section after December 31, 2024.
166.15    Subd. 5. Allocation of payments. (a) If there are sufficient applications,
166.16approximately 50 percent of the incentive payment shall be for owners of eligible solar
166.17photovoltaic modules installed on residential property, and approximately 50 percent shall
166.18be for owners of eligible solar photovoltaic modules installed on commercial property.
166.19(b) The commissioner shall endeavor to distribute incentives paid under this section
166.20to owners of solar photovoltaic modules installed in a manner so that the amount of
166.21payments received in an area of the state reasonably approximates the amount of payments
166.22made by a utility serving that area.
166.23(c) For purposes of this subdivision:
166.24(1) "residential property" means residential real estate that is occupied and used as a
166.25homestead by its owner or by a renter and includes "multifamily housing development"
166.26as defined in section 462C.02, subdivision 5, except that residential property on which
166.27solar photovoltaic modules (i) whose capacity exceeds 10 kilowatts is installed; or (ii)
166.28connected to a utility's distribution system and whose electricity is purchased by several
166.29residents, each of whom own a share of the electricity generated, shall be deemed
166.30commercial property; and
166.31(2) "commercial property" means real property on which is located a business,
166.32government, or nonprofit establishment.
166.33    Subd. 6. Limitation. An owner receiving an incentive payment under this section
166.34may not receive a rebate under section 116C.7791 for the same solar photovoltaic modules.
166.35EFFECTIVE DATE.This section is effective the day following final enactment.

167.1    Sec. 6. [216C.416] SOLAR THERMAL REBATES.
167.2    Subdivision 1. Rebate program created. The commissioner of commerce shall
167.3operate a program to provide rebates for the installation of "Made in Minnesota" solar
167.4thermal systems in the state. "Solar thermal system" means a flat plate or evacuated tube
167.5that meets the requirements of section 216C.25 with a fixed orientation that collects the
167.6sun's radiant energy and transfers it to a storage medium for distribution as energy to heat
167.7or cool air or water. A solar thermal system is "Made in Minnesota" if components of the
167.8system are manufactured in Minnesota and the solar thermal system is certified by the
167.9Solar Rating and Certification Corporation. The solar thermal system may be installed in
167.10residential and commercial facilities for, among other purposes, hot water, space heating,
167.11or pool heating purposes.
167.12    Subd. 2. Account; funding. (a) The solar thermal system rebate account is created
167.13as a separate account in the special revenue fund in the state treasury. Earnings, such as
167.14interest, dividends, and any other earnings arising from account assets, must be credited to
167.15the account. Funds in the account are appropriated to the commissioner of commerce for the
167.16purpose of making the rebate payments under this section and administering this section.
167.17(b) Beginning January 1, 2014, and each January 1 thereafter to January 1, 2023, the
167.18commissioner of commerce shall annually transfer $250,000 from the account created in
167.19section 216C.412, for deposit in the account created in this subdivision.
167.20(c) To the extent there are sufficient applications, the commissioner shall annually
167.21spend for rebates under this section from 2014 to 2023, for a total of ten years,
167.22approximately $250,000 per year. If sufficient applications are not received to spend the
167.23money available for rebates in a year under this section, the unspent money must be
167.24returned to the account from which it was transferred, provided that funds available for
167.252014 applications shall remain available for 2015 applications.
167.26    Subd. 3. Individual incentives. The maximum rebate for a single family residential
167.27dwelling installation is the lesser of 25 percent of the installed cost of a complete system or
167.28$2,500. The maximum rebate for a multiple family residential dwelling installation is the
167.29lesser of 25 percent of the installed cost of a complete system or $5,000. The maximum
167.30rebate for a commercial installation is the lesser of 25 percent of the installation cost of
167.31the complete system or $25,000. The system must be installed by a factory authorized
167.32installer. The commissioner shall allocate approximately 50 percent of the rebates in each
167.33year to solar thermal hot water and 50 percent to solar thermal air projects if sufficient
167.34applications are made for each.
167.35    Subd. 4. Application process. Applications for incentives must be made to the
167.36commissioner of commerce on forms provided by the commissioner. The commissioner
168.1shall use a random process for the selection of recipients of incentives except to the extent
168.2necessary to allocate rebates as required by this section.
168.3EFFECTIVE DATE.This section is effective the day following final enactment.

168.4ARTICLE 12
168.5ENERGY POLICY DEVELOPMENT

168.6    Section 1. [3.8852] PLANNING STRATEGY FOR SUSTAINABLE ENERGY
168.7FUTURE.
168.8(a) The Legislative Energy Commission, in consultation with the commissioner of
168.9commerce and other state agencies, shall develop a framework for the state of Minnesota to
168.10transition to a renewable energy economy that ends Minnesota's contribution to greenhouse
168.11gases from burning fossil fuels within the next few decades. The framework and strategy
168.12should aim to make Minnesota the first state in the nation to use only renewable energy.
168.13(b) In developing the framework for this transition, the commission must consult
168.14with stakeholders, including, but not limited to, representatives from cooperative,
168.15municipal, and investor-owned utilities, natural resources and environmental advocacy
168.16groups, labor and industry, and technical and scientific experts to examine the challenges
168.17and opportunities involved to develop a strategy and timeline to protect the environment
168.18and create jobs. The timeline must establish goals and strategies to reach the state's
168.19renewable energy standards and prepare for the steps beyond reaching those standards. The
168.20Department of Commerce, Division of Energy Resources shall provide technical support.
168.21(c) The commission and its stakeholders must consider the following in creating
168.22the framework:
168.23(1) the economic and environmental costs of continued reliance on fossil fuels;
168.24(2) the creation of jobs and industry in the state that result from moving ahead of
168.25other states in transitioning to a sustainable energy economy;
168.26(3) the appropriate energy efficiency and renewable energy investments in
168.27Minnesota to reduce the economic losses to the Minnesota economy from importation
168.28of fossil fuels; and
168.29(4) the new technologies for energy efficiency, storage, transmission, and renewable
168.30generation needed to reliably meet the demand for energy.
168.31(d) The framework shall be modified as needed to take advantage of new
168.32technological developments to facilitate ending fossil fuel use in power generation,
168.33heating and cooling, industry, and transportation.
169.1(e) The commission shall report to the legislative committees and divisions with
169.2jurisdiction over energy policy by January 15, 2014, and annually thereafter, on progress
169.3towards achieving the framework goals.

169.4    Sec. 2. Minnesota Statutes 2012, section 216B.2401, is amended to read:
169.5216B.2401 ENERGY CONSERVATION SAVINGS POLICY GOAL.
169.6    The legislature finds that energy savings are an energy resource, and that
169.7cost-effective energy savings are preferred over all other energy resources. The legislature
169.8further finds that cost-effective energy savings should be procured systematically and
169.9aggressively in order to reduce utility costs for businesses and residents, improve the
169.10competitiveness and profitability of businesses, create more energy-related jobs, reduce the
169.11economic burden of fuel imports, and reduce pollution and emissions that cause climate
169.12change. Therefore, it is the energy policy of the state of Minnesota to achieve annual
169.13energy savings equal to at least 1.5 percent of annual retail energy sales of electricity and
169.14natural gas directly through cost-effective energy conservation improvement programs
169.15and rate design, and indirectly through energy efficiency achieved by energy consumers
169.16without direct utility involvement, energy codes and appliance standards, programs
169.17designed to transform the market or change consumer behavior, energy savings resulting
169.18from efficiency improvements to the utility infrastructure and system, and other efforts to
169.19promote energy efficiency and energy conservation.

169.20    Sec. 3. Minnesota Statutes 2012, section 216C.05, is amended to read:
169.21216C.05 FINDINGS AND PURPOSE.
169.22    Subdivision 1. Energy planning. The legislature finds and declares that continued
169.23growth in demand for energy will cause severe social and economic dislocations, and that
169.24the state has a vital interest in providing for: increased efficiency in energy consumption,
169.25the development and use of renewable energy resources wherever possible, and the
169.26creation of an effective energy forecasting, planning, and education program.
169.27    The legislature further finds and declares that the protection of life, safety, and
169.28financial security for citizens during an energy crisis is of paramount importance.
169.29    Therefore, the legislature finds that it is in the public interest to review, analyze, and
169.30encourage those energy programs that will minimize the need for annual increases in fossil
169.31fuel consumption by 1990 and the need for additional electrical generating plants, and
169.32provide for an optimum combination of energy sources and energy conservation consistent
169.33with environmental protection and the protection of citizens.
170.1    The legislature intends to monitor, through energy policy planning and
170.2implementation, the transition from historic growth in energy demand to a period when
170.3demand for traditional fuels becomes stable and the supply of renewable energy resources
170.4is readily available and adequately utilized.
170.5The legislature further finds that for economic growth, environmental improvement,
170.6and protection of citizens, it is in the public interest to encourage those energy programs
170.7that will provide an optimum combination of energy resources, including energy savings.
170.8Therefore, the legislature, through its committees, must monitor and evaluate
170.9progress towards greater reliance on cost-effective energy efficiency and renewable
170.10energy and lesser dependence on fossil fuels in order to reduce the economic burden
170.11of fuel imports, diversify utility-owned and consumer-owned energy resources, reduce
170.12utility costs for businesses and residents, improve the competitiveness and profitability of
170.13Minnesota businesses, create more energy-related jobs that contribute to the Minnesota
170.14economy, and reduce pollution and emissions that cause climate change.
170.15    Subd. 2. Energy policy goals. It is the energy policy of the state of Minnesota that:
170.16(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
170.17electricity and natural gas be achieved through cost-effective energy efficiency;
170.18    (1) (2) the per capita use of fossil fuel as an energy input be reduced by 15 percent
170.19by the year 2015, through increased reliance on energy efficiency and renewable energy
170.20alternatives; and
170.21    (2) (3) 25 percent of the total energy used in the state be derived from renewable
170.22energy resources by the year 2025.

170.23    Sec. 4. INTEGRATION AND TRANSMISSION STUDY FOR FUTURE
170.24RENEWABLE ENERGY STANDARD.
170.25(a) The commission shall order all Minnesota electric utilities, as defined in
170.26Minnesota Statutes, section 216B.1691, subdivision 1, paragraph (b), and all transmission
170.27companies, as defined in Minnesota Statutes, section 216B.02, to conduct an engineering
170.28study of the impacts on reliability and costs of, and to study and develop plans for the
170.29transmission network enhancements necessary to support, increasing the renewable energy
170.30standard established in Minnesota Statutes, section 216B.1691, subdivision 2a, to 40
170.31percent by 2030, and to higher proportions thereafter, while maintaining system reliability.
170.32(b) The Minnesota electric utilities and transmission companies must complete the
170.33study work under the direction of the commissioner of commerce. Prior to the start of the
170.34study, the commissioner, in consultation with Minnesota electric utilities and transmission
170.35companies, shall appoint a technical review committee consisting of up to 15 individuals
171.1with experience and expertise in electric transmission system engineering, electric power
171.2systems operations, and renewable energy generation technology to review the study's
171.3proposed methods and assumptions, ongoing work, and preliminary results.
171.4(c) As part of the planning process, the Minnesota electric utilities and transmission
171.5companies must incorporate and build upon the analyses that have previously been done
171.6or that are in progress including but not limited to the 2006 Minnesota Wind Integration
171.7Study and ongoing work to address geographically dispersed development plans, the
171.82007 Minnesota Transmission for Renewable Energy Standard Study, the 2008 and 2009
171.9Statewide Studies of Dispersed Renewable Generation, the 2009 Minnesota RES Update,
171.10Corridor, and Capacity Validation Studies, the 2010 Regional Generation Outlet Study,
171.11the 2011 Multi Value Project Portfolio Study, and recent and ongoing Midcontinent
171.12Independent System Operator transmission expansion planning work. The utilities and
171.13transmission companies shall collaborate with the Midcontinent Independent System
171.14Operator to optimize and integrate, to the extent possible, Minnesota's transmission plans
171.15with other regional considerations and to encourage the Midcontinent Independent System
171.16Operator to incorporate Minnesota's planning work into its transmission expansion future
171.17planning.
171.18(d) The study must be completed and submitted to the Minnesota Public Utilities
171.19Commission by November 1, 2014. The report shall include a description of the analyses
171.20that have been conducted and the results, including:
171.21(1) a conceptual plan for transmission necessary for generation interconnection and
171.22delivery and for access to regional geographic diversity and regional supply and demand
171.23side flexibility; and
171.24(2) identification and development of potential solutions to any critical issues
171.25encountered to support increasing the renewable energy standard to 40 percent by 2030,
171.26and to higher proportions thereafter, while maintaining system reliability.

171.27    Sec. 5. VALUE OF ON-SITE ENERGY STORAGE STUDY.
171.28(a) The commissioner of commerce shall contract with an independent consultant
171.29selected through a request for proposal process to produce a report analyzing the potential
171.30costs and benefits of installing utility-managed, grid-connected energy storage devices in
171.31residential and commercial buildings in this state. The study must:
171.32(1) estimate the potential value of on-site energy storage devices as a
171.33load-management tool to reduce costs for individual customers and for the utility, including
171.34but not limited to reductions in energy, particularly peaking, costs, and capacity costs;
172.1(2) examine the interaction of energy storage devices with on-site solar photovoltaic
172.2devices; and
172.3(3) analyze existing barriers to the installation of on-site energy storage devices by
172.4utilities, and examine strategies and design potential economic incentives to overcome
172.5those barriers.
172.6(b) The commissioner of commerce shall assess an amount necessary under
172.7Minnesota Statutes, section 216B.241, subdivision 1e, in addition to the assessment
172.8already authorized under that subdivision, for the purpose of completing the study
172.9described in this section.
172.10    (c) By January 1, 2014, the commissioner of commerce shall submit the study to
172.11the chairs and ranking minority members of the legislative committees with jurisdiction
172.12over energy policy and finance.

172.13    Sec. 6. VALUE OF SOLAR THERMAL STUDY.
172.14(a) The commissioner of commerce shall contract with an independent consultant
172.15selected through a request for proposal process to produce a report analyzing the potential
172.16costs and benefits of expanding the installation of solar thermal projects, as defined in
172.17Minnesota Statutes, section 216B.2411, subdivision 2, in residential and commercial
172.18buildings in this state. The study must examine the potential for solar thermal projects
172.19to reduce heating and cooling costs for individual customers and to reduce costs at the
172.20utility level as well. The study must also analyze existing barriers to the installation of
172.21on-site energy storage devices by utilities and examine strategies and design potential
172.22economic incentives to overcome those barriers. By January 1, 2014, the commissioner
172.23of commerce shall submit the study to the chairs and ranking minority members of the
172.24legislative committees with jurisdiction over energy policy and finance.
172.25(b) The commissioner of commerce shall assess an amount necessary under
172.26Minnesota Statutes, section 216B.241, subdivision 1e, in addition to the assessment
172.27already authorized under that subdivision, for the purpose of completing the study
172.28described in this section.

172.29    Sec. 7. SCOPING FOR RENEWABLE ENERGY STUDY.
172.30(a) The commissioner of commerce, in consultation with the Legislative Energy
172.31Commission, shall develop the scope for a Minnesota energy future study on how
172.32Minnesota can achieve a sustainable energy system that does not rely on the burning
172.33of fossil fuels.
173.1(b) The study must include energy use in the electrical, transportation, thermal and
173.2industrial sectors of the state economy. The study shall evaluate options for different
173.3mixes of renewable energy, efficiency, energy storage, and new technologies that can
173.4best transform each sector of energy use to become fully sustainable and no longer rely
173.5on fossil fuels in a cost-effective manner.
173.6(c) The study must analyze both costs and benefits. The study must include at least
173.7the following considerations: system reliability, utility rates, energy prices, jobs, economic
173.8development, public health, and environmental quality. Calculation of costs and benefits
173.9must be based on full cost, life-cycle accounting methods that include the benefits of
173.10avoided externalities. The study must be designed to develop appropriate timelines and
173.11accommodate modifications that will occur as new technologies and efficiencies develop.
173.12(d) In developing the scope, the commissioner shall engage stakeholders concerning
173.13the study's parameters and assumptions. The commissioner must report the results of
173.14the scoping process to the Legislative Energy Commission by January 1, 2014. The
173.15commissioner may assess up to $100,000 under Minnesota Statutes, section 216B.62, to
173.16scope and develop this energy study proposal.
173.17EFFECTIVE DATE.This section is effective the day following final enactment.

173.18    Sec. 8. DEPARTMENT OF COMMERCE; DIVISION OF ENERGY
173.19RESOURCES; STUDY.
173.20(a) The Division of Energy Resources of the Department of Commerce must conduct
173.21public meetings with stakeholders and members of the public and shall produce a report
173.22on findings and legislative recommendations to accomplish the following purposes:
173.23(1) clarify statewide energy-savings policies and utility energy-savings goals;
173.24(2) maximize long-term cost-effective energy savings and minimize energy waste;
173.25(3) maximize carbon reductions and economic benefits by increasing the efficiency
173.26of all sectors of the state's energy system;
173.27(4) minimize total utility costs and rate impacts for ratepayers in all sectors;
173.28(5) determine appropriate funding sources for nonconservation projects and
173.29programs, cogeneration, and combined heat and power projects;
173.30(6) determine the appropriate consideration in the integrated resource planning and
173.31certificate of need processes of the requirements to meet the state's energy conservation
173.32and renewable energy goals; and
173.33(7) provide the utility the appropriate incentives to meet the state's energy
173.34conservation and renewable energy goals.
174.1(b) The report must be submitted by January 15, 2014, to the chairs and ranking
174.2minority members of the committees of the legislature with primary jurisdiction over
174.3energy policy.
174.4(c) The division must provide public notice of the meetings.
174.5EFFECTIVE DATE.This section is effective the day following final enactment.

174.6ARTICLE 13
174.7MISCELLANEOUS

174.8    Section 1. Minnesota Statutes 2012, section 16C.144, subdivision 2, is amended to read:
174.9    Subd. 2. Guaranteed energy-savings agreement. The commissioner may enter
174.10into a guaranteed energy-savings agreement with a qualified provider if:
174.11(1) the qualified provider is selected through a competitive process in accordance
174.12with the guaranteed energy-savings program guidelines within the Department of
174.13Administration;
174.14(2) the qualified provider agrees to submit an engineering report prior to the
174.15execution of the guaranteed energy-savings agreement. The cost of the engineering report
174.16may be considered as part of the implementation costs if the commissioner enters into a
174.17guaranteed energy-savings agreement with the provider;
174.18(3) the term of the guaranteed energy-savings agreement shall not exceed 15 25
174.19 years from the date of final installation;
174.20(4) the commissioner finds that the amount it would spend on the utility cost-savings
174.21measures recommended in the engineering report will not exceed the amount to be
174.22saved in utility operation and maintenance costs over 15 25 years from the date of
174.23implementation of utility cost-savings measures;
174.24(5) the qualified provider provides a written guarantee that the annual utility,
174.25operation, and maintenance cost savings during the term of the guaranteed energy-savings
174.26agreement will meet or exceed the annual payments due under a lease purchase agreement.
174.27The qualified provider shall reimburse the state for any shortfall of guaranteed utility,
174.28operation, and maintenance cost savings; and
174.29(6) the qualified provider gives a sufficient bond in accordance with section
174.30574.26 to the commissioner for the faithful implementation and installation of the utility
174.31cost-savings measures.

174.32    Sec. 2. Minnesota Statutes 2012, section 216B.241, subdivision 1, is amended to read:
174.33    Subdivision 1. Definitions. For purposes of this section and section 216B.16,
174.34subdivision 6b
, the terms defined in this subdivision have the meanings given them.
175.1    (a) "Commission" means the Public Utilities Commission.
175.2    (b) "Commissioner" means the commissioner of commerce.
175.3    (c) "Department" means the Department of Commerce.
175.4    (d) "Energy conservation" means demand-side management of energy supplies
175.5resulting in a net reduction in energy use. Load management that reduces overall energy
175.6use is energy conservation.
175.7    (e) "Energy conservation improvement" means a project that results in energy
175.8efficiency or energy conservation. Energy conservation improvement may include waste
175.9heat recovery that is recovered and converted into electricity, but does not include electric
175.10utility infrastructure projects approved by the commission under section 216B.1636.
175.11 Energy conservation improvement also includes waste heat recovered and used as thermal
175.12energy.
175.13    (f) "Energy efficiency" means measures or programs, including energy conservation
175.14measures or programs, that target consumer behavior, equipment, processes, or devices
175.15designed to produce either an absolute decrease in consumption of electric energy or natural
175.16gas or a decrease in consumption of electric energy or natural gas on a per unit of production
175.17basis without a reduction in the quality or level of service provided to the energy consumer.
175.18    (g) "Gross annual retail energy sales" means annual electric sales to all retail
175.19customers in a utility's or association's Minnesota service territory or natural gas
175.20throughput to all retail customers, including natural gas transportation customers, on a
175.21utility's distribution system in Minnesota. For purposes of this section, gross annual
175.22retail energy sales exclude:
175.23(1) gas sales to:
175.24(i) a large energy facility;
175.25(ii) a large customer facility whose natural gas utility has been exempted by the
175.26commissioner under subdivision 1a, paragraph (b), with respect to natural gas sales made
175.27to the large customer facility; and
175.28(iii) a commercial gas customer facility whose natural gas utility has been exempted
175.29by the commissioner under subdivision 1a, paragraph (c), with respect to natural gas sales
175.30made to the commercial gas customer facility; and
175.31(2) electric sales to a large customer facility whose electric utility has been exempted
175.32by the commissioner under subdivision 1a, paragraph (b), with respect to electric sales
175.33made to the large customer facility.
175.34    (h) "Investments and expenses of a public utility" includes the investments
175.35and expenses incurred by a public utility in connection with an energy conservation
175.36improvement, including but not limited to:
176.1    (1) the differential in interest cost between the market rate and the rate charged on a
176.2no-interest or below-market interest loan made by a public utility to a customer for the
176.3purchase or installation of an energy conservation improvement;
176.4    (2) the difference between the utility's cost of purchase or installation of energy
176.5conservation improvements and any price charged by a public utility to a customer for
176.6such improvements.
176.7    (i) "Large customer facility" means all buildings, structures, equipment, and
176.8installations at a single site that collectively (1) impose a peak electrical demand on an
176.9electric utility's system of not less than 20,000 kilowatts, measured in the same way as the
176.10utility that serves the customer facility measures electrical demand for billing purposes or
176.11(2) consume not less than 500 million cubic feet of natural gas annually. In calculating
176.12peak electrical demand, a large customer facility may include demand offset by on-site
176.13cogeneration facilities and, if engaged in mineral extraction, may aggregate peak energy
176.14demand from the large customer facility's mining and processing operations.
176.15    (j) "Large energy facility" has the meaning given it in section 216B.2421,
176.16subdivision 2, clause (1).
176.17    (k) "Load management" means an activity, service, or technology to change the
176.18timing or the efficiency of a customer's use of energy that allows a utility or a customer to
176.19respond to wholesale market fluctuations or to reduce peak demand for energy or capacity.
176.20    (l) "Low-income programs" means energy conservation improvement programs that
176.21directly serve the needs of low-income persons, including low-income renters.
176.22(m) "Qualifying utility" means a utility that supplies the energy to a customer that
176.23enables the customer to qualify as a large customer facility.
176.24(n) "Waste heat recovered and used as thermal energy" means capturing heat energy
176.25that would otherwise be exhausted or dissipated to the environment from machinery,
176.26buildings, or industrial processes and productively using such recovered thermal energy
176.27where it was captured or distributing it as thermal energy to other locations where it is
176.28used to reduce demand side consumption of natural gas, electric energy, or both.
176.29    (n) (o) "Waste heat recovery converted into electricity" means an energy recovery
176.30process that converts otherwise lost energy from the heat of exhaust stacks or pipes used
176.31for engines or manufacturing or industrial processes, or the reduction of high pressure
176.32in water or gas pipelines.

176.33    Sec. 3. Minnesota Statutes 2012, section 216B.241, subdivision 1e, is amended to read:
176.34    Subd. 1e. Applied research and development grants. (a) The commissioner
176.35may, by order, approve and make grants for applied research and development projects
177.1of general applicability that identify new technologies or strategies to maximize energy
177.2savings, improve the effectiveness of energy conservation programs, or document
177.3the carbon dioxide reductions from energy conservation programs. When approving
177.4projects, the commissioner shall consider proposals and comments from utilities and
177.5other interested parties. The commissioner may assess up to $3,600,000 annually for the
177.6purposes of this subdivision. The assessments must be deposited in the state treasury
177.7and credited to the energy and conservation account created under subdivision 2a. An
177.8assessment made under this subdivision is not subject to the cap on assessments provided
177.9by section 216B.62, or any other law.
177.10    (b) The commissioner, as part of the assessment authorized under paragraph (a),
177.11shall annually assess and grant up to $500,000 for the purpose of subdivision 9.
177.12(c) The commissioner, as part of the assessment authorized under paragraph (a),
177.13each state fiscal year shall assess $500,000 for a grant to the partnership created by section
177.14216C.385, subdivision 2. The grant must be used to exercise the powers and perform the
177.15duties specified in section 216C.385, subdivision 3.
177.16(d) By February 15 annually, the commissioner shall report to the chairs and ranking
177.17minority members of the committees of the legislature with primary jurisdiction over
177.18energy policy and energy finance on the assessments made under this subdivision for the
177.19previous calendar year and the use of the assessment. The report must clearly describe the
177.20activities supported by the assessment and the parties that engaged in those activities.
177.21EFFECTIVE DATE.Paragraph (c) is effective for assessments for state fiscal
177.22years commencing on or after July 1, 2013.

177.23    Sec. 4. Minnesota Statutes 2012, section 216B.241, is amended by adding a
177.24subdivision to read:
177.25    Subd. 10. Waste heat recovery; thermal energy distribution. Demand side
177.26natural gas or electric energy displaced by use of waste heat recovered and used as thermal
177.27energy, including the recovered thermal energy from a cogeneration or combined heat and
177.28power facility, is eligible to be counted towards a utility's natural gas or electric energy
177.29savings goals, subject to department approval.

177.30    Sec. 5. SEVERABILITY.
177.31If any provision of this act is found to be unconstitutional and void, the remaining
177.32provisions of this act are valid.
177.33EFFECTIVE DATE.This section is effective the day following final enactment.

178.1    Sec. 6. REPEALER.
178.2Minnesota Statutes 2012, section 216B.1637, is repealed."
178.3Delete the title and insert:
178.4"A bill for an act
178.5relating to state government; appropriating money for jobs and economic
178.6development; modifying labor and industry; employment, economic
178.7development, and workforce development; unemployment insurance;
178.8miscellaneous provisions; commerce and consumer protection; utility regulation;
178.9energy and solar energy regulations; creating various renewable energy
178.10incentives; imposing penalties; increasing fees; requiring reports; authorizing
178.11rulemaking; appropriating money to various state boards, agencies, and
178.12departments;amending Minnesota Statutes 2012, sections 16B.122, subdivision
178.132; 16C.144, subdivision 2; 45.0135, subdivision 6; 60A.14, subdivision 1;
178.1465B.84, subdivision 1; 116J.70, subdivision 2a; 116J.8731, subdivisions 2,
178.153, 8, 9; 116L.17, subdivision 4, by adding a subdivision; 116U.26; 136F.37;
178.16154.001, by adding a subdivision; 154.003; 154.02; 154.05; 154.06; 154.065,
178.17subdivision 2; 154.07, subdivision 1; 154.08; 154.09; 154.10, subdivision 1;
178.18154.11, subdivision 1; 154.12; 154.14; 154.15, subdivision 2; 154.26; 155A.23,
178.19subdivisions 3, 8, 11; 155A.25, subdivisions 1a, 4; 155A.27, subdivisions 4,
178.207, 10; 155A.29, subdivision 2; 155A.30, by adding a subdivision; 177.27,
178.21subdivision 4; 216B.16, subdivision 7b; 216B.1635; 216B.164, subdivisions 2, 3,
178.224, 6, by adding subdivisions; 216B.1691, subdivision 2e, by adding a subdivision;
178.23216B.1692, subdivisions 1, 8, by adding a subdivision; 216B.1695, subdivision
178.245, by adding a subdivision; 216B.2401; 216B.241, subdivisions 1, 1e, by adding
178.25a subdivision; 216B.2411, subdivision 3; 216C.05; 216C.435, subdivision 8,
178.26by adding a subdivision; 216C.436, subdivisions 2, 7, 8; 239.101, subdivision
178.273; 245.4712, subdivision 1; 268.051, subdivision 5; 268.07, subdivision 3b;
178.28268.125, subdivisions 1, 3, 4, 5; 268.136, subdivisions 1, 2, 3, 4, 5, by adding
178.29a subdivision; 268.23; 268A.13; 268A.14, subdivision 1; 298.22, subdivision
178.301; 298.28, subdivision 9c; 326.02, subdivision 5; 326A.04, subdivisions 2, 3, 5,
178.317; 326A.10; 326B.081, subdivision 3; 326B.082, subdivision 11; 326B.093,
178.32subdivision 4; 326B.101; 326B.103, subdivision 11; 326B.121, subdivision 1;
178.33326B.163, by adding subdivisions; 326B.184, subdivisions 1, 2, by adding a
178.34subdivision; 326B.187; 326B.31, by adding a subdivision; 326B.33, subdivisions
178.3519, 21; 326B.36, subdivision 7; 326B.37, by adding a subdivision; 326B.43,
178.36subdivision 2; 326B.49, subdivisions 2, 3; 326B.89, subdivision 1; 327B.04,
178.37subdivision 4; 341.21, subdivision 3a; 341.221; 341.27; 341.29; 341.30,
178.38subdivision 4; 341.32, subdivision 2; 341.321; 429.101, subdivision 2; 462.358,
178.39subdivision 2b; 462A.37, subdivision 1; 507.235, subdivision 2; 559.211,
178.40subdivision 2; Laws 2005, chapter 97, article 10, section 3; Laws 2006, chapter
178.41269, section 2, as amended; Laws 2011, First Special Session chapter 2, article 2,
178.42section 3, subdivision 4; Laws 2012, chapter 201, article 1, section 3; proposing
178.43coding for new law in Minnesota Statutes, chapters 3; 116C; 116J; 116L; 154;
178.44155A; 161; 179; 216B; 216C; 268; 326B; 383D; 559; proposing coding for
178.45new law as Minnesota Statutes, chapter 80G; repealing Minnesota Statutes
178.462012, sections 116W.01; 116W.02; 116W.03; 116W.035; 116W.04; 116W.05;
178.47116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25; 116W.26; 116W.27;
178.48116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33; 116W.34; 155A.25,
178.49subdivision 1; 216B.1637; 237.012, subdivision 3; 326A.03, subdivisions 2, 5, 8;
178.50326B.31, subdivisions 18, 19, 22; 326B.978, subdivision 4; 507.235, subdivision
178.514; Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700; 1307.0032;
178.523800.3520, subpart 5, items C, D; 3800.3602, subpart 2, item B."
179.1
We request the adoption of this report and repassage of the bill.
179.2
House Conferees:
179.3
.....
.....
179.4
Tim Mahoney
Joe Atkins
179.5
.....
.....
179.6
Karen Clark
Sheldon Johnson
179.7
.....
179.8
Bob Gunther
179.9
Senate Conferees:
179.10
.....
.....
179.11
David J. Tomassoni
Tom Saxhaug
179.12
.....
.....
179.13
Dan Sparks
James P. Metzen
179.14
.....
179.15
Torrey N. Westrom